How to keep the entrepreneurial spirit in growing companies

University essay from Högskolan i Jönköping/IHH, Företagsekonomi; Högskolan i Jönköping/IHH, Företagsekonomi



Problem: Once a business is running, simultaneously the treat of loosing the entrepreneurial

spirit is occurring. The team is not as passionate and people do not seem as enthousiastic,

and what was once a mission is now seemingly nothing more than a job for you and for

them. Many factors cause the damage; however, the structure and the human resource

management are two particularly factors involved in that damage.

Purpose: The purpose of this thesis is to investigate how the structure and the human resource

management serve as rescuers to force and keep the entrepreneurial spirit. The authors

findings will help them give suggestions on how these two basic fields help in stabilizing

the entrepreneurship.

Method: The data collection is based on theories related to findings from the real life business

world. To assemble qualitative and reliable research, the authors conducted seven oral

interviews with professionals working in different positions. In addition, the interviewees

were selected from four different companies and different industries.


The structure in growing firms needs regular adjustment to hold a clear communication

and clear definition of responsibilities which are crucial for the survival of the firm. Firms

relying on innovativeness need to find the balance between openness of communication,

flexibility and the degree of bureaucratization. In addition, firms based on innovation

should be aware of tolerance of failure. Trust between management and employees also

tend to influence the overall performance of the firm.

As the business develops, HRM practices also follow a certain change and update. An established

firm needs to have clear competences of what is needed in the organization. Besides

that, the firms need to emphasize training and development. In addition to keep people

motivated and sustain the entrepreneurial spirit, firms need to be aware of rewarding.

Eventually the authors also discovered a need to include internationalization in their thesis

and how it is related to sustain the entrepreneurial spirit in growing firms.

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