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« Back to articles from category "Leadership"

The following article was published in our article directory on December 2, 2016.
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Introduction to Diversification in Entrepreneurship

Article Category: Leadership

Author Name: Theodore Henderson

Each individual is equipped with different skills and abilities. These skills and abilities are acquired through learning from school and experience. Some people can do things that others can�t. That is why people seek out for each other�s help.

Entrepreneurship and Diversity in Entrepreneurship

Entrepreneurship is the creation of a business and the continuous management of the said business. An entrepreneur's necessary characteristics are being a risk taker, innovative, a thorough researcher, a negotiator and a lot more.

Diversity in entrepreneurship means the variety of entrepreneurs and manpower in terms of physical, status, age, abilities, gender, sexual orientation, race, religious beliefs, political beliefs, and ethnicity.

Anybody can establish a business. An entrepreneur�s entrepreneurial abilities cannot be fully defined by their educational attainments. The diversity of entrepreneurs gives the opportunity to all citizens to practice their school-learned and experience-learned entrepreneurial skills.

Diversity of Manpower

As a business grows, additional departments are established. Existing departments and newly-established departments need additional manpower to meet the growing business� additional needs.

An example of a need for diversity in entrepreneurship is when a business expands and acquires another company. Acquisition of a company that competes in a different industry gives rise to the need to study the cause of the acquired company�s business-related issues.

For example, a grocery business acquires a small lending company. After the acquisition, the grocery company then finds out some problems in its credit and collection department. The acquiring company might find it necessary to hire additional diverse employees for the credit and collection department of the newly-acquired business.

A diverse manpower can help in the identification of company-related problems and in the formulation of answers to these problems from different points of view.

An issue related to diversity in entrepreneurship is gender diversification. Female employees get longer paid leaves than male employees. Women are often less preferred by employers to be hired because of cost factors like paid maternity leaves which are much longer than paternity leaves.

Higher-level management jobs are first offered to male employees before female employees. Married female employees of a higher-level management position might slow the pace of a long term project because of her absence due to pregnancy and use of a maternity leave.

Constraints of Diversification

Not all businesses can achieve an expected level of diversity in entrepreneurship. An opportunity for businesses to diversify is limited by some limitations such as financial, hiring-related, time, and retention.

Financial constraint limits the ability to hire additional employees due to lack of funds. Hiring-related constraints prevent a company from hiring the best employees to fit for a job because of the lack of ways in informing the public for job openings. Retention constraints limit a company from retaining an experienced employee due to lack of acknowledgments, noncompetitive salaries, and an unpleasant work environment.

Conclusion

Diversity in entrepreneurship is important for every business industry. Manpower is as important as any asset a company possesses. A diversified workforce helps in providing a variety of solutions for business-related problems. Although diversity in the workforce is essential for business growth, there can still be problems when maintaining a diversified manpower like hiring and employee retention problems.

A thorough hiring process can be helpful. Constant acknowledgment of employees� hard work and providing competitive salaries can help in employee retention. No matter how difficult it is to gain and maintain a diversified workforce, businessmen still consider diversity in entrepreneurship as an important factor in business growth.

About the Author: Theodore Henderson is an author, coach, trainer, & speaker who is expert when it comes to Entrepreneur and Small Business strategies. To find out everything about him and his programs visit his website at TheodoreHenderson.com

Keywords: diversity in the workplace, importance of diversity in the workplace, challenges of diversity in the workplace, Managing Diversity in the Workplace, Trends Driving diversity, Diversity in Entrepreneurship, Cultural Diversity, Innovation, and Entrepreneurship

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