2 Basics of Corporate Entrepreneurship

Question 1

What is Corporate Entrepreneurship?

Answer 1

All entrepreneurial activities within established companies aimed at strategic renewal, innovation, and venturing into new markets.

Question 2

What are the goals of Corporate Entrepreneurship?

Answer 2

Maintain agility, creativity, and competitiveness.
Enable strategic renewal and exploration of new business opportunities.

Question 3

Define Corporate Venturing.

Answer 3

Organizational efforts to promote risk-conscious entrepreneurial teams and projects.

Question 4

What is Corporate Venture Capital (CVC)?

Answer 4

Investment of risk capital by corporate companies in internal or external startups or tech ventures.

Question 5

What are the key exogenous trends influencing companies?

Answer 5

1. Changing customer expectations (personalized needs, fragmented markets).
2. Rapid technological developments (digitization, Industry 4.0).
3. Tougher competition and differentiation challenges.
4. Stricter legal and ethical standards.
5. Economic uncertainties (financial crises, market volatility).
6. Skill shortages and changing workplace values.
7. Resource shifts (bio-economy over fossil fuels).
8. Increased globalization and complexity.

Question 6

What skills are critical for entrepreneurship?

Answer 6

Adaptability: Adjusting to new technologies and customer needs.
Flexibility: Developing strategies for evolving markets.
Speed: Quickly identifying and exploiting opportunities.
Aggressiveness: Outperforming competitors.
Innovation: Prioritizing creative and risk-taking approaches.

Question 7

How do young companies differ from established companies in entrepreneurship?

Answer 7

Young Companies:
- unlimited growth potential for company and entrepreneur
- entr. bear all the risk
- they are owners of the business idea and the company or at least they have a significant share
- limited resources
- failure is accceptable
- company is very flexible, decisions can be made quickly

Established Companies:
- long approval cycles - beurocracy and administration
- unlimited growth for company but limited for entreprenur
- general risk is on company, entr. bears risk of career
- failure is not accepted
- extensive resource available
- they are not or little share of the company or business idea

Question 8

What are the positive effects of Corporate Entrepreneurship?

Answer 8

Increasing company performance.
Improves ability to identify promising opportunities.
Focuses on high-value market segments.
Gains first-mover advantages and temporary monopolies.
Boosts company attractiveness within the value chain.