TABLE OF CONTENTS

1 Management in Entrepreneurship 2
1.1 Qualities of Entrepreneurs 2
1.2 Entrepreneurial Management Behaviors 3
1.2.1 Finding Opportunities and their exploitation 3
1.2.2 Resource attainment and Management 3
1.2.3 Interacting 3
1.2.4 Operational Decision Making 4
1.2.5 Inventiveness 4
1.3 Three Aspects of Entrepreneurship 5
1.3.1 Practice of Entrepreneurship 5
1.3.2 Finance of Entrepreneurship 5
1.3.3 Perspective of Entrepreneurship 5
1.4 Managing Risks 5
1.5 How Bad Leadership Offshoots Entrepreneurship 6
1.6 Entrepreneurs can’t manage- a myth or a reality? 7
1.7 Future of Entrepreneurship 7
1.7.1 Political 7
1.7.2 Social 7
1.7.3 Economical 8
 Management in Entrepreneurship
Entrepreneurship has usually been defined as the process of planning, launching and
running a new business. It typically starts off as a small business, such as a startup
company. It can be offering a product, process or service for sale or hire. The people who
do so are called 'entrepreneurs’. Entrepreneurs are the ones who initiate and build
organizations. Entrepreneurship occurs when an imaginative individual follows a
profitable opportunity.
Many people think that becoming an entrepreneur is coming up with a new idea. That is
true to some extent, but in reality, it is to know right from the start, how you will reach your
customers in an effective way.

Qualities of Entrepreneurs
Successful entrepreneurs are generally self-confident and self-motivated as it takes a lot
to start up a business from scratch. They are firm but understand their own boundaries.
Entrepreneurs do not follow established rules, and often set out to do things that others
may not have the bravery to. They are also willing to fail and start over again and learn
from their mistakes at almost each step. They also tend to learn from others failures.
Successful entrepreneurs also get help from those who have already done it before.
Entrepreneurial Management Behaviors
Entrepreneurship is a societal process that involves identifying, exploiting and evaluating,
creating new organizations and showing innovation. Such a process requires a set of
management behaviors in order to succeed. These include opportunity discovery and
exploitation, resource attainment and management, interacting, operational decision
making and inventiveness.
 Finding Opportunities and their exploitation
Entrepreneurial management requires being alert to diverse opportunities and their
potential to create a business of your own. An opportunity should be regarded as an
opportunity when the good, services, raw materials and organizing methods that go
into building upon them are less costly than their production, thereby maximizing
profits. To make sure that you’ve successfully identified these opportunities, an
entrepreneur should not only understand the market and its customers, but he should
also have a wider view of the potential industry revolutions from introduction of new
technology.
Entrepreneurs who start a successful business and continue to grow it even further,
have an external focus in what they do. The pressure on managers in the early years
is on the day to day running of the enterprise. The managers become so busy doing
that their eye gets taken off the external environment and this is where they face
problems. They become so internally focused in internal operations that their foresight
to discover new opportunities narrows down.
 Resource attainment and Management
One of the biggest hurdles in starting up your own business is the lack of capital
and resources. Resources may be in the form of capital, human capital (staff and
employees) or relations with bank managers, lawyers and accountants. The key
skill of successful entrepreneurs is the ability to control resources from outside
their organization in order to overcome internal resource constraints. ‘Dynamic
capability’ is the term given to the ability of martialing appropriate resources to
create ground-breaking responses to a fluctuating environment.
 Interacting
This includes networking of owners and managers with themselves and with larger
organizations to give each other mutual support. This interaction is very important
for an entrepreneur in giving him an idea of the external environment and
competitive behaviors such as the ones listed below:
i. Entrepreneurial watchfulness: Looking out for new opportunities by keeping
an eye on the external environment through networking
ii. Resources: Useful resources are gained through networking. The
managers want to acquire these resources in the cheapest way possible.
 iii. Route: Interaction with different people helps the manager or owner of the
business give a right path/direction towards achieving creativity, such as
Research and Development.
iv. Marketing: This approach is only possible if the owner has personal
contacts. This, is made sure by networking with different people and
organizations.
 Operational Decision- making
Effective decision making is a very important tool for planning. Making decisions
at the right times is very crucial for an entrepreneur as one wrong decision can put
a dent in his goals. Entrepreneurial management involves making decisions for
new or emerging markets, with little or no information available, for an entirely
different environment. It also requires the entrepreneur to rely solely on his ideas
and thoughts in the very first instance. They use biases or heuristics or their gut
feelings to make decisions.
 Inventiveness
Creativity plays an important role in entrepreneurship and its behavioral aspects in
many different ways. Creativity is a bigger predictor of success in life than
intelligence. Most educational institutions and businesses still value intelligence
over creativity.
 Three aspects of Entrepreneurship
Entrepreneurship management is a complex spectacle that can be explained
through the following three aspects.

 Practice of entrepreneurship
The process of entrepreneurship can be examined by the experiences and
consequences of various forms of entrepreneurial opportunity identification and
opportunity pursuit for individuals, organizations, and industries. We see a lot of
creativity in products, services and processes.

 Finance of Entrepreneurship
The financing can be seen through past experiences and consequences of
financing different kinds of entrepreneurial ventures both locally and globally.

 Perspective of Entrepreneurship
Entrepreneurs respond to different kinds of situations in which they are operating,
they do this by studying the history of entrepreneurship across many years and
boundaries and then analyze traditional frameworks of managerial action.

