Entrepreneurial organisational structure
An entrepreneurial or simple organisational structure typically centres authority on an owner-manager or a small leadership group, with few formal layers and relatively informal communication. It can support rapid decisions and a clear personal direction, especially in a small organisation. As activity grows, reliance on the central decision maker may create overload, weak succession and inconsistent procedures. The label concerns organisational structure, not a guarantee that every employee has equal authority or that the business is innovative.
Worked example
A small repair business has technicians reporting directly to its founder, who approves prices, hiring and major purchases. Communication is quick, but work waits when the founder is unavailable. Growth may require clearer delegation and systems.
Common mistake
A flat entrepreneurial structure can be highly centralised. Do not confuse few management layers with equal decision-making power.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |
