Report: Entrepreneurial Approaches of Nicholas Molnar, Afterpay Group

This report critically examines the entrepreneurial approaches of Nicholas Molnar, the CEO of Afterpay Touch Group, in light of established entrepreneurial theories. It identifies the relevance of these theories and correlates them with Molnar's actual business practices to pinpoint any potential shortcomings. The report delves into Molnar's entrepreneurial qualities, including his long-term vision, innovativeness, and adaptability, while also addressing areas such as profit orientation and communication skills. Issues in Molnar's approach are identified, such as lower profit margins and lack of stakeholder engagement. Based on this analysis, the report offers recommendations for enhancing the operational efficiency and sustainable growth of Afterpay, including the development of economic models and improved communication strategies. The report concludes by summarizing the key findings and providing actionable insights for Molnar to strengthen his entrepreneurial approach.

Running head: ENTREPRENEURSHIP AND MANAGEMENT
ENTREPRENEURSHIP AND MANAGEMENT
Name of the student
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Executive Summary
The report aimed at examining the entrepreneurial approaches that are induced by Nicholas
Molnar, the CEO of Afterpay Touch Group, in the light of entrepreneurial theories. The
relevance of the theories and the correlation between the actual practices and the theories are
being identified with the objective of locating the loopholes in the entrepreneurial approach of
Molnar. The report will develop a clear identification of the issues in the approaches that are
considered by Molnar and thereby suggest a list of recommended activities for enhancing the rate
of operations of the venture.

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Table of Contents
1. Introduction..................................................................................................................................3
1.1Assessment of entrepreneurship theories................................................................................3
2. Nicholas Molnar from Afterpay Touch Group............................................................................5
3. Assessment of entrepreneurship qualities of Molnar...................................................................5
3.1 Issues in the entrepreneurship qualities of Molnar................................................................7
4. Conclusion and recommendations...............................................................................................9
4.1 Recommendations..................................................................................................................9
4.2 Conclusion.............................................................................................................................9
References......................................................................................................................................11
Appendix........................................................................................................................................13

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1. Introduction
Entrepreneurship enhances the rate of operations of the businesses while operating in the
different markets. The capacity and willingness of the Entrepreneurs to organize and manage the
operations of the business with the objective of gaining a margin while taking risks that might
restrict the operations are one of the biggest aspects that are considered by the businesses. The
key changes on the organizational operations are grounded on the decision making skills and the
market based knowledge of the entrepreneur. Terjesen, Hessels and Li (2016) defined
entrepreneurship as a form of governance through which an entrepreneur manipulates the
operations of the venture while operating in the different markets. Therefore, the long term
vision, decision making skills, communicability, knowledge of the market demand and the like
supports an entrepreneur in improving the scope of profitability of the venture.
In this relation, the report will examine the entrepreneurship skills of Nicholas Molnar,
the CEO of Afterpay Touch Group, through conducting an interview. The assessment of the
entrepreneurship skills of Molnar will support in identifying the flaws in the approach and
thereby the research will demonstrate a list of recommended activities for Molnar with the
objective of enhancing the entrepreneurship qualities.
1.1Assessment of entrepreneurship theories
The Need for Achievement theory by McClelland clearly defined the need of the
entrepreneurs in developing the operations of the business with the objective of gaining a
competitive edge against the existing market players (Khurana and joshi, 2017). The key
modifications in the business processes that are initiated by the entrepreneurs are dependent on
the market assessment and the need for change. The diverse modifications that are planned by
the entrepreneurs rely on the critical assessment of the needs for change in then processes. The

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basic elements relating to risk taking and innovativeness in the design of the processes and the
propositions that are initiated by the entrepreneurs are chiefly inclined towards the positive
influence of achievement. The modifications in the organizational operations are reliant on the
uninterrupted functioning of the systems in alignment with the needs of the customers while
operating in the different markets.
Moreover, Schumpeter’s Theory of innovation in entrepreneurship critically developed
an idea on the needs of innovation in entrepreneurship as it enables an organization in gaining a
competitive benefit (Rahdari, Sepasi and Moradi, 2016). The innovativeness of the
organizations through continuous learning and market based knowledge of the entrepreneurs
chiefly contribute to the opportunities of growth and expansion that are exploited by the
ventures. On the other hand, Schumpeter’s theory also enumerated a better understanding of the
long term vision of the entrepreneurs that contributes to the systematic operations of the venture
while enhancing the rate of operations of the same. The major modifications that are witnessed
by the organizations relied on the long term vision and morality of the entrepreneurs. Therefore,
Schumpeter’s theory of innovation in entrepreneurship is one of the major theories that critically
examine the attitudes and responsibilities of an entrepreneur while developing a startup.
In addition to Schumpeter’s theory of innovation, the Opportunity based theory of
entrepreneurship was proposed by Peter Drucker and Howard Stevenson which reflected on the
manner in which the entrepreneurs exploit the opportunities for bringing forth modification in
their business model (Shepherd and Zacharakis, 2018). The theory critically examined the
manner in which the entrepreneurs study the market dynamics with the objective of improving
the resource base while making expansions in the market. The assessment of the market situation
and a steady knowledge of the markets supports an entrepreneur in developing the operations

