Chocolate café

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Chocolate café

Chocolate café sells hot and cold beverages plus light snacks. It is located near collages on the outskirts of the city since most of these collages do not have quality eateries thus Chocolate café was positioned there to cater for the needs of the students at an affordable price.

Entrepreneurship is concerned with opportunity identification, creating new businesses and testing new waters (Gupta, 2013). Having studied at a campus away from the city, the need for a good eatery at an affordable price was obvious thus the conception of Chocolate café. Many students will prefer to have a snack in between classes or something to drink either hot or cold so Chocolate café was established to sell tea, coffee, muffins, French fries and burgers.

Gupta ascertains that a business goes through a four stage framework before it matures.


At this stage, the business has no formal structure in place but struggles to gain its ground in its operations.


At this second stage, the entrepreneur gets additional capital for the expansion of the business and gets family members or people he knows to be partners and expand the business (Uhlaner, 2012). Oberhofer says that at this point the cash flow is to remain adequate to fund daily requirements such as repairs and replacements (Oberhofer, 2012).

At the third stage, the business starts earning profits with which the entrepreneur may decide to further invest in the enterprise. The employees at this stage develop and specialize in certain areas (Lechner, 2012)

Takeoff stage

At this point the business becomes more formal since the duties are well defined and delegated. It is after this stage that the enterprise gets to the resource maturity stage whereby it stresses on quality and financial control putting its name on the map because it is no longer a small enterprise (Gupta, 2013).

Gupta says that growth depends on the vision and motivation of the entrepreneur (Gupta, 2013). As much as the internal factors are constantly influenced by the external ones, the focus will be on the internal environment.

It is built on internal communication. As an entrepreneur it is important to have a culture of talking to the staff since they would feel appreciated and at the same time use the opportunity to have them know what you want for the business in the long term. When employees identify with the company’s mission and goals, you are more likely to keep them long-term (Gustianto, 2016).


The business could be sorted by departments and teams which imparts its daily operations. Chocolate café for example has people who deal with pastries, others who deal with the fast foods and others who work on the beverages. The structure then determines the number of employees in the business and the role each plays (Gustianto, 2016).

Financial capability

It refers to the availability, spending and management of funds. Since the market is competitive finances are used to improve productivity and quality of products to give the business an edge over the others (Gupta, 2013). Depending on the amount of money available, expansion is made possible, and also employees are well appreciated which in turn gives them the morale to work.

In conclusion, it is important to identify the stage at which the enterpise’s growth is at and what the influencing factors are which then facilitates or impedes the growth of the enterprise. At Chocolate café for example, however small it may be, identification of the growth possibilities given its location would eventually turn it into a household name by giving it an edge over other cafes.


Gustianto, F. (2016) . The Influence of Entrepreneur Characteristics and External Environment Toward Innovation And Impacts To Business Success Of Distro In Bandung City. Journal of Management and Collaboration, 3(4).

Gupta, P. D., Guha, S., & Krishnaswami, S. S. (2013). Firm growth and its determinants. Journal of Innovation and Entrepreneurship

Lechner, C., & Gudmundsson, S. V. (2012). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal,
32(1), 36–60.

Oberhofer, H. (2012). Firm growth European industry dynamics, and domestic business cycles. Scottish Journal of Political Economy,
59(3), 316–337.

Uhlaner, L., van Stel, A., Duplat, V., & Zhou, H. (2012). Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth. Small Business Economics,
41(3), 581–607.