Creativity is a human capacity, which pays high attention to studies and thinking. It is either a natural gift or is acquired also. This way, it creates new methods of working place of traditional methods, for achieving general objectives. While putting stress on the importance of creativity in entrepreneurship.
In every aspect of entrepreneurship, creativity has an important role.
Creativity is like raw material for the new and best solution for problems arising in every sphere.
Importance of Creativity in Entrepreneurship
Why creativity is important in entrepreneurship? or The importance of creativity in entrepreneurship is as follows:
1. To Face Cut-Throat Competition
Entrepreneurs accept new methods, techniques and new ideas through creativity.
As a result, on the one side, maximum production at minimum costs becomes possible and on another side, the sale of commodities also gets increased.
Not only that, none serious competitors remove from the market because creative persons bring several new products.
In the market at low prices and also makes people aware of its use.
2. Clubbing of Goals Becomes Possible
Creativity is of two types: individual and organizational and both are essential for entrepreneurship.
Individual creativity includes discovery, thoughts, imaginations, and novelty of the individual, which helps in the smooth operation of the organization.
By creativity, individual and organizational goals may be clubbed together.
This is called creativity and entrepreneurship theory.
Related: 11 Stages in Process and Different Types of Creativity.
3. Entry of New Products in Market
An important problem of the organizational problems is to introduce the new products in the market.
But, it may be made possible by creativity, since these are based on new thoughts and perceptions, recognition and likings.
As a result, consumer reality accepts them.
4. Best Communication
Through Creativity, the employees are encouraged for constructive suggestions and creative ideas, so that they may also present the weakness and strengths of their organization.
By that, the managers get knowledge about the ideas of the employees about their organization.
Not only that, by the use of group creativity techniques, communication between the members substantially increases, social barriers get removed and cooperation also increased.
5. Forecast of Changes
Creativity is also helpful in the forecasting of internal and external changes taking place in the organization, the reason being that in today’s complex environment, the business conditions of the markets are also fast-changing, in several ways.
As a result, old products, techniques, old production methods become useless.
So, in this emerging dynamic, aggressive and complicated environment, the forecast of the changes may e possible only by creativity, which is essential to minimize the risks.
6. Integration with Firm
Acquaintance with the firm and creativity move together.
When the employee develops new ideas, he automatically associates himself with the reputation, problems, and goals of the firm.
He gets integrated with the firm.
It develops feelings of joint sharing and collective excess in him.
7. Establishment of Cordial Relations
Cordial relations are developed in the organization through creativity because on the one side, it nicely affects their feelings by the combination of new ideas and on the other side, fresh results of activities start becoming visible.
Thus, the success of an organization also becomes visible.
This creativity applies to entrepreneurship.
8. Building up Feelings of Continuity in the Group
Creativity creates a feeling of continuity in the group or Organization.
The Creativity is that ideas which builds continuously emerging feelings of the group.
Related: 19 Modern Techniques of Decision Making in Management.
9. Abundance of Resources in Place of Scarcity
The resources of production are Limited, which are sure to exhaust some days.
In such conditions, which source and from where should be made available, makes the question mark.
In response, creativity is the only alternative, which facilitates searching of some source, by studies and thinking.
Thus, abundance may be made possible in place of scarcities.
10. Success in Reducing Cost of Labour and Production
Presently, the cost of labour and production has gone high in all spheres.
Its ill effect is that the profits of the producers get reduced and the purchasing power of the consumers also goes down.
But, my creativity, both types of costs may be lowered down, since creativity gives new ideas, combines them and also brings out new discoveries and concepts.
11. Increasing Power to Make Organisation Capable
Establishment of an organization is for certain objectives and goals.
However, it is possible only when new commodities are produced, problems of workers are solved and new principles and methods and techniques are used in the organized and also when all these are well coordinated.
All these may be made possible through creativity, which increases the power to make the organization more capable and strong.
12. Search of New Opportunities Becomes Possible
An entrepreneur has to take various steps to make the decisions, like knowledge of opportunities, familiarity with the problem, development of alternatives, follow up, etc.
In all these steps, creativity has an important role, because these steps may be used first, with the help of Ideas, concepts, and imaginations emerging, on the basis of creativity.
Thus, the search for new opportunities becomes possible through creativity.
13. Success of Employees
We know that creativity is a distinctly human capacity and pre-conscious system which creates new and unique ideas, concepts and imaginations when the persons work in the conditions of consciousness.
As a result, the employees use their knowledge, works on the basis of experience and also get an honorarium.
Besides, their new and useful ideas are also incorporated in the work, and hence they put their heart into the work.
Thus, employees of the organization get success.
14. Settlement of Disputes
In every organization, there are mutual disputes.
A conflict exists between the persons because some persons have belief in the traditions and some belief in modern thoughts.
In such a situation, disputes may be easily settled through creativity.
New and unique ideas, concepts and imaginations are created and attention is paid to studies and thinking.
Thus, creativity is helpful in solving the organizational problems by the settlement of mutual disputes.
15. Solution of Problems
In business and non-business organizations, creativity has an important role in solving problems, the reason is that on the basis of creativity, the entrepreneur will not only be able to solve the problems in all spheres, through unique as well as traditional ideas, concepts, and imaginations, but taking of practical decisions will also be made easy.
So, “To develop various alternatives to solve the problem depends upon the creativity of the decision taker.”
So, Common barriers to creativity in entrepreneurship.
Thus, now you know the importance of creativity in entrepreneurship.
Read More:
- 12 Characteristics of a Creative Organization (Explained)
- 15 Characteristics of Creativity (Creativity as a Skill)
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- 11 Tips for Money Management for Small Business
- 25 Major Benefits or Advantages of Branding (Explained)
- 15 Important Characteristics of Public Relations (Explained)
- 13 Characteristics and Objectives of Business Environment (With Examples)
It’s really good and eduactive thanks aloot
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Thanks for the list, I totally agree that creativity is really important.
Welcome. and ho can we help you?
Welcome. and how can we help you?
Thanks Jennifer, I don’t need help with anything I was just agreeing with the point you mentioned in the article but thank you.