Entrepreneurship and Innovation: The Search for the Business Idea

Entrepreneurship and Innovation: The Search for the Business Idea

Sérgio Maravilhas (UNIFACS Salvador University, Brazil), Paulo Melo (Salvador University, Brazil) and Sérgio Ricardo Goes Oliveira (Salvador University, Brazil)
DOI: 10.4018/978-1-5225-3012-1.ch003

Abstract

The role of the entrepreneur in modern society is very important because it develops new businesses, new solutions, new markets, creating employment and offering new innovations to improve and simplify our life. Entrepreneurs must realize if their offering allows users to do things in a simpler, faster, efficient way, at a lower cost. The analysis of information sources available can indeed help prevent problems by having thought about them in advance and solved what was not yet properly planned. The identification of opportunities is one of the essential points in entrepreneurial activity. In the preparation of any project, it is essential to search for information to validate the business idea. For all the collected data to be transformed into information, it is necessary to undertake a systematization of the information. The primary purpose of collecting information is to enable the entrepreneur to be aware of all the changes that take place in the markets, preferably at the right time, to be able to adapt its strategy according to what is taking place.
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The Role Of Entrepreneurs And Innovation

Innovation and entrepreneurship are themes closely associated and are in the heart of any discussion about competitiveness and how companies face the challenges of surviving in the world arena. Despite there is no question about the relevance of both themes, any action depends on the entrepreneurs themselves. Among many characteristics, the main role of entrepreneurs is in the first place, to detect signals in the environment of changes and the resources available to conduct innovation projects. The entrepreneurs seem to be crucial to promote creativity, changes and therefore innovativeness inside the organizations.

Key Terms in this Chapter

Entrepreneurship: Starting a new business venture, taking risks, and creating new solutions, new markets, to fulfill a professional and personal objective, change a business model or create a new solution for a problem, satisfying needs and desires in a more efficient way.

Market Needs: Businesses should start by knowing the consumer's interests, desires, and needs. It is easier to sell what consumers want and need than try to sell something they do not see the benefit in buying. In a fast moving world, it should be a competitive edge having the chance of monitoring the market, detecting what can be a source of a profitable new business. Market needs inform organizations about what products develop, for what customers, at what cost, through which distribution channels, reducing the uncertainty that a new product/service development always brings with it.

Information Search: Discovering the sources where the answers to our questions and doubts may be obtained. Information is the reduction of uncertainty, allowing taking decisions more effectively.

Creativity: Creativity is based on reasoning that produces imaginative new ideas and new ways of looking at reality. Creativity is an individual process, arises from the idea that popped into someone's head. Relates facts or ideas without previous relationship and is discontinuous and divergent. No creative process exists if there is no intention or purpose. The essence of the creative process is to seek new combinations.

Information Overload: Occurs when excess of information suffocates businesses and causes employees to suffer mental anguish and physical illness. Information overload causes high levels of stress that can result in health problems and the breakdown of individuals’ personal relationships.

Business Idea: A commercial or industrial activity to reach a group of consumers profitably. The purpose of a new venture, satisfying needs and desires not satisfied, or do it in a better way than the existing options. It involves several specialized functions like finance, marketing, operations, human resources, production, creativity, and innovation.

Innovation: The application of new knowledge, resulting in new products, processes, or services, or significant improvements in some of its attributes. A new solution brought to the market to solve a problem in a new or better way than the existent solutions.

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