Volume III, Issue 2, September 2007

© 2007, Journal of Asia Entrepreneurship and Sustainability

No reproduction or storage, in part or in full, permitted without
prior permission.
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THE VALUE OF CREATIVITY AND

INNOVATION IN ENTREPRENEURSHIP

Dr. Friday O. Okpara

UNIVERSITY OF GONDAR, ETHIOPIA
INTRODUCTION
Drucker (1985) argued that innovation is the tool of entrepreneurship. In addition, both
innovation and entrepreneurship demand creativity. Creativity is a process by which a
symbolic domain in the culture is changed. New songs, new ideas, new machines are
what creativity is about Mihaly(1997). Creativity is the ability to make or otherwise
bring into existences something new, whether a new solution to a problem, a new method
or device, or a new artistic object or form. Wyckoff (1991) defines creativity as new and
useful. Creativity is the act of seeing things that everyone around us sees while making
connections that no one else has made. Creativity is moving from the known to the
unknown. Culture exerts a negative force on creativity according to Pearce (1974),
however, “were it not for creativity, culture itself would not be created.”
No entrepreneur or enterprise, however successful and big, can continue to hold a
place of leadership unless it recognizes that modern business operates in a world of
galloping change which creates new problems, risk and opportunities and for which they
have to mobilize the enterprise’s resources before changes make their impact felt. To do
successfully, the entrepreneur and enterprise should know where this firm is going and
how the firm will get there. This is turn requires a clear definition of the company’s
business which will enable it to continually adopt operations to the realities of the market
place, ‘the very corner stone of survival and growth”
Innovation is defined as adding something new to an existing product or process.
The key words are adding and existing. The product or process has already been created
from scratch and has worked reasonably well. When it is changed so that it works better
or fulfils a different need, then there is innovation on what already exists. Innovation is
the successful exploitation of new ideas.

All innovation begins with creative ideas. C creativity is the starting point for
innovation. Creativity is however necessary but not sufficient condition for innovation.
Innovation is the implantation of creative inspiration.

CREATIVITY
Creativity is marked by the ability to create, bring into existence, to invent into a new
form, to produce through imaginative skill, to make to bring into existence something
new. Creativity is not ability to create out of nothing (only God can do that), but the
ability to generate new ideas by combining, changing, or reapplying existing ideas. Some
creative ideas are astonishing and brilliant, while others are just simple, good practical
ideas that no one seems to have thought, of yet. (Harris, 1998).
Everyone has substantial creative ability including you the reader. So you should
count yourself and believe it that you are a creative genius. All you need is to be
reawakened and be highly committed to creativity. I want you to start thinking now, in
the process something new will flow. Explore that something new today and you will be
a different personality tomorrow.
Creativity is also an attitude, the ability to accept change and newness, a
willingness to play with ideas and possibilities, a flexibility of outlook, the habit of
enjoying the good, while looking for ways to improve it, we are socialized into accepting
only a small number of permissible or normal things, like chocolate-covered strawberries,
for example. The creative person realizes that there are other possibilities like peanut
butter and banana sandwiches, or chocolate-covered prunes. Harris (1998).
Creativity is also a process. Creative person work hard and continually to
improve ideas and solutions, by making gradual alterations and refinements to their
works. Contrary to the mythology surrounding creativity, very few of creative excellence
are produced with a single stroke of brilliance or in a frenzy of rapid activity. Much
closer to the real truth are the stories of companies which had to take the invention away
from the inventor in order to market it because the inventor would have kept on tweaking
it and fiddling with it,, always trying to make it a little better, (Harris, 1998).
A product is creative when it is “novel” and “appropriate”. A novel product is
original, not predicable. The bigger the concept, and the more the product stimulates
further work ideals, the more the product is creative (Stermbering and Lubart). Creativity
requires passion and commitment. Out of the creative is born symbols and myths. It
brings to our awareness what was previously hidden and points to new life. The
experience is one of heightened consciousness-ecstasy”- Rollow May.

