Entrepreneur Interview & Personal Analysis - Essay Example

? Entrepreneur interview & personal analysis Table of Contents Table of Contents 2 0Interview questionsrationale 3 2.0Evaluation of the entrepreneur 4 3.0Reflective discussion 8 List of References 10 Appendix: Interview Questions 11 1.0 Interview questions rationale An entrepreneur is modelled in different ways and as such, no universal theory has been accepted in explaining the entrepreneurship. There is a greater diversity when it comes to the phenomena of an entrepreneur and therefore; each and every entrepreneur does exhibit different reasons for being motivated to start a business, how he or she handles the challenges and how such a person perceives business. There might not be averages in this profession since each person has a different exposure to opportunities and would thus do things in a different way as compared to the other (Shane, 2000, pp.448 – 469). Homogeneity in describing entrepreneurs might not be achieved because of the numerous types of business, different environments for doing business, differing backgrounds, and other issues that are unique to a given business (Baumol, 1993, pp.197 – 210). The questions in this entrepreneur interview and analysis are aimed at establishing the reasons for the entrepreneur, Mrs Jane Norvak, to start her business, how she runs it and what she perceives or feels about the business she runs. These questions are formulated within the background of entrepreneurship theories and frameworks that have been explored both in class and outside. Some of these issues regard the motivation to start business, how the business is run, the challenges of running a business, and how the person feels about running the business as compared to if she did not have it or if she were employed (Shaver & Scott, 1991, pp.23 – 46). There are varieties of businesses that are run across the country. However, the choice of the interviewee for this paper is the Salon business, Norvak Beauty Salon and Parlour. The business is classified within the small and medium enterprises (SMEs) and thus a personal interview was very necessary. Norvak Beauty and Parlour is a sole proprietor kind of business and is thus family owned by Jane who is a single mother of 26. Many theories have been put forward including psychological theories which try to explain the mental perceptions of entrepreneurs as helping to explain why and how they do business. Most of these theories have majored in personal traits and perceive entrepreneurs as having some unique traits from those of the non-entrepreneurs, while other think of someone’s background as being a significant contributor to doing business (Locke, 2000, pp.23-34). Others have looked at it from the locus of control point of view. An entrepreneur is also perceived to be a risk taker because from these risks, he or she reaps benefits that come with opportunities taken (Shane, 2000, pp.448 – 469). Researches carried out in the recent past have mainly addressed issues to do with macro-level environmental forces when it comes to entrepreneurship. The individual decision-making processes of entrepreneurs and how they have internally perceived what they do on a micro-level has not received much attention. What most scholars concur with is the fact that good economic conditions do encourage successful entrepreneurship and should thus be promoted if growth of businesses taking up various opportunities need to be realized. These issues will be addressed in the paper based on the information gathered from Jane Norvak as the entrepreneur in this case study or interview. 2.0 Evaluation of the entrepreneur Jane indicated that she has been in business for three years now and she started it while she was 23 years of age. This actually falls within the most active group of youths. The business is Norvak Beauty and Parlour where she deals with many customers who come for the beauty services and cosmetics. She also said that her family members are not in business since they are employed in various professions. This puts to question whether family background determines if one becomes an entrepreneur or not (Norvak, 2011). When asked why she chose to set up a business instead of looking for employment in the white collar job sector, she said that she preferred doing business because this gave her a sense of independence and control over her affairs. She talked of being an outgoing person who loves life and would not want to be pressured for what she has not done or what she has to do (Norvak, 2011). This seems to be in line with the argument that most entrepreneurs are motivated by the need for independence and achievement of personal goals in life. The statement also is in line with the theory of locus of control whereby an entrepreneur holds a belief in the personal abilities to start and finish things through individual actions without being supervised. She said that the business gives her personal satisfaction and she thus loves what she is doing (Collins, et al., 2000). When asked how she felt about the trend of her business, Jane was very optimistic about her business. She gave an analysis of how her business has