Training Strategies for Entrepreneurs: A Critical Analysis (MHCE)

This report critically analyzes training strategies for aspiring entrepreneurs, focusing on the role of human capital management and the effectiveness of programs like those offered by Hewlett Packard (HP). The report examines the 'hungry start-up' strategy and its relevance to entrepreneurs, along with the importance of Learning and Development (L&D) models. It delves into the system, transitional, and instructional system development models used in entrepreneurship training, emphasizing the need for practical knowledge and decision-making skills. The report highlights the importance of training in setting goals, selecting markets, and managing resources for both large enterprises and start-ups. It stresses the significance of market research and the application of strategies like the 'hungry start-up' approach to enhance entrepreneurial capabilities and foster business growth. The analysis underscores the importance of continuous improvement and adaptation in training strategies to meet the evolving needs of entrepreneurs.

Managing Human Capital and
Entrepreneurship – MHCE
(Part 1)

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK .............................................................................................................................................1
Literature Review and Critical Analysis..........................................................................................1
Critically analyse theis statement and examine whether training strategies are useful for
aspiring entrepreneurs. ..........................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

PART 1
INTRODUCTION
Human capital is considered as the most essential element which plays big role in
conducting all business operations in effective and efficient manner. Entrepreneurship is defined
as a process which results in creation of new venture that meets specific needs and develop value
for business (Johnson, Schnatterly and Hill, 2013). Entrepreneurship is also referred as the key
driver of economic growth as it leads to the wealth and job creation. Human capital has emerged
as an highly applied theoretical lens by which an individual can better understand
entrepreneurship. The appropriate management of human resource capital are essential for each
small as well as large business enterprises in respect to assisting the operations of the firm in
right direction. Hewlett Packard is the chosen organisation for this particular report. HP is an
American multinational information technology company. The headquarter is in Palo Alto,
California. HP conducts a world wide program for entrepreneurs which helps in providing
training for the small business owners, students and entrepreneurs who wants to get growth and
development in different segments. This report studies about the training strategy which are
useful for aspiring entrepreneurs and the implementation of the training strategy which is
effective in enabling an individual to become an entrepreneur.
TASK
Critically analyse the statement and examine whether training strategies are useful for aspiring
entrepreneurs.
According to Cohan, Peter S , 2012, “Aspiring entrepreneurs should look out for big
companies in which to train by following the hungry start-up strategy of big companies as start-
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up training grounds”. Entrepreneurs are very much concern on aspiring the training strategies
which are used by the large business enterprises in respect to assisting the business in right
direction. Entrepreneur is considered as a key term in economy from the past decades and it has
a great influence on the economy. Entrepreneurs are mainly focused on developing their
knowledge base in respect to attaining higher growth and success within the market place. The
major purpose of entrepreneurs is to accomplish higher growth through taking active
participation in the training processes which are provided by the large business associations for
the aspiring entrepreneurs (Mitchelmore and Rowley, 2013). HP is a large American
multinational company and deals in variety of hardware components and software as well as
multiple related services to the buyers, medium and small size organisations. As a popular
business enterprises HP conduct a worldwide program for entrepreneurs, medium and small size
business owners and students in respect to enhancing their knowledge base through the
procedure of effective training. In the modern business environment, entrepreneurs are majorly
concerned on increasing their skills and knowledge base through taking effective part in the
programs which are conducted by the large business associations in regards to providing
appropriate training to the entrepreneurs and create various opportunities for the people. HP
creates jobs within persons trainings, e-programs, tools and skills workshops through applying
the tool and technology of HP, thus the courses are very much interactive and based on real life
challenges in business.
