Many new entrepreneurs and
potential small business owners become actively involved with existing
businesses that have pyramid structures and designated hierarchies. At times,
this can appear confusing and frustrating, but understanding what a hierarchy
is in business and why pyramid ranking is of concern can help you to succeed as
an entrepreneur. This may be of particular interest if you are planning to
start a home-based business or decide to become a new, small business owner.
What is a hierarchy in
business?
The word hierarchy in businessdictionary.com is
“pyramid-like ranking of ideas, individuals, items, etc., where every level
(except the top and the bottom ones) has one higher and one lower neighbor.”
This should not seem to create a problem, but pyramid ranking can be of concern because it also “means greater
authority, importance, and influence” for those higher up or at the top.
Common sense suggests that
ideally, every entrepreneur or potential, small business owner should have
control of his or her own business, but it may be difficult to get started in a
new business. An entrepreneur may agree to participate in a larger,
well-established company or organization with nurturing capability or
potential, not realizing the full implications of a hierarchy or pyramid
ranking.
In a hierarchical structure,
the higher the pyramid ranking, the more financial and other kinds of benefits,
it should be possible to attain. Unfortunately, it does not always work that
way when the primary benefits all go to a person or those on the top. Those on
the lower levels of the pyramid may have to glean the fields, so to speak, in
order to survive financially.
Many individuals learn that
they are involved in a pyramid structure in their new business ventures or
home-based businesses too late, when all of their potential profits have
disappeared upwards and they have base-existence levels of income. Some
ambitious entrepreneurs are able to establish large groups that appear to be
successful initially, but find them taken over by others on a higher level of
the pyramid. All of their efforts seem to be in vain, too.
There can be positive aspects
to pyramids and hierarchy in business. For example, motivational training
programs offered by companies and organizations to new recruits, prove
beneficial with respect to learning how to organize and run home-based
businesses or develop new small businesses. Motivation encourages new
businesses to strive towards success. Another example is that of
business-oriented networks that prove advantageous to entrepreneurs and new
business owners, as well as others on different levels of pyramid structures.
Many companies, including government organizations, function with a hierarchy
that has a pyramid structure that works well for them and for others, in
different levels of the hierarchy.
The major area of concern with
respect to hierarchy in business and pyramid ranking has to do with moral and
ethical business principles and practices. In other words, entrepreneurs and
small business owners, even those involved in home-based businesses, can
succeed if the company or organization with whom they are involved has
appropriate moral and ethical, business principles and practices.
A word of caution is always in
order for anyone contemplating starting a new business. Appropriate research is
advisable to protect a potential entrepreneur, new small business owner or
anyone setting up a home-based business from unethical involvement and
inappropriate entanglement with a hierarchy of unethical business and its
potentially disastrous pyramid structure.
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