Entrepreneurship in Action: Awesome Blossom - Essay Example

Running Head: ENTREPRENEURSHIP Entrepreneurship in Action: Awesome Blossom Awesome Blossom: An Introduction Marlene Macland is in many ways a textbook example of an entrepreneur. 20 years in the florist business had been an enjoyable success for the Prince George native, who had lived and worked in Calgary for 10 years before moving to Kamloops after getting married. But like many successful business managers, Marlene felt she had reached her peak as someone else’s employee. It was time to become an entrepreneur, and thus Awesome Blossom was born. Thanks to a low-interest, government-sponsored small business loan and the fortuitous availability of a retail space in a local strip mall, Marlene was rather suddenly in business for herself. “The space [in the strip mall] opened quickly, and I didn’t have much time to make a decision,” she explains. “I wasn’t sure I was quite ready, but it was an opportunity that I might not get again, so I went ahead.” The decision turned out to be a good one. In the year-and-a-half since Marlene Macland opened Awesome Blossom the business has grown remarkably. Offering custom floral designs for weddings, funerals, special events, and virtually any other occasion, Awesome Blossom has exceeded even the most optimistic hopes; in 2008, the shop handled over 100 custom orders for weddings alone, up to six or seven every week during the busy summer months. Demand is such that new orders have a 30- to 60-day lead time. Along with the custom order business, Awesome Blossom features other value-added services, such as dedicated delivery, tie-in with international wire order services, an exclusive distributorship for Daniel Chocolate, and in-home consultation for event planning. Although the economic downturn has slowed the pace of business, Awesome Blossom is still a profitable and expanding enterprise. In the following section of this paper, the keys to this success will be examined in greater detail to show how Marlene Macland and Awesome Blossom exemplify entrepreneurship. Entrepreneurship Defined “Entrepreneur” and “entrepreneurship” are terms often used interchangeably, and are only vaguely-defined by most literature (Lowrey, 2003). Referring to Baumol (1993), Lowrey points out that “entrepreneur” is derived from the French word entreprendre, meaning “to undertake”, and describes an entrepreneur as “…a person who organizes, operates, and assumes the risk for business ventures, especially an impresario.” (Lowrey, 2003, p. 7) In contrast, the National Commission on Entrepreneurship (US) takes a narrower view, distinguishing the entrepreneur from the ordinary small businessman as someone whose enterprise contributes to economic growth rather than remaining at a small, stable level. (NCE, 2001) The text takes a broad view, defining entrepreneurs as founders of business firms or owners who take over existing firms. (text, date) Entrepreneurship, on the other hand, is a little harder to pin down. Drawing on a variety of other literature, Lowrey (2003) settles on defining it as an “economic system” consisting of three parts: entrepreneurs, a free-market environment, and a government system that maintains that environment and encourages entrepreneurs to start businesses. (Lowrey, 2003, p. 14) While that is a reasonable definition that Lowrey backs up with numerous references, one wonders why the most intuitive definition of entrepreneurship wouldn’t suffice: Entrepreneurship, quite simply, is the act of being an entrepreneur, or in other words, taking advantage of resources, market conditions, and social advantages (such as government incentives) to “organize, operate, and assume the risk for a business venture.” An Entrepreneur Shows How Entrepreneurship is Done Marlene Macland is a definitive entrepreneur, specifically an entrepreneur who can be described as a founder, with an artisan style of management: she started Awesome Blossom with an idea to provide “new or improved products or services”, and she is largely individually responsible, at least at this point, for the business’ operations. (text, pp. 7-8) The definition suggests an entrepreneur must have at least four attributes: First, an entrepreneur must have an idea or concept for an enterprise. In Marlene’s case, inspiration was not hard to find; she had long experience as a florist, and enjoyed the business. Her idea was not something new, but rather a different and presumably better way of doing something. Examples of this kind of entrepreneurship can be found everywhere – chefs who leave big hotels to open their own restaurants, for example, or auto mechanics who begin their careers at large auto dealers before leaving to open their own repair shops. Second, an entrepreneur must recognize a market for the enterprise. Most people could guess that there is a steady market for floral gifts and decorations, but Marlene’s long and extensive record in the business meant that she understood it completely – what ideas worked, what did not work, and ways that the business could be innovative. Third, an entrepreneur needs resources. Another way to state this is to say that an entrepreneur requires opportunity to begin the enterprise, something the resources can provide. Marlene’s strongest resources were her own knowledge and experience. Government initiative to encourage small business – the environment that Lowrey identified – were another resource, in the tangible form of the government-backed business loan at 1% interest that Marlene used to get Awesome Blossom off the ground. The ready availability of a suitable location for her business is also another resource, fortuitous though its timing may have been, and could also be considered part of an environment that encourages entrepreneurship. Fourth, an entrepreneur needs sound business fundamentals, and the ability to use business tools to their best advantage. Awesome Blossom was built on solid basic foundations: a realistic business plan, smart financing, and intelligent location, one with strong local demand, high visibility, and little competition. Awesome Blossom maintains the integrity of its products – the basis of brand development – by insisting on high quality from its suppliers, and enhances it by offering unique products not available anywhere else in its market, such as custom designs and the exclusive Daniel Chocolates. To expand its reach to customers, Awesome Blossom maintains a website and a toll-free telephone number, as well as being part of a wire network that allows customers to order flowers from anywhere in the world. The Awesome Blossom name itself is an example of savvy marketing that increases brand strength by being memorable; not only is it a catchy rhyme, it also alphabetically comes first in the “Florists” listing in the Yellow Pages. Finally, Awesome Blossom establishes a corporate presence by participating in the local Chamber of Commerce, attending bridal fairs, and supporting local charities. Even in the somewhat-elitist definition of the American NCE, Awesome Blossom meets the criteria of entrepreneurship rather than just a run-of-the-mill small business. The business contributes to economic growth in a number of ways. Customer traffic to its strip mall location potentially increases traffic to other businesses in the same area. Besides Marlene, the business also employs two other people; job creation on a very small scale, certainly, but job creation nonetheless. And thanks to Awesome Blossom’s business networking and growing clientele, growth of the business is almost certain. Conclusion By any reasonable definition, Marlene Macland is a true entrepreneur, expressing her entrepreneurship through Awesome Blossom. All the key ingredients for a successful entrepreneurship – concept, market, resources, and competence – are brought together and managed skillfully to create a sustainable enterprise that contributes to the community. Entrepreneurship might be a concept that eludes an easy definition, but thanks to Awesome Blossom, a good example of it is not hard to find. References Lowrey, Ying (2003). The Entrepreneur and Entrepreneurship: A Neoclassical Approach. Office of Advocacy, U.S. Small Business Administration, 5 January 2003. [Internet/PDF document] Retrieved 27 February 2009 from http://www.sba.gov/advo/stats/wkp03yl.pdf. National Commission on Entrepreneurship (2001). Five Myths about Entrepreneurs: Understanding How Businesses Start and Grow. NCE, March 2001. [Internet/PDF document] Retrieved 26 February 2009 from http://www.publicforuminstitute.org/nde/sources/reports/2001-five-myths.pdf. Read More