Peter S. Cohan, 2012; has implemented an effective hungry start-up strategy for apprising
entrepreneurs. Peter defines that entrepreneurs are hungry not because they are living on ramen
and adrenalin while they pour their all into their business. Peter Cohan has found it’s something
deeper as a hunger to create the kind of world they want to work in. The major motive of
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entrepreneurs is to maintain their capital in respect to conducting all business operations in
effective manner. Cohan concern in six key start-ups choices like setting goals, picking markets,
raising capital, gaining market share, building teams etc. The major purpose of each business
enterprises is to satisfying the desires of people in respect to attaining higher growth and
profitability. Entrepreneurs are concern on taking the idea from the large business firms as to
setting up their own venture in respect to generating more revenue and profitability (Bratton and
Gold, 2017). Training is required for each individual, thus the large business organisations are
concern on providing training to their existing as well as new employees in order to developing
their skills and ability to work with proper collaboration of employees. For example: At the
situation of setting goals, big organisations are seeks to enhance the return on equity rather than
business start-ups must focus on attaining key milestones the attainment of that will make a huge
difference. On the other side, entrepreneurs are concerned on using the tool of prototyping in
respect to gaining feedback from customers as to producing more reliable goods and services,
which are effective in satisfying the needs and wants of customers at market place. At the time
of entering into a new market, large business organisations are spending substantial time and
capital before introducing a product of services. On the other side hungry business start-ups
needs to get an adequate prototype in front of buyers, getting feedback and quickly develops a
viable organisational model or they will starve to death.
As per the opinion of business start-ups CEOs, capital providers and start-up experts; the
strategy of Hungry Start-ups provides entrepreneurs a decision making tools for the each of the
six key choices and represents how original entrepreneurs have used them. Resources are
considered as the most important sources which are effective in conducting the business
operations in effective and efficient manner. For a business start-up, it is essential to maintain
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capital resources in order to maintaining the appropriate flow of operations. Entrepreneurs are
focused on taking training from the large business ventures as to enhancing their practical
knowledge. HP provides world wide facilities to the entrepreneurs as to taking participation in
the training process and develop their capabilities to taking effective decision (Haynes, Hitt and
Campbell, 2015). This create value in providing various opportunities to the entrepreneurs in
respect to taking ideas of start a new business venture. For example: an entrepreneur has planned
to set up a new business and introduce an advance and new mobile phone as to capturing a wide
area of market. NIX Communication Group is a small telecommunication services provider
across the UK. The start up set their outlet within the city area where various brand shops are
present. The decision making power of entrepreneur has a huge influence on the operations of
the firm. The business has fail to grow because of having improper knowledge about market
situation and existing rivals strategies due to which the decision of entrepreneur was found
wrong. Thus it is essential for an entrepreneur to analyse the market situation through
conducting proper research in regards to the competitors strategy, current market situation, trend
customers choice and preferences etc. before setting up a new business. The decision of
entrepreneur was wrong as the customers are mainly attracted towards the firm which are having
a high brand name, so it is required for the start up to select the appropriate market in which the
demand is high.
The hungry start-up strategy is considered as the most appropriate strategy in which large
business firms are providing training to the organisational employees and the entrepreneurs who
are taking participation in the training practise as to increase their skills and norms. Training is
the fundamental need of each individual as it is essential for the firm to provide appropriate
training to their significant employees in respect to performing all the operations of the firm in
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appropriate way (Wright and Stigliani, 2013). Hungry Start up strategy promulgates certain
“currently useful generalizations,” which are more useful to the large corporate enterprise than to
the entrepreneurial, emerging organisations that disrupt the status quo, drive economic growth,
and create job opportunities for the people. The potential aim of large business enterprises is
to attaining higher profitability and revenue at market place, instead of the significant motive of
small start-ups is to capturing a wide area of market through offering satisfactory products and
services to their potential buyers.
The hungry start up strategy is effective for the entrepreneurs to taking appropriate
training through the practical practices which are held within the large business enterprises, this
provides an appropriate assistance to the entrepreneur to start a new venture through analysing
all the norms or the market. This strategy is also effective in providing a practical knowledge
base which helps the entrepreneur in taking effective decisions in regards to the profit of firm.