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while correlating with the sustenance based needs of the firm. Therefore, the assessment of the
theories relating to entrepreneurship aimed at identifying the attitudes and responsibilities of the
entrepreneurs while operating in the different markets.
2. Nicholas Molnar from Afterpay Touch Group
Nicholas Molnar have been selling watches and costly jewelry on eBay Australia before
he got involved with FinTech in 2014 (Digital, 2019). Molnar created, Afterpay, an online
company with the objective of providing the customers with unique payment options (Digital,
2019). He developed the organization with the mission of providing the customers with a
payment option like “buy-now pay-later”, which attracted the attention of around 375,000
customers and more than 2,100 retail merchants (Digital, 2019). The organization was listed in
the Australian Stock Exchange at a market capitalization of $123 million (Digital, 2019). The
innovativeness of the payment option appealed largely to the Millennials (GenY), which again
supported the dynamic growth of the tech solution that was improvised by Molnar (Digital,
2019). The increased innovativeness of Molnar is reflected through around 1.9 million
transactions contributing to the sustenance of the venture (Digital, 2019).
3. Assessment of entrepreneurship qualities of Molnar
The long term vision of Nicholas Molnar and the application of innovation in the
organizational pricing systems enabled the organization in gaining economic sustenance. On the
other hand, the extensive knowledge of the customer needs and market trends supported Molnar
in improving the rate of operations. The innovativeness of the organizational operations are
related to the unique payment options that appealed to the millennials. In this relation, Hitt and
Duane Ireland (2017) stated that the different changes in the organizational operations are
dependent on the extensive knowledge of the entrepreneur on the markets. Therefore, superior

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knowledge based on the needs of the customers and the analysis of the competitors in Australia
enabled Molnar in influencing the innovativeness of the organization.
As per the Opportunity based theory, the development of the organization based on the
assessment of the sustainable opportunities and exploitation of the same through change enabled
Nicholas in developing successful enterprise. On the other hand, the need for achievement
theory is also noticed through the improvements that are made by the organization. In this
relation, Molnar aimed at attracting the attention of the millennials based on their buying
behavior and market trends. The initiative and willingness that is being portrayed though the
perseverance and tolerance towards the framework design also enabled Molnar in enhancing the
rate of operations of the venture while operating in the different markets.
In other words, the flexibility and adaptability of Molnar also enabled him in developing
the process design of the service tech related operations of the venture. Nambisan (2017) opined
that the flexibility and adaptability of an entrepreneur backing the rate of operations of the
venture while operating in the different markets. The long term vision and strategic discourses
planned by Molnar critically contributed to the sustainable edge of the venture while operating in
the different markets. Molnar’s self- confidence on the field and responsiveness to the
suggestions might be attributed to the resourcefulness of the same. One of his employees
commented on his leadership as a person having extensive knowledge on the processes which
not only supported in designing the processes but also acted as an active guide for the operations
that are initiated by the workforce. Therefore, the overall entrepreneurship skills of Molnar
contributed to the proficient development of the enterprise while observing the needs of the
millennials and the recent market trends that are shaping the retail markets in Australia.

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3.1 Issues in the entrepreneurship qualities of Molnar
The entrepreneurship qualities of Molnar reinforced the operations of Afterpay Touch
Group and led the same towards the competitive benefits. However, there are significant issues
that are being encountered by the entrepreneurship qualities that acted as loopholes while
managing the operations of the entire organization. The section will identify the issues in
entrepreneurship qualities of Molnar.
 Lower profit orientation: Molnar aimed at developing the organizational processes while
focusing more on making the propositions more accessible and attractive to the
consumers through reductions in the profit orientation. The lower profit orientation of the
organization is reflected through the fact that the company did not make any profit during
the introduction of their innovative proposition. The major cause of their minimized
profit making is related to the policy of the organization which does not let the
organization charge for defaulted payments (Terjesen, Hessels and Li, 2016). The lack of
profit orientation of the organization have again enhanced the level of risks that are being
faced by the same while operating in the different markets. The lower profit orientation
of the venture would again affect the rate of operations of the venture while expanding in
the different markets. The innovativeness of the entrepreneur undoubtedly supported the
venture in establishing a successful venture. However, the lack of profit orientation might
affect the economic sustenance of the organization while competing with other existing
leaders in the markets.
 Lack of communication skills of Molnar: The lack of proficient communication skills of
Molnar affected the rate of operations of the venture through restrictions in idea
transmissions throughout the business models. The lack of proficient communication

