India is witnessing growth for the past infinite number of decades. The growths in the field of science, heritage, economy, businesses, new inventions, innovations are achieved continuously. India is supporting these fields to grow at a high rate. One of those fields of achievement which gained support and growth in India is Entrepreneurship. Entrepreneurship in India is gaining people’s favor. So business activities carried on by the new businessmen to earn a profit is called Entrepreneurship. These people starting a new business activity are called Entrepreneurs. Thus, their real goals are to manage, organize and invest in their business in such a way that it yields good profit in return. The Entrepreneurship concept is divided into 6 different types which help the Entrepreneurs to work more effectively. Those 6 concepts are ‘Changes’, ‘Needs’, ‘Solutions’, ‘Stakeholders’, ‘Value’ and ‘Context.’ Entrepreneurship are divided into nine broad types as under:
- Large Business Entrepreneurship: Type of Corporate Entrepreneurship
- Small Business Entrepreneurship: Type of Corporate Entrepreneurship
- Startup Entrepreneurship
- Innovative Entrepreneurship
- Social Entrepreneurship
- Hustler Entrepreneurship
- Researcher Entrepreneurship
- Imitator Entrepreneurship
- Buyer Entrepreneurship
The type of Entrepreneurship we are going to talk about in this article is Corporate Entrepreneurship.
What is Corporate Entrepreneurship?
Corporate Entrepreneurship is also known as Intrapreneurship is an activity carried on within the established business. It is an activity of encouraging and supporting the employees in an organization. To develop and evolve ideas and opportunities for the new and advanced products to sell in the market by the organization. Thus, corporate entrepreneurship is an activity followed by the organizations to encourage their existing employees to think like an entrepreneur. The implementation of it may allow the organizations to support their new corporate entrepreneurs to come up with new innovative ideas for the better and efficient working of the company.
Who are Corporate Entrepreneurs?
Corporate entrepreneurs are those who work for a particular company. Corporate entrepreneurs work on the unique ideas and its processes for a particular company in which they are working as an employee. Thus in this, the entrepreneurs only have to give their best ideas for the growth of the company.
Process of Corporate Entrepreneurship
Corporate Entrepreneurship is a part of entrepreneurship and the processes of both are somewhat the same. Therefore the workings of corporate entrepreneurship are divided into four major steps, which are as follows;
The first process of corporate entrepreneurship is innovation. A corporate entrepreneur needs to first get new, appealing, and innovative ideas to move to the further stages of entrepreneurship. Thus, innovation stands at the first and is the most important part of corporate entrepreneurship.
The second process stands as an organization. The organization of the innovative ideas developed by the corporate entrepreneurs is required for a better outcome.
The third process is the risk associated with the ideas for a new product or service evolved by the corporate entrepreneurs. The risk is an important factor because without taking the risk we can not achieve our goals.
The last process under this is the vision. The vision to see the offered innovative idea rock in the market is crucial. Every company launches its new product or service with a vision. Thus, the last process under corporate entrepreneurship stands a vision of the company on its newly launched product.
What are the models of Corporate Entrepreneurship?
The models under corporate entrepreneurship are divided into four broad categories. These four models are as under:
The opportunist model of corporate entrepreneurship is the most important. Because without opportunities the innovations and new products are difficult to achieve. The economy gives several opportunities to corporate entrepreneurs to evolve their new ideas. The drawback of this model is that the company should motivate its employees to grab the opportunities coming their way. Sometimes, companies fail to do so.
The enabler model has associated with the allocation of the resources that corporate entrepreneurs are about to grab. This model needs effective attention and support from the management. This includes personal development and engagement.
The advocate model is the assigning of the tasks and projects to the employees. It allows and helps them to execute better results. The corporate entrepreneurs under this can work accordingly with the budget provided by the management.
The producer model aims at protecting the emerging project by ownership and dedicated resources. This model includes encouragement and collaboration with the cross-business units to build the potential business.
The strategy of Corporate Entrepreneurship:
The strategies associated with corporate entrepreneurship include the following:
The first strategy on which the organization works is the developing of vision. It takes the company or an individual to the desired goal. It is a picture of what and where the company wants to see them shortly. Thus, it helps to get the right path and allows the organization to choose the right decision.
