SEE ATTACHMENT
Discussion board # 1 Small Business Management
Initial post: #1
at least 350 words.
Includes an open-ended, thought-provoking question posed to classmates.
Part I: Are you interested in becoming self-employed? If so, what are your reasons for your interest in owning a small business? If you are not interested in self-employment, what are your reasons for not having an interest in being a small business owner?
Part II: Would you rather buy a franchise, buy an existing business, or start a new business? Why does your choice appeal to you? Why do the other two choices not appeal to you?
Respond to post #1 (DAN B)
responses should be at least 200 words.
Part I
I have no intention of pursuing self-employment, as I find considerable fulfillment in my role within a structured organizational environment. The collaborative dynamic of supporting a larger team of leaders and colleagues aligns well with my professional values. The stability, diversity of tasks, and challenges inherent in traditional employment are aspects I greatly appreciate. The perceived advantages of self-employment, such as autonomy, do not outweigh the potential stress, lack of entrepreneurial motivation, and early-stage business development hurdles that accompany it.
Acquiring an existing business is the most appealing option due to the advantage of an established customer base, which mitigates the risk associated with attracting new clients. Purchasing an existing small business has the potential to capitalize on a growing market of “buying small”, where Americans consciously decide to engage with small businesses even if the financial cost is higher (Walsh, 2022). Furthermore, the presence of experienced employees who are already familiar with their roles and the industry ensures operational continuity and reduces the need for extensive onboarding. Additionally, the availability of an established product or service offers the benefit of a proven business model with a record of success. These benefits are some of the reasons that aspiring business leaders elect to purchase small business in lieu of more traditional career growth paths (Ruback & Yudkoff, 2017). In comparison, starting a new business introduces significant uncertainty and challenges associated with building all aspects from the ground up, while purchasing a franchise, although providing structural support, may restrict operational flexibility and limit opportunities for creative autonomy.
Response posts: #2 (ATH HI)
Part II:
As an entrepreneur, I have always been interested in business. I currently own several companies, primarily related to engineering. People who think about working for themselves or starting a small business need to weigh many things because it is not easy, and several things should be considered before embarking on such an initiative.
Some of the main reasons for me to want to start my own business were:
Freedom and flexibility - one of the main reasons people choose to work for themselves is the freedom it gives them. Those who work for themselves can decide how to run their business, including their work hours and location. This can help them balance their job and personal life and enjoy their work more (Blanchflower, 2000).
Money-Making Opportunities - starting your own business can be risky but can make you more money. Business owners who do well often have a chance to earn more than they would in a regular job as their company grows and becomes more stable (Hamilton, 2000).
Personal Growth and Challenge - Self-employment gives people chances to grow. Business owners must learn many skills, from handling money to selling products. This can be tough but rewarding (Carree & Verheul, 2012).
Passion and Purpose - Many people want to work for themselves because they can follow their dreams and make something that matters. This feeling of doing important work can make them happier with their job and life overall (Benz & Frey, 2008).
Some reasons that caused me hesitation in owing a business were the following:
Financial Insecurity - One thing that keeps people from working for themselves is not having a steady guaranteed paycheck. Not knowing how much you will earn when starting a business can stress you out (Blanchflower, 2000).
More Responsibility and Work - Starting a business often means working long hours and putting in much time at first. This extra work and responsibility can be too much for some people to handle (Parasuraman & Simmers, 2001).
Lack of Benefits - Self-employed people often lack the perks companies give their workers, like health coverage, retirement savings plans, and paid vacation days. This missing safety cushion can pose a big problem for many (Wellington, 2001).
Risk of Failure - The high chance that small businesses might go under stops many would-be entrepreneurs. Some people find that their worry about losing money and the emotional stress of failing outweigh the good things about working for themselves (Cressy, 2006).
In my case, working independently has not been easy, but it has been rewarding running a small business. As mentioned, it was a personal decision for me to start my own business, and to date, due to several factors, such as the pandemic, I have almost been in bankruptcy several times. However, the rewards at the end of the day have outweighed the risk for me. Ultimately, it would be best to decide between working for yourself or someone else based on what you are good at, what you have, and what you want to do in the long run.
Part III:
Starting my own business is more appealing because I possess valuable engineering and other technical skills that I can leverage effectively. These competencies provide a strong foundation for entrepreneurial success and offer the potential for innovation and growth in industries where I have expertise.
While I would consider purchasing an existing business, this option would only be considered under specific circumstances. I would need the capital and industry knowledge for the specific business area unless I have the skills or someone with a solid background that I trust and the skillset required to move the business forward successfully. Without these two critical factors, the risk of failure would outweigh the potential benefits. Additionally, I would only pursue this avenue if the business demonstrated a clear return potential that aligns with my financial goals.
