The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important inputs in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy are discussed in a systematic and orderly manner as follows. Promotes Capital Formation: Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the Continue reading
General Business Articles
Enron Scandal – The Evolution of Business Ethics
Aristotle said, “The end and purpose of the polis is the good life”. Adam Smith categorized the good life in terms of material goods and intellectual and moral excellence’s of character. Smith in his The Wealth of Nations commented, “All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Ethical misconduct has become a key concern in business today. Ethics is the main area of corporate governance, and management must take responsibility for their actions on global community scale. Ethics in business and shareholders desires for profitability are not always put on the same pedestal, and it is the responsibility of the executive management to ensure ethics surpass profitability. The 2008 financial crisis initiated critics to inquire about the ethics of the executives who were put in charge of large financial institutions around the Continue reading
Exit Strategy in a Business Plan
A business plan is a written documentation of which describes the business, the objectives of the business, its strategies, the market of which the business is in and the financial forecasts. The business plan has many functions, from securing external funding to measuring the success with the business itself. It essential when starting up a business for a business to have a realistic working business plan. The last portion of any business plan is the exit strategy. It may seem strange to develop a strategy this soon to leave the business, but potential investors will want to know the long-term plans. The exit plans need to be clear in your own mind because they will dictate how you operate the company. For example, if it is your ultimate aim to get listed on the stock market, then you have to follow certain accounting regulations from day one. The sequence of Continue reading
Concept of Decisions and Decision Making Process in Crisis Management
External and Internal business environment have effects on business operations and various strategic decisions taken by organizations. If organizations are not aware about the change in business environment or if they fail to predict the change, it may create crisis for the organization. Decisions and decision-making process has important role in crisis management approach. According to Ducker “A decision is a judgment and choice between alternatives. It is rarely a choice between what is right or wrong, at best it is a choice between “almost right” and “probably wrong”- but more often choice between two courses of actions neither of which is probably more nearly right than the other” Decision-making is a dynamic process, a complex search of information, alternatives and choices. There are two approaches to modeling human decision-making; The Outcome Oriented Approach and the Process Oriented Approach. The Outcome Oriented Approach, based on the view that if one Continue reading
Why Do Small Businesses Fail?
More and more people are considering starting their own business. By opening a business there could be a large profit to be made. However, there are losses may occur as well. Some peoples argued that starting a business in a field that they know well would not fail. Knowing if starting a business at all is what most small businesses fail to consider. According to an SBA Study done in 2005, “About 1/3 of Small Businesses fail in the first 2 years, and just over half fail within 4 years.” These statistics are depressing for people looking to start up a new venture. SMEs in successful business networks can generate up to 50% more in gross revenues than firms that work in solitude. However, the most significant reason for this high failure rate is the inability of SMEs to make adequate use of essential business and management practices. Although failures Continue reading
Getting Your Degree in Business Management
If you’ve always been a take-charge type of person, working in management might be right for you. Leaders in the field hold a variety of roles including human resource managers, CEOs, and market research analysts. But before you’re able to land one of these positions, you need the right skills and also know that this is the right career choice for you. Here’s what you need to know about getting a degree in Business Management. Paying for Your Degree Before we delve into the logistics of the degree, you first need to consider the cost. Tuition will vary depending on the school you choose, whether you already have transferable credits or whether you’re attending college for the first time. If you aren’t applying for scholarships, you could cover the cost with a student loan. These types of loans can be tailored to your specific financial needs. You can use it Continue reading