Managerial and Entrepreneurial Decision Making
Managerial Decision Making
Managerial decisions are taken for the effective management of a business. They are based on controlled resources. They are evolutionary with long-term duration. Managerial decisions are slow and steady.
Entrepreneurial Decision Making
Entrepreneurial decisions are quick and are based on value creation. They mainly focus on rapid growth. They always search for opportunities.
Differences between Managerial and Entrepreneurial Decision Making
The differences between managerial and entrepreneurial decisions Making are presented below.
| Bases of difference | Entrepreneurial Decision Making | Managerial Decision Making |
|---|---|---|
| 1. Strategic orientation | Entrepreneurial decisions are driven by generation of opportunity for the new or existing ventures. | Managerial decisions are driven by controlled resources. |
| 2. Nature of decisions | Entrepreneurial decisions are revolutionary. | Managerial decisions are evolutionary. |
| 3. Stages of resource acquisition | Under entrepreneurial decisions, there are many stages of decisions for resource acquisition with minimal exposure. | Under managerial decisions, there is a single stage of decisions with complete commitment of resources. |
| 4. Control of resources | Entrepreneurial decisions are more focused on periodic use of resources. | Managerial decisions focus on ownership of resources. |
| 5. Speed of decisions | Entrepreneurial decisions are quick since the organizational structure is flat. | Managerial decisions are slow since the organizational structure is hierarchical. |
| 6. Philosophy of decisions | Entrepreneurial decisions are based on value creation. | Managerial decisions are based on responsibility and seniority. |
| 7. Growth orientation | Entrepreneurial decisions mainly focus on rapid growth. | Managerial decisions are slow and steady. |
| 8. Culture | Entrepreneurial decisions search for opportunities. | Under Managerial decisions, search of opportunity is restricted by controlled resources. |