Training is the primary aspect for each individual as some people are very much goal oriented in
nature and they are having their own motive and objectives and for attaining them people are
very much concern (Stam, Arzlanian and Elfring, 2014). This kind of hungry start up strategies
are effective enhancing the knowledge base of people who are very much willing to develop
their skills in the area of new business start-ups. The major importance of this strategy is to
developing the knowledge base of entrepreneur or individuals as assist them towards starting up
a new business which is effective for the development of economy and also create various
opportunities for the people.
Entrepreneurs are widely concern on developing their capabilities through gaining proper
and appropriate knowledge through the training sections which are provided by the large
business organisations. L & D is eventually stands for learning and development strategy which
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is mainly focused on helping people to new new skills, so as to feel encouraged and productive at
work place. This considered as the vital tool which is used by organisations as to align training to
their employees by keeping in mind the end results and objectives. It ensures that the staff
learning and development needs are properly met and organisational skills requirement for the
senior management are being enhanced. In this tools the higher authority and HR are concern on
providing appropriate guidance to their employees as to moving forward towards right direction
to attain organisational objectives. This method is effective for entrepreneurs to gain proper
knowledge in each department of the firm so that they can use their knowledge in implementing
all business operations in effective manner. Proper management training also helps in reducing
the chance of conflict as the tool of L & D is effective in developing the practical base of people.
There are three different models of training that are used by Hungry start up strategy and
help the entrepreneurs to develop their entrepreneurial skills and help them to expand their
business in all around the world. These models are system, transitional and instructional system
development model.
The first model is system model that consist five different phases, it is suggested that it
should be repeated to make continuous improvements. The purpose of this training model is to
provide such skills to the entrepreneurs that will lead them to help their employees and perform
their work more effectively. First step of this model is to identify and analyse training needs of
entrepreneurs. In this step it is observed that what are the things that needs to be learnt by the
entrepreneurs to develop their performance level by comparing it to current level of their
performance.
Next step in this model is to design the training sessions according to the identified needs
of entrepreneurs. In developing phase the organisers of training program has to develop different
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activities that are going to be conducted while training program. When all the activities are
developed than organisers have to implement all the planned strategies of training program, it the
most complex part of training program because one wrong step can lead the whole program
toward a huge failure. Last step of system model is to evaluate the whole training program's
strategies. In this phase the organisers identify the success level of training program and make
sure that determined goals are achieve in training program.
Second model of training is transitional model, it focuses on whole organisation. There
are two different loops in this model first one is inner loop and another is outer loop. In outer
loop all the mission, vision and values of an organisation related training is provided so that it
will help the entrepreneurs to determine that their decided vision, mission and objectives are
relevant and good for the organisation or not in inner loop the trainers provide training to identify
that how organisation is performing the operational activities in order to maximise profits. In
Vision it is described that vision is a focus of an organisation which is going to be achieved after
reaching to a definite point of time.
A vision statements of an organisation provides the information of where the organisation
see it self after few years. It also include the process of setting s role model in which a company
reaches to its vision and achieves the same which help it to become a role model. This will help
the organisation to bring transformation in industry and reaching to the set goal. Mission is an
element that describe the reason of existence of an organisation. It help to identify the position of
a business enterprise in the community or related industry. The reason behind setting a mission
for an organisation is to motivate, inspire and provide information to the employees related to
business. A mission statement help to identify that how an organisation is going to meet the
objectives, needs and demands of customers, stakeholder like suppliers, inventors, shareholder,
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government and employees. Value is translated form of vision and mission which is converted in
communicable ideals. It dictates the deepen help values of a company and independent industry
environment. It includes social responsibilities, enhanced customers services. All the three
mentioned elements of this model help the entrepreneurs to set right vision, mission and values
for their organisation which will help them to achieve their goals and objectives. This model is
followed by hungry start up strategy to train different entrepreneurs to enhance their
entrepreneurial skills.
