© pearson education limited 2015em-1 chapter em managing entrepreneurial ventures

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ChapterEMManagingEntrepreneurial Ventures

What is Entrepreneurship?

Entrepreneurship:The process of starting new businesses, generally in response to opportunities.

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What Do Entrepreneurs Do?

• Assess the potential of the venture• Research the venture’s feasibility• Plan the venture• Organize the venture• Launch the venture• Manage the venture• Manage the venture’s growth

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Business Plans

• Executive summary• Synopsis business plan• Summary business plan• Fully business plan• Operational business plan

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Components of a Full Business Plan

• Executive summary• Analysis of opportunity• Analysis of the context• Description of the business• Financial data and projections• Supporting documentation

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Legal Forms of Organization

1. Sole proprietorship2. General partnership3. Limited liability partnership (LLP)4. C corporation5. S corporation6. Limited liability company (LLC)

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Organizational Structure

• Work specialization• Departmentalization• Chain of command• Span of control• Amount of centralization or decentralization• Amount of formalization

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Human Resource Management (HRM) Issues

1.Employee recruitment2.Employee retention

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What Type of Personality Do Entrepreneurs Have?Some Common Traits:• High motivation• Abundant self-confidence• High energy level• Great persistence• Moderate risk taker

The proactive personality

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Motivating Employees

Empowering employees by:

• Using participative decision making• Delegating decisions or duties• Giving them discretion over how they do their

work

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Entrepreneurs as Leaders

• Drawing out the best in people• Creating a vision for the organization• Developing teams that are empowered, self-

directed, and cross-functional

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Control Issues

• Managing growth• Managing downturns• Exiting the venture • Managing personal life choices and challenges

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Personal Challenges

Entrepreneurs manage personal challenges by:• Becoming pros at time management• Identifying competent business advisors• Dealing with conflicts as they arise• Developing a network of trusted friends/peers• Recognizing when stress levels are too high

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