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Description of Entrepreneurial Organization. Explanation.

Definition Entrepreneur. Description.

Entrepreneurs are innovative persons having a low level of risk avoidance. They even have an 'appetite' for risk:

• Entrepreneurs start a new business. This is intrinsically a risky venture.
• They look for opportunities, which are always uncertain.
• A new company normally has a strong focus on being successful from a financial perspective. To be financially successful, risk has to be taken. On the other hand, if too much risk is taken (shareholder) value can also be destroyed.
• Entrepreneurs need to find a trade-off between risk and return.

Three Theories to Characterize Entrepreneurs

1. An entrepreneur is someone who starts and organizes a business or a company (functional theory).

2. Typical attributes or orientation of such an individual are: innovative, initiative, creativity, assuming financial risk, problem solving, visionary / strategic, seeing a Strategic Window, strong belief in their idea, optimism, engaging uncertainty, achiever, hard worker, leadership, accepting responsibility (supply theory).

3. The demand theory holds that entrepreneurs mostly emerge out of the combination of entrepreneurial opportunities and people who are well-positioned to take advantage of them. Thus, anyone who encounters the right conditions might become an entrepreneur, if they find themselves in a position where they find a valuable problem that they alone can solve.

Definition Entrepreneurial Organization. Description.

An entrepreneurial organization could therefore be described as a company or agency that:

1. Has recently started. Compare: Business Incubator.

2. Displays the same attributes or orientation as an entrepreneur. Can-do attitude, is proactive, engages heavily in product innovation, is Agile, undertakes risky ventures, keen on achieving First-mover Advantage and short Time to Market, has a Flat Organizational Structure. Compare: Organization Chart.

3. Is in a Competitive Environment offering entrepreneurial opportunities.

Entrepreneurial behavior can be stimulated by Incentives. The philosophy that focuses on stimulating individual employees to act in an entrepreneurial way is referred to as Intrapreneurship.

Entrepreneurship Special Interest Group Special Interest Group (795 members)

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Resources - Entrepreneurship Sources and Methods of Financing a Start-up Company or Small Business   The Influence of Emotions and Moods on Decision-Making and Entrepreneurship   Entrepreneurship: Characteristics and Success Factors   Techniques for Entrepreneurial Thinking   Establishing an Innovative Social Enterprise   Preparing a Feasibility Study   Entrepreneurial Finance: Sources Of Funding   Design Thinking for Innovation   Introduction to Social Entrepreneurship   Interview with Richard Branson on Entrepreneurship   Managing New, Dynamic Workplaces through Employee Engagement   Social Enterprises: an EU Political Perspective   Social Entrepreneurship for Sustainable Community Development   Writing a Business Plan for a Social Enterprise     News about Entrepreneurship         Videos about Entrepreneurship         Presentations about Entrepreneurship         Books about Entrepreneurship         More about Entrepreneurship       Accelerate your management career

Compare with: Organizational Configurations  |  Virtual Business  |  First-mover Advantage  |  Second-mover Strategy  |  Feasibility Study  |  Blue Ocean Strategy  |  Competitive Environment  |  Competitive Position  |  Illusion of Control Bias  |  Loss Aversion Bias  |  Disruptive Innovation  |  Innovation Adoption Curve  |  Flat Organizational Structure  |  Entrepreneurial Government  |  PAEI  model  |  Stretch Goals

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This ends our Entrepreneurial Organization summary and forum.