Entrepreneur Interview and Personal Analysis - Assignment Example

Lecturer: Presentation: Entrepreneur Analysis Innovativeness The entrepreneur demonstrated innovative traits in his efforts to establish the business. He realized that catering services were lacking in the market and decided to take the opportunity to venture in the business. This is a tactical business strategy that allows a business to establish without competition and to acquire a great market share. The entrepreneur was self confident and started the business ignoring any uncertainties that would be faced after leaving his job as a waiter (Burns, 2011). He asserted that his job as a waiter was well paid, yet he took the bold step of fulfilling his desire to venture in to the business. Ardichvili et al. (2003) observes that if there were no self confident entrepreneurs to venture in to new businesses, then there would be no business at all. Pro-active and Self Motivated Being pro-active and self motivated was among the significant traits that contributed to the success of the entrepreneur in business. Being decisive than other people made it possible to make a choice regarding the suitability of the site for a business. Such entrepreneurs act quickly to take advantage of an emerging opportunity before anyone else (Burns, 2011). Laggards usually wait for others to establish businesses so that they can observe their success or failure to make a decision. The interviewee demonstrated determination to succeed in business despite the challenges it posed to personal life such as lack of time to think about marrying. Intrinsically motivated people usually derive satisfaction from what they do (Pink 2009). Intrinsic motivation was the significant driver to accomplish entrepreneurial goals making the entrepreneur happy and contented regardless of these challenges. He was determined to work more hours than he did at that particular time. Learning through Actions Learning in this investment has been as a result of actions whereby the outcome of the activities engaged in is the source of essential information for greater investments. For example, the interviewee asserts that he was not sure what to expect in the business. Nevertheless, the idea of operating in a unique manner was expected to augment efforts of attracting customers especially due to the fact that there were no similar shops offering a variety of services as the interviewee’s shop. According to Littunen (2000) creativity is significant in marketing since it helps in generating the right market mix to serve the desires of a wide range of customer demands. This business not only offers food and drinks but also a variety of other goods and services such as entertainment through music and live coverage of significant sporting events that attract customers. Visionary and Flair According to Burns (2011), “In order to succeed, entrepreneurs need to have a clear vision of what they want to achieve” (p 41). The interviewee demonstrated that he was visionary and flair through his efforts of promoting a shared objective among his employees and rallying them to support him in his efforts. They contributed ideas that influenced strategic decisions that enhanced the success of business. The employees were motivated to be part of the business and portrayed dedication to their work. His charismatic leadership was significant in encouraging people to work as a team. Charismatic leadership is significant in attracting followers. The leader has a characteristic allure and elegance, which are admired by subordinates. The Charismatic leader possesses self-belief and gathers followers through dint of personality and charm, rather than any form of extrinsic motivation or use of authority (Sosik, 2000). As Greenleaf & Spears (2002) observe, charismatic leaders are encouraging to their subordinates and try to pay attention to all their needs as well as making each person to feel important through appreciation of his/her contribution. Timing in the establishment of the business is a significant factor that led to its success. It was started when the opportunity presented itself and no other like minded investor had ventured in it. Willingness to take Greater Risks Burns (2011) portrays true entrepreneurs as people who are determined to take greater risks and live with even greater uncertainty than owner managers would do. He advises that new entrepreneurs need to understand that entrepreneurship is a course that attracts “long and stressful working hours where a substantial amount of risks must be taken constantly”. Carsrud & Malin (2010) argue that successful entrepreneurs have immunity to certain kinds of cognitive dissonance, such as choosing between family and business. They are therefore in a capacity to deal with dilemma as regards making a sound decision on what to pursue despite the significance of any of the ideas to their future. The strength of the business idea made the entrepreneur put family issues on the line of risk. Despite his advanced age, he affirms that it is not that he does not need a family. However, he is not certain when he is going to marry and have children. This is attributed to his devotion to long working hours and the desire to maintain high performance in the business. Antecedent Influences According to Bird and Schjoedt (2009) antecedent influences significantly influence entrepreneurship decisions. The interviewee’s decision was influenced by his family’s financial background and the first job that he was engaged in since his youthful days. Working as a waiter exposed the entrepreneur to interactions with clients while serving food and drinks. This was a significant opportunity where he learnt consumer preferences in terms of food and type of service. Despite having graduated as a light and sound engineer, the interviewee went back to the waiter’s job. This demonstrated that he had developed special attraction to the job. He eventually decided to take risk in the hotel business which he had acquired significant business after working for many years as a waiter. He had the conviction that he was bound to succeed based on his knowledge in the business. Learning through Mistakes The entrepreneur appreciates