What is the first thing that comes to your mind when you hear the words “small business”? Most likely, you imagine a small kiosk selling all sorts of useful and not so trivial things, an inexpensive hairdressing salon without any frills, or, at worst, a freelance designer. But what small businesses do not fit in with is knowledge-intensive industries and innovative projects.
In fact, how can a tiny company with a dozen professionals on staff promote innovation in the country? They also require serious investments, both financial and intellectual. Innovation is something large-scale and comprehensive...By the way, what is hidden behind such a “fashionable” term today? You can hear it from almost every iron, but almost no one can give it a clear definition.
Some experts even believe that the very terms “innovation” or “innovative” today must be used with great caution. Many consumers, and even business representatives, have already developed a certain immunity to everything supposedly innovative. Many people associate these words with the banal bragging of so-called startups and a bad marketing strategy, but not with high-tech technologies. Therefore, do not rush to call any development at least somehow related to the IT sector innovative. You should see the difference between innovative developments or production and simply a technologized business.
The main features of innovation are novelty and direct relation to science.
It is difficult to unequivocally answer the question of whether a small business can be innovative, since the criteria for innovativeness themselves are very vague and subjective. However, many agree that small businesses today may well become both a “conductor” of innovation, actively mastering new technologies, and the direct creator of innovative products. The last thesis is proven by the experience of Western countries, where small businesses work quite successfully with innovation.
Innovation and small business with them and with us
The phrase “innovative small business” in Western, as well as in some Asian countries, no longer seems like an oxymoron. Thus, in Europe, the “conductor” of innovation is often small business, rather than large enterprises.
For example, in Germany there are hundreds of thousands of small and medium-sized engineering companies that operate together with giants: they produce individual parts for Daimler, BMW and Volkswagen cars or electronics for Siemens. These same companies single-handedly bring to market projects in the fields of IT, biotechnology, etc. and often have serious weight in one industry or another.
A similar picture is observed in other European countries. Just ten years ago, small firms in Finland, Denmark and Ireland were much more likely to promote innovation than their counterparts - medium and large enterprises
The reason is simple: in Europe since the 1970s. Active work is underway to support innovative business activities.
In Germany, as well as in Britain, entrepreneurship is taught from school, and newcomers who set their sights on innovation are actively advised for free.
Japan has achieved no less success in developing innovative small businesses. Here, a special emphasis was placed on the so-called culture of entrepreneurship, which is promoted through the creation of optional “quality circles” at enterprises. Within these circles, employees identify problems related to production efficiency and product quality, and look for ways to solve these problems.
In the last decade, much attention has been paid to innovation in China, where two long-term programs for the development of entrepreneurship have been running since 2003. Over 13 years, together they increased the share of small businesses in the country's economy to 60% and made them the main engine of innovation.
In Russia, a completely different situation is currently observed: more than 60% of our small businesses are engaged in trade, and more precisely, in the resale of imported goods. But in terms of innovation, Russian small businesses lag significantly behind their foreign colleagues, according to data from the National Institute for Systematic Research of Entrepreneurship Problems (NISIPP). Moreover, most often, Russian enterprises are prevented from introducing innovations at home and carrying out innovative activities themselves by lack of funding, low qualifications of personnel and a narrow market for products.
True, the Russian government has finally thought about how to solve at least some of these problems and encourage small businesses to work in the innovative niche. On January 1, 2016, several documents related to SMEs came into force:
Law on an annual increase of 5% in the costs of state-owned companies for the purchase of innovations,
The list of companies that are required to purchase innovations from small businesses is
A document obliging the inclusion in the procurement plan of innovative and high-tech products, including those produced by small businesses,
Regulations on the procurement of innovations, which companies will regulate their procurement activities
Sergey Fakhretdinov
Head of the Business Russia Committee for the development of interaction between business and state-owned companies
Undoubtedly, these measures to support manufacturing small and medium-sized businesses will “untie their hands” and open up new opportunities for entrepreneurs. Our task now is to ensure that all the provided measures are implemented not only on paper, but also in practice.
According to the Ministry of Economic Development, in 2015 state-owned companies purchased approximately 1-2% of innovations. State-owned companies, where the purchase of innovations is several times higher, for example, JSC Russian Railways, PJSC Rostelecom, will require additional efforts in inviting SMEs to work.