CREATIVE THINKING
Creative thinking has various definitions. Okpara (2000). However, it is the art
of generating solution to problems by the force of imagination and reasoning. It is an
activity of the mind seeking to find answer to some of life’s questions. In a dynamic and
changing world, the challenges of man are also not static. They take on new forms and
require a deep creative thinking approach.
It is necessary to know that we live in a thinker’s world. It is therefore, not
surprising to see that the men/women who are ahead are those who see ahead with the
eyes of their mind. Men and women who have engaged their minds in resourceful
thinking to generate idea and products, which stand the test of time.
Every idea is a product of thinking and every product is the manifestation of idea
naked in a thinker’s mind. These are people who see problems as opportunities to
improve and do something new or something better, people who keep these two vital
questions on their mind. “What can I do to make things better, or what can I do to make
better things? This is the product of thinking.
In making things better, the goals are usually to improve productivity And
efficiency, achieve speed, enhanced comfort and convenience, influence returns
positively, and so much more. While in making better things, thinking can produce
various alternative leading making better things, thinking can produce various alterative
leading to the evolution of a completely new idea, new production processes, or a total
departure from the conventional. Whatever the goal, thinking is an indispensable tool in
the life of all successful entrepreneurs.
The celebrated discoveries of man are not accidents. The minds of men/women
were engaged in creative thinking to deliver the visible products we enjoy today. Name
them: Bill Gate and the computer, Graham Bell and the telephone, Michael Faraday and
electricity, Isaac Newton and physical law of science, the Wight brothers and Aeroplane,
Adenuga and Consolidated oil, Atedo peterside and Investment Banking and Thrust
Company, Raymond Depokesi and Dear Communications. The list is endless. You too
can join them as you begin to “ponder the path of your feet, that all your ways may be
established.”
 Thinking begins with engaging yourself in a conversation with yourself by
yourself, in yourself. That is to reach a conviction and conclusion as to what steps to take
and what strategies to employ. It is advisable to always have a pen and paper at hand to
document your thoughts. It unveils every illusion around you.
The place of asking the right and relevant questions in thinking process cannot be
overemphasized. Questions remain the string tool to provoke the mind to respond to
issues ands discover new things. Creative thinking must, therefore, lead to the
articulation of a strategy. A strategy is a way of organizing available resources to achieve
results, what to do, what steps to take, the approach, the timing, positioning, all come to
play when developing strategy. It is a common knowledge that successful entrepreneurs
emerge not by strength or force but by superior strategy through creative thinking.
There are great business opportunities in applying creative thinking to solving
mankind’s crying need for basic products and basic support services –better homes, better
jobs, and a better way of life.
There are going to be tremendous opportunities in education because we need
fundamental and radical changes in Nigeria if we are going to be competitive with other
countries. However, being able to adapt ideas is what makes an entrepreneur successful.
There is nothing wrong with learning from others ideas. Creativity comes in when you
expand upon it, when you take an idea and make it move. The only way forward is to
make our education to be adaptive and qualitative at all levels.

