|Vecta on Corporate Venturing and Entrepreneurial Behaviour|
often attempt to create strategic growth options or to
release value from internal assets by corporate
Such ventures can be complementary to the company's core business but there are many challenges to successful venturing; not least the difficulty in engendering a spirit of entrepreneurial behaviour within a large corporation.
|Entrepreneurial behaviour is difficult to create and sustain within a large corporation.|
of Failure -
most of those recruited into a large corporation and
becoming successful will have learned how to behave for
corporate advancement; generally this includes avoiding
association with failure, yet learning from failure is
often one of the best sources of rapid learning critical
to successful venture management.
Incentives - large organisations have sophisticated methods of comparing performance and responsibility; generally these give more weight to career advancement than fortune creation, yet potential fortunes are usually a key driver for entrepreneurs.
Risk - corporations develop business rules that steer the corporation away from sources of known risk; few managers are experienced in calculating business risk and, in any case, the environment factors are different for an established corporate and for a small venture operating at arm's length where rapid decisions are often critical to success.
Talent - few organisations will spare their best talent for riskiest ventures; yet the complexity and pace of decison-making in a venture is often far more demanding than corporate life.
|Large companies, despite their efforts at corporate venturing, may be doomed to miss out on the benefits of disruptive technology due to their inability to recruit and retain appropriate talent.|
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