• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

So what's Eentreprenew?

Extracts from this document...

Introduction

SO WHAT'S ENTREPRENEW? By Melanie Low 024803819 Winter 2004 Submitted to Dr. Mary Han School of Business Management in partial fulfillment of the requirements for ENT 526 - Introduction to Entrepreneurial Behaviour February 12, 2004 Ryerson University EXECUTIVE SUMMARY This paper discusses the many issues and concerns that entrepreneurs face when hiring their first employee. For small business owners, hiring an employee can be a frightening due to lack finances and the high risk level. Therefore they must do their research in order to make an informed decision. Deciding when and whom to hire are critical factors. Timing is an important factor because the owner must have the financial means to hire and have the product demand to justify the need for a new member. The right person is also critical because it can be costly for small businesses to go through the hiring process. Losing a valuable employee is like losing an asset and can also have a damaging affect on the company. Therefore, it is important to offer adequate compensation or affiliation to the company for the employee. The First Employee discusses the many issues faced by sole proprietors when their business reaches a growth stage where they are no longer able to manage their venture single handedly. The article features Carrie Wong, owner of Practical Gourmet. Carrie has made the decision to hire a new employee to support the growth of her enterprise. ...read more.

Middle

al., 1992) and (Stines & Kliner, 2003). A second indication of needing help is if the owner is overwhelmed by tasks and finds that they are letting things "slip" (Wahlgren, 2004). Thirdly, customer dissatisfaction is a telltale sign that improvements need to be made. Contrarily, most entrepreneurs have a high level of affiliation with their business including established relationships with their clients and quality assurance by making the products themselves. The owner's involvement in these aspects of the business can be significantly reduced as the business grows. This can pose as a great risk in profits to the business. However, waiting for too long a period to hire someone can also be detrimental to the business. If these risks are properly calculated and the growth strategy is planned, the results can be very rewarding. 4.0 Other Considerations Before Hiring a New Employee It can be very costly to take on a new member. There are many aspects of hiring an employee that require careful consideration. This can include issues such as: uniforms, compensation, training, laws applying to employment, safety regulations, salaries and wages, paperwork, etc. According to Stines & Kleiner (2003), the small business owner is at a disadvantage... if the owner does not do his homework up front, the hiring of an employee can be a very expensive learning experience. Therefore, it is important that the employer decide what competencies the new employee must have and match them to the job requirements. ...read more.

Conclusion

Once Carrie found a good candidate to fill the position, she offered him a share in the profits after two years. She recognized the importance of rewarding him beyond his standard pay and gave him a chance to benefit from the growth of the business as a result of his contributions. It is also important for small business owners to realize the potential of their employees. This can be an advantage to their company if they capitalize on these assets. Borgman, (1973) suggests that by giving the employee a greater chance for involvement in the company, more responsibility and growth opportunities they will in turn invest more interest in the success of the company. 7.0 Conclusion An entrepreneurs' decision to hire their first employee can be frightening. It can be very risky and costly; therefore the employer must do their research and make an informed decision. If the correct practices and plans are employed, then the process should be less intimidating and more rewarding. The small business owner must consider when and whom to hire in order to make an informed decision. Timing is an important factor because the owner must have the financial means to hire and have the product demand to justify the need for a new member. The right person is also critical because it can be costly for small businesses to go through the hiring process. Losing a valuable employee is like losing an asset and can also have a damaging affect on the company. Therefore, it is important to offer adequate compensation or affiliation to the company for the employee. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Business options

    back some jaded anti-Symantec folks, though for some technical support may continue to frustrate Specifications: License qty: 3 PC in one household ; License type: Complete package ; Min Operating system: Microsoft Windows Vista Home Basic , Microsoft Windows XP Professional SP2 , Microsoft Windows XP Media Center Edition SP2

  2. Effective blending of Entrepreneurship and Professionalism.

    The word entrepreneur is derived from German 'Unternehmer', which means the top man and especially the owner-manager. He alone knows what the business is all about and alone makes decisions. Everybody else is essentially a technician who carries out prescribed tasks.

  1. In this coursework I need to produce a detailed business report on one medium-sized ...

    to promote and implement high standards in order to improve animal husbandry still further. Relationships with suppliers Tesco has relationships with thousands of suppliers in the UK and overseas, and works closely with these suppliers in order to ensure that products are of the highest quality and delivered in the best possible condition.

  2. Business Venture - Dance Club

    venture by myself I wont have partners and I wont be sharing the profit. But then I had to think how I am going to get all the money that I need to start my business. > Then I tough of being Partnership, we will have same responsibility, being in

  1. Are entrepreneurs made or born?

    Our education system for example - where we spend ten or more years of our childhood - does nothing to nourish our entrepreneurial spirit. Its main aim is to produce wage slaves, people who will go from cradle to school to work to bus pass to grave without rocking the boat, without bucking the system.

  2. Investigating business - Type of Ownership.

    One thing that I think both companies wanted is limited liability. Location. A location is where the business is situated. Factors that affect where the business is situated are : > Location of raw materials - Some firms such as iron and steel manufacturers, use up a lot of raw materials in making their goods.

  1. Dell - The reason for selecting Hong Kong.

    And China has rapidly increased 5.6%. It seems to be more competitive in China market. Legend is a market leader in Asia Pacific and also in China. Dell is only stay in 4th position in Asia Pacific market, it only performs stable in past few months.

  2. I have been hired as a business consultant for an entrepreneur called Sally Thomas. ...

    Business opportunities Demand Demand is usually thought of as what people want but it is not, demand is also what they can afford to buy i.e. if a man want s a yacht and he doesn't have the sufficient money to buy a yacht he does not generate demand.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work