The symbolic management of a startup Essay

In this assignment the discourse would be initiated by foregrounding a few cardinal words would add important value to the audience if the terminology in add-on to their indications is understood. Assorted factors are required to be considered during the start- up stage of a concern for case the cultural / societal factors, resources ( capital, human resources, etc ) , perceptual experience of the concern or the enterpriser ( sing the concern or the Entrepreneur from the clients eyes ) , etc. The perceptual experience from the position of the client is the chief focal point of this assignment as it relates straight to the symbolic direction or feeling direction.

“ Symbolic direction is the public presentation of symbolic actions, that is, a distinguishable signifier of feeling direction ( Arndt and Bigelow, 2000 ) ” . ” Symbolic direction can at best be construed as a subset of feeling direction, but non all signifiers of feeling direction are symbolic ” .

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Symbolic actions are actions in which the histrion shows or attempts to pull other people ‘s attending to the significance of an object or action that goes beyond the objects or action ‘s intrinsic content or functional usage. A symbol is something that stands for or suggests something else ; it conveys socially constructed significances beyond its intrinsic content or obvious functional usage ( Morgan, Frost, and Pondy, 1983 ) . Objects can expose both intrinsic and symbolic dimensions ( Lievens and Highhouse, 2003 ; Rafaeli and Vilnai-Yavetz, 2004 ) .

Impression direction refers to any behavior that has the intent of commanding or pull stringsing ascriptions formed by others ( Tedeschi and Riess, 1981 ) by modulating the information that is presented about people or their organisations ( Schlenker and Weigold, 1992 ; Ashford et al.1998 ) . Gardner and Avolio ( 1998 ) , nevertheless, have identified the development and use of symbols as a peculiar subset of feeling direction, which they call “ theatrical production. ” Furthermore, some feeling direction actions may hold small symbolic significance and propose small beyond intrinsic usage.

What are the assorted treatments around symbolic direction? Is it truly indispensable at the start up stage of a concern? Is it important for enterprisers to be culturally cognizant? Does civilization necessitate to be integrated it into their concern theoretical account? All of these inquiries are explored and consolidated to show a holistic position of the significance of “ symbolic direction ” in the undermentioned subdivisions.

Nature of endeavor culture/ discourse and entrepreneurship
An endeavor is a purposeful or hardworking project particularly one that requires attempt or daring ;

I used to hold a incubus for the first six old ages in office, that when I got the fundss right, when I had got the jurisprudence right, the deregulating etc. , that the British sense of endeavor and enterprise would hold been killed by socialism. I was truly afraid that when I had got it all ready to jump back, it would no longer be at that place and it would non come backaˆ¦But so it came. The face began to smile, the liquors began to life, the pride returned ( Margaret Thatcher, Sunday Times, 8 May 1988 )

The creative activity of an enterprise civilization was about lighting a cultural revolution which would “ refashion ” the work forces and adult females of the late 20th century, who were merchandises of about a century of “ crawling Bolshevism ” ( Marquand, 1992 )

The constitution of immense policies support was created after Margaret Thatcher made this statement in 1988 to guarantee equal support was available to little concerns. More value and slightly of a revolution was created around entrepreneurship and endeavors, although entrepreneurship has been around for centuries the elements of conveying about a cultural and social alteration through little concerns was rejuvenated by Margaret Thatcher in concurrence with assorted researches done in the US with consequences important gross would be generated form little concerns than the historical dependance on big Multinationals.

This platform increased the figure of little concerns in the western universe nevertheless there is a huge sum of unsuccessful enterprisers to successful 1s. However, merely a little fraction of innovations developed by independent discoverers reach the market ( 6.5 % ) . The chance of making the market is four to eight times less than for innovations developed by established houses. Why do merely a fraction of innovations developed by independent discoverers become commercialised when those that do commercialize are rather profitable and survive for every bit long as other start-ups? hypertext transfer protocol: //

Besides holding the features of an enterpriser which are by and large the follow:

Using enterprise ;

Risk-taking ;

Flexibility ;

Creativity ;

Independence ;

Leadership ;

Strong work moral principle ;

Make bolding spirit ;


There are besides abstract features required to be available in an enterpriser for case the enterprise civilization.

