Entrepreneurship involves managerial functions that direct all activities related to the production of goods and services in response to people’s needs. As managers, entrepreneurs determine their objectives, plan for business programs and activities, provide needed resources and engage in sales and marketing to ensure the success of the enterprise.
Entrepreneurship Management is the process of acquiring and using human, fiscal, and material resources effectively to produces goods and services needed by people.
The Four Basic Managerial Tasks of an Entrepreneur
1. Planning – the entrepreneur lays out short and long range plans which require decisions for future action. Planning includes goal setting and related decisions about what, who, when, and how.
A well thought plans have the following qualities:
a. Adaptability – flexible enough to allow changes due to unexpected developments.
b. Objectives are specific, measurable, attainable, results-based, and time bound (SMART).
c. Problem solving and decision-making should be participatory and therefore should involve the personnel.
2.Organizing – this is the assignment of tasks and functions to individuals, units or departments. Duties, functions, and accountability of each individual or group are well-defined.
3. Directing – the entrepreneur implements the business plan. He/she monitors the production of goods or services and guides the work activities of personnel and other workers. He/she sees to it that standards in the production of goods or services are followed.
4. Controlling – this is the evaluation aspect of entrepreneurship. The entrepreneur assisted by personnel, checks on the quality of goods and services produced. Packing of materials and salability of products are assessed after the materials and products are sold.
Factors that Affect Business Ownership
Anyone who starts or buys a business is always faced with the question of whether to organize the firm as a proprietorship, a partnership or a corporation. Enterprise which was started as single proprietorship may find it better to become partnerships or corporations later as the venture develops into big business.
The decision as to what business form to follow in the establishment of the business enterprise depends upon the following factors:
1. Nature of the Business – if the business is small, a single proprietorship may be considered.
2. Capital – one major factor is the investment. If the investment is small, it has to be reinforced from the outside.
3. Number of people interested to join the business – the availability of people with capital who are interested to join a business is a factor that affects business ownership.
4. Prevailing business climate – whatever is the existing business atmosphere determines the type of business ownership to choose.
5. Management know-how – the knowledge on how to run a business also affects the type of ownership to choose because a person who ahs capital but who asks the knowledge to run a business well look for people who can mange a business to join him/her.
6. Prevailing government business policies – favorable business policies will also affect the choice of business ownership because entrepreneurs will consider incentives given by government which are favorable to a certain type of ownership.