Corporate entrepreneurship refers to the development and creation of new ideas within corporations. Globalization and technological advancements have led to the creation of a highly competitive landscape in all industries. Intense competition and market segmentation warrants creativity for businesses to survive. Therefore, corporations have been forced to become more entrepreneurial to remain competitive. The paper examines the benefits of corporate entrepreneurship in respect to large businesses.
The impetus behind corporate entrepreneurship is the notion of innovation, which aids in the identification of opportunities. These opportunities help the corporation to remain competitive. It helps in driving risk taking in large businesses. Strategic competition is identified by the creation of new opportunities, which might lead to new firms. The development of new firms will eventually alter competition within the industry. It will tip the balance of competition within the mother corporation.
Corporate entrepreneurship helps large corporations to encourage risk taking and keep leaders on active. Entrepreneurship drives teams and leaders within the company towards creativity and corporate enterprising. It sets the stages for innovation, which prompts the company to search for new talent. New talent gives continuity to leadership in a corporation.
Corporate entrepreneurship pushes the management to redefine functions within the company. It works as a way of renewing the whole organization. Innovation encourages venturing, which requires a revision of the all the process within the company. Large corporations are pushed to take risks, which enhances their level of competitiveness in the marketplace. It is a risk when a large corporation considers redefining its main business concept. The other form of risk that entrepreneurship fosters are the implementation of changes in the system.
In contemporary business, leaders are encouraged to create environments that push employees and teams towards entrepreneurial thinking. Entrepreneurial thinking helps in creating a culture of creativity. The promotion of entrepreneurial thinking breeds employees who have passion for innovation, who have embraced the risk of failure. They are the type of employee who will easily inspire those around them to take risks.
In conclusion, intense competition has led to the development of the notion behind corporate entrepreneurship. Corporate entrepreneurship has been embraced by large business because it encourages innovation and creativity. It pushes corporations to take risks, which are necessary for the organization to remain competitive. Corporate should encourage entrepreneurial thinking in their companies. Entrepreneurial thinking breeds a crop of employees who are passionate about innovation and risk taking.