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The report is depicting the analysis of entrepreneurial pursuits to interpret the relationship between small business management and entrepreneurial orientation. Google owner's ability and reasons for success is studied based on the process of starting and sustaining an organisation. Google's owner started adventurous organisation and others did not know it during its launch. Larry and Sergey started small business with their technical knowledge and expertise. Different qualitative features of Google owner's were related with the organisation to know entrepreneurs inclination to start a firm. Small business and its importance to the economy are related to understand Google and Omani Entrepreneur Ali Daud.
Entrepreneurial orientation of google and its owners is summarised in context of developing it. Learning derives at each stage of orientation is listed in the report. An Omani Firm Al Amana Construction and his owner Ali Kamal Daud is studied and analysed to gauge local entrepreneur qualities and function in managing small business. Daud has multifaceted talent and initiated diverse businesses in the country from fast food franchise to a Construction Company. His skills are compared with Google's founder and compared. Certain common elements are listed for small business organisation and finally the learning derives are listed from the report.
Google - An Entrepreneurial Firm
New and novel idea:
A new venture is started as a new creation. Creative and innovative ideas come from shortage of a product or services. Ideas are generated due to changes in market or legislation but Google has emerged due to innovative pursuits of owners. A new technology was utilised to create Google search engine by Larry and Sergey. Billion of terabyte data has become at fingertips that was taking months to reach. Google is considered as entrepreneurial venture as it shows entrepreneurial orientation due to novelty of concept.
Technology oriented organisation:
Google is truly a technological organisation as it was started with the help of available Internet services. Technocrats create Google and it shows the entrepreneurial value. It must be noted that though it was started as small venture but all entrepreneurial venture develop into large size organisation due to inherent ability and people are not able to imitate it easily. Technology oriented organisation are based on innovative principles. Others find it difficult to understand it and by the time competitors get into business early market benefits were extracted by google.
Timmons et al, 1995, identifies that entrepreneurial venture displays goal orientation, visionary pursuits, opportunistic and tolerance to failure. Google was initiated and its founders Sergey and Larry gauged the growth potential. Organisation was started as risky proposal and there was always risk of closure but the same risk also gives flexibility to operate and cope up with uncertainty and ambiguity. The risk they took in terms of committing huge financial resources. Their career was at risk as they were focussing on a venture where they do not know growth potential and never had any experience.
Innovation and competitive advantage:
Creativity and innovative spirits were applied in the creation of google. Innovation is giving a competitive strength to the organisation and freedom to operate. At all levels of work and practices innovation was observed. Financial management was also done by ventures capitalist for google. It shows independence and flexible approach to validate that it has entrepreneurial orientation. The innovative spirit is observed in the starting of venture. At the start up they never had any source of income. The income generation was indirect and unknown but they had creative genius to get it in long run.( Scarborough , 2010)
Flexible organisation /informal structures:
Google never developed on the hierarchies and vertical organisation structures. It has flexible and free structure to support technological innovation. Employees are given freedom to operate and trained in such a manner that their mindset should be use the resources to best use and able top take decisions. The freedom in operation is the hallmark of googles entrepreneurial orientation. They are developing new services and adapt to changed environment.
Google is working and operating in free environment where managers are involved in improvisation, collaboration and teamwork. Managers are aware that there are certain barriers in growth and they devote and synergies to minimise it. Experimentation and regeneration is carried out in google at right time to give a strategic and entrepreneurial orientation. They understand the movement of world into IT and developing relevant services for the customer.( Vise and Malseed , 2005)
Entrepreneurial Features of Sergey and Larry:
Sergey and Larry started the entrepreneurial business with the help of angel investor and shows certain unique qualities. The organisation started around a decade back and become part of life for many. It is widely used for search, mail, map and other purposes by its clients. Manufacturers are advertising and reaching to its customer.
Farsighted and vision:
Sergey and Larry founder of google can comprehend complex situations that may include planning, making strategic decisions, and working on multiple business ideas simultaneously. They are and aware of important details, and they will continuously review all possibilities to achieve their business objectives. Sergey and Larry are never satisfied with traditional or existing sources of materials. Due to their innovative nature, they persist on discovering new sources of materials to improve their enterprises. Those who can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality. Sergey and Larry put the Internet usage in a new dimension and business format. They used the existing source and converted it into an important and daily use service.
The example of their farsighted attitude is to reach 15 supporting languages from the year 1997 to year 2002. International office was open in Japan by in the year 2002 and setting up office in china in year 2005 to understand the expanding role of china in IT industry. The worldwide offices in key locations are sign of vision.
