Large Company Entrepreneurship: Large Company Entrepreneurship can be defined as organizations that have a solid set of life cycles. There is a solid involvement of sustaining innovation providing new sort of products. It includes customization in customer tastes as well as dealing with new competitors. In simple language, it means the creation of new business within the present organization.
Large Company Entrepreneurship: Advantages and Disadvantages
The main motive of this Entrepreneurship is to boost the innovation as well as creativity within company. There is a solid set of freedom offered by it along with maintenance of solid degree control.
Let’s have a look at the major benefits offered by Large Company Entrepreneurship below:
- Solid availability of resources
The major thing lacks in the majority of startups is investment or capital. It is one of the main reasons for failure of more than 90% of startups in the first year of operation.
However, the availability of resources is pretty high when a business is started within a business so that the chances of success are pretty high.
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- Brand Name
There is a pretty solid role played by brand recognition in the success of a business. In case of large company entrepreneurship, the product or service is backed by a recognized brand that turns out to be a great advantage for entrepreneurs.
The case is pretty different when we talk about a startup as there is an involvement of solid hard work that takes years for success.
- Better Team
As we already know, there is a strong backup held by a corporate entrepreneur in terms of business development or sales team. Having such a team directly affect the chances of success to a greater team.
Such a luxury isn’t held by small companies or start-up as they have a limited team. The reason behind that is they can’t afford such a team.
- Reforming the structure of the team
For the successful implementation of innovation procedures, they build up a team of professionals which consists of six people such as the hustler, the Machine, the Prodigy, the Strategist and the visionary. All these people help to experiment the old ideas to develop the inventive one, the machines to deliver the product, relevant business sense and make effective and efficient business plans.
A stable stream of innovation in the products and services ensure by the large company entrepreneurship. All the services, as well as products that are provided to the customers, must be up to date and full of inventiveness.
The lifeblood of a company is the innovation and without it, not even a single firm will survive for a long time. But the large scale has big structures and culture responsibilities due to which they struggle a lot to give a try to the innovation.
The large company entrepreneurship helps the business to adopt new techniques and technologies to maximize the inventive capabilities that is beneficial for the firm.
- Maximization in Productivity
With the introduction of new technologies, it is crystal clear that the production of products increases and it leads to an increase the productivity within the premises of an organization. These inventive technologies take less time to fulfil the demand of the consumer and thus, results in maximization of productivity.
- Employee Morale
The programs of large company entrepreneurship enable the employees to handle all the associated opportunities and engrossing them in activities and tasks that seem challenging and interesting to them. The employees get a chance to give their contribution to the adoption of new technologies.
- Competitive Advantage
The greatest asset of a company is the manpower when it is the time to analyzing opportunities as well as threats in the marketplace. A clear vision is provided by the employees not available to the competitors and is a powerful source for competitive advantages going on.
- Recruitment and retention of Employee
It allows employees to implement the ideas and opportunities in favour of the business which leads to a great level of satisfaction from the job.
The companies who have the intention to adopt the large company entrepreneurship, they will grab the attention of the more talented employees who have an entrepreneurial mind and forming a positive cycle.
- Boosting Profitability
It is axiomatic that a successful program of large company entrepreneurship can easily increase the margin of profit. The major benefit comes from the inventive products and services and the second advantage can get from the employees of the business through new ideas for making improvements in the business processes, efficiencies and low cost.
Let’s check out the disadvantages associated with Large Scale Entrepreneurship:
- Job Security
The chances of risks are always associated with something while trying something new. The corporate entrepreneur put their job in danger if their plans fail to execute as per expectations.
There are lots of examples where the entrepreneurs have to fail due to the under performance of their plan.
- Extended Approval Cycles
While working in a large company, there is a need to deal with longer approval cycles. The corporate entrepreneurs aren’t allowed to make decisions instantly as they need to take approval from the company’s head first.
- Fear of failure
Employees’ of the company must not feel the fear of implementation of new ideas for the very first time as it may be positive or negative too. The fear sometimes must be present in the employees.
The management should firstly take some relevant steps and create an environment where all the risks can be easily tolerated and the new opportunity to learn something innovative is the failure.
- No actions, only encouragement
Leaders are always motivating the employees to adopt the inventive technologies and give great lectures on investment in the field of innovation. When it comes to taking action, then they allocate resources in the basic business projects rather than the extremely profitable and rewarding business projects.
- Extreme creativity in ideas are required
A solid plan and strategies have to be made by the large company entrepreneur in order to convince the management to invest their resources in this inventive idea. A high level of creativity, reality and necessary soft skills are needed to motivate the management for a, particularly innovative idea.
Also See: Advantages of Entrepreneurship
Why Large Companies go for this type of Entrepreneurship?
There is a crucial role played by corporate entrepreneurship. It let the companies create innovative products & services. Using this approach, the organization can set up better merchandise. In simple language, it is considered as a method of renewing organization structure.
It makes it possible that innovation takes place within an existing organization. Nowadays, there is a vital role played by this type of entrepreneurship. Its popularity is on the rise for the past decade.