The Challenges of Afrocentric Businesses in the Czech Republic

TABLE OF CONTENTS

Acknowledgements

Abstract

Chapter 1
1.1 Background
1.2 Aims
1.3 Objectives
1.4 Objectives and Research questions

Chapter 2
2.1 Literature Review
2.2 What is an Afrocentric business?
2.3 Theories
2.4 PESTLE Analysis
2.5 3RUWHU¶V )LYH )RUFHV 0RGHO .
2.6 0DVORZ¶V +LHUDUFK\ RI 1HHGV ..
2.7 SWOT Analysis
2.8 Previous Research
2.9 Literature Review Conclusion

Chapter 3
3.1 Methodology
3.2 Research Philosophy, Approach and Strategy
3.3 Required Information, Sources and Techniques
3.4 Methodology of Data Collection
3.5 Sampling Strategy
3.6 Data Analysis Method
3.7 Pilot Study
3.8 Ethical Considerations
3.9 Research Limitations

Chapter 4
4.1 Introduction
4.2 Method of Analysis
4.3 Findings Analysis
4.4 Findings and Analysis from questionnaires
4.5 Summary of Baba Salon interview
4.6 6XPPDU\ RI 0DUWKD¶V ,QVSLUDWLRQ +DLU %HDXW\ 6DORQ
4.7 PESTLE Analysis
4.8 3RUWHU¶V ILYH IRUFHV Analysis
4.9 0DVORZ¶V +LHUDUFK\ RI 1HHGV $QDO\VLV
4.10 SWOT Analysis

Chapter 5
5.1 Introduction
5.2 Conclusions
5.3 Limitations
5.4 Recommendations

Chapter 6
6.1 Self Reflection
6.2 Learning Process
6.3 Personal Achievement and Development
6.4 Reflection of Performance
6.5 Opportunities for future works
6.6 Evaluation of future works

References

Internet References

Bibliography

Appendices
Appendix A: Blank Questionnaires
Appendix B: Completed Questionnaires
Appendix C: Baba Salon Interview Transcripts
Appendix D: 0DUWKD¶V ,QVSLUDWLRQ EHDXW\ 6DORQ interview Transcripts
Appendix E: Czech Statistics Office documents

Acknowledgement

First, I would like to thank God for loving me even when I never measured up to His standards. My second thank you and acknowledgement goes out to my extraordinary family; my mother, my siblings, and my beautiful daughter, Aderinmola Fadeshara Adeniran. Thank you all for not giving up on my wandering spirit.

Special thank you to my tutors, Dr. Stefano Cavagnetto and Dave Gannon My final acknowledgement as always is also a tribute to my late father, David Kolawole Adeniran, the wisdom of your words amazes me daily, thank you.

Abstract

After living in Prague, the Czech Republic for over one year and missing the usual endless supply of African food and other goods that was the norm in both London and Dublin places where the Researcher had previously lived, the Researcher wondered why there is a dearth of similar opportunities in the Czech Republic. Another motivation for this research was the limited number of Afrocentric businesses in the Czech Republic. This scarcity in the country informed the 5HVHDUFKHU¶V search for the reasons behind this unusual occurrence.

The Researcher applied four established social science theories and tools to investigate the phenomenon of the dearth of Afrocentric businesses in the Czech Republic and why their rate of bankruptcy is higher than any other businesses in the country. The result of the research shows completely different reasons from what was the popular perception by both the Afrocentric businesses and their customers.

A very good example is the wrongly held notion that the Czech Republic has a different set of rules for trade permit registration for Afrocentric businesses in comparison to Czech owned businesses but the findings shows that the government regulations are the same for all aspiring business entrepreneurs.

The final conclusion of the Researcher is that many of the challenges facing Afrocentric businesses in the Czech Republic have multiple origins and all these origins were uncovered in this research project.

