Management Notes

Reference Notes for Management

Which of the following is alternatively called corporate venturing?

Which of the following is alternatively called corporate venturing?


A. Intrapreneurship
B. Entrepreneurship
C. Act of stating a new venture
D. Offering new products by an existing company

The Correct Answer Is:

  • A. Intrapreneurship

The correct answer is A. Intrapreneurship.

To understand why the correct answer is intrapreneurship, we need to delve into the concepts of intrapreneurship and corporate venturing, which are closely related. Additionally, we will explain why the other options (B, C, and D) are not correct in this context.

Why the correct answer is A. Intrapreneurship:

Intrapreneurship is indeed alternatively called corporate venturing, and this term refers to the practice of fostering an entrepreneurial spirit and activities within a large, established corporation.

Intrapreneurship involves employees within the organization behaving like entrepreneurs while working on new projects, ideas, or innovations. This approach allows corporations to remain competitive and innovative in the marketplace. Here’s why intrapreneurship is the correct answer:

1. Entrepreneurial Activities within a Corporation:

Intrapreneurship is about encouraging and supporting entrepreneurial activities within the confines of a larger organization. It involves employees taking on the role of entrepreneurs, coming up with new business ideas, and taking ownership of these projects.

This parallels the concept of corporate venturing, where a corporation engages in entrepreneurial activities, often by creating new business units or investing in startups to explore new business opportunities.

2. Promoting Innovation:

Both intrapreneurship and corporate venturing are strategies aimed at promoting innovation and growth. Intrapreneurship allows employees to innovate and experiment with new ideas within the safety of an established corporation, while corporate venturing often involves investing in external startups or ventures that can bring fresh ideas and innovation to the parent company.

3. Risk-Taking:

Intrapreneurship encourages employees to take calculated risks, much like entrepreneurs do when starting new businesses. Similarly, corporate venturing involves a level of risk-taking when a corporation invests in new ventures or startups. Both concepts recognize that a degree of risk is essential for growth and success.

4. Strategic Expansion:

Intrapreneurship and corporate venturing both contribute to strategic expansion. Intrapreneurial efforts can lead to the creation of new products or business units within the corporation, while corporate venturing can involve exploring new markets or industries by investing in external startups.

Why the other options are not correct:

B. Entrepreneurship:

Entrepreneurship refers to the practice of starting and running a new business venture, typically by an individual or a small team. It is distinct from intrapreneurship because entrepreneurship usually involves creating a new, independent business rather than operating within an existing corporation.

While both entrepreneurship and intrapreneurship share a spirit of innovation and risk-taking, they differ in their organizational context.

C. Act of starting a new venture:

This option describes the general concept of entrepreneurship, which involves starting a new venture, whether as an individual or a team. While starting a new venture is indeed a key component of entrepreneurship, it does not encompass the idea of intrapreneurship or corporate venturing, which specifically deal with entrepreneurial activities within a larger organization.

D. Offering new products by an existing company:

While this option describes a common strategy for corporate growth and innovation, it doesn’t capture the essence of intrapreneurship or corporate venturing.

Offering new products is a broad strategy used by many established companies, and it doesn’t necessarily entail employees behaving like entrepreneurs or investing in external startups, which are central to the concepts of intrapreneurship and corporate venturing.

In conclusion, intrapreneurship, also known as corporate venturing, involves fostering entrepreneurial activities within an established corporation. This strategy encourages innovation, risk-taking, and the creation of new business opportunities within the organization.

The other options—entrepreneurship, the act of starting a new venture, and offering new products by an existing company—are not correct because they do not capture the specific concept of intrapreneurship, which is focused on entrepreneurial activities within a corporate setting.

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