Question

Question 1: 1) Explain what entrepreneurial management is, and 2) provide the reason(s) why

entrepreneurial management is imperative in contemporary organizations. (10 marks)

Answer 1

The word entrepreneurial depicts for a firm or a venture. And the word management means control or discipline. So by entrepreneurial management we mean the activity of controlling & making use of entrepreneurial knowledge for increasing effectiveness of ventures & small & medium size companies. As there are various kinds of risks are involved in all kind of business for example risk of loss in business, so in that case there must be a good entrepreneurial management in every kind of business.

Reasons of why entrepreneurial management is imperative in contemporary organizations are as follows:

1. Stimulation of related business: A proper control and discipline helps in stimulating the related business. It is so because management helps in decreasing risks involved in the business.

2. Generating new wealth: Every venture or business has a motive of generating wealth. It is only possible through effective entrepreneurial management.

3. Reducing or vanishing Risks: By proper entrepreneurial management the risks involved in the business can be reduced.

4. Creating social image of the business

5. Community development

6. Generating national income