INDEX OF FIGURES

Figure 1 Objectives and Research questions table

Figure 2 PESTLE Diagram. Adapted from Marketing Minefield (2007)

Figure 3 PESTLE Analysis Adapted from Marketing Minefield (2007)

Figure 4 Porter's Five Forces: Adapted from Vector Study (2008)

Figure 5 0DVORZ¶V +LHUDUFK\ RI 1HHGV $GDSWHG IURP Griffin & Moorhead(2010)

Figure 6 SWOT Tables. Adapted from Learn Marketing (2011)

Figure 7 Difference sources of Research information.Adapted:Salkind

Figure 8 Strengths & Weaknesses of Secondary Research

Figure 9 Strengths & Weaknesses of Primary sources

Figure 10 Strengths and weaknesses of face-to-face interview

Figure 11 Strengths & Weaknesses of Questionnaires

Figure 12 Strengths & Weaknesses of Lit. Review

Figure 13 Strengths & Weaknesses of CSU Data

Figure 14 Semi-Structured interview sample size table

Figure 15 Customer's questionnaire sample size table

Figure 16 - 31 Survey Questionnaires graphs 71-

Figure 32 Annual Turnover Table

Figure 33 Scatter Diagram for Baba's Barbing Salon

Figure 34 Scatter Diagram for Martha's Inspiration & Beauty Salon

Figure 35Foreigners' population in the C.R.: Source: CZSO (2010)

Figure 36 The C.R. total tax revenue table: Source: CZSO (2010)

Figure 37 The C.R. Income/Expenditure table: Source: CZSO (2010)

Figure 38 Cultural dimension comparison table: Source: Geert Hofstede.com

Figure 39 Afrocentric businesses SWOT table

Figure 40 Afrocentric businesses SWOT conversion table

Figure 41 Afrocentric businesses strengths and weaknesses table

Figure 42 Diagram of experiential learning

Chapter 1

1.1 Background

The Czech Republic has undergone tremendous changes in the last decade. One of the major areas of changes in the country is the influx of new immigrants from not just the other European Union member countries but also from third country nationals. For instance the numbers of foreigners residing in the Czech Republic grew from 201,000 as at December 31 2000 to 435,000 as at December 31, 2009. (CZSO, 2010) (Figure 35, p. 99) this was a growth over 100% in just ten years. This research is focused on one of these new immigrant communities, the African immigrants whose population also grew dramatically between the dates above.

The interest of the Researcher in this research work is to find out the challenges faced by Africans owned businesses that are established to serve this particular immigrant community. The Researcher will focus on two African owned businesses DSWO\ ORFDWHG LQ WKH &]HFK 5HSXEOLF¶V FDSLWDO FLW\¶V FHQWUH. The research will try to establish not just the challenges faced by these pioneering businesses but also help to proffer suggestions on how these challenges can be overcome.

The two chosen representative African owned businesses serve different needs of the African community in Prague. The first one is an African barbing salon business which serves the grooming needs of the African male in Prague. The second business main business focus is providing African women beauty needs, and African food stuffs that are not available in the Czech Republic. The business also has a section devoted to African fashion which is very active in promoting African fashion through African fashion shows in the Czech Republic.

1.2 Aims

The aim of this research is to investigate and establish the major challenges involved in the establishment and operations of Afrocentric businesses in the Czech Republic.

1.3 Objectives

1. Investigate the business environment in which Afrocentric businesses in Prague operate: This objective will enable the Researcher to fully understand the challenges posed by the business environment under which these Afrocentric businesses operate. The Researcher will investigate the impact of the political climate on setting up and operating an Afrocentric business in the Czech Republic.

The Researcher will also investigate the economical environment effect as it affects competition. In what ways does the sociocultural and legal environment affect Afrocentric businesses? This research work will also include the establishment of the impact of technology on Afrocentric businesses and finally the environment impact of Afrocentric businesses on their immediate environment that is what environmental impact does the Afrocentric businesses have on their location? Is it a positive or negative impact? Or whether there is no impact at all.

2. Investigate the general environment: This objective will enable the Researcher to establish the general environmental factors that pose as challenges for the establishment and operation of Afrocentric business such as getting supplies, ease of entry and exit from the market.

What is the level of competition within the general environment? What is the level of suppliers¶ SRZHU in comparison to buyers¶ SRZHU? Are there substitute products or businesses for Afrocentric businesses in the Czech Republic? What is the level of competitive rivalry among the presently established Afrocentric businesses? How easily can new entrants access the market? These and many more general environmental questions will be investigated and answered at the end of this research project.

