Running head: ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
(Complete summary)
Name
Institution
Course
Tutor
Date
, Entrepreneurship: The Social and
Business Revolution
1. Introduction
One outstanding driver of small businesses in today’s world is the global
connectivity – an increasingly complex world full of interconnections formed
by a global marketplace linked by new technologies that allow instant
communication from almost anywhere.
The ability to create new sources of competitive advantage quickly, again
and again, is proving to be the only sustainable source of real competitive
advantage while the new age brings social pressures and corporate social
responsibilities.
2. An Age of Change and Opportunity
Change in CSR as an opportunity to be ethical and improve
competitiveness by differentiation.
The move to a knowledge economy has meant that economies of scale
have become less important as a form of competitive advantage; small firms
are able to deliver a more personalized, flexible, service at local level; higher
proportion of high-growth firms (‘gazelles’) hold IP and intangible assets.
Technology has influenced the trends in three ways:
, 1. New technologies have been pioneered by new, rapidly growing firms.
2. Easier communication allows growth of smaller businesses and smaller
market segments to be served 3. Technologies have reduced fixed costs so
production can be profitable in smaller, more flexible units; beneficiaries
of outsourcing activities of large firms are small firms; cheaper distribution
network.
Market niches are becoming slimmer and markets more competitive;
better served by smaller firms; new technologies mean that these niche
markets can be attacked globally, making them economic (‘international
start-up’).
Social trends have accelerated the growth of small firms; after periods of
high unemployment, people see self-employment as more attractive and more
secure than employment.
3. Managing Change and Uncertainty
In contrast to smaller firms, larger, more established firms find change
difficult to deal with and threatening.
Larger firms became leaner to reduce risks and fixed costs, e.g. by outsourcing
activities to smaller firms; small firms may seen as dependent on large ones.
, Traditional management’s core problem is that it focuses on efficiency
and effectiveness rather than on creativity and innovation – control rather
than empowerment.
4. The Entrepreneurial Revolution
Small firm create more jobs than large firms in the U.S.
Entrepreneurship has become something that society, governments and
organizations of all sizes and form wish to encourage and promote; small
firms are the catalysts for economic and sometimes social change.
5. Entrepreneurial Management
Entrepreneurs have a different approach to dealing with risk and
uncertainty; at the core is a very personal approach to management
emphasizing that a new business is a social entity built around relationships
and around one person, the founder, whose personality affects the business.
Successful entrepreneurs are good at developing relationships with
customers, staff, suppliers and all stakeholders in the business; manage
informally to increase flexibility, setting an example by behavior; danger of
overdependence on the founder and too little delegation of authority as it
grows.
Decision-making incremental (limited launch to see if opportunity is real)
and short-term; capital investment and fixed costs as low as possible, e.g. by
subcontracting activities; network of personal relationships as early warning
for risks or opportunities; compartmentalizing risk (e.g. separate legal entities
to limit risk).
ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
(Complete summary)
Name
Institution
Course
Tutor
Date
, Entrepreneurship: The Social and
Business Revolution
1. Introduction
One outstanding driver of small businesses in today’s world is the global
connectivity – an increasingly complex world full of interconnections formed
by a global marketplace linked by new technologies that allow instant
communication from almost anywhere.
The ability to create new sources of competitive advantage quickly, again
and again, is proving to be the only sustainable source of real competitive
advantage while the new age brings social pressures and corporate social
responsibilities.
2. An Age of Change and Opportunity
Change in CSR as an opportunity to be ethical and improve
competitiveness by differentiation.
The move to a knowledge economy has meant that economies of scale
have become less important as a form of competitive advantage; small firms
are able to deliver a more personalized, flexible, service at local level; higher
proportion of high-growth firms (‘gazelles’) hold IP and intangible assets.
Technology has influenced the trends in three ways:
, 1. New technologies have been pioneered by new, rapidly growing firms.
2. Easier communication allows growth of smaller businesses and smaller
market segments to be served 3. Technologies have reduced fixed costs so
production can be profitable in smaller, more flexible units; beneficiaries
of outsourcing activities of large firms are small firms; cheaper distribution
network.
Market niches are becoming slimmer and markets more competitive;
better served by smaller firms; new technologies mean that these niche
markets can be attacked globally, making them economic (‘international
start-up’).
Social trends have accelerated the growth of small firms; after periods of
high unemployment, people see self-employment as more attractive and more
secure than employment.
3. Managing Change and Uncertainty
In contrast to smaller firms, larger, more established firms find change
difficult to deal with and threatening.
Larger firms became leaner to reduce risks and fixed costs, e.g. by outsourcing
activities to smaller firms; small firms may seen as dependent on large ones.
, Traditional management’s core problem is that it focuses on efficiency
and effectiveness rather than on creativity and innovation – control rather
than empowerment.
4. The Entrepreneurial Revolution
Small firm create more jobs than large firms in the U.S.
Entrepreneurship has become something that society, governments and
organizations of all sizes and form wish to encourage and promote; small
firms are the catalysts for economic and sometimes social change.
5. Entrepreneurial Management
Entrepreneurs have a different approach to dealing with risk and
uncertainty; at the core is a very personal approach to management
emphasizing that a new business is a social entity built around relationships
and around one person, the founder, whose personality affects the business.
Successful entrepreneurs are good at developing relationships with
customers, staff, suppliers and all stakeholders in the business; manage
informally to increase flexibility, setting an example by behavior; danger of
overdependence on the founder and too little delegation of authority as it
grows.
Decision-making incremental (limited launch to see if opportunity is real)
and short-term; capital investment and fixed costs as low as possible, e.g. by
subcontracting activities; network of personal relationships as early warning
for risks or opportunities; compartmentalizing risk (e.g. separate legal entities
to limit risk).
