The entrepreneurial abilities to optimize the utilization of the production factors is entrepreneurship (or entrepreneurability). This involves four elements:
- Taking initiative – Action oriented and driven by forward motion
- Strategic business decision making – Based on a clear vision and strategy being able to make decisions
- Innovation – Exploring and experimenting
- Bearing risk – taking the consequences of the previous three elements regardless the outcome.
Since the industrial revolution we have been trying to optimize our production processes. We have created an impressive number of ways to govern it. In the past couple of decades we introduced Projects and Project management frameworks like Prince2, to optimize our productivity we introduced Lean and to facilitate in creative environments we introduced Agile values and principles along with numerous frameworks and practices. All to optimize our labor resources. Capital resources are nowadays heavily regulated and controlled (for obvious reasons) and we try to be more careful in using our natural resources by focussing on circularity.
Applying and optimizing these three factors alone, won’t make your organization a successful organization in these times. Adding entrepreneurship to your mix might do the trick. Here are the key ingredients.
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