1. Factors Responsible for Success?
2. Relationship among Management Knowledge, Entrepreneur and New Venture?
3. Stages in the Life Cycle of a New Venture?
Entrepreneurship is among vital procedure in the contemporary economy. In present time, the big companies are focusing more on commencing new initiatives related to entrepreneurship. This is done to maintain a competitive advantage with innovative ideas with fresh as well as finest talent. Smart firms are actively catering to aspiring entrepreneurs, enabling employees to pitch their concepts as well as providing funds for the same (Jovanovic & Lach, 1997). At the same time, aspiring entrepreneurs could acquire much knowledge regarding important lessons and develop expertise about adequate manner to run a business successfully, within the big company that is guiding these skills. In addition, working for a firm prior to commencing one's individual company holds great advantages. This is because a new entrepreneur has to consider all pros and cons to take right decisions, but an individual without any training would be less efficient to handle every bit of work. So, in this assignment, we would critically evaluate that how big companies with its employees having years of experience can put an aspiring entrepreneur on the right track to become a successful entrepreneur in the future.
Commencing a new business is a significant stage in any entrepreneur's life. But, prior to taking the prime step, one needs to have certain skills and consider essential factors that are requisite to flourish in the competitive environment. Basically, at the time an entrepreneur starts up a business, a great deal of work is needed for getting the desired results. In fact, there are several factors that eventually contribute to this ratio of success. The big companies, mainly appears to be appropriate here in providing training because they acquaint individual with real and pragmatic experience than what one has learned in the books. The positive outcome of working in the companies is that an aspiring entrepreneur who is like a raw soil becomes familiar with how the whole management is handled (Jones & Coviello, 2005).
Work organizing skills: An entrepreneur is the person who keeps a record of all forms including registration, potential suppliers and employees, business plan, finance and budgeting, time management and promotion (Kim et al., 2006). The tack about all the things is kept either in paper or by using modern technology like computers and laptops. If an individual is well organized, he can handle work related to all fields properly. The big companies who are performing tasks and dealing with abundant work can provide a good experience to aspiring entrepreneurs. The practical knowledge can teach ways and trains aspiring entrepreneurs to become organized (Keeble et al., 1998).
Time management: Time management alludes to administration of time, effectually so that adequate time is allotted to an activity (Knight & Csgil, 1996). The study related to New Bain & Company depicts that lost time can result in the loss of millions every year. If an aspiring entrepreneur doesn't have the right time management skills, the company can suffer huge deficits. However, big companies like Dell, Amazon and American Express can guide a person to enhance the overall productivity for the business. The two conventional statements that states time and time wait for one as well as time is money are completely true. To have positive outcomes out of business, aspiring entrepreneurs can gauge knowledge about managing this infinite resource in the correct manner.
Building networks: Networking is a powerful strategy to escalate and maintain success in a new company. It is about developing connections and relationships with the right individuals and suppliers to expand the area of networking. Big companies are masters who have wide networking range. New entrepreneurs can learn the tactics to build and retain important networks that are required to be successful (Johansan & Vahlne, 1977).
Appropriate business plan: Every company needs a blueprint to carry out tasks in an adequate manner. An aspiring entrepreneur has to make a business plan that would encompass relevant points related to personnel requirements, marketing process, strategies and skills that are needed. But, a person without any understanding about real world cannot handle everything thoroughly. In fact, training on big companies can teach him the proficient and a dynamic business plan that is essential for an enterprise.
Controlling expenses: A business would be successful if aggregate income is higher than aggregate expenses. The expenses associated with production, promotion and other vital operations are inevitable. A beginner with no knowledge regarding the estimate costs needed in each operation can push the company in losses. On the other hand, working and acquiring knowledge regarding cost reduction can help an aspiring entrepreneur to save financial resources so they can be used in accelerating company's growth (Iyigun & Owen, 1998).
Management Knowledge refers to the strategies and approaches configured for identifying, apprehending, sharing and leveraging the intellectual strengths to improve the performance as well competitive power of a company. Today, with rise in intricacy level in the competition, entrepreneur is regarded as key asset for the enterprise. All companies require advance and innovative concepts that would take the company to new heights. Management knowledge is a basic essential source for an entrepreneur that can help to realize its exceptional significance in the market. Further, new venture and its performance depends upon the management knowledge that entrepreneur has in terms of market, available opportunities and relationships in and out the organization. Management knowledge, fundamentally, acts as an aid for the new venture to realize its areas of strengths, and the direction in which it should pursue its operations (Katz & Gartner, 1988). With this, impact related to the performance is also measured using these knowledge assets by entrepreneur in particular. Besides this, management knowledge is considered as the base of innovation which is perceived as the reason for the competitive advantage. If there is a good scale of competitive advantage, there is higher scope for new venture to be successful. Utilizing management knowledge in the new venture is not just about contemplating new products and services or enhancing their sales, it’s the knowledge associated with layouts and procedure of products, existing relationships in the company, consumer needs, market, business environment, and other organizational assets. Thus, there is an impervious bond among management knowledge, entrepreneur and new venture that needs provide coherent information regarding how a company can attain the highest level of the success ladder.
