The Role of Innovation and Creativity in the Development and Success of Entrepreneurial SMEs Essay

The Role of Innovation and Creativity in the Development and Success of Entrepreneurial SMEs Essay

Entrepreneurship, Creativity, and Marketing Planning

Part 2: Essay – Individual Assignment

The Significance of Innovation and Creativity in the Growth and Achievement of Entrepreneurial SMEs

Introduction

Entrepreneurial SMEs play a pivotal role in recognizing opportunities, addressing challenges, and devising innovative solutions through ventures in innovation and creativity. These ventures are essential for leading, expanding, and maintaining competitiveness in dynamic business environments. In contemporary business landscapes, entrepreneurial SMEs increasingly focus on collaborative efforts to access creative ideas, driven by the growing pressure to innovate. This individual assignment will critically examine the significance of innovation and creativity in the development and success of entrepreneurial SMEs.

According to Mazla et al. (2019), innovation and creativity are integral during the launch of innovative services and products, especially when coupled with advanced technology. Entrepreneurial SMEs are recognized as key drivers of economic development, playing fundamental roles in the economy. Innovation and creativity have become increasingly crucial in enhancing the value of entrepreneurial SMEs. OECD (2018) underscores the importance of innovation in making processes more valuable and marketable, while creativity enhances existing practices by generating new ideas (Mazla et al., 2019).

NURS 6052: Evidence Base Practice and the Quadruple Aim

Today’s entrepreneurial SMEs are characterized by the development of new ideas, risk-taking, and a commitment to infuse innovation and creativity into their operations. Rapid changes in various aspects of the business world necessitate heightened awareness among entrepreneurial SMEs. This awareness helps them stay abreast of changes and technological advancements, ensuring their relevance in diverse markets and industries. To compete and survive, entrepreneurial SMEs must continually introduce innovative and creative products and services. Innovation and creativity are thus pivotal strategies in the success and growth of entrepreneurial SMEs (Markopoulos et al., 2021).

Creativity in Entrepreneurial SMEs

Salem & Beduk (2021) define creativity as a human capacity based on the reality that exists. Human behavior is influenced by existing structures, whether from philosophical or religious perspectives. Human creativity is, therefore, dependent on and derived from the objective or constructed order of reality. Creativity is not innate but requires learning (Markopoulos et al., 2021). Creativity refers to an ongoing process, involving the continuous improvement of solutions and ideas through refinement, adjustment, and alteration. It also emphasizes effective teamwork, a conducive team climate, and efficient organizational management in entrepreneurial SMEs (Wu, Yuan, & Chen, 2021).

The creative process in entrepreneurial SMEs comprises seven major steps, reflecting the unique journey of creativity in new ventures. The first step, Preparation, involves preparing the mind for creative thinking by identifying specific problems or issues and gathering relevant information. It requires research and learning about the expertise field and trade or professional associations. The second step, Thinking the Unthinkable, encourages thinking outside the box and beyond comfort zones to develop unique solutions. Step 3, Creativity is not Magic, emphasizes the combination, alteration, or generation of existing and new ideas. Step 4, Incubation, involves working on assignments to find potential solutions. Step 5, Illumination, clarifies ideas generated during incubation. Step 6, Verification, validates the usefulness and accuracy of ideas, potentially leading to modifications. The final step, Critical Thinking, evaluates ideas and enhances problem-solving (Salem & Beduk, 2021).

Innovation in Entrepreneurial SMEs

Innovation involves using new knowledge to create services or products that meet customer needs. The future success of entrepreneurial SMEs relies heavily on innovation (Plucker, 2022). Innovation enables creative individuals in these SMEs to stay relevant and competitive. Entrepreneurial SMEs that invest in innovation outperform those relying on conventional offerings. The global economy, characterized by high demand and limited supply, requires innovation for entrepreneurial SMEs to thrive. Innovation is essential for expanding resources and improving wealth-generating potential. Entrepreneurial SMEs transform ideas into commercial products and services through innovation (Mumford & Todd, 2020).

Innovation in entrepreneurial SMEs takes various forms, including innovation in organizational management and work processes. Innovation leads to increased demand, employment, and investment opportunities. Innovations that improve methods contribute to greater activity, demand, and cost reduction (Mazzarol & Reboud, 2020).

