Milestone is a subjective hypothesis in the process of operation made by the entrepreneur. Whether the milestone is a effective tool that is highly depends on the decision-maker. It is doubtable that the person who proposes the milestone is also questionable because the understanding of issues varies. However, the appropriate milestone can effectively measure progress.
It is mentioned by the authors (Smith,J.K. & Smith, R.L.) that each milestone functions as a working hypothesis about the venture. The example was given that an entrepreneur believes or ‘hypothesizes’ that a prototype of the idea can be completed in six months. If, prototype completion task takes nine months, the delay is an indication that some aspects of the venture need to be re-examined. Alternatively, the entrepreneur may have mismanaged the project. In the poor condition of management, it is not possible to use milestone as a measurement. It is possible to stage in terms of intervals that the entrepreneur can do comparison of the numbers from income statement and balance sheet to find out reasons of failure.
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