TWO QUESTIONS ABOUT ENTREPRENEURSHIP Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    986

Q. 1 Identify and describe the important elements of managing rapid growth and overcoming obstacle in an entrepreneurial environment.

Introduction

Entrepreneurship is an important element the business environment, an element that may culminate into new organizations and revitalize the mature organizations in light of prevailing business opportunities. This paper identifies and describes the important elements of managing rapid growth and overcoming obstacle in an entrepreneurial environment.

Managing rapid growth and overcoming obstacles in an entrepreneurial environment is often a daunting task that involves several significant elements for success. One of the elements of growth is creativity and innovation. Creativity involves coming up with an idea. New production of useful ideas occurs, opportunities are discovered and there is an output of new ideas. While innovation is more of refining, evaluation and materialization of the new idea is taken into consideration whereby the new opportunities are evaluated and business plans developed regarding how to implement the plans.

The resources and the background of the entrepreneur as well as the firm’s nature and strategic decisions by the manager is also a significant consideration. In order to manage rapid growth and overcome challenges in an entrepreneurial department, an entrepreneur needs to consider developing products, improving product and product quality, and enhancing the service offered to customers. Also, performance of employees is critical, whereby what measures the performance include the efficiency and productivity of employees and their welfare.

Growth is also a subject of the changing management and industry pattern. This is because managers and organizations create each other. They are catalysts amongst ideas, hence events applied affects the behavior of managers in the systems of the organization. Complex managers therefore enable bottom up behaviors. They shape differences that occur between leaders and their followers and influence the systems fitness by ensuring that there is distributed intelligence.

Knowledge economy is similarly an important aspect that actually provides a powerful sense when new kind of management function occurs. When the knowledge economy is convectional, there is a change in the arrangements of the organization and occupations. The skills required change as generic skills rise, workers are able to monitor their behavior and output, think creatively and solve problems. Workers are therefore compelled to work together in a complex way. Such motivate workers, foster teamwork and build networks among teams; openness in communication is also fostered as mistakes are fostered in order to encourage learning. This also builds and maintains networks that are knowledge sharing and synergetic while involving partners such as the government and other businesses.

Conclusion

From the above analysis, it is evidently clear that growth is one of the major challenges that entrepreneurs must face, a challenge which emphasizes the significance of several factors including creativity and innovation. With such considerations in place, the business can easily deal with the obstacles affecting entrepreneurship and its growth.

Q2. Identify and describe significant sources of information and assistance including the entrepreneurs and entrepreneurial events over the last fifty years

Introduction

Regardless of all the strategies a business may attach significance to, the fact that all business need information and assistance is unquestionable. This particular paper discusses the various sources of information and assistance over the past fifty years.

Information and assistance are quite critical in propelling a business to achieve its desired goal. In entrepreneurship,sources of assistance and information for the past 50 years are wide ranging, with significant information being derived from the marketing information, technical information which helps in adopting an intelligently moderated technical approach, information from ICT, information generated by the new technology such as mobile phones which affects the business operations, and financial information which ultimately enables the entrepreneur to know the capital required etc.

Likewise, sources of assistance are varied and wide ranging, entrepreneurial seminars offer affordable, confidential and vital services to participants launching businesses, with some entrepreneurs providing customized assistance throughout product development and market analysis. Entrepreneurs may additionally receive assistance from the Local/community resources such as colleges and universities, State resources including major offices and departments, and Professional services from attorneys, accountants and insurance agents as well as from Federal agencies. Apart from being fragmented, the federal programs supporting entrepreneurship often overlap depending on the kind of assistance that they are actually authorized to provide, including financial assistance such as grants or loans, and technical assistance such as training or counseling.

Sources of financial assistance in entrepreneurship may include internal or external sources. Internal sources are often influenced by the organic growth. This growth is produced when the business expands and develops and is attained when there is an increase in sales generated where there is an increase in the revenue affecting the entire levels of profits. This can be achieved when the retained profits are used for reinvestment in the business. External sources of funding also serve a critical role, sources that include long term, short term or inorganic growth. Long term sources involve longer payback periods, including shares and loans.

Short term sources are used to cover fluctuations that occur in cash flow samples and include bank loans, leasing and trade credit. Inorganic growth is growth produced through acquisitions. They could be in form of mergers where firms have an agreement to be joined or takeover where one firm secures control of the other firm. The firm taken over usually loses its control. Another source of assistance may be from the business angels. These are people looking for opportunities where they can invest. This often involves small contributions by a person or a group of people, where the amounts are usually up to $100,000. Venture capital is another source of capital. It is where capital is pooled in form of limited companies among other investment opportunities.

Conclusion

Entrepreneurship is an interesting, profit oriented activity that without a doubt entails significant considerations. It is evident that in order to execute entrepreneurial activities successfully, the significance of information sources and assistance can not be underrated.