‘aˆ¦.entrepreneurs become skilled users of cultural tool kits instead than cultural pots ‘

‘aˆ¦founders of new ventures who utilize embracing symbolic linguistic communication and behaviors will derive cognitive legitimacy more rapidly than others ‘

‘..entrepreneurs must be skilled cultural operators ‘

( Lounsbury and Glynn, 2001:549 )

How can an enterpriser develop the cultural component of endeavor? Below are the 3 dimensions of endeavor and their definitions consequently:

Ethical Reform

Persons should affect themselves in activities that display ‘enterprising ‘ qualities such as autonomy, risk-taking, liberty, make bolding etc

Institutional Reform

Enterprising traits most likely to be developed within private sector organisations, peculiarly little concerns

Cultural Engineering

Link between institutional-ethical dimensions can be severed – expressed endeavor scheme needed in which cultural technology through instruction takes topographic point ( Gibb 1986, Keat 1991 )

Scope of endeavor policies, schemes, enterprises used to determine, influence and modulate enterprising behavior

( Taken from talk notes CB887 Entrepreneurship Lecture 1 slide 15 )

Is there a possibility of an enterpriser holding considered the dimensions of endeavor and the assorted other features that an enterpriser by and large should hold could still be unsuccessful?

Small Business proprietor V. Entrepreneur
Entrepreneurship is widely understood to be an individualistic activity with the airy battling against all odds to do the thought work. The term “ Entrepreneur ” is seemed to be a heroic individual which has led to assorted discourses on whether an enterpriser is born or made.

Harmonizing to a study by Northeastern University ‘s School of Technological Entrepreneurship, there is n’t truly such a thing as an inadvertent enterpriser. Some 62 % of enterprisers surveyed say they were inspired to get down their ain companies by their unconditioned thrust. Work experience and the success of their equals were cited by merely 21 % and 16 % , severally, as factors. In fact, 75 % of those surveyed say they launched their first venture by the age of 30.

So while concern proprietors — those who create occupations for themselves out of circumstance or necessity — can be created, it seems true enterprisers are born. The Deoxyribonucleic acid of true enterprisers propels them to acquire on the roller coaster drive that comes with establishing a venture. They rebelliously disregard ruddy flags of cautiousness, the words of naysayers, or any statistics that conclude their concern may neglect. hypertext transfer protocol: //

There are two schools of idea about what makes an enterpriser. The first is that anyone can make it if they truly want to, provided they put in the attempt. The 2nd – and this is the position of psychologist Adrian Atkinson – is that you have to be a certain type of individual and, if you are non that type, you are blowing your clip. hypertext transfer protocol: //

On the discourse of whether an enterpriser is born or made all consequences so far have been really capable although personally I feel fortunes can propagate an ordinary individual without any premeditated programs, to go a successful enterpriser.

Another important treatment is whether or non a little concern proprietor can be called an enterpriser ; Looking at the quotation mark from Hewitt:

Small concerns are the lifeblood of the economic system. They are at the head of this authorities ‘s attempts to advance endeavor, invention and increased productiveness. Small houses are vitally of import because of their function in the supply concatenation, the competition they stimulate and the thoughts and merchandises they bring to the market topographic point. A few figures illustrate this vividly. The 3.7 million SMEs represent 99.8 % of all UK concerns. They account for over half the UK ‘s economic activities, supplying 56 % of non-government occupations ( excepting fiscal services ) and 52 % of turnover. Small houses are and will go on to be the chief suppliers of new occupations ( Hewitt, 2000 ) .

The ultimate end of the enterpriser is to do money and hence any successful little concern owned by a individual or a group of people so they decidedly measure up to be called enterprisers. The same attributes required to run a big corporation are the same attributes required to run any successful little concern. What is the definition of a “ little concern ” ? It is an endeavor with less than 50 employees, with a turnover and balance sheet figure of less than 10million Euros. Another factor to bear in head asides profitableness in the concern is the fact that the little concern proprietor might non desire to research the option of enlargement to a larger concern.

Why focal point on growing?

Since the 1980s it is believed that an economic system such as that of the UK would profit well from a population of efficient and resilient little and average sized concerns

It has been extensively argued that the manner to make strong and resilient SMEs is to concentrate on little growing concerns

Research indicates that the proportion of little concerns which fall into the growing class ranges between 5 and 10 per cent

It has been suggested that out of every 100 start-ups merely 30 survive for more than 10 old ages and that merely 3 or 4 houses out of this 30 grow to any significant size

Out of the original 100, the 4 growing houses will make half the occupations in the group over a decennary

In general little concerns can be divided into 3 wide classs:

Businesss that fail within a short clip span

Businesss that survive but remain little

Businesss which achieve rapid growing

( Lecture Notes CB887 Entrepreneurship Lecture 7 slide 8 )

Small concerns visions should non ever be looking to spread out ; there are factors to be considered like the nature of concern, location, costs, etc. Another of import factor is the economic system really thrives off the little concerns as a important sum of the society is employed by SME ‘s.

