Describe about the Case Study of Importance Of Training Strategy For Entrepreneurs?
This report discusses about a small part of the subject management of human capital and entrepreneurship. Accordion to Cohan (2012), “Aspiring entrepreneurship should look out for big companies in which to train by following the hungry startup strategy of big companies as start up training grounds?” In this statement, author clearly wants to say that aspiring or start up entrepreneurs should follow the strategy named hungry startup strategy which is used by the big or large scale organizations to train the employees or learn new things. Hungry startup strategy has basically six steps that help in learning or training of the employees. These steps are setting goals for the training, picking up the market, raising capital, building a smart and able team for the organization, Gaining the share and adapting the change.
All the factors described in the hungry startup strategy are very much helpful for any organization to give a potential start to the organization. Before going to start any work or organization, it is very necessary to set its goal and objective. The purpose of the organization helps in picking proper direction for the organization. After setting the goals, organization needs to decide its target market and should try to pick the target market effectively. For an entrepreneur, raising fund is a big challenge and it is very much necessary also because without proper fund, it is very tough to perform any type of business. Without a proper and efficient team, it is very tough to perform any type of business, thus an entrepreneur need to have the skills to build and efficient team for its organization. Share dividing requires lots of financial formulas to make fair decision and change is the nature of world, hence, being with the fast changing technology is very necessary to be with the competitive market (Sarri, Bakouros & Petridar, 2010).
All the above factors are of lot of importance for an organization. So, an entrepreneur needs a proper training for all these. Thus, it is very necessary for the entrepreneurs to make a proper training strategy for its organization.
Figure: Hungry Start up Strategy (Nafziger, 2009)
There are six steps of Hungary start up strategy
There are three different kinds of goals to be set.
The first goal is to communicate why originators are fanatical about the venture.
The second goal is, Ultimate outcome of the venture is described by the long term goal.
The third goal is, short term goal that spur to make a series of experiments that are used to find a business model that eventually leads them to get the second goal which is long-term goal.
For example – Dickie and Watt started BrewDog. They thought that the goal should be designed to put the company on higher level by some easy method. So, they made a sequence of goals to make their work easy. These goals are-
Goal 1. They resigned from their corporate jobs because they found something to do after resigning their job.
Goal 2. They decided that crafting beer is a perfect thing for them to do, they created some buzz.
Goal 3. After creating there buzz, they had to find distributers in their country.
Goal 4. The most challenging goal is to convince a bank for loan so that they can make facility to satisfy the customers.
Start-up CEOs chose a very personal way to pick market. They picked market on their opportunities and on their own experience. The thinking of CEOs is that they are exclusively qualified to capture. The size of the market is estimated only by the company founders when seeking outside capital (Jusoh, Ziyae, Ashimirah & Kadar, 2011).
For example, the cofounders of BrewDog liked drinking and making craft beer, so they decided to pick the craft beer market. They really wanted to sell it. They knew that it was too hard but they did not give up. They sent their sample products in Sweden to a beer blogger who loved their product.
The availability or lack of capital, thereof, forces the directors to approach raising of capital differently for each and prepare their short term adjective like a series of experiments of frugal nature.
BrewDog used a different way to cobble its capital. By its initial operation, it got loan from a bank and it started selling its shares of stock to their customers, this program is called “Equity for Punks”. It pays for raw materials like bottles, malts and hops to its suppliers. It launched a new technique for speeding the payments from customers, which is, it gives 3% discount to the distributers who pay payment within 10 days (Gravan & O’Cinneide, 2004).
A top team can be attracted by a new CEO even after payment of less salary to team members with the enough compelling mission. The members who should be fired and promoted, decisions about who should be hired, and how they should act, is driven by the passion underlying.
The BrewDog‘s value affects the gained market share. To make an anti-corporate bias, and a high quality craft, beer are needed to be made by passionate devotion. This also influences people who are hired by the BrewDog. The work environment of BrewDog demands very long hours which is called anti-corporate.
A QVL is provided to customers to share the start-up achievements with customers, here QVL means Quantum Value Leap. In this, a twist is combined with Porter’s generic strategy. A freemium strategy is an extreme example of QVL. In freemium strategy, product’s basic version is free for customers and the new version of product will be charged by customers. It is provided into that place in which the product is in demand.
Humorous and clever videos are produced by the BrewDog to advertise their products. These videos attract the people by viral growth. In the United Kingdom, one page magazine advertisement, which comes at an expense of around $8000, reaches to a few potential consumers. Besides this, the company also created a YouTube style video for $2400. By this, BrewDog reaches to 250,000 people around many countries.
To identify the critical listening posts in competitive environment, the developments of boundary less companies helps the start-ups. The critical few signals of key threats and opportunities are filtered to out the noise. These are such opportunities and key threats which they can’t be ignored (NAfziger, 2009).
BrewDog wants to expand its business to more countries. Everywhere is competition, wherever they want to go. But the company is very passionate towards its work and it believes that its customers and founders are very much attracted towards their craft beers.
