There are important differences between the entrepreneurial and managerial functions in a business. Read the two case studies below and discuss at which of these functions Ivan Saltzman and Richard Maponya are competent.

There are important differences between the entrepreneurial and managerial functions, as well as the expertise and competence required by each. Ivan Saltzman and Richard Maponya both proved to be adept in performing entrepreneurial as well as managerial functions. They were able to successfully grow their businesses from small entrepreneurial ventures to large corporations by starting their own businesses and managing them successfully through various initiatives and growth phases.

Entrepreneurial functions include innovative thinking and the identification of opportunities, planning and establishment and/or growth of the business, and application of resources. The entrepreneurial process culminates in the final phase in which the business is started and the entrepreneur has to start managing it. Both entrepreneurs performed these functions well.

After establishing the business, the entrepreneur has to start managing it. The efforts of everyone involved in the business have to be integrated, and the different business and managerial functions have to be tied together. Management of the business involves the managerial functions of planning, organising, leading and control. The entrepreneur also has to manage the various business functions, such as finance, marketing, production, purchasing, administration, human resources and public relations. Personally and through appointment and involvement of well qualified employees and external stakeholders the two entrepreneurs managed their growing businesses excellently.

It is obvious that there are major differences between these important roles to be played by the entrepreneur, and not all entrepreneurs are equipped to perform all the functions of establishing and managing the business. Richard Maponya and Ivan Saltzman have the natural ability to identify opportunities and establish the business, and also succeeded in managing their businesses, employees and specialists to grow their businesses.

Entrepreneurial orientation is critical to the survival and growth of businesses. Discuss the entrepreneurial orientation of Ivan Saltzman and Richard Maponya as far as you can determine from the case studies below.

Entrepreneurial orientation is crucial for the process of entrepreneurial development at the societal level of countries, and is fostered by a unique blend of factors, such as culture, family and role models, education, work experience and personal orientation.

With regards to culture, Richard Maponya was unique as entrepreneurship and business ownership was not allowed for black people in apartheid South Africa. As in developing countries such as Russia and the East European countries before the fall of communism business ownership was also not allowed. Also, limited, if any, role models of entrepreneurs existed for people like Richard Maponya. Yet he started various businesses and managed to grow these successfully.

According to Kanungo, developing nations (in particular in sub-Saharan Africa) are relatively high on power distance and avoidance of uncertainty, and low on individualism and masculinity. In societies with high power distance, social institutions such as the family, school and organisations believe strongly in the hierarchy of authority. In tradition-bound societies, authority and control are based largely on factors such as age and kinship. This denies people the opportunity to develop decision-making skills and the self-confidence to run a business, and has inhibited entrepreneurship in African countries. Richard Maponya defied the culture of his time and became an extra-ordinary entrepreneur in a developing country.

With regards to the other factors that determine the entrepreneurial orientation, Richard Maponya was an educated man, although as a teacher and not related to the businesses he started, but he had some business exposure and experience.

He has a strong entrepreneurial orientation, including creativity and innovation, autonomy, risk taking, proactiveness and is achievement oriented.

Ivan Salzman is more privileged with regards to entrepreneurial orientation as the culture of his environment was that of a developed country and his education, and that of his wife is related to the business that he started. His experience in business grew as the business developed and became bigger. His exposure to role models was good, and his personal orientation to entrepreneurship excellent as he is creative and innovative, operates independently, is prepared to take calculated risks, takes initiative in pursuing opportunities and is achievement orientated.

11.1 Identify and describe the primary reasons for Ivan Saltzmans success. (10)

11.2 What are the most important lessons that can be learnt from the Dis-Chem story? (5)

11.3 Is Ivan Saltzman an entrepreneur or a business owner? Motivate your answer by discussing the process he followed in developing the business. (5)

11.4 Discuss the most important benefits of the expansion of Dis-Chem. (5)