Paul Medwick is a commercial banker. In the past month, he has received loan applications from three entrepreneurs. All three have fledgling businesses with strong potential. However, Paul believes it is important to look at more than just the business itself; the individual also needs close scrutiny.

The three entrepreneurs are

(1) Robin Wood, owner of a small delicatessen located in the heart of a thriving business district;

(2) Richard Trumpe, owner of a 10-minute oil change-and-lube operation; 

(3) Phil Hartack, owner of a bookstore that specializes in best sellers and cookbooks.

Paul had the bank’s outside consultant, Professor Jane Jackson, interview each of the three entrepreneurs. Jane has done a lot of work with entrepreneurs and—after a couple hours of discussion—usually can evaluate a person’s entrepreneurial qualities. In the past, Jane has recommended 87 people for loans, and only two of these ventures have failed. This success rate is much higher than that for commercial loans in general.

Following is Jane’s evaluation of the three people she interviewed.

QUESTIONS

1. Which of the three applicants do you think comes closest to having the mind-set of an ideal entrepreneur? Why?

2. To which applicant would you recommend that the bank lend money? (Assume that each has asked for a loan of $150,000.) Defend your answer.

3. Can these three entrepreneurs do anything to improve their entrepreneurial profile and their chances for success? Be specific in your answer.

Transcribed Image Text:

Characteristic Perseverance Drive to achieve Initiative Persistent problem solving Tolerance for ambiguity Integrity and reliability Tolerance for failure Creativity and innovativeness Self-confidence Independence H = High; M = Medium; L = Low. Robin Wood Richard Trumpe Phil Hartack M M M H H HMMMLHEMHE Н М М М Н Н М Н Н MEHMMMHHHH Н Н М М М Н Н Н Н H HMHH