ENTREPRENEURIAL MANAGEMENT: A CRITIQUE

Entrepreneurial Management: A Critique

Entrepreneurial Management: A Critique

A Critical Analysis of the Business Planning Process

SMEs continue to play an increasingly important role in the economies in the world. It Employ more than half of all private sector workers in the U.S., it is responsible for half of gross domestic product (GDP) and generate 60% to 80% of new jobs each year. By most definitions, small businesses are the companies that use less than 100 employees, while medium businesses can use up to 500 employees. Especially new business projects, which are almost always sub-small and medium enterprises, which were a popular topic of research with Birch, found that small businesses create more jobs than large companies.

Since SMEs are increasingly seen as an important source of innovation, employment and competition in the industry, the search for factors that may contribute to the success of these companies is increasing (Carter, Stearns, Reynolds and Miller, 1994, Pp 10-90). These factors are of great importance not only for scientists but also for politicians, businessmen and executives, and small and medium enterprises and, in particular, new businesses are threatened by high levels of failure and low profitability. In fact, several empirical studies show a link between strategic planning and corporate performance.

Critique on generating ideas

As organizations continued restructuring of its operations to meet new challenges and creativity of the action, and innovation that has become necessary and desirable processes, which play an increasingly important not only to help organizations grow and prosper, but to ensure their survival in the 21 century marketplace. As organizations expand the boundaries and components requirements change, administrators are faced with challenges and opportunities that are complex, and never before found. They may relate to the emergence of new global competitors in various industries, the demand for new products, services, processes and technologies, increased competition in the group of talented employees and the need to break the resolve outstanding issues and social problems. In addition, managers are finding that traditional methods and solutions have historically been used to solve many problems are no longer effective. With the recognition of control that the different approaches and perspectives in order to help their organizations survive and develop, interested in creativity and innovation has soared in recent years (Baker, Addams, 2005, Pp 15-90).

Creative thinking and behaviour that lead to successful and sustainable innovation is vital for most organizations. Managers who can effectively navigate and contribute to these processes that allow their teams, departments and organizations in business and more flexible to anticipate and respond to market changes. During the life of the company, formal strategic planning is relatively high in the beginning, when the company is still small, and is higher when the organization has reached a certain complexity due to its greater size and number of problems solved. In the intermediate levels of organization size and age, formal planning may be less necessary because the company usually based on a relatively specific business context in which there is some level of duplication and ...