Chances are that you already know the answer — successful entrepreneurship is impossible without creativity and its critical partner, innovation. Gone are the days when creativity was an attribute possessed by artists and innovation was linked to technological developments. Even though the two terms are often used interchangeably, the truth is that they are complementary to each other. When combined, the two can lead to positive results. Today, while innovation is at the heart of a growing economy, creativity enables it. No matter what business you are in, its long-term success demands a commitment to creativity that is realized through constant innovation. From tech giants like Apple to more recent entrepreneurial successes like AirBnB, each of us has enough examples that prove that while there are multiple important characteristics of an entrepreneurial mindset, it is creativity and innovation that form its foundation.

The Crucial Role of Creativity & Innovation in Entrepreneurship

To understand how creativity and innovation have become such indispensable entrepreneurial skills and what it really means, it is necessary to reflect on today’s global environment — the ever-changing climate, increasing globalization, new technologies, and rapidly shifting social, economic, and political dynamics. In this increasingly uncertain business landscape, creative thinking can be a powerful tool in turning challenges into opportunities. Identified as a process, it is synonymous with divergent thinking — a new way of looking at problems and discovering ‘out of the box’ solutions. Innovation, on the other hand, is the process that combines these creative ideas with knowledge, producing new value. Simply put, without innovation, a company, no matter how successful, can quickly become obsolete. From a business-health perspective, the two are essential for survival and long-term growth.

But, entrepreneurship is much more than starting a new business. It is an ongoing journey, a process whereby entrepreneurs tap into existing opportunities, develop new ideas, and shoulder the responsibility to empower themselves and society as a whole. This larger role played by entrepreneurs makes ingenuity and innovativeness absolutely critical.

Creative entrepreneurs not only push their own limits but also force large companies to do the same. Such entrepreneurial thinking challenges conventions by setting audacious goals and working towards achieving them. Using innovation as a weapon to battle crises, whether environmental or social, entrepreneurs have the ability to disrupt the status quo and enable real change.

Concluding Thoughts

Creativity and innovation play a much greater role in entrepreneurship than ensuring business success. In fact, it urges one to redefine the very idea of business success to include not just economic but environmental and social development. According to the findings of the special edition of the Creative Economy Report, creativity and innovation, at both the individual and group levels, have become the true wealth of nations in the 21st century. On World Creativity and Innovation Day, we, as business leaders, individuals, and collectives, must recognize the importance of new ideas in expanding opportunities and providing inclusive, sustainable, and long-term growth.