Why is Corporate Entrepreneurship important?
The breathtaking pace of development and innovation is driving the way business is conducted. As several new processes, ideas, strategies, and technologies are flooded in the competitive world, the already established companies can either innovate their future or be the victims of innovations. The pathway to overcome such circumstances involves fostering and promoting entrepreneurial activity.
The reason why corporate entrepreneurship is important can be summed up in the following points:
- Need for Innovation: There is always a need for innovation as managers look for ways to cut costs, improve quality, or otherwise enhance performance.
- Creation of New Value: Businesses engaged in entrepreneurial activities are expected to achieve higher levels of growth, profitability, and new wealth creation.
- Effect on Economy: Corporate entrepreneurship can affect an economy by increasing productivity, improving best practices, creating new industries, and enhancing international competitiveness.
- Boosting Productivity: Intrapreneurship helps in boosting productivity as people come up with new ideas and also helps to increase morale among the workforce.
- Benefit for the Organization: Corporate entrepreneurship provides a new source of revenue which is the ultimate benefit of the parent organization. This leads to a greater impact on the market condition of the company.