Sergey and Larry are the organizers and coordinators of the major factors of production, such as land labour and capital. They properly mix these factors of production to create goods and service. They have initiative and self-confidence in accumulating and mobilizing capital resources for new business or business expansion. They tackles problems immediately with confidence and are persistent in their pursuit of their objectives.
The example is to organise funds for Google Inc. without even forming it. Andy Bechtolsheim co founder wrote the cheque of $ 100,000. Partnership with Yahoo help to be in mail business through their search engines.
Sense of Urgency:
Sergey and Larry have a never-ending sense of urgency to develop their ideas. They don't wait for opportunity rather they create opportunity. They believe opportunity is there in the environment and they have to tap those opportunities. They possess the ability to identify relationships quickly in the midst of complex situations. They identify problems and begin working on their solution faster than other people. They were never troubled by ambiguity and uncertainty because they are used to solving problems. The example of urgency is reaching to varied population in their local languages. It has reached to the translation into 41 languages of google material of 98% Internet users. More than 300 million bloggers visit Google every month.
Local Entrepreneur and his Orientation - Ali Kamal Daud
Ali Kamal Daud is well respected for his enterprising wit to start the concept of franchising in Oman. He is controlling and developing operations of Mc Donald in Oman. He also has to his credit Tierra Alta Group Oman that is specialised in lifts for pumping oil from oil fields. He started a construction company with the name Al Amana Construction Company and Neem Projects and Services Company. He likes to start a new and diverse venture to prove his entrepreneurial skills.
Understanding of Economy:
Ali came into limelight due to attending a summit by Obama's Administration organised Presidential Summit on Entrepreneurship as Omani delegate. In his speech he showed keen commitment and understanding of Omani economy and stressed the role of small and medium size business.
For example he realised that Omani economy has 50% youth and over 40,000 university graduates needs employment and source of earning. Enterprising firms in the economy can satisfy the requirement of job. He started many branches and development in Sohar was done before the Sohar industrial boom.
Resourcefulness and Relationship management:
As president of the Muscat American Business Council (MABC), Ali Kamal Daud believes that the entrepreneurship can flourish by having good business relation with other countries. Oman has a free trade agreement with United States and wants the relationship creates new market avenues for its population. The relationship management and helping each other to set up ventures are prime concern for him. Dynamism and relationship will creates healthy relationship among member countries and both businesses get benefits.
For example Daud has built a network of relationship among Omani and US business connection is the idea of effective relationship leads to business. The MABC president helps the American world to understand the true ability of local talent.
Perceiving new concepts:
Daud believes that there is many opportunities exist in the environment. The opportunities need to quickly synthesize and create new pattern and formats of business. Mc Donald was initiated and suffering from sales as competition was stiff from small shops and people have no time to sit and eat in restaurant.
For example the concept of drive thru became popular among Omani customers, as the population enjoying food and shy away from outside dining. The cost kept low of cheese and hamburger to compete with locally available fast food "Shawarma"
Orientation to problem solving:
There are problems at all stages and unique competency to identify and solve problems of start-up stage and later growth stages of business organisation. Daud continuously looks for possible hurdles and provides valuable inputs to solve it. They never postpone a problem and immediate decision is taken to solve it. Problem solving approach helps to come out with creative solutions.
For example when all other franchises are selling and supplying at home with focus on home delivery Daud said he believe the quality get affected and it has to be consumed oven fresh. Working on crèche and developing play area for children to attract them towards restaurants solves the problem.
Enterprise management ability:
Daud's entrepreneurial pursuit is a mixture innovative and creative and impatient of results and motivating and inspiring leader who gives direction to others. He is a combination of two diverse qualities and work on systems and relies on problem solving approach. Problems are part of the system and they are believed to be there due to change in environment and system.
For example he has initiated the new supply chain and working on diverse projects place him being a delegate for Oman contingent.
Positive feeling of self -worth:
Daud's entrepreneurial success comes out of realistic feeling about self. He is believer of true analysis of ones ability and one should know his strength and weaknesses to take up a venture. He has mission-oriented vision and highly dedicated to bring change in society. Positive feeling comes out of skills and confidence in one's own ability to bring and follows the change. He is operating at small level but created a place for himself in the country.
For example the vision to start a new venture in Nizwa and Buraimi needs a feeling about one self and confidence in decision-making ability. Once the Alhoota caves were developed his administrative and feeling about own decision termed to be good.
Differences in Entrepreneurial Approach
Sergey and Larry have shown an adventurous approach towards new business concept where as Daud has worked on new business format in the country. They have new service to offer and the success rate is unknown as there is no previous experience in the work but Daud's business acumen is to tread the known path. The approach is more of administrative and management style rather than enterprising at early ventures.
