Development of entrepreneurship in the scope of the organization
According to Pincat, companies that are interested in developing and maintaining the level of entrepreneurship should try to create an environment in the company where people who understand and feel the attractiveness of opportunities are encouraged and follow it. In such an environment, a self-selection process occurs in which entrepreneurs rise to the surface like bubbles and burst.
Since the activities of entrepreneurs include high levels of uncertainty, management in such conditions requires the ability to quickly process information and high levels of trust in the people and teams of entrepreneurs. In this process, management creates a high level of interaction between people, the organization and the external environment at all levels. The overall goal is to identify inefficient and ineffective areas and find new solutions to meet customer needs.
Innovation may exist in any link of the value chain, and for this approach there will be no limits for new goods and services. Management interested in promoting entrepreneurship at lower levels should want and be able to appreciate and support the perceptions and judgments of people at those levels. But the two major challenges that the management is facing are related to ensuring that the granted freedom is not abused and also that the inherent risks of entrepreneurial activities are contained.
McGrath and McMillan identified four broad sets of activities that are formed in creating an organization focused on identifying and exploiting opportunities; Activities that establish the right state and conditions for innovation are activities that create atmosphere; After that, there are activities that coordinate the processes of searching and identifying opportunities for business growth, which include: defining the limits of the innovative activities that the company will undertake, creating discipline in the use of resources in such a way that until the high potential Not shown, costs and investments should be minimized. Then there are the activities that actively involve the senior management in this issue and require the establishment of analytical processes to identify the opportunities that the company exclusively exploits.
Finally, the process of bankruptcy management establishes standards for future engagement in such initiatives, which include building experiences and benefits from bankruptcy for use elsewhere. These challenges will be controlled and resolved through structured mechanisms. These mechanisms help to avoid irresponsible behavior and risks associated with entrepreneurial activity. In order to promote entrepreneurship, people must be allowed to think freely and act in unconventional ways.
To control risks, management should control the entrepreneurial process and not specific initiatives. If the process is correct, a certain percentage of success will be achieved. Also, small and big projects are not judged on the outcome, but the quality of the processes is followed.
Many organizations that have a separate budget for risky activities in order to support innovative ideas are examples of such cases.
In order to choose entrepreneurial activities for support, organizations consider various criteria, which depends on the organization’s leadership, strategy, history, and resource characteristics. In fact, organizational entrepreneurship increases the company’s competencies and leads to the development of new competencies.
Sincere
This post is written by Rimaazz1