Identify and describe the important elements of managing rapid growth and overcoming obstacles in an entrepreneurial environment. Essay Example
An entrepreneur will undertake the responsibility of delegating as well as trusting other people to deliver business outcomes, thus enhancing the growth of business. A successful entrepreneurial environment engages persons in activities that seek to pursue the goals of an organization (Hess, 2012). The growth of business is a famous topic in the entrepreneurial world. Business growth is good when it creates value. However, business growth is bad when the scope of growth surpasses managerial capacity, stresses financial controls, stresses quality controls, and dilutes value proposition of customers. However, appropriate business growth in an entrepreneurial environment is achievable through improvements, scaling, innovations, as well as strategic acquisitions.
Improvement entails enhancing the quality of goods and services produced by an organization. Moreover, improvement could also entail improving business processes and the satisfaction of consumers. Improvements assist the business in applying suitable technology to achieve the goals of an organization (Hess, 2012).
Moreover, scaling could also assist a business enterprise in achieving entrepreneurial growth. Scaling refers to how quick a business attains its set objectives without sacrificing its financial stability or quality. Scaling is achievable if the entrepreneur has put in place the right people, controls, and processes that allow attainment of business objectives without any difficulties.
In addition, innovations also play a vital role in achieving business growth in an entrepreneurial environment. Innovation entails changing of methodologies of doing business. Innovation brings uniqueness into a business, thus making the production of goods and services of that business to be different from those of competitors. Innovation takes place in two forms (Kuratko & Welsch, 2004). The first one entails reconfiguring or recombining things that already exist. Moreover, an entrepreneur can also innovate by relocating things from one firm to another or by copying processes or ideas from other businesses or competitors. Innovation is essential as it ensures that the operations of the enterprise are efficient and goal-oriented.
Strategic acquisitions are the attainment of new geographic markets, products, customer segments, services, or abilities that scale the business through its existing customer base or through its existing products. The goal of strategic acquisitions is to increase the scaling possibilities of an entrepreneurship. Moreover, strategic acquisitions also increase the operations of a business enterprise so that it can serve a large customer base (Kuratko & Welsch, 2004). This helps a business enterprise acquire much revenue from its operations, thus outdoing the efforts of its competitors in the market.
Strategic acquisitions and innovations are riskier than improvements or scaling. Due to this reason, strategic acquisitions and innovations need due diligence, financing, integration of capabilities and skills, and merger. However, most business enterprises do not have these aspects, thus finding it had to achieve entrepreneurial growth in both the short-run and long run (Nordqvist & Zellweger, 2004).
However, for business enterprises to achieve growth in an entrepreneurial environment they must overcome a few challenges. The first challenge is seasonal fluctuation of demand. This will necessitate a business enterprise to carry out feasibility study of its market (Nordqvist & Zellweger, 2004). This will help the business determine the appropriate to time to produce its products. Moreover, a business enterprise must also learn how to compensate its workers. This will help reduce stoppages of production process because of abrupt strikes by the employees.
In conclusion, quality management is another area that a business enterprise needs to focus on. This is the act of overseeing the operations and tasks of a business enterprise to maintain the needed level of excellence. Therefore, the business must employ skilled employees, who will implement quality assurance and planning, as well as quality improvement and quality control.
HESS, E. 2012. Grow to Greatness Smart Growth for Entrepreneurial Businesses. Palo Alto, Stanford University Press.
KURATKO, D. F., & WELSCH, H. P. 2004. Strategic entrepreneurial growth Mason, Ohio [u.a.], Thomson/South-Western
NORDQVIST, M., & ZELLWEGER, T. 2010. Transgenerational entrepreneurship exploring growth and performance in family firms across generations. Cheltenham, Edward Elgar. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=534849.
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