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

    These are collated by store and go through a delivery scheduling system which plans the most efficient delivery route, and are then transmitted to the stores for packing and delivery. The Clubcard system enables staff to deal with customer queries related to the service.

  2. Effective blending of Entrepreneurship and Professionalism.

    We face a period of innovation such as the one in which the modern industrial economy was born in the last half of the nineteenth century. Practically, all the industries that we consider modern today including aircraft and electronics grew out of these innovations in the late 19th and early 20th centuries.

  1. Business options

    Should casual internet users be worried about internet security or is it just people who purchase online and use the internet a lot who should be worried? A. If you are connected to the internet you are at risk of your computer being hacked into and altered or someone

  2. Developing an informed understanding of issues surrounding the concept of corporate responsibility.

    CR and sustainable development is not a new name for redistribution of wealth, it is a forward thinking strategy that will ensure that the greatest number of people can benefit from the free-enterprise system. CR is big business. It is not just another passing trend, but is the direction which

  1. Business & Sustainability

    In so doing, it will help me to understand the complex world of business. I' am required to make balanced judgements, conclusions and recommendations. This assignment aims to develop my research, analysis and evaluation skills, including the collection and interpretation of information from secondary (and sometimes primary)

  2. Business Venture - Dance Club

    o Repayable Sources such as bank loans, business angels and venture capitalists. Having non-repayable financial sources means that you will put your own money in the business and if you lost them you cant take them back, but if you make enough profit you might take them.

  1. E1- The classification of the business according to its ownership, and an explanation of ...

    If a private limited company wishes to become a PLC, then it must change its Memorandum and Articles of Association and re-submit them to the Registrar of Companies. If the company is considered to have acted legally and for the best interests of its shareholders, then it will be issued

  2. Chinese Entrepreneurs in Singapore: Paths to Success

    Thus, he arrived in Singapore in 1936. By that time, he had made up his mind only to succeed and earn money to send back to his parents in order to make them happy. (Chan & Chiang, 90-91) This shows that from the beginning, both these men had the determination

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