In the recent past entrepreneurship has increased rampantly. Increase in population is the cause of the menace innovative rise. As the population increase, job opportunities become limited thus unemployment cases increase. Continuous lack of jobs leads individuals to get alternative ways of generating income. Entrepreneurship is among the means through which people are generating revenue. Individuals use their skills, talents, and abilities to make a profit. Entrepreneurs take risks and initiative to take advantage of opportunities in the market. Innovators start-up business by planning, organizing and making use of resources.
Entrepreneurs see problems as opportunities, therefore, seek to solve the challenges (Entrepreneurship, 2015). As a result, customers pay to have those problems solved. The mindset of the entrepreneur is built on adding value by creating something new or working for a company. (Trends, Entrepreneurs & Hessinger, 2018). The fashion business demonstrates the entrepreneurial mindset. The business owners (my parents) identified that the people of Indonesia were in need of good quality culottes. Therefore they sought to solve the problem by selling high quality outfits. Outfit specificity is another problem that was identified by the parents. Consequently, they decided to supply a specific gear which is preferred by many retailers in the country. Providing the solutions to the problems is a mindset of the entrepreneur that the parents demonstrated.
Focusing on what is good for the business is another mindset of an innovator. The owners of the company focus on culottes instead of selling different types of the outfit to keep their business competitive. The culottes work best for them since they sell both in wholesale and in retail thus increasing the profits. Taking ownership is among every entrepreneur's goal and mindset. The parents took ownership of the business, and therefore they got a brand. Having a brand has enabled them to increase the profits by being the major suppliers of the culottes in the region. As a result of taking ownership, the parents can attract and capture a wide range of customers in Indonesia. Therefore, entrepreneurship skills in their business are portrayed best.
Ethical dilemmas are challenges that entrepreneurs face in their businesses. (Enterprise, Enterprise, Hazelwood, Gumbs & Clarke, 2018). Management of the company requires critical thinking in making decisions regarding the enterprise. Therefore business owners are expected to be careful to make the right choice for the prosperity of the business. The fashion business in this context faces ethical dilemmas. Merging personal and business accounts are one dilemma that the entrepreneurs face. It is evident from the interview that the parents do not report income. In business, it is unethical failing to document and report the income earned. Failure to keep books of income results to unaccountability and recklessness in the industry.
Tapping the business account when you need extra cash is another way of merging personal and business account. The company in this context fails to separate business finances from their finances. From the interview, it is evident that in case a need arises, the owners get the money from the business account. This practice is dangerous as it represents a slippery slope. (Rogers, 2012).
Nepotism is another major ethical dilemma faced by the business in this context. It is unethical to hire less qualified employees because of their relationship to the innovator. In this fashion business, the company is a family business that employs members of the family regardless of their skills. Nepotism is overcome by making the success of the business the primary goal.
Tax accounting and commingling of expenses is the most challenging dilemma for a small business owner. According to the owners of the fashion business, costs across personal and business are difficult to attribute appropriately. Improper expensing can get one to trouble with the local, state, and federal tax authorities. To tackle the dilemma, the owners should seek advice from an experienced accountant and avoid commingling the expenses.
Fashion business requires the owner to stick to their mission. In the market in this context, the purpose is to maintain the quality and be the leading collutes suppliers in the region. Adhering to this mission is challenging to the owners. The owners are tempted to ignore the mission to venture into the supply of other outfits. Overlooking the mission trails the business behind since one loses focus. Business mission is an ethical code that must be maintained at all costs.
Entrepreneurship pathways usher people to the innovation field. Different individuals are guided into the entrepreneurship through various channels. (Atkinson, Netana, Pickernell & Dann, 2017). The ways are based on the individual's unusual circumstances, incubation and knowledge exposed to them. Starting and running a new business, buying and running a business, inheriting an existing business and franchising are several pathways through which entrepreneurs get to the field. The company in this context was through apprenticeship. Management buyouts is the pathway through which the owners got to the business. In the interview, it is found out that the owners worked in their parents' business and later started their own business.
Innovation is a significant basis for the entrepreneurship (Lukeš, 2013). Change dictates the success of the business. For the company to withstand the competition, it must be full of innovations. Innovations provide the company with a unique substance that attracts the customers. For the business to be successful, it needs a different way of doing things and serving the customers. In the market in the context, the owners deal with culottes only. The uniqueness of the company is the ability to have a different variety of designs. Indonesia is an Islamic country, and most retailers prefer a covered outfit. Therefore culottes become the most comfortable outfit to major within the business. The business demonstrates innovation of different designs of the costumes.
Innovation in the business attracts customers and aids in maintaining the brand. The brand enables the firm to retain the customers. The success of a company is attributed to the consistency of operation, the profit increase in a period and excellent customer services. (Roy, 2011). Innovation ensures the business is in the process since new designs of outfits are developed frequently. The models of the outfits increase the number of customers in the company thus increase in profits. For entrepreneurship to be successful, coming up with new ideas is the basis of the success.
Competition is a critical challenge in the business environment. The fashion business is a very competitive sector. Therefore being in the company requires one to be alert on the new market and designs so that they can remain competitive. The business in this context withstands the competition by bringing up the most outstanding characteristics in their business. The fashion business owners identified the kind of people who live around the region. From the research, the innovators found that Indonesia population is Islamic. From the interview, it is clear that after coming to that realization, the innovators decided to major in the Islamic clothes. Wearing covering outfit is the culture of the Muslims and culottes is the most ideal for them. Therefore identification of the population gave the innovators an opportunity to develop the business.
