New business creation activity is not an on-off case for a company. It is more typically an evolutionary type of process where different levels can be identified. In the following some characteristics of these levels are described.
Level 1, Pop-up company
At level 1 nothing related to new business is done after the initial business start. Such company can be called pop-up company as it comes and goes without any efforts to preserve continuity.
Level 2, Static company
At this level only product and service type of development is done and new business development is a last resort activity when company is already in great trouble. Such company can be called static business company and they are typical in a low competition and stationary industries.
Level 3, Opportunistic company
At a level 3 New business activities takes place only randomly as opportunities arise. There is no systematic processes or systems. Such company can be called opportunistic company and typically in such companies management changes trigger businezation more often than eg. company strategies.
Level 4, Time integrated company
At level 4 new business activities are integral part of the company. Old and new are kept on a balance. This company can be called time integrated company as it is aiming to be successfull over time even in fast changing environment. There is some kind of a common thread more than just profitability that integrates the company over time.
Level 5, Venture driven company
At this level continuous new business activities emerge. However they are separate activities that can lead to any kind of new businesses. Such company can be labelled as venture driven company. Typically they are backed by venture capitalists and the only thing that matters is profitability.
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The previous categorization refers only to different levels of new business activities. It does not tell directly about success and profitability in a sense that level 5 would be better than level 4. What it however imply is that eg. how to organize new business activities differs on each levels.
It is not only change from lower levels to higher levels. The situation can also change over time from a higher level to lower level as there are examples of companies who during last stagnation changed from level 4 to level 2 due to change in company policies.
Also in case of bigger corporations there can be different units that are at different levels. This is typical if there are separate consumer and b-to-b divisions. When there are innovation units specific challenges arise within them as some innovations can be of product or service type of innovations requiring only level 2 backup whereas others go deeper requiring at least level 3 company process.