The Role of Entrepreneurship in Large Businesses’ Success
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The success of businesses today largely depend on how well they are able to respond to their customer’s needs. With consideration that there is massive competition in the market, large business have resulted to investing in entrepreneurial orientation. This orientation highly encompass innovativeness, risk-taking, aggressiveness, autonomy in business practice, proactiveness, and the aspect of risk taking. These are entrepreneurial factors that have seen businesses that embrace them succeed in a massively competitive market selling similar goods and services (Deeb, 2016).
Entrepreneurs are defined as people or stakeholders in a business who are able to accelerate business performance, transfer technology to the market place, and improve cost effectiveness of a business. He or she is able to use different entrepreneurial skills and innovative concepts to meet customer needs (Kuratko, 2016). As a result, this research study explores why large businesses with an entrepreneurial orientation are more likely to be innovative, and how they are able to utilize autonomy, aggressiveness, risk-taking, and proactiveness in contributing to entrepreneurial success.
Entrepreneurial Success in Large Businesses
For the sake of revitalization of large organizations, entrepreneurship has come as an added advantage in optimizing performance for large organizations. Commonly, small and medium sized businesses have been embracing entrepreneurship as the core strategy towards competing with large organizations. However, many large businesses have resulted to adoption of entrepreneurial approaches to stand out from their competitors and meet the demands of their customers in unique and desirable ways (Kuratko, 2016).
According to Deeb (2016), with the realization that entrepreneurial ship is the key to optimized performance, meeting customer needs, and countering competitions, large businesses have had no choice but to embrace such qualities as competitiveness, aggressiveness, proactiveness, increased innovations, autonomy, and risk-taking initiatives. All these factors put such businesses at the lead of market competitiveness. In general, Kozubíková et al. (2017) outlines that entrepreneurial researchers in large businesses have found that improvement of existing products and services, embracement of markets and technologies, and the use of proper administrative techniques have enabled the organizations to conduct such operations as production, distribution, marketing, and sales.
The embracement of entrepreneurial skills enable such businesses to make strategic and short term changes in organizing, competitor management approaches, and innovations as the main tools towards meeting customer needs in a manner that will bring satisfaction to them. Therefore, entrepreneurship has become an important factor that has enabled big businesses start predicting their absolute growth and overcome their traditional bureaucratic barriers that have been impeding performance (Schmitz et al., 2017). The employment of entrepreneurial researchers and policy makers in such organizations has seen the businesses open to communication and marketing standards that have kept them abreast in business performance.
When it comes to the aspect of risk-taking and the returns that businesses expect, entrepreneurship requires businesses that are ready to take risks. This is with consideration that the market is full of different goods and services, some of which are already imitated. Large businesses have resources they can use to take bigger risks in business than medium and small businesses. The end result is higher returns and capturing of a larger market domain. Organizations have to risk something of value so that they can be able to achieve a greater objective, per say in form of resources and time (Deeb, 2016). The aspect of venturing into a risky line of business means that the rewards would be proportionately bigger. It is through entrepreneurship that the quantum of risk in each project management is achieved. Risk-taking is an aspect that not only tests the resilience of a business, but also its ability to identify opportunities and utilize them to the fullest.
Innovation and Business Performance
On the other hand, the importance of large businesses with an entrepreneurial approach orientation is that they embrace innovation. The main role of innovation is to help a business stand out, create a unique brand, meet customer needs in a unique way, and offer what goods and services are not being offered in the market (Schmitz et al., 2017). Entrepreneurs are primarily tasked with constant development of processor markets, new products, and ensuring that they keep customers interested by bringing something new into the market. Without the aspect of bringing new ideas into reality, large businesses will continue to stagnate and look big while they are actually underperforming. Therefore, through entrepreneurial business orientations, large businesses have been able to build innovativeness culture that has started being embedded in their business culture.
Innovation may be in form of products, concepts, or unique ways of doing things that make the business standout and offer its goods and services in a unique way that creates satisfaction while at the same time reducing costs and improving efficiency. Organizations that reward and appreciate innovations have been noted to attract a competent workforce and a sizeable market that continue giving appreciable returns to the business. Innovation is all about finding ways to solve a problem that was existing, implementing new ideas, and coming up with something exceptionally new and introducing it into the market (Huijbens et al., 2017). Large businesses have therefore started embracing creativity, collaboration, impacting leadership skills, and identifying customer needs.
