Entrepreneurship involves the procedures of setting up a business. The individuals involved in entrepreneurship are known as entrepreneurs. An entrepreneur is liable for the risks and losses of the business and also enjoys the profits generated. Successful entrepreneurs are characterized by creativity, knowledge, vision, confidence and passion. The term entrepreneurial culture describes skills, values as well as attitudes that members of a business organization possess. Risk management, spurring profits, innovation and expansion require an effective entrepreneurial culture. Entrepreneurial innovation integrates discoveries as well as inventions to create a new combination (Ghorbel, Hachicha, Boujelbene & Aljuaid, 2021).

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Running head: REASONS FOR ENTREPRENEURIAL INNOVATION
Reasons for Entrepreneurial innovation
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Abstract
Entrepreneurship involves the procedures of setting up a business. The individuals
involved in entrepreneurship are known as entrepreneurs. An entrepreneur is liable for the risks
and losses of the business and also enjoys the profits generated. Successful entrepreneurs are
characterized by creativity, knowledge, vision, confidence and passion. The term entrepreneurial
culture describes skills, values as well as attitudes that members of a business organization
possess. Risk management, spurring profits, innovation and expansion require an effective
entrepreneurial culture. Entrepreneurial innovation integrates discoveries as well as inventions to
create a new combination (Ghorbel, Hachicha, Boujelbene & Aljuaid,
2021).https://bit.ly/3FpaAtW
Reasons for entrepreneurial innovation
i. Market disruption
Disruptive innovation involves simplifying expensive, sophisticated products and
services to simple and affordable forms (Petzold, Landinez & Baaken, 2019). Disruptive
innovation requires that majority of the members of the supply chain in both upstream and
downstream benefit. More advanced technology is also a requirement. By innovating Amazon in
1995, Jeff Bezos met the needs of a consumer segment that by then preferred buying books
online. Few decades later, most consumer shopping globally is done online. The innovation of
Netflix also revolutionized the entertainment industry. People no longer need to frequent
cinemas as they can watch their favorite entertainment segments https://bit.ly/3FpaAtWonline.
ii. Improve goods and services

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Incremental innovation involves continually and positively adding value and quality to
the goods and services a business deals in. Incremental innovation enables distinguish between
competitive products in the market (Acemoglu, Akcigit & Celik 2020). Most consumers are
comfortable investing or buying more advanced items instead of purchasing new products. Since
the innovation of Apple phone, the design has always remained the same but the phone is
constantly upgraded resulting in newer and improved versions. Moreover, consumers tend to
adapt faster to advanced products and are reluctant to consume new and revolutionary goods and
services. Lastly, incremental innovation enables the business survive in the market for long.
iii. Realize or manage market-leader status
Sustaining innovation involves generating more profits by improving the quality of the
products it offers to the best customers. Companies which engage in sustaining innovation are
considered to have been already successful in their industry (Shah, 2020). The companies realize
breakthrough technological discoveries to integrate in their manufacturing process. This enables
the build higher and advanced quality products and the company remains or becomes a market
leader. https://bit.ly/3FpaAtWThe customers are always ready to pay more for the improved
products. Reputable communication technology organizations such as Samsung are always
constantly improving their products to better versions to meet the demands of the consumers.
Microsoft continues to frequently release improved versions of their applications such as
windows.
iv. To create a new business model
Radical innovation eliminates the existing business model and instead creates a new one.
The changes are effected in design, system processes and the business model. Their constituents

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and interaction patterns are recreated a new, resulting in new products and services. The
engagement between suppliers, producers and customers is displaced (D’Ippolito, Petruzelli,
Panniello, 2019). Netflix was platform for ordering movies by mail and the radical innovation of
streaming videos altered the traditional model of renting out movies which in the way pushed
giant businesses such as Blockbuster out of work.
In conclusion, businesses must continually adapt to technological discoveries, invest in
research and design to build better products in order to remain relevant in the market. At any
given time, a combination of either types of innovation are essential for business survival and
realizing a strong entrepreneurial culture.https://bit.ly/3FpaAtW

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References
Acemoglu, D., Akcigit, U., & Celik, M. A. (2020, June 1). Radical and incremental innovaton:
The role of firms, managers and inovators. Creative Innovation. Retrieved May 25, 2022,
from https://muratcelik.faculty.economics.utoronto.ca/wp-
content/uploads/2016/11/CreativeInnovation_R1_AEJ_final.pdf
D'Ippolito, B., Petruzelli, A. M., & Panniello, U. (2019, September 24). Archetypes of
incumbents' strtegic responses to digital innovation. emerald insight, 20(5). Retrieved
May 25, 2022, from https://www.emerald.com/insight/content/doi/10.1108/JIC-04-2019-
0065/full/html
Ghorbel, F., Hachicha, W., Boujelbene, Y., & Aljuaid, A. M. (2021, March 1). Linking
entrepreneurial innovationto effective logic. Sustainability, 13(5).
doi:https://doi.org/10.3390/su13052626
Petzold, N., Landinez, L., & Baaken, T. (2019, April 15). Disruptive innovationfrom a process
view: A systematic literature review. Creativity and Innovation Management, 28(2).
doi:https://doi.org/10.1111/caim.12313
Shah, M. F. (2020, October 7). Sustaining Innovative Success. International Conference of
Zakat. doi:https://doi.org/10.37706/iconz.2020

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