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Entrepreneurship and small business formation.

BA (Entrepreneurship); BA (Small Business Formation); BA (Management).

Owing to youth unemployment in sub-Saharan economies, youth entrepreneurship is now a major policy alternative across the subcontinent. It is also an immediate alternative for unemployed school drop-outs. Botswana is encouraging youth entrepreneurship through funding youth projects as an intervention. This case study presents decision alternatives considered by young adults when thinking about the future – to proceed with school or to start their own business. The other set of decision alternatives is which business idea to pursue – turning a hobby into a business opportunity or pursuing a new opportunity altogether. Mr Supang, owner of Swanscapes (Pty) Ltd, has to debate these decision alternatives with himself. Swanscape has to contend with a growing market but is unsure of where to get expansion finance. With expansion finance having been availed, managerial skills limitations will have to be dealt with. The company should focus on three other very important decisions: how to compete with large contractors currently dominant in the market and other small businesses that have recently entered the market in flower pot production; how to develop own skills and those of employees; and finally how to grow the business. Swanscapes remains hamstrung with the decision of which mode of growth strategy to adopt.

The goal of this case study is to illustrate the tough decision alternatives unemployed youth starting their own small businesses have to juggle with. The case also illustrates the hurdles novice entrepreneurs have to contend with in order to establish a brand for their product or service. It also illustrates the impact of inadequate managerial and technical skills on growth strategies an owner may have.

Teaching notes are available. Please consult your librarian for access.

This case is the story of Gonzalo Co, the eldest of five siblings, who claimed to be the founder of Gonzalo Laboratories. According to his version of the story, he invited his siblings to work in the business that he established. As fate would have it, he was eased out of the business. His contributions to the company were wiped out when he acceded to change the form of ownership from single proprietorship into a corporation. In a situation of “he said”, “they said”, the well-publicized conflict leaves the public to wonder how the family will resolve their disagreements even if both parties insist that their respective stories are true.

The researchers relied on secondary data to write the narrative of Gonzalo Co. For the history of Green Cross, the authors used as reference the personally published book of Gonzalo. Then, the authors picked out relevant excerpts from the separate newspaper publications of Gonzalo and his siblings. The authors requested an audience with Mr Arsenio Alianan of the Philippine Kho Association, but he refused to be interviewed. The authors did not interview Gonzalo Co and any of his relatives.

Family business management class at the undergraduate or graduate level.