Entrepreneurs have forced companies to do away with their authoritarian, sclerotic way

Approximately 27 million entrepreneurs start or run businesses in the United States each year, according to the latest available data from Inc., which represents about 14 per cent of the population.

Entrepreneurs have various reasons for starting businesses such as dissatisfaction with their jobs, wanted to create something from scratch, or the opportunity to make important decisions.

But, whatever their reasons for doing it alone, entrepreneurs have dramatically changed the complexion of the workforce.

Here’s how.

More outsourcing

Because of the increase in service entrepreneurs or freelancers, more companies are outsourcing these professionals to design their websites, write content, manage their books, execute their social marketing and to provide valuable consulting services.

One reason for this dynamic is that entrepreneurs enable businesses to contract with highly qualified people and still save on costs, according to Hera Herald.

Greater flexibility

The influx of small business owners is forcing companies to be less rigid in their organizational structures, decision-making processes and how they conduct business. Many are allowing their employees to telecommute because they’ve seen how this flexibility can foment new ideas and improve morale with entrepreneurs.

Some companies are also doing away with cubicles to force people to work together and enjoy the synergism of their efforts. As thought patterns, economic times and technology changes, the traditional workforce is growing, evolving and changing with it, according to Entrepreneur’s Handbook.

Companies focusing more on creativity

For the most part, entrepreneurs have forced companies to do away with their authoritarian ways. Instead of all the red tape, employees are encouraged to exercise their creativity and voice their opinions in meetings.

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Corporations are also using matrix structures more, where employees have multiple responsibilities and report to more than one supervisor. Some executives have even been forced to create separate organizations to promote entrepreneurship in their corporations, according to Hera Herald.

Exit strategy for employees

Because of all the incubator programs, support organisations and investors that help entrepreneurs succeed, employees who work for companies realize they have more options than just getting another job.

Once they get some experience or better familiarize themselves with their industries, they’re more apt to start their businesses. One reason for this is that aspiring entrepreneurs often study others who start businesses, so they already know some of the procedures involved.

Workers may also start their ventures part-time until they have enough money to quit their jobs.

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