Corporate Entrepreneurship (Document Bundle)

Corporate Entrepreneurship is the process by which teams within an established organization conceive, develop, launch, and manage a new business that is distinct from the parent organization by leveraging the parent organization's resources.

Corporate Entrepreneurship involves fostering an entrepreneurial mindset and approach within a large, established company. It empowers employees to identify new opportunities, innovate and create new products, services, processes or business models that have the potential to create new revenue streams or increase competitive advantage. These entrepreneurial initiatives operate with a level of autonomy from the core business, but with the backing and support of the parent company's resources like capital, talent, technology, distribution channels and market expertise.

Studies have shown Corporate Entrepreneurship helps stimulate Innovation, revitalizes the organization, increases employee productivity, and creates a superior market advantage. By encouraging entrepreneurial thinking, organizations (like Google) tap into the creativity and motivation of their workforce. New ideas get explored and translated into tangible innovations that can disrupt markets. This infuses new vitality into an organization by creating entrepreneurial zeal within its ranks. Additionally, giving employees a chance to work on new ventures increases engagement and productivity as they feel empowered and invested in the company's future. Ultimately, Corporate Entrepreneurship enables established firms to stay ahead of the competition by consistently bringing new offerings to market.

Corporate Entrepreneurship is a cost-effective approach to promote and maintain a Competitive Advantage. Rather than relying solely on acquiring or building new capabilities externally through M&A or grassroots startups, leveraging corporate entrepreneurship allows companies to capitalize on their existing talent and resources. The innovations are created in a manner that complements and strengthens the core business. Moreover, the corporate brand, market presence, and organizational knowledge accelerate the growth of new internal ventures. This lowers the costs and risks compared to operating as an independent startup. By continually incubating new businesses from within, large corporations can maintain an entrepreneurial edge over rivals.