Innovation entails the creation of new ideas or discovery into a good or service that generates importance or for which customers can afford. Though, there are many types of innovation use by entrepreneurs but in this report we will be describing and explaining only three (3) types of innovation used by different entrepreneurs, also the benefits of innovation to entrepreneurs. However, the three types of innovation to be considered include; Breakthrough, Incremental and Frugal innovations.
Breakthrough innovation (Radical) This innovation tend to uproots existing markets by providing something completely new to the market. It is also major changes to service, technology and product that are already in existence to something completely new or an important alteration (change) of
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Benefit of Innovation
The benefits of innovation cannot be over emphasized, for it has numerous benefits to the entrepreneurs as well as the public, below are the classification;
Market Extension It help smaller businesses compete on a global stage. Internet, for example, allow an entrepreneur to offer their products or services to prospects around the world through the use of a website, Social media like Twitter, Facebook etc.
Keeping Costs Innovation help entrepreneurs to keep costs such as benefits, salary and turnover to the maximum with the use of automation, also small manufacturer can reduce their dependence on human beings to perform some of the necessary production processes.
Employee Anxieties It reduce the obligation on a workforce, the casual side is that employees lose their jobs in the development as a result of entrepreneurs choosing between letting go long-time employees or increasing profits, by introducing new processes, services, products and technologies.
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