Entrepreneurship in Developing Organisations

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Entrepreneurship in Developing Organisations

Introduction

In the current era, there is a rapid increase in entrepreneur and entrepreneurship organization across the world. According to the Global Entrepreneurship Monitor (UK) report underlines that in the UK, during the beginning of 1999 more than 20 percent of the working age population either likely to start their own business within upcoming three years, some were in phase of business start or many were operating as entrepreneurs. In the year 2011, there is a drastic increase was observed in entrepreneurship organization from 2.9 percent to 4.1 percent; however, 6.8 percent is anticipated to work as entrepreneur in the upcoming three years as compared to the statistics of 2010 that is reported up to 4.6 percent.

On the other hand, entrepreneurship organizations come across a number of problems such as culture and structure, management of employees, business networking management, and business creativity. These issues need to be address and manage by entrepreneurs in an effective manner. This paper discusses how entrepreneurship organizations manage these challenges in order to strive for success and sustainability.

Discussion

Culture and Structure of an EO

Culture and structure are interconnected while organizational culture provides and includes a broad range of issues. The structure is basically infrastructure that includes practices and methods, which assists an organizational culture to carry out with the consistency and efficiency that must be the trademark of any thriving organizational structure. Structure is an integral part of organizational culture; however, it is just a segment of the culture while has own responsibility. Structure will include essentially with the set up of the culture, such as how a complaint is passed through hierarchy, which specific responsibilities supervisors have and how management works.

Organizational culture refers to a cognitive structure comprising norms, behaviors, values, attitudes and expectations shared by members working in an organization. Organizational culture assists in establishing an identity sense for workers, and thus may help in a greater probability of interlunation goals of an organization. It helps maintains stability in role interaction, communication and processes and provides status quo (Bridge, O'Neill & Cromie, 2003, pp.22-325).

There are many factors that influence organizational culture such as the working groups, the style of managers and leadership, organizational characteristics, and the environment. Formal authority created the working force. The variables that establish the group formation may be divided into situational variables (incentive and compensation system, available space and the tasks to fulfill); and personal variables (attitudes, training, experience and personality). Each employee contributes into organizational culture via behaviors attitudes and intertwining leads to the organizational culture. Likewise, the attitude of management and leadership with employees also has a negative or positive impact on organizational culture; such as if the supervisor is distant towards his assistants, may have a negative influence on culture. The organizations also varies based in attributes as complexity and attributes, it includes the size of the company (number of employees and capital) and the level of complexity exist in the ...