An entrepreneur is an individual who sees a need and acts upon it; thus forming an entrepreneurial company or business. An individual or a group of individuals who have made their vision a reality initially form this type of company. When you first hear the words entrepreneurial company, what comes to mind? To me the first companies I would think of would have to be Apple and Microsoft. However, thinking deeper into the concept I thought Ikea would be a great example.
What makes Ikea an entrepreneurial company? The fact that Ingvar Kamprad not only created a store with furniture, but he also tried to meet people’s needs by generating a place with freedom of choosing products in a relaxing atmosphere. Analyzing the entrepreneurial nature of Ikea it is important to emphasize that the company was taking a risk in investing.Additionally, the number of staff was purposely reduced, so that the customers could enjoy the freedom in choosing their own items. By reducing the staff, Ingvar was also reducing the costs. It is clear that Ikea was and still is a successful entrepreneurial company. It was successful in producing new products, entering new markets and forming a new way of shopping for furniture. The secret of its wealth is based on well-designed furniture, which has been adapted to customers’ taste and average income.