Creating and Managing New Venture Essay Example | Topics and Well Written Essays - 2000 words

Creating and Managing New Venture - Essay Example First, the individual who identifies the opportunity to pursue, secondly, the entrepreneur who seeks resources from the society and finally the society who acquires hidden resources in the form of risks and opportunities. Entrepreneurship is critical to enhancing the innovativeness and responsiveness of businesses, to boost productivity and to improve cost structures and trade performance. The entrepreneurial spirit provides the entrepreneur to uphold new opportunities in the form of new developing markets, new products, new methods of production and management, new marketing channels, the discovery of new inputs and the establishment of new businesses and even new organisational forms. Entrepreneurship equips the entrepreneur with the analysis of how new ideas or information for reconfiguring objects in the material and social world can be implemented thereby creating a new venture harnessed to enhance a nation's wealth. (Harper, 2003, p. 1) Creativity, problem solving, and decision making are three keys which are linked together to survive through a new venture successfully. Creative thinking produces outcomes that welcome problems whereas problems require problem solving response. The response calls for creative aspects; therefore we can say that problem solving is actually creativity. That means creativity and problem solving overlaps each other, thereby producing a creative idea that invokes problem solving and decision making. (Kirton, 2003, p. 136) New Initiatives - Opportunity Recognition A recent Academy of Management Review article stated, "We see the field of entrepreneurship in the light of examination in which opportunities are discovered and analysed in context with how, whom, and what. These highlight future goods and services under discovery and exploitation". (Shane and Venkataraman 2000:218). In contrast with this theory, Schumpeter (1942) described entrepreneurship in terms of creative destruction, whereby an innovation disrupts the equilibrium or status quo in the marketplace. Christensen et al. (1989) proposed a new definition of recognising opportunity in the light of entrepreneurship, according to which a new profitable venture can be initiated when a new business innovation is created or when an existing business is improved. Both the cases lead to a profitable venture. (Christensen et al. 1989:3). According to an OpR theoretical Model, opportunity recognition is inherently a creative process. (Welsch, 2003, p. 74) which in the eyes of Christensen et al. (1994) is nothing but a creative step towards the entrepreneurial process. Others have described OpR as the artistic creation of a new venture (Hills, 1995) particularly in the condition in which the opportunity continues to be processed on the basis of market feedback. Five basic elements of creativity that can fit into entrepreneurship according to Csikszentmihalyi (1996) are preparation (OpR initiation process which starts with the knowledge and expertise of the entrepreneur), incubation (Idea consideration), insight (cognitive evaluation of realising profitable opportunity), evaluation (Formation of insights into businesses), and elaboration (where insight is actualised). (Welsch, 2003, p. 75) The contemporary business environment based upon innovation is analysed in terms of increased risk, decreased ability to forecast, fluid firm and industry