Contemporary Mode Of Entrepreneurship: Insights From An Australian Hybrid Entrepreneur

Interviewee Background

Business environment is characterized by numerous uncertainties that make entrepreneurship less attractive to people. Very few people who are currently employed dare to leave their job and start their own business for fear of risks of failing. According to Solesvik (2017), there is a significant decrease in the rate of self-employment in countries such as United States, which are developed. People are not willing to take risks by starting their businesses if they hold secure employment that earns high income as well as lucrative social benefits. However, in the emerging economies, about 56% wish to have their own business at one given time, and in Turkey, the percentage of such people are 82 (Solesvik 2017). Even though it has proved so difficult for those who have stable employment to live their jobs for business, there is a trend where people can have a company and still keep the job. It is what is commonly referred to as hybrid entrepreneurship, and it offers the most convenient bridge to self-employment from employment. According to Schulz, Urbig, and Procher (2016), the hybrid entrepreneur is someone who works and is simultaneously employed in another firm. The type of entrepreneurship is considered the first step that most people take into becoming full time self-employed (Kolvereid 2016 p. 107). The research conducted by Schulz, Urbig, and Procher, (2017) found that hybrid entrepreneurship increases chances of getting higher average earnings than someone that works in two organizations. Additionally, being an entrepreneur is considered the safest means of testing one’s business idea. This paper offers an in-depth understanding of contemporary issues in entrepreneurship theory and practice, and the focus is on hybrid entrepreneurship. The paper is a report on an insightful interview with a young Australian hybrid entrepreneur regarding his perspective on hybrid entrepreneurship career.

Interviewee Background

The interviewee is an Australian man in his late twenties who is employed and has been running a successful business in the beauty industry. John, not his real name, was glad to share his experience as a hybrid entrepreneur and some of the challenges he finds at work and in his business. As a professional beautician with an associate degree in cosmetology and hairstyling, he has been the lead supervisor in one of the leading beauty firms in Australia. He has been one of the most dependable employees of the company, and he has managed to rise from lower ranks to its present position. The job is well paying, and many other benefits that come with the area make it one of his favourite role. However, John has always had the passion of owning his business, and he decided to start a company that is closely related to what he does. He began his business in 2013 as a small fashion shop that deals with designer wear for both sexes. John’s company is one of the most creative and highly innovative. He would occasionally pass by a place where people used to dump worn out clothes, and after some time someone would come and burn the heap down. In his mind, he felt like researching the most effective way of making that place clean and save people from the air and eyesore pollution. In his part-time, he would think of the solution until one day he decided to research on ways of recycling used clothes.

Interview report

John came up with one of the recycling methods that would help recycle the torn clothes and use them in designing fashionable clothes for resale. Instead of using raw materials to manufacture designer clothes, John has mastered the art of collecting old rugged clothes and recycling them into more classy and fashionable wears. Initially, he would wait for the people to dump the rugs in their usual dumpsite and ask a friend to collect all of them to his storeroom where he turned to be his business premise. However, later own people came to realize how important such rugs could be and decided to wait for him and sell them at a low price. He is using his wealth of experience as a professional beautician to come up with designs that best meet consumer demands (Surlemont, Fayolle, & Vital 2017, p. 6). The interview was scheduled on a Monday evening as he stated that most of the clients prefer doing their makeups towards the end of the week and during weekends. The interview questions were structured and designed to get a detailed understanding of being an employer and an employee at the same time.

Interview Report

Reason For Being a Hybrid Entrepreneur and Associated Challenges

In response to a question on why some people prefer remaining hybrid entrepreneurs; John pointed out some reasons. He pointed out that most of the people, like him, are more likely to stay hybrid entrepreneur for a very long time because they derive pleasure in both sides (He, Standen, & Coetzer 2017 p. 116). John just like many others is an example of those who find comfort in their employment jobs, which is intrinsic and at the same time would always want to fill the market niche without necessarily quitting their jobs.

According to John, some people would want to continue as a hybrid entrepreneur to supplement their meagre income from employment. Most of the jobs are poorly paying, and it is difficult to survive solely on such tasks. In that case, starts up a business as a way of supplementing the little they get from their employment. Such individuals are more likely to remain a hybrid entrepreneur for as long as their job or business cannot offer them financial security (Maritz, Jones, & Shwetzer 2015). However, most of the people get into hybrid entrepreneurship as a bridge to full-time self-employment.  

