Entrepreneurial Growth: Managing Resources, Challenges, and Strategies

This article discusses the components of entrepreneurial growth, including the role of resources such as intellectual property and human resources. It also explores the challenges of managing growth, such as communication, innovation, and long-term planning. Additionally, it covers the benefits and disadvantages of different exit strategies.

Running head: ENTREPRENEURIAL GROWTH 1
ENTREPRENEURIAL GROWTH
[Author]
[Institution]

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Reflection
Components of growth
Role of resources
According to my understanding, the growth of an organization is having a significant
impact on the internal and external factors like intellectual properties and human resources.
These factors have significant contribution in the planning and implementation of new strategy
as well as encouragement of the potential to meet the business objectives and goals. For
example, human resources influence the production by focusing on the capabilities of own and
improving compliance with the tools and technologies of the company (Fisher, 2018). I think that
the resources of the company have a significant impact on the practices to develop and deliver
high-quality products and services to customers. In addition to this, the proper distribution and
monitoring of the financial and human resource can be beneficial for an organization to maintain
the growth in the business. By focusing on the article, I can say that to protect these resources
and gain a competitive advantage, the organization could use the intellectual property rights. As
per my views, this is a valuable asset that protects the organizations from unintentional violation
and keeps the resources for the development of delivery of the products and service.
Protection of resources
According to Barringer, & Ireland, (2015), intellectual property is a major component of
the growth of the organization that helps to gain the competitive advantage through licensing,
patent rights, trademark and copyrights of the products and services. I have discovered that, the
leading organizations like Apple and Amazon are using the intellectual property practices to
manage the business as other companies or agencies cannot use their name, logo and other

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marketing initiatives for their benefits. This kind of approach is helping these organizations to
gain competitive advantage and growth in the business.
Management of human and intellectual resources in growth
In order to maintain the growth in the areas of business, the organizations are using
intellectual property rights and human resources for managing and performing the business
operations. As per my understanding, the human resource practices are having the significant
impact on the internal function of the organization to manage the quality of production and
implementation of changes to meet the organizational objectives (Autio, & Acs, 2010). I have
discovered through reading that, to keep the employees motivated and engaged in working, the
management of companies are paying extra through incentives and rewards of good
performance. This kind of approach is helping companies to maintain the growth in business. For
example, a good process is the key for good performance. Apple management is considering this
line for managing the operations and supporting the human resources that reflect in their results.
How to manage formal informal practices
It is essential for a manager or organization to maintain the balance between formal and
informal practices. For a manager, it is not easy to formalize the HR practices as the relationship
with each employee is having different goals and approaches. As per my knowledge, by face to
face meeting and interaction through telephone, the manager can manage formal relation. I have
also analyzed that, to manage the informal practices in HR, the meeting with members outside of
organization and sharing of information through personal mail can support to manage the
relationship with the team members (Kitching & Marlow, 2013). Moreover, I suggest that, the
mix of both approaches can be beneficial for an organization to encourage human resources
functions.

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Difficulties in formalize overtime
The formalization of work has a significant impact on the approach of staff members.
According to the article, the lack of consideration of the needs of the individual staff can affect
the development of formal relation and significance of the HRM practices within the
organization (McCord, 2014). Therefore, I can say that lacking in understanding of needs of an
individual affects the entrepreneurship growth in a negative manner.
Role of finance for growth
According to evaluation of article I can say that, financial resources play a critical role in
the growth of the organization as the planning of the new approaches and operation of company
needs funds. I have also analyzed that, the internal self-financing can be beneficial for the
company to maintain the growth as it offers the confidence to entrepreneur and helps in decision
making (Mollick, 2012). The proper planning of funds and venture capital can be helpful for the
manager to make the decision for investors to gain a competitive advantage.
Growth challenges
Most important growth challenges
According to article I have come to know that, the lack of communication, online
assistance and innovation in products and services can affect the growth of the organisation. To
gain a competitive advantage, it is required for the organization to maintain real-time
communication with the customer and supplier which helps to add innovation and creativity in
the business (Hofer, & Charan, 1984). Moreover, I have observed that the lack of long-term
planning affects the professional management of the firm which has a negative impact on the
business approach of the company. For example, lack of communication with the customer in
sharing of idea Starbucks was failed to gain the competitive advantage which has affected the

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growth of the company in the global market (Flamholtz, & Randle, 2007). The management of
the company was less experimental and lacking to take decisions for communicating the new
products to the customer. Apart from that, lack of structured HR practices for successions
planning as well as training and development of the staff members are significant challenges that
affecting the growth of the company (Barney & Arikan, 2001).
Now, I can say that, the consideration of these aspects is critical for an organisation to
manage internal and external operations. For example, communication with stakeholder will be
helpful to the marketing of the products and services as well as identifying the potential issues. If
an organisation fails to communicate the changes in plan, HR policies and training approach,
then it will affect their growth and decision making (Fisher, 2018). Therefore, it is essential for
the organisation to make a long-term plan, communicate with key stakeholder and develop the
strategy for succession planning. The online communication is one of the best ways of
maintaining growth in the competitive business environment, but the lack of infrastructure is
creating barriers in the success of the organisation. I have identified that, the cultural and
political changes also influence the growth of the organisation as well as create obstacles to the
achievement of goals (Lawrence, Sodahlon, Ogoussan, & Hopkins, 2015).
Organisational system and structure to manage growth and role of governance
According to the knowledge of working, I can say that every organisation has a different
structure and method for controlling the business. The management decides by considering the
structure and system based approach which requires the involvement of stakeholders to provide a
critical view of every business decision. A well-structured organisation decides with proper
analysis of pro and con which supports them to gain a competitive advantage. Apart from that,

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governance plays a critical role in managing and controlling the utilisation of resources and
implementation of the plan and strategy (Thorne, Zanca, & Furnari, 2016).
Benefits and disadvantages of different exit-strategies
The most successful entrepreneur is who plan for managing the HR function. According
to own analysis following are primary strategies for exiting with benefits and disadvantages.
Take the money and run
Pros: An individual can enjoy sum of money sooner.
Cons: Wind up the spending on saving the future.
You liquate
Pros: No worry about the transfer of money and negotiation of prices.
Cons: The reputation of a business can be affected (Uyarra, Shapira, & Harding, 2016)
Find and buyer:
Pros: Look for the excellent amount and exit the business
Cons: It would be hard to walk away as one has established the enterprise.

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REFERENCES
Autio, E. & Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial
growth aspirations. Strategic Entrepreneurship Journal, 4: 234–251.
Barney JB, & Arikan AM. (2001). The resource-based view: origins and implications. In
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Oxford, UK; 124–288.
Barringer, B.R. & Ireland, R.D. (2015). Entrepreneurship: successfully launching new ventures,
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Fisher, G. (2018). Online communities and firm advantages. Academy of Management Journal,
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Flamholtz, E.G. & Randle, Y. (2007). Growing pains: transitioning from an entrepreneurship to a
professionally managed firm , 4th Edition, pp. 48-70. San Francisco: Jossey-Bass.
Hofer, C. W., & Charan, R. (1984). The Transition to Professional Management: Mission
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Kitching, J. & Marlow, S. (2013). HR practice and small firm growth: balancing informality and
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