Monday, June 13, 2016

How to Manage the Economic Entrepreneur

The entrepreneur is perhaps the most important type of person in economic society as we know it. People who create and develop new opportunities by finding solutions to problems and enhance business opportunities. Entrepreneurs have a certain mindset that is very different than the average person which allows them to succeed and achieve. Managing the economic entrepreneur requires a different approach that hedges and enhances their skills.

Entrepreneurs are optimistic and promotional oriented but also can be un-realistic and irrational (Clapp & Senson, 2015). They seek the optimistic outcome to nearly every challenge. What provides them an opportunity to succeed in tough situations could cost a company a lot of money if done wrong.

 This opportunism is great for breaking open whole new ways of doing business that can lead to higher profits and stronger revenue lines. To make these breakthroughs possible there needs to be many failures that result in learning and improved efforts. Companies cannot always afford the cost of these failures.

Managing an economic entrepreneurs spirit while not allowing your company to go bankrupt in the process can be helped by using teams. Teams better ensure the entrepreneur doesn't act in a rash or overly enthusiastic manner without considering the merits of such ideas. Using highly skilled people in the topical area helps to make novel ideas practical.

These teams act as knowledge groups that filter ideas through their own experience and understandings before allowing them to proceed to a point where company resources must be used. The team votes on ideas and solicits opinions and ideas from other experts when necessary. If gives the economic entrepreneur the free hand to think with the protective knowledge of a group of experience professionals.

Clapp, B. & Swenson, J. (2015). Entreprenuers, innovation and the hidden costs of optimism. Business Journal of Entrepreneurs, 3 (78)

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