Your parents started a small business whilst you were still at school. During the start-up years, you and your siblings worked over weekends and holidays in the business. During these times, your parents taught you valuable business skills that would eventually see you finishing a Bachelor of Commerce degree before returning to the business. You are the last of the three siblings to return to the business and thus have the most junior role within the business. The small business that your parents established is called Family DIY. Family DIY is a hardware store that is 17 years old and has a good reputation within the local community with the supply of building materials for major construction projects as well as supporting the local handyman with equipment and services to attempt small DIY projects at home. As the last member of the family to join Family DIY and the only one with a Bachelor of Commerce degree, you are thrown into the deep-end at the annual strategic meeting. The strategic committee decides that the business must establish itself as a franchise and open more stores across the province with a focus on developing and increasing small family-owned business. business report to table at the Strategic Evaluation Committee meeting in three weeks. You must provide feedback on how the following aspects would apply to the business franchise model.

a) Given that this is a family-oriented business, there is a concern that new franchise owners might be overwhelmed by the new venture. Explain the characteristics of the entrepreneur that Family DIY would give a contract to.

Please use textbook

Chapter 1 The Entrepreneurial Life what they thought customers would want without ever really asking. A majority of the founders also admitted that their passion and egos caused them to react negatively to criticism and to discount ideas from others for improving their products or services. We frequently hear that an entrepreneur must have passion, which is true-but unchecked passion can be destructive. To some extent, the foregoing traits and behaviours describe a leader who lacks some measure of humility. Contrary to popular belief, humility is a quality that serves leaders well. or i tol howisn s genotio vilsiinsees stow" ong- 1-3A FOUNDERS AND SECOND-STAGE ENTREPRENEURS ive re We typically think of 'pure' entrepreneurs as being founders of new businesses that bring new or improved products or services to market. However, at some point after they a new organisation is established, it may be purchased or taken over by a second- generation family member or another individual who was managing the business. These 'second-stage' entrepreneurs do not necessarily differ greatly from founding entrepreneurs in the way they manage their businesses. Sometimes, these well- established small organisations grow rapidly, and their orientation will be more akin to that of a founder than that of a manager. Nevertheless, it is helpful to distinguish between entrepreneurs who start or substantially change companies and those who direct the continuing operations of established businesses. Ryan Gibson, a young entrepreneur and partner in Rydell Holdings in Waco, Texas, says he has come to understand that his passion and aptitude are for starting new businesses, which he has successfully done on several occasions. However, when the business is up and running, he turns the operations over to his team. He knows that one of his strengths is not running a business on a day-to-day basis. Again, it comes back to understand- ing yourself-your motivations and personality-if you want your journey to be a good one in the long run. 1-3B FRANCHISEES Franchisees comprise yet another category of entrepreneurs. South Africa has approx- er fail. imately 31 050 franchise outlets, which service 17 business sectors.20 Franchisees differ from other business owners in the degree of their independence. Because of the guid- ance and constraints provided by contractual arrangements with franchising organisa- tions, franchisees function as limited entrepreneurs.Hughes sees its val mmunity. "I learned from the mistakes I made early on, and I am sure I will make some more over the years. But I want to pass the knowledge on to others," Hughes said. 1-3 Entrepreneurial Qualities: Big Ego Not Required People often ask, "Are entrepreneurs born or made?" That question has long been debated with little agreement. However, Stephen Spinelli and Robert Adams have nicely summarised research on entrepreneurial characteristics. The entrepreneurs they LO describe as having and exhibiting 'desirable and acquirable attitudes and behaviours' fall under the following six descriptors:17 1-3 1 Commitment and determination-tenacious, decisive and persistent in problem Explain the bas characteristics solving entrepreneurs, 2 Leadership abilities-self-starters and team builders who focus on honesty in their describe different business relationships. entrepreneurshi 3 Opportunity obsession-aware of market and customer needs. 4 Tolerance of risk, ambiguity and uncertainty-risk takers, risk minimisers and uncertainty tolerators. 5 Creativity, self-reliance and adaptability-open-minded, flexible, uncomfortable with the status quo and quick to learn. 6 Motivation to excel-goal-oriented and aware of personal strengths and weaknesses. teskein of boat On the other side of the coin, some attitudes and behaviours should be avoided at all costs. An almost certain way to fail as an entrepreneur, as many have learnt by experi- ence, is to do the following: 1 Overestimate what you can do. 2 Lack an understanding of the market. 3 Hire people who are not fully competent. 4 Fail to be a team player, which is usually the result of taking yourself too seriously. 5 Be a domineering manager. 6 Fail to share ownership in the business in an equitable way. Three Harvard Business School professors had similar conclusions based on a survey of business founders, asking them what they had got wrong when they had started their businesses.18 For one thing, the founders acknowledged not listening to prospective cus- tomers as they were designing their product or service. Instead, they basically 'built