Entrepreneurs and Management Knowledge
Successful entrepreneurs generally possess a rich complement of personal traits, inherent skills, and business savvy that help them rise above the huge and growing tide of would-be entrepreneurs everywhere. Although some entrepreneurs have achieved great success in spite of a paucity of management knowledge, those cases are rare. Management knowledge is the bedrock that supports a rising star after the initial blaze of early success subsides and the matter of managing a real-world business comes into play. An entrepreneur who can design a great product but cannot manage employees, time, inventory, or finances will not be able to run a successful business. Many companies with an innovative idea or novel marketing scheme shoot up like a rocket and then peter out when they are unable to sustain growth and establish equilibrium. Management knowledge ensures that the enterpriseùonce launchedùwill be able to function successfully on a day-to-day basis and become a solid presence in the marketplace.
The types of knowledge that entrepreneurs need cover a wide range of topics. One of the most important and most overlooked is a knowledge of people. ôIt is often the major factor in a decision and it affects those myriads of personal encounters that fill a managerÆs dayö (1). In any company larger than one person, a knowledge of how to handle people is a major criterion of success. At the personal level, this knowledge manifests as interpersonal skillùthe ability to communicate effectively, influence the behavior of others, and meet the varied needs of the people in the organization. Understanding how to relate successfully to people builds loyalty and support in the workplace, and promotes commitment on the part of employees. At the business level, this knowledge becomes personnel-related and includes such things as hiring, firing, teambuilding, controlling conflict, delegating, condu...