There are few main tools that entrepreneurs utilize in measuring, monitoring, and evaluating their business success. These are scheduling, controlling the quality and costs, communicating with the shareholders, estimating their satisfaction level, and analyzing the project’s profitability. The organizing skills vary from the level of expertise of entrepreneurs. For example, individual entrepreneurs with start-up projects develop a highly personalized style of business organization, while big companies and corporations rely more on strategic planning and performance analysis. According to Van Scheers (2016), entrepreneurs in South Africa measure their business success by evaluating profitability, which creates a narrowed perspective on their business model. This approach leads to a low rate of business success in the South African economic segment because entrepreneurs base their business strategies on short-term performance indicators.
One of the essential tools in establishing business success is open communication between the shareholders. Davis (2016) explains that all shareholders’ shared perception of business success is related to the inclusion of measure dimensions such as “benefit to the stakeholder group, client/customer-specific issues and time/cost/quality” (p. 480). Moreover, when the stockholder group is constantly informed about its performance, it provides a better and more nuanced business strategy.
Furthermore, a shared outlook on the projects decreases the number of occurrences of disruption and disagreements linked to business success. In other words, proactive communication between the company’s shareholders ensures that every member of the stockholder group is involved in the decision-making and has a chance to provide their expertise. In conclusion, despite that profitability is an essential factor in monitoring a project’s performance, the comprehensive outlook on the business model improves the success rate.
References
Davis, K. (2016). A method to measure success dimensions relating to individual stakeholder groups. International Journal of Project Management, 34(3), 480-493.
Van Scheers, L. (2016). How do entrepreneurs measure success in South Africa? Journal of Business and Retail Management Research, 11(1), 1-6.