Interview with an Entrepreneur - Essay Example

Interview with an Entrepreneur Table of Contents Table of Contents 2 0Interview Questions Rationale 3 2.0Evaluation of your entrepreneur 4 3.0Reflective discussion 8 Bibliography 10 Appendices 11 Appendix 1: Interview Questions and Summarized Answers 11 Appendix 2: Leham Company 13 1.0 Interview Questions Rationale Traditional research in this field of entrepreneurship has always held the argument that entrepreneurs have certain distinctive characteristics that are psychologically oriented. Entrepreneurial behaviour and dimensions have also taken over the description of who an entrepreneur is, how he or she thinks, and how this individual handles his or her business ventures. The feelings and challenges faced by an entrepreneur in the course of doing business also become very important. Confidence is always thought to be exuded by an entrepreneur in the face of high risks, uncertainty, and opportunities as well (Palich & Bagby, 1995, pp.425-438). Entrepreneur ends up assuming certain risks associated with failure or loss and creates a new business venture while at the same time insures other ventures by guaranteeing them specific returns (Sternberg & Wennekers, 2005, pp.193-203). Intrinsic personality traits have formed what might be commonly referred to as the big five personality dimensions of an entrepreneur. The five factor model of personality related to an entrepreneur takes a very descriptive view of these five dimensions considered being major dispositional factors relating to the personality of an entrepreneur factors (Burns, 2008, pp.34-43). These big five dimensions that characterize an entrepreneur are the need for achievement where the person has a huge ambition of meeting certain goals in life; need for independence or autonomy and by these the person creates a future for him or her; locus of control, which is normally internal in nature; risk taking where the entrepreneur is able to weigh risk magnitude against the potential returns based on opportunity and takes the latter; and self-efficacy in which he or she holds a high personal opinion and is not discouraged by rejection (Palich & Bagby, 1995, pp.425-438). Indeed, a set of personal attributes, principles, and beliefs influence the behaviour portrayed by the person and in turn lead him or her into creating and managing personal businesses (Sternberg & Wennekers, 2005, pp.193-203). These issues act as motivators for taking such a venture in their lives. The societal factors have also been viewed as having some influence on the choices made by an entrepreneur. The availability of opportunity in a certain setting could still be an important trigger for starting up a business venture (Shane, et al., 2003, pp.257–279). However, the entrepreneur is thought to have certain unique opportunity identification and analytical skills that not all people have them. Thus, they are able to see opportunities in places where others consider as ‘deserts’. Trigger factors for entrepreneurial ventures have been pointed out by GEM as being opportunity and necessity (Ardichvili, et al., 2003, pp.105-123). Other scholars have had to use different approaches in describing what pushes one to become an entrepreneur. The rationale for having this interview with an entrepreneur, Mr Fahad Al-Hanaki the owner of Leham Company, is to establish the dimensions that result into creation and management of a business venture. This will be done by asking questions which are pertinent and related to how he feels about the business, the challenges experienced, and how he has managed to overcome them, and what he thinks is the future of his business. The extent of success the company owned by this interviewee is also another factor that influenced choosing him for this study. 2.0 Evaluation of your entrepreneur Fahad was asked what the company is and the business it does. He outlined that Leham Company is for trading industry and also takes part in contracting. It is based in Riyadh, Saudi Arabia. It deals in many things such as provision of construction and maintenance materials, manpower, steel and aluminium fabrications, and manufacturing, among others. It started in 1986 and traded as a small company expanding slowly to what it is today. When asked how he ended up constructing such a big company, Fahad attributes this to his vision of being the best businessman in Saudi Arabia and in the global market. He says that he saw the opportunity in the various industries and thought of how to best benefit from them. Then the idea of Leham Company was born. Fahd is an engineer which is his profession. He considered starting the business in the construction and manufacturing sector first because this was his field of specialization and thus knew it better. He also feels that the industry has not been fully exploited. The interviewer sought to establish the reasons why Fahad decided to go into business rather than sticking into the employment sector for white collar jobs that could be more prestigious for him. He alleged that he was motivated by the fact that he disliked being supervised at work. There is no independence at work and people have to make decisions for employees, who would include him. This scenario is demeaning him. And as such, he saw getting into his own business as a way of becoming autonomous and gaining all the independence he needed. This could help explain why Fahad is still the Chief Executive Officer as well as the General Manager of Leham Company. He also points out the fact that there are many opportunities in Saudi Arabia for business ventures in hard industries like construction, mining, and manufacturing. Taking advantage of these opportunities was the best decision that he could have made at the time, he says. On this point, he also noted that many companies in Saudi Arabia did shoddy jobs in the industries and thus he needed to show them how efficiency could be practiced and spur huge economic growth. Fahad was asked how the idea of starting up Leham came across his mind. In his response, he said that he always dreamt of doing good business while he was growing up. His family has a background of business practices and thus to him, education was simply a way of broadening his mind but he did not