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Entrepreneurs and Innovation

Discuss about the Business Failure and Entrepreneurship System.

The “changing nature of the present day business world has made it imperative for the various business organizations of the present times to increasingly turn towards the concept of innovation and creativity” (Kelley, Singer and Herrington 2012). In addition to this, the concept of the “freedom to fail” has also “emerged as one of the most important ones in the recent times and it is a reflection of this particular fact that the various entrepreneurs as well as the managers” are encouraged not only to be risk taking in their approach as well as “decision making process” but also to use the concepts of creativity and innovations for their work (Kelley, Singer and Herrington 2012). In the opinion of many scholars the high level of competition which has become a part of the business world in the present times and the high amount of various kinds of risks which the various established as well as the new start-up business organizations in the present times face has further necessitated the use of the concepts of innovation and the “freedom to fail” by the various business organizations and their entrepreneurs (Wyrwich, Stuetzer and Sternberg 2016). It is “a reflection of this particular fact that it is present times it is seen various new business organizations emerge on a regular basis in the business world of Australia” and all over the world for that matter and a common feature which almost all these new start up business organizations share with each other are the concepts of innovation, creativity as well as the “freedom to fail” attitude (Kelley, Singer and Herrington 2012). This report will try to explore the question how far the concept of “the freedom to fail” encourages the use of innovation among the various business organizations as well as the diverse entrepreneurs related to them.

The entrepreneurs are the individuals who come up with innovative as well as new business ideas which not in synchronization with the present needs of the business world but also with the future requirements of the same (Wyrwich, Stuetzer and Sternberg 2016). Some of the most famous entrepreneurs of the world of the 20th as well as the 21st who have left a lasting impression on the business world in the present times are Larry Page, Richard Branson, Bill Gates, Carlos Slim, Larry Ellison, Mark Zuckerberg, Vera Wang, Steve Jobs, Ingvar Kamprad, Amancio Ortega and others (Wyrwich, Stuetzer and Sternberg 2016). The concept of entrepreneurship, on the other hand, “can be defined as the process by means of which the various entrepreneurs not only formulate but also implement” the various new business strategies as well as ideas which as per them is likely to help them and also the business organization to which they are related to attain success in the business world (Hayton et al. 2013). In the opinion of many people it is not necessary that the ideas with which the various entrepreneurs come up with or start their business organizations has to be new as well as innovative, on the contrary, it is seen that these entrepreneurs often use the old and the time tested methods and strategies in an albeit new and innovative which is in synchronization with the current day scenario (Hayton et al. 2013). Therefore, it can be said that the processes of innovation as well as creativity form an important part of the process of entrepreneurship.

Freedom to Fail and Entrepreneurs

In the opinion of many people any new business venture or a business strategy implemented by a particular business organization entails with itself a certain amount of risk and therefore it can be said that the element of failure forms “an important part of the process of the development of a new process or idea” (Welpe et al. 2012). However, it is “often seen that the various business organizations in the present times are reluctant to take the help of innovative as well as new creative ideas and strategies” and thereby avoid the factor of failure which the process of the attainment of success inadvertently entails with itself (Welpe et al. 2012). It is a reflection of this particular factor that although there are thousands of business organizations in the business world at the current moment yet only a handful of them have been able to make it to the big stage (Lubinski, Fear and Pérez 2013). On the other hand, there are business organizations like Zara, Google Inc, Apple Inc, Facebook, Microsoft, Cisco and others which since their initiation had resorted to the use of innovative as well as creative strategies for the process of their business operations (Kirzner 2015). Furthermore, it “is significant to note that the very basis of the business of these business organizations is based on ideas which were much criticized at the time of their introduction” (Kirzner 2015). It is also seen that the innovative as well as the creative ideas of these modern day entrepreneurs were recognized a bit late in comparison to the traditional methods of business followed by the other business organizations operational in the same field of business (Lubinski, Fear and Pérez 2013). Studies show that “most of the business organizations of the present times do not like to take the help of various kinds of innovative ideas as well as strategies” for the process of their business and resort to the strategies as well as ideas which have already been successful for the various business organizations in the past (Wennberg, Pathak and Autio 2013).

