Discuss the role of entrepreneurs in contributing to business creation and product innovation. Use examples to illustrate your arguments.
Entrepreneurs are booster and playing significant role in the overall market growth and economical conditions. Ups and down held in the economy due to entrepreneurs encouragement and skills.
Entrepreneurs are creative, energetic to take forward businesses and hit the business ideas to the successful product innovation and development. Though the products have limited usefullness to the target audience, but their visionary aspirations to develop and market those products is what motivate and contribute to the business creation. Entrepreneurs are the who takes risk of the business, to provide and encash the unsatisfied market demands. They always work and think on need, demand and supply theory.
Understanding current needs of the consumer they bring in new product innovation to fulfil or satisfy new and existing consumers demand for the same or alternative products and services.
Thus while looking at future they believe to bring success and posibilities into the business by bringing their resources to built a profit. Always work on putting strategic decision into place to reach desired targets. I would say they are very flexible in what actually they do to bring profit into the business. This is because they are skilled at proving their product or services are best in the industry, and work on always consumers needs and demand.
Take example of Konared's Shaun Roberts recently started his new business with idea from a coffee castoff. his firm called Kalaheo Hawaii based Kona Red offers sports drink. He is actually buying discarded coffee skins from coffee farms in hawaii. earlier farmers were used discard coffee skins to composte as waste, now it is used as byproducts by shaun roberts.
Entrepreneurship is called finding solutions to the unidentified needs of the consumers. It should be followed through creating the value propositions. Develop a product and evaluate the figures that products can bring to the future as much as you can, so that consumer will get obssessed with your business innvoations. First entrepreneurs analyse the what will be production cost or the price to create and produce your products or services. Decide the cost which can bring a unique cost perception in consumer mind and at what cost consumers are willing to buy the new innovation. It is as simple as that less cost brings higher customer utility.
Take example of coffee shops, and calculate a value proposition for medio flavoured base mocha at COSTA Coffee. So before hand we have to estimate each of the numbers in different framework. Like what will be the product cost for whole drinks, then again after producing and to offer, how much customer be willing to flush on one drink with all ingredients.
Finnally entrepreneurs brain storm lot to bring product innovation successful in the market. They focus more on to customer utility initially than production cost, but ultimately again depends on what type of customer you want to target. Some of them might have higher uility some might not. This way entrepreneurs bring their new innovation into the market to test viability and feasibility of the business as well as products or services. They understand the needfull to be done while product is launched and bring about the necessary changes to the products or services.
Main aim of the entrepreneurs are to capture market first so that to understand the value of new demands. Thus it brings more stable and rewarding business to them and for the economic growth.