Being a successful entrepreneur is very satisfying—that is the good news. But effective business creation often involves adjustments in the initial business idea. Some change the business plan as the venture is being implemented. More problematic is that most that enter the start-up process never reach initial profitability. When a nascent venture is abandoned, the individuals involved usually find other ways to participate in the economy. Many, to be sure, are still interested in becoming involved as nascent entrepreneurs. About one in 25 (4%) report making an adjustment to the original business plan.1 About half are considered major variations that may involve dramatic shifts in the products or services; the other half are considered minor shifts in activity. As shown in Table 11.1, almost half (47%) make changes in response to new information about customer preferences or as a reaction to the competition. About one in six (16%) mention financial issues, such as lower revenue, higher expenses, or issues with access to capital. About one in ten (10%) are responding to regulations or other contextual factors. A smaller proportion mention the loss of a critical individual (partner, employee, or contact), unexpected time constraints or other issues.
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Paul D. Reynolds
Paul D. Reynolds
Paul D. Reynolds
Asked about the major problems they confront, entrepreneurs respond as follows: Early on it was hard for Jason to get partners or investors to take his internet business seriously.1 Getting permits and approvals to provide fuel service for Hobart’s River Marina has taken some time. The main supplier is a Caribbean oil company and they operate on different timetables.2 There is a lack of capital to promote wooden pens for deer and moose. A human-interest television news show on Pens and Puzzles had a spot that improved Christmas sales.3 I found a place for a Ralph’s Pretty Good Groceries and got some people to help fix it up but after 3 weeks they never came back; then there were problems with the electricity.4 Martin started by getting a business license for his publishing company. Then he started getting calls before he was ready to deliver the product. Martin is now trying to complete the first project so he can accept new clients.5 Margaret is still working full-time and starting a bee keeping operation was demanding more money and time than she expected; it is hard to grow the business when you are short on resources.6 When asked about their major challenges, almost two-fifths (38%) of the nascent entrepreneurs mention operational issues and a third (33%) mention obtaining financial support, as shown in Table 8.1. Third on the list is attracting customers, which includes dealing effectively with the competition, mentioned by one quarter (26%). Only one in 33 (3%) expect personal or family issues as a major complication at the beginning of the process. None mentions the potential attraction of other career opportunities. The overwhelming focus is on problems related to establishing the nascent venture.
Frontiers in European Entrepreneurship Research
Edited by Ulla Hytti, Robert Blackburn and Eddy Laveren
The Enactive Approach
Collaboration, Education and Policies
Edited by João J. Ferreira, Alain Fayolle, Vanessa Ratten and Mário Raposo
Maritza I. Espina, Phillip H. Phan and Gideon D. Markman
Edited by Maritza I. Espina, Phillip H. Phan and Gideon D. Markman
Alison Rieple, Jonathan Gander, Paola Pisano, Adrian Haberberg and Emily Longstaff
This chapter uses factor and cluster analysis to deepen our understanding of how micro fashion design firms use ecological resources to examine the impact of their ecosystem on the practices of fashion designers. The authors examine the extent to which creative micro enterprises, such as fashion designers, access external resources to compensate for their putative internal deficiencies. They do this by building on a typology of apparel designers and testing whether its combination of market and peer-based orientations explains the behaviour of their sample. They also examine resource nodes: physical sites where actors in a design ecosystem may encounter one another and the material objects that are there, exchange ideas, give and receive emotional support and arrive at a shared understanding of design memes. They finally investigate their role in the transmission of symbolic knowledge and the negotiation of shared meanings and how different types of designers may use them in different ways.