Hint 1: Growth Models

Our last theme of the week concerned the 2nd building block in the life cycle of an entrepreneurial firm: seeking growth.
For this I suggest that you juxtapose the readings that your Dyad's selects for your performance activity WITH the models contained by the following key advocates and proponents of business growth trajectories, and there respective arguments. What convergence and divergence exist between those different models?

1) Churchill & Lewis
2) Garnsey
3) Greiner 

Recall that many of the models I ask you to focus on make excellent fodder for exams !;)
Best
Ed

Linking Small Business Management with Entrepreneurial Growth

In this study, researchers have classified a small sample of businesses into one of the 4 types in the chart below and then examined the differences between the groups in terms of firm demographics, CEO environmental perceptions, strategic orientation and managerial styles.

The CEOs’ managerial styles in all 4 different growth scenarios were very similar due to the fact they may adopt different approaches and business strategies as a consequence to the amount of risk they willing to assume and amount of growth desired.

Firms that seek greater market strength through high sales may adopt strategies as adventurist entrepreneurs.

Firms that seek to control their sales risk may adopt strategies as unfocused entrepreneurs.

Firms that seek high returns on satisfactory sales may adopt strategies as survivor entrepreneurs.

Linking Business Management With E-ship Growth

The relationship between the entrepreneur, his intention and the venture growth

Hi all ,

How do you think an entrepreneur can impact on the venture growth ? 

This study explain how a long series of personal and external factors can guarantee at least 6 years of growing : 

key features such as the passion for work, the “new resource skill” and the tenacity of the entrepreneur ; the  business performance related motivation such as vision , goals and self efficancy.

How the relationship between all these factors can impact on the venture growth ?

 Relationship of Entrepreneurial Traits and Growth

Peer Startup Analysis Feedback

Mauro

 

-Us Gourmet Burger chain: open a franchise in Argentina

-Run by his brother ( technical and feel himself as an entrepreneur despite his managerial studies ) and his father , more focus on the managing

-Affordable loss: quitted his job to open the restaurant and if everything will go bad , he will return to the family business

-No one inside the company ; only the family ( potential issue ? Why no one external ?)

-His father got the idea during his honeymoon  - entrepreneur opportunity insight

-The key point of the business Is to difference between the normal fastfood burger shops

-Frameworks used : Effectuation , Risk and Uncertainty , Ownership ( King vs Rich ) ,Exit

- Absolutely more King , so control , than rich

- Can be a potential issue the fact of not knowing deeply the food market field

Jenn 

-Blair Creatives – Consultive company

-Run by her friend on her own

-Needs improvement in setting boundaries and in say no sometimes to so client requests

-Goals : more organized , so hire someone (via Interpersonal or strategic dynamic ? Maybe the first one )

-Frameworks used : Effectuation ( bird in hand , patchwork ) ; Bootstrapping ( is it a real framework ?) ; Uncertainty and Risk ; Teams ; Purpose –Rich vs king

- What about the intention ? And what about all the 5 principles ?

Youssef

-Lebanese cuisine based in Egypt

- Tested the effectuation by asking about : main reason to start the business ; open or not to partnerships ; background of the startupper

- Framework : Effectuation ; Intention ; Exit ; Risk and uncertainty ( big risk open a bar in northern coast of Egypt

-Exit strategy : sells only if the value will drop ( negative exit ) . So not open to a quit by selling for a high value ?

-More rich or king ?

-Will the team grow ? Following what theory ? 

Mohamed 

-Nola cupcakes

- Only had 1 brief talk , so not so many information

-Started only for friends and via Facebook

- Not really think as a job , only as a hobby

-Huge money returns thanks to her 3 shops in Cairo

-She can manage this very quick growth ?

- How will she contrast the growing competition ?

-Frameworks used : Objectivism vs Constructivism ; effectuation ; Risk and uncertainty ; Intention

Mohamed's Start up Analysis - Nola Cupcakes

She only made it for friends and then started to build it as a business. When she first went to Facebook, she began thinking of it as a business.

She started a tradition in Egypt that others are copying.