Managing Risk
Entrepreneurs are considered to be daredevils of the business world as they are
always looking for a new cliff to plot their next plan. Below mentioned are 5 ways
how successful entrepreneurs manage risk.
 Learn to accept and embrace hesitation
Entrepreneurs are human beings, just like us! So it is not important for them to be
natural risk takers. However, they develop this ability with time as it demands them
to be. They know that taking risk is important and if they don’t, then they will lack
innovation, achievement and rewards. They don’t take it as a problem but as a
crucial part of starting up an own business.
 Weighing chances accurately
Most successful managers tend to stay with the most basic values of risk
management. Even if they fall short and lose a certain value, they stick to it so they
could come back even stronger 20 times better. Other entrepreneurs never bet
more than they could afford to lose. This means that they always go for a plan B
(or C, D or E) in case their current plan doesn’t go according to what they had
thought.
 Chase chances where others don’t
Entrepreneurial managers don’t allow a shortage of resources to halt their way. As
Howard Stevenson, a very well-known professor at Harward Business School,
wrote that ‘entrepreneurship is the pursuit of opportunity beyond resources
controlled’. They target a need in the market and waste no time in capturing it.
 They do everything they can to make a business option about it even if they lack
resources for doing that in that point in time. To them, this is not a risk, but a golden
opportunity.
 Seeing more risk working for others
They tell themselves that working for someone in riskier than starting a business
of your own as it doesn’t guarantee them their job security. They know what they
are capable of and also have self confidence in what they are doing. They know
that they are in charge of their own destiny and if something goes wrong, they will
be responsible for it. Failing doesn’t haunt them because it was their opinion from
the get go to start a business of their own.
 Train themselves
Entrepreneurship helps them learn different skills, skills that working for others
never would’ve. It makes their work more valuable. The jobs only recruit specific
people by checking out the qualities they require for that job but that doesn’t mean
that a person lacks other qualities. Entrepreneurship helps them obtain on-the-job
training that they might not get somewhere else. This helps them while managing
their business too. They know that they can manage to become a CEO of their
business too, and this wouldn’t have need possible had they worked for someone
else. Managers learn at every step faster than he would have otherwise.

How Bad Leadership Offshoots Entrepreneurship

People may think of this as a joke in the beginning but this is actually quite true.
Bad leadership may be defined as a person having traits such as, lack of empathy
for one another, fear or hesitation to change, being too bossy and a poor judge of
character. Moreover, incompetent management can lead to a successful
entrepreneur. The question arises in the minds of many- how? By not attending to
their employees’ thoughts, and continuing to discourage their staff, bad leaders
unintentionally kindle entrepreneurship. Of course, if entrepreneurial employees
(i.e., those who have what it takes to be a successful entrepreneur by thinking out
of the box) were content at work, or at least felt that their opinions were being heard
by the top management, they would contribute to the growth in their employers’
organization, rather than setting up a company of their own. Therefore, bad
leadership whose biggest trait is incompetent management — is a major source of
entrepreneurship. In fact, a poll conducted in the United States of America showed
that much of its recent growth, technological modernization, and socioeconomic
progress was due to its clumsy and incompetent managers.

Entrepreneurs can’t manage- a myth or a reality?

Entrepreneurs who can set off startups are often not the leaders who can also
navigate businesses into the big time. When a founder does claim on managing
his ripening company, misfortune is likely to follow. Following are the 4 kinds of
entrepreneurs who most often than not, turn into lazy and lousy CEOs of their
business.
 1. They're perfectionists: They like to manage each teeny tiny bit by
themselves.
2. They're not interested in consensus or feedback: Usually the feedback they
get is misleading or not true so they are not interested in getting that.
3. They’re individualists: They like to take risks, and in the rush of getting new
things done, they mostly don’t have time to manage people
4. Their focus is one sided: This can be divided into male and female
entrepreneurs separately as male entrepreneurs tend to focus on numbers
and finance more than their fellow female entrepreneurs who are more
concerned about people and getting work done.
So, it can be said that entrepreneurs are a bit different from the usual managers
but it would be wrong to say they can’t manage because all they do, is manage,
but in a different way.

Future of Entrepreneurship
Will entrepreneurs still be there at the end of this period? Will novelty be as
important as it is today for human organizations? These are some of the questions
that may well arise in the minds of people. We can look at the future of
entrepreneurship from 3 distinct dimensions.
Political
From a global political perspective, there would be no globalized wars in the next
few decades. To entrepreneurs, the only important news is that the world will be a
relatively stable place to start new ventures in the next few decades. Having said
that, businesspersons will feel less risky to invest in potential entrepreneurs from
all over the world during the next years; even when some strong economic crises
emerge.
Social
At a social level, people would be more aware of market prices and innovation
cycles which will lead to an ever increasing competitive environment as more and
more people would like to pursue their career in it.

Economic
Economically, this will be a period of global consolidation of Capitalisms around
the planet. Moreover, rural areas will tend to gain some economic importance, as
many people usually try and keep a composed and well-adjusted life between an
urban epicenter a more natural environment, without giving up some of the places
of relief for eg markets, restaurants and connectivity. Urban midpoints are going to
grow continuously, especially where the economies are evolving and this will in
turn benefit entrepreneurs in the future.