These two types of knowledge which allow entrepreneurs to be analytical, creative and practical are vital, and without which, successful entrepreneurship is not possible. It provides an entrepreneur with the necessary skills to create solutions and strategies during tight situations. Having proper education and adequate knowledge will allow an entrepreneur to efficiently allocate available resources like technology and globalization to improve. Proper use of knowledge and resources can serve as an advantage over competitors.
It has been said that creativity is what differentiates entrepreneurs from managers (Bird 1988). Their ability to be innovative in finding solutions to roadblocks and problems is the factor that keeps them afloat in a competitive and dynamic environment. Without these traits, they can be easily taken-over by other companies. Creativity is compelled by the dynamism of the environment. Studies show that entrepreneurs demonstrate a higher level of creativity in a dynamic setting in contrast to stable environments (Baron and Tang 2009). In fact, many companies, such as 3M, maintains a working environment where the creativity of their employees can be fostered and developed (Koand Butler 2007). .