The dimensional growth and the complex activity that linked production and distribution triggered an organisational revolution where the relatively simple organisational structures that were used during the first industrial revolution evolved into the sophisticated U and M organisation structures. These management structures were characterised by lowly paid middle and top-level managers who had autonomy from the founding family and their property because of the growing specialisation in their duties and responsibilities (Colli, 2002).
The growth of corporations demanding more investments and financial resources brought on a shift from personal or family capitalism to financial capitalism where bankers and other organization financiers made the top management decisions within companies. In the end though, given the complex activities that were undertaken by the new modern enterprises, the managers had the ultimate responsibility for allocating resources and making relevant strategic decisions (Colli, 2002).
According to Chandler (Cited in the work of Colli, 2002) no family business or financial institution was large enough to staff the various managerial hierarchies required to administer the modern multiunit enterprises. The salaried managers who had a developed specialised knowledge of the business eventually took over the top level decision making activities from the owners or financiers of the business who rarely had time, lacked information or experience to make management decisions or propose alternative methods.
As a result, family members came to view the organisation from the point of view of renters since their interest in the organisation was no longer in management but in how much income and profits it was able to generate. The changes in the ownership structure of the large organisations showed that there was a growing separation between ownership and control as well as the fragmentation of stock ownership. With the rise of the managerial corporation, the transformation experienced in the industrial enterprise spread to other parts of the strong culture perspective about a revolution in the competitive advantage among countries.
The transformation brought about the birth of the modern business enterprise, which was defined as an economic institution that owns and operates a multiunit system that relies on a multilevel managerial hierarchy (Daems, 1980 as cited by Colli, 2002). The relationship between entrepreneurship and family businesses shows that family businesses are vital and provide supportive environments for entrepreneurial behaviour. Research on entrepreneurship activities has shown that family support and the presence of self -employed parents is an important influence in the founding and ownership of a business.
According to Sexton and Bowman-Upton (cited in the works of Bellet et al, 2005) an entrepreneur is a person who can recognize an opportunity in the market place and look for the necessary resources to exploit that opportunity for his long term personal gain. Entrepreneurship is viewed as the integral part in most family run businesses. The phenomenon of an entrepreneurial family fosters and enhances the efforts of its members who take part in it.
The growth of corporations demanding more investments and financial resources brought on a shift from personal or family capitalism to financial capitalism where bankers and other organization financiers made the top management decisions within companies. In the end though, given the complex activities that were undertaken by the new modern enterprises, the managers had the ultimate responsibility for allocating resources and making relevant strategic decisions (Colli, 2002).
According to Chandler (Cited in the work of Colli, 2002) no family business or financial institution was large enough to staff the various managerial hierarchies required to administer the modern multiunit enterprises. The salaried managers who had a developed specialised knowledge of the business eventually took over the top level decision making activities from the owners or financiers of the business who rarely had time, lacked information or experience to make management decisions or propose alternative methods.
As a result, family members came to view the organisation from the point of view of renters since their interest in the organisation was no longer in management but in how much income and profits it was able to generate. The changes in the ownership structure of the large organisations showed that there was a growing separation between ownership and control as well as the fragmentation of stock ownership. With the rise of the managerial corporation, the transformation experienced in the industrial enterprise spread to other parts of the strong culture perspective about a revolution in the competitive advantage among countries.
The transformation brought about the birth of the modern business enterprise, which was defined as an economic institution that owns and operates a multiunit system that relies on a multilevel managerial hierarchy (Daems, 1980 as cited by Colli, 2002). The relationship between entrepreneurship and family businesses shows that family businesses are vital and provide supportive environments for entrepreneurial behaviour. Research on entrepreneurship activities has shown that family support and the presence of self -employed parents is an important influence in the founding and ownership of a business.
According to Sexton and Bowman-Upton (cited in the works of Bellet et al, 2005) an entrepreneur is a person who can recognize an opportunity in the market place and look for the necessary resources to exploit that opportunity for his long term personal gain. Entrepreneurship is viewed as the integral part in most family run businesses. The phenomenon of an entrepreneurial family fosters and enhances the efforts of its members who take part in it.
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