Role of Entrepreneurship and Innovation in the Current Banking Crisis Essay

Role of Entrepreneurship and Innovation in the Current Banking Crisis - Essay Example Innovation and entrepreneurship have played a significant role in the current banking crisis. Innovation is a change in product, service or the method of production and marketing, with the aim of improving competitiveness of a business in the market. It can be done continuously in the production process, involving introducing minor changes in the product so as to ensure the business is always ahead of other competitors in the market. (Feldman, 2001:21-24). Entrepreneurship on the other hand is the process of undertaking the risk of obtaining goods and services at a particular cost and selling them at predicted prices. It is the process of combining many factors of production in the creation of new enterprises. Innovation and entrepreneurship are very important for human existence. They have made humans to advance to the current state whereby life has been made easier and essential commodities have been made available. Technological advancements through innovation assist in production of goods and services in a more effective and well-organized manner. Innovations in communic ation and information technology have made the world to be a global village, making international business a haven for entrepreneurs. The research process involved collection of theories and concepts in entrepreneurship and innovation from various academic materials such as books, journals, online articles and magazines. The information was carefully analyzed and its relevance to entrepreneurship and innovation assessed. A critique of different approaches in entrepreneurship and innovation provided definition, importance of entrepreneurship and innovation in general as well as the role of entrepreneurship and innovation in oligopolies. Conclusions were drawn from the results of the analysis of the information gathered. Â