Question

1. Critically discuss the requirements for corporate entrepreneurship               (30)

Answer 1

1)  Inadequate Growth: The current reality is that most of the organizations have spent the last decade investing in existing and mature products that are not providing adequate growth.

2) Failure Rate: The failure rate for new business initiatives remains high for new services and products, more than ninety percent for transformational efforts.

3)  Lack of Capabilities: A majority of CEOs don't feel like they have the capabilities or skills inside their organization to achieve their growth agenda, they are probably right.

4)  Few Role Models: Only four percent of executives in large organizations are entrepreneurs, most executives have achieved their success by managing the core business.

5)  Major Barriers:  After cost cutting and streamlining operations, organizations have created inflexible and rigid systems that have created barriers and roadblocks to growth.

6) Inability to Change: Risk adverse cultures, resistance to change and fear of the unknown are making an organizations ability to respond to a rapidly changing world.

7)  Reliance on the Past: Increasing complexity, uncertainty and ambiguity are putting pressure on organizations to rely on practices that worked well for them in the past, but may not now.

8)  Poor Execution: Some organizations say they are weak when it comes to execution and they see corporate entrepreneurship as a way to close the gap between idea generation and execution.

9)  Business Benefits: Corporate entrepreneurship is linked to higher levels of productivity, growth, engagement, innovation and financial returns. It is also linked to skill development, intangible outcomes like knowledge and job satisfaction.

10) Accelerate Growth: Many of the top innovative companies are instituting corporate entrepreneurship as a way to increase their ability to accelerate new business growth.