The Theory Of Firm Growth Based On Entrepreneur Ability

Historically, Edith Penrose (1959), an English Prof., will be the first scholar to study the subject of firm growth. From her start, as an independent research topic, firm growth subject attracts more attentions and have been obtained many beneficial research results. However, those research results is still not match with the lush practices of firm development, and have less advise meanings for practice. On the theory itself, many of basic questions are still in discussion and debate.As time and space passed, the growth of the firm is a process, which according to internal and external business environment changes, adjusting the growth elements dynamically in order to achieve business performance optimization, and promoting the long-term developments of the firm. By means of generalizing and analysis a variety of firm growth theories, this thesis makes the growth of the firm an a research object in order to find the source and general principals of a firm growth.This thesis builds up five chapters, and puts a focused study separately on the conceptions of the related problems, the fundamental sources, entrepreneurs and taking his abilities formation and cultivation, the general principles and disciplines of the firm growth. In the process of writing and research this thesis, I believe that the growth of the firm is the result of many internal and external elements activity jointly. These elements include not only capital, land, human, technical and management resources, but also the combinations of various elements. Under specific time and space conditions, the combination of the heterogeneity of morphological, which formed by the elements of the growth of the firm, is the heterogeneity growth factors portfolios, and promoted a growth of a specific stage. I believe that entrepreneurs are the most fundamental growth element. Entrepreneurs, is not only the designer and organizer of the growth elements and its structures, but also the main driving force of its changes, and in the center for these elements. In this respect, I propose the viewpoint of the object of the enterprise. Analyzing of the relationship between enterprises and entrepreneurs, I think the former is the latter realizes themselves-value and self-service tools. Enterprises are founded by entrepreneurs, and entrepreneurs dominate the nature of the business and development orientations. At the same time, with the growth of an enterprise, the entrepreneurs'values are realized. Therefore, entrepreneurs are the pricing browser of indirect values. Therefore, entrepreneurs are the pricing browser of indirect values. Entrepreneurs are not only the main body of enterprises, but also the elements of firm growth, the core elements. So, entrepreneurs should be the basic source of firm growth and the fundamental driving force.In this paper, entrepreneur is not only the capitalists, but also the actual control person of the highest decision-making power of enterprises. I defined this power as entrepreneur authorities, and endow them the professionalization status of the internal division of work in the firms.Propose to the power of entrepreneurs, breaking the traditional idea of"right to separation of the two", so I tentatively proposed"right to separation of the three", which is the ownership, the power of entrepreneurs and the right to operate. In my opinion, the power of entrepreneurs embedded in the power structure in an enterprise not only can solve the problem that Entrepreneurs duty is unclear in the power structure of the"right to separation of the two", but also can strengthen the status and role of entrepreneurs as a source of business growth and will be conducive to business or the long growth of business. Now that the position of entrepreneurs is very important, so the form, the cultivation and the use of the ability of entrepreneurs has become an inevitable requirement of Corporate Growth.By analyzing the psychology and behavior of the entrepreneurs, I believe that the mental structure and attention allocation of entrepreneurs were key to the formation of entrepreneurship. Moreover, the important mental structure and attention allocation not only were affected by the genius of people, but also by the acquired study and practice of people.Both training the good study habits of lifelong learning and carrying out the consecutive activity of entrepreneurs were possible ways of cultivating entrepreneurship. Therefore, I have devised a growth model of entrepreneurship.To find the source of the growth of an enterprise was only the starting point for promoting business growth, while the use of the disciplinarian of business growth to concretely achieve business growth was our essential purpose. Therefore, I have summarized the four principles which the business should generally follow in process of the growth. They were the principal of the best-first ideals, the principal of the best-first industries, the cyclical turnover principal of the growth elements, the principal of the overstepping curves. Although those principles and laws were studied by scholars at lot of literature, I put them together and regard them as a general principle of the growth of an enterprise. This is the first. With the study in depth, I think the disciplinarians which I have not found will constantly emergence. The business growth is the continual process of development that the entrepreneurs using the power of entrepreneurs and utilizing laws of business growth had been promoted.