THE PRINCIPLES OF CREATIVITY

People become more creative when they feel motivated primarily by the interest,
satisfaction, and challenge of the situation and not by external pressures; the passion and
interest – a person’s internal desire to do something unique to show-case himself or
herself; the person’s sense of challenge, or a drive to crack a problem that no one else has
been able to solve.
Within every individual, creativity is a function of three components:
1. Expertise
2. Creative thinking skills
3. Motivation.
Expertise encompasses everything that a person knows and can do in the broad
domain of his or her work- knowledge and technical ability. Creative thinking refers to
how you approach problems and solutions- the capacity to put existing ideas together in
new combinations. The skill itself depends quite a bit on personality as well as on how a
person thinks and works. Expertise and creative thinking are the entrepreneur’s raw
materials or natural resources. Motivation is the drive and desire to do something, an
inner passion and interest. When people are intrinsically motivated, they engage in their
work for the challenge and enjoyment of it. The work itself is motivating. People will be
most creative when they feel motivated primarily by the interest, satisfaction and the
challenge of the work itself-“the labour of love”, love of the work- “the enjoyment of
seeing and searching for an outstanding solution – a break through.
Creativity, according to Robert Gahim, consists of anticipation and commitment.
Anticipation involves having a vision of something that will become important in the
future before anybody else has it. Commitment is the belief that keeps one working to
realize the vision despite doubt and discouragement.
 The entrepreneur is primarily concerned with developing new products, processes
or markets, the ability to bring something new, product, processes or markets, the ability
to bring something new into the market. The entrepreneur indulges in original thinking
more than any other person thinks and he is able to produce solutions that fly in the face
of established knowledge. Entrepreneurs are inclined to be more adaptable and are
prepared to consider a range of alternative approaches. They challenge the status quo,
which can sometimes bring them into conflict with their colleagues. They dismiss their
detractors and are sometimes regarded as aloof. Stoner and Wankel(1986).
Creative outcomes seldom emerge in an instant: a recognized process is involved,
even if it appears to be rather chaotic. It begins with recognition of a problem or
anticipation of an opportunity, and then, through understanding the situation and
reflecting on the issues, new linkages are contemplated and possible new combinations
of components are aired: From this emerge visible solutions or possibilities that are
subjected to valuation, which may be continuous with judgment being suspended while
the search process is prolonged in pursuit of genuine newness.
Entrepreneurs take bold creative steps but situations encourage creativity.
Creativity is, however, enhanced when people have some freedom, but not too much;
high internal commitment to the task; but not too high a commitment; high proportion of
intense rewards, but some extrinsic rewards as well; some competition but not winner-
take-all competition. Thompson (2001). Entrepreneurial activity depends on the process
of innovation following creativity, not on creativity alone.

INNOVATION
Innovation is the process of bringing the best ideas into reality, which triggers a creative
idea, which generates a series of innovative events. Innovation is the creation of new
value. Innovation is the process that transforms new ideas into new value- turning an
idea into value. You cannot innovate without creativity. Innovation is the process that
combines ideas and knowledge into new value. Without innovation an enterprise and
what it provides quickly become obsolete.
The dictionary defines innovation as the introduction of something new or
different. Innovation is the implementation of creative inspiration. The National
Innovation Initiative (NII) defines innovation as “the inter-section of invention and
insight, leading to the creative of social and economic value” Innovation is “value” – the
creation of value adding value to customer’s satisfaction- “delighting the customers”.
Innovation is the basis of all competition advantages, the means of anticipating and
meeting customer’s needs and the method of utilization of technology.
Innovation is fostered by information gathered from new connections; from
insights gained by journeys into other disciplines or places; from active, collegial
networks and fluid open boundaries. Innovation arises from organizing circles of
exchange, where information is not just accumulated or stored, but created. Knowledge
is generated a new from connections that were not there before. Wheatley (1994).
Innovation requires a fresh way of looking at things, an understanding of people,
and an entrepreneurial willingness to take risks and to work hard. An idea doesn’t
become an innovation until it is widely adopted and incorporated into people’s daily
lives. Most people resist change, so a key part of innovating is convincing other people
that your idea is a good one – by enlisting their help, and, in doing so, by helping them
see the usefulness of the idea- Art Fry.
Enterprises throughout the world are experiencing what can be legitimately
described as a revolution: rising energy and material costs, fierce international
competition, new technologies, increasing use of automation and computers. All these
are major challenges, which demand a positive response from the entrepreneur and
management if the enterprise is to survive and prosper. At a time when finance is
expensive, the firm’s liquidity is bordering on crisis, the need for creativity, and
innovation is more pressing than ever and as competitors fall by the way side, the rewards
for successful products and process are greater.
The instigation of new development is the responsibility of the enterprises
themselves, which, through experience, are aware of the difficulties created when
undertaking innovative investments in a period of great uncertainty. Innovation calls for
special entrepreneurial and management skills, the cooperation of a committed
workforce, finance and a climate which will create the optimum overall conditions to
encourage success.
Joseph Schumpeter (1934) believes that the concept of innovation, described as
the use of an invention to create a new commercial product or service, is the key force in
creating new demand and thus new wealth. Innovation creates new demand and
entrepreneurs bring the innovations to the market. This destroys the existing markets and
creates new ones, which will in turn be destroyed by even newer products or services.
Schumpeter calls this process “creative destructions.”