Below are some statistics to back this analysis:

There were an estimated 4.5 million concern endeavors in the UK at the start of 2006

About all of these endeavors ( 99.3 % ) were little ( 0 – 49 employees )

Merely 27,000 ( 0.6 % ) were moderate-sized ( 50-249 employees )

Merely 6,000 ( 0.1 % ) were big ( 250+ employees )

Small and moderate-sized ( SMEs ) enterprises accounted for more than half of the employment ( 58.9 % ) and turnover ( 51.9 % ) in the UK

Small concerns entirely accounted for 47.1 % of employment and 37.2 % of turnover.

A little concern proprietor would hold the symbolic actions required to be an enterpriser due to the fact that ab initio before the little concern started off the from the origin phase at that place would hold been a demand for resources either fiscal or human capital which the concern proprietor would hold had to beginning. This is the same place an enterpriser would hold to been in when originating an thought. Therefore the there is no ground why a concern proprietor is non justified to themselves an “ Entrepreneur ” .

Symbolic Management
Mediation between single and environmental outlooks
Is it possible for an person to intercede between the fresh facets of a concern and abide by the outlooks and norms of the cultural environment they are located in?

We believe that a focal point on cultural entrepreneurship has the possible to lend to the development of a more comprehensive theoretical synthesis that crosses the Fieldss of scheme, entrepreneurship, and organisational theory. While the survey of cultural procedures has been cardinal to institutional and individuality research workers in organisational theory, it has been slightly backgrounded in entrepreneurial and scheme research. At the same clip, institutional and individuality attacks to organisations can profit greatly by better accounting for procedures on which resource-based research workers focus. We believe that conveying institutional, individuality, and resource-based positions together through the survey of entrepreneurial storytelling can usefully inform our apprehension of how new every bit good as already bing houses get resources and make wealth.


Successful enterprisers are non inactive participants in their cultural context but instead are skilled cultural directors who use civilization strategically t trade with the low degree of credibleness and legitimacy that stems from a deficiency of protagonists and public presentation history – this is symbolic direction ( Zott & A ; Huy, 2007: 74 )

Looking at the statements above it is imperative that the enterpriser incorporate the cultural facet of the environment or else they are puting themselves up for failure. How else is it possible to portray one as holding legitimacy where there is non old path records to position ;

Although the intrinsic content or functional usage of an action is frequently measured by economic or public presentation yardsticks ( e.g.speed, defect rate ) , its symbolic significances in a peculiar cultural surroundingss are evaluated harmonizing to subjective dimensions such as emotions, penchants, and values ( Rafaeli and Vilnai-Yavetz, 2004 ) , every bit good as logic and precedency, which can act upon the determinations of resource holders ( Brown, 1994 ) .1 The intrinsic dimension of entrepreneurship could affect forming actions to ordain a fresh thought, such as developing concern programs, happening investors, engaging employees, and pulling clients ( Aldrich, 1999 ; Delmar and Shane, 2004 ) . Meanwhile, the symbolic dimension of these actions can do the new venture familiar and believable to identify groups ( Lounsbury and Glynn, 2001 ) . Hargadon and Douglas ( 2001 ) , who studied Thomas Edison ‘s debut of the electric lighting system, suggested that enterprisers design and show their inventions to intercede between the fresh characteristics of their offerings and the outlooks, norms, and regulations of their institutional environments. In this manner, they use symbolic action to make the legitimacy they need to get resources.

It is perceived that an enterpriser is at hazard of non acquiring the appropriate degree of resources if they do non look to be believable or act in a mode that does non conform to societal beliefs and values ; Hence before the resource holder the enterpriser lacks legitimacy.

Symbolic Actions
As Feldman and March ( 1981 ) and Pfeffer ( 1981 ) noted, utilizing symbols so that actions will be interpreted in ways that are compatible with prevalent norms and values is particularly of import when stakeholders find it difficult to measure and command exactly what they might acquire from an organisation. Symbols suggest classifications that help people frame societal state of affairss or construe equivocal 1s ( Ashforth and Humphrey, 1997 ) , and they are of import for enterprisers, who frequently work in extremely unsure contexts.