A clear strategy of action can contribute to the procurement procedure for innovations and high-tech products, and the business community is ready to participate in the development and further implementation of it.
However, in practice, small businesses may have problems purchasing innovations. Some state corporations purchase products that small businesses do not produce at all.
In addition, participants in tenders through which state-owned companies make purchases are subject to fairly stringent requirements: non-zero quarterly reporting, a period of work of at least three years, etc. Not every tech startup can boast of meeting these criteria. And the economic rationale in this matter is strong: the tenderer must transfer to the customer 5% of the order amount, and in case of victory, another 30% as a guarantee of fulfillment of all terms of the agreement. For these reasons, small businesses do not actively seek to sell innovations to state-owned companies. By the way, the latter are also not eager to purchase innovative products from anyone.
Vladimir Knyazhitsky
General Director of Fast Lane Group of Companies in Russia and the CIS
Large and medium-sized businesses do not actively introduce innovations, because often it is simply not profitable for them. In order not to be unfounded, I will give an example. Let's take such an innovative product as cloud accounting.
Medium and large businesses, in fact, do not need this development. For them, the volume of services is not large, but the difficulty of transferring to a new product is great. In addition, there is often a lack of trust in this very product. It is more difficult for large companies to change established processes, and the risks of failures at the time of introducing a solution are always huge.
Do small businesses need innovation?
But in small businesses the situation is diametrically opposite: it is both easier and more profitable for them to introduce new innovative solutions. But do small businesses really need innovation?
Nikolay Kalmykov
As shown by surveys in 2014-2015 in Moscow, in which more than 10 thousand enterprise managers took part, it was at a difficult moment that many managers stated that, along with optimizing their activities, they planned to take a closer look at new technologies and engage in technological re-equipment. This applies primarily to those whose business is related to production.
This shows that innovations, at a minimum, are in demand during a crisis, and at a maximum, they lay the foundation for the future economic development of the country, allow you to do business more efficiently, reduce costs and efforts, providing the necessary level of service and communications with clients.
At the same time, innovations must solve specific problems. For example, simplifying registration with the tax office and organizing a cash register, monitoring the work of employees with clients, etc. These are exactly the things without which it is much more difficult to run a business today.
So, innovative developments are much more needed by small enterprises, rather than by large concerns. The latter are too slow to introduce new products, and often have little interest in this.
And the majority of innovative products for small businesses can again be produced by other small businesses. The main thing is to identify the needs of your colleagues in the shop and offer them a project, which most often does not require such large investments at the start.
What is in demand?
An indisputable fact: innovation is different from innovation. Not all advanced technologies are in demand by small or large businesses or private clients; not all of them can be used to create your own enterprise. For example, 3D printing has been on the list of promising technologies for several years now, but products printed in this way are not yet very widespread.
It is worth noting that different experts and authoritative sources call different market niches, one way or another related to innovation, promising. For example, the publication “General Director”, based on research data from international consulting companies and an analytical center under the government of the Russian Federation, included the following industries among the most promising:
Mobile payments
Internet of Things
Massive online courses
Wearable electronics (“smart” watches, fitness bracelets, etc.)
3D printing
- “Smart” materials
But the authoritative American business portal Inc.com included among the most promising areas the production of drones, artificial intelligence, everything related to virtual reality, innovative production and analysis of food products, the creation of environmentally friendly building materials, etc.
The British source Startups.co.uk suggests focusing on the development of fitness devices, educational applications, platforms for booking venues for events and various inexpensive smart home systems. But where do Russian entrepreneurs see the future?
1. A high-quality website, where the main criterion for its quality is the ability to sell. I often have to audit externally beautiful websites that are originally designed, but do not help sell the service at all.
2. Creation and proper promotion of mobile applications.
4. Cloud accounting services.
5. Corporate cloud document management services.
6. Effective telephony with a cloud number and cloud PBX.
In a word, if you are driven by the desire to start an innovative business at any cost, you can take a closer look at one of the areas indicated above. At the same time, it is worth developing exactly the kind of product that would be in demand from other small companies. This, in this case, is perhaps the most grateful audience. But projects aimed at state-owned companies or individuals should be launched with caution, since this target audience has very little demand. Of course, a funny invention like a robot drinking buddy will cause delight, but few people will want to buy it in the next 20 years.