managed to wither the storms of the financial crisis and still managed to come out strong with even more profits. She said that people will always go for beauty even when they are sleeping hungry! This shows the kind of optimism that entrepreneurs have (Norvak, 2011). There are many challenges faced by this business because of the stiff competition in the market. Jane notes that beauty business is flooded and needs sharpened skills that are able to pull customers rather than push products to them. The other challenges are poor incentives from the government to entrepreneurs and on this point she talks about high income taxes imposed on businesses which make it hard for small businesses to grow. A successful entrepreneur understands his or her business environment so that he or she can be able to strategize and have a competitive edge to other competitors. Lack of enough finances to boost her business is also another challenge (Norvak, 2011). Jane thinks the opportunities for growth in this industry are immense and that she only needs to work a little smarter. As per her statements on this issue, she notes that the beauty industry is dynamic and most rewarding. She has recorded a high level of customer loyalty due to her exceptional services. She also says that the male gender has come up strongly and men are currently seeking beauty services such as manicure, pedicure, massage, and hairdos among others. This pool of customers pay well and it is her new market segment. She also sees opportunities in other industries where beauty can work alongside them such as in communication where news casters and other presenters need makeup before going live on stage. She plans to get more professional contacts to help her achieve this and she has chosen a marketing plan for this process. Entrepreneurs typically see opportunities where most people do not and are always willing to go an extra mile (Norvak, 2011; Shane, 2000, pp.448 – 469). In the coming 5 years, Jane sees herself at the top of the beauty business. She needs to expand the business to accommodate the male segment, increase the number of staffs who are currently 12 to around 30 and bring in new services such as body therapy and event management in terms of beauty. She has started branding her business and thinks that this period of 5 years is enough to enable her rank among the top three business providers across the country. She is also in the process of developing cordial relationships with her suppliers of cosmetics and other beauty products to benefit from the supply chain (Norvak, 2011). When asked about if she would still get into a business venture even without being sure that it will succeed or not, Jane indicated that she would still give such a venture a try because she believes that a wise investment might be more beneficial and thus might succeed or not. She argued that nothing is perfect and if the idea turns out to be bad, she would lose and move on, but if it turns out to be a good one, her business stands to benefit more. This question was meant to gauge whether entrepreneurs are risk takers who see opportunities in risk or not (Norvak, 2011). Routine business practice appeared not attractive to Jane since she said she prefers doing new things and adapting to the ever-changing business environment. She believes in innovations that bring new beauty styles and fashions to the market for the benefit of her customers. If you do not give your customers something more exciting than what others are giving, then you stand to lose more since they will be attracted elsewhere (Norvak, 2011). The issue of taking responsibility for mistakes done in business and other actions that impact on the business came up. Jane said that she prefers being accountable for the decisions taken and is able to withstand the repercussions since she learns more from such occurrences (Norvak, 2011). She alleges that her customers always go expecting good service and value for their money. This has made her adopt the phrase, ‘We pride in giving good service to our customers.’ Putting customer fast is the secret that she discovered and has trained her employees to take good care of the demands of customers (Norvak, 2011). When asked whether she was willing to change her business and do some other business in a different industry, Jane agreed that if such a new business idea was more exciting and viable, she would give it her best shot. She says that opportunities for doing things differently are welcome and that she could find a way out (Norvak, 2011). 