Corporate EntrepreneurshipEssay Preview: Corporate EntrepreneurshipReport this essayCorporate EntrepreneurshipCorporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests aformal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
Incorporation Growth in the Developed World, 1989-2007: An Overview of Corporate Entrepreneurship by Rebecca A. Darden, The Journal of Technology and Society. 2004. Web. 31 Sept. 2002. doi: 10.1080/14552300.19908915.web.31Sept.32Sept.02.2000. p.27 The economic growth of the 1980’s was driven largely by a combination of factors. First of all, the developed country suffered a downturn and the developing world experienced a severe downturn as a result of World War II,which is why there were many “reform” measures taken against Japan and the Chinese before the collapse of the Korean War. Secondly, there was growing awareness about the need for companies, firms, and individuals to have “newness” and to innovate, rather than to stay in the “old” business environments. In these contexts, we saw the need/solution and the development of innovative, innovative, non-ideological enterprises by a wide range of sectors such as engineering and information technology, food processing, medicine, retail, healthcare, and information technology production. The emerging sectors in which the world of innovation has been growing in the previous 25 years include pharmaceuticals, energy, food production management (food security), defense, healthcare, healthcare, IT and social networking, digital development, information technology, telecommunications, the financial sector, and the media industry. Among the important areas of sector growth in these sectors are: education finance, banking, and public finance. The top 5 sectors recorded the highest growth of the US economy in the 1980s, followed by China, followed by the United States, and then emerging markets and emerging economies. The second and third key sectors of the emerging economies have been China and the United States since the late 1960’s. They are home to about 9.4 billion people and generate $50 trillion in economic output each year. These economies account for the world’s sixth largest economy, which account for approximately 7.9% of the world’s gross domestic product and account for nearly 25% of total global GDP. Since 1970, growth for developing economies has averaged roughly 2.3% per year in the developed world. However, they are in the midst of a great recession and a profound economic decline. The average investment in the United States is close to 4x what it was in 1990. Growth in the advanced economies for that same period increased by more than 4x, and over half of the world’s $21 trillion in economic output was spent on the developing world (Figure 0). The decline in the developed world will play a vital part in determining the extent to which an economy must grow again and again to remain competitive in emerging markets. We saw the need for entrepreneurs to create businesses to meet their evolving needs. Incorporating a entrepreneurial mindset can aid us in our ability to invest in new ventures in a growing world. Additionally, it helps us develop our business strategies to expand their potential and to ensure they do not fail. In fact, as we have pointed out recently, many entrepreneurs are very well informed about many key technologies
Incorporation Growth in the Developed World, 1989-2007: An Overview of Corporate Entrepreneurship by Rebecca A. Darden, The Journal of Technology and Society. 2004. Web. 31 Sept. 2002. doi: 10.1080/14552300.19908915.web.31Sept.32Sept.02.2000. p.27 The economic growth of the 1980’s was driven largely by a combination of factors. First of all, the developed country suffered a downturn and the developing world experienced a severe downturn as a result of World War II,which is why there were many “reform” measures taken against Japan and the Chinese before the collapse of the Korean War. Secondly, there was growing awareness about the need for companies, firms, and individuals to have “newness” and to innovate, rather than to stay in the “old” business environments. In these contexts, we saw the need/solution and the development of innovative, innovative, non-ideological enterprises by a wide range of sectors such as engineering and information technology, food processing, medicine, retail, healthcare, and information technology production. The emerging sectors in which the world of innovation has been growing in the previous 25 years include pharmaceuticals, energy, food production management (food security), defense, healthcare, healthcare, IT and social networking, digital development, information technology, telecommunications, the financial sector, and the media industry. Among the important areas of sector growth in these sectors are: education finance, banking, and public finance. The top 5 sectors recorded the highest growth of the US economy in the 1980s, followed by China, followed by the United States, and then emerging markets and emerging economies. The second and third key sectors of the emerging economies have been China and the United States since the late 1960’s. They are home to about 9.4 billion people and generate $50 trillion in economic output each year. These economies account for the world’s sixth largest economy, which account for approximately 7.9% of the world’s gross domestic product and account for nearly 25% of total global GDP. Since 1970, growth for developing economies has averaged roughly 2.3% per year in the developed world. However, they are in the midst of a great recession and a profound economic decline. The average investment in the United States is close to 4x what it was in 1990. Growth in the advanced economies for that same period increased by more than 4x, and over half of the world’s $21 trillion in economic output was spent on the developing world (Figure 0). The decline in the developed world will play a vital part in determining the extent to which an economy must grow again and again to remain competitive in emerging markets. We saw the need for entrepreneurs to create businesses to meet their evolving needs. Incorporating a entrepreneurial mindset can aid us in our ability to invest in new ventures in a growing world. Additionally, it helps us develop our business strategies to expand their potential and to ensure they do not fail. In fact, as we have pointed out recently, many entrepreneurs are very well informed about many key technologies
Corporate entrepreneurship (CE) is widely considered as a vital means to stimulate and sustain the overall competitiveness of an organization. Both practitioners and researchers have recognized the challenges of pursuing entrepreneurship within a corporation. CE is the result of the joint activities of an organization’s members, activities that pursue strategic objectives and constitute strategic roles. Thus, to face the challenges that CE poses for both theory and practice we need to advance our understanding of the activities and strategic roles involved in the CE process and their implications for performance. While strategic roles have been extensively studied, most studies analyze the strategic role of top managers and ignore the contribution of middle managers. Moreover, while there is a growing body of empirical evidence of a positive relationship between CE initiatives and performance, little research emphasizes the contribution of middle managers’ strategic roles to superior performance.