In my case, any investment in an existing business should meet my strict financial criteria set based on my experience. Specifically, I would require a return on investment of at least 20%, ensuring the investment is profitable and sustainable in the short and long term. Furthermore, I would need the business to offer a valuation multiplier of at least eight times the earnings before interest, taxes, depreciation, and amortization or higher to justify the acquisition. This criterion is essential to ensure that the opportunity would yield sufficient value to warrant the financial commitment and effort required for success (Blanchflower, 2000).
While buying an existing business could present opportunities, I prefer to start my own business, where I can fully utilize my skills and have greater control over the potential for growth and returns.
Question for Class: What are the key factors that influence the success or failure of a small business in its first five years of operation?
Initial post: #1
at least 350 words.
Includes an open-ended, thought-provoking question posed to classmates.
Part I: Conduct research using the CSU Online Library to locate peer-reviewed studies associated with information technology (IT) strategy, creating value with IT, or IT value proposition. Provide a brief description of one study that you located and describe whether you agree with the findings of that study. As you respond to your classmates, discuss how you might implement one or more of the findings that they identified to increase your current organization’s success.
Response posts: #1 (ATH HIL)
Part II:
The following peer-reviewed study I found “The process of resource bricolage and organizational improvisation in infor4mation technology innovation: a case study of BDZX in China,” presents an exploratory single case study that investigates how a Chinese retail company, BDZX, navigated the dynamic landscape of IT innovation through resource bricolage and organizational improvisation. The research, guided by the structured-pragmatic-situational (SPS) approach, aimed to understand the interaction between resource bricolage (the creative use of resources at hand) and organizational improvisation (the ability to adapt quickly to new situations) in the context of IT innovation. The study identified three stages of IT innovation—exploration, integration, and expansion—and how BDZX's strategic actions evolved from reactive to proactive, ultimately leading to the company's leadership in IT innovation.
I agree with the study's findings, which suggest that SMEs, especially in developing countries, can leverage IT innovation to gain a competitive edge. BDZX's case demonstrates that by actively integrating IT into their business model, companies can survive and thrive in the face of market changes and technological advancements.
To implement some of the findings that would apply from the study in an engineering company in the energy, oil, gas, and renewables sector, one could consider the following strategies:
Resource Bricolage - Identify and maximize the use of existing resources within the organization. This might involve repurposing equipment or software, combining resources, or developing new capabilities within the existing workforce. For example, an engineering firm might repurpose software originally designed for oil and gas exploration to analyze data for renewable energy projects.
Organizational Improvisation - Developing and enhancing the engineering organization's ability to respond quickly to unexpected challenges or opportunities. This may involve creating cross-functional teams that can pivot quickly, investing in training that creates adaptability, or establishing a culture encouraging moderate risk-taking and lessons learned. For example, an engineering company might make a rapid response team that can quickly adapt to changes in energy market demands or technological disruptions.
Strategic Proactivity – Strategically adopting IT innovations. This could involve setting up an innovation team, partnering with technical startups, or investing in R&D to develop proprietary technologies. For example, an engineering company might invest in researching new materials or methods that could revolutionize the energy industry.
Implementing these strategies, an engineering company in the energy sector could enhance its agility, competitiveness, and ability to innovate, thereby increasing its success in a rapidly changing technological and market environment.
Question for class: How do technological advancements influence innovation management strategies in modern businesses?
References:
Hu, H., Lu, H., Huang, T., Wei, W. X., Mao, C., & Thomson, S. B. (2022). The process of resource bricolage and organizational improvisation in information technology innovation: a case study of BDZX in China. Information Technology for Development, 28(2), 275–296. https://doi-org.libraryresources.columbiasouthern.edu/10.1080/02681102.2020.1824990
Pan, S. L., & Tan, B. (2011). Demystifying case research: A structured-pragmatic-situational (SPS) approach to conducting case studies. Information & Organization, 21(3), 161-176. https://doi.org/10.1016/j.infoandorg.2011.07.001
Pavlou, P. A., & El Sawy, O. A. (2010). The "third hand": IT-enabled competitive advantage in turbulence through improvisational capabilities. Information Systems Research, 21(3), 443-471. https://doi.org/10.1287/isre.1100.0280
Yin, R. K. (2011). Applications of case study research (3rd ed.). Sage.
Yin, R. K. (2014). Case study research: Design and methods (5th ed.). Sage.
