Why Entrepreneurial Organizations Seek Opportunities for Innovation (Essay Sample)

Reasons Why Entrepreneurial Organizations Seek Opportunities for Innovation
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Reasons Why Entrepreneurial Organizations Seek Opportunities for Innovation
Studies about entrepreneurial culture in organizations have increased in the recent past. Innovation is the force that drives entrepreneurial culture within organizations to gain a competitive advantage over business rivals. Additionally, the basic concept behind innovation is adopting and implementing processes and ideas that enhance the firm’s competitiveness, leading to sustainable growth and expansion (Danish et al., 2019). Thus, the evidence shows that innovation is crucial for the growth and development of businesses in a fiercely competitive environment.
Innovation entails altering strategies and approaches to better cope with the changing business environment. One of the main reasons why entrepreneurial organizations seek innovation is to enable them to achieve a competitive edge in the marketplace. Companies that embrace innovation are better prepared to penetrate new markets and establish supply chains to take advantage of new opportunities in those countries (Henderson, 2018). Furthermore, in the modern world, most businesses face competition from rivals since few monopolies exist. Therefore, companies have to constantly innovate new products and services that offer more value to consumers than substitute commodities.
Innovation offers organizations the opportunity for growth and expansion. According to a study conducted by Deloitte, more than 66 percent of business executives believe that innovation is a vital component for growth (Tredgold, 2018). Innovation enables entrepreneurial organizations to expand their operations by penetrating new markets and territories. Additionally, they can increase their market share due to superior products that meet customer demands. Moreover, entrepreneurial organizations seek opportunities to cope with changes in the dynamic business environment to achieve sustainable growth and profitability (Thyagarajan, 2018). Therefore, innovation is crucial to entrepreneurial businesses since it makes it easier for them to achieve sustainable growth and development.
The business environment is ever-changing to cope with dynamic consumer needs. Entrepreneurial organizations leverage innovation to cope with such changes by producing products that meet customer needs. Only proactive businesses that innovative new procedures, methods, and ideas can survive in the highly competitive marketplace. Companies seek to achieve a competitive advantage by leveraging innovation to create and develop unique products and services that appeal to consumers (Tredgold, 2018). Moreover, innovation provides an opportunity for firms to enhance existing products to satisfy customer needs. The evidence shows that entrepreneurial organizations seek opportunities for innovation to meet consumer needs and demands.
Employees are the most valuable assets to any firm in the modern knowledge-based economy. Therefore, attracting and retaining talented and experienced personnel is the number one priority of any entrepreneurial organization. Nonetheless, only firms that set in place procedures and mechanisms to allow innovation and creativity to thrive are capable of attracting such employees (Tredgold, 2018). In addition, companies that seek to develop new products and services, gain competitive advantage, and increase sales revenue and market share, often incorporate innovation in their processes. Therefore, the desire to recruit talented employees is another reason why entr