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Enhancing Entrepreneurial Productivity

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An entrepreneur frequently has to wear many hats. He or she has to perceive opportunities, plan, organize resources, oversee production, marketing, and also network with others. Most importantly he has to innovate and bear risks. But no matter what an entrepreneur does, improving productivity is a significant way of ensuring success. In today's competitive business environment, doing more with fewer resources is a vital ingredient for survival. Hence, business owners who will succeed over the long term are those who can get the most productivity from the resources available to them.

The Global Entrepreneurship Monitor is a research program aimed at measuring the national level of entrepreneurial activity in selected countries. An economic growth study of 48 countries conducted by the GEM in 2008, concluded that the economic growth of a country is directly related to its level of entrepreneurial activity. More recently, a similar study in May 2012, concluded that the drivers of productive entrepreneurship have deteriorated significantly across the world. On a scale of 0.0 to 1.0, the quality of the drivers of productive entrepreneurship declined from 0.67 to 0.60, representing a 10 percent drop between 2010 and 2011. It also reported that the world as a whole is operating at about 30% of its entrepreneurial capacity.

Because the entrepreneurial sector is a large and growing component of many economies, enhancing its performance will generate significant gains for the nation as a whole. Whether the business owner employs two or a hundred employees, it is helpful that he or she frequently measures and focuses on the  resources  that  keep  the  business continually 

An entrepreneur frequently has to wear many hats. He or she has to perceive opportunities, plan, organize resources, oversee production, marketing, and also network with others. Most importantly he has to innovate and bear risks. But no matter what an entrepreneur does, improving productivity is a significant way of ensuring success. In today's competitive business environment, doing more with fewer resources is a vital ingredient for survival. Hence, business owners who will succeed over the long term are those who can get the most productivity from the resources available to them.

The Global Entrepreneurship Monitor is a research program aimed at measuring the national level of entrepreneurial activity in selected countries. An economic growth study of 48 countries conducted by the GEM in 2008, concluded that the economic growth of a country is directly related to its level of entrepreneurial activity. More recently, a similar study in May 2012, concluded that the drivers of productive entrepreneurship have deteriorated significantly across the world. On a scale of 0.0 to 1.0, the quality of the drivers of productive entrepreneurship declined from 0.67 to 0.60, representing a 10 percent drop between 2010 and 2011. It also reported that the world as a whole is operating at about 30% of its entrepreneurial capacity.

Because the entrepreneurial sector is a large and growing component of many economies, enhancing its  performance will generate significant gains for the nation as a whole. Whether the business owner employs two or a hundred employees, it is helpful that he or she frequently measures and focuses on the  resources  that  keep the business continually viable and competitive in the market place. This article identifies activities that enhance the productive performance of the entrepreneur to enable a higher level success in his or her enterprise.

The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. “ – Peter

Here are some vital keys to enhancing your productivity;

The Power of Focus: The 80/20 Rule states that in everything we do only a few aspects (20 per cent) are vital and many aspects (80 per cent) are trivial. This principle reminds us to always focus our energy, time and resources on the 20 percent of the things that brings the 80 per cent of the result and enhances our highest productivity. It is not enough for you to work very hard as an entrepreneur, it is more important to work smart, and of utmost importance to work smart on the right things. When Lee Iacocca took over Chrysler Motors in 1978, one of his winning strategies was to sell off the loss-making Chrysler Europe division to Peugeot and to focus more on the businesses that brought the highest gain for the company. You must realise that being involved in many things does not necessarily bring accomplishment. It is expedient for you to know the 20% of your customers or business efforts that brings 80% of the result. Focus on them.

Effective Time Management: A key skill for success for any entrepreneurial venture is learning how to turn time to money. Lee Iacocca once said If you want to make good use of your time, you’ve got to know what’s most important and then give it all you’ve got”. Although many people are often overwhelmed  by the  enormity of  tasks ahead,  the  truth is;  there is  no one who  has time  to do everything. You therefore need to focus your time and energy only on high value activities – activities that constantly move you towards your business goals and objectives. You must continuously define priorities and set goals and also make a conscious effort to define what you will not do.

Computer Technology: Adding computer technology to your business is an excellent way to boost the productivity of your business and help you get more done in less time. When evaluating your business and your need for computer technology, examine the manual processes your firm uses and think about how those time-consuming manual processes can be automated with the right computer technology.

Improve the Work Environment: The entrepreneur must constantly explore ways to make the working environment as efficient as it can be. A good work environment is the number one law of productivity. An important factor in creating an ideal working environment is organization. Whether you are working from home or in the office, you will find it very difficult to achieve high productivity in a haphazard working environment. Also, giving your employees the tools and motivation they need to do their jobs more effectively is key to enhancing work productivity.

Value Enhancement: Because the entrepreneur must be a purveyor of new ideas and creativity, he must constantly seek ways to improve himself and create value-added features that further answer the competition and provide consumers with fresh utility and novelty.

In conclusion, to achieve maximum productivity you must constantly clarify the vision of your organization, including what you want to accomplish, the strategic plan to get you there, the incremental and timed goals that must be met along the way, and the values that will guide your actions. If you decide to settle for nothing less than excellence in everything you do and keep profit and productivity in mind as you devise new and better ways of doing things, you will soon realise that enhanced business results are just round the corner.

 

Authored by

Bode Olutunbi is the Managing Partner/CEO at Peoplesource Consulting, a Human Resource and Business Consulting firm in Lagos. He can be reached via email at bode@peoplesourceconsulting.com

Peoplesource Consulting

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