EFFECT OF ENTREPRENEURIAL TRAITS ON THE GROWTH OF PRIVATEFLY
The importance of entrepreneurial traits looks at the ability the entrepreneur has when placed with ‘pull’ factors and ‘push’ factors. Researchers believe that these traits have an effect on the way a business is set up. Entrepreneurial traits have been summarised into six by Paul Burns (2016).
Creativity, innovation and opportunism this is when an entrepreneur spots an opportunity and uses creativity and innovation to exploit it. Twidell was able to spot an opportunity when visiting RAF Northolt. He showed innovation when he raised 2 million pounds from investors to make the business global.
Also, the need for Achievement which was developed by McClelland and Winter (1969) can…show more content… Because form the analysis of Private Fly business life cycle using Scott and Bruce Model (1987) it shows that they are reaching the end of the life cycle and the use of market development as a growth strategy can help with continuous growth. It can also reduce the risk of over dependency on a particular market. Since Private Fly is already going global rather than just finding new customers they could start looking for new markets. According to Chelliah et al 2010 there is a close relationship with globalisation and financial performance. In appendix 3 it shows that the solvency ratio of the business going down which is the degree at which the business current assets exceeds current liabilities and this might affect long term expansion and growth therefore, they should go into Franchising which is also another approach for the business to target new market. Sara and Dylan 2006 describe franchising as a contractual relationship between a franchisor and franchisee. Therefore, allowing the franchisee the license to produce or offer Private Fly services. This solves the problem of solvency because it is the franchisee that gets capital for the outlet and it becomes a separate legal entity, since the franchisee owns their own outlet there is high motivation to maximise growth and profitability, there is limited payroll, rent and administrative cost but in return the franchisee pays a franchise fee based on level of turn over and supplies purchased from the franchisor. However, for there must be trust between the franchisor and franchisee because there will be no certainty that the franchisee is declaring their true level of business activity. Also, Private Fly has no control over the franchisee which can lead to reputation problems for the entire