After our entrepreneurship class, I wanted to find out why so many start-ups (1/4) fail. An article by The Entrepreneur brings up an important weakness that many entrepreneurs exhibit that negatively affect their business. This weakness is the inability to let go of power. The article states that some entrepreneurs are so consumed in their own business that they want to do everything on their own. Conversely, by being able to hand over authority to others the founder allows himself to have more time to focus on more important matters.
However, after reading the article, I noticed how the transferring of power is also utilized in several other areas of business, not just with entrepreneurship. In operations, we can see how smaller firms have to surrender some of its power to establish partnerships and suppliers. Also, in organizational culture, workplace hierarchy is becoming more horizontal; managers are beginning to empower their employees through responsibility and accountability.
We can see how letting go of power and utilizing others will benefit company in the long run. Whether it be finding a supplier to better your supply chain or empowering your employees to work at maximum efficiency, the idea seems to support the ideology that “two heads are better than one”.
Resources:
http://www.entrepreneur.com/article/228023
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