In order to remain competitive, based on service or product offerings, there is a need for innovation. Innovation is often considered to be related to the product, such as changing features or improving product benefits, however, innovation in the entrepreneurial organization involves a new way of doing things that give a competitive advantage over other companies, both large and small.
The development of an entrepreneurial organization begins with having the entrepreneur being actively involved in the conceptual stages (Fiore amp. Luis, sir, 2009). The business founder considers the external environment, such as buyer intensity, and then begins developing departments or specific job functions that can support business goals. Generally, the entrepreneur is responsible for coordinating resources, such as developing a human resources philosophy or in areas of procurement in the supply chain. In the early stages of organisational development, the entrepreneur is very active and visible in areas of management planning, employee control, and setting an appropriate business mission or vision. The entrepreneur asks himself, where do I want to be in x amount of years and how should the business get there. This makes an entrepreneurial organisation one where business strategy, strategic intention, is always on the mind of the developer.
As the company experiences growth, new layers of management or job roles are added. This creates a need to develop a human resources campaign that promotes teamwork, respect and trust.