Entrepreneurship organization holds critical role in strategic management of how businesses run their daily activities. In this regard, it is therefore important that entrepreneurial leadership is exercised in various departments. Such leadership can create inspiring entrepreneurial environment in which attitude and behaviour change can lead to high level innovation, proactive measures, and ease of taking risks. An understanding of how to engage entrepreneurial persons is easy if corporate leaders can offer them reflective and commentary roles that would enable them succeed at the workplace.
The global business environment and social parameters are competitive and firms must remain relevant in order to sustain financial pressures and emerge with positive book values. As such, business owners must find most effective ways of creating goods and services at fastest rate and by cheapest means. That is the role of entrepreneurs. According to Ortmans, (2011), “They create value, fuelling economic growth, creating jobs, and raising income and living standards as they succeed,” (p. 23). This essay therefore looks at various ways of instituting entrepreneurial leadership within a corporate context in most effective way to achieve results for businesses.
The need for an Entrepreneurial Leadership
The recent financial crisis that has its ripple effect affecting the Euro zone has led to stagnation of major world economies and high unemployment rates that have not been experienced in the past few decades. As a result, world leaders are grouping together to discuss ways of finding breakthrough. It is for this reason that entrepreneurship has become centre of focus in rejuvenating the economy. Start-up American Partnership initiated by president Obama and Cameron’s Start-up Britain initiative are alliances seeking to develop new innovative ways of achieving quick results for new firms. These follow “data demonstrating that in the world’s biggest economy, the United States, young firms are indisputably the most effective source of new jobs,” (Ortmans, 2011, p. 23).
Entrepreneurs form part of the most important expertise in rediscovery of past economic downturns through seeding new schemes of job creation like the Star up initiatives. The success of entrepreneurial leadership in rejuvenating economies are real and this call for concrete policymaking mechanisms like the Presidential Summit on Entrepreneurship in the United States to discuss global entrepreneurship. Policymaking is supreme as entrepreneurship thrives in an environment with strong network of support.
The hardest responsibility in driving productivity high in an entrepreneurial organization is developing culture capital. As Ortmans, (2011) asserts, “It is an intangible, cultural shift that is very hard for governments and other leaders to stimulate and this is where the Global Entrepreneurship Week, (GEW) movement has contributed in an enormous way,” (p. 25). GEW has searched for emerging entrepreneurs and other critical stakeholders to mentor entrepreneurial programmes by highlighting the success of not only conventional billionaires but also new heroes like Chinery-Hesse of Ghana and Robin Li of China. Chinery-Hesse’s cyber cafes have enabled Ghanaians to get access to information and global interlinks leading to surging numbers of entrepreneurial organizations.
The success of GEW in marshalling grassroots entrepreneurial organization is and development of big ideas; for instance, the Start-ups show that there is no single formula to follow. Entrepreneurial organizations should be formed with strategies rather than plans in a bid to suppress the chaotic environment of entrepreneurial capitalism. Legislation of economic policies should therefore be goal oriented to address social and economic hurdles affecting current economies. In sum, “Not all of them will succeed, but the more we tap into the world’s human talent, the higher the chances that we will see more high-impact success,” (Ortmans, 2011, p. 27).
Latest European Union, (EU) survey on entrepreneurship show that despite 50% of the British preference for self employment, a paltry 6.8% of the entire populace is willing to take risk and stat a business (Jones, 2011). The main reason for this is fear of failure and professional inability to engage in other fields of business.
Most economies as observed in this discussion are weak due to slow performances of the financial markets. However, the private equity sector is still bullish and remains as active as ever. Looking at periods prior to and after speculative bubble, Eid, (2006) notes that “net employment creation and a host of other economic performance figures related to the private equity sector in many parts of the world remain impressively higher than figures for non-private equity-financed companies,” (p. 123). Whereas most governments focus on public equities, the private equity sector is promising. Private equities fail not because of the turbulent financial positions of world economies but because of institutional designs; lack of entrepreneurial organization (Eid, 2006). There are large number of people seeking first-time employment in the Middle East and North Africa (MENA) and this is an indication that there are many entrepreneurs in the regions. In this regard, reforming the private equity sector will be significant in renewing entrepreneurial energy; hence, the need to invest.
Social Networking and IT
A successful entrepreneurship organization will also depend on augmentation of resources like IT, market information, and the surging popularity of the social networks. Online social networking industry has undergone transformation for over 80 years following scientific and theoretical frameworks via which community interact and connect in relationships. In modern business environment, business leaders consider ways through which they can add value and make more profit by analyzing these relationships. Firms seek to navigate and find out how people connect as colleagues, associates, and friends. George, (2004) observes that, “The more advanced features allow weak links and friend-of-a-friend links to be exploited for social or business networking purposes. A user may exploit these applications to find contacts, or to understand what relationships exist.”
Every social networking site brings on unique experiences and features that can only be unlocked by exploring the existing diversity. An innovative firm must therefore target the over 400 million Facebook users in its entrepreneurial organization, (Hartley, 2010).
IT platform creates a dynamic world of business and as such, maintaining flexibility is important. Flexibility creates entrepreneurial standoff especially for a constantly evolving sectors or industry. “Since resources are to be in tune with the emerging opportunities and threats, there is a need for dynamic resource strategies to support the evolving product-market strategy,” (Ramachandran and Ray, 2006, p. 165).
Span of Control
Entrepreneurial Organisation evaluates which span of control a business should use depending on number of workers within a firm. Span of control is an area that requires in depth analysis and monitoring to be able to identify which department should employ either narrow or wide span or control mechanisms. A department that requires constant interaction between supervisor and subordinate should adopt wide span of control and vice versa. The number of subordinate staff that a supervisor can work with depends on a number of variables. Many firms in the restaurant industry should widen span of control via the fundamental principles: mutual employee-supervisor relationships, employee empowerment, and quality circles. In these ways employees are able to make decisions in relation to their work without being subjected to supervision.
Decentralised Management System
Organizational structure should be able to delegate authority via a chain of command. In a conventional organization structure, authority comes from the managing partners to vice leaders who give orders to departmental heads who in turn communicate with others in lower ranks. This organization management framework, also known as vertical management system is rigid in situation where quick decision making is needed. In addition, traditional organisation structure/centralized structure allow decision making to come from above. Authorities make influential decision without consulting the junior/subordinate staffs even on matters that may be affecting the subordinate. Modern firms use vertical management system where most junior staffs can communicate directly with top managers. Decentralized organizational structure empowers bottom leadership with decision making skills that are important in quick creation of goods and services. Morgan, (2006) however notes that organisation structure in use should also reflect operational needs of a firm.
Entrepreneurial organization that is effective should balance most of corporate components in way that creates goods and services at cheap prices, cuts on cost of production, and at a higher rate. Business entities should be innovative, proactive, and liaise with policy makers to steer socio-economic growth towards unprecedented heights. The viability of the private equity sector and despite prevailing economic situation attests to the fact that entrepreneurial organisation is critical in management. A successful organisation of entrepreneurship management should be based on strategies, which are not supreme but dictated by prevailing corporate environment.
The social networking industry is massive and given that the corporate world in moving towards social networking, it is an important facets in entrepreneurial organization. The main factors to consider before venturing into online social networking include: security, ability to connect with main stakeholders, ability to establish a network of subscribers, developing an open social platform that allow clients to make use of third party applications without losing page design, and an easy to use but diverse social network site. However, given that the IT inventions are constantly evolving, innovation is critical in determining future endeavours. A comprehensive entrepreneurial organization must be built on legal frameworks for sustainability.