Entrepreneurial Decision Making Research Paper Example | Topics and Well Written Essays - 500 words

Entrepreneurial Decision Making - Research Paper Example hought entails critical analysis of each of the available choices; analyzing both the long-term and short-term costs and benefits of every option, and deciding on the most suitable one. Since the decisions made are very critical and determines whether a business stands or collapses, it is necessary for entrepreneurs not to be hasty in the process. There should be a systematic procedure to be adhered to in the course of decision making. According to Entrepreneurshipatease.com (2010), there are four steps for quality decision making: alternatives, consequences, information and plan. In decision making there are varieties of alternatives, which the entrepreneurs may choose from. The main aim of a business is profit maximization and capital growth. An entrepreneur has to do proper calculations to ensure the realization of these key goals. It requires in-depth reasoning to choose wisely from the available alternatives or options. Sabrina (2011) documents two methods of reasoning that an entrepreneur can adopt in the process of decision making; traditional and effectual. Traditional reasoning involves setting goals and working diligently towards meeting them while effectual reasoning involves creating effect through evaluating how to use one’s strengths and resources in for entrepreneurial decision making (Sabrina 2011). Information is power; an entrepreneur should have adequate and extensive information about the available alternatives to enable settling on the best choice. In the course of decision making, plans should be underway to ensure that any eventuality is tactfully dealt with. Each choice made is prone to costs and benefits. The entrepreneur must conduct a cost and benefit analysis to settle on choice with overwhelming benefits. It does not necessarily mean that if an entrepreneurial decision has numerous benefits, then it has no consequences. Consequences often exist,