Which is a disadvantage of an entrepreneurial structure?

In an entrepreneurial structure, one of the main characteristics is that decision-making is often centralized around a key leader or a small group of individuals. This concentration of decision-making authority can lead to a heavy workload for the main decision-maker. They are responsible for all critical decisions, which can be overwhelming and may also lead to stress or burnout over time. The reliance on a single individual can create bottlenecks in the decision-making process, especially during high-stress periods when quick responses are needed, as all issues often require their attention.

Other characteristics of this structure, such as quick decision-making processes, empowered staff, and a high level of employee initiatives, are generally seen as advantages rather than disadvantages. The fast pace of decision-making can enhance agility in the marketplace, while motivated employees can drive innovation and productivity. However, these positive outcomes can only thrive if the decision-maker is effectively managing their responsibilities. Therefore, the heavy workload on the main decision-maker becomes a notable disadvantage in this organizational structure.