Entrepreneurial Structures
When looking at the subject of organisational structures, entrepreneurial structures are probably the simplest and often how many organisations start.
What is an Entrepreneurial structure?
- This type of structure is built around the owner manager and is typical of small companies in the early stages of their development.
- The entrepreneur often has specialist knowledge of the product or service
- Example owner/managed business
Advantages & disadvantages of entrepreneurial structures
Advantages
- There is only one person taking decisions - this should lead to decisions being made quickly.
- As soon as an element of the market alters, the entrepreneur should recognise it and act quickly.
- A lack of a chain of command and the small size of the organisation should mean that the entrepreneur has control over the workforce and all decisions within the organisation leading to better goal congruence.
Disadvantages
- This type of structure is usually suited to small companies where due to the size; there is no career path for the employees.
- If the organisation grows, one person will not be able to cope with the increased volume of decisions etc.
Other types of structures
Most organisations out-grow an entrepreneurial structure evolving into one of the following:
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Created at 6/19/2012 5:17 PM by System Account
(GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London
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Last modified at 4/25/2013 4:43 PM by System Account
(GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London
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