There are three components to make boundary for entrepreneurship. These are described below:
Strengthen, motivate, progress and confidence can be developed by entrepreneurship training in a large organization.
To increase the self-employment skills, financial literacy and technical can be included in entrepreneurship in a person. It will be helpful for the person to develop their own business.
Training for creative problem solving, how they affect business, local cultural norms, dealing with bureaucracy, group leadership, presentation. Interviewing, selling, opportunities seeking, social skills networking can be provided into the entrepreneurship training.
Entrepreneurial training needs to focus on literature as much as on personal development. Literature is important for blended learning experience. The best tools of skills and business knowledge are combined in blended learning experience. Training events give approaches to blended learning experience.
The media plays an important rule for entrepreneurship. Careful thoughts are needed for social acceptance and awareness of entrepreneurship. Radio and television deliver positive information about enterprise and entrepreneurship. It helps to overcome from negativity that exists in the society about entrepreneurship. Some NGOs and mass media also help to overcome from negativity that exists in society (St-Jean & Audet, 2012).
The role of entrepreneurship finance, entrepreneurship trainings, banking rules, managing civic administration and regulations needed to be covered by some NGOs, business development agencies, civic organizations, and educational institutions. The content of emotional feelings of entrepreneurship needed to be understood by them. Entrepreneurship training needs motivation to motivate a person for business development.
Entrepreneurship finance, entrepreneurship education, banking rules, managing civic administration, regulations, and fair play are needed to be discussed at the supply side. These factors must be based on the sole goal of entrepreneurship. At the supply side, a person needs a role model to understand the importance and value of entrepreneurship. By a role model, a person can see the effect of entrepreneurship.
For a long term and sustained funding, it is needed to be committed by the government. This is helpful for those people, who have the talent but not enough money so that they can start their business. Self employment can be supported by government. The review of legislation is needed by the government too. Legislation means that, which holds back the entrepreneurship.
Entrepreneurship can be flourished by an ecosystem which is developed by a network. This network is made by well established entrepreneurs, multinational companies, and stakeholders. Web based resources are created by multilateral Organizations like UN.
Institutions, trainers and educators can develop their curricula, to make sure that it is dynamic, fresh, relevant and cutting edge. Television must not be ignored as it has a major reach across society and can be influential in transmitting ideas and raising aspirations.
The most important thing that can transmit ideas and raise aspirations around the world influentially is television. Television can’t be ignored because it plays a very important role to make people aware about the entrepreneurship.
Some small organizations give vast majority to those working people who are self employed. These small organizations financially help them for their businesses so that they can achieve higher level in their business. They help those people according to their education and recent income. By income and education they decide how much amount of money will be suitable for the specific person (Kim, Yoon & Kim, 2014).
With the increasing competition in the market, the need of training of the employees has also become necessary for each type of organization. Big organizations mainly use the Hungry Startup strategy which is properly explained in the above report. This strategy provides a basis for training strategy of the organization. Entrepreneurs may also use this strategy to make a good strategy for the organization. In today’s technological world, the training of employees has become very necessary, a single time training is not enough for the organization. For updating with the current market and technology, a timely training helps a lot.
The overall training includes basically three types of purposes: personal development, business development and entrepreneurship skill development. Personal development includes the development of personal skills like communication, leadership, stress management, balancing between work and personal life and various others which help entrepreneur in remaining enthusiastic and energetic towards work. Business development includes the training related to the proper management of business. Various types of skills are required to manage a business properly and effectively.
The huge preponderance of the working populace in the world are freelance or working in small companies, but as yet their profits level are not enough to raise people above the grinding scarcity and strike the targets set under Millennium growth objectives. While political and economic reformations plays a vital role in setting the picture, populace require the mindset, skill and knowledge to take benefit of opportunities. It is supposed that this involvement can assist in making a difference in this pitch.
Sarri, K. K., Bakouros, I. L., & Petridou, E. (2010). Entrepreneur training for creativity and innovation. Journal of European Industrial Training, 34(3), p.270-288.
Jusoh, R., Ziyae, B., Asimiran, S., & Kadir, S. A. (2011). Entrepreneur training needs analysis: implications on the entrepreneurial skills needed for successful entrepreneurs. International Business & Economics Research Journal (IBER),10(1).
Garavan, T. N., & O’Cinneide, B. (2004). Entrepreneurship education and training programmes: A review and evaluation-Part 1. Journal of European industrial training, 18(8), p. 3-12.
Nafziger, E. W. (2009). The effect of the Nigerian extended family on entrepreneurial activity. Economic Development and Cultural Change, p.25-33.
St-Jean, E., & Audet, J. (2012). The role of mentoring in the learning development of the novice entrepreneur. International Entrepreneurship and Management Journal, 8(1), p.119-140.
Kim, Y. D., Yoon, S., & Kim, H. G. (2014). An economic perspective and policy implication for social enterprise. American Journal of Applied Sciences, 11(3), p.406.
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