In the beginning
Setting up the business
Over half a million people start businesses in the UK each year, and small and medium-sized businesses make up 99.9% of the businesses in the UK. 20% will not make it past their first year, and a staggering 60% will fail within their first three years.
To succeed at the beginning, an entrepreneur needs to be determined, self-confident, energetic and prepared to do most of the work themselves. Many people start down this uncertain road because they want to feel in control of their own destiny.
After the first year
If the business is still going
Any business still trading after 12 months is a success at some level.
If the business is growing, it is likely to consist of a small team.
However is likely to be still small enough that the business owner can still retain control of almost everything, so the business has no need of an organisational structure, and the business owner is likely to feel comfortable, knowing they are still in charge of everything.
However, at some point
If the business is to carry on growing
The business owner needs to stop doing everything themselves and let others start making some of the decisions. If they gain investment funding, then the investors may impose an organisational structure on them. If the owner does not wish to relinquish control, then there will be conflict, and growth may stall.
If the owner only brings in staff who will agree to everything they want, then growth will stall, and the more creative staff who could make the most useful contribution will not stay
