Entrepreneurial firms are companies that bring new products and services to the market by creating and seizing opportunities.
“A firm which undertakes risky ventures and engages in product-market innovation is called an entrepreneurial firm. “
Entrepreneurial firms are structures promoting the exposure and development of concepts or ideas from every member of the firm. Functionally, such firms must have definite features allowing alternative views to come out. An entrepreneurial firm combines different features of the flexibility of entrepreneurship and firm, such as definite attention processes making it possible for senior and junior managers to draw the decision-makers’ attention, definite decision processes (with remuneration schemes, adapted criteria, and incentives) explaining the acceptance of concepts or ideas, and an agile and flexible structure allowing the implementation.
Google, eBay, and Apple are well-known, highly successful examples of entrepreneurial firms. Having recognized an opportunity, companies of this type create products and services that have worth, that are important to their customers, and that provide a measure of usefulness to their customers that they wouldn’t have otherwise.
Use of the Term in Sentences:
- Entrepreneurial firms vary from the managerial firms by their characteristics and structures.