THE ENTREPRENEUR AND ENTREPRENEURSHIP

What are entrepreneurs like? What distinguishes them from other business people? An
entrepreneur is the man or woman who is able to actualize his/her innate potentials and
develop a character that is not dependent but independent. He/She is that person who
undertakes the voyage of creating value by pulling together a unique package of
resources to exploit an opportunity. He or She has the capacity and capability to build
something from practically nothing – initiating, daring, doing, achieving, and building an
enterprise. They genuinely believe they have something new and special to offer, either a
product or a service. To them, life will remain a fantasy unless their dreams are
actualized.

Entrepreneurs have been described as people who have the ability to see and evaluate
business opportunities, gather the necessary resources to take advantage of them and
initiate appropriate action to ensure success. Meredith et al (1991). He is a risk- taker, a
man, or woman who bears uncertainty, strikes out on his or her own, and through natural
wit, devotion to duty and singleness of purpose, somehow creates a business and
industrial activity where none exited before.

Entrepreneurs are achievement- oriented, like to take responsibility for decisions and
dislike repetitive and routine work. Creative entrepreneurs possess high levels of energy
and great degrees of perseverance and inauguration, which combined with a willingness
to take moderate, calculated risk, enable them to transform what began as a very simple
ill- defined idea or hobby into something concrete.
Entrepreneurs can instill highly contagious enthusiasms in an enterprise. They convey a
sense of purpose and determination and by so doing, convince others they are where the
action is. Whatever it is – seductiveness, competitiveness, or charisma –entrepreneurs
knew how to lead an enterprise and give it momentum. The entrepreneur demonstrates a
unique combination of energy, originality and shrewdness .He is the main driving force
in the enterprise, a master of motivation and knows how to get the best out of people.
Manfred (1997).

Most importantly, entrepreneurs are the driving force of any nation ; they are value-
adders and represent the wealth of a nation and its potentials to generate employment.
The entrepreneur may be a highly educated, trained, and skilled person or he/she may be
an illiterate person possessing high business acumen, which others might be lacking.
Nevertheless, he/she possesses the following qualities:
I. He/She is energetic, resourceful, and alert to new opportunities, able to adjust
to changing conditions and willing to assume the risks in change and
expansion.
II. He/She introduces technological changes and improves the quality of his/her
product;
III. He/She expands the scale of operations and undertakes allied pursuits, and
reinvests his/her profits.

The ENTREPRENEUR, therefore includes any person who establishes and manages a
business enterprise. This is the man or woman who owns a restaurant, fashion centre,
boutique, bakery, tailoring outfit, beauty centre, barbering saloon, bookshop, home
catering, business centre, shoemaker, car washing centre, photographing. Others are dry
cleaning, video centre, telecentres, wholesale trade, coffee and teashop, hotel, producers
of yortgurt, fruit juice, bottled and table water, nails, cellophane papers, etc are all
entrepreneurs in the contents of this paper. They are all businesses and each has a unique
contribution to make in the development of the economy.

The mix of creativity and irrationality is what makes entrepreneurs tick and accounts for
many of their positive contributions. Their visionary abilities and leadership qualities
stand them out as human colossus. From whatever perspective, the entrepreneur is the
kingpin of any business enterprise, for without him or her the wheels of industry cannot
move in the economy. As aptly pointed out by Brozen (1962). “The private
entrepreneurship is an indispensable ingredient in economic development over the long
period.”

