How we work with entrepreneurship

What is innovation-driven entrepreneurship?

Innovationbased and scalable ideas

Innovation-driven entrepreneurship is a very important part of our economy today and will be even more important in the future. But what does it mean, and how is it different from small-medium size entrepreneurship (SME) and traditional corporate businesses?

According to Professor Bill Aulet of Massachusetts Institute of Technology (MIT), innovation driven entrepreneurship (IDE) is defined as the pursuit of opportunities focused on products or repeatable services beyond the local market.

IDEs have the following characteristics:

  • They focus on super regional or global markets. The company is based on some sort of innovation (tech, business process, model), where they can go global or across regions.

  • They create “tradable jobs” – jobs that do not have to be performed locally.

  • They typically have a more diverse ownership base since the founders’ focus is on high growth and realizing financial returns. Founders tend to be more team-oriented.

  • The company starts by investing time, effort & resources, but in time the company will experience exponential growth. When investment is made into the company, the revenue does not respond as quickly as in small and medium enterprises.

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