Ask yourself: Does the new competition matter? Does she feel a risk from the up and coming competition? How far can she grow?

Objectivism vs. Constructivism be careful when analysing her.

Lemonade principle: consider how she’s operating, make sense of it from her experience.

Jenn's bootstrapping frame?

The Use of Bootstrapping by Women

What do we know and how can this help about the particularities of women entrepreneurial boot-strappers?

Alessio's Start up analysis

A company of software developers based in Italy

They built the whole business to sell it and open new opportunities for themselves in larger firms

Do they have have a potential buyer yet? what if the business is more profitable that what they'll make when they leave it, will they still choose to sell it?

jenn's start up analysis - Blair creatives

main points found in the responses: target market.

how did her previous job help her with her new business, or motivation/ambition to start?

Blair has the skills and techniques--> could relate to intention theory (one of my previous blogs)? might consider

could use areas for improvement to critique the frameworks.

frameworks:

frameworks used are relevant for the application of theory to the start up

more details on the critiques needed, but shows clear understanding of the frameworks and has made a good start.

could critique the other 2 parts of the effectuation theory.

Mauro's start up

Mauro's family business, An American restaurant chain in Argentina

Frameworks:

Effectuation, Rich vs King, risk and uncertainty

20 restaurants in 20 years with option to extend.

Its a family run business, run by Mauro's father and brother

Do you know if there's a plan set in place on when or where the next restaurant will open?

At what point may the family choose to exit the business?

mauro start up anaylsis

showed  the methodology used and some of the questions, which makes it clear  for the audience to see why the frameworks said are used.

he knows the founders, brother and father.

entrepreneurship: stated his brother is taking a risk.

his father is more of an entrepreneurial mind--> asked about a the affordable loss.

how is your brother more of an entrepreneur? if you could explain that in detail it might be more helpful to you.

the use of king vs rich article, he relates it to not wanting to sell. more details why they don't want to sell.

ed's comments: you could ask them why they don't want someone to come in the business, or if yes, when will they want them to engage. Consider

analysis: need to mention more for the critique, however, the frameworks used are good and valid to the points said.

Mauro: Entrepreneurial Exit in a family biz.... Why, when and how?

A Farewell to the Business- Championing Exit and Continuity in Entrepreneurial Family Firms

A paper to think about family business exits... 

alessio start up feedback

e future
core business, develop softwares, based in Italy

alessio knows one of the founder.

used: the who, the team, the economics

• how do they connect to software industry?

the who: asked about entrepreneur

more information about strategic dynamic relating to start-up

how are you planning on finding out, how is he planning to grow his business, or is he planning to exit or will he stay in it?

the exit: 

• want to grow and sell company, due to difficulty to succeed in Italy in that specific industry
• affordable loss
• lemonade
• bird in hand

were applied in the responses.

no critiques of frameworks were mentioned:

why weren't the other 2 parts of effectuation theory mentioned. 

suggestions:

you could say that the 2 other parts were not related to that specific start-up, so question those 2 parts

could be helpful: relationship between real-world and theory and critique the theory, as well as, apply the theory.      

Alessio mentions no theory?

Er, where was the praxis? Or what have you learnt and changed in your understanding of start-ups in praxis?

The influence of Self-efficacy on the development of entrepreneurial intentions and actions.

Bird’s model of entrepreneurial intentionality:

·      Self-efficacy, a person’s belief in his or her capability to perform a task, influences the new venture creation.

Model:

BeliefsàAttitudesàIntentionsàBehavior

·      People form attitudes to act in a certain behaviour based on their beliefs that will result in certain outcomes.

·      The scholars argue the immediate determinate is the intentions.

Birds definition of intention “ a state of mind that focuses a person’s attention, experience, and behaviour toward a specific object or method of behaving.

Source of self-efficacy:

·      Mastery experiences

·      Observational learning

·      Social persuasion

·      Judgments of their own physiological states

Integration of Self-efficacy

Intentions are formed based on the way in which people perceive their social and physical environment and anticipate future outcomes of a specific behaviour.

Self Efficacy

Self-efficacy beliefs towards the likelihood of success or failure will influence the development of entrepreneurial intentions.