Innovation and Risk Essay Example | Topics and Well Written Essays - 500 words

Innovation and Risk - Essay Example Innovation is making a new idea valuable. It is improving on the existing new design it is not something that has never been there before. An inventor frequently makes a change. Innovation interrupts the status quo but dies not translate into entrepreneurship. On the other hand, Entrepreneurship is coming up with something very new. Its not like the innovation whereby they are improving the existing ideas. Coming up with ideas without implanting them is worthless. Change is challenged in terms of financial management aspects while entrepreneurship pride in culture and financial management (Entrepreneurial risk, investment, and innovation, 2013). Keeping up with the market is a major challenge to the managers since the market is continuous and unpredictable. A manager is required to do an ongoing market research in order not to make outdated decisions. Being the market leader is the aim of every entrepreneur; how to get there is the effort, the entrepreneur puts (Caggese, n.d.). Planning is another challenge since the managers have to make different decisions from time to time. The decision made today will be different from the decisions made tomorrow depending on the circumstances. As the business grows, the strategies need to evolve to meet the changing demands (Entrepreneurial risk, investment, and innovation, 2013). Financial management is another challenge to the managers. Managing the cash flow is crucial especially in a growing business. Planning in terms of funds to be used in future is crucial so that you can know where to get i.e. external sources. Competition is a challenge to every business, finding the strategies to cope with the competition is crucial. The loyal customers might find an alternative product hence you must have a way to win them back. Winning back the customers is not easy since you need to do research no why the customers had to shift. Technology is a problem with many businesses. The