Executive Summary
The sphere of entrepreneurship consists of a number of peculiarities and activities that have to be defined in time in order to avoid failures and mistakes. In this report, the basics of entrepreneurship will be evaluated from one particular sphere – the restaurant business, and, to be more exact, the activities of one Russian restaurateur, Arkady Novikov, will be taken into consideration.
With the help of this report, it is possible to make certain clarifications as for the different aspects of entrepreneurship and prove that such points like motivation, team management, decision-making process, and proper strategy formulations play a significant role in the development of business and its successful implementation into the world of business. In spite of numerous difficulties and challenges in the restaurant industry, it is still possible to define its main objectives and strive for their accomplishment within a short period of time.
Introduction
Nowadays, many people would like to be involved into the process of entrepreneurship in order to have a chance to earn money, to be recognized in society, and to make use of their skills and knowledge to develop the chosen sphere of business. Carsrud and Brannback (2007) admit that “entrepreneurship is important to economic wealth creation at the national and individual levels” (p. 6), this is why when people get involved into entrepreneurship, they have to be able to recognize the purposes of their activities and the benefits of the chosen steps. The impact of entrepreneurship into the economic sphere is considered as huge, for example, by means of “acting as a conduit through which knowledge created by incumbent firms’ spills over to agents who endogenously create new firms” (Acs et al. 2009, p. 17).
Among the variety of entrepreneurship types, it is possible to define the restaurant business due to its abilities to unite different spheres of human activities. After the evaluation of the current state of affairs, it is necessary to underline that the restaurant business is one of those where the idea of competitiveness and the desire to introduce the best services turn out to be the leading ones. In this report, the idea of entrepreneurship within the frames the restaurant business will be evaluated in order to clear up what the main steps to success in the chosen business are and what challenges may appear on business developers’ ways to this success.
With the help of the achievements of one of the most popular Russian restaurant business’ owners, Arkady Novikov, the concept of the restaurant business becomes clearer and more comprehensible: “Moscow’s massive inequality is a blessing for its high-end hostelries: there are plenty of rich Russians to patronise them and more than enough poor ones to make labour cheap” (The Economist 2006, p. 62). The process of restaurant entrepreneurship’s development is regarded as a complex activity with a variety of issues to be considered: individual learning, motivation, control, team management, etc are the areas that promote the development of the restaurant business and their owners’ activities.
Peculiarities and Objectives of the Project
One of the main objectives of this report is to prove that such aspects like properly chosen entrepreneurial behaviour, individual learning, decision-making process, employees’ motivation and control, self-employment, team management, and strategy formulations are integral for entrepreneurship. Based on the example of the restaurant industry and the activities of Arkady Novikov, the peculiarities of entrepreneurship may be defined properly taking into consideration every single detail. However, the above-mentioned objectives are not the only ones that have to be accomplished in this paper.
Such additional points like identification of personal traits, challenges owners and employers may face, and opportunity recognition also becomes influential for the development of the project. Under the current conditions of living, people have to deal with numerous difficulties; and the idea of entrepreneurship encourages to take serious actions and to evaluate the outcomes of the chosen activities beforehand.
To gain a better understanding of the peculiarities of the restaurant industry, online sources where the ways of restaurant business development are mentioned should be used. It helps to comprehend what precautions and ideas are the most effective for modern times. A number of theoretical literature like books and articles has been also used to define how theory has to be implied to practice and what expectations of such theoretical backgrounds are. For example, Davidson (2002) believes that entrepreneurship research is obligatory for those people who want to know the basics of entrepreneurship. This is why the evaluation of the educative literature is the significant point in this project as well as the interview with Arkady Novikov, a famous Russian restaurateur.
The development of the restaurant industry in such huge countries like Russia have been predetermined by numerous events such as USSR collapse, investments’ growth, and the necessity of Westernization. People were deprived of the opportunities to find enough money to start their own business and earn money, this is why they tried to make use of cheap labour-power; and one of the most successful examples was Arkady Novikov whose achievements and attempts made him popular and recognizable around the whole world. This is why such backgrounds for the restaurant business have to be admitted as the most influential ones.
The methodology of the Project
To present this report and achieve the purposes set, a number of steps have been taking in accordance with the necessary order. First, the evaluation of entrepreneurship and its basics have been made to clear up its essence and its main points. Second, the restaurant industry is chosen as one of the most successful examples of world entrepreneurship and analyzed from a variety of perspectives.
This step makes it possible to define the major aspects of entrepreneurship and the qualities that have to be inherent to people in order to become successful owners of the business. The example of the Russian restaurateur Arkady Novikov is regarded as the most appropriate one because he started his business at the beginning of the 1990s and during a long period of time, he proved that the chosen industry is able to succeed and bring benefits.
To make use of the data collected, it is very important to create time limitations and find out the necessary sources accordingly. For example, the necessity to interview the entrepreneur is burning because his ideas and suggestions make the entrepreneurship research easier and more effective: the main points of the restaurant industry are already defined. With the help of the interview, the basics of entrepreneurship business are defined: though Mr Novikov admits that he never relies on business plans and other strategic formulas, his activities and propositions always gain recognition and support.
