Question

In the following statement, a business owner attempts to explain and justify his preference for slow growth in his business.

I limit my growth pace and make every effort to service my present customers in the manner they deserve. I have some peer pressure to do otherwise by following the advice of experts – that is, to take on partners and debt to facilitate rapid growth in sales and market share. When tempted by such thoughts, I think about what I might gain. Perhaps I could make more money, but I would also expect a lot more problems. Also, I think it might interfere somewhat with my family relationships, which are very important to me.

After reading this statement, respond to the following questions:

1. Should this venture be regarded as entrepreneurial? Is the owner a true entrepreneur?

2. Do you agree with the philosophy expressed here? Is the owner really doing what is best for his family?

3. What kinds of problems is this owner trying to avoid?

Answer 1

1. No, We can say that this venture cannot be considered as a true entrepreneurial endeavor and the owner cannot be considered as a true entrepreneur due to the fact that there are no criteria that separate the business from the competition in the market, the owner isn’t willing to take risks to maximize the input and the output of the system as well as the fact that his entire implementation revolves around his concept of slow and sustainable growth rather than large and exponential growth would allow us to classify the business as a non entrepreneurial venture.

2. No, I do not agree with the philosophy here. Even though the owner works out a working strategy, the fact of the matter is that either he doesn’t believe in the venture or isn’t willing to take the risks because he is satisfied with his current position and unwilling to change it to achieve a better future for the company. However, the fact that the owner wants to be able to balance his work life and his family life and not cause any harm to it, in the long run, is actually the best course of action that he can take. We should be able to realize that personal life should always be just as important as the professional one and should not interfere with one another.

3. The owner is trying to minimize the problems that may arise due lack of resolve, managerial decision making, strategic decision making, balancing risk with profit and balancing convergence of work life with private life as well as the interference additional responsibilities might have an implication on the process of being able to balance all the possible responsibilities.