Innovation and entrepreneurship are often regarded as overlapping concepts. This can be traced back to probably the most well known definition of entrepreneurship, by Schumpeter (1934: 74), who defines entrepreneurs as individuals that carry out new combinations (i.e. innovations). Schumpeter distinguishes four roles in the process of innovation: the inventor, who invents a new idea; the entrepreneur who commercializes this new idea; the capitalist, who provides the financial resources to the entrepreneur (and bears the risk of the innovation project); the manager, who takes care of the routine day-to-day corporate management. These roles are most often executed by different persons (see for example Kenney 1986). The literature on entrepreneurship recognizes a variety of entrepreneurial roles in economic change, such as:
1. The person who bears uncertainty (Knight 1921);2. An innovator (Schumpeter 1934);3. A decision maker (Casson 2003);4. An industrial leader (Schumpeter 1934);5. An organizer and coordinator of economic resources (Marshall 1890);6. An arbitrageur, alert to opportunities (Kirzner 1973; 1997);7. An allocator of resources among alternative uses (Schultz 1975).These roles all implicitly carry an economically positive connotation with them. However, if entrepreneurs are defined to be persons who are ingenious and creative in finding ways that add to their own wealth, power, and prestige (Baumol 1990), then it is to be expected that not all of their activities will deliver a productive contribution to society (cf. Murphy et al. 1991). For other reasons, many entrepreneurs do not directly contribute to an increase in for example national income: some entrepreneurship is more adequately characterized as a non-profit-seeking activity (cf. Benz 2006). Greater independence and self-fulfillment are more often mentioned as important motivations to become self-employed than increasing earning power (EOS Gallup 2004). Empirical studies have even shown that (on average) entry into self-employment has a negative effect on the monetary income of individuals (Hamilton 2000; Parker 2004). Being an entrepreneur may be rewarding because it entails substantial non-monetary benefits, like greater autonomy, broader skill utilization, and the possibility to pursue one’s own ideas; i.e. more freedom (cf. Sen 1999). These wide ranging effects of entrepreneurship are reflected in entrepreneurship policy.
There have been dozens of definitions of entrepreneurship. The first of those is the phenomenon that some people, rather than working for somebody else under an employment contract, strike out on their own and become self-employed. These economic entities involve some element of innovation at start-up, and some degree of innovativeness is needed to survive over time. However, innovation is not central to this phenomenon. It is to the second social reality. This reality involves the development and renewal of any society, economy or organization, which is based on micro-level actors who have the initiative and persistence to make change happen. In this reality, �entrepreneurship’ means the creation of new economic activities and organizations as well as the transformation of existing ones .
In practice, the creation of an entity to make a profit is the most powerful economic development strategy to emerge as an entity. This is because, it is not something that is built by a single individual who is a founding member or member of a society and has to make a decision based upon his or her own needs and circumstances, but rather, it is the combination of others who have made a decision based upon their own interests of the future to create a situation where some of the activities or institutions the entrepreneur aims to engage in can be managed without violating the rule set out that must be imposed. This means that in a system of business and financial inclusion for most of the population, creating an entity to make a profit is not the responsibility of each individual, but rather, only a group of individuals, who have the need to make choices to adapt or to maintain the order, or to improve conditions in the environment during the business cycle.
A better understanding of this phenomenon lies in this fact: that a system based on a single group of individuals without the responsibility for the whole, or even of their own actions to adapt or to improve conditions will never be sustainable if it does not have a collective understanding of the human being that is built upon each other. A system that does NOT recognize any group or individual’s contributions to create a situation where it becomes impossible to create a future for its participants.
An alternative to the current forms of entrepreneurship in which the individual’s efforts to achieve profit are in direct jeopardy is through a new system where these workers are not individually accountable of their actions, but are responsible of a collective of them who are responsible for making a change to the current state of affairs. This concept does not take into account that in order to create better society, the economic institutions in which the entrepreneur will work must also be fully self-organizing. This is due to the fact that for most of the population, their social organizations must make the most of the advantages they have to create and make improvements to their environments. The more money is spent supporting new businesses and the less money that they need to adapt, the better the outcomes will be for all workers.[2]
The concept of a system of self-employment for the rest of humanity is also a useful concept, since it makes it more clearly visible to the public that the economic principles of self-employment are not just based solely on the existence of one group of individuals but also on the individual’s own self-management and self-activity, where self-management means that all individuals, regardless of political affiliation and political party affiliation, are equal. There is also another, more concrete, aspect to self-employment that is central to this concept: that for millions of people, these personal rules and norms of self-management are part and parcel of the collective self-worth generated by an enterprise’s efforts. The result of the self-management of this organization is what would be termed the individualized individualization of our society. For the majority of people, this individualized individualization is part of their collective self-worth which is in the hands of others in order to generate the same level of benefits available to them.[note 6
Indicators of Contributions to Economic OutcomesEmployment :Firms may contribute to the amount of employment generated or to the quality of employment. Firm growth, measured by the number of jobs created (relative to the size of the firm), is often used as an indicator of the quantity of employment generated. The quality of employment is measured