In most cases, businesses tend to concentrate on the aspects of risk-taking and innovation as the main competitive edges in both large and small businesses, and end up forgetting the importance of a business and its stakeholders being proactive and aggressive. When it comes to proactiveness, it is a very important entrepreneurial factor that large businesses must embrace. The notion and assumptions that they are big businesses and thus they have added advantage over medium and small scale businesses is a fallacy (Deeb, 2016). Such ignorance can lead to multiple small businesses cannibalizing the entire market segment and leaving large businesses with nothing but a downfall. Therefore, a proactive business must be in play if its performance is to be holistically achieved.
According to Kuratko (2016), tthe measure of the tendency of a business to exploit and utilize rising opportunities by initiating new products and services is what is defined as proactiveness. Based on entrepreneurial research, it has been found that positive effects in business can be impacted via proactive approaches. This is in consideration of the “first mover advantage” which entails grabbing an opportunity earlier and faster than others and utilizing it to one’s advantage. This means that market competition gets reduced for that proactive business leading to increased profitability. Proactivity has also been found by entrepreneurial researchers to be a good opportunity to anticipate the future demand and acting on it in a timely manner. Proactiveness is therefore closely related to net profits, higher sales, and holistic company growth.
Competitiveness and Aggression
Aggression and competitiveness in business are closely related. The two demand for businesses going for what they believe in despite the level of competitiveness in the market. In a competitive market platform, the aspect of acting timely and capturing markets belonging to rival businesses is necessary. The ability to receive entry into new markets require aggression as rival businesses will buffer the market and try all they can to monopolize the same market. Adopting aggressive marketing strategies, lowering prices, providing quality goods and services, and creating a customer oriented approach are some of the aggressive and competitive approaches that can bring any rival business to its knees. Large businesses are safe in such approaches since they do not have resources limitations, meaning that they can be able to counter any market threats from their rival companies leading to gradual market take-over (Huijbens et al., 2017).
When everything is said and done, without the embracement of autonomy in their business operations, large businesses are likely to stall in decision making processes and in the implementation of their competitive strategies. Autonomy must be cultivated holistically and within the workforce in the business. It entails an independent action of a team or an individual implementing an action that aligns to the vision and mission of the business without bureaucracy being involved. Autonomy is a basic entrepreneurial value creation factor that must be embrace by large businesses with such orientations. That is why businesses that have adopted entrepreneurial orientations have resulted to more trust between stakeholders and more projects being implemented faster and into completion (Kuratko, 2016).
In conclusion, it is evident that there is a trend in large businesses taking an entrepreneurial orientation that has resulted to increased performance, profitability, cost effectiveness in operations, and meeting customer needs in desirable ways. Such factors as autonomy, aggressiveness, risk-taking, proactiveness, and innovativeness have played the main roles in creating an entrepreneurial business platform that has led to the success of large businesses today. Entrepreneurial success largely rely on these factors as they set businesses apart and create platforms that create cost effectiveness in running of business, capturing of wider market domain, and eventual business performance.
Deeb, G. (2016, February 18). Big Companies Must Embrace Intrapreneurship To Survive. Retrieved from https://www.forbes.com/sites/georgedeeb/2016/02/18/big-companies-must-embrace-intrapreneurship-to-survive/#1fc0013b48ab
Huijbens, E. H., Hjalager, A. M., Bjo, P., Nordin, S., & Flagestad, A. (2017). Sustaining creative entrepreneurship: the role of innovation systems. In Tourism and entrepreneurship (pp. 74-93). Routledge.
Kozubíková, L., Sopková, G., Krajčík, V., & Tyll, L. (2017). Differences in innovativeness, proactiveness and competitive aggressiveness in relation to entrepreneurial motives. Journal of International Studies Vol, 10(4).
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.
Schmitz, A., Urbano, D., Dandolini, G. A., de Souza, J. A., & Guerrero, M. (2017). Innovation and entrepreneurship in the academic setting: a systematic literature review. International Entrepreneurship and Management Journal, 13(2), 369-395.