Managing Entrepreneurial Growth

Assignment 1A - Literature Review Component

Introduction

The name of the entrepreneur is Edward H Stroud, who owns the Wavenet International Limited. This company is about sourcing and investing in coal mining tenements in a few areas of Queensland. Edward has been the director of Wavenet International Limited since December 1999, Non-Executive Chairman since October 2002 and Executive Chairman since May 2008 (Wavenet 2011).

Managing entrepreneurial growth

Life Cycle Stages

New venture development is related to primary formulation of the venture that mission, vision, scope, direction and philosophy are determined at this stage (Frederick and Kuratko 2010, 477).

Strategic and operational planning is designed; cooperation’s competitive advantage is identified and funding sources are discovered at the second stage, named start-up activities. Numbers of challenges shall occur, such as generating a formal business plan, the search for capital, developing marketing activities and forming an entrepreneurial team (Frederick and Kuratko 2010, 477). The challenges are continued, as entrepreneurs require to discover the right person to do all this task, delegate tasks correctly and fairly to every employee, the possibility in the lack of financial funding, establish a benchmark to examine all the tasks are done in standard and so on.

The growth stage tends to be the paramount in the life cycle stages. If entrepreneurs are staying at the same level and are not motivated to expand their venture, eventually they might leave the enterprise. At this stage, reformulation of strategies and transition from an individual-leadership to a managerial-team-leadership are necessary (Frederick and Kuratko 2010, 478).

The fourth stage is business stabilisation. Developments occur and innovations are required at this stage because numbers of competitions are on the rise too. It is considered as a swing stage because either the business turns out to be profitable or vice versa...