,QYHVWLJDWH WKH FXVWRPHUV ¶ PRWLYation and establish a customer profile of Afrocentric businesses: The Researcher intends to find out the motivation for the establishment of this unique business in Czech Republic. Is it a case of rising FXVWRPHU¶V GHPDQG SURILWDELOLW\ RU RWKHU IDFWRUV" 7KLV REMHFWLYH ZLOO DOVR HQDEOH WKH Researcher to establish the profile of an average customer.

4. Investigate the viability of Afrocentric business in the Czech Republic: This objective was set in order to enable the Researcher establish the level of viability of establishing and operating an Afrocentric business in the Czech Republic. This will enable the Researcher proffer suggestions to aspiring Afrocentric entrepreneurs.

1.4 Objectives and Research Questions

Abbildung in dieser Leseprobe nicht enthalten

Figure 1: Objectives and Research questions table

Chapter 2

2.1 Literature Review

The literature review of this research work is the theoretical framework on which the whole research work will be built upon. The literature review provide a peep into the work of past and present social scientists who has established theories that have been put to several academic and practical tests and found to be accurate in most circumstances. This literature review enabled the Researcher to have a theoretical backbone on which to erect the whole research work from start to finish.

2.2 What is an Afrocentric business?

Afrocentric businesses are simply businesses that are established and operated mainly to satisfy the needs and wants of people of the African origin. Afrocentric businesses are becoming more visible now in mainland Europe. but has been in existence for decades in the United States as part of the Afrocentric movement for black emancipation in the United States during the civil rights movement era in the 1960s when black leaders encourage African Americans to dress African, buy from African American businesses and even go as far as encouraging African Americans to name their children African names as a way of reconnecting with their roots.

In order to examine this interesting business model carefully and fully investigate all that is involved in it, the Researcher focused on specific academic theories which provided solid theoretical underpinning for the research work. These theoretical works is fully explained in the next section.

2.3 Theories

The main focus of the research work is the investigation of Afrocentric businesses in respect to the challenges of establishment, management and operation in a central European country that is the Czech Republic.

In order to investigate the establishment, operation and the management of the challenges of Afrocentric businesses in the Czech Republic and proffer suggestions and solutions for the growth of the nascent businesses, the Researcher approached the issue by applying established theories that will enable the Researcher meet the research aims and objectives. These established theories include:

1. PESTLE Analysis
2. 3RUWHU¶V )LYH )RUFHV 0RGHO
3. 0DVORZ¶V +LHUDUFK\ RI 1HHGV
4. SWOT Analysis

2.4 PESTLE ANALYSIS ± Business Environment

PESTLE analysis is an acronym for Political, Economical, Social, Technological, Legal, and Environmental factors in the business environment in which a business operates. In this research work, the Researcher applied this important business research tool in analysing and understanding the business environment under which Afrocentric businesses operate in the Czech Republic.

PESTLE analysis will also enable the Researcher to raise and investigate serious questions on the impact of legislation, political establishment, availability of technologies, social and cultural issues, and the effect of the economic environment in which these unique businesses operate.

Abbildung in dieser Leseprobe nicht enthalten

Figure 2: PESTLE Diagram. Adapted from Marketing Minefield (2007)

All managers whether they operate in a business, a government agency, a church, a

charitable foundation, or a university must, in varying degrees, take into account the elements and forces of their external environment (PESTLE). They must identify, evaluate, and react to forces outside the enterprise that may affect its operations. (Weihrich & Koontz, 1993 p. 58) To operate successfully in an economy, managers must recognise and understand the many differences in economic, political, and educational system. (Schermerhorn, Jr. 1993 p. 52) These factors are:

2.4.1 Political Factors

Politics is the art and science of government. The rapidly changing international political scene is evident for anyone who regularly reads, listens to, or watches the various new media. Political upheavals, revolutions, and changes in government policy occur daily and can have an enormous effect on business. As government change, opportunities for business may be lost or just as often, newly gained. This means constant adjustments to maximise new opportunities and minimise losses Jeannet, J-P. and Hennessey, D. H. (1995, p. 100) Jeannet and Hennessey (1995 p. 102) further postulates that government actions is for its own self interest. This self interest is often called national interest and they typically include:

Self-preservation: This is the primary goal of any entity, including states and government and the Czech Republic is no exception.