The concept of the “freedom to fail” has gained a “considerable amount of significance in the recent times and it is a reflection of this particular fact” that the various business entrepreneurs not only use this particular concept themselves for the process of their business but also encourage the various managers “as well as the employees who are related to the particular business organization” to take the help of this particular concept for the dispensation for their job roles (Cacciotti et al. 2016). Therefore, it is “generally seen that the various business organizations in the recent times are increasingly taking the help of strategies” as well as ideas which seem totally “out of the box” or impractical at the time of their implementation (Cacciotti et al. 2016). In this particular context the innovative idea of Ingvar Kamprad for the business process of his business organization IKEA becomes very significant to note in this particular context (Wennberg, Pathak and Autio 2013).  It is significant to note that the furniture industry since the traditional times has been used to conducting their business based on the “brick and the motor” method through the use of which they use to deliver the completely assembled furniture to the customers who used to buy them at their doorsteps (Wennberg, Pathak and Autio 2013). However, this used to add an extra burden on the customers as they it was seen that transporting the furniture in the assembled condition entailed with itself an extra cost (Wennberg, Pathak and Autio 2013). The significance of the new innovative business idea of Ingvar Kamprad lies in the fact that his idea of transporting the disassembled furniture to the doorsteps of the customers where the customers would assemble it themselves reduced the transportation cost in a significant manner however there was a certain amount of risk involved in the process (Wennberg, Pathak and Autio 2013). It is significant to note that that this was a completely revolutionary idea in the specific domain of the furniture industry as no one prior to Ingvar Kamprad had attempted such kind of activity (Tsai, Chang and Peng 2016). Therefore, in the opinion of many people this innovative idea entailed with itself a certain element of failure (Tsai, Chang and Peng 2016). However, in the opinion of many people the “freedom to fail” attitude displayed by Ingvar Kamprad played a significant role in the subsequent success which the business organization IKEA has attained in the recent times (Tsai, Chang and Peng 2016). Therefore, it would be apt to say that the concept of “freedom to fail” is not just an attitude that the various entrepreneurs in the present times need to adopt this particular concept in a bid to attain success but in a way it can be said that this particular concept has become imperative for the various business entrepreneurs in a bid to mitigate the high level of business competition faced by them in the contemporary competitive business world (Tsai, Chang and Peng 2016).

Examples of Successful Businesses using Innovative Strategies

In the present day business world there are ample evidences of the business entrepreneurs who take the help of the concept of “freedom to fail” concept for the purpose of the business operation of the business organization to which they are related (Ekore and Okekeocha 2012). However, it is true that most of these business entrepreneurs had been able to attain a considerable amount of success in the recent times yet in the initial phase they had to bear the consequences of using strategies as well as ideas which were drastically different from the ones commonly in use in the business world (Ekore and Okekeocha 2012). The life as well as the career of the business entrepreneur Amancio Ortega, the founder of the business organization Zara is a reflection of this particular fact (Wyrwich, Stuetzer and Sternberg 2016). It is significant to note that the owner of the business organization Zara had to face much criticism from the other business operational in the fashion for establishing direct business relationship with the fashion designers whose works appeared in the various fashion weeks in the nation of Spain (Wyrwich, Stuetzer and Sternberg 2016). Furthermore, he was also much criticized for his policy of manufacturing the garments in the nation of Spain itself where the other business organizations of the nation were getting their products manufactured in the nation of Russia and others (Wyrwich, Stuetzer and Sternberg 2016). It is significant to note that in the initial days of foundation of the business organization Ortega had to face much difficulties as a matter of fact he had to shut down his first business organization and the second one he started in collaboration with his wife as a single store gained prominence only after its association with the business organization of Inditex group (Wyrwich, Stuetzer and Sternberg 2016).

The life as well as the career of Larry Page would also reveal a similar story. The entrepreneur Larry Page was one of the founding members of the business organization of Google however his creative as well as innovative ideas were much criticized at the business organization under consideration here and it “is a reflection of this particular fact that he had to resign from the designation of the CEO of the business organization under consideration here” (Bridge and O'Neill 2012). However, within a few years by taking the help of the “freedom of fail” attitude he was able to develop a new software which is now presently called by the name of Android and which forms has much revolutionized the various mobile phones used by the various individuals from the different parts of the world (Bridge and O'Neill 2012). Therefore, the business organization had to finally recognize the genius of Larry Page and he not only reappointed by Google but was also given back the designation from which he was terminated (Bridge and O'Neill 2012).


Steve Jobs was another important entrepreneur of the later part of the 20th as well as the 21st century who had left a lasting impression on not only the business world of the present times but also on the way technology is being perceived in the recent times (Schaper et al. 2014). It is significant to note that just like Ortega and Page he was much criticized for the closed circuit computers which he developed in the later part of the 20th century and the criticism escalated to such an extent that he had to leave the business organization of Apple Inc (Schaper et al. 2014). He even went bankrupt at this particular point of time and for a very brief period of time he even had found it very difficult to sustain himself. In the opinion of many people this particular crisis was one of the major reasons behind the divorce which Jobs had to undergo (Schaper et al. 2014). However, he able to return back to the business organization and he even served as the CEO of the business organization under consideration here.

The lives as well as the professional careers of the other famous entrepreneurs of the world in the recent times like Bill Gates, Carlos Slim, Larry Ellison, Mark Zuckerberg, Vera Wang, Richard Branson and others would also reveal the same fact (Pott and Pott 2012). One particular thing is common among all these entrepreneurs from the various different nations of the world and related to diverse industries, namely, the desire the take the help of ideas as well as strategies which are not only unconventional but also ahead of their times. As already mentioned the use of these innovative as well as creative entailed with themselves not only a considerable amount of risk but also the element of failure as well. However, when the success attained by these entrepreneurs from the different nations of the world is taken into consideration it would become apparent that it was precisely the use of the concept of “freedom to fail” which enabled them to take the help of strategies as well as ideas which were far ahead of their times (Pott and Pott 2012). Therefore, “in a way it can be said that the concept of “freedom to fail” has become an important one in the present day business world and it encourages the business organizations to take the help of innovative ideas” which entails with itself a certain amount of risk.