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between the stakeholders and Molnar due to his introverted attitude has obstructed free
flow of information that would contribute to the uninterrupted functioning of the business
units. Kazanjian, Drazin and Glynn (2017) opined that the key modifications in the
organizational operations specifically relied on the continuous transmission of
information to the different stakeholders. The stakeholders of the organization work
collaboratively for achieving the common goals. In this relation, communication does not
only enable an organization in developing uninterrupted flow of operations but also
supports in maintaining the transparency. The transparency in the business processes
enables an organization in enhancing the rate of operations. However, the lack of
proficient communication might affect the rate of operations of Afterpay Touch Group.
 Lack of engagement of the stakeholders in the decision making process: The
centralized structure is imposed by the entrepreneur for imposing direct control over the
operation that are conducted by the ventures. In this relation, the implementation of the
centralized decision making structure restricted the organization in encouraging the
engagement of the stakeholders in the decision making model of the organization. The
active participation of the stakeholders in the decision making process of an organization
supports the same in taking informed decisions. Belz and Binder (2017) stated that the
modifications that are initiated by the organizations are chiefly reliant on the consultation
that is initiated by the same with the stakeholders from the different departments.
However, the lack of engagement of the stakeholders in the decision making process
might affect the rate of operations of Afterpay Touch Group.

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4. Conclusion and recommendations
4.1 Recommendations
The recommended activities that might be considered by Molnar are being discussed in
this section of the research:
 Developing Economic models for the organization: Molnar must take steps to design an
economic model for the organization with the objective of empowering the economic
sustenance and increase profit orientation of the venture. The development of the
economic models for the organization would support Molnar in backing the sustainable
growth and expansion of the venture in the US markets.
 Improving the line of communication with the stakeholders: Improvements in
communication through digital transformation would enable Molnar in not only
maintaining the transparency of the operations but also encourage the involvement of the
stakeholders in the decision making processes. Zahra and Wright (2016) noted that the
proficiency of the organizational operations are related to the maximized engagement of
the stakeholders. Therefore, increased communication would support in developing
informed operations along with building links of trustworthiness and loyalty between the
employees and the management. Therefore, Molnar must take steps to develop efficient
links of digital communication with the objective of encouraging the involvement of the
stakeholders in the different processes.
4.2 Conclusion
Therefore, from the above analysis it might be stated that the entrepreneurship qualities
of Nicholas Molnar greatly influenced the innovative payment propositions of Afterpay Touch
Group. Molnar primarily targeted the millennials depending on their buying habits and market

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trends. The long term vision, creativity, knowledge on the processes, risk taking initiative of
Molnar supported the organization throughout its journey of establishing the same in the
Australian markets. However, there are certain flaws in the entrepreneurship approach of Molnar
which might restrict the enhanced economic sustenance and profitability of the venture which are
also being discussed as a part of the research. The research developed a line of recommended
activities that might assist Molnar in avoiding the issues that are being faced by the organization.

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References
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<https://afterpaytouch.com/> [Accessed 13 August 2019].
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management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kazanjian, R.K., Drazin, R. and Glynn, M.A., 2017. Implementing strategies for corporate
entrepreneurship: A knowledge‐based perspective. Strategic entrepreneurship: Creating a new
mindset, pp.173-199.
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comparative study based on mcclelland's three need model. Clear International Journal of
Research in Commerce & Management, 8(7).
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entrepreneurship. Entrepreneurship Theory and Practice, 41(6), pp.1029-1055.
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social entrepreneurship: The role of social enterprises. Journal of Cleaner Production, 137,
pp.347-360.
Shepherd, D.A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. In Reflections and Extensions on Key Papers of the First Twenty-Five
Years of Advances (pp. 149-183). Emerald Publishing Limited.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A review
and research agenda. Journal of Management, 42(1), pp.299-344.