Role of Entrepreneurship in Venture Management



Role of Entrepreneurship in Venture Management

Introduction

There is a massive role of venture management in the process of effective entrepreneurship. Entrepreneurs that have the urge and initiative will always look to build ventures based on the resources they have and the skills they exhibit. It is not easy to start any new venture (Lerner, 2012).

A great deal of planning and research is required. Feasibilities are designed in order to ascertain the potential of the prospective venture. Entrepreneurs have to devote massive attention towards the intricacies of the venture as any one small element can significantly impact the operations of the venture. There are various risks and legal issues attached with the venture which must be thoroughly addressed by the entrepreneur (Lerner, 2012).

Discussion

Human Resource Systems and Control Process

We would specifically look at the ways an entrepreneur can design the human resource management systems as well as the legal issues he would have to face. There have been many cases of successful entrepreneurs as well as individuals that failed to exhibit effective entrepreneurial skills (Morrison et al, 2006).

The Control process is of vital importance since it is that specific system which allows one to evaluate the employees as well as identify the suggestions which can be applied in the organizational context to get rid of the loopholes. Thus we would also look at the nature of control system to be employed (Morrison et al, 2006).

Successful Entrepreneurs put stringent emphasis not only in the designing of human resource systems but also look at the effectiveness and implementation of the human resource systems. The human resource systems should be flexible enough to cater to the needs of the workforce as well as look to motivate them to a great extent.

On the other hand, effective controlling mechanisms have also been known to be an important means of checking progress of the venture. Entrepreneurs look to implement controlling mechanisms that can be considered as effective performance review systems. The controlling systems play a huge role in assisting the entrepreneurs in making informed decisions about the performance of employees. Before going ahead with a venture, it is very necessary that an effective controlling system should be planned and its feasibilities designed (Nagy et al, 2012).

First of all entrepreneurs need to decide what type of business they want to initiate and then look for the processes to be employed. Effective entrepreneurs are those that have a future oriented approach as well as a high risk taking ability.

Since today's environment consists of an uncertain nature, it is essential for entrepreneurs to demonstrate a high risk taking ability as well as a future oriented approach. An effective entrepreneur is one that has a strategic approach to operations of his business. He should not look for maximum results that should be achieved today.

He should have a strategic vision of 5-10 years and divert his energies towards attainment of that vision. Individuals that just focus on the present results would ...