Certain lifecycle models show that as the business progresses from medium to large size, there is an increase in red tape, systems and controls. This is a necessity in order to gain and keep control, after the heady growth engendered by the entrepreneur. It is also this point at which entrepreneurs either lose the entrepreneurial drive, or leave to start again somewhere else.
Therefore it would appear that large business by default will lose the entrepreneurial spark, in order to increase its efficiency and control. Therefore how does the large business act in an innovative / entrepreneurial way? It is with a large degree of difficulty.
The whole organisation is focused on structured growth through systems and control, and yet the explosive growth generated by the entrepreneur is still needed but not catered for. So are the entrepreneurs still needed? How do you stimulate entrepreneurship and innovation within the constraints of systems and controls?
We will consider these issues in the next edition.
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