1. Part V – Growth and Development of Entrepreneurial Ventures
Chapter 15 – Strategic Planning for Emerging Ventures
Chapter 16 – Managing Entrepreneurial Growth
Chapter 17 – Global Opportunities for Entrepreneurs
Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.

2. Chapter 16 – Managing Entrepreneurial Growth

3. A Venture’s Typical Life Cycle
Profit, Productivity, Revenues
New-Venture Development
Start-up Activities
Venture Growth
Business Stabilization
Innovation or Decline
Venture Development Stages

4. The Entrepreneurial Company in the Twenty-First Century

5. The Entrepreneurial Mindset
Future Goals
Change
Status Quo
Satisfied Manager
Entrepreneur
Possible
Perceived Capability
Classic Bureaucrat
Frustrated Manager
Blocked

6. Building the Adaptive Firm
Share the Entrepreneur’s Vision
Increase the Perception of Opportunity
Institutionalize Change as the Venture’s Goal
Instill the Desire to Be Innovative
A reward system
An environment that allows for failure
Flexible operations
The development of venture teams

7. The Transition from an Entrepreneurial Style to a Managerial Approach
Balancing the Focus (Entrepreneur and Manager)

9. The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus Characteristics
Administrative Focus Characteristics
Strategic Orientation
Driven by perception of opportunity
Driven by controlled resources
Commitment to Seize Opportunities
Revolutionary, with short duration
Evolutionary, with long duration
Many stages, with minimal exposure at each stage
A single stage, with complete commitment out of decision
Commitment of Resources

10. The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus Characteristics
Administrative Focus Characteristics
Ownership or employment of required resources
Control of Resources
Episodic use or rent of required resources
Management Structure
Flat, with multiple informal networks
Hierarchy

11. Understanding the Growth Stage

12. Key Factors During the Growth Stage
Control
Responsibility
Tolerance of failure
Change

13. Managing Paradox and Contradiction
Bureaucratization versus Decentralization
Environment versus Strategy
Strategic Emphases: Quality versus Cost versus Innovation

14. Confronting the Growth Wall
Successful growth-oriented firms have exhibited a few consistent themes:
The entrepreneur is able to envision and anticipate the firm as a larger entity.
The team needed for tomorrow is hired and developed today.
The original core vision of the firm is constantly and zealously reinforced.
New “big-company” processes are introduced gradually as supplements to, rather than replacements for, existing approaches.
Hierarchy is minimized.
Employees hold a financial stake in the firm.

15. Confronting the Growth Wall
A six-step program was recommended as a process for breaking through the inability to handle environmental change or trends:
Get the facts
Create a growth task force
Plan for growth
Staff for growth
Maintain a growth culture
Use an advisory board

16. Growth and Decision Making

17. Effective Delegation Effective delegation: Assigning specific duties
Granting authority to carry out these duties
Creating the obligation of responsibility

18. Achieving Entrepreneurial Leadership in the New Millennium
Entrepreneurial leadership arises when an entrepreneur attempts to manage the fast-paced, growth oriented company.

19. Components of Entrepreneurial Leadership
Determining the firm’s purpose or vision.
Exploiting and maintaining the core competencies.
Developing human capital.
Sustaining an effective organizational culture.
Emphasizing ethical practices.
Establishing balanced organizational controls.