However, the complexity that exists in the above stated factors contributes in a huge manner to new business development as described below:
As we have seen, that there are multiple factors which cone together for a success of a new venture. However, new venture has to confront many challenges and opportunities too. Different issues call for distinct solutions. Identifying and surmounting common pitfalls related to success is highly significant for a business to thrive in an expected manner. Whereas, effectual leadership can create new opportunities for the future. It is true that management of a new venture is more complex than the one which is existing and have to go through many critical stages.
Starting an individual company is a very captivating thought, where a person becomes his own boss. But, it is not that easy as it involves lots of challenges that need to be undertaken. Other than this, an entrepreneur should have proper knowledge about what is to be done and how it would be done. One wrong move can cost the company in a huge manner (Madsen & Servais, 1997)
Ireland, D.R., Hitt, M.A., Camp, M.S. & Sexton, D.L.(2001)Integratingentrepreneurshipand strategicmanagementactionstocreatefirmwealth,TheAcademyofManagementExecutive, 15(1),49-64.
Iyigun, M.F.& Owen, A.L.(1998)Risk, Entrepreneurship and Human-Capital Accumulation. The American Economic Review, 88(2), 454-457.
Johanson, J.& Vahlne, J.-E.(1977)Theinternationalizationprocessofthefirm:Amodelof knowledgedevelopmentandincreasingforeignmarketcommitments,JournalofInternational BusinessStudies,8(1),23-32.
Johanson, J.& Vahlne, J.-E.(1990). The mechanism of internationalization, International Marketing Review, 7(4), 11-24.
Jones, M.V.& Coviello, N. E.(2005)Internationalization:conceptualizinganentrepreneurial processofbehaviorintime,JournalofInternationalBusinessStudies,36(3),284-303.
Jovanovic, B.&Lach,S.(1997)Productinnovationandthebusinesscycle,International EconomicReview,38(1),3-22.
Keeble, D., Lawson, C., Smith, H., Moore, B.& Wilkinson,F.(1998)Internationalization Processes, Networking and Local Embeddedness in Technology-Intensive Small Firms.Small Business Economics, 11(4), 327-342.
Kim, P.H., Aldrich, H.E.& Keister, L.A.(2006)Access(Not)Denied:TheImpactofFinancial, HumanandCulturalCapitalonEntrepreneurialEntryintheUnitedStates.Small Business Economics, 27(1), 5-22.
Knight, G.A.& Cavusgil, S.T.(1996)The born global firm:A challenge to traditional internationalization theory, in:S.T.Cavusgil and T.K.Madsen.(eds.),Export internationalizingresearch-enrichmentandchallenges(AdvancesinInternationalMarketing series,Vol.8), New York:JAI Press Inc, pp.11-26.
Knight, G., Madsen, T.K.& Servais, P.(2004)Aninquiryintoborn-globalfirmsinEuropeand theUSA.International Marketing Review, 21(6), 645-665.
Leiblein, M.J.& Reuer, J.J.(2004)Buildingaforeignsalesbase:therolesofcapabilitiesand alliancesforentrepreneurialfirms.Journal of Business Venturing, 19(2), 285-307.
Lu J.W.& Beamish, P.W.(2001). The Internationalization and Performance of SMEs.Strategic Management Journal, 22(6/7), 565-586.
Lumpkin, G.T.& Dess, G. G.,(1996)ClarifyingtheEntrepreneurialOrientationConstructand LinkingittoPerformance,TheAcademyofManagementReview,21(1),135-258.
Madsen, K.T.& Servais, P.1997.Theinternationalizationofbornglobals:Anevolutionary process,InternationalBusinessReview,6(6),561-583.
McDougall, P.P.1989.InternationalVersusDomesticEntrepreneurship:NewVentureStrategic BehaviorandIndustryStructure.Journal of Business Venturing, 4(6), 387-400.
At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.
You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...Read More
Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...Read More
Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...Read More
Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...Read More
Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...Read More