Last model which is used by the training organisation is instructional system
development model which was introduced to find solutions to training issues and problems. This
model is mainly used by the training companies as it is concerned with the identification of
training problems and help to identify the level of performance. Training objectives are defined
under this model and based on the nod responsibilities and description. In this model individual
potential of progress is measured. This help to develop different strategies to provide best
training to the entrepreneurs and best business plans. The process of this model is divided in five
different phases. First phase is analysis, in which trainers provide training to the entrepreneurs,
how to identify they needs of assessment, target audience and job analysis to attain more clients
for their business. Another phase is planning, in which entrepreneurs learn how to set goals for
their business and what are the main objectives to be set for their business.
Next phase is development in which training material is designed by the organiser of the
training program and they decide that how to make the training session effective. It also include
tangible training material like handouts, visual aids, work books and other course material which
is required to be presented in training program. When development phase ends execution phase
starts. In this phase trainer focuses on the logistic arrangements for the training. These logistics
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consist different things such as speakers, food, lights, fans, parking facility to the trainees,
different training accessories. The last phase is evaluation in which the trainers evaluate that how
the whole training program they take feedbacks from the trainees. The success level of training
program is measures in this stage and make plans according to the session that what are the
improvements that should be made in next training program to make the training program more
effective and increase the quality level of whole training session.
All the three mentioned training models are used by hungry start up strategy to provide
valuable training to the entrepreneurs who came to attend training program and enhance their
skills by providing best training. This will help the entrepreneurs to implement new and
innovative ideas in their business to get huge success. Training programs are the best way to
provide valuable information to the new business man who are willing to launch new business or
trying to expand their business.
Training strategies are important and useful for aspiring entrepreneurs in a direct and
systematic manner. It is refer as an designed to accomplish an educational and professional goal,
such as learning an unique skills and updating workers on modifying to business policy. As per
the point of view of Cohan, (2012) entrepreneurs are hunger but it is not just because they are
residing on adrenaline and remen while they move their entire into their business. There are
mainly three types of strategies which are useful for promoting and inspiring the entrepreneurs to
start their business and improve reputation at marketplace.
Create more training programs that promote and encourage personal confidence and
growth of entrepreneur. It is essential and significant for the entrepreneur to start their new
business. In this an entrepreneur attend the training program arranged by hungry start-up
strategy. It is useful and beneficial strategy or program for the entrepreneur to increase their
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knowledge and skill about how to start business. Cohan emphasis on six core start-up choices—
picking markets, setting goals, raising capital, gaining market share, adapting to change and
building teams. It is also explaining why and how start-ups must make more various choices than
established business. For each and every area, they gives a decision-making methods and lively
case studies of what real entrepreneurs have completed to cook up a booming business
operations from scratch.
Most of the time period posses an in detail knowledge and skill of marketing,
management, accounting, legislation, finance and the remaining entrepreneurs that do not have
idea because they mainly emphasised on the technological prospect of the company. Furthermore
specify to have training with business is must for a successful entrepreneur. Hungary start up
strategy is refer as a book in this an author introduce the hungry word with business world and
corporative market which effect what they really hungry for in forms of business.
As per the point of view of Cohan, 2012 entrepreneurs can acquire advantages or benefits
from large organisation such as operates duel company, blend the strategy, self cannibalize with
existing large business and start-up. There are another advantages such as focus on extreme
clients, learn from failure, leading clock speed in process of decision-making and so forth. Such
there are no doubts or uncertainty that entrepreneur required training. Thus, there is no hush-hush
in forms of start up there is different of risks.
Aspects of without having training strategies in organisation:
It is required to have accurate training strategies for entrepreneur but it is not necessarily
required to have accurate training with large organisation. Entrepreneurs are also known as
innovators and there is required of innovative and creative person so they can obtain chances in
small business in easily. In large enterprise there are different specialist division so they employ
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