think of employment. The idea came to his mind after an observation made on the potential market that this industries faced if they could be well handled. The idea was also well cemented when he realized that the government had a bigger need for these commodities and therefore; he thought of how to establish himself as one of the major suppliers of the government. Fahad was asked about what he felt was the biggest challenge that has faced him in his business life. He pointed out that challenges do come often and thus the only thing he has to do is look at it with a positive eye and seek ways of solving it. The biggest challenge for him was during the expansion of Leham which had started as a small company and was now daring to go big. The uncertainty of such a success was real. The expansion demanded a huge amount of money, which was not fully available. The challenge thus lay in working out mechanisms that could guarantee continued business and success of such an expansion project. The company almost went bankrupt but visionary leadership and desire for success pushed him going until the company got onto its feet. There are many things he points out as having had a major impact on the magnitude of this challenge: the capital was insufficient; changing from traditional small business practices to the new mode of doing big business; change of management structure and system to support the new expansion venture; and, risks of bankruptcy involved, among other issues considered minor. He however, braced them all and came out strongly. The interviewee was asked whether he felt like giving up doing business. He was amazed at this question because it seemed absurd to him. Giving up is not an option to him and he indicated strongly that even if the business was to collapse, he would still live and die a businessman doing some other businesses. This shows the kind of confidence and determination that an entrepreneur exhibits in him and business. When asked about a mistake he has done in business and what he did about it, Fahad laughed and said that business is about making mistakes and that all one has to do is learn from these mistakes and change the course for a better future. He says he once trusted an extended family member who let him down in his business and thus learnt to separate business with extended family relations. However, he notes that it is not an easy decision to make. When asked about restarting doing his business and if he thinks he would do it differently from the way he does now, Fahad smiled and said he trusts his business practice and that believes he is doing what is best at the moment. He thus does not regret about his actions and says he could do the way he is doing over and over again, until he found another more interesting and rewarding way of doing it out of his personal initiative and experience. Fahad was asked about the achievements that have made him proud in his business life. Here, he talks about Leham Company and what it has managed to achieve by being what it is today. The company has achieved immensely in provision of efficient, quality, and very economical products and services and is currently a giant in the construction, manufacturing, and trading industries for goods and services. Being a CEO and GM for such a reputable company is an achievement that makes him smile all the way because of the fact that it is an initiative of his own hands and mind. This is in line with the theory that suggests need for achievement as being a major motivational factor for entrepreneurs (McClelland, 1988). When asked about who gives him advice, Fahad says he believes in the initiatives of other people and life experiences have become best advisors for him. Looking at what others are doing, improving on it, and doing it his own way has been the best source of advice for him. On the tough decisions regarding the business, he says he solves them amicably and consults whenever he is not sure. Fahad believes that no one has all the answers. Fahad says the future looks brighter. This he attributes to the growing domestic market, stable currency, and government policies that are more favourable to local businesses. He also notes that his practice of sustainable business should pay off in the long term. Fahad believes that taking risks is important and even when it could have negative consequences to the business, the benefits do outweigh the negative outcomes and this acts as his impetus for choosing to take risks in business. He says the whole business idea is risk dependent. 3.0 Reflective discussion There are seen individual initiatives and behaviours that could help explain why the entrepreneur decided to create a business (Ardichvili, et al., 2003, pp.105-123). From the above analysis, it can be clearly seen that issues such as organizational skills, self-dedication of the person, resourcefulness, acquired skills, exploration, and drive are good recipes for one to start and run a business. Fahad does not mention money as his motive for starting the business but rather points out the opportunities that he saw and other non-monetary factors (Burns, 2008, pp.34-43). This shows that profit is not the main determinant of one starting up a business. Business opportunities availability has been perceived by many theorists as being able to trigger one into starting a business. The need to satisfy a demand in the market could act as an opportunity and thus developing a product which could satisfy this opportunity becomes the target of an entrepreneur (Ardichvili, et al., 2003, pp.105-123). Variables related to personality have thus an important role to play in the entrepreneurial process. The level of cognition of an entrepreneur and the ability to recognize opportunities where others do not is a vital tool for entrepreneurs. Also, the role motivation plays in this process cannot be ignored together with the aspect of survival, both personal and for business (Sternberg & Wennekers, 2005, pp.193-203). Need for achievement makes an entrepreneur work harder and exploit all the opportunities in his reach. This is driven by the ambition and vision to meet certain high goals that the person sets. When an entrepreneur meets these high goals, he feels proud for having achieved the best. The fear