The entrepreneur is the pioneer, the managers the applier of existing best practices. The entrepreneur engages in strategic activity, the managers need to focus on tactical or operational activity. The entrepreneur formulates a strategy, the manager implements that strategy. Business success will depend on the continuing renewal and application of the entrepreneurial spirits. Business success depends on the application and an efficient management team. The attrition rate of any new business is extremely high. In the US, the supporter of the entrepreneurial spirit, numerous new enterprises will fail each year. However in a long-term historical perspective, business success is short-lived. ...view middle of the document...
Companies may however, choose a stability strategy because the entrepreneur is mostly generating employment for family members. Providing the family a "decent living”, and being the "boss" of a firm small enough that he or she can manage it comfortably. Finally some business owners don't pursue a growth strategy because they do not want the loss of control that results from bank debt or the sale of stock to outsiders.
What are advantages and disadvantages of privatization of state- owned business?
The privatization of state-owned business enterprises is likely to continue globally for most of these enterprises must expand internationally in order to survive in the increasingly global environment. They cannot compete successfully if they are forced to follow inefficient. Policies and regulations emphasizing employment over efficiency rather than economically oriented, international practices will emphasize efficiency over employment. The global trend to privatization will probably continue until each country reaches the point where the efficiency of business is counter by the effectiveness of the not-for-profit of economy. However as political motives overcome economic ones, government will likely interfere with that decision.
Some of the advantages of taking a company from state-owned to a private company are that it will force the company to operate efficiently without state subsidies. If you do not do so you will go out of business. You will be forced to compete with other companies and will have to reduce your costs.
Some of the disadvantage is that a company will no longer operate in the public interest. While a state owned company primarily serves the citizens of the state, the primary goals of a privately operated company are to make profit. It may make these profits at the expense of its customers without serving them properly.
A number of not-for–profit...