learning through mistakes. This is one of the significant attributes that helps in risk avoidance and improvement on old ideas. Organizational learning significantly contributes to entrepreneurial success (Salas et al. 2001). Learning from others and doing what they do differently and in a better way has enhanced business growth. This does not mean duplication of what other businesses engage in but rather investigating, selecting the most appropriate ideas, developing and aligning them with the business objectives. In this particular business, open mindedness of the entrepreneur allowed the contribution of other people in terms of satisfying customer demands. Flexibility significantly influences development since new ideas are generated and integrated in the business strategy without affecting the strategic objectives. Successful entrepreneurs do not rest business hopes on old ideas but keep on building on them to enhance success. This is necessary because of the erratic nature of the operating environment. For example, the difficult economic times have caused a reduction in the spending power of consumers and therefore variable pricing strategies have been adopted to maintain their loyalty to the products on offer. Personal Reflection Financial Risk There are numerous challenges that need to be overcome so as to successfully undertake entrepreneurial activities. One challenge is the financial risk involved in business startup. With the current economic difficulties, it requires a courageous mind to make a significant outlay for a new business. Uncertainties in the market and the economic crisis being experienced at the time have lowered the purchasing power of many potential customers and startups may encounter difficulties in establishing a strong market share. However, if potential entrepreneurs fail to engage in startups, who will do it? This is a question that is motivating to a potential entrepreneur to take the risk. Bagozzi et al. (2003) observe that entrepreneurs need to be meticulous and visionary to ensure that every action engaged in minimizes the probability of failure. They need to have the capacity to overcome the fear of embarrassment. Dedication Another major challenge is the dedication required for success in entrepreneurship. It may be demanding to an extent of sacrificing some of the personal development needs in pursuit of career objectives. According to Collins et al. (2004), successful entrepreneurs make testing decisions and take them gladly. It might be wearisome to work for more than eight hours a day, yet successful entrepreneurs are required to devote most of their time, probably more than twelve hours for their business. Nevertheless, it is a challenge that can be overcome through practice and within three months of dedication in terms of hard work and extra working time a focused entrepreneur is capable of coping with the demands of the business. Competition The prevailing competition in virtually any field of entrepreneurship with most of the competitors are well established also poses a significant challenge for a startup to thrive. It might take time before customers begin to appreciate the products offered by a new business in the market, yet a startup enterprise is expected to draw its customers from existing businesses. Marketing and awareness creation requires finances, which on the other hand increases the initial capital outlay. However, an entrepreneur needs to possess the capability of compromise and socializing with people and therefore the ideas of employees and customers may significantly help in overcoming the challenges that the business may face as a startup (Wilson & Gilligan 2005). Baker (2000) observes that application of generic marketing strategies such as segmenting, targeting and positioning of products can generate uniqueness in a startup among competitors. These are significant strategies that can help in dealing with the challenge of high competition. Sustainability in the Long-run The sustainability of business is a significant challenge that generates anxiety whenever emerging entrepreneurs join the market. Businesses that collapse before their objectives can be accomplished are discouraging and may lower the drive of startups. However, relying on long views in regard to developing ideas rather than evaluating short term benefits generates confidence of risk taking since it promotes the capacity of forecasting the nature of business three years ahead thereby lowering the fear of uncertainties. Moreover, the capacity and knowledge in entrepreneurship is necessary to rally people to support the accomplishment of business goals. Success is accomplished when people feel appreciated for their contribution in the decision making process (Bennett & Durkin 2000). The capacity to carry out research regarding how other successful entrepreneurs undertake business activities and integrating them in the startup in a unique way is significant in accomplishing sustainability. Organizational skills can augment business growth through setting up strategies to ensure that every human resource is utilized effectively. Maintenance of integrity in business generates trust among customers and this will be the key driver towards consumer loyalty whereby they enjoy the value of their money (Doyle 2006). References Ardichvili, R., Cardozob, R. & Rayc, S. 2003. “A theory of entrepreneurial opportunity identification and development”, Journal of Business Venturing, Vol. 18 pp 105–123 Bagozzi, R., Dholakia, U. and Basuroy, S. 2003. “How Effortful Decisions Get Enacted: The Motivating Role of Decision Processes, Desires, and Anticipated Emotions,” Journal of Behavioral Decision Making 16(4), 273–295. Baker M J, 2000. Marketing Strategy and Management 2/e, Macmillan Business. Bennett, H. & Durkin, M. 2000. “The effects of organizational change on employee psychological attachment”. Journal of Managerial Psychology, 15, 1, pp 126-147 Bird, B., and Schjoedt, L. 2009. Entrepreneurial Behavior: Its Nature, Scope, Recent Research, and Agenda for Future Research, Heidelberg: Springer,327–358. Burns, P. 2011. Entrepreneurship & small business, (3rd ed) Palgrave macmillan, Carsrud A. & Malin, B. 2010. “Entrepreneurial Motivations: What Do We Still Need to Know?” Journal of Small Business Management, Vol. 49, 1 pp. 9-26 Collins, C.,  Hanges, P. and  Locke, E. A. 2004. “The Relationship of Achievement Motivation to Entrepreneurial Behavior: A Meta-Analysis,” Human Performance 17, 95–117. Doyle P, 2006. Marketing Management and Strategy 4/e, FT Prentice Hall. Greenleaf, R. K. Spears, L. C. 2002. Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness 25th Anniversary Edition, Paulist Press Littunen, H., 2000, “Entrepreneurship and the characteristics of the entrepreneurial personality”, International Journal of Entrepreneurial Behaviour &Research,Vol. 6,6, pp. 295 – 310 Pink, D. 2009. Drive: The surprising truth about what motivates us. New York: Riverhead Books Salas, E., Bowers, C.,Edens,E. ed. 2001. Improving Team Work in Organization: Application of Resource Management Training. India, Crc press. Sosik, J. J. 2000. “The Role of Personal Meaning in Charismatic Leadership”. Journal of Leadership & Organizational Studies, Vol. 7, No. 2, pp 60-74 Wilson M S, & Gilligan C, 2005. Strategic Marketing Management, CIM/Elsevier. Appendix: Interview Outline – Entrepreneur Name: Nakis Polemitis Age: 46 Business: Owner & Manager of Fiesta Bar & Grill in Paphos, Cyprus Year Started: 2006 Interview Rationale This interview is to explore how entrepreneurs feel about their work and what their influences have been and it will be useful to understand the frameworks in order to be able to analyse their responses and make sense of their ‘story’. INTERVIEW 1) Hello, Mr. Nakis. First of all can you talk about your business? What is it that you specialize in? Fiesta Bar & Grill, generally talking, specializes in catering food and serving drinks. You could actually say that we are a restaurant with a twist; it’s a place where you can come with your family for dinner, with your date or even come with a group just for drinks and a good time. We offer a variety of goods and live coverage of all the biggest sporting events from around the world. 2) As a young man, was this always something that you always wanted to do? Well to tell you the truth this profession was not in my future plans when I was applying for universities at the age of 18. I studied, as strange as it may seem to you, Sound & Light Engineering at the University of Athens and on the second year of the studies I started working as a waiter just to help out my parents at that time as their financial situation was not that good. When I graduated and went back to Cyprus I continued to work as a waiter until another job was found on what I was specialized. Turned out to be I was specialized in other factors and here I am, almost 30 years later still doing the same job with a steady income. 3) Which issues drove you into starting your own business? How did the idea of your business come about? Well, I have been working as a waiter since the age of 20 and after 20 years I thought to myself to take the risk and start a business in what I am really good at and have a lot of experience. The idea didn’t take a lot of time to have effect, my brother helped me a lot in opening the place and the main theme of the restaurant is musical instruments and it was his idea; an idea proven to be really successful as a big number of customers always talk about them. 4) What were the factors that pushed you to open up this business at this area? When it was time to start looking for a place to set up the restaurant a lot of people where discouraged by my decision to open it at this very place. 6 years ago this place was just built and there was nothing around us, no shops, no others restaurants and the most important fact was that this was far away from the street so it wouldn’t attract many customers. However, I knew that this would work as it seemed to me that this area would soon blossom and be an attraction to anyone that would want to start a business of this kind. The reason was simple, 70% of the hotels in Paphos are located in this area so it wouldn’t take long for tourists to find us and come. 5) How would you describe the whole experience in the early stages of opening your own business? From what you said before I realise that you are risk taker, are you? The decision of finally taking that big step and actually start a business was a real tough decision for me as I was quite reluctant. The reason was mainly because it would take a substantial amount of effort to succeed and that meant a lot of hard work and stress. However, when the risk was finally taken the road to success didn’t seem too far as the people around me helped me and gave me courage to move on. As far as if I am a risk taker or not I would say that I am for the reason that I gave up a really good paid wage to start from zero. But we only get older so I had to do something in my life as well so I decided to do it. 6) When everything were all set up and ready to go, in which ways did you generate new ideas to help the business? Well the main idea when we started was to be different from others in the wide area which we accomplished easily as there weren’t a lot of other venues that offered the variety of services we do. Then, due to the fact I was mainly working in high class restaurants, I did not know what to expect from the business and what exactly the customers wanted, so I waited! After a couple of months it was noticed that the music in the place was really important and that the fast service was something that everyone was talking about. Also, by talking to our customers we realized their wants and needs and in a later stage we tried to put all those ideas into action. 7) What about your employees? How important has their contribution been to your business’s success? Glad you asked! Their contribution was immense in the early stages and still is. The dedication showed by the majority of the employees really boosted up the whole business and we started even having our regulars from the first months since opening. Their ideas and their interaction in every level of the business helped me substantially and I would say that having others working with you and listening to their ideas is really important. As Steve Jobs once said, the ideas of everyone must be heard as you will not know what you’re missing until they work for your rivals and succeed on an idea that could have been in favour of your business. A truly remarkable comment! 