of failure is real but this does not alter an entrepreneur from taking risks and exploiting opportunities. The need to succeed and create one’s own success story creates the desire to do more (Sternberg & Wennekers, 2005, pp.193-203). Entrepreneurs have been seen to exude a strong sense of wanting to be independent and would do all they can to achieve certain high levels of autonomy. Just as it has been seen in the above scenario where, even after starting a successful business, Fahad still remains as the CEO and GM. this shows he is not willing to be supervised or is he ready to give way to someone who seems to challenge his authority (Sternberg & Wennekers, 2005, pp.193-203). For that reason, such a person is more likely to build a strong dislike for bureaucracy. Entrepreneurs also believe in themselves and think they can make themselves better and more efficient than others. They fight for strong levels of control and ownership. And this could explain the reasons as to why owning a business becomes their only option to gain full ownership and control. Taking risks is a normal thing for an entrepreneur because these risks come with immense rewards if one succeeds and one has to work harder in order to realize these rewards. The environment also has a major role to play in shaping who an entrepreneur becomes (Davidsson & Honing, 2003, pp.301-331). Cognitive biases are important considerations. It is important to fully understand the mind of an entrepreneur and his behaviour because entrepreneurial development is a major driving factor for economic growth of any country because of the benefits it brings with it. These benefits are in form of job creation, industrial growth, better services, and high levels of innovation, among others. Bibliography Ardichvili A, Cardozo R, & Ray S (2003). A theory of entrepreneurial opportunity identification and development. J. Bus. Vent. 18 (1): 105-123. Burns P. (2008). Corporate entrepreneurship: building the entrepreneurial organization. Palgrave Macmillan, 34-43 Davidsson P, & Honing B (2003) “The role of social and human capital among nascent entrepreneurs”. J. Bus. Vent. 18(3): 301-331 McClelland D. (1988). McClellands Achievement Motivation Theory. Tata McGraw-Hill Education Palich LE & Bagby DR (1995). Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom. J. Bus. Vent. 10: 425-438 Shane S., Locke E. A., & Collins C. J. (2003). Entrepreneurial motivation. Human Resource Management Review 13: 257 – 279 Sternberg R & Wennekers S (2005). Determinants and effects of new business creation using Global Entrepreneurship Monitor data. Small Bus. Econ., 24: 193-203 http://www.lehamplastics.com/siteword.php Appendices Appendix 1: Interview Questions and Summarized Answers i. What is your business and what does it do? Leham Company. Deals with construction, manufacturing, and trading in products and services ii. How did you end up constructing such a profitable opportunity? Dedication, hard work, and visionary leadership and always looking out for opportunities iii. Who are you and what do you see your business as being all about? I am an engineer and businessman. My business is a supplier of construction, manufacturing, and other trading commodities iv. Why did you have to choose doing your own business rather than seeking employment? Independence and I did not like being supervised. Wanted something for myself too. v. How did the idea of this business come across your mind? I had a dream of starting a business and I looked at the opportunities available vi. What would you say has been the biggest challenge in your business life to date? Leham’s expansion to what it is today vii. Do you ever feel like giving up? No. never viii. What mistake have you ever done in business and what did you do about it? Many like trusting a relative with business matters. Separate extended family relations from business ix. If you were to start doing business again from a fresh, would you do it differently? No. I like what I am doing now and would do it again. Improvement is still an option though x. What achievements are you proud of in your business life? The business empire I have built called Leham! xi. Who do you go for when you need business advice? No one in particular; I consult around and from personal experiences and those of other people. xii. How do you handle very tough decisions relating to business? I try my best to make the right choices xiii. What does the future hold for your business? Immense business opportunities and high growth; Better business environment is also expected xiv. Do you think taking risks is negative for your business practices? No. risks are good because the rewards are far better than negative outcomes. Appendix 2: Leham Company Leham was established in the year 1986 where it started trading on a small scale as an SME company. It has managed to grow and expand into what it is today because of the able leadership provided by its founder, Chief Executive Officer and General Manager Engineer Fahad Suleiman Al Hanaki. This company is for trading industry as well as contracting and is based in Riyadh, Saudi Arabia. It has built a good reputation over the years and stands out as a major player in the economic development of Saudi Arabia. Leham provides many services to the industries in Saudi Arabia. Some of these services include construction and maintenance, manufacturing, steel and aluminium fabrications, trading, soil treatment and control of termites, provision of manpower, and other basic services like water and heat proofing. The company has managed to secure and execute various major and prestigious projects in the Saudi kingdom for the government, private sector, and non-governmental organizations. Leham deals in a variety of products including Polycarbonate Solid sheet; Polycarbonate; Corrugated sheet; Polycarbonate Multiwall sheet; Acrylic sheet; High Impact Poly Styrene (HIPS) sheet; ABS sheets; PVC sheet; Refrigerator Door Gaskets; Lighting Globes For Parks & Gardens; PVC Doors; Aluminium Composite Panels; Skylights; Domes; and Pyramids, among others. The company has a policy of giving quality services and products to its customers. It has also a large base of satisfied customers who demand their services on a daily basis. Read More