Question: Short answer question: Look at the skill set and the characteristics, what is the major reason why the roles are not compatible ENTREPRENEURIAL SKILLS Entrepreneurial

Short answer question: Look at the skill set andShort answer question: Look at the skill set andShort answer question: Look at the skill set and the characteristics, what is the major reason why the roles are not compatible

ENTREPRENEURIAL SKILLS Entrepreneurial skills are required to start or expand a business. The specific traits that describe entrepreneurship are creativity, flexibility, innovativeness, risk taking, and independence. Entrepreneurs who have a high tolerance for ambiguity and change tend to think and plan with a long-term perspective. Entrepreneurs are generally idea oriented. Those who start their own businesses are known as founders of the business, and there are two types. The first, sometimes called the artisan entrepreneur, has expertise in the technical or operations side of the business. They may have invented the product and tend to be passionat about it and confident of its success. The second is the promoter, who identifies a product or service they feel has potential and teams up with the founder to assist with initial financing or marketing expertise. Many small businesses are established following this pattern. MANAGERIAL SKILLS The skills of a manager are useful in maintaining and solidifying the existing product, service, or business. The effective manager knows how to develop strategy, set organizational goals, and develop methods for achieving those goals. Managers require skill and knowledge in several functional areas of a business, including finance, marketing, personnel, network development, research, teamwork development, and operations. Such skills are most valuable after the business has been established. As can be seen, although the entrepreneur's and the manager's skills differ, they are, nevertheless, essential for the long-run success of the business. Entrepreneurial skills help get the business started, while managerial skills help ensure that the business continues to operate successfully. Entrepreneurial skills may be essential once again to promote the growth of the business. Table 2-3 summarizes the distinction between entrepreneurial and managerial skills and the situations to which they apply. TABLE 2-3 Small Business Skills TYPE CHARACTERISTICS APPROPRIATE SITUATIONS Entrepreneurial Creativity and innovativeness Independence Risk taking Being idea oriented Generating ideas or solutions to problems Starting new business Expanding or adding new products Managerial Reaching performance objectives Maintaining control of operations Ability to develop strategy and goal setting Preferring to know outcomes of actions or activities Being a team player Ability to work through others Having skills in finance, marketing, personnel, operations A major problem associated with small business is that individuals who have strengths in both areas are rare. Because most small Page 50 businesses are started and operated by the same person, skills or characteristics that the person might lack must be found in others who are hired or otherwise acquired. Failure to do so may doom the venture. A study by the Harvard Business School found that only one- tenth of 1 percent of the ideas patented and listed in the Patent Gazette had actually made money or could be considered successful.73 This suggests that many of the businesses established to develop these ideas may have lacked the necessary managerial skills. Part 2 of this text discusses essential considerations in starting a business (the entrepreneurial side). These chapters refer to the individual as the entrepreneur. Part 3 covers the managerial skills required for the established enterprise (the management side). It refers to the individual as the owner- manager or the small business manager

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!