1. Define innovation as constructed by Victor Thompson.

“Innovation” is derived from the Latin verb innovare, which means to renew. It is taking
something that is existing and applying changes to it to form a new product or services.
Innovation is defined by Victor Thompson as the “Generation, acceptance, and implementation of
new ideas, processes, products or services.” Generation refers to the process of discovering, creating,
producing, or manufacturing something new. This is the result of curiosity, a keen intellect, or
perhaps just luck (serendipity). Additionally, innovation is acceptance. Accepting the concept,
goods or service that is being developed on the part of the users or customers. At this stage,
newly developed products have been widely made available to the public and are prepared for
use or consumption by all.
The final step is implementation. After it was created and gained widespread acceptance, the
new innovation was put to use for its intended purpose. Then, we use these technologies to help
us, reduce our workloads, or make difficult tasks simpler.
To put it simply, innovation is the pursuit and development of novel concepts. Whatever the
source—curiosity, serendipity, or the work of bright minds—what matters is that it be useful and
significant to the general public.
2. What requirements are to be met for business innovation to be successful?
One of a business's primary resources for adapting to the constantly changing
world is innovation. While innovation is necessary for businesses to remain
competitive, success is not necessarily ensured by it. But in order for corporate
innovation to succeed, it typically needs a mix of these elements: innovation on
products and services, business model or processes, leadership, and support of
government and other public sector.
Since the world we live in is always changing and technological developments are readily
apparent, innovation in goods and services is crucial. For goods and services to be relevant, they
must satisfy the demands of the general public. To remain competitive in the market, a company
may continuously innovate or enhance its goods and services. We are highly susceptible to
unfamiliar things, and we frequently find ourselves in awe of new products. Everyone is
undoubtedly aware of new products when they hit the market, as was the case with Apple's
iPhone 15.
To succeed, businesses might also examine themselves. A particular company needs to
foster a culture of cooperation and communication. New ideas will undoubtedly arise when
everyone is sharing, conscious of their roles, and receptive to criticism and conversation. Your
company will probably succeed in an industry with this kind of climate. Furthermore, leadership
is crucial since this atmosphere can only be operated in when someone takes the initiative. A
specific business is blessed to have someone who consistently turns ideas into reality and
motivates staff to work harder. Your firm is undoubtedly in good hands for growth and success
when its leader is willing to take calculated risks and is receptive to new ideas and innovation in
the industry.
Support from the public sector, including the government, is also considered crucial. In
the Philippines, we are lacking in this area. Though we have many smart minds in our country,
for some reason creativity eludes us. If our government only provided full financing for studies
that showed promise, rather than limiting research and technical breakthroughs, our innovations
would undoubtedly be able to compete on a global scale.
All things taken into account, in order to attain the success we have always desired, we
require the combinations of all the previously mentioned variables. Companies can also look at
other relevant elements for themselves. Success can be attained in numerous ways, just as there
are numerous methods to kill a cat. Investigate, create, take a chance, and take charge.

3. When can a product be termed disruptive innovation?

Disruptive innovation is a process where a small company with fewer resources
successfully takes on an established incumbent business. It is an innovation that simplifies
and makes more affordable products and services to undesirable or ignored markets.
A product can be termed disruptive innovation when it is introduced in an establish
industry and performs better or cost less than existing offering. This product or services may
overpower or possibly displace the existing one.

The Internet altered several industries' paradigms, which resulted in a boom of disruptive
innovation. Disruptive innovation has been greatly accelerated by the development of the
internet, which has radically changed several industries and upended conventional wisdom. E-
commerce, social media, the sharing economy, online travel reservations, financial technology,
and educational technology are a few instances of it.
Businesses must comprehend disruptive innovation and adjust to it if they want to remain
competitive and sensitive to shifting market conditions. Businesses that don't identify and react
to disruptive forces in their sectors run the danger of becoming irrelevant and losing market
share.

