Entrepreneurial Growth for Business Venturing - myassignmenthelp

Question: Discuss about theEntrepreneurial Growth for Business Venturing. Answer: Structures for Growth- Reflection The establishment of a new business venture is critical for the entrepreneurs and they should have the ability to develop suitable products or services that would satisfy the needs of the customers (Fisher et al., 2017). I have seen the fact that the entrepreneurs need to be skillful so as to understand the current market demands and how the business can provide value. In this self-reflection, I would like to explore the most important growth challenges of the entrepreneurs and how they are considered critical for the business entities. I would also like to discuss about the different organization systems as well as structures that a firm adopts to tackle the different growth challenges faced by the firm. I would also like to identify the different benefits as well as disadvantages of the exit strategies of the firm. If we closely observe the growth challenges of the firm, then the most important challenge concerns with the ability to correctly recognize the needs of the customers and the ability to develop customized service or product based on their requirements. In the event that these two challenges are being overcome, I have seen that the firms witness high growth rate. The rapid growth of the firm would also require an increase in the quantity of the firms operational systems. This often causes lack of planning as such decisions need to be implemented quickly. I believe that the second challenge for the entrepreneurs is concerned with the fundamental transformation. As opined by Flamholtz and Randle (2012), once the firm starts growing, it needs to undergo metamorphosis from unplanned structure to more disciplined, planned and organized entity. I feel that in this stage, the firms have a challenge of developing clearly the jobs and responsibilities of the employees so that they are able to achieve the organizational objectives. I also feel that the biggest accountability for the firms is that there is proper control system in which the measurement of the goals, measures and related rewards would be done. But in the actual scenarios, there are accountable issues observed in the firms. In the transition phase, there are problems with the on-job training of the employees, which becomes an issue since there are no formal management development programs. There is also lack of budgets for the smooth functioning of the firm (Flamholtz Randle, 2012). This is the organizational phase in which the traits or the personality of the organizational leaders are critically evaluated. As commented by Flamholtz and Randle (2012), the entrepreneurs often face great difficulty in having effective control of their business enterprise. There are some entrepreneurs who often customize their skills or behaviors in order to accommodate the changing demands of the business. There are others who rely on recruiting professional managers who can take care of the enterprise. I have seen that the recruitment process is a daunting task in which the business leaders often find it difficult to hire the most competent and suitable candidate for the job role. The above hindrances or pains are critical especially in the initial period of the business, when it is striving to gain more prominence in the market (Roberts, 1999). In the initial stages of the business, it is striving to have more organizational development, which is concerned with the efficient planning as well as implementation of the changes that are responsible for gaining changes in the overall capabilities of an enterprise (Flamholtz Randle, 2012). The organizational development is important since it is directly related with the profitability of the firm. I feel that the organizational structures should be adequate in addressing the different growth challenges being faced by the organization. The professionalism of the business system would go a long way in addressing the challenges during the growth of the organization (Roberts, 1999). The staff of the organization should be professional enough so that they can deal with the new challenges in a better way. The consolidation of the new business enterprise is also important for the purpose of addressing the growth needs of the organizations in a better way. All the business ventures should be properly channelized so that the firm can hold a strong position in the market, leading to more competitive edge (Hofer Charan, 1984). This would imply that the business would be able to manage them in a professional manner. I have also witnessed the fact that the product diversification can and diversified activities of the firm would help it to manage the organizational growth challenges in a b etter way. The integration of the firms core capabilities or the individual department is responsible for more strengthening of the firms operational capabilities. I have witnessed that governance played an important role in the addressing the different growth challenges of the entrepreneurs. The corporate governance ensures that the business gets sufficient access to the capital for its smooth functioning (Autio et al., 2014). The business should ensure that there is access to the investors so that they can adequately invest in the equity. I feel that the company founders should also be provided with adequate funds for proper growth as well as innovation of the business firm. I also think that corporate governance should ensure that the funds are equally distributed among all departments of the firm or between the sisters concerns of the same organization. I believe that the investors should be rewarded for bringing in genuine market information and the capitals should be allocated to those to whom maximum possible utilization of the resources can be done. Good corporate governance should ensure that the rewards should complement with the moni toring of the various corporate operations (Ebrahim, Battilana Mair, 2014). As opined by Collewaert (2012), the exit strategy of a firm enables the investors to extract the finances from the business ventures. These kinds of strategies ensure that there is maximum return on investment and in the long run make the business more profitable. The benefits of the exit strategy would include that it could result into high company valuation which would result in maximum sale. The risk of entrepreneurial intentions is higher for those entrepreneurs who have more goal as well as task conflicts (Collewaert 2012). They help in the better planning of the operational resources and the better operational processes. The probable disadvantages of the exit strategies, especially in the process of business acquisition is that the company involved may be restructuring the acquired business to a great extent. There are also instances of the loss of identity of the business, which often leads to a decrease of the individual business identity. The purchasing of the company would absorb the concerned acquired company and the previous features of the company would be dissolved. I have witnessed the fact that the when there is a split in the business, then the assets may get equally divided between both the partners, which may be a matter of concern between the individual parties involved. Reflecting on the overall growth challenges of the firm, I realize the fact that the firms go through a whole lot of issues while trying to gain prominence in the market. The concerned factors of the entrepreneurial activities have led to an increase in the understanding of the topic. This reflection has led to better understanding of the challenges of the entrepreneurial growth the role of governance in reducing them. References Autio, E., Kenney, M., Mustar, P., Siegel, D., Wright, M. (2014). Entrepreneurial innovation: The importance of context.Research Policy,43(7), 1097-1108. Collewaert, V. (2012). Angel investors' and entrepreneurs' intentions to exit their ventures: A conflict perspective.Entrepreneurship Theory and Practice,36(4), 753-779. Ebrahim, A., Battilana, J., Mair, J. (2014). The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations.Research in Organizational Behavior,34, 81-100. Fisher, G., Kuratko, D. F., Bloodgood, J. M., Hornsby, J. S. (2017). Erratum to Legitimate to whom? The challenge of audience diversity and new venture legitimacy[Journal of Business Venturing 32 (2017) 5271].Journal of Business Venturing,32(1), 128-129. Flamholtz, E. G., Randle, Y. (2012).Growing pains: Transitioning from an entrepreneurship to a professionally managed firm. John Wiley Sons. Hofer, C. W., Charan, R. (1984). The transition to professional management: Mission impossible.American Journal of Small Business,9(1), 1-11. Roberts, M.J. 1999. Managing transitions in the growing enterprise. In W.A. Sahlan Stevenson, H.H. (eds.), The entrepreneurial venture, pp. 377-391. Boston, MA: Harvard Business School