Entrepreneurship Critical Analysis

This essay presents a critical analysis of entrepreneurship, focusing on the fast-food industry in Ghana. It begins by describing the characteristics of this industry in the Greater Accra Region, highlighting cultural factors and pricing. The author expresses their interest in becoming a manufacturing entrepreneur, starting a fast-food restaurant from scratch, and draws inspiration from successful entrepreneurs like Jimmy John Liautaud. The essay then compares and contrasts four entrepreneurial options: independent, family, corporate, and franchise, outlining the benefits and drawbacks of each. A detailed comparison follows, weighing the pros and cons of buying an existing business versus starting a new venture. Finally, the author concludes by recommending against acquiring an existing venture, emphasizing their preference for building a new business from the ground up, driven by creativity and innovation, despite the inherent risks involved.

Running head: CRITICAL ANALYSIS
Critical Analysis
Topic: Entrepreneurship
Student’s name:
Name of the university:
Author’s note:

1CRITICAL ANALYSIS
Table of Contents
1. Description of fast food industry in Ghana..................................................................................3
2. Type or entrepreneur I would like to be and reason behind my interest in becoming that type
of entrepreneur.................................................................................................................................3
3. The benefits and drawbacks of each of the four options.............................................................4
4. The benefits and drawbacks of buying an existing business compared to starting one from
scratch..............................................................................................................................................6
5. Provide recommendations as to whether or not I will acquire a venture.....................................7
Reference List..................................................................................................................................8

2CRITICAL ANALYSIS
1. Description of fast food industry in Ghana
In the Greater Accra Region, fast food restaurants are famous and availability of
restaurants is high in this region. I would like to open a new restaurant that would offer globally
recognised fast foods to the consumers. The main characteristics of the fast food industry in
Ghana are cultural factors and price of the food items (Omari and Frempong 2016). In the Accra
region, most of the fast food restaurants sell pizza, French fries, fried rice, in addition, traditional
Ghanaian foods like kelewele, tilapia with banku and jollof rice. In my restaurant, I would
mainly focus on globally acclaimed fast foods with traditional Ghanaian food also. Rapid
urbanization and busy lifestyle of the people of Ghana make the fast food industry famous. The
global fast food market is now worth of more than 500 billion USD.
2. Type or entrepreneur I would like to be and reason behind my interest in becoming that
type of entrepreneur
I would like to be a manufacturing entrepreneur as I will manufacture the fast food items
in my restaurant. It would be a start-up venture of my own from the scratch. I shall identify the
customers first and then explore my resources to open a new restaurant at Greater Accra Region.
I will definitely follow the characteristics of a technical entrepreneur to convert raw materials
into finished items. Since my childhood, I have been interested in opening my new business and
I follow Jimmy John Liautaud, the owner of Jimmy John's. Jimmy John sells various types of
sandwiches and beverages. Jimmy John Liautaud had no formal business education; still, he
became one of the successful entrepreneurs by starting the business model of selling to franchise.

3CRITICAL ANALYSIS
3. The benefits and drawbacks of each of the four options
Independent:
Benefits:
Independent business gives the full control in each of the matter to the owner. The owner
takes the last decision in making the brand image. Independent ownership gives the advantage of
having a less structured business that gives the advantage of impromptu decision from the owner
in crisis. Independent business type owners don’t have to abide by any rules when they expand
their business. Independent venture gives the flexible working opportunity and financial rewards
in long run (Dennis 2011). Moreover, learning opportunity is bigger in independent business
with creative freedom and satisfaction.
Drawbacks:
First of all, financial risks are there in the business as an entrepreneur has to invest money
of his/her own. If all decisions do not go well, the financial loss is huge. There is lots of stress
that are associated with the independent venture. The time commitment is related to this as new
venture needs time to walk alone.
Family:
Benefits:
One spends plenty of time with family and one has good internal relationship and
bonding with family persons. This collaboration and understanding help to flourish the business.
More than that arranging investment becomes easy as family members also donate in business.
The business partners are also family members and friends, so business venture becomes