Entrepreneurship means much more than starting a new business. It denotes the whole
process whereby individuals become aware of the opportunities that exist to empower
themselves, develop ideas, and take personal responsibility and initiative. In a broader
sense, entrepreneurship helps young men and women develop new skills and experiences
that can be applied to many other challenges in life. Entrepreneurship is therefore a key
priority area with the potential to stimulate job and wealth creation in an innovative and
independent way.
Entrepreneurship provides young people across the nation with valuable life skills and
tools to empower them to build sustainable and prosperous futures for themselves and
their communities. Entrepreneurship is the willingness and ability of an individual to seek
out investment opportunities, establish, and run an enterprise successfully. The concept of
entrepreneurship has been associated with several activities concerned with the
establishment and operations of business enterprises. Stevenson (1985) defines
entrepreneurship as the process of creating value by putting together a unique package of
resources to exploit an opportunity. Entrepreneurship is the ability to create and build
something from practically nothing. It is initiating, doing, achieving, risk- taking, and
building an enterprise.

Entrepreneurship instills the enterprise culture into the individuals. Enterprise here is
defined as resourcefulness, initiative, drive, imagination, enthusiasm, zest, dash,
ambition, energy, vitality, boldness, daring, audacity, courage, get up, and go.
Entrepreneurship, therefore, encompasses all the productive functions that are not
rewarded immediately by regular wages, interest and rent and non-routine human labour.
It is also not investing capital funds along. It is actually, the functions of seeking
investment, production opportunity, organizing an enterprise to undertake new
production process, raising capital, hiring labour, allocating resources, and creating new
enterprises.

THE ELEMENTS OF INNOVATION

Innovation is the successful development of competitive advantage and as such, it is the
key to entrepreneurship. The entrepreneurs are the “dreamers”, who take hands on
responsibility for creating innovation. It is the presence of innovation that distinguishes
the entrepreneur from others. Innovation, must therefore, increase competitiveness
through efforts aimed at the rejuvenation, renewal, and redefinition of organizations, their
markets or industries, if business are to be deemed entrepreneurial.
Fiona Fitzpatrick identified the following elements of innovation:
1. Challenge: What we are trying to change or accomplish-the “pull”
2. Customer focus: Creating value for your customers – the “Push”
3. Creativity: Generating and sharing the idea(s)- the “brain”
4. Communication: The flow of information and ideas –the “life blood”
5. Collaboration: People coming together to work together on the idea(s) - the
“heart.”
6. Completion: Implementing the new idea-the “muscle”.
7. Contemplation; Learning and sharing lessons lead to higher competency-the
“ladder”
8. Culture: The playing field of innovation includes:
 Leadership (sees the possibilities and positions the team for action-the role
model)
 People (diverse groups of radically empowered people innovate –the
source of innovation)
  Basic values (trust and respect define and distinguish an innovative
organization-the backbone).
 Innovation values (certain values stoke the fires that make the
“impossible” possible-the Spark).
9. Context: Innovation is shaped by interactions with the world.

FORMS OF INNOVATION
In a start-up, the entrepreneur is regarded as the key actor in developing a business idea,
marshalling resources, and creating an enterprise to bring a new product or service to the
market. In a competitive business environment, the entrepreneur and the enterprise
should continue to seek lout now opportunities and make the necessary arrangement to
convert them into new goods and services. Innovation should, therefore, impregnate the
entire enterprise for the creation and invention of competitive edge and relevancy in the
market place.
Innovation can take several forms:
i. Innovation in processes, including changes and improvement to
methods. These contribute to increases in productivity. Which lowers
cost and helps to increase demand.
ii. Innovation in products or services. While progressive Innovation is
predominant, radical innovation opens up new markets. These lead to
increases in effective demand which encourages increases in
investment and employment.
iii. Innovation in management and work organization, and the
exploitation of human resources, together with the capacity to
anticipate techniques.
Innovation centres on people, culture, structure, process and technology.
Innovation is the process through which the entrepreneur converts market opportunities
into workable, profitable, and marketable ideas. Innovation is an application of
something creative that has a significant impact on an organization, industry or society.
Entrepreneurship is the continuing generation of Innovation in response to perceived
opportunities in the business environment.
In this approach, entrepreneurship is therefore concerned with newness: new
ideas, products, services or combinations of resources aimed at meeting the needs of
consumers more efficiently. Entrepreneurship has been described in terms of the ability
to create something from practically nothing. It is initiating… and building an enterprise
rather than … watching one. It is the knack for sensing opportunities where others see
chaos, contradiction and confusion. It is the ability to build a “founding team” to
complement your own skills and talents. It is know –how to find, marshal and control
resources. Finally, it is a willingness to take calculated risk. Timmons (1989).

