How Micro Business Performance Is Influenced By The Motivations, Aspirations, And Intentions Of The Entrepreneur

1201 Words Apr 9th, 2016 null Page
it through this relatively short period? In answering this question Cliff (1998) suggests that micro business performance is influenced by the motivations, aspirations, and intentions of the entrepreneur. This would suggest that from the start, the business has a destiny to succeed or fail depending on the inclination of the entrepreneur and that this would be correlated with the rate of business growth. However, although these variables play a crucial role of the guidance of the business, extensive specialized knowledge is needed in all areas of operational management. This could be a contributing factor as to why so many SME’s failed to achieve success after the two-year period.
For a business to gain market share and remain competitive, all operations in the business must achieve maximum efficiency and work interdependently. Crosby (1980) backs this up by demonstrating the link between successfully doing it right first time and boosting profitability through reduced costs. This will in turn allow a business to gain scale economies and thus increase size and market share. It should be noted that although Crosby’s (1980) work was focused around larger firms, the concept holds throughout businesses of all sizes.
Once a business has begun to increase their market share it can then focus on diverse customer segments. For SME’s the customer target group will often be much more confined, which is key disadvantage against competitors as relying on one customer group can come…

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