. Discuss whether this is a small business or an entrepreneurial venture! 2. Does the desire to grow make a venture more entrepreneurial? Discuss! 3. Discuss the pressure on resources in this case.
Jaconet Brunette opened a beauty salon in Menlyn shopping center in
Pretoria. She grew up in an entrepreneurial home and except for a short
period in training, had always had her own business. After 3 years of
establishing the salon, she had four employees and her turnover had trebled.
She opened a second salon after 1 year in Hatfifield in Pretoria some 5 km away
from the old salon. She appointed her best employee to run the business,
hoping to convert it into a franchise eventually. She went to a major exhibi
tion in London and managed to identify a range of products to import
exclusively for the franchise system. A few containers were imported and
most of the products were sold. It did, however, require additional fifinancing
from the bank and time to arrange for clearing of the goods at Customs and
Excise in Kempton Park.
The Hatfifield branch never seemed to take off and only managed to break
even. Jaconet spent a lot of time at the Hatfifield branch trying to develop a
client base and to control activities. The good employee turned out not to be
such a good manager and eventually resigned. Jaconet decided to sell the
Hatfifield branch after 3 years of establishment as it did not seem to grow at all.
She believed that the attention Hatfifield required was impacting negatively on
her Menlyn salon which, after a few years, had shown a decline in turnover.
She downsized this salon from fifive to four employees and the business is back
on track again. When asked about further explanation her comment was: “I
don’t want the hassle of another branch. I’m quite happy with the pre-sent
business. I did not make any more money having two outlets.”
Assignment
1. Discuss whether this is a small business or an entrepreneurial venture!
2. Does the desire to grow make a venture more entrepreneurial? Discuss!
3. Discuss the pressure on resources in this case.
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