In the big geopolitical game, in the center of which is the race of technologies, the winner is not the one who controls space, but the one who lives by the slogan “The future is today!” National security and priority positions in world markets depend on the possession of basic and critical technologies that force us to reconsider values - they are inextricably linked with leading to the dramatic development of society.
In the business of the 21st century, innovative ideas have become a trend: new projects, tasks, research leading to unprecedented sources of income.
Innovation is a set of innovations in the field of engineering, technology, management or labor organization based on scientific achievements. In other words, this is a set of ideas that are an innovative product of the mental activity of both highly qualified specialists and people with liberated, open-minded thinking.
When an idea, as a mental prototype of an object, phenomenon, or action, begins to influence the technological development of society, it becomes innovative. Its implementation ensures qualitative and quantitative growth of production, business process or the creation of a new industry/service. A project like this is worth investing time and money into.
An innovative idea can become the seed or catalyst of a breakthrough project with global market potential. Such projects reorganize or close old ones and create new markets for products with extremely high added value. They foster innovative thinking in society, overcoming the insensitivity of the majority of the population to the rapid pace of progress.
Such a point of growth at one time was the “explosion” of startups in the Stanford Industrial Park, located in Silicon Valley. The embryo turned out to be a group of employees at Shokley Semiconductor, founded by the inventor of the transistor, William Shockley. They laid the foundation for their unique developments in the electronics company Fairchild, which, in turn, founded a number of powerful companies. A “snowball” of newly formed firms led to an avalanche-like emergence and spread of information technologies. It was the 65 new businesses born of eight former Shockley employees that formed the basis of Silicon Valley. Such hubs of innovation are now emerging all over the world.
Business incubators are also sources of innovative ideas: their goal is to transform generated knowledge into applied results that stimulate economic growth.
An innovative idea as an expression of individuality
A significant point in the development of technology was the creation and distribution of 3D printers, which make it possible to copy and recreate any thing, even parts of the human body. A tempting and at the same time frightening possibility of total copying has appeared.
But each person is unique, and therefore strives to create something new, unique, special. The 21st century is outgrowing the era of imitation and entering the competition for originality, so technology ceases to be only an applied sphere: it becomes a source of non-standard ideas and revolutionary technologies.
Vivid examples in terms of originality are Apple, Tesla Motors and Uber. Thus, the introduction of Macbooks, iPods, iPads, and iPhones raised Apple’s value from $2 billion in 1997 to $850 billion in 2017.
The development of an aesthetic and highly efficient electric car made it possible to create the Tesla company in 2003, whose turnover in 2016 was 7 billion, and its assets reached 23 billion. In 12 years, Tesla has grown to half the value of General Motors, founded in 1908.
The idea of a five-minute taxi ride turned Uber into a $50 billion company in six years.
Sources and foundations of innovative ideas
Influential 20th-century management theorist Peter F. Drucker identified the following sources of innovation:
- Changes in the external environment, structure and needs of production and markets;
- Demographic changes, both local and global;
- Human perception of needs, meaning of life;
- Critical accumulation of new knowledge, leading to a qualitative leap.
The linear innovation model divides all innovations into two groups:
- Manufacturer innovation - here a person or business introduces something new to sell the innovation; this is the level of scientific research on;
- End-user innovation – where developments aim to create new products that meet changing needs.
In general, as noted by the famous roboticist Joseph F. Engelberger, it stands on three pillars:
- Recognized need;
- Qualified personnel with appropriate technology;
- Financial support.
The main generators of technical ideas are an engineer-inventor and a research physicist. Their activities are diverse: if one is able to create a new device from ready-made elements of knowledge, then the second questions the elements themselves and changes parts of the picture of the world.
From a technical idea, it becomes innovative when it is brought to industrial use and makes a profit. Therefore, the author must keep the following three points in mind:
- The value of an idea grows as it is commercialized and introduced to markets: the larger they are, the higher the cost of the idea itself;
- The risky cost of implementation falls on the shoulders of the financier.
- The author's royalty depends on the form of business and the size of the market.
