1. This is about the "new"--both new products or services and new organizations. Innovation and entrepreneurship are fundamental to today's world economy. However, they also pose difficult choices: be a first-mover or a fast-follower, as well as handling takeover bids. Entrepreneurship is a fundamental organizational process, as all businesses start as an act of entrepreneurship. Two main themes link entrepreneurship with innovation: timing and relationships. Timing decisions include when to be a first-mover or fast-second in innovation, and when, and if, an innovation will reach its tipping point--the point where demand takes off; and, for an entrepreneurial new venture. Creating innovations or new organizations is very rarely done alone.

Successful innovation and entrepreneurship are typically done through relationships. These relationships come in many forms: sometimes relationships between organizations and their customers; sometimes relationships between big businesses and small start-ups; and sometimes between a business and social entrepreneurs (entrepreneurs that create new ventures to address social problems).

Compare and contrast entrepreneurial ventures and small businesses.