Why Enterprises and Startups Collaborate

By Dennis McCafferty  |  Posted 10-15-2015 Email

CIOs and other executives from large companies are learning how to foster a more innovative and effective digital business environment through their ongoing collaborations with entrepreneurs and startups, according to a recent survey from Accenture. However, the accompanying report, titled "Harnessing the Power of Entrepreneurs to Open Innovation," reveals that this developing relationship has seen its ups and downs: Enterprise leaders expect to generate increasing revenues thanks to input from entrepreneurs. Yet a notably higher share of these leaders feel that the collaborations are a success, compared to their entrepreneurial counterparts. And many entrepreneurs harbor reservations about large companies in general, given that they left these employers because they felt their ability to innovate was stifled by the prevailing corporate culture. "Despite the mythology that has built up around the disruptive power of startups, the overwhelming majority will need to leverage the market power and scale of larger, established enterprises if they are to be truly successful," according to the report. "For their part, large companies are feeling pressure to innovate and become more entrepreneurial, yet find their culture and structures getting in the way. These two kinds of organizations—entrepreneurs/startups and large enterprises—need to combine their respective, distinctive capabilities and collaborate in new ways in the digital era." An estimated 1,000 execs from large enterprises and 1,000 entrepreneurs took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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