So, let's list the factors that contribute to the emergence of innovation:
- Consumer demand and market needs;
- Competition, struggle for maximum profit;
- Image creation;
- Solving problems that arise during business activities;
- Desire to develop and implement knowledge;
- Reorganization: the company sacrifices the core of its business for the sake of a new “cash calf”;
- Scientific discoveries and knowledge transfer.
Intuition or orderliness: what methods of searching for innovative ideas include
It is a common belief that new discoveries in business happen by chance: you just need to constantly be on the lookout. Of course, intuition is a great help in choosing and analyzing a suitable idea, but not everyone has it.
How to conduct activities to search for the necessary innovations rationally? Here are the most well-known techniques for orderly searching for ideas.
- Improvement of the prototype. The shortcomings of existing models are identified and ways to eliminate these shortcomings are sought.
- Brainstorming. A group of people conducts a multidimensional analysis of the problem and generates a stream of thoughts and ideas, not shying away from the most fantastic solutions: criticism is prohibited here. As a result, the chances of finding the right approach increase.
- Synectics. This is a collective motivated intellectual activity of a permanent group of specialists with a strong leader. It is an improved method of brainstorming in which criticism is allowed.
- Eliminating deadlock situations using non-traditional methods, going beyond the limits of knowledge, accumulated experience and traditions. Often this method leads to the creation of new theories that are in conflict with the existing picture of the world.
- Creation of morphological maps by a qualified group of developers, expanding the search area for a solution to the problem.
Innovative ideas as a base for startups: successfully implemented innovations
The main condition for finding an idea for a business is to move away from cliches and traditions. You cannot be hostage to one single business development strategy, even if it is the one that led to success.
An example of breaking the mold is the creation of a museum of the future in Dubai, in which robotic developments are visualized. Visitors interactively explore the fantastic possibilities of artificial intelligence and try to interact with robots. This liberates the thoughts of ordinary people, accustoming them to accept technological innovations. However, “designers of the future” no longer make money from technologies, but only from the ideas of these technologies.
Of course, there are truly breakthrough ideas, the implementation of which will lead to a qualitative technological leap and the creation of new markets. Let's list some of them.
- Great hopes are placed on voice platforms Alexa, Siri, etc.: they are seen as the technologies of the future. But whether a monopoly product will be created, whether the investment will pay off, whether consumers will believe in it or not - all this remains in question.
- 15 years ago, Skype became a landmark technology - the software that created free video communication throughout the world. Of course, then the prototype was improved - almost every country developed its own video messenger.
- Google experts are proclaiming an imminent breakthrough in the field of quantum computers, which will be able to make quantum samples in parallel mode. This will speed up problem solving by orders of magnitude compared to von Neumann computers.
- Based on machine learning technologies, Cambridge Consultants taught garbage cans to sort waste by type of origin using computer vision. Similar software for recognizing the type of garbage can be installed in smartphones.
- A startup from Britain, Grid Edge, has created a service that allows you to optimize energy costs by 25% using AI and cloud technologies.
- Startup Ecova (Retroficiency) has released an intelligent energy management platform that has saved 6 terawatt hours globally.
- MIT researchers have created optical materials that are only two atomic layers thick. An LED made from such a fiber can simultaneously serve as a photodetector. As a result of the use of such materials, power consumption is reduced and communication speed is increased. Silicon photonics will advance computer technology to new levels.
- A breakthrough in the development of photonic technologies for optical integrated circuits was made by Harvard scientists who developed a waveguide with a refractive index equal to zero.
- A compelling example of the use of scientific thought in a major technology industry is unmanned aircraft. Israel has become a monopolist in it - it supplies 41% of all drones to more than 50 countries.
But pioneering developments and implementations sometimes turn out to be prohibitively risky and expensive.
Thus, the Belarusian startup “Quantum Batteries” based on BSUIR, which is the owner of unique priority developments for the creation of solid-state batteries, still cannot find funding. They contain new principles for storing electrical energy in dielectrics, cheap and environmentally friendly materials such as aluminum oxides. The revolutionary approach is based on the use of paired electrons in a nanostructured dielectric to accumulate electricity. This is fundamentally different from the movement of ions in the electrolyte in lithium batteries.
