Project Materials

IMPACT OF ORGANIZATIONAL CREATIVITY AND INNOVATION ON ENTREPRENEURIAL SUCCESS

ABSTRACT

The study focusses on a specific component of creativity, namely product creativity within small businesses struggling to survive in today’s tough economy. The firms’ actions in developing new products are thus investigated to determine the extent to which such critical components of their actions contribute to the success of their enterprises. For clear analysis, the study focusses on two broad variables: the dependent variable and the independent variable. The dependent variable is entrepreneurial success, which has been further split down into sub-variables such as sales and profit increases. The independent variable was product originality, which was measured in terms of time, specifically the new product initiation, market, and maturity periods. The hypotheses were examined using the Pearson Product Moment Correlation Coefficient, and the results were interpreted for additional recommendations and conclusions.

Chapter one

INTRODUCTION

1.1 Background of the Study

People have varied definitions of entrepreneurship. Conceptually and practically, the term suggests no stereotypical model. However, its origin, coming from the French word “entreprendre,” which literally means “to undertake,” suggests the minimum characteristics of an entrepreneur.

From the standpoint of economic functions, three critical aspects of entrepreneurial activity are risk-taking, invention, and foraying into new commercial activities for profit.

Entrepreneurship is the professional application of knowledge, skills, and competencies, as well as the monetisation of a new idea, by an individual or group of people by launching a new enterprise or diversifying from an existing one (as opposed to seeking self-employment as in a profession or trade), with the goal of pursuing growth while generating wealth, employment, and social good.