The analysis of books helps to define the main theoretical frames of entrepreneurship business and the restaurant business in particular. Up-to-date sources introduce the backgrounds of the chosen industry and properly explain the ideas of how it is better to carry on the process.
In general, the process of data collection turns out to be successful and effective because basic information on entrepreneurship and its features are found as well as several sources about Arkady Novikov’s activities and the development of the restaurant industry in Russia are chosen.
Literature review
The main points to be taken in the report should constitute the holistic character of motivation, challenges, leadership skills, and, perhaps, a little bit of luck. Jack (2005) investigates the changes that took place in Russia during President Putin. In this respect, the core of Russian economic and political relationships, meaning Moscow, flourished with lots of fashionable and cutting edge apartments, restaurants, hotels and other facilities. All these gave stimuli to turning Moscow around. The case in question is that concerning Arkady Novikov, as was mentioned before, is glorious for his intensive capability of opening restaurants throughout Moscow. The researcher writes in the book that the main factors that influenced Novikov to create and further develop his restaurants were the primordial ambitions and creativeness in cooking. That was the focal idea that showed Arcady the way to follow in newly born Russia.
In The exploding restaurant scene – in Moscow (2006) the observers have made a fair remark that after the Soviet reality Moscow experienced a real Renaissance in restaurants. Moreover, this study has reported that Arkady Novikov is presumably the main figure in the pack of restaurants serving Italian, French, Asian, and many more dishes in more in over 60 upper-class and middle-class restaurants (The exploding restaurant scene – in Moscow, 2006).
The leadership and administerial ability of this person characterize the gist of entrepreneurship at large. Moreover, to be a successful restaurateur, as Novikov, means to adjust diversity of approaches to make a definite place attractive. It is seen, as Borden (2009) views it, in the capability of aesthetical as well as cultural tints incorporated in “Bolshoi Restaurant” (or just “Big”) near the famous Bolshoi Theatre.
Motivation and control which is seen on the example of Arkady Novikov were, probably, borrowed by him from some western entrepreneurs who had come to Russia and Moscow, in particular, after the fall of the USSR. In this respect, Hunter (2000) provides a successful story of George Cohon who opened the first McDonald’s in Moscow in 1990. Moreover, Novikov worked there for some time.
Achieving the potential of entrepreneurship, one should be able to face challenges with an initially worked plan of actions. Thereupon, Bolton & Thompson (2002, p. 1) admit that a “true entrepreneur is someone who does things that make a significant difference.” Observing their standpoints according to it, one should realize the same feature as concerned with Arkady Novikov. This person could navigate the growth of restaurant business by way of sequential implementation of a different vision. There is no single restaurant that could repeat some other one. According to the interview with Arkady Novikov, it is seen that his potential is largely based on opportunity recognition.
Harringon & Herzog (2007) provide a scope of arguments to prove that a real restaurateur is one sharing features of personal vision, leadership and sustainability. This is why the range of concerns going round for a real chef should be explicitly based on team management and development in communicating with staff and clients. A specific approach is considered to be referred to the Gastronomic Identity Model (Harringon & Herzog, 2007). Moreover, to add suchlike communication in a more extravagant, Novikov includes the aesthetical components reflection the atmosphere loosely related to the name of the restaurant. This feature demonstrates the way an entrepreneur should evaluate the current stage of progress along with further implications.
In this case, Harper (2006) infers that to make entrepreneurship different means to do it in an extra-ordinary way. The example of Arcady Novikov is reported to be similar a bit to that of Steve Schussler: “He recognized that a number of people wanted more than just a meal when they went to a restaurant – they wanted an experience” (Harper, 2006, p. 96). That is the attribute in market relations and management which shifted the restaurant business in Moscow in 1990s owing to Arkady Novikov. His strategy is largely grounded on going ahead in introducing a visitor to a spectacular and magnificent world of dreams and different association while having meals.
One should admit also the passion with which Novikov opened 2-3 restaurants each year. That is what characterizes him as an intuitive restaurateur. His position also proved to be successful as Novikov never took a glimpse at how thing were going on in different (dark) times for Russian economy. Von Gehr (2007, p. 3) interprets this claim based on position of New York restaurateur, Charlie Palmer: “Analysis cannot replace entrepreneurial intuition and passion.”
With more approaches to entrepreneurial behaviour possessed by Arcady Novikov, one sees the difference in what he succeeded and how it was possible for this entrepreneur. The question is that “the fundamental nature of entrepreneurship is acting on the basis of information and knowledge that not everyone else possesses” (Block, 2002, p. 726). Lahm (2007, p. 2) points that bootstrapping is, perhaps the optimal way in self-employment, self-sufficiency, and individualism to support successful and cutting edge “way of entrepreneurial life.” Thus, reviewing the professional way of Arcady Novikov, one agrees with the fact that he chose initially correct way for growing rich and successful.