The American startup “All-electron battery” from Stanford University and the Japanese startup “Battenice” Guala Technology are working on the same problem. The Japanese are already on the path to creating technology for mass production of solid-state batteries, and Quantum Scape Corp. attracted additional resources from Volkswagen.
At this time, the Belarusian startup, although it won the international open innovation competition InnoCentive, remained at the research stage - but it could lead to a green energy revolution!
A technical idea that has not progressed to the innovation stage is the discovery of “hot” superconductivity, which makes it possible to create powerful magnetic fields up to 10 Tesla at room temperatures (US Patent No. 6,570,224 B1), and therefore to develop neurocomputers, transmit electricity without losses, create new types of flying transport (WO 2008087496 A2 Magnetic levitation rope transport system).
Of course, a favorable business environment is necessary to implement ideas. For Elon Musk, who is changing the world before our eyes, the external environment in the form of the state initially helps to cultivate private initiative. His ideas become the basis of a pyramid of global business projects.
We have yet to create an economy that will generate and implement knowledge-intensive innovative ideas.
The business world cannot keep up with the development of technology. Accordingly, in this process new innovative business ideas appear, which, in turn, have their own life cycle. The result of all this is the appearance of a new product on the market if the idea was successful. The concept of innovation includes everything that is improved, transformed into a new one or invented. Moreover, today this can apply to any industry, including business.
Initially, such a term was born in science and industry, but later, due to the modern way of life, in which interaction and interpenetration increasingly covers various spheres of human activity, it also became a business term. The search for new ideas and their implementation is called innovation activity. It would seem that since everything has already been invented, then where do they come from?
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Why innovation is needed
In fact, there is always something that needs to be improved in the world, and the conditions for innovative ideas to be born appear in society constantly. However, they often go unnoticed due to the fact that there is simply no interest in them, because not every entrepreneur has unlimited resources and the desire to waste time waiting. The implementation of an innovative idea or project requires its own deadlines, and the market effect may not occur quickly. Because of this, many are afraid of innovations and prefer ordinary, proven and already working business projects.
In reality, this judgment of entrepreneurs is not always correct. If it were not for innovative ideas, which, by the way, even influence the course of history, then there would be no socio-economic development of the state as a whole.
Having realized that innovation is closely related to scientific and technological progress, which significantly affects any production, improving both productivity and quality through improved means, most people from the business sector began to treat this differently and came to the conclusion: in our time, It is not enough for capital to simply put in labor. The more creative a businessman’s thinking is, the more his innovative ideas can bring more returns, and therefore he must also engage in intellectual activity.
Thus, any entrepreneur is faced with the question of how to independently learn to find and implement innovative solutions. Very rarely, successful ideas are born as a result of a brilliant insight, and, as a rule, innovation is the result of intellectual work, a conscious and purposeful search for new solutions. There are key sources where ideas come from that will help every entrepreneur look at their business in a new way.
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Seven Innovative Steps to Business Success
The first is an unexpected event. This concept includes both success and failure, and what is happening around. That is, thanks to some incident, innovative ideas can be spontaneously born. The main thing at this moment for management is to consider possible prospects and implement them. Success will depend on the competence of the management team, as well as on its lack of a narrow worldview.
Of course, any changes in business are always risky, but the whole business is built on the basis of risk. Experienced entrepreneurs can even discern hidden innovative opportunities in unexpected failures that, for example, will increase profits or push the enterprise to a higher level of development.
The second is any discrepancy between what is and what should be. This concept includes any dissonance in economic indicators, various discrepancies between the present and concepts about it, as well as inconsistencies between consumer priorities and entrepreneurs’ ideas about them. They, as a rule, do not appear in reports in the form of numbers that managers receive, that is, they contain more qualitative than quantitative aspects.
The third is the need of the production process. In this case, innovative ideas are not born from any events, but the reason for their emergence may be the need to improve an already existing process. For example, replacing even one weak link will rebuild the old into a new one that will meet modern needs. To do this, you need to understand the essence of things, and not change anything intuitively. In this case, the solution must correspond to the values of potential consumers.
Fourth - structural changes in the market or in any industry. For example, if an industry is experiencing rapid growth that is outpacing population size, then there is a high probability that its structure will change. The reason may be that in the process of doubling production, the industry will rapidly become obsolete, and it will cease to adequately respond to what is happening. All this will be a powerful impetus for the search for innovative solutions.
