Never has the need to innovate and be entrepreneurial been more urgent.
At a time when entire economies and industries are reeling from the financial crisis, business leaders are struggling to balance the near-term needs of survival with the long-term demand to find new sources of growth. Never has the need to innovate and be entrepreneurial been more urgent.
Ernst & Young has been a leader for more than 30 years in serving companies in all stages of development, and we have observed that innovation and entrepreneurship often go hand-in-hand.
By developing new products and services, revamping organizational processesor adopting fresh approaches to partnerships, companies can take advantage ofthe downturn to transform their businesses. Our observations:
Recession: an innovation opportunity - In a recent Ernst & Young survey, the majority of entrepreneurs said they saw the economic slowdown as the perfect time to pursue new market opportunities. Market leadership: today vs. tomorrow - Dominant corporations are constantly replaced by entrepreneurial-minded enterprises that grow at incredible speed and gain significant market share. Globally, all the major indexes turn over every
five years. Creation through disruptive innovation - Industries, companies and economies all suffer initially as innovation challenges the status quo, but strong organizations embrace shake-ups and ultimately thrive. Innovation: a double-edged sword - Large companies are often hampered by institutional structures that may view unconventional ideas or strategies as impractical, unwise or threatening. But large corporations can still innovate successfully if they build and sustain innovation-oriented cultures.Government and entrepreneurship - Governments, which are often viewed as most effective when they stay out of the business sector’s way, actually play an important role in nurturing and protecting one of their most important engines of growth: entrepreneurs. Effective public policy stokes economic growth. Research and experience show that innovation offers a substantial bottom-line benefit: the most innovative companies outperform their industry peers and are the most attractive to shareholders. We must do everything we can to nurture and stimulate creative thinking across our organizations, teams and processes. Global economic recovery depends on it.
