What is the business structure?
business structure respect to how to organize the work with respect to who makes decisions and directs any part of the business. Often drawn as a diagram, it shows the relationship between the decision-maker (s) and various departments within the company.
entrepreneurial business structure
in the entrepreneurial business structure, any decision needs to be centrally done, either by one person or at the main office, and then be informed of the results of workers . This is the most 'rigid' organizational structures, and workers do not have any opinion or contribute to the decision-making process, rather than having to just follow orders that are issued.
entrepreneurial business structure is the most commonly found in traders single with just a few employees, or organizations that have to make decisions such as faster deployment time where there is often little precious time available to discuss the matters in meetings when there is a deadline to be met. In this example, someone to make a decision quickly without the need to discuss or justify it.
to one dealer, it is the sole owner of the company often, so what they say goes. Because they own it, no one has the authority to prevent or delay their decision. While many may call for advice from people they use, they often have the idea in their minds already about what they would like to do, and that is probably just make a decision on the spot themselves.
advantages of the entrepreneurial business structure
The main advantage of the structure of entrepreneurship is the ability to make decisions quickly. Without lengthy meetings, discussions or proposals sat awaiting approval and decisions can be made largely on the spot and the changes put in place. This allows companies to quickly adapt to any change in market conditions. It is also a leadership style which is used by governments in emergency situations, with almost all countries there are existing laws that allow legislation to bypass Parliament bodies or equivalent and may be enacted when the speed and response time is a top priority.
Another advantage is that it is one of the less expensive available business structures, and in most cases, will be the cheapest option. This is because there are no layers of middle managers to pay or maintain (eg company cars).
Third, everyone knows who is responsible and who are accountable to, and remove the chances of confusion that is created if different department heads asked different things of workers (for example, head of the production department workers asking to improve product quality by spending more of time on each, at the same time chairman of the Department of Finance is asking to increase production to generate more revenue).
disadvantages of entrepreneurial business structure
Despite its advantages, there are a number of flaws in the entrepreneurial business structure.
because of the autocratic nature, with workers told what to do with any input on the resolution, and there is always a real risk, including the loss of morale and motivation if they strongly disagreed with the decision. And the extent of the frustration that depend on a number of factors such as how much power they differ, as well as the amount of interpretation (if any) they get to what made this particular decision.
those making the decisions may not know a lot about this issue, and market conditions, and so on because they think they do. While taking quick decisions, they are not necessarily the best decisions, and it may be better for business to have a director who specializes in a place that is an expert in a particular field.
as it may not be appropriate organizational structure if the growth of the business, and decision-makers simply have a lot of decisions to make. As we mentioned earlier, you can make decisions quickly in the entrepreneurial business structure. But if there were a lot of decisions to be taken, leading to the delay of different staff and wait for answers, it may actually be faster appoint a director and delegate responsibility for them to take certain decisions.
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