Fifth - demographic factors. They play an equally important role in the birth of new ideas. Although until today we thought that this was the most predictable segment, in fact its indicators can change rapidly, and therefore it is impossible not to pay attention to such important aspects. Thus, with a careful systematic analysis of factors such as population size, its age structure, level of education and income of people, the entrepreneur will have a highly productive and highly reliable source of innovation.
Sixth, various changes in values and perceptions. These phenomena cannot be explained from an economic point of view, since any such changes are a consequence of the passage of time. They can be used as a source, but implementation based on this innovation will need to be consistently and narrowly focused, taking into account the fact that in this case it will also be necessary to accurately calculate the timing.
Innovative business ideas allow entrepreneurs to occupy a free niche in the modern market of goods and services and create a profitable enterprise with good prospects.
Before introducing innovative business ideas, it is necessary to calculate the possible risks. According to investors' estimates, only 30-35% of projects generate income. But the profit received from successful ideas is so high that it pays off all other costs. If even experienced investors cannot guarantee the success of a particular idea, what should a beginner who wants to create his own business do?
A good solution is the modernization and new design solution of goods and services already existing on the market. Updating and improving old products is perceived by the average person as a new trend or innovation. There are many examples when the “well-forgotten old” came into fashion in a completely new design or with a set of additional functions.
- The selfie stick, invented in 1925, patented in a completely new design in the eighties of the last century, and only today has become a popular product.
- Touchscreen phones, thought to be the work of Steve Jobs, were actually released in 1992 by IBM. The screen itself was invented in 1965.
- Google Glass “augmented reality” glasses are a prototype of a device manufactured in 1961.
These and many more examples can serve as good tips for budding entrepreneurs. But such developments require serious financial investments and a fairly long period of implementation on the market. A pressing question immediately arises: what innovative ideas for small businesses can be used in a crisis, when a newcomer does not have start-up capital and at the same time expects to receive a good profit in a very short time?
Innovation in production: franchise business
Innovative business ideas in manufacturing usually require significant investment. But don't be upset. For beginners, there is an excellent opportunity to organize their own enterprise by purchasing a franchise of a well-known brand. By the way, recently the cost of franchises has noticeably decreased, and many offers have appeared from Russian companies that inspire more confidence among the population.
For example, AltaiStroyMash, a company whose activity is, offers: a wide selection of production options, certified equipment and several ready-made business plans for only 60,000 rubles. The payback period for a franchise business is 1-2 months.
3D photo coming to life is a new business idea in the field of photography. The scale of the target audience is limitless, because many people, regardless of age, want to have a bright, lively photograph. The manufacturer of equipment for the 3D photo studio is DanceHeads, which has developed and patented its invention. Working as a franchise, an entrepreneur will be able to receive up to 1,000,000 rubles from one studio. per year of net profit.
Advertising and promotion: new technologies
The best innovative business ideas in 2016 take into account the situation in the economy: lack of finance and decline in sales. One of such projects in Russia is blikfang - an advertising promotion channel that is used daily by more than 300,000 advertisers. Through blifcang, commercials are broadcast in shopping and entertainment centers, train stations and airports, hotels and other high-traffic establishments.
It’s very easy to make money with blifcang: install it in a public place and broadcast commercials for 24 hours for 2000-3000 rubles. Advertisers will be happy to use such a service, and the owner will only have to make a profit.
A blifcang costs about 70,000 rubles. Net profit will be from 50,000 rubles. per month. In just 1-3 months the investment will pay off in full. A creative marketing technique will allow you to easily and quickly make money with minimal investment at the start.
New business ideas
When choosing innovative ideas for business from scratch, you should rely on the population’s need for a particular product.
Even during a crisis, people's basic needs remain the same:
- food products: bread, meat, vegetables, oil and others;
- beauty and health: medicines, clinics, sports and cosmetic products and services;
- clothing and shoes;
- education;
- safety;
- transport;
- finance;
- other.
Almost every idea can be modernized and presented in a new form to the buyer.
For example, beauty salons, gyms, game rooms can become mobile and come to the client. A gym on wheels can be located at a certain time in the most convenient place for the client. Employees of offices, manufacturing and industrial enterprises, shopping and entertainment centers will be glad to have the opportunity to exercise for an hour or two, saving time on the way to the fitness center. This applies to hairdressers, baths and hot food outlets.
