Introduction
Being an entrepreneur means you have to do and accomplish a lot of things and you have to have good decision-making skills to achieve that goal. It is also a part of an entrepreneur’s responsibility to slow down and take every decision to be made seriously, in order to avoid the harmful effects of poorly made and unplanned decisions.
In managing a business, whether it is a start-up or an already established one, there are a lot of aspects that an administrator or the owner has to consider. The best examples would be the legal and regulatory aspects, political, cultural, demographic and financial aspects. He technically has to consider all of these things in his decision-making process so that he could make sure his business is not going to suffer the consequences of neglecting even one of these factors.
Legal and Regulatory Issues
Making decisions that are in line with the law and any other ordinance present inside a particular state is important because no entrepreneur would want to face lawsuits just because they didn’t know that they have failed to comply with specific regulatory requirements. So, an entrepreneur or a business administrator has to know the type of law and the specific ordinances present in the area where the establishment is installed for them to hopefully avoid lawsuits.
Political Agendas
Although a business does not really need to fully engage in politics to determine the right decision to make politically, it is of utmost importance that the entrepreneur knows the term political risk so that he could devise a decision that would help his business avoid a road kill due to a political issue. Even small businesses are prone to suffer from the effects of a high level of political risk and one of the common results of a politically poor decision would be a disorganized workforce.
Cultural Perceptions
A good entrepreneur is also a good decision-maker. It should be not forgotten that there are also cultural factors present in a specific country and one really has to address that and try to consider the cultural factors present in a society during every decision-making process. A particular way to excel in making decisions that abide with a workforce population’s specific cultural perceptions would be to encourage individuality and group cooperation and organization at the same time. However, this could get complicated if the business currently has its positions filled by people coming from different parts of the globe, with different cultures. Nevertheless, the goal should still be the same.
Demographic Diversity
Understanding the causes and effects of making good entrepreneurial decisions demographically would be of utmost importance both in managing a business and targeting a particular population (Akol et al., 2009). The best examples of demographic factors that should be considered in making organizational and strategic decisions would be the population’s (can either be a workforce or a consumer’s population) relative age, race, nationality, culture and religion.
Financial Resources
Money is the bloodline of the business and a business actually needs money to be able to operate and conduct its specific processes (Hisrich, Peters & Shepherd, 2010). A business headed by an entrepreneur who lack knowledge in accounting and financial management may suffer from bankruptcy. Having financial stability is actually one of the most important aspects of managing a business and maintaining financial stability along with other important factors of decision-making is one of the hardest parts of managing a business.
References
Akol, A., Bremmer, J., Hailemariam, A., Nagendi, G., Teklu, N., & Teller, C. Demographic
Data for Development Decisionmaking. PRB, 2009. Print.
Hisrich, R., Peters, M., & Shepherd, D. Entrepreneurship 8th Edition. NY: McGraw-Hill, 2010.
Print.
