Why Entrepreneurs Must Be Change-Makers

What makes entrepreneurs innovative? It’s a question that cuts to the heart of what separates true entrepreneurship from mere business ownership. Innovation is more than a buzzword, it’s the action that transforms creativity into real-world impact. It appears in mission statements, headlines, and sales decks so frequently, in fact, that we risk forgetting what it actually means.

Are you really innovating or just improving what already exists?

It’s a confronting question. But for anyone calling themselves an entrepreneur, it’s an essential one.

In today’s fast-moving world, efficiency isn’t enough. Streamlining a process or refining a product is worthwhile, but it doesn’t qualify as true entrepreneurship. Innovation is what sets real entrepreneurs apart, it’s what defines their contribution and justifies their risk.

From Creativity to Innovation

Understanding what makes entrepreneurs innovative begins with recognising the difference between creativity and innovation.

“Creativity is the process through which new and useful ideas are generated.”
— Dawson & Andriopoulos, 2017, p. 45

Creativity is foundational, but it’s only the beginning.

It’s the idea. The spark. The “what if?” moment.

But creativity alone won’t build a business. What entrepreneurs must do—what distinguishes them—is take those ideas and make them real. They must build, test, refine, and launch. This is innovation.

“Innovation entails the implementation of the results of creative idea generation and exploration.”
— Sarooghi et al., 2015, p. 714

That implementation process is what separates thinkers from doers. From doodled napkins to delivered products, innovation is the entrepreneur’s job.

Entrepreneurs as Masters of Change

Drucker’s work helps explain what makes entrepreneurs innovative over time—they don’t just respond to change, they create it. In Innovation and Entrepreneurship, Peter Drucker described entrepreneurs as change-makers:

“Above all [entrepreneurship] needs to be based on purposeful innovation.”
— Drucker, 1985, p. 29

He didn’t mean gimmicks or invention for its own sake. He meant innovation that solves problems, creates value, or introduces new ways of working. Entrepreneurs don’t just keep pace with change—they lead it.

Rosabeth Moss Kanter, writing in The Change Masters, describes effective entrepreneurs as people who “know what to keep and where to newly create.” That strategic insight—knowing what to protect and what to disrupt—is rare. But it’s vital.

“Entrepreneurs are the masters of change in their organisation and industry.”
— Galagan, 1984

The Idea Journey

Innovation rarely arrives in a flash of brilliance. It moves through a structured process, one explored in the research of Perry-Smith & Mannucci (2017), who outline the Idea Journey:

1. Generation – An idea emerges from creative exploration.
2. Elaboration – The idea is tested, refined, and expanded.
3. Championing – The innovator gains support, resources, and allies.
4. Implementation – The idea is turned into a tangible product, process, or experience.

“Creativity is a process of ideas. Innovation entails the implementation.”
— Perry-Smith & Mannucci, 2017; Sarooghi et al., 2015

Many people stop at the first or second stage. Entrepreneurs go all the way.

From Good to Great: What Makes Entrepreneurs Innovative Beyond Improvement

Not innovating has consequences. It leads to stagnation, irrelevance, and decline.

Westhead & Wright (2013) say it clearly:

“Radical innovation is seen as a prerequisite for genuine entrepreneurship.”
— Westhead & Wright, 2013, p. 23

Companies that merely copy others, avoid risk, and follow trends will always trail behind. They are not entrepreneurial and they will never lead.

Even those with large R&D budgets are not immune. Acs & Audretsch (1988) found that:

“Innovative output increases with industry R&D expenditures at a less than proportional rate.”
— Acs & Audretsch, 1988, p. 679

In other words, money alone won’t make you innovative. Vision, leadership, and execution will.

Innovation Is a Discipline, Not a Department

Too often, organisations treat innovation as a department. A silo. A one-off sprint.

But innovation is a discipline. A habit. A mindset that’s embedded in every function and every decision.

Innovation happens when:

• A software company realises its data tools could also improve food security.
• A plant breeder cross-applies genomic analysis to environmental stress prediction.
• A small company rethinks customer onboarding, not with more tech, but with more empathy.

“Leaders must make innovation and entrepreneurship a normal, ongoing, everyday activity.”
— Drucker, 1985, p. 255

Innovation is not reserved for startups or tech giants. It belongs to anyone with the courage to build what doesn’t yet exist—and share it with the world.

Closing Challenge

Innovation doesn’t happen by accident. It’s not just for the visionary or the elite. It’s for those who are willing to take a risk—on an idea, on themselves, and on the future.

So let me ask again:

Are you innovating—or just improving?

The future belongs to the innovators.

So next time you reflect on your business, ask not just whether you’re improving, but what makes you innovative as an entrepreneur.

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Coming Soon: Part 3

🧠 Born or Made? Debunking the Entrepreneurial Myth
Are entrepreneurs born with something special or can anyone become one? In Part 3 of the series, we’ll explore what the research says about personality traits, adversity, and motivation, and how entrepreneurial thinking can be learned, nurtured, and applied, even within existing organisations.

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Also in this series

🧠 Post 1 – What Really Makes an Entrepreneur?
Redefining the word everyone uses, but few understand. This post explores how innovation, risk, and value creation define true entrepreneurship.
👉 Read it here

🧠 Post 2 – Innovation at the Core
Why innovation isn’t optional for entrepreneurs; and how it separates change-makers from managers.
👉 This Article

🧠 Post 3 – Born or Made?
Debunking the myth of the “natural entrepreneur” and exploring the traits, experiences, and motivations that shape entrepreneurial success.
👉 Coming Soon

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📚 References – Part 2: Innovation at the Core

• Acs, Z. J., & Audretsch, D. B. (1988). Innovation in Large and Small Firms: An Empirical Analysis. The American Economic Review, 78(4), 678–690.
• Bessant, J., & Tidd, J. (2019). Innovation and Entrepreneurship (3rd ed.). Wiley.
• Dawson, P., & Andriopoulos, C. (2017). Managing Change, Creativity and Innovation (3rd ed.). Sage.
• Drucker, P. F. (1985). Innovation and Entrepreneurship. Harper & Row.
• Galagan, P. A. (1984). Entrepreneurship: The New Career. Training & Development Journal, 38(4), 58–62.
• Kanter, R. M. (1983). The Change Masters. Simon & Schuster.
• Perry-Smith, J. E., & Mannucci, P. V. (2017). From Creativity to Innovation: The Social Network Drivers of the Four Phases of the Idea Journey. Academy of Management Review, 42(1), 53–79.
• Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the Relationship Between Creativity and Innovation: A Meta-Analysis of Organizational, Cultural, and Environmental Factors. Journal of Business Venturing, 30(5), 714–731.
• Westhead, P., & Wright, M. (2013). Entrepreneurship: A Very Short Introduction. Oxford University Press.