Roles of Innovation and Creativity in the Development and Success of Entrepreneurial SMEs

Innovation and creativity play fundamental roles in entrepreneurial SMEs. They enhance business reputation, provide sources of survival, stimulate entrepreneurial quality, and generate competitive advantages. They enable SMEs to develop unique products, improve operations, and solve problems creatively (Mumford & Todd, 2020).

Creativity and innovation also boost business reputations, giving SMEs a competitive edge. SMEs must continuously add value to their products and services to attract customers in a competitive market. Maintaining originality and innovation helps SMEs maintain their business reputation (Mazzarol & Reboud, 2020).

Innovation and creativity are interdependent, with creativity producing new ideas and innovation implementing them. They increase productivity, encourage employees to explore new ideas, and improve problem-solving processes, helping SMEs reach new horizons in marketing, productivity, and product value (Gay & Szostak, 2019).

The creative process, with its seven steps, leads to novel ideas. Decision-making is integral, with SMEs learning from past experiences and evaluating decisions to select the best ideas (Khanka, 2021). Innovation and creativity also foster growth, profitability, and new perspectives on problem-solving (Gay & Szostak, 2019).

In conclusion, innovation and creativity are essential for the development and success of entrepreneurial SMEs. They enhance business reputation, provide sources of survival, stimulate entrepreneurial quality, and generate competitive advantages. They enable SMEs to develop unique products, improve operations, and solve problems creatively.

References

Asgary, N. H. & Maccari, E. A. (2020). Entrepreneurship, Innovation, and Sustainable Growth: Opportunities and Challenges. Washington: Routledge.

Carayannis, E. G. (2020). Encyclopedia of Creativity, Invention, Innovation, and Entrepreneurship. New York: Springer International Publishing.

Gay, C. & Szostak, B. L. (2019). Innovation and Creativity in SMEs: Challenges, Evolutions, and Prospects. London, UK: ISTE LTD.

Harrington, H. J. (2018). Creativity, Innovation, and Entrepreneurship: The only way to renew your organization. Boca Raton: CRC Press, Taylor & Francis.

Khanka, S. S. (2021). Creativity and Innovation in Entrepreneurship. Washington: Sultan Chand & Sons.

Lazzeretti, L., & Vecco, M. (2018). Creative Industries and Entrepreneurship: Paradigms in transition from a global perspective. Cheltenham, UK: Edward Elgar Pub.

Management Association. (2017). Entrepreneurship: Concepts, Methodologies, Tools, and Applications. Washington: IGI Global.

Markopoulos, E., Goonetilleke, R. S., Ho, A. G, & Luximon, Y. (2021). Advances in Creativity, Innovation, Entrepreneurship, and Communication of Design. New York: Springer Nature.

Mazla, M. I. S., Jabor, M. K., Tufail, K., Yakim, A. F. N., & Zainal, H. (2019). The Roles of Creativity and Innovation in Entrepreneurship. Advances in Social Science, Education and Humanities Research, volume 470. https://www.atlantis-press.com/article/125944672.pdf

Mazzarol, T. & Reboud, S. (2020). Entrepreneurship and Innovation: Theory, Practice, and Context. Singapore: Springer.

Mumford, M. D. & Todd, E. M. (2020). Creativity and Innovation in Organizations. Abingdon, Oxon: Routledge.

OECD. (2018). Promoting innovation in established SMEs. https://www.oecd.org/cfe/smes/ministerial/documents/2018-SME-Ministerial-Conference-Parallel-Session-4.pdf

Plucker, J. A. (2022). Creativity and Innovation: Theory, Research, and Practice. Washington: Routledge The Role Innovation and Creativity play in the Development and Success of Entrepreneurial SMEs Essay.

Salem, S. & Beduk, A. (2021). The Effect of Creativity and Innovation on Entrepreneurship. International Journal of Academic Management Science Research (IJAMSR). https://www.researchgate.net/publication/354209690_The_Effect_of_Creativity_and_Innovation_on_Entrepreneurship

Wu, Y. J, Yuan, C., & Chen, M. (2021). From Thinker to Doer: Creativity, Innovation, Entrepreneurship, Maker, and Venture Capital. Johannesberg: Frontiers Media SA The Role Innovation and Creativity play in the Development and Success of Entrepreneurial SMEs Essay