Internal causes of change - entrepreneurs essay

An example of an 'A' grade essay on entrepreneurs and internal causes of change for AQA BUSS4

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"Evidence suggests that most entrepreneurs who successfully start
and establish a small business do not have the skills to make it
into a successful large business. Discuss this statement and
evaluate the strategies that might be taken to improve the
likelihood of success." (40 marks)
There are various differences between being the boss of a small
business and managing a large business, as there are different
tasks and skills that are needed to manage these successfully.
These could be a lack of management skills that's they have, this
is because there is a lot less number of employees in a small
business than in a large business and they can be managed in
different ways. Because of this there may be a lack of focus,
vision and effective planning. Other skills that entrepreneurs lack
is that they might find it hard to delegate effectively because they
aren't used to it while being a small business. They also may lack
in organizational skills as they could make fast and small
decisions while managing a small business but becoming a large
business, there will be more important and expensive decisions
which needs to be made and this can be helped through efficient
organizational skills.
A strategy that an entrepreneur can adopt to make their
small business into a successful large business is changing their
management styles, which are suitable for the business. The
entrepreneur would be used to managing a small number of
employees or maybe just themselves as they are starting off, but
as the company grows they will need to employee more staff, and
needs to manage these to motivate and get the most out of
employees as they can. A management style which they could
adopt is being an Autocratic manager, which may not be suitable
to all business situations, but by being an autocratic manager
they like to make important decisions themselves and closely
supervise and control the employees, and there is a majority of
one way communication which has limitations but can be useful
when quick decisions are needed or when controlling large
numbers of low skilled workers and this may be needed when
changing into a larger business as the business is more vulnerable
and can easily fail if bad decisions are made. Another
management style is a democratic style, this puts trust in
employees and encourages them to make decisions through
effective delegation, and this would empower them, as there is
2-way communication with the entrepreneur. Major decisions are

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Hertzberg's motivators and Maslow's higher order skills.
With a democratic style this can help to make their business
successful because it will be the employees, which makes the
business successful, and with employees motivated it can help
boost the productivity, which helps to make the business
successful.…read more

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An example is Netflix, when
they were becoming a large business and multinational, they used
to have stores in America, which would rent out DVDs through
store and through the post.…read more


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