4 Reasons Why Venture Companies Focus On Innovation

Economist Schumpeter explained that "capitalism is developed by corporate innovation," which means "development of new products and new qualities," "introduction of new production methods," "development of new sales channels," and "raw materials. We thought it would be caused by "securing a new source", "forming a new monopoly position, or breaking an existing monopoly".

Now, this innovation doesn't come from big companies, much from venture companies. Knowing the reason and making the best use of it will lead to the great development of venture companies. Here are four reasons why venture companies are more likely to innovate than large companies.

Innovation is always uncertain

Whether innovation succeeds or not is always extremely uncertain.
Therefore, large companies always spend time and people collecting, analyzing, and carefully discussing their innovations. That time lasts for several months, and if you invest a lot, it will grow even more.

4 Reasons Ventures Better Than Big Companies

Ventures are generally inferior in data collection and analysis capabilities to large companies.
However, venture companies have more than enough capacity to make up for it.

1. Excellent intuition

Venture entrepreneurs often start up to do what they love, so they have the power to see things more intuitively than logic. For large companies that cannot be determined without collecting and analyzing data, it is possible to quickly and in some cases instantly determine whether innovation will succeed without data.

2. Fast decision making

Venture companies can make quick decisions, whereas large companies cannot make decisions without a rooted agreement. Schumpeter does not touch on the relationship between economic development and innovation on the time axis. But in modern times, the speed of decision making makes a big difference.

3. Strong sense of urgency

Large companies can afford to manage and do not make hasty decisions about risky matters. Therefore, it takes time to collect the data.

However, venture companies do not have time to leisurely collect data on their desks, and they make management decisions while running.

One famous saying is, "Skillfulness is not quick (bad or fast is better than good or slow)", but ventures are unexpectedly managed every day. I'm doing this inside. And from that, sharpened and visionary judgment is born.

4. Don't give up the game

There are few business situations where large companies have to compete, and if there is a risk, they will give up on ideas quickly, but on the other hand, venture companies are strong against the business because they are always in a competitive state.

Summary

The four reasons mentioned here are the abilities that many venture companies have, not the abilities that are special. However, as soon as the management gets on track and the organization is completed, a symptom called a large corporate disease appears, so it is necessary to manage the business without forgetting the original intention.