Innovations, Entrepreneurship and Profits: How They Link Together

What is entrepreneurship? When we think of entrepreneurship, what immediately comes to mind are entrepreneurs and small businesses or businesses. In reality, the definition of entrepreneurship varies depending on the perspective used. It can be a field in business or it can be an activity in which people participate. Describing the processes involved in it defines what entrepreneurship is. Understanding and seeking innovations, such as improving an existing product line, is one of the processes of entrepreneurship. But it is not simply about innovating, this process must go one step further to be considered as part of the venture.

The further step would be to transform innovation into economic goods, something that generates income. In entrepreneurship, an individual or a group of individuals identify a business opportunity by finding a potential or valuable item, product or activity that can be used for business and generate sustainable profits. When the market value generated by the business opportunity or innovation is greater than the value of the value of the combination of resources used to create the opportunity or innovation, then there are profits. Profit occurs when the value of the resources used to create a product is increased through innovation.

The definition of entrepreneurship is based on a unique but very important concept: discovery. Without discovery and innovation, there will be stagnation in the market economy as there will be no improvement. Entrepreneurship paves the way for economic growth by supporting economic growth through your discoveries and innovation. Through entrepreneurship, new and better things, processes and systems are created, recreated and discovered. There is no need to isolate the creation or discovery of new product lines or existing product lines. It can also be applied to methods of production, market, resources or an organization or even an industry. Entrepreneurship can provide solutions for economic stability as it continually seeks to improve and develop our resources to give them greater value.

Let’s take the following situations as an example to understand what entrepreneurship is. Look at the following situations:

A housewife who knows how to cook delicious Indian cuisine starts selling it to teachers and staff at the nearby school.

A downsized employee found another use for old vehicles, designs and repairs them, and made a playground for his pet nursery.

· A scientist discovers a new element but does not try to identify practical uses for it.

All situations, except that of the scientist, show an entrepreneurial spirit. Remember that entrepreneurship is discovering or improving new product lines, markets, processes, resources or organization. The housewife found a new market in her neighborhood, the nearby school, and took advantage of it to generate income. The reduced employee developed a new use for old vehicles. The situation with the scientist cannot be considered business. No attempt was made to generate a market value for the new element, as the scientist did not attempt to identify its practical uses. If you created a product with the use of the new item, then that could be identified as entrepreneurship.