4. What makes any business venture successful?

A successful business venture is the outcome of multiple elements cooperating to accomplish

a shared objective. What makes any entrepreneurial venture successful is that it has something of
value to offer to a client. What makes it effective is meeting consumer wants, creating jobs,
promoting economic activity, and having an influence on other entrepreneurial endeavors.
A strong vision and purpose is another essential component that makes a firm successful.
While a mission statement specifies the precise goals and tactics to be followed, a well-defined
vision offers guidance and purpose. This clarity guarantees that all efforts are directed toward a
single goal and aids in guiding decision-making. Another crucial element of a profitable business
venture is an excellent business plan. An expertly written business plan outlines the goals of the
organization, the target market, a competitive analysis, marketing strategies, projected financial
figures, and operational procedures. It serves as a guide for the business's operations and a means
of raising capital and luring investors.
A profitable company endeavor also necessitates competent administration and leadership. A
positive work environment is promoted, people are guided, and they are motivated by strong
leadership. Efficient management guarantees seamless operations, accurate resource distribution,
and timely decision-making. Transparent communication lines and a well-organized
organizational hierarchy contribute to the overall success of the firm. Additionally, any
business's ability to comprehend and satisfy its customers is essential to its success. This entails
gathering consumer preferences through market research and creating goods and services that
meet their demands. Maintaining a company's success also requires maintaining strong client
relationships through ongoing development and first-rate customer service.
5. Name some necessary entrepreneurial skills.
Entrepreneurship is not innate in people. Over time, they might be developed and
acquired. Those who want to launch and run their own firms need these abilities. It includes a
broad variety of skills and characteristics that support an entrepreneur's success.
According to Maria Jose Souza's research article, "Entrepreneurial Skills Development,"
entrepreneurial skills can be roughly categorized into four categories: cognitive, technical, social
and business management skills. The mental processes and talents involved in gathering,
analyzing, storing, and using information are referred to as cognitive skills. These abilities are
fundamental to how people see, comprehend, and engage with the world. An entrepreneur can be
thinking of introducing a new product to the market. They assess the competition, demand, and
the hazards of launching the product critically. Technical abilities are the ability to use and
understand specialized equipment, methods, and procedures associated with a given industry or
field. Technical skills are essential in the context of entrepreneurship for people working in fields
that call for specific knowledge or experience. For instance, the ability to use graphic design
software (Canva, Adobe Photoshop, etc.) to create eye-catching product images, banners, and
promotional materials for the website and social media is very helpful to an entrepreneur starting
an online store that sells handmade jewelry. Interpersonal abilities, commonly referred to as
social skills, are crucial for entrepreneurs to develop connections, work together, and
successfully negotiate the social facets of business. An entrepreneur manages a small technology
consulting firm, for instance. Her/his achievement is ascribed to both her adept application of
social skills and technical expertise. Attending conferences and networking events on a regular
basis allows her to interact with peers, potential clients, and industry leaders, fostering the
development and maintenance of professional connections that could result in new prospects. To
successfully plan, coordinate, and supervise a business's activities, entrepreneurs and leaders
need to possess strong business management abilities. For instance, a business owner of a small
manufacturing company might recognize that consumers are becoming more and more interested
in eco-friendly items. Based on this information, he might create a strategic plan to move the
company's product line toward more environmentally friendly and sustainable possibilities.
A mix of abilities is frequently possessed by successful business owners, which helps
them overcome the difficulties involved in launching and maintaining a company. When
combined, these entrepreneurial abilities help one recognize and seize opportunities, get beyond
challenges, and create a profitable, long-lasting company. Throughout their entrepreneurial
journeys, successful entrepreneurs frequently continue to hone and improve these skills.

6. What can be provided by social innovation?

Novel and practical solutions to urgent issues including poverty, lack of access to
education, climate change, unemployment, and malnutrition are offered by social innovation.
This innovation aims to increase the welfare and well-being of people and communities by
designing and implementing new solutions that suggest conceptual, procedural, product, or
organizational change. As previously said, it can happen in a number of sectors, such as
community development, healthcare, education, and poverty reduction.
The main objective of social innovations is to bring about constructive social change
that will enhance everyone's quality of life, but notably that of those who are marginalized.
Additionally, social innovation fosters cooperation across various stakeholders, including
corporations, non-profits, government organizations, and local residents. Because a variety of
ideas are being presented, the collaboration of various entities frequently results in a superior
solution. A common characteristic of social innovation is its ability to adjust and respond to
shifting social, economic, and environmental circumstances. Iterating on their solutions can help
innovators better handle changing difficulties. Long-term sustainability must be considered in the
creation of successful social innovations. It must also serve as a channel for inspiring and
empowering others, ensuring that communities continue to solve problems together.
As new challenges emerge, innovative approaches are in a must to create a meaningful and
lasting social change.

