How to keep the entrepreneurial spirit in growing companies

• Main Authors: Leffers, Henko, Elhorr, Suzanne
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Företagsekonomi 2008
• Subjects: entrepreneurial spirit; Business and economics; Ekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-1364

Abstract Problem: Once a business is running, simultaneously the treat of loosing the entrepreneurial spirit is occurring. The team is not as passionate and people do not seem as enthousiastic, and what was once a mission is now seemingly nothing more than a job for you and for them. Many factors cause the damage; however, the structure and the human resource management are two particularly factors involved in that damage. Purpose: The purpose of this thesis is to investigate how the structure and the human resource management serve as rescuers to force and keep the entrepreneurial spirit. The authors findings will help them give suggestions on how these two basic fields help in stabilizing the entrepreneurship. Method: The data collection is based on theories related to findings from the real life business world. To assemble qualitative and reliable research, the authors conducted seven oral interviews with professionals working in different positions. In addition, the interviewees were selected from four different companies and different industries. Conclusion The structure in growing firms needs regular adjustment to hold a clear communication and clear definition of responsibilities which are crucial for the survival of the firm. Firms relying on innovativeness need to find the balance between openness of communication, flexibility and the degree of bureaucratization. In addition, firms based on innovation should be aware of tolerance of failure. Trust between management and employees also tend to influence the overall performance of the firm. As the business develops, HRM practices also follow a certain change and update. An established firm needs to have clear competences of what is needed in the organization. Besides that, the firms need to emphasize training and development. In addition to keep people motivated and sustain the entrepreneurial spirit, firms need to be aware of rewarding. Eventually the authors also discovered a need to include internationalization in their thesis and how it is related to sustain the entrepreneurial spirit in growing firms.