There is a difference between operating an enterprise and managing and enterprise which must be clearly understood by the entrepnreurs. Operating and enterprise often involves buying or making goods and services, pricing, selling, and servicing. Although different products/services require different operations, yet, these operational functions are governed by common management principles. However management is not the same as operation. Operating is physical while managing is mental. For managing an enterprise effectively, the first generation managers must learn to perform the basic management functions of planning, organizing learn to perform the basic management functions of planning, organizing staffing, directing and controlling.

An entrepnreurs must acquire management skills to manage his enterprise successfully. Any deficiency in the performance of management functions would lead to serial problems such as:

(i)    In effective utilization of resources leading to wastages.
(ii)    Poor productivity.
(iii)    Poor productivity.
(iv)    Conflict between employees.
(v)    Poor organization.
(vi)    Difficulty in motivation of employees.
(vii)    Barriers in communication.
(viii)    Ineffective control system.

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