The difference between managerial and entrepreneurial decision making

1. MANAGERIAL/ADMINISTRATIVE
VERSUS ENTREPRENEURIAL DECISION
MAKING
Entrepreneurial management is distinct from traditional management.
The difference between the entrepreneurial and managerial decision making can be viewed in the
following dimensions
1. COMMITMENT TO OPPORTUNITY
In general the entrepreneurial domain is revolutionary with short duration while the managerial
domain is evolutionary with long duration
The entrepreneurial domain is pressured by the need for action and has a short time span in terms
of opportunity commitment hence it is fast to act on worth opportunity while the managerial
domain is slow to act on opportunity and once the action is taken the commitment is usually for a
long time span, too long in some cases.
2. COMMITMENT TO RESOURCES
An entrepreneurial is used to having resources committed at periodic intervals that are often
based on certain tasks or objectives being reached. The resources required are usually difficult to
obtain, thus forcing the entrepreneur to maximize any resource used.
In managerial domain the commitment of resources is for the total amount needed and managers
normally receive personal rewards by effectively administering the resources under the control
3. .CONTROL OF RESOURCES
The manager/administrative is rewarded by effective resource administration and has a drive to
own or accumulate as much resources as possible.
The pressure of power, status and financial reward cause the manager to avoid periodic use of
resources while

2. The entrepreneur is under pressure of limited resources and strives to achieve periodic use of the
resources needed.
4. .MANAGEMENT CONTROL/SHARED VALUES AND NORMS/MANAGERIAL
STRUCTURE
In managerial domain the organization structure is formalized and hierarchical in nature.
Reflecting clearly defined lines of authority and responsibility while the entrepreneurial domain
has a flat organization structure with informal networks throughout due to the desire for
independence.
5. STRATEGIC ORIENTATION
The entrepreneurial strategic orientation depends on his or her perception of the opportunity
while on managerial domain the strategic orientation involve the use of planning system