Innovation and Entrepreneurship

Innovation Questions
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Innovation Questions
Question 1
Entrepreneurship is the backbone of economic growth and expansion. Any country that wants to grow economically should implement policies that favor business creation and operation. In particular, policymakers should encourage entrepreneurship since the policies developed constitutes the external environmental factors that affect business operations. For example, if a country makes policies that favor importing products that are not found in the domestic market, it creates opportunities for its citizens to invest. Hence, many people engage in constructive activities that contribute to economic growth. Additionally, policymakers significantly influence the relationship among countries and trade partners.
Question 2
Innovation and entrepreneurship are different. Innovators come up with ideas that are implemented to become inventions. In contrast, entrepreneurs commercialize ideas to make profits. Based on these explanations, it means that innovators are not always entrepreneurs. However, entrepreneurs can be innovators since they implement business ideas that do not exist in the market. That is why entrepreneurship involves taking more risk since a person uses resources in starting a business that one is not sure that will generate profits. Some startups take a long period before they break even, where entrepreneurs begin to reap profits. 
Question 3
Firms innovate so that they can grow, gain and sustain competitive advantages, and maximize their productions. Every big company starts as a small enterprise and grow due to proper management and innovation. For example, Microsoft has remained relevant today since the company keeps innovating to develop better Windows operating systems. If the corporation does not innovate, it should not have grown due to the stiff competition in the technology sector. Firms innovate to maximize productivity by implementing effective and efficien...