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... here businesses can fail if run by people who don't have the suitable qualities. In this case Mr Desai has a balanced attitude and personality to further the business in its growth and success, over-optimism is not present this allows for a more realistic approach to goals. This is proved by the double-loop learning experienced by Mr.
Desai. (Appendix 4 (iv) ) 5. 0 START-UP New business ventures arise for a number of reasons; these factors are known as 'push' and 'pull'. These initial ideas proceed through a number of stages before moderate stability is sustained. 5. 1 'PUSH' & 'PULL' (Appendix 5 (i) ) The principal reason for SWE initialisation was due to force. Mr. Desai quoted, "I was a victim of situation"; parent company was forced into liquidation.
As Mr. Desai has accumulated knowledge through past work experience; 'human capital' (Becker, 1962) he was influenced to pursue this idea. 5. 2 REFLECTION (Appendix 5 (ii) ) 5. 2. 1 IDEA FORMULATION The spur behind SWE was the recognition that "the job could be done in a better way", Cressey (1999, quoted in Carter et al, 2000, p. 117) this is an important factor in creation. Simultaneously, Timmons comments "the notion that creativity can be learned or enhanced holds important implications for entrepreneurs who need to be creative in thinking." (Deakins, 1999, p. 52) Although Mr. Desai does not bear a significant amount of educational qualities, experience has made up for this as evident from the life of a small business. (Appendix 5 (iii) ) Mr Desai has an advantage as bank managers rate previous experience when lending, however, he has chosen not to take up an overdraft facility and represents the Pecking Order Hypothesis perfectly (Myers, 1984) who suggests "new entrepreneurs prefer to avoid raising external finance." (Carter et al, 2000, p. 117) This breakthrough process was quick to pursue as the business had to generate finances from profit alone. 5. 2. 2 OPPORTUNITY RECOGNITION Mr Desai recognised that the exploitation of the idea had been considered before, however, due to macro-environmental factors, particularly social and economic it was not pursued.
Thus, the idea was converted into an opportunity when these factors were in place, "new business ventures require entrepreneurs to formulate ideas and fit them into opportunity." (Deakins et al, 1999, p. 53) The increased pace of technical change has also created opportunity. Although there are benefits, there is also the risk of failure which are averagely high (Appendix 5 (iv) ), the main risk is the financial as there is a relatively high reliance on profits. However, SWE have an advantage because mentoring of the parent company exists, who have encouraged them in the next step of the development process. 5. 2. 3 PRE-START PLANNING The existence of a secure customer base, financial assistance from the parent company and partnership relationship, SWE was on a solid ground to proceed. The parent company owns 51 %, hence financial assistance exists, therefore there is the elimination of the length of time and search activity. The qualities possessed by the dominant partners have coincided well through complementary skills.
The matching process is "crucial to the success of the relationship and growth and performance of the firm." Deakins et al (1998, quoted in Carter et al 2000, p. 122) 5. 2. 4 ENTRY AND LAUNCH The pre-observance of the service climate and the path taken at the particular point was beneficial as costs would have rose significantly if, for example, excessive marketing was carried out. However, some customers might be apprehensive initially as previous employment of Mr. Desai is known; therefore trust may need to be regained to retain customers. Hence, SWE has acknowledged and been fulfilled by the role of serendipity, "entrepreneurs must be prepared to exploit opportunities and be able to recognise and take advantage of them." Martell (1994, quoted in Carter et al, 2000, p. 123) SWE's grasp on chance minimises the chance of risk. 5. 2. 5 POST ENTRY DEVELOPMENT Customers, suppliers, bank managers and employees existed before the business start-up; therefore a small amount of credibility is needed to succeed.
The invaluable experience of the entrepreneur overcomes the naivet of the start-up and provides a sense of mentoring. A network with the parent company has been established from the commencement, although, the white paper highlights, "they are not exclusively for SME's"; it can be argued networks can assist in the creation of the "entrepreneurial economy." (Carter et al, 2000, p. 123) 5. 3 IMPLICATIONS As evident from the formulation Paradigm, SWE had a fortunate advantage for a moderately secure base on which to build upon. Customers, family and friends support, experience, network and financial assistance are key reasons. Demonstration of significant and visible personal commitment over a long period has led to the creation of the business. If these factors persist in the future, room for expansion can be considered. 6. 0 MINORITIES Ethnic firms now account for 7 % of all small businesses and 9 % of all new business start-ups. (web) (Appendix 6 (i) ) 6. 1 MR. DESAI'S ETHNICITY Mr.
Desai is of a Ugandan-Asian origin. Thirty years ago thousands of Ugandan Asians were frantically packing their bags to beat Idi Amin's deadline to leave the country for their wealth properties. In Britain they rebuilt their lives showing an extraordinary entrepreneurial spirit and self-reliance. 6. 2 MODEL APPLICATION The issue of one's identity is a complex subject, on one hand it is a very individual and personal process and on the other there are many external issues acting upon and influences a person. 6. 2. 1 ASSIMILATION STUDY Sociologist, Milton Gordon provided identification on different types of assimilation. (Appendix 6 (ii) ) The assimilation Mr. Desai first experienced was behavioural; he was exposed to English culture which had to be absorbed. Consequently, Cultural Pluralism takes place emanating from different cultures coming together; Mr Desai retains his Hindu culture, while still sharing common national values. 6. 3 ETHNIC ENTERPRISE DEVELOPMENT MODEL & RESEARCH Waldinger and Waldinger et al (1988) compiled a model to assess the qualities of different ethnic entrepreneurs to determine their ability to access resources and markets to be successful. 6. 3. 1 ACCESSING RESOURCES The generation of sources of finance were derived from the parent companies' investment. Although informal networks exist for financial assistance, he did not pursue this option.
SWE approached financial institutions for assistance; however, this was refused as they required 2 years of accounts to obtain facilities. Some studies carried out by Barrett (1997); Jones et al (1992) and Woodward (1997) believe that it is difficult to secure finance for ethnic businesses. However, Curran and Blackburn (1993) advocate; "small firms owned by ethnic minority entrepreneurs are no different from white-owned small firms." (Deakins et al, 2003, p. 92) Although Mr. Desai does not fall into this category it is stated in Carter et al (2000, p. 193) that "the acquisition of bank finance does not appear to be problematic" for Indians.
Thus generalisations cannot easily be made. 6. 3. 2 ACCESSING MARKETS It is evident that Mr Desai does not incur different problems to a non-ethnic minority when entering into markets; this is due to his partner and employees being of white origin. The Ethnic Minority Business Initiative (EMBI) has researched that there are constraints which minorities have to overcome to receive the same recognition. 6. 3. 3 MOTIVATION SWE is set-up in London, where there is a high concentration of Asians and Mr. Desai has never faced problems due to his partnership characteristics. However, if the business was setup where there is a low count of Asians he may be likely to face issues of discrimination. 6. 4 IMPLICATIONS Due to the nature of the company and Mr. Desai's and Mr. Thompson's differing cultures the models do not apply, therefore, the company will face constraints, barriers and issues like any other company as it has done in the past. 7. 0 MANAGEMENT As identified in section 2, there is no clear distinction between an owner-manager and entrepreneur.
In application to the partnership of SWE, the tw...
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