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Entrepreneurship & Innovation Overview

Sep 18, 2025

Overview

This session introduced the CMAT Innovation and Entrepreneurship section, began with a current affairs quiz, and focused on the history of entrepreneurship, key theories, types of innovation, and their practical examples.

Session Introduction & Approach

  • The upcoming one-month series will cover innovation, entrepreneurship, content, and logical reasoning for CMAT.
  • Daily business and current affairs awareness is crucial for the exam.
  • Students should join the Telegram group for updates and utilize provided study resources.
  • Each session will start with a quiz on recent business topics and general awareness.

Sample Quiz Questions & Learning Points

  • Kuku FM and Shaadi.com both use a subscription-based revenue model.
  • Swiggy became a publicly listed Indian company in November 2024.
  • NTPC Green had the largest green energy IPO in 2024.
  • Blinkit was acquired by Zomato; Future Retail by Reliance; NDTV by Adani.
  • BRICS now includes Brazil, Russia, India, China, South Africa, Ethiopia, Iran, & UAE; Germany is not a BRICS country.
  • 'GPT' in ChatGPT stands for Generative Pre-trained Transformer.
  • Blockchain technology enables cryptocurrencies like Bitcoin.
  • PhonePe with Yes Bank launched the first UPI-based payments app in India.
  • India’s first AI unicorn in 2024 was Krutrim, founded by Bhavish Aggarwal (Ola).

History & Theories of Entrepreneurship

  • The term "entrepreneur" is derived from French verb "entreprendre" (to undertake).
  • Richard Cantillon, an Irish economist, introduced the term entrepreneur, focusing on risk-taking.
  • Jean-Baptiste Say linked entrepreneurship with management.
  • Joseph Schumpeter emphasized entrepreneurship as driving innovation and “creative destruction.”
  • Invention is a slow, linear process; innovation is the sudden commercial application of inventions.
  • Schumpeter outlined five types of innovation:
    1. New product or variant, 2) New methods of production/sales, 3) Opening new markets, 4) New sources of raw materials, 5) New industry structures.

Key Distinctions

  • Entrepreneur: individual who creates a business and takes risks.
  • Entrepreneurship: process of creating/managing the business.
  • Small business owner is not necessarily an entrepreneur; entrepreneurs aim for innovation and scalable growth.

Innovation: Definitions & Types

  • Innovation: Introducing a new idea/product/process/service or improving an existing one to add value.
  • Types:
    • Product Innovation: e.g., iPhone, iPods, smart boards.
    • Service Innovation: e.g., YouTube, ChatGPT.
    • Process Innovation: e.g., robotics in manufacturing, drone delivery.
  • Innovation Management covers the full process from idea to market implementation.

Categories of Innovation

  • Disruptive Innovation: Launching a product/service that creates a new market or disrupts existing players (e.g., Tata Nano, Unacademy, Reliance Jio).
  • Radical Innovation: Significant technological breakthroughs creating new markets or industries (e.g., ChatGPT, UPI, WWW, Bitcoin).
  • Disruptive innovation can be low-end (targeting overlooked segments) or new-market (serving previously unserved customers).
  • Disruptive innovations can be copied; radical innovations are harder to imitate and provide longer competitive advantage.

Key Terms & Definitions

  • Entrepreneur — An individual who initiates, manages, and assumes the risks of a business.
  • Entrepreneurship — The process of designing, launching, and running a new business.
  • Creative Destruction — Schumpeter's term for the process where innovation leads to the demise of old products/businesses.
  • Disruptive Innovation — Innovation that creates a new market or disrupts an existing one.
  • Radical Innovation — Breakthrough innovations, often technology-driven, that create new industries.
  • UPI — Unified Payments Interface, real-time payment system in India.

Action Items / Next Steps

  • Join the suggested Telegram group and check the YouTube channel for the one-month strategy video.
  • Read business news, especially on new startups and recent IPOs.
  • Review the list of 2024 Indian unicorns (Krutrim, Ather Energy, Rapido, etc.).
  • Revise session notes before the next class and watch the strategy video.
  • Attend the next session to cover incremental and sustaining innovation, plus more Q&A.

Full transcript