In Business today the Entrepreneurial Organizations continue to grow, thrive and help change the way companies and people do business. These Entrepreneurial changes that happen internal to large organizations or at small start-up companies all have some of the same traits in common with each other and use some of the same tactics to create business opportunities. Some of the traits they share to promote their business are: Individual action and initiative, Innovation, Differentiation and Risk Taking. Individual action and initiatives taken by the employees within the organization are to create new product offerings or enhance existing products.
These actions do not always succeed in creating revenue for the business, but might help start another product line that will create revenue in the future, but the failures of these products is not seen as a negative within the organization but are treated as growth and are seen as positive steps.
Innovation is a primary and necessary building block for the entrepreneurial organization.
There are 2 types of innovation that should be looked at, used, changed and viewed when using innovation and these are Product and Process. These types of innovation will create change in either a product or process but both are essential to using innovation within the organization and will be used to create new ideas, process and test new theories. Differentiation is another advantage that has to be used, displayed and shown for an entrepreneurial organization. This shows the advantage to customers and investors what unique good, service, talent and innovation that the organization has that makes the customers willing to pay a premium for their services.
Risk taking from a large or small organization requires some sort of investment on the part of the company, either in personal resources or financial resources. The level of risk that the organization is willing to support shows the employees that the organization is willing and able to make changes if the risks are worth the reward. But risks must be taken in these types of organizations to create and discover new opportunities. In conclusion, these are four reasons why entrepreneurial organizations seek to use innovation to create new opportunities and are some of the building blocks for many large and successful companies. With the landscape of business always changing, if companies are not willing to use innovation to try and create new opportunities they might not be successful in the future.