In the life-cycle of the small creative firm, the first fruits of success are also the seeds of failure. Discuss By 1163956 Word count: 4043
INTRODUCTION The creative sector represents one of the most important areas of today’s global economy. Organizations of varying sizes are continuously seeking way to harness creativity in order to release potentials and unlock their competitive advantage. Creativity in this regard follows the idea of individual, group or firm innovation; which when tested against an external context proves to be useful and valuable for business development and growth. Therefore, creativity essentially leads to the production of “symbolic goods”. The purpose of this essay is to examine the life cycle of a small creative business. These small businesses are often linked to life-style in that they provide the owner(s) with some income and enable him or her to share the goals of such creativity with others. However, as research has shown, even these small creative businesses have to develop to a certain size in order to survive. It is that attempt to grow or develop that forms the core arguments of this paper. As a matter of fact, in trying to understand the “fruits of success” the lead to the “seeds of failure”, we are examining those things that characterize small creative businesses and enable them to grow. Many writers have attempted to use life cycle analogy to predict structural changes in a normative way and ignore the fact that small creative businesses are a function of the motive and inspiration of the owner at different stages of its growth. Susceptibility to change and response are more dependent on the performance of the business and not the age or stage of its development. There is a need to look at the development of the small creative business not only by reference to the style of the owner and its financial circumstances, but also the size, diversity, complexity, management and organization goals of the business. To further explore these various dimensions of small creative business, this essay examines the case of Simply Beautyful – a small fashion and couture business in Nigieria – to shows that the growth environment of business as well as the business management decisions of the owner is critical to its success. Ultimately, several theoretical arguments find resonance in the ability of the small business to sustain its operations while also building a solid management structure and producing a competitive product. The idea is to find a balance that satisfies the business priorities and its owner(s) creative aspirations, as well as ensure that effective and well-developed business parameters are not ignored. The life-cycle and development of small businesses is work in progress and some of the initial ideas and actions of its owner(s) may undermine the long-term business imperatives. At the same time these decisions could push its business opportunity, expand the profit potentials and build its competitive edge. In the end, the decisions and intervention by the owner(s) describe and form the life-cycle of the small creative business. Some life cycles are short while others are long and success is not merely a function of age but the agility and productivity of the business and its ability to remain competitive. SMALL BUSINESSES AND CREATIVITY Small businesses vary widely in size and capacity for growth. In trying to define a small business, Bolton’s (1971) qualitative definition suggest that they have to be (1) owned and managed by the same individual(s), (2) be legally independent and (3) have a small share of the marketplace. On the other hand, the European Union (EU) gives a more quantitative definition of small business pegging micro businesses at between 1 to 9 employees and small business with a threshold of between 10 to 49
employees. It also includes other elements such as turnover and assets. Overall, the increasing contribution of small businesses to the gross domestic...
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