376 ENTREPRENEURSHIP
- A research lab established on-site adult day care and child care, an employee fitness
center, and an emergency counseling program. - A commercial packaging maker made on-site laundry facilities available, offered
English and high school equivalency classes, provided door-to-door transport, and
opened a children’s clothing swap center.
One of the most creative sets of human resource practices can be found in the com-
pany MySQL. It has employees in over 25 countries—and no home office. So how
does it work? Street Story 9.4 helps explain this remarkable company.
These small businesses and new firms have been creative and enterprising in de-
veloping human resource systems that integrate the needs of the business and the work-
ers. When the venture’s human resources are working at full capacity, they are saving the
company money, adding value for customers, adapting to the changing marketplace, tak-
ing responsibility, and managing themselves. The entrepreneur must consider the cre-
ation and development of the organization as an opportunity to achieve a sustainable
competitive advantage.SUMMARY
This chapter has provided an overview of the theoretical and practical aspects of creat-
ing an organization. One top priority for most entrepreneurs is the recruitment, selec-
tion, and organization of a top management team. The team serves as the basis of sus-
tainable competitive advantage by virtue of the uniqueness of its members and also as
the protector of the venture’s resources.
The TMT and the founder are responsible for ensuring that the organization has the
potential for long-term success. This requires preserving the core values of the business,
while at the same time making sure that there are mechanisms in the organization to
stimulate progress and innovation.
Although some ventures can survive as virtual organizations by using the market and
alliances as support, most ventures create organizations that are hierarchical and that
divide authority and responsibility among their members. As the firm’s strategy changes
and its industry develops, the entrepreneur must reappraise earlier choices about what
to do internally and what to leave to the market.
The performance of the new venture should be measured on four different dimen-
sions: financial, customer relations, internal business process, and growth and develop-
ment. A balanced approach to performance helps the new venture develop the skills,
capabilities, and resources necessary for survival and growth.
The entrepreneur and the TMT are responsible for the business’s culture and ethical
climate. Creating an exciting and motivating environment for employees is a challenge
that must be met. The entrepreneur should employ innovative methods of compensa-
tion, training, promotion and advancement, job autonomy, and total quality of life.
Attention paid to human resources has long-term benefits for the firm and is a continu-
ing source of advantage.