Managing Transition from Entrepreneurial Firm to Professional Firm

Abstract

This paper aims at appreciating the need for and relevance of effectively managing transition from growing entrepreneurial firm to become professionally managed Enterprise. Business growth, especially the growth of an entrepreneurial firm, has important implications on the firm and the entrepreneur. Growth makes a firm bigger and hence introduces a number of managerial challenges forcing changes in the present style of working and management orientation. This paper attempts to broaden the perspective of the first generation entrepreneurs by creating awareness about necessity to manage transition at the right time to more effectively cope with, and manage, the growth process. An attempt has also been made to familiarize such entrepreneurs with the relevant techniques and best practices for managing and succeeding in traumatic transition process of entrepreneurial set-ups in a global business scenario. It is intended to equip the entrepreneur to focus on creating a good understanding of the management issues associated with new ventures. Once the entrepreneur is focused, the approach will be to cover key issues of relevance and provide a good overall understanding of the management challenges in the context of new ventures transition.