Capital is among the critical resources in starting up of the business. Business innovators get capital from different sources. Some get funds from their savings, others from bank loans. Others approach their funders with the business ideas, and if it impresses the financiers, the innovators are funded to bring the ideas to business. (SarimahHanimAman Shah. & Soon, 2013). In the context, the entrepreneurs got the funds from their parents. Parental financial support to start up a business is among the best ways to get funds for a company. As a result, the business starts at a stable foundation since there are no liabilities. Fashion business requires a big chunk of money to start up. Hence the support from the parents was essential.
Starting up a business is a process that requires keen follow up so that the company becomes successful. ("Starting a Business", 2018).The fashion business is a very competitive business that requires thorough research. In a fashion business research to know the customers who need the service or the goods one is offering. Research aid an individual to see the uniqueness one can add to their products to increase competitiveness (Bates, 2010). Doing research enables one to identify if it will solve a problem, fulfill a need or offer something the market wants. In the fashion industry, research is necessary to know the designs submitted by others of a similar field. In our context, the business got to the business with past experiences without thorough research.
Making a business plan is the second step of starting up a business. A business plan is a guideline that gives the business guidelines from the starting phase, establishment and finally the business growth. A business plan is essential to an individual who seeks financial support from investors or financial institutes. Apart from finding financial aid, a business layout gives clarity about what one hopes to achieve and how one plan to make it. In the business in our context, the owners did not have an idea since they were getting financial support from an informal being. Failure to make a plan has cost the business by the fact that documentation of the income is not recorded. A program helps the business person to separate business account from a personal account. Therefore accountability and responsibility will be evident in the business.
Planning the finances is the third step of setting up the investments. An entrepreneur needs to develop the ability to cover the ongoing business expenses. After receiving the funds to start a business, one should put together the one-time startup costs for the company. As well one needs to anticipate keeping the business running for at least a year. The financial plan opens up the mind of the innovator on how to fund the company. As a result, the entrepreneur avoids overexploitation of funds and responsible criteria of using the money.
The fourth step of setting up a business is choosing the structure of the company. The structure depends on the range of operations and the services offered. Funding also contributes to a business structure. If the funds are from pooling together of resources from different people, then it becomes a partnership. If money is committed solely, then it becomes a sole proprietorship. The entrepreneurs in the context failed in developing a business structure. The business structure is important as it impacts how to file business taxes. Failure to have a clear business structure, lead to irresponsibility that may cause falling of the business. In the fashion business, in the context, the owners did not choose a business structure thus in case of falling, accountability will lack.
Pick and register the business name is the sixth step of setting up a business. The business name plays a role in almost every aspect of the company. Having chosen the title, one has to check if it currently in use. After the verification, one registers the name under the business. Domains are essential in a company that intends to deal with the market outside the country. After selecting the title, one needs to register the domain. In the business in our context, the name should be specific to clarify of the services offered in a just a name. Fashion and designs business are in plenty, and one needs to be unique and creative in coming up with the name.
The sixth step is getting the licenses and permits to carry out the business. The documents in the fashion industry hinder the people from carrying out illegal activity. The seventh step is to choose the accounting system of the company. The system is necessary as it creates and manages the budget, sets rates and prices and aids in filing the taxes. A fashion business requires an accounting system to fix the costs of the clothes according to their quality.
Setting up the business location is the eighth step of setting up a business. A fashions business requires an area which is accessible all times. Getting the team ready and promoting the business form the ninth and tenth steps consecutively.
In conclusion, for a business to be successful, it has to follow the ten steps. The fashion business followed the steps though skipped some which are very important. The company is susceptible, and any mistake may lead to a drastic fall. However, having had the experience from the parent's business, the entrepreneurs did not have much to worry about
Graphic Essay
References
Atkinson, C., Netana, C., Pickernell, D., & Dann, Z. (2017). Being taken seriously – shaping the pathways taken by Welsh female entrepreneurs. Small Enterprise Research, 24(2), 132-148. doi: 10.1080/13215906.2017.1337587
Bates, M. (2010). Building & running a successful research business. Medford, N.J.: CyberAge Books/Information Today.
Enterprise, B., Enterprise, B., Hazelwood, J., Gumbs, A., & Clarke, C. (2018). 10 Common Ethical Dilemmas in Entrepreneurship. Retrieved from https://www.blackenterprise.com/10-common-ethical-dilemmas-entrepreneurshipks/Information today.
BarCharts, Inc. (2015). Entrepreneurship. Boca Raton.
Lukeš, M. (2013). Entrepreneurs as Innovators: A Multi-Country Study on Entrepreneurs' Innovative Behaviour. Prague Economic Papers, 22(1), 72-84. doi: 10.18267/j.pep.441
Rogers, A. (2012). The Ethical Dilemmas in ‘Ethical Dilemmas’. Self & Society, 39(4), 46-47. doi: 10.1080/03060497.2012.11084230
Roy, R. (2011). Entrepreneurship. Oxford: Oxford University Press.
SarimahHanimAmanShah.,& Soon, C. (2013). Entrepreneurship. Selangor: Oxford Fajar.
Starting a Business. (2018). Retrieved from https://www.thebalancesmb.com/starting-a-small-business-4161641
Trends, S., Entrepreneurs, 1.,& Hessinger, S. (2018). 10 Mindsets of Successful Entrepreneurs - Small Business Trends. Retrieved from https://smallbiztrends.com/2013/10/successful-entrepreneur-mindset.html
