Schumpter (1934) saw the definition of an entrepreneur as not only individuals who bears the risk of buying and selling at uncertain prices , but more of process by which an economy moves forward through the act of creative disruption or innovation. There are many different avenues on what defines a person as an entrepreneur, the definition itself is evolving based on the society we are in today. The entrepreneur in this report when asked what he thinks is an entrepreneur in a small business, his opinion was “a person who takes control of his or her own destiny to become self employed either by setting up a business or taking over from someone else.” The purpose of this report is to investigate the nature of small business-owner-managers in the Information Technology industry and their managerial environment. The analysis comparison will be looking individually at the two entrepreneurs and their respective business as a small business owner-manager operating in Western Australia; the two companies selected are EnableTech and Hardware Zone.
Choice of industry and Business-owner manager
According to the Australian Department of Foreign Affairs and Trade, Information and communication technology is a key driver of Australia’s strong economic growth and innovation. The market comprises firms engaged primarily in providing computer and telecommunication services, as well as hardware and software. It is currently the fourth largest in the Asia-Pacific region after the Chinese, Japanese and South Korean markets and the 11th largest in the world. (Australian Government, Department of Foreign Affairs and Trade 2008) “The 2008-09 statistics, 72% of Australian households had home internet access and 78% of households had access to a computer. Between 1998 to 2008-09, household access to the internet at home has more than quadrupled from 16% to 72%, while access to computers has increased from 44% to 78%. The number of households with a broadband internet connection has increased by 18% from the previous year, to an estimated 5.0 million households. Broadband is accessed by close to two-thirds (62%) of all households in Australia and 86% of all households with internet access. (Australian Bureau of Statistics 2009) The choice of industry was based on society insatiable appetite for information technology in and around their work and home as reflected by the Australian Statistics, demand for the internet and computers within households have grown to such levels, and without much doubt the information technology age that we live in today; the growing demands for such service has to be met with the equivalent supply.
The business owners managers are selected based on an approximately similar demographical background, both come from average income working family, similar education levels and fitted within the 30-45 year old age group, however one was a 2nd generation immigrant in Australia whilst the other was an Australian. The basis of applying a similar demographical background allows greater consistency in the analysis between the two owner business managers. We also had to ensure the interviewees had to have an approximate similar type of service operations and business size and turnover. Both of them have to had operated the business longer than 5 years, this allowed the analysis to be viewed on the basis that the business owner managers was not bias in his interviewed question which could have been ‘skewed’ should it be a person new to the business would yet to experience the pitfalls of the business.
Report and data of interviews owner-managers and the business The interview protocol was formulated on segregating the interview into four key areas; Personal motivation, Business founding methodology, Operational Management and Business future outlook. A summary of the interview from the two owner managers are reflected below, a detail transcript is under Appendix 1a and 1b.
Hardware Zone (Business Owner Manager:...
References: Australian Bureau of Statistics 2009, 8146.0 - Household Use of Information Technology, Australia, 2008-09. Available from :< http://www.abs.gov.au/ausstats/abs@.nsf/mf/8146.0>. [10 Sept 2011]
Australian Government, Department of Foreign Affairs and Trade 2008, Information and Communication Technology. Available from: . [10 Sept 2011]
Characteristics of an Entrepreneur The foundation for your business, 2009. Avaliable from: . [13 Sept 2011]
Kuratko, D. & Hodgetts, R. (1998) Entrepreneurship: A contemporary Approach, 4th Edition, Mason Ohio, Thomson South-Western.
Mazzarol, T & Reboud, S 2009, The Strategy of Small Firms: Strategic Management and Innovation in the Small Firm, Edward Elgar, Cheltenham, UK, NorthHampton, MA.
Mazzarol, T & Reboud, S 2011, Small Business Management: An Applied Approach, 2nd Edition, 1st Printing, Tilde University Press .
Schumpeter, J. (1934). The Theory of Economic Development. New York, Harvard University Press
Shane, S & Venkataraman S 2000, ‘The promise of entrepreneurship as a field of research’, The Academy of Management Review, 25(1): 217-226
Please join StudyMode to read the full document