The word “entrepreneurial” is an adjective and used as a host of different contexts. It embodies a large variety of implications and meanings. For example, J.J. Kao is of the view that “entrepreneurial management” in an Entrepreneurial Organization, can refer to the mindset, concepts, and skills that tends to operate large corporations and with greater flexibility, responsiveness and innovation.
However, entrepreneurial knowledge is limited to only mindset, concepts, and skills that every business owner holds in order to start and operate high growth and potential ventures.
Entrepreneurship normally operates in an entrepreneurship ecosystem. That ecosystem mostly includes government programs and the services they provided and then promote entrepreneurship. These programs support the entrepreneurs in startups, non-government organizations like small business associations as well as those organizations that are offering and advice and monitors entrepreneurs i.e. via entrepreneurship websites or centers, small advocacy organizations that are providing support for programs and other small business related laws and regulations, resources and facilities related to entrepreneurship i.e. seed accelerators and business incubators, educational and training programs that are offered in schools, colleges, universities and other institutions, and financing i.e. venture capital financing, government and private grants, bank loans and angel investing. The strong ecosystems can be found in large entrepreneurship hubs like New York city, Singapore, Boston, Silicon Valley, and other locations where clusters of high-tech firms exist, venture capitalists, and top research universities. Since 2010, entrepreneurship has been studied in colleges and universities as part of the business administration or management.
Corporate Management vs. Entrepreneurial Management:
Managing a new venture is different from managing an existing venture along with key management issues. These are as follows:
- Management structure
- Commitment to opportunity
- Control of resources
- Strategic orientation
- Commitment of resources
All the entrepreneurs are born with all these skills. These skills come from people having creative skills, great heart, and intelligence. They are self-confident and visionary, good communicators with infinite energy, and filled with strong passion.
Fortunately for those people who are born with these skills can learn the critical skills to launch and run a new venture. Some of them are discussed.
Entrepreneurs are involved directly in dynamic as well as the complex relationship between business strategy and financial management. This is a notable difference that keeps distance between entrepreneurial management and business management. In all cases, the person who is making the decisions is at risk.
In the worst case, the folks or persons at work may be fired. For entrepreneurs, the worst is losing the home, lifestyle, personal credit, and even destruction of relationships.
The entrepreneurial management is juggling the vital management issues. These are as follows:
- What the new venture is about? (Set mission and values for the venture)
- Where should it go? (About goals and objectives)
- What does it need? (Decide people and resources)
- How will it be there? (The strategy for growth)
- What will be the structure? (Capabilities of the organization)
- How much and when will the money it need? (Financing)
- How will the destination be recognized? (Success vision)