Each business idea will find its client. It is important to remember that the world is constantly improving, and people are interested in everything new and unusual.
The concept of “small business” can extend beyond kiosks and small service establishments. Despite the fact that businessmen are not used to investing in scientific development, innovation can be an excellent way to increase their own capital. In this article we will talk about innovative small business ideas that can be implemented in Russia.
Innovative small businesses in different countries
To understand how developed innovation is in a particular state, we propose to consider several major powers from this point of view. How small businesses are organized in different parts of the world:
1. In Germany and other European countries, there are a lot of small companies that are engaged in innovation together with large corporations. They manufacture individual parts or bring their own designs to market. Small firms take the initiative and create new products. After the products go on sale, small businesses can count on the support of the “parent” corporation. The reason for this success is simple: states actively support start-up entrepreneurs and create the most favorable conditions for their development.
2. In China, small organizations are considered the main source of innovation. A special culture of entrepreneurship makes it possible to improve labor productivity, reduce the number of defective goods and create new products. Since 2003, the Chinese government has established two long-term programs to help start-up entrepreneurs. Thanks to this, the share of small businesses in the state economy exceeded 60%.
3. Small business industries in Russia are not developing so rapidly. Most of the companies are engaged in trade, or more precisely, in the resale of imported goods. Innovative technologies are used extremely rarely within small enterprises. There is not enough investment and professional personnel to create a new product. The narrow market for products and low demand for high-tech goods also plays a role. Entrepreneurs are afraid to invest their savings in innovations, because it is unknown how the population will react to the appearance of this product.
Is innovation necessary for highly profitable small businesses in Russia?
Surveys among managers of enterprises of various sizes confirmed that optimization of work reduces the cost of production and allows significant savings on its production. Innovation not only improves the company's performance, but also lays a good foundation for the development of the country. The creation of innovations improves the lives of the population and raises the overall standard of living.
At the same time, experts argue that innovations should be aimed at solving specific problems. A product that will satisfy the needs of the population or simplify their life will always be in demand.
Small enterprises are most interested in introducing new products to the market. Thanks to innovation, even a small company can quickly gain popularity and earn a decent income.
Ideas for organizing a profitable small business in Russia
It is necessary to understand that not every innovation will be in demand among the population and will generate income. To organize a truly profitable business, you need to study consumer demand and sensibly assess your capabilities to meet it. Below are real business projects that a small business entrepreneur can successfully implement:
1. Robot gardener. A unique device allows you to forget about weeds and small pests. The smart machine independently destroys everything that interferes with the proper growth and development of agricultural crops. No human intervention is required; the robot performs its task itself throughout the day. The car is charged using solar panels and in most cases does not require additional maintenance.
2. Service for space planning. Free online resources for planning renovations are far from ideal. They do not reflect the design intent well and give only a rough idea of what awaits a person in the future. Creating a full-fledged website on which people can realize their ideas will certainly attract customers. A huge selection of furniture and decoration for rooms will delight visitors, and a professional consultant will tell you how best to arrange your home.
3. Rain rooms as a business originated in China. Numerous attractions have already opened throughout the country, thanks to which people can enter a room with an impromptu downpour and not even get wet. This service helps relieve stress and relax, and is in great demand among both children and adults.
4. An unmanned mobile store can be a simple and profitable source of income. Mobile retail outlets are already in demand in China. Sooner or later, the trend will reach Russia. A mobile store is an automatically controlled mobile kiosk. It can distribute food throughout the city or serve as a mini-supermarket. Payment takes place via bank cards, buyers can purchase the necessary products or place an order.
5. The smart fitting room mirror was invented by Labs. The gadget is installed in booths of branded clothing stores. It allows you to look at yourself under different types of lighting, add accessories to your outfit and instantly pay for your purchase. This eliminates the need to hire a large staff of service personnel and makes life much easier for both the buyer and the owner of the store chain.
When choosing an idea for your business, pay attention to the demand in the region. The best option would be to conduct a social survey about the desire to use this or that product. After a competent market analysis, the entrepreneur will be able to engage in the most promising activities.
In this video you will see several ideas for starting a business.
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