Management failures in entrepreneurship Term Paper

Management failures in entrepreneurship - Term Paper Example In order to fix a failure, people should first identify what the problem is. This paper will extensively discuss and analyze in-depth about two or three of the most common failures in entrepreneurship ventures. The failures to be analyzed and discussed here relate to financing and management execution. These form part of the major indicators of the failure of most entrepreneurial ventures. An aspiring entrepreneur can avoid these so as to succeed in an entrepreneurial career, if one is intending to set out in entrepreneurship, or if one has already started a form of business of their own (Greene 20). Wrong or Misplaced Motivation of the Entrepreneur To succeed, for someone setting out in entrepreneurship, they should be profit or success motivated or oriented. Although one cannot be told his objective, it is recommended that an entrepreneur think about it, as well as all the possible incentives, many times – and thoroughly. In fact, they should go beyond monetary values. In mo st cases, for a great majority of successful entrepreneurs, it usually comes as a surprise that most of them really like their businesses, which is the main reason behind their success. This also contributes to their monetary success, thus they receive monetary gains in doing what they love. The main argument or principle here is that if anything is set out for misplaced reasons, then it is more than likely to be terminated for the same reasons. For example, if one only considers monetary incentives while setting out on an entrepreneurial venture, and if the only intention is to generate massive money, then one’s mentality will be put to a great test if zero profit is generated after approximately five years of operation. As an entrepreneur, one may want to donate cash or build a house for the needy, charity or early retirement. Whatever one may decide to do, it should be a motivation for one to keep going regardless of the tough situations he may encounter as an entrepreneur (Greene 25). Weak Management structures Numerous reports on failures in entrepreneurship view weak management structures as a major reason for lack of success by some entrepreneurs. Entrepreneurs are more than likely to fail in their business unless they make out their areas of weaknesses and look for any form of professional assistance. A successful entrepreneur comes up with a conducive work environment which encourages innovation and productivity. As an entrepreneur, one has to be good in recruiting proficient people and teaching/training them on the specifics of your business (Greene 31). Professionalism and experience are very critical in ensuring that an entrepreneurial venture succeeds. For one to succeed, he/she must recruit experienced staff/employees, who will bring in more innovative ideas to the business, hence facilitating its success to greater heights or levels in future. The modern business environment has become very competitive; hence for one to overcome the extre me market competition, he/she has to be very innovative and diverse. In the management scheme, one must be able to readily avail of marketing services. Most new enterprises just lack marketing budgets that are large. However, this is not a reason for failure to market, since if one is not doing it well, someone else more proficient in management will do it better (Greene 37). Strategic or planned marketing is very essential to the success of any business and therefore, entrepreneurs should give special attention to marketing their products, so as to make people