Findings
The example of entrepreneurial manner demonstrated by Arkady Novikov in restaurant business provides a set of ideas on how to become a successful entrepreneur. Several studies reported about different algorithms for stepping forward toward new frontiers in entrepreneurship. However, less attention is grabbed to it by the majority of people. The pioneer in marketing cultural and aesthetical features prescribed in the interior and exterior parts of a restaurant, Novikov motivated the rest of entrepreneurs to shape this feature in Russia (Henry, 2007). Moreover, entrepreneurship in creative industries should not be adjusted to some clichés in maintaining business on the whole. It is a sort of creativeness united with personal inclinations to change the environment for better.
Stokes, Wilson and Mador (2009) admit that entrepreneurship in terms of developing markets is quite attractive in Russia and in Moscow, particularly. The fame laid on Novikov is that he could predict what people wanted at the time after the fall of the USSR. Here starts his genuinely distinct entrepreneurial activity. Calagione (2005) states that marketing environmental benefits, helps in expanding personal horizons and business. Thus, entrepreneurship is a dynamic sphere of relationships that need more efforts and creativity and dexterous feature of character.
Further still, the role of entrepreneurship grows when it turns out to be a sort of chain management. Networking business means expanding personal territory of influence. Hence, networks have their own practices in cultural and specifically delineated perspectives (Casson, 2006).
With this idea in mind, Novikov could not just stop increasing his administrative abilities outlined in opening new restaurants on a higher scale of influence. Entrepreneurship in food industries is thought of to be a basic need for the society (Lynn, 2009).
Thus, starting a restaurant, a person should be highly motivated to reach out the pivotal purposes despite facing different challenges on such a “triumphal march.” The thing is that most of the beginners in this field fail after the first year, for the lack of coordination and sufficient planning. Thereupon, Lynn (2009, p. 2) admits: “In fact, the more streamlined you can make it, the better your chances for success.” That is the way it looks today. However, it is still not so late to start a personal restaurant business guided by what the eminent restaurateurs admonish.
Discussion
Looking at the information reported in the literature review, one is about to feel responsible for realizing the features of being a restaurateur. The example of Arkady Novikov is in case, and this clarifies the holistic perspectives enlisted in the paper. The field of opportunities and challenges he faced invigorated him to pioneer new prospects on restaurants in Moscow. The whole evaluation of Novikov, as an entrepreneur, falls into the scope of approvals on the part of eminent researchers in the West.
The arguments are mainly based on concrete facts and assumptions prescribed. However, the continuation of the main idea in the literature review has faced a counter feedback in part grounded on the general entrepreneurial practice. On the other hand, some parallels were drawn up to constitute the practical consequences of rational approach in creative industries.
To say more, the similarities stated in both parts of the report are found at the juxtaposition as referred to the one-sidedness in main points. In other words, the findings outlined in part what has been discussed in the literature review part. The area of the main points discussed includes: decision making, opportunity recognition, team management, and strategy formulation. All in all, there is a distinct transition between the parts related to the personal features of an entrepreneur and entrepreneurship as such. The two parts correspond to each other in terms of the observation, on the one hand, and current inferences, on the other hand.
A complex vision of these parameters indicates the validity of the reported topic. As the culinary industry is in a constant vortex of change, thus, restaurant entrepreneurship should also be flexible to maintain such changes (Hamilton,Cornelio, & Papagni, 2009). Hence, the main points to be discussed have been taken into consideration.
What is more, the difference that is seen between two parts is in the way of challenging the main prospects. Thus, the reviewed literature fits specific topics and ideas that are off in the findings section. Moreover, the scored information in the findings shows more some notes (techniques) to be implemented. The overall discussion does not shake the initial gist of the project in order to complement the genius of being a successful entrepreneur at the very outset of business start-up. At this point there is a unification of what was discussed in both sections of the report. An observer should relate personal suggestions as for the ideas represented above solely in terms of practical improvements. It is so, as the restaurant business is considered to be growing currently. Thus, the further implications in reviewing current and previous studies should propose a global model for reaching success in entrepreneurship.
Conclusion
In the report, the analysis of the entrepreneurship business and its peculiarities has been presented. To narrow down the limits of the research, one particular sphere is chosen: the restaurant industry. The example demonstrated by Arkady Novikov that the restaurant industry might be improved in many different ways like chain management organization, motivation factors, and means of control.
Though sufficient planning is regarded as the crucial step, Arkady Novikov demonstrates that sometimes attempts to break the rules and take actions independently without thorough planning may become winning and rather effective. In order to start a restaurant business, a person has to respond to a number of characteristics and be enough motivated because numerous challenges may decrease the quality of actions and thoughts.
Restaurant business has a number of peculiarities that have to be considered in time. If the owner fails to meet one of the demands and requirements of the chosen project, there is still a possibility to improve the situation by means of changing another aspect of entrepreneurship. Organizational change and its proper management play a crucial role in any business, and the restaurant industry and the actions by Arkady Novikov in particular serve as a good example of how entrepreneurs may improve their work and achieve the purposes set.
Reference List
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