For case before the development of a merchandise, there is no physical grounds that this merchandise would be a success or non, therefore the stakeholders would hold to trust on their apprehension of the potency of this merchandise in the society and the whatever the enterprisers would edify with. There are assorted methods an enterpriser can utilize but here are a few below:

Sample choice and informations aggregation

Datas analysis

However it ‘s non merely the methods of symbolic actions that affair but the bringing of the information gathered in other words a booster can be prepared but non holding the right selling accomplishments would end the merchandise. It ‘s better for a good booster to advance a bad merchandise than the other manner unit of ammunition.

As discovered by Zott & A ; Huy, ( 2007: 84 ) :

The four key accomplishments required by an enterpriser when advancing a merchandise and the Illustrations of High and Low Skilfulness in Symbolic Action along Four Dimensions


High skilled response: Considers hard currency restraints, uses engineering to work around them

Low skilled response: Reflects on restraints, yet non certain how to work around them.


High skilled response: Founder understands how of import database is for executing symbolic actions and is able to construct and keep it scrupulously.

Low skilled response: Is non even cognizant of factors that enhance credibleness.


High skilled response: Founder pays attending to other people ‘s perceptual experiences.

Low skilled response: In the early yearss, laminitis failed to take resource holders ‘ perceptual experiences into history ; investors expected industry-specific cognition.


High skilled response: Founder combines symbolic action with a personal, face-to-face communicating manner.

Low skilled response: Laminitis realizes now that initial procedure based on cold-calling possible clients did non work yet did non see a more proactive attack ; adopted a inactive stance alternatively.

Start Up Phase and Symbolic Management
The start up stage of a concern is a important phase which tests the capableness of the enterpriser ; In order to get resources there are some cardinal properties that resource holders would be acute to see as a symbolic action displayed by the enterpriser.

Zott & A ; Huy, ( 2007: 87 ) researched this properties and the consequences were as follows ;

Personal Capability: Are at that place any makings achieved by the enterpriser which may hold some relevancy to the development or publicity of the merchandise? Did they go to a esteemed school?

Personal committedness to the venture: Some laminitiss inour survey accepted fiscal forfeit and delayed character satisfaction through a assortment of inventive strategies that non merely preserved cherished hard currency for their houses ( intrinsic dimension ) but besides emphasized their personal committedness to them ( symbolic dimension ) .

Professional constructions: Conveying professional constructions refers to ways of showing the seeable properties of the company that are normally taken for granted, for illustration, its legal position and corporate hierarchy ( Meyer and Rowan, 1977 ) .

Professional procedures refer to organisational activities that conform to regulations of proper behavior and attitudes with regard to reason and answerability ( Weber, 1947 ) . As Feldman and March ( 1981 ) pointed out, organisational procedures may be more of import than the results they produce. We found that enterprisers acted symbolically to convey the professionalism of their organisational procedures, such as engaging staff utilizing really sophisticated recruiting techniques.

Esteemed stakeholders: As an on-going concern, a new house needs to be seen in good company with high-profile organisations and persons. Our informations showed that enterprisers attempted to accomplish these ends through symbolic actions such as dropping high-profile names, adverting relationships with celebrated people or companies, or affecting esteemed foreigners as company representatives in meetings.

Personal attending: Entrepreneurs from assorted sample houses remained concerned that the comparatively little size of their ventures made them easy to overlook or bury. Acutely cognizant that larger companies deal with many providers, some ( but non all ) enterprisers made witting attempts to be noticed or remembered. By making so, they maintained and expanded their resource holders ‘ consciousness of them, to bring forth repetition concern or be introduced to other companies.

Entrepreneurs trade with a assortment of resource suppliers who have different involvements and values, a symbolic action that entreaties to one might non appeal to another. The “ jurisprudence of needed assortment ” ( Weick, 1979 ) is likely to use here. Furthermore, ordaining a broad assortment of symbols is likely to be more effectual than restricting one ‘s scope, because symbols might be mutualist and reenforce each other ‘s significance. Entrepreneurial houses need to convey credibleness by utilizing many symbols and can non afford to trust on the effects of merely a few.

The enterpriser needs to hold engaged in equal research and to believe and hold a wide apprehension of their society and environment as a whole.

The symbolic direction of an enterpriser is the finding factor to whether or non resources can be acquired and as such is a important country the enterpriser is required to put well in before seeking resources. Without the resources, there is no merchandise, service or concern.


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