CHALLENGE FOR INNOVATION

The place of innovation in commercial success is the development or adoption of new
concepts or idea that leads to any form of increased organizational or social benefit.
Innovation is vitally concerned with novel approaches, new ideas, and originality, and it
the means by which ideas are exploited for competitive advantage. The present economic
reform of the Nigerian Government- National Economic Empowerment and
Development Strategy (NEEDS) calls for less dependence on imported materials – goods
and services and technology. However, if this dependence is to be successfully broken,
three activities should receive adequate priority management attention and the
commitment of resources in this century.
1. The need to investigate our latent natural resources for the possibility of
transmitting them into goods and services. This would require a scientific
analysis of the various resources available in the country, the identification of
their properties, and a determination of the extent to which those properties can be
harnessed.
2. The need to develop new technology which can be used to process the raw
materials which may result from the investigation of natural resources suggested
above and with a view to producing goods and services from them.
3. The need to adapt existing technology so as make them accept local materials are
substitutes. A complete change from an almost total dependence on foreign
research and technology is source of products is called for.
Entrepreneurial success in this century, therefore, depends on the seriousness with which
innovative activities are undertaken by the enterprises in terms of indigenizing input
sourcing and the development of new indigenous products.
The society in general will benefit tremendously from the individual enterprises
undertaking innovative activities rather than leaving such to government agencies. As
Max Weber has observed “when innovation is channeled through autonomous competing
enterprises, risk is encouraged and the social curse of unsuccessful innovation can be
limited. Society can afford to have an enterprise failure, but society cannot afford to have
government failure. Government economic planners proceeding by law or fiat have no
flexible mechanism comparable to a market in which they can assess the probabilities of
any given risk and measure its results”. No enterprise, however diversified or big, can
therefore, rest on its oars and past achievements. It becomes imperative for an enterprise
to continuously challenge itself to finding new and better ways of doing the old things or
infact create new ways of doing new things. The new environment may therefore call for
new product designs, new production techniques, composition and packaging which take
cognizance of the dynamic business environment.
Success in business today demand constant innovation. Generating fresh solutions
to problems and the ability to inherit new products or services for a changing market are
part of the intellectual capital market that gives an enterprise its competitive edge. In a
dynamic environment, success comes from looking for the next opportunity and having
the ability to find hidden connections and insights into new products or services, desired
by the customer.
While brain-power is the most valuable resource, great ideas are in short supply.
Successful entrepreneurs place high premium on attracting and keeping talent because
wealth flows directly from innovation. Creativity is the root of innovation. It is a process
and a skill which can be developed and managed throughout the entire enterprise.
One of the first steps in creating a culture of innovation is unleashing the
creativity in yourself. The challenge is getting to see the is world with fresh ideas and to
develop fresh solutions. Speed innovating is a proven approach for helping you develop
breakthrough solutions in the shortest possible time.
 Creative ideas are not enough for your business to survive. You need a process
organization and culture that will help you maximize your creative assets. This is
innovation capability that helps your pull together the best thinking within your business,
enabling you to connect the organization dots.
Shapiro argues that perpetual and pervasive innovation is the key to long –term
sustainable success in the relentless competition for customers. To survive any
competition, you must rapidly and repeatedly re-invent yourself. The road map to re-
invention starts by applying the seven R’s.
1. Rethink your underlying assumptions.
2. Reconfigure how you carry out work.
3. Resequence when work takes place
4. Relocate where work is done to cut down on handoffs and delays.
5. Reduce the frequency of carrying our specific activities.
6. Reassign who does the work by asking if anyone else could achieve the
same result more effectively and efficiently.
7. Retool the technology that supports getting the work done. Could new
software and automated equipment transform our ways of working?

