The importance of innovation for entrepreneurial success

In the constantly and rapidly changing world of today, it has become vital for new businesses and start-ups to make a mark and stand out from their competition. Constant innovation can help these start-ups thrive in a highly competitive atmosphere

As the world gets more and more competitive with every passing day, innovation is what sets us apart from others. Innovation involves the use of new ideas to introduce a new product, service, or a stream of processes. For an entrepreneur, this becomes even more vital, because standing out is what separates a thriving business from an average start-up. Remember, Netflix started as an online DVD rental store, but constant innovation in the space led it to the success that it is today!

In 2020 alone, the Indian government recognised 41,061 start-ups in India, of which 39,000 start-ups created over 4.5 lakh jobs. India currently houses the world’s third-largest start-up ecosystem, with 38 firms being valued at over $1 billion. In 2020, despite the economic disruptions caused by the pandemic, 12 new ‘unicorns’ were minted from the country. To help young entrepreneurs bring their innovations to life, the government is focusing on Start-Up India Seed Fund Scheme, Start-Up Yatra, Small Industries Development Bank of India, tax exemptions, and more.

The Cornell School, in collaboration with the World International Patent Organisation (WIPO), released the Global Innovation Index 2020. Amidst the 131 countries on the list, India ranked at 48, a huge jump from the 81st rank in 2015. With such growing capabilities of the country and the government focus on innovation and invention, here’s looking at the role it plays towards entrepreneurial success:

Relevance

With a constantly changing world and evolving technologies, innovation in business is the only way to adapt to the new realities and be relevant. Approximately 2.5 lakh+ new websites are created daily, India has crossed 800 million internet users and there are over 8 billion devices connected digitally. These growing numbers are indicative of how organisations need to keep discovering new business plans and strategies to thrive. At the same time, innovation in entrepreneurship is also the only way to disrupt monopolistic markets and make a name for yourself.

Growth

Innovation doesn’t happen overnight and takes years of planning, trials and failures, strategising, and implementations. While it may seem like the slowest path to success, it is the most rewarding one. This potential for growth is likely the reason that, in a recent survey conducted by The Boston Consulting Group, 79 percent of surveyed executives claimed innovation ranked among their top three business initiatives — the highest percentage since the survey began almost a decade ago.

Distinguishing Factor

The whole purpose of innovation is to do something out of the box, and something that no one else is doing. While this helps your start-up differentiate itself from other organisations in the sector, this is especially more rewarding in an oversaturated market. Case in point would be Chaayos – a start-up that explored India’s love for tea. Tea stalls are present in every nook and corner across the country, and yet, Chaayos found a way to capture the market with innovative flavors of chai with lip-smacking snacks and are now present in 6 cities with 50+ outlets. They further opened the space for similar businesses like Chai Point and Wagh Bakri Tea Lounge. Another example in the field of innovation was NestAway – an app to rent furnished homes without a broker. No need to negotiate with brokers or provide character certificates to landlords, NestAway allows people to move in, move out and do more when it comes to finding a space to live.

The importance and need for innovation for entrepreneurial success are unlimited. To quite an extent, it is the driving point for a start-up to make it big in the ever-growing economy. With ‘start-up’ being the buzzword in recent years, India has already made it to the 3rd position as the world’s largest start-up base. At the same time, according to Bloomberg News analysis, “India is likely to have the world’s largest workforce by 2027, with a billion people aged between 15 and 64.”

If start-ups, entrepreneurship and business growth excite you, and you want to make a future in this space, now is the time to apply to the UPES School of Business. It offers an MBA in Start-up and Entrepreneurship with a specialisation in Business and Innovation, which will help you dominate the space with multidisciplinary learning and global exposure. Know more about the course here.