Business Q&A

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Question 1: Is Big Kev a traditional small business owner or an entrepreneurial owner? Explain the key differences between the business objectives of the traditional and entrepreneurial owner.

The ownership style of Big Kev is best described as entrepreneurial. An entrepreneurial owner is one that is focused on advancement through growth, profitability, and the use of strategic management plans (Holmes et al., 2003). In contrast, the traditional owner views the business as means to achieve personal goals, as an expression of their individuality, and as a commitment needs satisfier (Holmes et al., 2003). It is clear that Big Kev has engaged in a process of expansion, underpinned with a strategic plan to further the growth of the enterprise. Big Kev does not view the enterprise as a personal needs satisfier exemplified through his offering external stock to enable expansion. Therefore, big Kev is an example of an entrepreneurial owner.

Question 2: Do you think Big Kev can let his ‘baby’ leave his control? Is Big Kev really like most small business owners: focused on control of his operating entity? How do you think Big Kev will cope with his new equity partners? Keep in mind that the company floated is called Big Kev Ltd.

It is clear that Big Kev views his role in the enterprise as fundamental, indispensable, and similar to the typical small business owner. While the enterprise is publicly listed and ownership partially separted from Big Kev, the founder still sees the management of the new entity as fundamentally similar to prior to the listing: management decisions resides with a few individuals and the personal objectives of the owner are the motivational factors that dominate the strategic plans of the enterprise, both of whi...

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...proach to finance that has been followed by the owners of M&H Refrigeration is best described as conservative. The self-imposed limitation on capital financing appears to be an attitudinal aspect of the owners. The business quite probably could increased its expansion into the technological aspects of the business and remote controlling with a risk management strategy in place. The owners are clearly attached and proud of their achievements. This translates into control issues and thus the options of capital acquisition: venture capital or public listing is not an option where control is often digressed. This leaves financing through loans as the only reasonably perceived choice. It is my firm opinion that the owners should investigate the benefits of capital acquisition in order to facilitate the expansion, an area in which I believe the business needs to be more

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