INVENTING & REINVENTING ORGANIZATIONS BY: PUNEET KUMAR

Entrepreneurship Small Business refers to Businesses locally owned and managed, often with very few employees working at a single location. Entrepreneurship is originating of new business venture and an organization for that new venture. Originator of that new business venture is known as Entrepreneur. Function of entrepreneurs is the ability to take the factors of production like land, labor and capital and use them to produce new goods or services.

Cont…. Entrepreneurship is different from Management. Entrepreneurship involves initiating changes in production whereas management involves ongoing coordination of the production processes. Importance of Entrepreneurship– Business founded by individuals intend to change the environment of a given industry by introduction of either a new product or a new production process.

Benefits of Entrepreneurship Economic Growth – New firms provide employment to many people thus improving the economy. Productivity – Two keys to higher productivity is research and development and investment in new plant and machinery. New technologies, products and services – Many people who developed new technologies, products and services being employees of large organizations that refused to use these new inventions, forcing the inventors to become entrepreneurs. Marketplace change – Entrepreneurs stir lot of competition in the marketplace.

Characteristics of Entrepreneurs Psychological factors – -Need achievement – High -Tolerance for risks – Moderate -Locus of control – Proper control on their lives. -Tolerance for ambiguity – Entrepreneurs are doing many things for first time and face more ambiguity.

Reinventing Organizations Once organizations are up and running, it is important that managers pay attention to renewing the relationships that make an organization. This is managerial practice dealing with reinventing existing organizations. Best known term is Intrapreneurship. INTRAPRENEURSHIP – Practice of beginning and developing new business ventures within structure of an existing organization.