Entrepreneurial Growth Flashcards
What is entrepreneurial growth?
The rate in which innovative entrepreneurs seek and find opportunities in the market and exploit them.
How is growth defined?
Birch (1995) defines high growth as a business that has achieved a minimum of 20% sales growth in a year.
Growth of an enterprise is usually associated with…
Firm success
Lifespan
Whether it has achieved its intended goals
What are the 3 main types of growth?
Financial growth
Strategic growth
Organisational growth
Define financial growth
measure of the businesses performance in serving the needs of its markets and the measure of the resources the market has allocated the firm
Define strategic growth
relates to the changes that take place in the way the organisation interacts with it’s environment as a whole
Define organisational growth
relates to the changes that take place in the organisations structure, processes and culture as it grows and develops.
What are some of the barriers to entrepreneurial growth?
Access to finance
Regulatory barriers
Access to skilled labour
Access to new technology
What is internal growth?
growth generated internally that does not require outside intervention
What is external growth?
relies on establishing relationships with parties such as strategic alliances and licensing.
Growth relates to the ….
personal choice of the entrepreneur