CREATIVITY AND INNOVATION IN AN ENTREPRENEURIAL ORGANIZATION

Growth and development cannot be sustained without additional innovations (usually in
the product or services or in its marketing) with additional innovations, firms become
“glamorous” Introducing new products is usually seen as part of the process of
innovation, which is itself seen as the engine driving continued growth and development.

The “winning performance” of the entrepreneur and the organization focuses on.
 Competing on quality not prices:
 Domination of a market niche;
 Competing in an area of strength
 Having tight financial, and operating controls:
 Frequent product or service innovation (particularly important in manufacturing).
Porter (1985) argues that, while successful businesses will each employ their own
strategy, they achieve completive advantage through acts of innovation. Learning and
problem-solving are common activities in many working environments today, but some
people believe that true entrepreneurship occurs when individuals ignore the established
ways of thinking and acting and seek novel ideas and solutions that can meet customers’
needs Entrepreneurship is, therefore, the innovatory process involved in the creation of
an economic enterprise based on a new product or service which differs significantly
from products or services offered by other suppliers in content or in the way its
production is organized nor in its marketing.. (Curran and Burroughs, 1986)
It has been argued that small businesses have a greater proclivity to innovate than
their large counterparts and are, therefore, crucial in helping a country respond to myriad
changes in the economic, technological and social environment. (Acs and Gifford, 1996).
For instance, the OECD points out that small firms are innovative in different ways and
are especially active in developing new’ approaches to management and marketing.
(OECD/DST/IND, 2000)
 To grow and prosper, most enterprises need to constantly improve their existing
products and services through continuously innovating needed changes: and for survival
of the enterprise, must also need to create new products and services to meet yet
unfulfilled needs. Enterprises that rely exclusively on innovation will prosper until their
products and services “ran out of gases and become obsolete and non-competitive. On
the other hand, enterprise that are totally creative will have their new products and
services ready to launch, but often too few current products sufficiently up-to-date and
competitive to generate the cash needed to fund their creativity.
Changes are that the very successful leaders of the future will be more likely to make
creativity and innovation a strategic priority in their organization. In today’s
environment where competition requires business enterprises to be distinct and meet
customer needs with better or never products and organization becomes in critical
necessity
Joseph Schumpeter views innovation as the source of success in the market economy, a
view that is reinforced by today’s changing and competitive environment. The
organization that is not creative and innovative cannot survive in the market place. Thus,
entrepreneurs and enterprises are continuously creative and innovative to remain relevant
to the customers, which is the purpose of every business.

CONCLUSION
Successful entrepreneurs require an edge derived from some combination of a creative
idea and a superior capacity for execution. The entrepreneur’s creativity may involve an
innovation product or a process that changes the existing order. Or entrepreneur may
have a unique insight about the course or consequence of an external change.
Entrepreneurship is the vehicle that drives creativity and innovation. Innovation creates
new demand and entrepreneurship brings the innovation to the market. Innovation is the
successful development of competitive edge and as such, is the key to entrepreneurship.
Creativity and Innovation are at the heart of the spirit of enterprise. It means
striving to perform activities differently or to perform different activities to enable the
entrepreneur deliver a unique mix of value. Thus the value of creativity and innovation is
to provide a gateway for astute entrepreneurship—actively searching for opportunities to
do new things, to do existing things in extraordinary ways. Creativity and Innovation
therefore, trigger and propel first-rate entrepreneurship in steering organization activities
in whatever new directions are dictated by market conditions and customer preferences,
thereby delighting the customers to the benefit of the stakeholders. Innovation also
means anticipating the needs of the market, offering additional quality or services,
organization efficiently, mastering details, and keeping cost under control.

No doubt, the current economic environment is a volatile and violent one. The
new environment demands renewed dynamism of approach. Creativity and innovation is
the new name of the game. Only the discerning organizations can manage the changes
inherent in the new environment. It is the duty of the entrepreneur to keep his/her
organization lean, young, flexible, and eager for new things to continuously delight the
customers, which is the purpose of every business.

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