Organized Entrepreneurship

The president, whose ultimate job is to secure the organization's future cannot escape the fact that is successful future requires the creations of customers. This means that marketing's talent of studying the consumer must be developed and enlisted, while the entrepreneurial audacity to capitalize on its findings must be cultivated and employed, especially at the upper levels.

Unfortunately, it is difficult for person with little or no intimate exposure to the entrepreneurial process to know what it really is. Few men who, by common consent, are viewed as having achieved great deeds of entrepreneurship would agree that this term describes any of the things that large organizations call by that name  In the large organization the process of creating new things is distinguished by the risk reducing efforts that surround it. Large organizations do not have gambling instinct. Innovation, like other functions of the firm, is viewed as an orderly process in which uncertainties are sedulously avoided unless they can be converted into manageable risks. Indeed, as Schon shows, the whole process of innovation in the large organization may be described as that of converting uncertainty into risk that is, of describing probable outcome sin budgetary terms. Where this is not possible,nothing is ventured. The large organization cannot operate in uncertainty, but is well equipped to handle risk. Risk lends itself to quantitative expression. Its probabilities can be calculated. It can be controlled by the formal mechanisms of justifications and review.