Encouraging the Innovations:
Encouragement of innovations by corporate entrepreneurs is the second strategy. We should encourage innovations in the employees if the idea is productive for the company as well as for society.
Building a Suitable Climate:
A suitable working environment is necessary for every kind of business. And so do the companies encouraging corporate entrepreneurship. It helps the employees give their best. Thus, the productivity of the employees will benefit the company.
Training and Developing the Managers:
When the company grabs new opportunities, it should focus on training its managers to take up those opportunities the way the organization wants. So, to get the perfect outcome, the companies train their managers first. To train and develop, the managers are selected based on the following 3 criteria:
Experience is the first criteria in the selection to train and develop. Because the more experienced managers will know the dos and don’ts better.
Second the managers are selected and trained on the criteria of innovative thinking. An innovative thinker will help the project to come out in a better way.
Managing the Team:
Team management is the most crucial aspect for a manager. It is also important to achieve the ethical and financial goals of the organization.
Developing and Training the Team:
So, the last strategy on which the company needs to focus is the training and development of the team. After this, it is important to train and inform the team about the grabbing opportunity. The criteria of the development of the team also include experience, innovative thinking, and the ability to face risks.
Why Corporate Entrepreneurship is important?
Corporate Entrepreneurship is important due to the following reasons:
Increased Performance of the Employees:
Corporate entrepreneurship includes a process of motivation. It motivates and encourages its employees to come up with unique and innovative ideas. Thus, this increases the performance and efficiency of the employees which in turn favors the company to achieve its goals.
With the increased performance of the employees, the organization also achieves increased efficiency.
Readily Available Resources:
Another advantage associated with corporate entrepreneurship is the availability of resources. An established business has all the resources available to execute the plan easily and effectively.
Corporate entrepreneurship involves the process of motivating the employees to take up the opportunities and help the organization to achieve its vision. So, with motivation, the employees will work accordingly which in turn helps them to gain rewards and lead to happy employees.
Organization’s Organic Growth:
Corporate entrepreneurship plays a vital role in the organic growth of the company. Organic growth means an increase in the sales of the company and expansion without including the profits. It is associated with the company’s resources.
Benefits for the Society:
Corporate entrepreneurship benefits society since it motivates and encourages employees to develop new products and services. The new and innovative products will be beneficial for society in turn.
Why did Corporate Entrepreneurship fail?
The reasons for the failure of corporate entrepreneurship may include the following:
The issues associated with the communication and channels of communication are the major reason behind the failure of corporate entrepreneurship. People don’t tend to communicate in the business which leads to the failure of the ideas.
Time taking Process:
Corporate entrepreneurship is a time taking process and due to that, it fails in most organizations. It includes a long process of encouraging, motivating, executing, staffing and organizing.
It takes a lot of effort to execute corporate entrepreneurship. From choosing the right employees to motivating and executing their ideas, it needs efforts and dedication at every level. And even a small mistake can lead to a disastrous outcome for the company.
Effective Encouragement :
A point where corporate entrepreneurship fails is encouragement. Without effective encouragement and motivation, the employee will fail to come up with what the company wants.
Lack of Unique Ideas:
Another drawback associated with corporate entrepreneurship is the lack of unique ideas. It is a tough task to think of products or ideas which are different from others in the market. Thus, the lack of unique ideas affects it a lot.
Lack of Interest of the Employees:
Among the above-stated drawbacks, the lack of employees’ interest stands at first. It needs support at each level. But the major level in which the employees having a responsibility to think and evolve new ideas may feel a lack of interest. And may go for the normal and monotonous work they were doing.
Corporate Entrepreneurship vs. Entrepreneurship:
- The major difference between corporate entrepreneurship and entrepreneurship is the place of work. Corporate entrepreneurship is working in an organization for the sake of shareholders, whereas entrepreneurship is working in your own office for the sake of your profit.
- Another difference between the two is that incorporate entrepreneurship you have available resources. The only thing the corporate entrepreneur has to focus on is the innovative idea. But in entrepreneurship, the scarcity of resources is there. These entrepreneurs have to work on getting the finance, resources, and on innovative ideas as well. Incorporate entrepreneurship, the leader or the management is your boss but in entrepreneurship, you are your boss.
The explanation above is all about corporate entrepreneurship. We hope you liked our blog and it helped you to solve the queries related to it.