Entrepreneurship is an innovation process.
Schumpeter (1934) describes this distinct feature of entrepreneurship that involves with innovating a product with which consumers are not yet familiar or a new source of raw materials or a new market either to unexplored or a new combination of means of production or a new way of operation not yet applied.
Thus, entrepreneurship foresees the potentially profitable opportunity and tries to exploit it in a new and better way.
Wilken (1979) summaries a list of innovative activities entrepreneurship does. They are shown below:
- Initial expansion- Original production of goods.
- Subsequent expansion- Subsequent change in the number of goods produced.
- Factor innovation- Increase in supply or productivity of factors.
- Financial- Procurement of capital from a new source or on the new farm.
- Labor- Procurement of labor from a new source or of a new typo; upgrading existing labor.
- Material- Procurement of old material from a new source or use of a new material.
- Production innovations- Changes in the production process.
- Technological- Use of new production technique
- Organizational- Change of form or structure of relationships among people.
- Market innovations- Changes in the size or composition of the market a Product.
- Production of new good or change in quality or cost of existing good.
- Market- Discovery of a new marker.
