Business Entrepreneurs :: Business Development

The entrepreneur is the pioneer, the managers the applier of existing best practices. The entrepreneur engages in strategic activity, the managers need to focus on tactical or operational activity. The entrepreneur formulates a strategy, the manager implements that strategy. Business success will depend on the continuing renewal and application of the entrepreneurial spirits. Business success depends on the application and an efficient management team. The attrition rate of any new business is extremely high. In the US, the supporter of the entrepreneurial spirit, numerous new enterprises will fail each year. However in a long-term historical perspective, business success is short-lived. Only a handful of the largest companies with break even status existing in any country at the beginning of the twentieth century will exist today. Even those enterprises that is likely to be unrecognizable as the original creations. The causes of small-business failure depending on the study cited ra nge from inadequate accounting systems to inability to cope. Finally Growth of underlying problem appears to be an overall lack of strategic management beginning with an inability to plan at strategy to reach the customer and ending with a failure to develop a system of controls to keep track performance.' What considerations should small business entrepreneurs keep in mind when they are deciding whether a company should follow a growth or a stability strategy? The launch of any new ventures, which is best undertaken with a detailed understanding of the resources available and the strategic actions needed to achieve project objectives. There should be an indication of what should be done in various contingencies. In other words, a new venture needs to be planned in a detailed manner. This is situation an above. Frequent lack of any such planning, even significant strategic management, will help to explain the extremely high attrition rate for small businesses in all types of economy. Companies may however, choose a stability strategy because the entrepreneur is mostly generating employment for family members. Providing the family a "decent living†, and being the "boss" of a firm small enough that he or she can manage it comfortably. Finally some business owners don't pursue a growth strategy because they do not want the loss of control that results from bank debt or the sale of stock to outsiders. Question 12 What are advantages and disadvantages of privatization of state- owned business? The privatization of state-owned business enterprises is likely to continue globally for most of these enterprises must expand internationally in order to survive in the increasingly global environment.