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Growing Your Business by Scott Shane, Robert Baron

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Motivating Employees: Maximizing the Value of the New Venture’s Human Resources

The early hires of a company might be acquaintances, former coworkers, or people referred to the entrepreneurs by close friends, so these individuals might well have high levels of motivation. But once a new venture begins to grow and to hire additional employees, the issue of motivation—of how to motivate these individuals so that they will do their best work—arises just as it does in every other organization. In fact, since every person on the payroll matters to a new venture and it cannot afford to support “free riders” who coast along on the efforts of others, the question “How can employee motivation be maximized?” is a key one for entrepreneurs. In this section, ...

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