Question

Owing to the challenging economic climate in South Africa, you and a group of friends decide to start your own business. You decide to brainstorm a number of creative ways in which you can make money. After much debate, the group eventually settles on one idea which appears to be the most suitable. The idea is to open a hotdog stand outside the Mancosa Campus to cater for the needs of the students and surrounding businesses.
After many arguments and butting of heads, you realise that not all of the members of the group possess the entrepreneurial skills to execute this endeavour successfully. As a result, you decide to take the leading role as you have the most business experience.
One of the major problems that the group faces is the fact that their lack of experience and business knowledge hampers their progress.
After three months of planning, the business is launched and operates well for about one month. This is largely as a result of peaked enthusiasm for the business to succeed. However, after the initial month, the ‘cracks’ begin to show. There are frequent arguments amongst group members. The profits are inconsistent in that you experience a high turnover in one week, but a very low turnover the next. Business is constantly running out of stock during peak periods and this results in inconsistent profit being made. The group members cannot seem to agree on anything and eventually after another two months of business, you are forced to close down the hotdog stand.
Required:
1. The scenario above presents one way in which entrepreneurs can generate business ideas, and also speaks about some managerial expertise and experience.

Answer 1

Managerial proactiveness can lead to running of smooth functioning of a business if properly understood by the members of the group. It is the need of the hour that planning, organizing , leading and controlling must be clarified to entrepreneurs. Entrepreneurs can learn many new things gradually with their own knowledge and organic work experiences.  

It will be better to adopt quality in business offerings and services delivery. It will attract new customers as well as members can retain the existing customers base of the organization. Employees must be given on the job training so that they can develop new skills and abilities to perform well.