Innovation and the Entrepreneur

The financial crisis and the economic downturn…subjects beat to death by every pundit that has access to a computer which pretty much includes everyone. Got “crisis burnout” yet? We all have!
Let’s counter this with some positive understanding of how innovation will, and is, playing a key role in the new fortunes of the individual and the economy at large. Personally, I think the recent effects of the downturn is a rich breeding ground for the effects of true innovative measures undertaken by the best and brightest of us all. One thing these present conditions warrant is the fact it forces innovators to not waste nearly as much money identifying and pressing the monetary action button for projects. What? If you give people a lot of money, it gives them the privilege of pursuing the wrong strategy for a very long time. Prosperity tends to insulate innovators from market realities and allow them to pursue their vision, right or wrong and statistically speaking, usually wrong as 93% of all innovations that started out and became successful, started out in the wrong direction in the first place!
What effect does this have? Breakthrough innovations come when resources are limited and the tension is the greatest. This is typically when people are open to re-thinking the way they do business. The corollary to this is when companies abandon their plans and retrench, focusing on their niche to make it more relevant than embarking on new plans.
Disruptive innovation relative to specific market niches is taking place by companies and individuals with an even greater frequency in these market conditions. Why? Our view is that people who have been with true innovators have been forced into a downsized role or been gutted from their companies in ever increasing droves. Can they make a better widget? Market it? We see it frequently and have more and more prescient companies and their newly minted founders looking for the money to provide these innovations to the market place. Observing the numbers seeking capital for these great, and sometimes not so great, but interesting nonetheless, business propositions, puts us in the direct firing line of seeing America starting its metamorphosis from a big box company mentality, (don’t forget to get your gold watch at the end!), to one of true spirit and entrepreneurial savvy that made this country great. Bring on the innovators!