It seems that Sergey and Larry is playing more with the risk in venturing such business activity as they have to try out so many new things in terms of all types of resources whereas Daud is walking on known path and only risk is to accumulate over five hundred thousand US dollar to start the business. Daud's business is more of franchised cost and his is spread in diverse businesses.
The focus of Sergey and Larry was creating an organisation to serve the community by new products or services whereas Daud focus on small business management and job creation. Daud is working on administrative efficiency. Daud focus is on localisation and working on small business management with personalised services. It seems that Daud is motivated by need for affiliation where as Sergey and Larry with need for achievement.
Similarities in Entrepreneurial Approach
Sergey and Larry and Daud has shown creative element in their approach and commercialise the business. They are creative in managing and sustaining resource for the business. Ideas are carefully evaluated and commercialised at local level. Useful idea is translated into commercial and viable business opportunities.
They are working on the principles of satisfying customer's need. After understanding customer need a product is modified and regenerated. Customers are kept at the centre and product is designed. To understand the customer need or problems Sergey, Larry and Daud followed a research-oriented approach.
Self worth and esteem:
Sergey, Larry and Daud have shown tremendous belief on self. All the decisions are taken on guts feeling which leads to success. They believed that the work take-up is very important. They complete it with joy feel great after achieving their targets. They have faith in the vision they had and keeping their objectives in focus they take decisions and initiative. Self worth also gives a chance to learn new things as witnessed that both are ready to learn either from university or through seminars.
They are seeking excellence in their own work. The targets and objectives are set at highest level. They like challenges and quality of self-development. The sense of accomplishing difficult task with ease and interest is trademark of entrepreneurs. They take complete control over the situation and provide something useful to the society.
Locus of control:
Sergey and Larry and Daud have high degree of internal and external control of operations and their own behaviour. They controlled all the events affecting them. Some external factors are beyond their control but they have tentative solution for it and planned for such contingencies. They believe that they are controlling the situation and events around them. They are able to influence other people and their decisions.
Introduce new technologies, new industries and new product:
Beside from being innovators and reasonable risk-takers, Sergey and Larry and Daud took advantage of business opportunities, and transform these into profits. They introduce something new or something different of value. Such entrepreneurial spirit has greatly contributed to the development and use of untapped economic resources. The new technologies and new products were produced to satisfy human needs in convenient way by small business units in the country.
Source: Self Created: Characteristics comparison of Sergey and Larry With Ali Daud
Based on discussion and understanding of features chart is developed to give fair view of various entrepreneurial features of two entrepreneurs. It is conveying that mostly they will have same level of competencies.
The analysis of the Sergey and Larry and Daud gives better and meaningful understanding between small business and entrepreneurship. The spirit, practice and skills of entrepreneur help to establish small businesses. The percentage of success depends on their personal liking and involvement in the business. Small businesses are playing a vital role in the success of a country. Sense of urgency and innovativeness is most important for small businesses. The decision taking ability and standing by it give rise to new business enterprise and entrepreneur.
It is also leant that the Sergey and Larry and Daud entrepreneurial orientation seems to take organisation at different heights. The two entrepreneurs are not same in their approach but they do have something in common. The abilities and skills to take them at highest level in their work. It is observed that the have the dedication, handwork and systematic planning with flexible operations make the organisation successful. They like to take decision and also believe that all the decisions will not go on their way and ready to re- work with new dedication.
Further learnt that the organisations are managed by managing entrepreneurial quality and motivation. These can be acquired to certain extent with experience. The mission-oriented vision helps them to acquire the set objectives. Along with personal and behavioural competencies they need to have management competencies. Behavioural competencies may help them to start a small enterprise but effective planning, organisation skills and controlling makes the organisational survival guaranteed. They also need to have understanding of managerial functions of production, marketing, finance and human resource. This combination of competencies helps the enterprise in the economy for its growth.
Finally entrepreneurial orientation will help to grow into larger but administrative orientation helps to overcome management hurdles. Small business has an important role in the growth of a developing economy. The learning from the comparison is that the firm are innovative while the founders are creative. The resources are utilising by the firms and owners are looking for new opportunities in the environment. The firms taking policies manage the risk and spreading it where as founders has to take the risk to build new venture. The organisation will have rapid growth in the new areas where as founders are growth committed. Flexibility is kept to adjust the firm in different times where as the founders are highly flexible in the firm. Finally to conclude that the firm and founders are like body and soul and both are necessary for the survival of each other.