What is Entrepreneurial Management?

Entrepreneurial Management

The most important function of modern management is entrepreneurship. It becomes one of the main functions of corporate management.

Entrepreneurship is considered to be an initiative activity aimed at saturating the market with goods, services and for making a profit or personal income and carried out on its own behalf at its own risk and responsibility.

There are also other, narrower definitions of entrepreneurship. So, in the middle of the 20th century, the concept of entrepreneurship was formed as an activity that is aimed at implementing bold and difficult projects related to the desire to do something new or improve the existing one. At present time, it is defined as a special case of business, a kind of human activity, which carries out the business, implementing innovations, investing their own funds to the new business, taking on personal risk.

Given the various definitions of entrepreneurship, the following main motives for entrepreneurial activity can be formulated:

  • Personal enrichment
  • The desire to become the master of their business, to make decisions freely, to own and dispose of income independently
  • Self-realization, i.e. development and the best use of one’s abilities
  • Desire to take risks, play

Engaging in specific entrepreneurial activity presupposes the existence of certain conditions:

  • starting capital for the formation of the authorized capital of the enterprise
  • a free market that ensures the movement of all factors of production, openness, and accessibility of the market for all, free pricing
  • legal protection and guarantees regarding property, income, rights, and freedom of entrepreneurs
  • knowledge, practical skills, cultural development
  • benevolent public opinion
  • detailed information about competitors
  • the right choice of legal forms and geographical location of enterprises.

Entrepreneurial activity can be carried out by legal entities and individuals, with and without hired labour. The number of employees is not limited. The distinction between legal and physical persons is the fact that an entity is responsible only for its balance sheet assets for the debts. Individuals are liable for debts with all their property.

Entrepreneurship precedes management. In other words, the business is organized first, then its management. The scope of business includes the development of entrepreneurial ideas, research resources and the definition of ways of their effective use. The scope of management covers processes to ensure the efficient use of resources.

Management includes the implementation of the functions of planning, organization, motivation, control, as well as the connecting processes in the activities of the company, namely communications and the adoption and implementation of management decisions. Thus, the entrepreneur and manager have a number of common features. It finds its expression in the entrepreneurial behaviour of the manager: in order and ways to achieve them, incentive system, information used, management style and methods, etc.

The goal of genuine entrepreneurial behaviour management is not just getting the current profits and optimize profitability potential. To ensure a profit for a sufficiently long period of time. Indeed, entrepreneurial behaviour has nothing to do with the predatory use of production and labour potential. It provides a long-term and sustainable company existence.

The entrepreneurial incentive system provides for remuneration for creativity and initiative, unlike other incentive systems that provide incentives for past activities and the stability of results. You can also follow the path of the pioneers of this field like Brian Paes Braga and others in order to learn more. Canadian Entrepreneur Brian Paes-Braga serves as a Partner and Managing Director at Fiore Group, a leading merchant bank which builds, invests finances and advises firms in the natural resource, technology, food and beverage and entertainment sectors.

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