3.0 Reflective discussion This entrepreneur was influenced to start her business out of the need to become independent and achieve success in business given that she did not like employment because it could not guarantee her that. Entrepreneurs work very hard and smarter and have the immense commitment to what they do besides having the perseverance trait (Locke, 2000, pp.23-34). When presented difficulties, they see opportunities in them and try to take advantage of such scenarios. They also have the burning desire to always excel in whatever they do and do not like keeping the status quo and as such become very innovative in what they do (Shane, 2000, pp.448 – 469). Environmental factor do present various effects on an entrepreneur. In a situation where enabling factors are in place, then the entrepreneur is able to achieve his or her goals and objectives. The driving forces could thus be summed up as seek for autonomy; profit making; independence; self-recognition; the need to create something which is new; making a difference in life and society; desire to grow a business starting from scratch; and the excitement to become an entrepreneur. The personal qualities that have been identified in this study include the intellectual challenge and risk taking attitude. Commitment is very essential for the success of business and the role a business owner plays is very important in making the business achieve the desired goals. Innovations play a critical role in the success of an entrepreneur because businesses are always evolving and the customer needs are ever-changing. It is therefore; important that entrepreneurs innovate in order to stay ahead of the competition by gaining competitive advantage. Businesses that are not innovative remain stagnant and would not survive in today’s volatile business environment. Innovation results when one is able to introduce new products in the market; improves on existing technology or comes up with a new production method; opens a new market for the products; finds a new source where he or she can get raw materials by developing supply chains; and is able to introduce a new organization in whatever industry he or she targets. It also needs that an entrepreneur exercises a high sense of creativity and always come up with new ideas and ways of doing things. If creativity, innovation, good management skills and better business knowhow are combined, then such a persona definitely does excel in business (Shaver & Scott, 1991, pp.23 – 46). It was learnt that one has to do whatever it costs him or her and what is necessary in order to succeed in business despite the industry. A stronger customer focus is also very important. Entrepreneurs should have a vision of investing long term and shun away from short lived benefits. One needs to also be hands-on while at the same time multitask to succeed. Financing of business is important for an entrepreneur but it should not be the reason why one cannot start a business since most entrepreneurs are driven by good business ideas rather than monetary basis. If an idea is well constructed and put forward, it is easier to develop a business and grow. Businesses that flourish are the ones built on innovative and outstanding ideas and take little effort to do so. List of References Baumol, W. J. 1993. Formal Entrepreneurship Theory in Economics, Existence and Bounds. Journal of Business Venturing 8, 197 – 210 Collins, C., Locke, E., & Hanges, P. (2000). The relationship of need for achievement to entrepreneurial behaviour: a meta-analysis. Working paper, University of Maryland, College Park, MD Locke, E. A. (2000). The prime movers: traits of the great wealth creators. New York: AMACOM, 23-34 Norvak, J. (2011, November 2). Entrepreneurship Interview. (Student, Interviewer) Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448 – 469 Shaver, K. G & Scott, L. R. 1991. Person, process, choice: the psychology of new venture creation. Entrepreneurship, Theory and Practice. Vol. 16, No. 2: 23 – 46 Appendix: Interview Questions Name: Jane Norvak Age: 23 years Occupation: businesswoman Name of business: Norvak Beauty Salon and Parlour Type: sole proprietorship How long have your been in business? 5 years Are your family members in business or employed? No. they are all under employment. Why did you choose to start up a business instead of seeking corporate employment? I needed independence and achieve something I can call mine. I also do not like supervision. How do you feel your business is doing? Very good despite the many challenges in the industry and the recent financial crisis. What are the challenges you have faced in starting and running your business? High competition due to flooded market, poor financing and lack of government incentives Do you think there are opportunities for growth? Many opportunities exist. Other new business segments are opening up such as male beauty. Where do you see your business in the next 5 years? I need to expand and venture into other business segments. Beauty therapy would be best choice in my expansion. Staff number should also have been increased to at least 30. If you were not sure about a certain business venture, would you still go for it and invest your capital? Yes. That would be quite an opportunity to go for. Failure and success is both human. Do you believe in routine business conduct? No. I believe in keeping up to the trend through innovative and creative services to my customers. Do you feel you take responsibility for everything that goes on in your business? Yes. Failure or success depends on my decisions and actions. What do your customers want? Better service and tailored products that suit their taste. Do you think you can change your business and do something else or another business? Yes. If I get a new opportunity, why not? Read More