7. Cite some misconceptions of frugal innovation.

Doing more for more people while using less resources is known as frugal innovation.
Also referred to as "jugaad" or "frugal engineering," it is the idea of creating affordable solutions
that maximize value while consuming the fewest resources possible. This methodology
prioritizes cost-effectiveness, ease of use, and productivity in the development of goods,
services, or procedures. Although resource-constrained or emerging market needs are frequently
the focus of frugal innovation, its concepts can be used more widely to provide solutions that are
both accessible and sustainable.
Making low-quality, low-cost products is not the definition of frugal innovation. It is not
necessary to sacrifice quality in order to cut expenses. Rather, it's about coming up with creative
ways to use the least amount of resources possible to offer high-quality goods or services.
Efficiency, simplicity, and cost-effectiveness are prioritized over dependability or performance.
Essentially, the goal of frugal innovation is to maximize value for clients by reducing waste and
optimizing resources. Another myth is that frugal innovation is only considered important by
companies that cater to low-income consumers or operate in poor nations. However, regardless
of the state of the economy, frugal innovation concepts can be used in every situation. It involves
considering resource limitations and developing practical, cost-effective solutions that benefit
clients. Instead of seeing frugal innovation as a long-term approach, some people can see it as a
quick fix or a band-aid solution. A strategic strategy that prioritizes long-term, sustainable
solutions is called frugal innovation. Because it calls for constant learning, adaptation, and
development, it is an invaluable framework for businesses seeking long-term success.
We can sustainably develop goods and services that benefit both the world's wealthiest
and most privileged individuals by practicing frugal innovation. It's a comprehensive strategy
that goes beyond abstract ideas and concentrates on building long-term value for clients and
companies.
8. How are the consequences of innovation classified?

Innovation invariably has some unwanted or unexpected repercussions. It is irrefutable

that certain technologies have resulted in both positive and harmful outcomes.
Positive effects of innovation include its ability to stimulate economic growth through the
development of new industries, the creation of job opportunities, and higher productivity.
Furthermore, advances in technology, healthcare, and other fields can raise well-being, improve
convenience, and improve health outcomes, among other aspects of life quality. Innovation
frequently leads to the creation of cutting-edge technologies, which creates advancements in a
variety of industries, including communication, transportation, and medicine.
On the other hand, some of the drawbacks include the possibility of job displacement due
to automation and technical improvements, especially in sectors where robots are replacing
human work. Certain inventions, especially those in the heavy industries, could have detrimental
effects on the environment, such increasing pollution, the depletion of resources, or the
destruction of habitats. Additionally, worries about personal information exploitation and
individual privacy may arise from technological advancements, particularly in the areas of data
gathering and surveillance.
Although entrepreneurship and innovation are vital to human progress, they have also
negatively impacted society and the environment throughout time. Sustainable growth, as
opposed to merely mindless development, is the key to a healthy future. It is essential to
comprehend and control the effects of innovation in order to strike a balance between
advancement and possible obstacles. It entails taking proactive steps to optimize beneficial
outcomes while minimizing negative ones through responsible actions, ethical considerations,
and continuous assessment.

9. What Does Sustainable Finance Mean?

Any financial service that incorporates environmental, social, and governance (ESG)
considerations into investment or company decisions for the long-term benefit of both clients and
society at large is referred to as sustainable finance. Its goal is to minimize detrimental effects on
the environment and society while promoting economic development. Environmental, social, and
governance (ESG) factors are given top priority in a number of financial instruments, investment
strategies, and lending practices that fall under the umbrella of sustainable financing.
Sustainability in finance encompasses environmental factors. It is the evaluation of how financial
operations affect environmental concerns, such as pollution, climate change, and resource
conservation, as well as the funding of projects and programs that support environmental
sustainability, like eco-friendly technology or renewable energy projects.
In addition, social factors are taken into account when assessing how financial operations
affect society; these factors include diversity, human rights, labor practices, and community
development. Investment in programs that enhance social well-being, like those related to
affordable housing, healthcare, or education. On the other hand, governance considerations is
where the examination of the governance processes and frameworks inside businesses or
organizations happens. Transparency, responsibility, and moral corporate conduct are highly
valued attributes in the organizations that get funding.
 The goal of sustainable finance is to facilitate the shift to a more equitable and
sustainable economy by coordinating financial activity with larger societal objectives. As
companies and investors realize how critical it is to address social and environmental challenges
in order to maintain long-term economic resilience, this strategy is becoming more and more
popular.

