Entrepreneurial Climate Analysis
We are in the midst of a global entrepreneurial revolution in every nation, industry and market. According to Morris, et al. (2011) startups are at an all-time high with new products and services also at record levels in most industries (Morris, Kuratko, & Covin, 2011). In the meantime many of these new startups fail as quickly as they emerge. In order for a venture to have the best chance of survival experts concur that an analysis of the culture, climate and environment of an entrepreneurial organization is required in creating a successful establishment.
To create a successful entrepreneurial environment an individual needs to identify opportunities and generate new growth (Hisrich & Kearney, 2012). An analysis of the following components can help ascertain whether a venture is worth considering: (a) the technology incorporated; (b) the ability to nurture new ideas; (c) the establishment of systems and strategies to cope with failure; (d) the determination, accessibility and availability of resources; and (e) the channels available that support management. For example, challenges from high unemployment rates, sparked new ideas for some individuals to seek innovative employment solutions. For one individual, the joblessness condition presented an opportunity to employ their media production experience to provide social media services specifically targeted at corporate executives and businesses. To create a constructive entrepreneurial environment, conducting a critical organizational assessment can help foster solutions that harness support including access to additional resources. In the meantime armed with a positive attitude, their organization continues to grow with an openness that incorporates new innovations and technologies to encourage creativity in addition to the support from cohesive plans and strategies.
An entrepreneurial climate must adhere to innovation and change. For example, the culture of virtual organizations is really taking off and has transformed the work place. Virtual mediums enable leaders to accept, expect, and encourage innovations that include the staff in the co-creation process, make adjustments and adaptations based on user feedback, and coalesce from remote locations. Badal (2013) postulates that to create a successful environment, leaders should be: (a) driven; (b) display effective communication skills; (c) are able to motivate and inspire others; (d) can identify strengths and weaknesses in themselves as well as others; and (e) turn challenges into opportunities (Badal, 2013). An essential component to success in an evolving a young start-up organization is creating an entrepreneurial climate that implements a daily ritual that can include for instance, various exercises to strengthen the body, mind, and spirit. It is important to focus intention and attention on self-disciplinary actions to achieve and maintain an effective leadership role, especially in the early stages where a venture consists of very few individuals to motivate each other. This disciplinary component nurtures individuality, confidence, and provides stamina that drives the internal engines to achieve success.
Corporate entrepreneurs are mavericks, innovators, and the pioneers that spark new enterprises, products, and services by developing, growing and designing a culture that incorporates strategies, structure and policies that support their ventures (Hisrich & Kearney, 2012). When creating an entrepreneurial culture, leaders assess the following components: (a) the technologies available required to operate effectively; (b) the fluctuation in cost of goods, exchange rates, interest rates, tax incentives and a price for services; (c) marketplace competition; (d) labor force requirements; (e) resource availability; (f) who the target market and customers are; (g) an understanding of law, restrictions and regulations for operation; (h) and the global environment that includes real-time communication, productivity, distributors, suppliers and other strategic alliances (Morris, Kuratko, & Covin, 2011). In the early stages of an operation, nurturing a creative culture environment that utilizes state of the art technology in a cost effective manner is a good strategy to keep costs down for a new start-up. For example, one young organization decided to employ an innovative strategy to upgrade their Adobe Creative Suite software to remain a contender in the competitive marketplace. The organization saved thousands of dollars by joining the Adobe Cloud group that offers professionals the use of the latest versions of Adobe’s creative design programs from remote locations at a low monthly rate. This is a strategic, cost effective decision, that supports production creativity and levels the playing field against competitors with access to more resources.
Without analysis and support in their venture, entrepreneurs can give up and quit. In addition, visionary leaders who recognize talented corporate entrepreneurs can help their company benefit further by facilitating a platform that nurtures creativity and new innovations that includes a comprehensive business plan to optimize chances of success and help manage internal politics (Hisrich & Kearney, 2012). In conclusion, an analysis of the culture, climate and environment of an entrepreneurial organization is essential for creating a successful business establishment.
Badal, S. (2013). Building corporate entrepreneurship is hard work. Retrieved February 13, 2013, from Gallup Business Journal: http://businessjournal.gallup.com/content/157604/building-corporate-entrepreneurship-hard-work.aspx