Chapter Two Assignment JANE’S EVALUATION Paul Medwick is a commercial banker. In

Question

Chapter Two Assignment

JANE’S EVALUATION

Paul Medwick is a commercial banker. In the past month, he has received loan applications from three entrepreneurs. All three have fledgling businesses with strong potential. However, Paul believes it is important to look at more than just the business itself; the individual also needs close scrutiny.

The three entrepreneurs are (1) Robin Wood, owner of a small delicatessen located in the heart of a thriving business district; (2) Richard Trumpe, owner of a ten-minute oilchange-and-lube operation; and (3) Phil Hartack, owner of a bookstore that specializes in best sellers and cookbooks. Paul has had the bank’s outside consultant, Professor Jane Jackson, interview each of the three entrepreneurs. Jane has done a lot of work with entrepreneurs and—after a couple hours of discussion—usually can evaluate a person’s entrepreneurial qualities. In the past, Jane has recommended 87 people for loans, and only two of these ventures have failed. This success rate is much higher than that for commercial loans in general.

Following is Jane’s evaluation of the three people she interviewed.

Characteristic

Robin Wood

Richard Trumpe

Phil Hartack

Perseverance

H

M

M

Drive to achieve

M

H

M

Initiative

M

H

M

Persistent problem-solving

M

M

H

Tolerance for ambiguity

L

M

H

Integrity and reliability

H

M

H

Tolerance for failure

H

H

H

Creativity and innovativeness

M

H

M

Self-confidence

H

H

H

Independence

H

H

H

H = High; M = Medium; L = Low.

QUESTIONS

1.      Which of the three applicants do you think comes closest to having the mind-set of an ideal entrepreneur? Why?

2.      To which applicant would you recommend that the bank lend money? (Assume that each has asked for a loan of $150,000.) Defend your answer.

3.      Can these three entrepreneurs do anything to improve their entrepreneurial profile and their chances for success? Be specific in your answer.

Characteristic

Robin Wood

Richard Trumpe

Phil Hartack

Perseverance

H

M

M

Drive to achieve

M

H

M

Initiative

M

H

M

Persistent problem-solving

M

M

H

Tolerance for ambiguity

L

M

H

Integrity and reliability

H

M

H

Tolerance for failure

H

H

H

Creativity and innovativeness

M

H

M

Self-confidence

H

H

H

Independence

H

H

H

H = High; M = Medium; L = Low.

Explanation / Answer

Question1:

To begin with, let us first only highlight the major differences between the 3 candidates

Characteristic

Robin Wood

Richard Trumpe

Phil Hartack

Perseverance

H

M

M

Drive to achieve

M

H

M

Initiative

M

H

M

Persistent problem-solving

M

M

H

Tolerance for ambiguity

L

M

H

Integrity and reliability

H

M

H

Creativity and innovativeness

M

H

M

Based on the chart above we can see make the following inferences

Based on the 2 businesses, which may be in different industries may face similar situations, and thus can be compared to the following lines

Based on the facts, I would suggest that Phil Hartack is a better entrepreneur than all others

Characteristic

Robin Wood

Richard Trumpe

Phil Hartack

Perseverance

H

M

M

Drive to achieve

M

H

M

Initiative

M

H

M

Persistent problem-solving

M

M

H

Tolerance for ambiguity

L

M

H

Integrity and reliability

H

M

H

Creativity and innovativeness

M

H

M

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