The process of experimentation has become “one of the basic needs of the various business organizations” in the present times. In the opinion of many scholars, “if the various business organizations do not take the help of various methods of experimentation then there will be no difference between the products as well as the services offered by a particular business organization” and others (Morgan and Sisak 2016). Therefore, in “the present times it is generally seen that the various business organizations take the help of the not only the concepts of innovation as well as creativity but also the concept of experimentation” in a bid to offer products or services to the customers which are drastically different “from the products as well as services offered by the other business organizations”. Furthermore, the process of experimentation also enables “the various business organizations as well as the entrepreneurs” related to them to take the help of concepts of innovation as well as creativity to develop ideas and strategies which are drastically different from the ones used by the other business organizations operational within the same field of business (Morgan and Sisak 2016). Moreover, the process of experimentation also “helps the various business organizations of the present times to achieve the process of product differentiation” which has emerged as one of the most important ones of the present times. The process of experimentation is very important even within the particular context of entrepreneurship since the various entrepreneurs in the present times are not only required to come up with various kinds of new as well as innovative business ideas but also to experiment with the various ideas and strategies which they have at their disposal and to select the strategy or the idea which best suits their requirement (Morgan and Sisak 2016).

Conclusion

To conclude, the concept of “freedom to fail” has “emerged as one of the most important ones in the modern day business world and it is generally seen that the various organizations in the present day are increasing taking the help of this particular concept” for the process of their business. Furthermore, this particular concept becomes even more important when it is viewed through the specific lens of the concept of entrepreneurship. It is a reflection of this particular fact that the various entrepreneurs of the present day business world are taking the help of this particular concept to develop ideas well as strategies which are drastically different from the ones which are being used by the other business organizations operational in the same field of business. However, it is significant to note that these ideas were much criticized at the time of their incorporation but it in the present day context it is seen that it is precisely these ideas as well as strategies which helped the entrepreneurs and the business organization to which they are related to achieve success.

References

Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship (pp. 85-128). Routledge.

Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small business. Palgrave Macmillan.

Cacciotti, G. and Hayton, J.C., 2014. Fear of failure and entrepreneurship: a review and direction for future research. ERC Research paper, (24).

Cacciotti, G., Hayton, J.C., Mitchell, J.R. and Giazitzoglu, A., 2016. A reconceptualization of fear of failure in entrepreneurship. Journal of Business Venturing, 31(3), pp.302-325.

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Ekore, J.O. and Okekeocha, O.C., 2012. Fear of entrepreneurship among university graduates: a psychological analysis. International Journal of Management, 29(2), p.515.

Gohmann, S.F., 2012. Institutions, latent entrepreneurship, and Self?Employment: An international comparison. Entrepreneurship Theory and Practice, 36(2), pp.295-321.

Hayton, J.C., Cacciotti, G., Giazitzoglu, A., Mitchell, J.R. and Ainge, C., 2013. Understanding fear of failure in entrepreneurship: A cognitive process framework. Frontiers of Entrepreneurship Research, 33(6), p.1.

Kelley, D.J., Singer, S. and Herrington, M., 2012. The global entrepreneurship monitor. 2011 Global Report, GEM 2011, 7.

Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.

Lubinski, C., Fear, J. and Pérez, P.F. eds., 2013. Family multinationals: entrepreneurship, governance, and pathways to internationalization (Vol. 23). Routledge.

Morgan, J. and Sisak, D., 2016. Aspiring to succeed: A model of entrepreneurship and fear of failure. Journal of Business Venturing, 31(1), pp.1-21.

Pott, O. and Pott, A., 2012. Entrepreneurship. Unternehmensgründung, unternehmerisches Handeln und rechtliche Aspekte, Heidelberg.

Raeesi, R., Dastrang, M., Mohammadi, S. and Rasouli, E., 2013. Understanding the interactions among the barriers to entrepreneurship using interpretive structural modeling. international Journal of Business and Management, 8(13), p.56.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.

Tsai, K.H., Chang, H.C. and Peng, C.Y., 2016. Refining the linkage between perceived capability and entrepreneurial intention: Roles of perceived opportunity, fear of failure, and gender. International Entrepreneurship and Management Journal, 12(4), pp.1127-1145.

Walsh, G.S. and Cunningham, J.A., 2016. Business failure and entrepreneurship: Emergence, evolution and future research. Foundations and Trends® in Entrepreneurship, 12(3), pp.163-285.

Welpe, I.M., Spörrle, M., Grichnik, D., Michl, T. and Audretsch, D.B., 2012. Emotions and opportunities: The interplay of opportunity evaluation, fear, joy, and anger as antecedent of entrepreneurial exploitation. Entrepreneurship Theory and Practice, 36(1), pp.69-96.

Wennberg, K., Pathak, S. and Autio, E., 2013. How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship. Entrepreneurship & Regional Development, 25(9-10), pp.756-780.

Wyrwich, M., Stuetzer, M. and Sternberg, R., 2016. Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: A tale of two regions. Small Business Economics, 46(3), pp.467-492.

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