Forces driving the entrepreneurial trend in our economy include which of the following:SECTION B – CASE ANALYSIS (25 MAR

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Forces driving the entrepreneurial trend in our economy include
which of the following:SECTION B – CASE ANALYSIS (25
MARKS)
Read the case and answer the questions on the sheets
provided.
Mini Case: Russell Cox
Russell Cox dates his entrepreneurial beginnings to when he was 14
years old when he started a greenhouse business. When he was 17
years old, his parents bought a retail picture frame shop. They had
operated a trophy shop in their home, but knew nothing about
framing. Russell had an eye for beauty and a gift for working with
his hands, however, and he taught himself the business.
Five years later, he was ready to go into business for himself.
He had been a B student at Trinity High School in Euless, Texas. He
chose a distributive education (now called marketing education)
program at A & M Consolidated, College Station, Texas.
"I think I learned the most from my DE classes when we had an
open discussion about our jobs," Russell says. "I was
self-employed, but I learned a lot from fellow students on what not
to do as a business owner."
A self-described natural organizer, Russell held offices in high
school and vocational school that taught him how to negotiate and
compromise. He was president of Distributive Education Clubs of
America (DECA), captain of the gymnastics team, and a candidate for
the DECA area presidency.
From these early experiences, Russell learned an important fact
about himself. "A traditional job would not provide me with the
independence and financial opportunities that I seek," he says. And
he had observed that other members of his family enjoyed a higher
standard of living through owning their own businesses.
The frame shop gave him the idea for his own business. "I moved
and started a wholesale version of the same business. In order to
reach my goals, I knew that I must serve the larger corporate
market. Wholesale can serve a larger market from one location than
a retail store," he explained.
From Entrepreneur magazine, he learned creative financing
methods and how to draw up a business plan. His accountant helped
him prepare a budget. According to industry surveys, there was
corporate demand for his type of business. For financing, Russell
used personal savings, bank financing, and lease-purchase
agreements.
He works out of a warehouse with one small office. This
arrangement not only keeps down overhead, allowing Russell to price
his product competitively and offer volume discounts but also
appeals to his customers. "Clients seem to like coming out to the
warehouse to see other works in progress," he says.
He stresses the creative side of his business. "When you supply
retailers," Russell points out, "you must create new designs
constantly. I have to produce a number of different designs so that
each retailer will have something slightly different than the
competition."
"Buying right is another big part of my business. In order to
stay competitive, I must bypass distributors and seek out the
manufacturers," he says.
Besides himself, six people work in Russell Gallery. In the past
three months, sales were $27,000. Russell put all the profits back
into the business. Russell is very precise about his plans for
growth. He wants to gross $200,000 by the end of this year, and $1
million by the end of 2017. He will expand "horizontally" into
frame molding manufacture, art publishing, and retail sales. He
plans to make Russell Gallery into a broad-based wholesale/retail
art and framing company.
Being in business for himself has caused Russell to sacrifice
material possessions now for future rewards. He knows he works
longer and harder than his friends. Some of his hurdles are
psychological...like "being patient and optimistic when there is
little motivation to do so. "But Russell does not give up. An
important failure can deal him a temporary setback, but he bounces
back. "I usually feel down for a day or two before I get my
attitude straightened out and come back even stronger," he
says.
QUESTIONS ON THE CASE
31. List six (6) supporting and enabling factors that are
evident in the case and state how these aided in Russell’s
success? (6 marks)
32. List six (6) personal entrepreneurial characteristics
you deduce from the case and state what role they
played in Russell’s success? (6 marks)
33. Explain the main methods and strategies used by
Russell to create and build his business? (6 marks)
34. Using evidence from the case, discuss the advantages
and disadvantages of being an entrepreneur instead of working for
someone else. (7 marks)