Entrepreneurship Bulletin with Alexander Akwasi Acquah

Criterion success model to understand investment selection by entrepreneurship

Success is attained when an expected result is achieved through an effort. Although self-development and success walks in a similar path, they cannot be considered as the same. The business environment today is complex and growing more complex every day. The ever growing complex environment requires entrepreneurs to be more contend with the advancement era along with an ever-growing global economy in which events on one end of the globe affects the company.

Making effective amendments is much more difficult in this century world, and the criterion success model provides the lens that looks internal and external to effectively deal with changes and adaptations. Nevertheless, the implementation of an entrepreneur’s’ concept as a system is usually a lengthy and complex process during which the entrepreneur undergoes many messes and must remove various impediments to ensure investment success.  Particularly, it is practical to understand the different approach by the entrepreneur and learn from their experience to avoid certain pitfalls and the risk of failure.

Various entrepreneur decisions, which represent diverse levels of choices in decision-making, such as which project is/are important and urgent, urgent but unimportant, important but not urgent, and unimportant and not urgent, seem to be a great challenge to the entrepreneur faces during the decision process. Other problems include discrete difficulties encountered during the decision process. Furthermore, those source difficulties may also have various causes, which suggest a chain of causal relationships among the problems. Therefore, the source difficulties warrant the conduction of a research to understand the criterion approach. The understanding of such a model will allow failing entrepreneurs to adopt new approach to be successful in investments.

The criterion success model

The criterion success model presented in Figure 1 is a critical thinking model that aids the entrepreneur to select the best option after a series of business opportunities are sorted to inform better decision-making.

 

Important and urgent (1^st approach)

The sole aim of every entrepreneur is to make imperative and pragmatic sustainable business plans through strategic analysis of the complex internal and external environments. With the important and urgent approach, entrepreneurs can select and make better business decisions after exploring the complex business environment. The important and urgent approach is more of an orientation phase.

Urgent but unimportant (2^nd approach)

In the process of strategic decision-making, the entrepreneur thoroughly evaluates many alternatives on the premise of reasonable consideration of internal and external environmental factors. Based on the opportunities and resources available to the entrepreneur, the entrepreneur selected the strategic target that is most urgent but unimportant in consistent with the actual development of the organization from the remaining alternatives, thus effectively improving the quality of investment decision-making.

Important but not urgent (3^rd approach)

During the allocation process of strategic decision-making resources, systematic procedures for the allocation of decisions help explain how entrepreneurs understand changes in internal and external environments, such as organizational structure and customer demands, to allocate resources better and avoid repeated allocation and unreasonable decisions. Strategic decisions involved in new product research and development (R&D), merger, acquisition, reorganization, and the allocation of resources. Such decision-making has a relatively prolonged effect on the organizations’ innovation-specific products, markets, and technology resources, which have a far-reaching influence and determines the long-term competitive advantage of enterprises.

Not urgent and unimportant (4^th approach):

Information asymmetry and simple actions in the entrepreneur investment decision could lead to decision risks. Entrepreneur should always comprehensively collects, analyzes and sorts out information, tracks the industrial and competitive situation; identify opportunities in emerging markets, studies business threats and other comprehensive information to help reduce the impact of irrational behavior to improve quality investment decision effectively.  Investment decisions that are not urgent and unimportant are mostly relaxed after weighing all other alternatives.   

In sum, the criterion success model helps understand the entrepreneur environment and how entrepreneur deal with investment options more effectively. It is a way of exploring real investment options rather than representing it. It encourages entrepreneurs to look for patterns of interaction and underlying options that shape the emergent patterns of decision-making. It is a way of selection that looks at the ‘whole’ first with its fit and relationship to its environment as a fundamental concern. Therefore, understanding how entrepreneur harness the benefit of investment options to integrate and circumvent the drawbacks of poor decision on investment is of great importance in leadership.

However, key issues are what should be inside and what should be outside the edges of the criterion success model? What should constitute the 1^st, 2^nd, 3^rd, and 4^th, and what should not? What will be the possible implication of a counterintuitive application of the criterion success model? An entrepreneur success depends greatly on the interests of the scenario as discussed above.

The writer is an entrepreneur, business analyst, and NPP parliamentary aspirant

The post Entrepreneurship Bulletin with Alexander Akwasi Acquah appeared first on The Business & Financial Times.

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