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Business Growth Models

The relationship between entrepreneurial structure and firm growth is important because for one, it is widely believed that the entrepreneurs place a lasting stamp on their companies, which in turn influences the cultures and behaviors of the firms

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language english
wordcount 3693 (cca 10 pages)
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Preview of the essay: Business Growth Models

Business Growth Models The potential for growth is one of the main factors that distinguish an entrepreneurial venture from a small business. As such, business growth is critical to entrepreneurial success. This means much more than a mere increase in size. It involves the development and change within an organization, and changes in the way in which an organization interacts with its environment. A business growth model therefore is best understood in a multifaceted way, that is, the growth and development of the venture must be seen from a number of different perspectives. These are encompassed in the financial, strategic, structural and organizational growth models as put forth by Henry Mintzberg in his book ‘The structuring of Organizations’, (1979). These perspectives are discussed below: a. Structural Growth Model This relates to the changes in the way the business organizes its internal systems, in particular, managerial roles and responsibilities, reporting relationships, communication links and resource control systems. The relationship between entrepreneurial structure and firm growth is important because for one, it is widely believed that ...





... be structured, formalized and monitored and the right systems need to be found and implemented. Other considerations such as management style and the ability to manage change, not just of the system but of the entire business – especially in times of rapid change, are very important. In the end, the extent to which the business system, the people and the processes are well integrated will ultimately determine the usefulness and ensure sustained business growth.
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Economics
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