Peter works as senior business analyst in the loans department in a high performing commercial bank in Fiji. Over the past months, he received loan applications from three business entrepreneurs. These three entrepreneurs have new businesses with strong potential. Nevertheless, Peter contends it is important to look at more than just the business itself; the individual also requires a closer examination. The three entrepreneurs are: [1] James, owner of a small delicatessen located in the heart of a thriving business district; [2] Manoa, owner of a 10 minute oil-change-and-lube operation; and [3] Tuamoto, owner of a bookshop that specializes in bestsellers and cookbooks. Peter has had the bank's external consultant, Dr Tom, interview each of the three business entrepreneurs and after a couple of hours of discussion can usually assess a person's entrepreneurial characteristics. In the past, Dr Tom has recommended 125 people for loans. Out of these only three, have failed in their business ventures. In general, the success rate is much higher than that for commercial loans. Following is Tom's evaluation of the three individuals whom he interviewed.

Characteristic

James

Manoa

Tuamoto

Creativity and innovativeness

M

H

M

Independence

H

H

H

Self-confidence

H

H

H

Tolerance for failure

H

H

H

Integrity and reliability

H

M

H

Tolerance for ambiguity

L

M

H

Persistent problem solving

M

M

H

Drive to achieve

M

H

M

Perseverance

H

M

M

Initiative

M

H

M

H = High

M = Medium

L = Low

Based on the above case study, answer the following 3 questions (Total = 7 marks):

(a) Out of the three applicants, which one do you think comes closest to possess the qualities of an ideal entrepreneur. Explain.(2 marks)

(b) Out of the three applicants, which applicant would you recommend that the bank lend money? Assume each has asked for a loan of $75, 000. Justify your answer. (2 marks)

(c) What can these three business entrepreneurs do to improve their entrepreneurial profile and their chances for success. Explain. (3 marks)