Challenges in the Era of Globalization - iaabd

Proceedings of the 12th Annual Conference © 2011 IAABD
prospective entrepreneurs and educators as examples of directly recommended perceptions regarding the
advantages, successor planning , family involvement , government support and advice in this field.
Results
In responses to role of family members in the running and management of enterprise, 92 percent of the
respondents in Mbarara are of the opinion that family members make very huge contributions to
entrepreneurial success by providing “cheap” or even free “labour”. Respondents stressed the power of
family trust, co-operation, commitment and allegiance which drives harmony that lead to success. Family
members are more honest than employees are since they view the business as their source of survival.
More over, family members who acquire formal education are integrated into the business to inject new
ideas and views.
In Nnewi, the findings were quite different. Family members had fewer roles to play in the running and
management of the business. The respondents stressed the fact they want to take indepnednt decisions
without the interference of family members. In most almost all cases, wives and children were just
figureheads with their powers limited to the space their names occupy in the business profile. Siblings and
extend members of the family (extended relatives) were more part of the business than the immediate
family. Family members involved in business were often incorporated as apprentices under the guidance
and mentorship of the entrepreneur. They are involved in the day-to-day running of business mainly as
trainees and rarely contribute in decision-making. When probe further on their decision to limit family
members interaction with the business, the respondents were quick to add that they lack trust in family
members ability, discipline and accountability. Respondents stressed that to avoid insolence from family
members who showed particular interest in becoming entrepreneurs, they are encouraged to tow this line
of business under their direct ownership or to diversify in to another line of business.
In response to the question of how entrepreneurial leadership impacts of success of an entrepreneur, 95 %
of the respondents in Mbarara agreed that, the entrepreneur leadership has a positive impact on enterprise
success. Respondents gave various leadership qualities that help shape their success. They include; ability
to work for long hours, tolerance, hard work, ability to take risks, desire for independence, embracing
change, tolerance and boldness. Equally, in the Nnewi cluster, respondents agreed that leadership
positively impacts on success. Commitment and dedication to business grooming and personal lifestyle of
the entrepreneur are qualities that influence success. Respondents noted that personal lifestyle had a
devastating impact on business survival. They stressed that ostentations lifestyles drain most of the
capital that should ought to be ploughed back into the business.
As regards founding entrepreneurs focus on different area of competencies for successful management,
respondents from both Mbarara and Nnewi affirmed that they focused on different areas of competencies.
They emphasised that demands of modern business goes beyond solitary ideas and decisions making.
Respondents from Nnewi noted that they depend a lot on highly competent professionals either as
permanent staff or as consultants because of their limited educational background and limited knowledge
of policies. Nine-two percent of the respondents Mbarara agreed that the success of their enterprises were
as result of the competencies of the founders. However, when the respondents were asked to rank human,
social and financial capital in terms of their contribution to success, 95 percent ranked financial capital as
the most important.
In response to the effect of successor involvement on entrepreneurial success, 95 percent of the
respondents in Mbarara are of the view that successor involvement in business contributes highly towards
entrepreneurial success as it encourages planning, hard work and continuity. In Nnewi, respondents noted
that successor involvement in business was necessary for entrepreneurial success. Successor involvement
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