8) Can you tell me the most effective marketing tool that you used in order to promote the venue? Well it wasn’t just one specific technique that we used to promote the business but a mixture of ways to ensure that if the first way would fail the second one may have better chances and so on. One of the most important steps was to invest in signs about the restaurants and its products in a wide area which came to be the most successful way to advertise as we were looking forward to work mainly with tourists from the hotels surrounding us. Another way to maintain customers was to motivate my employees to talk to them in a friendly manner so that they would feel welcome and appreciated. To add to this, we also printed leaflets and take away menus which were passed around to tourists and locals in the busy areas of the city and also to nearby hotels. 9) How many hours a day do you work? As mentioned before, owning a business is really stressful and takes a lot of energy out of you as you must be dedicated 24/7 if you really want to succeed. So that’s what I actually do and I believe it’s one of the main reasons why the place has been profitable so far. My day starts at 11 in the morning and I leave the workplace at 2am, so I basically work approximately 15-16 hours every day and I can tell you one thing for sure; it’s exhausting, however, in order to keep the place up and running I need to supervise and have everything under control. 10) In order to become a successful entrepreneur or an owner-manager, which top three traits in your opinion, does an individual need? In my opinion the characteristics that individuals need in order to thrive in this kind of jobs are a lot more than you can imagine and by listing just three of them wouldn’t be sufficient. However if I had to choose the top three traits then I would say without any hesitation that all entrepreneurs and owner-managers must have an aspiration to succeed in their field and truly believe at what they do, because if they don’t then you who will? Secondly, the addition of dedication in this list is essential as all individuals that are about to take this path for a career need to know that they must be enthusiastic about what they do. Last, another important characteristic is innovation. I am not talking about creating something new from scratch and be innovative but seeing an opportunity, grabbing it and working on it differently from others so you can be unique. Like I did when I opened the restaurant, I examined what was missing from the area and there it was; a profitable business that has been running successfully for 6 years now. 11) Having in mind University undergraduates that want to become entrepreneurs, what piece of advice would you give them? Well, they need to know that it is a path with long and stressful working hours where a substantial amount of risks must be taken constantly. Most of the successful entrepreneurs are risk takers; I call them gamblers, as in many cases they jeopardize even losing their houses if they believe that their idea is so good. For them, not risking is the main risk. Also it will affect their life substantially as many of other entrepreneurs I know are either divorced or single because of the long working hours. So they need to question themselves if it’s really worth it. 12) How has your life been affected? Well soon I will be turning 50 years old and I have never married and at this very instant I am single. This kind of job really takes a lot out of your life but I must add that I really enjoy what I do and being the owner of this place and taking care of it and making it better day by day is enough for me. However I am not saying that I wouldn’t like to have any children or a wife but I took a choice and I have to support my decisions. 13) In your opinion, what is the biggest mistake that you’ve done during these years as an entrepreneur? I have answered this questions many times to my friends as well while discussing different matters. I always say the same thing: “I wish I had taken the risk of opening Fiesta Bar&Grill much sooner than I did”. If I had done so, I would have enough money even to help people around me as Cyprus a decade ago was a main tourist attraction and whoever was in this business at that time, has made a fortune. Now times are hard, many customers are reluctant in spending some extra money in a night out due to the fact that the cost of living has gone up. As a business we show understanding and try to keep our prices as low as possible in order to attract as many customers as we can. 14) Having in mind the turbulent economic times as you mentioned, do you have an “exit” plan from your business? I haven’t really thought about it to be honest as so far, at the end of every season our numbers have been up. I wouldn’t say I would sell this place though if rough times knock on the door, however I would reduce the working staff in order to keep the costs down until another solution would appear. Already, as you mentioned, the economic times are really hard so for the past 2-3 years we have learned how to adjust our prices in order to stay ahead of the competition and to keep the profit at high levels. 15) If you had to start all over again, would you still open this place and choose this profession? I would most certainly do, even if this means working throughout the day with small breaks. Owning this place has made me learn a lot of things about business, things that I wasn’t aware of before I start. Learning from my mistakes and most importantly adopting what others do in a better way in order to make it work for the business’s benefit. I would choose this profession as I love being able doing new things for the restaurant, new ideas that boost the sales up and keep everyone happy! 16) Thank you very much for this opportunity, you were really helpful and I wish all the best to you and your future business plans. The pleasure was mine as it’s always good to share your knowledge with others that wish to take this path for a career. Read More