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1: Focus - Management Dilemma, Research Problem and Literature Review


Prof. CA Arnolds


06 June 2011


E.L. Von Hoffmann





WHAT IS THE MANAGEMENT DILEMMA THAT TRIGGERS THE RESEARCH? Within the South African restaurant sector of the hospitality industry. These challenges and pressures are faced by all restaurant sector businesses. are having to face complex combinations of organizational. deal and battle with an increasing diversity of challenges and pressures in order to run and maintain successful family business operations but these pressures tend to spill over into the personal relationship (Nicolas 2011:43) and can affect the work. 1986. hereafter referred to as copreneurs. can place added pressure on the longevity. This dilemma is making it increasingly difficult for copreneurial businesses to remain sustainable. SME’s in South Africa suffer failure rates of between 70 – 80% and that 80% of all emerging SME’s fail within their first five years of operation (Time is now right for entrepreneurs to start and run their own businesses 2006:8). life and relationship balance of copreneurship. develop further or even remain viable and avoid closure (Dyer. grow. Nicolas 2011). spousal business partners. relationship and emotional situations within their family businesses that bare consequences on the success of copreneurial businesses. WHAT IS THE RESEARCH PROBLEM THAT YOU ARE INVESTIGATING? The problem is that copreneurial businesses within the South African restaurant sector of the hospitality industry have an extremely high failure rate due to having to handle. family. Jr. sustainability and successful management of copreneurial SME’s in this sector of the hospitality industry (Nicolas 2011). . but coupled with the additional effects on metaphysical and emotional bonds of copreneurs.

Sanders & Nee 1996). specifically those affecting the emotional. . wealth redistribution and social stability (Kuratko & Hodgetts 2007:5. trust and spending more time with loved ones are attractive and can enhance a relationship for some couples. job creation.7). such as financial benefits. Helienek & Zafirova 2009:354. Stokes & Wilson 2006:11. for others it may be a recipe for disaster as it can strain relationships severely (Nicolas 2011:43. SME’s are holding and coordinating the majority of businesses (Scarborough & Zimmerer 2003:21. professional and relationship perspectives will be investigated further for an understanding of the elements that could influence the dependant variable so that success of the dependant variable becomes more viable. Fletcher et al 2009). Piliso 2006:1. flexibility. Although the experience and rewards of copreneurial businesses.The independent variables affecting copreneurial businesses. Internationally. private life. high levels of motivation. Time is now right for entrepreneurs to start and run their own businesses 2006:8) and in South Africa. willingness. adaptability. Fletcher. unemployment reduction and are a fundamental and predominant way of doing business(Erwin 2002. small and medium-sized enterprises (SME’s) are the main driving force and contributor to economic growth. WHY IS IT IMPORTANT TO INVESTGATE THIS PROBLEM? When reflecting on the international arena of business. contribute greatest to economic growth. sustainability. Quena 2007:32.

that influence their copreneurship and success. dynamics or rather independent variable. possibly none the wiser. life and relationship balance or managing thereof. a clearer understanding and insight into factors. . Hughes. and any other industry where copreneurs are or anticipate operating. Without further investigation and insight into the field of copreneurship. One such prime example of a negative effect is described by the EU Report 2008 where particular note is made of the sacrifices of personal interests and the negative effect that has copreneurs bringing in the importance again of the work. that affect the dependant variable. so that consistency of business operations and competitive advantage can be maintained and preserved. may be better informed of. Collins & Tucker (2010) revealed that copreneurial family businesses placed more focus on survival thinking in their business as opposed to strategic. or informed. Threats and risks. or rather strategic thinking. is required when a business is experiencing rapid change or flux. as presented by adverse or challenging times. This allows the business to achieve an understanding of the dynamism of the external environment and facilitates dynamic evaluation and response to counter threat impacts. may have negative effects on copreneurial operations. if not understood and managed. O'Regan.It is therefore important to investigate this problem so that copreneurs in the restaurant sector of the hospitality industry. thinking and action. copreneurs will continue to face the ongoing challenges and independent variables. The Author agrees with the argument of O'Regan et al (2010) that the opposite. that being the success of copreneurship. and have.

With these as some of the benefits of copreneurial business. Copreneurs. . pending their own circumstances and independent variables. Here reference is given to the very dynamic of copreneurship that differs from one spousal couple to another. as noted by Nicolas. success of longevity of their business. Examples of this are where one spouse is involved in a corporate career as well as being a copreneur with his spouse or when both spouses are purely involved in the copreneurship. relationships and lives (O'Regan et al 2010. One benefit of running a business as a married couple. but may be generic and applicable across a diverse variety of industries. also called dual careers. it is a good underpinning to justify the requirement for further research into this topic.The benefits of this investigation could be far reaching in the field of copreneurship as factors affecting copreneurship are not limited to the restaurant sector of the hospitality industry. may be able to take the findings from this research and apply practices within their own copreneurships to better aid their efforts and influence the sustainability. It is also noted form the literature reviewed that very little focus has been given to the attributes that spousal partner dynamics bring to copreneurship and this presents a clear gap in current research. is that both partners of many copreneurial businesses have the same aims both inside and outside work but work/life balance can be a double edged sword (Nicolas 2011:46). Fletcher et al 2009) Copreneurs share implicit trust as there’s no concern that who you’re working with is not aligned to your thinking (Nicolas 2011:46).

Jr. profit. Dyer. vision. The purpose of this study is therefore to attain a better understanding of the nature pertaining to the independent variables. market share. employment contribution. lifestyle and flexibility. shared values and bringing complimentary skills to the copreneurship. those being copreneurial and family relationships. 1986 further shared that the close relationship depended upon between copreneurs may be at risk due to variables such a tension that result from blurring of work and family responsibilities and roles and that family involvement may lead to poor business management and in turn impede successful factors.This research will foster and aid towards finding improved balance as indicated by Nicolas 2011 and Roper through clarifying roles. personnel satisfaction. that being the success of copreneurship in the restaurant sector of the hospitality industry. Here the author will look closer at aspects influencing and affecting copreneurship businesses such as financial turnover. community involvement or social upliftment. market needs addressing. work and life and their effect on the dependant variable. WHAT IS THE PRIMARY RESEARCH OBJECTIVE OR FOCUS OF THE STUDY? The primary research objective of this study is to improve the success of copreneurs in the restaurant sector of the hospitality industry. . engagement.

The author further hopes to make recommendations from the findings that might better aid copreneurs in their businesses thereby contributing to improved copreneur success. INDEPENDENT VARIABLES DEPENDANT VARIABLE RELATIONSHIP WORK LIFE Figure1 SUCCESS OF COPRENEURS . spousal and sibling available skills. spousal personal time and spousal friendship base and engagement. spousal dynamics. vision and role philosophy. QUESTIONS OR FOCI? The secondary research objectives of this study are to obtain and offer a better understanding of the independent variables and their effect on the dependant variable. Figure 1 below displays a representation of the independent and dependant variables. spousal values system. Here the author will look closer at aspects influencing and affecting independent variables such as sibling relationships and tangibility. It is important to the author to gain a well balanced understanding of these elements through personal interviews to collect sufficient data for analysis.WHAT ARE THE SECONDARY RESEARCH OBJECTIVES. spousal personal interests/hobbies.

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