10. What is ESG Investing?

The term "ESG financing" describes how investors, companies, and financial institutions
incorporate environmental, social, and governance (ESG) factors into their decision-making
processes. It entails allocating funds to ventures that not only yield monetary gains but also take
governance procedures, the influence on society and the environment into account.
Before granting capital to a company, investors and financial institutions evaluate its
governance standards, social responsibility, and environmental effect. The goal of this
integration is to advance ethical and sustainable business practices. Additionally, information on
their ESG performance is expected of them. Companies are encouraged to enhance their ESG
practices by this transparency, which enables stakeholders to make well-informed decisions. It is
also linked to sustainable investment, in which participants actively look for opportunities that
support their ESG objectives and core beliefs.
ESG serves as a method of evaluation. ESG standards are being used by financial
institutions and investors to evaluate possible investments. These are crucial in minimizing the
misallocation of funds to initiatives that may not be the most effective means of resolving the
current issue. When it comes to addressing social and environmental issues as well as
government processes, ESG criteria will act as the steering committee to determine whether an
investment is appropriate.
ESG finance is an all-encompassing strategy that takes into account investments' wider
effects on the environment, society, and corporate governance in addition to their financial
rewards. The financial landscape is changing, and ESG finance is becoming more and more
important as awareness of sustainability issues rises.

11. What is green financing?

The goal of green funding, according to the United Nations Environment Programme, is
to raise the amount of money coming into environmentally friendly development initiatives from
the governmental, commercial, and not-for-profit sectors (via banking, microediting, insurance,
and investing). The objectives of green financing are to control environmental hazards, seize
opportunities that offer advantages to the environment, and earn a respectable rate of return on
investment.
Green finance may face obstacles such technology risk, maturity mismatch, insufficient
information and lack of policy frameworks. Unsearched environmental projects may be
dangerous. For instance, solar panels have problems with weather dependence and energy
storage, which makes it challenging for financial institutions to assess its financial risk. It is also
synonymous with information deficiency because not all businesses and governmental bodies are
transparent about the environmental data they manage. This is the reason why financial
institutions are finding it difficult to recognize issues, assign values to them, and oversee
environmental and financial risk. On the other hand, a maturity mismatch occurs when the assets
and obligations in a financial institution or investment portfolio do not match in terms of
maturity (or time horizon). In addition, we lack the policy frameworks that ought to have
provided us with direction. To reduce risk, we should prioritize small and medium-sized
initiatives and allocate more resources towards the research, development, and enhancement of
green technologies in order to tackle this obstacle. Companies and the government must also
make all necessary disclosures on green project information available. Green project scaling is
also possible for insurance firms and pension funds. Lastly, in order to develop a solid
framework for green financial policy, governments and central banks need to cooperate.
In addition to providing financial advantages, green financing is an effective tool for
promoting environmental change for the better. Green financing is expected to play a significant
part in changing the global financial landscape in the direction of a more sustainable future as the
world struggles with the pressing need for sustainable development.

12. What is social financing?

Lending money to businesses or individuals who want both social and financial benefits is the
core of social finance. It describes the process of employing capital to produce financial rewards
in addition to beneficial social or environmental effects.
When it comes to social financing, investors want to make a beneficial impact on society
while still achieving their financial objectives. This occurs when an investor is focused on
achieving their financial objectives while simultaneously having compassion for others in need,
particularly those impacted by societal problems like poverty. Investors have the chance to
positively influence society or the environment. As an illustration, consider the chance to fund
renewable energy projects just to solve environmental protection. Investors may also steer clear
of businesses engaged in contentious areas or actively back those that uphold strict social and
environmental standards.
Projects and initiatives targeted at economic and social development, especially in
emerging markets, may be supported by social finance from governments, international
organizations, and development finance institutions.
As more and more investors realize how crucial it is to match financial aims with more
general social and environmental goals, social financing has grown in popularity. It is a potent
instrument for solving urgent global issues because it offers a framework for allocating resources
in ways that promote favorable societal outcomes.