Why the Interview Chose the Hybrid Path

Reason for Being a Hybrid Entrepreneur and Associated Challenges

The first question was about the reason he chose the hybrid career path. In his response, it was interesting to note that the choice of going for a hybrid career is influenced by the external factors and internal factors (Douglas & Shepherd 2002). According to John, very few people would be interested in considering a hybrid career path if the country has higher wages and salaries and the social security system is stable. Employees in states with such characteristics are less likely to consider self-employment because they are satisfied. Solesvik (2017) gives an example of Norwegians where only 27% wants to be self-employed since 1997 and the same can be said about Denmark, Lichtenstein, Finland, and Switzerland where not even half are interested in self-employment jobs (Wennekers, Van Stel, Carree, & Thurik 2010). According to John, some of the people in these regions are majorly satisfied and do not consider living their jobs to start a business. In that case, there is the potential for some individuals to consider hybrid where they have their own business while at the same time employed.

Some people are equally forced to take the hybrid career due to lack of permanent employment or low paying jobs. John believes that those who do not have permanent position suffer from job insecurity and the most appropriate solution is to have a side business for security (Schulz, Urbig, & Procher 2016 p. 280). However, according to him, a hybrid career is out of a passion for the two (Thorgren, Nordström, & Wincent 2014). John finds great pleasure in his work as a beautician and at the same time gets a fulfilling experience when working part-time in his firm. His passion was equally driven by the desire to fulfil a market niche in the fashion industry by coming up with creative and sustainable ways of designing clothes.

Challenges Hybrid Entrepreneurs Face

The greatest challenge that hybrid entrepreneurs face is being able to balance the two jobs. The success of business in the current world requires entrepreneurs to take their valuable time to understand the potential threats and come up with possible solutions to the problem. Such decisions can be time-consuming to the extent that one may not get time to deliver effectively in their jobs (Davidsson & Wiklund 2007). John points out that his innovative and sustainable business strategies are a product of extensive research and development, which requires valuable time and financial resources. It becomes a challenging balancing between one’s job and the business. Even though John enjoys employment and working as a businessperson, it is not possible to have the same commitment for the two at the same time (Folta, Delmar, & Wennberg 2010). In that case, one can quickly lose the job when it is realized that productivity has gone down due to other personal commitments.

Employment or running a business is known to consume much time, and most of the people do not find adequate time for their family. John points out those hybrid entrepreneurs have even a much bigger problem because they have to share already short family time to take care of business. It is one of the most significant challenges in balancing roles, as a businessperson, an employee, and as a family member (He 2014). Social life is essential for complete human being, and everyone would always want to have time with his or her family away from the office or business premise. However, this becomes nearly impractical for those who are employed fulltime and have the business that they must oversee.

The last challenge is the limited resources for those who would want to venture into the business at an early age. John points out those older adults have been able to accumulate funds and experience, which gives them the upper hand in having a successful startup (Isenberg 2010). However, young people with a few years as employees suffer from the inadequate resources and are not well experienced in the business environment as aged people. In that case, young people face more risky of failing in business than elderly persons do, and this leads to more distractions that may lead to ineffectiveness at the place of work.

Personal Reflection on the Interview

Based on the interview with John, I have been able to learn so much about hybrid entrepreneurship. It is interesting to note that so many people find it difficult to quit their job for a business (Raffiee & Feng 2014, p. 940). I have noticed that the fear of being regarded as a failure in business more so in the contemporary world that is full of uncertainties has prevented so many people from venturing into business. Some people would rather stay with low-income jobs but not to venture into a business. However, it is evident that the gap between employed and business owners, there are those who are employed and at the same time own business. Hybrid entrepreneurs are known to use their business as a supplement to the low paying jobs while at the same time get the experience of running a business while still working (Thorgren, Nordström, & Wincent 2014, p. 315). Through hybrid entrepreneurship, people are capable of learning the essential skills required to become a full-time businessperson, and it is worth noting from the interview that most of the hybrid entrepreneurs end up being fulltime business owners. However, it is worth noting that being hybrid entrepreneurs has multiple challenges such as, which include inadequate time for the business, employment, and family. Additionally, there is the challenge of resources more particularly to the young hybrid entrepreneur who do not have adequate finances and experience as compared to the elderly hybrid entrepreneurs (Chen 2007). The interview has given elaborate details on the contemporary issues in entrepreneurship theory and practice.

Conclusion

While entrepreneurship is a popular concept that has been widely discussed, hybrid entrepreneurship has not been as popular. However, based on the uncertainties in the business environment, so many people find it risky venturing into business especially when they are permanently employed. Hybrid entrepreneurship is known to be the entrepreneurship where one venture into business and at the same time employed. Interviewee, John, is a professional beautician employed as the lead supervisor of a beauty company and at the same time a successful business owner in the fashion industry. He explained multiple reasons that promote hybrid career, which include financial security, gaining experience, and to supplement income from employment. However, some of the challenges that hybrid entrepreneurs face include lack of time for their business, work, and family. Besides, there is always inadequate resources and experience to run a successful business while also working as employees among the young hybrid entrepreneurs unlike in the case of the older adults. Consequently, those who intend to become hybrid entrepreneurs need to understand the advantages and the challenges associated with it.

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