Question

Justify the following statement.

An entrepreneur must be an innovator.

Answer 1

Innovation is a dynamic change brought by an entrepreneur by bringing new combinations of factors of production. Innovation by entrepreneurs is a must for the development of organisations. An entrepreneur can be an innovator in many ways. They are:

1. Introduction of a new product: An Entrepreneur through his dynamic skill and intelligence, creates new products by fulfilling innovation to commercialisation by embedding it in an environment where it did not exist previously.
2. Introduction of a new method of production: By introducing new and the latest technology, an entrepreneur brings new life and energy to methods of production. The introduction of new technology, new machinery, and scientific methods of production will save money and time for the organisation.
3. Opening of a new market: An innovative entrepreneur creates and opens new avenues and new ideas with new products. It opens a new market, which did not exist previously.
4. Carrying out new forms of organization for industry: 
   An innovative entrepreneur is the one who discovers new methods and new materials. He utilises inventions and discoveries to make new combinations.

Thus, the entrepreneur must be an innovator.