Quote: "Let us do something new"

Inputs: Idea or discovery + Plan + Implementation resources

Outputs: New product or process + Risk + Benefit + Impact

Commentary: Innovation is a process, and the "innovator" is often an organisation of people providing a diverse range of complementary skills and knowledge. Consequently, it is rare for just one individual to be an innovator. Innovation always comes with a potential risk and it is the responsibility of the innovators to assess and manage that risk. Innovation aims to introduce new benefits, which exceed those available from current "best practice". Innovation also introduces some degree of new, and possibly unforeseen, impact on the innovative organisation and others.

Quote: "I plan to make lots of money"

Inputs: Risk taker + Seize new opportunities and unique advantages + Plan + Resources

Outputs: Creates new business + Business growth + Risk + Benefit (profit)

Commentary: An entrepreneur will take (financial) risks to pursue new opportunities that may lead to large returns on their (capital) investment. They usually seek high profits, and moderate to rapid growth in their business. Financial backing may be sort from grants, angel investors, and venture capitalists. An entrepreneur will be very dedicated to their business, and they may invest over 70 hours of their time every week. A serial entrepreneur will start up a series of such businesses. An entrepreneur might make use of innovation.

Quote: "I will give this a go"

Inputs: Risk taker + (Plan) + Resources

Outputs: Creates new business + Risk + Benefit (survival)

Commentary: The owner of a start-up business demonstrates some degree of entrepreneurial spirit, but is not necessarily motivated by the same aims and objectives. Typically, these people have less support available to them than the entrepreneur, especially in terms of financial backing. Setting up a new business is a risky venture and the short term objective is often one of survival. However, for the successful start-ups the owner may be rewarded with profit, a greater control over their own destiny, and a feeling of fulfilment. This success is strongly influenced by the skills and knowledge of the owner, a good business and marketing plan, and their network of contacts. Luck helps too.

Quote: "The business is going OK"

Inputs: (Risk taker) + (Plan) + Resources

Outputs: Business + Risk + Benefit (turnover)

Commentary: The owner of an established typical small business may make use of effective planning and best practice, or they may not. They may be a risk taker and have ambitions for growth, but typically their aim is to maintain the status quo.

Quote: "We have always done it this way"

Inputs: Inefficient resources

Outputs: Business + Risk + Benefit (survival)

Commentary: The complacent manager is stubborn and resistant to change, whilst also being ignorant of innovative developments within their own business sector. They are not open minded, and probably do not attend training courses or development events. The business eventually fails when superior competitors tread on their patch, and take away their customers. For these managers, the greatest risk to their business is their innovation-phobia. [They will never see this definition].

Quote: ". . . Why . . . What . . . How . . ." Inputs: Stupidity + Accidents + Ignorance + Questions - Dogmatism Outputs: Discovery + New ideas and perspectives + Risk + Benefit

Commentary: The idiot is not always useless. They can be very valuable in terms of providing new perspectives and triggering innovative ideas during creative thinking. They can also be useful for prototype and product usability testing. Is your product foolproof? Give it to the idiot to test. An idiot may also reveal the "unforeseen". Is this definition serious? Do not be stupid - oh on second thoughts go on then . . . So long as your idiot is managed, but is not the manager!

Do you want new perspectives and ideas that are so "radical" and so stupid that only an idiot could suggest them? If so then ask the idiot - he is so stupid he even works for free!

In a small business, the CEO may occupy any of the roles described on this page.

In a large corporation, the CEO is rarely an entrepreneur - though they may have been in the past.