Seeking Opportunities for Innovation, Essay Example

The pursuit of entrepreneurship from an organization can be attributed to many reasons. Most of this pursuit is dependent on the size of the organization and realistic expectations.  Many entrepreneurial organizations seek out opportunities for innovation. There are various reasons as to why entrepreneurial organizations would want to seek innovation. After a careful analysis, it can be reasonably assumed that there are four primary reasons for this seeking of innovation by any entrepreneurial organization.

Sustainability

If an organization settles for what they already have as far as the success of their current status of entrepreneurship, then this may cause them to fall behind with the continuously changing economy. The economy as well as information technology is always expanding and innovating. This means that organizations, including entrepreneurial organizations, must keep up with such advances and innovations in technology and the economy. The organization can only do this by innovating every part of their organization, including their entrepreneurship.

Money

Organizations, especially for profit organizations, are in the business to generate revenue so that they can collect the profits. A drive for innovation in entrepreneurship would surely assist in boosting revenues for an organization if they are successful in this. This is because the larger a business is, the greater their opportunities for income are. Expanding on the entrepreneurial level gives an organization more opportunities to reach out to larger sums of the consumer market.

Partnerships

In the field of business, it is common for businesses to form partnerships. This may come in the form of a merger or an acquisition. A merger occurs when two businesses form an equal partnership, forming their two businesses into a brand new one. An acquisition may occur when one business buys out and assumes ownership over another business, though it is still a kind of business partnership. This may be another major reason for an organization to want to seek innovation on the entrepreneurial level, to build partnerships with other business that can benefit them financially as well as economically. This may also give them an opportunity to innovate on an international level. If an organization is able to reach out to a global consumer market, then their net worth is likely to be well in the billions. This is a desired goal for any organization in the field of business.

Going Public

Many organizations seek innovations in entrepreneurship with the aspirations of going public. This would be a big step for any organization. What this means is that the organization would become a publically traded company on major global stock exchanges. This would open up a percentage of their equity to the public that could then be bought and traded by investors in the investor market. The stocks of that percentage would be available for sale and trade on either the New York Stock Exchange (NYSE) or NASDAQ. Going public is a big deal for an organization. They are now being watched under a microscope by federal authorities, primarily the Securities and Exchange Commission or (SEC). This would mean that the organization would have to tighten up their regulations and practices to prevent any fraud or unethical behavior because the public investors now carry risks based on the decisions of the organization. However, being under so much pressure is usually worth it for most organizations that can be successful as a pub publically traded company because they have the financial support of their investors.