4CRITICAL ANALYSIS
empathetic. In this business, stakeholders are the family members and mood in the business
premises becomes relax. Family business deploys tradition and pressure becomes less in the
family business.
Drawbacks:
In this business, in long run, business starts dispute as professionalism comes among
family members. Conflict in the business can carry to the personal life also. In a family business,
most of the time, it is seen that unfair business practices destroy the business (Ward 2016). In
succession of the business, leadership issue comes to the forefront.
Corporate:
Benefits:
The corporate form of organisation gives the advantage of limited liability in business.
The owner is not liable for debts and assets. As it is a stand-alone entity, it would have separate
tax system (Blank 2013). The corporate form of business does not end up when the owner of the
business die as it has many stakeholders.
Drawbacks:
The cost of continuing a corporate business is high and business operators have to cope
up with. Corporate organisations have to pay tax for twice, one for profit and second time for a
dividend of shareholders.
Franchise
Benefits:

5CRITICAL ANALYSIS
The best benefit of the franchise is that one portion of the business is always taken care
by the franchise owner. Franchisor invests the capital of the business. In marketing of the
product, the franchise takes responsibility in advertising the brand. However, the business takes
shape in the industry and it helps in establishing the brand loyalty to customers. An established
brand provides credibility to customers to buy the products.
Drawbacks:
However, in franchise ownership, the franchisor has less freedom and it does not give
scope to the franchise owner. The franchise has contractual obligation to the owner and legal
contracts are there (Martiarena 2013). In some cases, the clash of interest can provide a problem
to the franchise business. A new entrepreneur who buys this franchise cannot structure the
business according to the business needs.
4. The benefits and drawbacks of buying an existing business compared to starting one
from scratch.
In buying an existing business, it has already its procedures and plans that might help in
continuing the business. The business is established already and it has its market share. Existing
business gives immediate cash flow. This business has already financial history along with
goodwill, existing suppliers, staffs and stock. On the contrary, the existing business may have a
negative brand image in the market with major improvement needs. It may require a large
amount to renovate it as it may be in financial backward place. External factors impact on
business; professional fees have to bear in case it is doing under-performance. Most of all,
established a relationship with stakeholders should be good in the existing business (Frederick et
al. 2006).

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On the other side, new start-up gives a sense of ownership a new business and a feel of
‘being the boss’ and financial independence. For entrepreneurs, it is the best feeling to create
something new as it is not related to the management aspect. The new business idea brings
disruptive innovation in the business context (Drucker 2014). On the contrary, starting with new
business takes time to run smoothly as potential customers and knowledge of marketing are
needed. The failure rate is high in start-up context and lack of structure in the business makes it a
failure. Mostly, the investment in the fresh startup is difficult to procure.
5. Provide recommendations as to whether or not I will acquire a venture
Acquiring an established venture has the risk, although it has lower risk than starting a
new business. Established business has already existing customers; however, purchasing
business is time-consuming and complex legal process (Kirzner 2015). I will definitely check the
business records, competitors, license and registration certificated before purchasing the venture.
If the existing venture has good market share and reputed brand image, then it would be a good
decision. Buying an existing business means it already has its contacts, customers, suppliers and
staffs with equipment, whereas, an existing business may have a poor market share, badly
managed and high competition. However, I will not purchase the existing business as I have
always dreamt to start my own business in fast food restaurant with my own effort. It gives a
sense of creativity and innovation. I have always driven by my curiosity and it would be a great
idea to grow with the real business. There is always a fear, doubt and anxiety that are associated
with entrepreneurship practices in a start-up a new venture and I will overcome these with
excitement, general euphoria and passion of work.

7CRITICAL ANALYSIS
Reference List
Blank, S., 2013. Why the lean start-up changes everything. Harvard business review, 91(5),
pp.63-72.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(1), pp.92-106.
Drucker, P., 2014. Innovation and entrepreneurship. Abingdon: Routledge.
Frederick, H.H., Kuratko, D.F. and Hodgetts, R.M., 2006. Entrepreneurship: Theory, process,
practice. Victoria: Cengage Learning.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Martiarena, A., 2013. What’s so entrepreneurial about intrapreneurs?. Small Business
Economics, 40(1), pp.27-39.
Omari, R. and Frempong, G., 2016. Food safety concerns of fast food consumers in urban
Ghana. Appetite, 98, pp.49-54.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Berlin: Springer.