Wednesday, September 17, 2008

...Entrepreneurs and innovation …

As Michael Gerber said: the entrepreneur is not really interested in doing the work; he is interested in creating the way the company operates. In that regard, the entrepreneur is an inventor. He or she loves to invent, but does not love to manufacture or sell or distribute what he or she invents.
Innovation is the specific instrument of the entrepreneurship. Innovation creates a meaning for the existing natural resources, finding an economic value for them. Till then each plant is an herb and each mineral is another stone.

Among all the modern economists, Schumpeter was the first to inquire and concern about the entrepreneurship and its impact on economy. He concluded that the entrepreneur is an important figure that has an immense influence on the economy. The same thing is available for the social sphere. There are no bigger resources in the economy than the power of purchase. But the power of purchase is the creation of an innovative entrepreneur as Peter Druker said in “The new society”.

A good example could be that of an American farmer that had a very low power of purchase in the beginning of 20-th century; this was the reason why he couldn’t buy the equipment for his farm. Then, one of the machinery inventors, Cyrus McCormick, invented the payment in rates.
Therefore, the potential of making money out of existing resources is an innovation.

I consider that the solution for the stimulation of both entrepreneurship and innovation is a closer collaboration between the business environment, local service, research centers and academic environment. The exchange of information, resources and even employees between these entities should be accelerated.

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