The-definition.com

Definition

Corridor Principle

Definition (1):

The corridor principle is which states that once an entrepreneur starts a firm and becomes immersed in an industry, “corridors” leading to new venture opportunities become more apparent to the entrepreneur than to someone looking in from the outside.

Definition (2):

According to Corridor Principle, an entrepreneurial venture can find that it has vitally modified its focus from the primary idea of the venture as it has repeatedly adapted and responded to its market and the target to utilize profitability potential.

Definition (3):

In the words of Babson College’s Robert Ronstadt, "The Corridor Principle states that the mere act of starting a venture enables entrepreneurs to see other venture opportunities they could neither see nor take advantage of until they had started their initial venture. “

During the 1980s, he performed a 12-year study on the subsequent careers of the school’s MBA program’s graduates in entrepreneurship. The graduates who developed multiple ventures and extended their entrepreneurial careers’ duration by using this principle were the most successful. The researchers summarized the difference between the successes and failures in their study by a single word and that is ” launch.” The successful ones were interested in launching themselves down the opportunity’s corridor without any thought of what could go wrong. Whereas those who failed had done nothing with their learning and were just waiting for things to be right before they start.

Share it:  Cite

More from this Section

  • Utility Patents
    Utility Patents are the most common type of patent covering what we generally think of ...
  • Service marks
    Service marks are similar to ordinary trademarks, but they are used to identify the services ...
  • Preparation
    Preparation is the background, experience, and knowledge that an entrepreneur brings to ...
  • Economic system
    Economic System refers to the accepted process by which labor, capital, and natural resources ...
  • Founding team
    Founding team is referred as a team of individuals chosen to start a new venture; has ...