Schumpter Innovation Concept

Schumpeter (1983) said that innovation is the stimulus for economic development. He also came forward with five task that lead to innovation. These are;

• The introduction of a new product and services- This can take the form of an augmented product

• The implementation of a new method of production which is cost effective

• The identification of a new market

• The identification of a new source of raw material supply.

• The running of a new organisation

These tasks define innovation as multi-faceted as it include the product, process, market, purchasing and the organisation itself.

Multi-Faceted definition of Entrepreneurship Measuring of entrepreneurship success

Income derived from businesses have always been a measure of economic value

It also considered as a vehicle to incorporate human capital, enhancing research and development and bring along innovation in an economy (Glaser, 2006).

As per Schumpeter’s concept of entrepreneurship, the advancement of the entrepreneurship industry is a valid indicator of innovation. Therefore, improving the entrepreneurship policies and promoting innovation programs would lead to sustainable and economic development.

Lindstrand (2003) earmarked that in the actual competitive and challenging business environment, the success of any firm is not solely the performance of the firm itself. In fact, it largely depends on how the firm is creating its own network for repeated buying and long term survival. As per Greve and Salaff (2003), over and above the knowledge of entrepreneurs to set up a business, they need to engage in networking to acquire external and complementary resources to ensure the development

• Going beyond the business plan

 It is important to plan judiciously before launching a new business. However, the preparation is not limited to preparing a business plan. Bachenheimer proposes three planning methods that can be adopted namely The Apprentice Model; which consist of gaining direct industry experience. The Hired-Gun Approach; this has to do with the business partnering with experts who has already proven records in the industry. Lastly, The Ultra-Lean School of Hard Knocks Tactic; which consist of finding out a rapid way to test the product and bring amendment to the model at the lowest cost possible.

• Testing the Idea

 Prior to launching a new business, research is of prime importance. Records has shown that 60% of new business fail within three years because too often people rush into a business before checking their