Security: To the extent possible, each entity seeks to maximize the opportunity for continued existence and to minimize threats from outside. The Czech government like every government around the world place the security of her citizens first, so if the government views Afrocentric businesses as a security risk to her citizens then it may put every measure in place to make their establishments or growth impossible. Prosperity:,PSURYHG OLYLQJ FRQGLWLRQV IRU WKH FRXQWU\¶V FLWL]HQV DUH DQ LPSRUWDQW DQG constant concern. The government of Czech Republic is entitled to continuously work to improve the prosperity of her citizens and will not consider it out of place to create obstacles to Afrocentric businesses if they considered them an impediment to these governmental aspirations.

Prestige: Most government or countries seek this either as an end in itself or to help reach other objectives. The establishment and continuous growth of Afrocentric EXVLQHVVHV ZLOO RQO\ EH DOORZHG WR VWULYH LI LW¶V LQ WDQGHP ZLWK WKH DVSLUDWLRQ RI &]HFK Republic.

Ideology: Governments frequently protect or promote an ideology in combination with other goals. The government of Czech Republic will only encourage the continuous growth of Afrocentric businesses only if it not in contrast to their ideology and goals for the country.

Cultural identity: *RYHUQPHQWV RIWHQ LQWHUYHQH WR SURWHFW WKHLU FRXQWU\¶V FXOWXUDO identity. One of the major concerns of governments around the world is how to protect and propagate their cultural identity in a changing and globalizing world. Afrocentric businesses are of a different culture and the government may either chose to support its growth or reject its propagation within their territory.

2.4.2 Economic Factors

An important input to the enterprise is the nature of government fiscal and tax policies. Although these are, strictly speaking, aspect of political environment, their economic impact on all enterprises is tremendous. (Weihrich and Koontz, 1993 p.60) For a business enterprise to succeed in any given environment there must be DGHTXDWH VRXUFH RI IXQG IRU ILQDQFLQJ WKH RUJDQLVDWLRQ¶V DFWLYLWLHV 7KH HFRQRP\ RI the location is not only the major requirement of the business but also the economies of the region, the continent may even be factor into the whole picture.

For Afrocentric businesses to succeed in this clime, it is important to make adequate investigation of the economies not just on a short term basis but on a long term basis to know the prospect of the economy in the future and marry that to the long term plans of the Afrocentric business. If there is a conflict in any way, the entrepreneurs of these Afrocentric businesses must take adequate steps to satisfy themselves of the viability of their businesses in such an economic environment.

2.4.3 Sociocultural Factors

The socioculural factors in any country should be of major concern to any potential investor in such system. Social factors according to Schermerhorn (1993 p. 55) are shared set of believes, values, and pattern of behaviour common to a group of people in a culture.

The level of influence of sociocultural factors on business varies depending on the country. The two focal respondent Afrocentric businesses in respect of this research work were established by West African migrants, the first is from Anglophone West African state of Ghana and the second one was also originally from another Anglophone West African country in his case Nigeria.

In order to understand the effect of this social and cultural difference in doing businesses in the Czech Republic, the Researcher applied the works of the famous Dutch social scientist Geert Hofstede who came up with what became known as the five dimensions of national culture. These dimensions of national culture are: Power distance: According to Cray, D. and Mallory, G. (1998 p. 50) powers distance µLV DQ LQGLFDWRU RI WKH H[WHQW WR ZKLFK D VRFLHW\ DFFHSWV WKH XQHTXDO GLVWULEXWLRQ RI SRZHU LQ RUJDQL]DWLRQV ¶

Uncertainty Avoidance: µ,QGLFDWHV WKH GHJUHH WR ZKLFK WKH PHPEHUV RI D FXOWXUH

WROHUDWH XQFHUWDLQW\ RU DPELJXLW\¶ &UD\ ' DQG 0DOORU\ 98 p. 50) this

dimension simply establishes that in some cultures people expect every details to be spelt out to them in order to avoid any unexpected situation arising as much as possible.

Masculinity/Aggressiveness: According to Cray, D. and Mallory, G. (1998 p. 50) this dimension indicates the extent to which the dominant values in a society reflect tendencies towards assertiveness, the acquisition of money and property, and not caring for others.

Individualism/Collectivism: Is the degree to which the culture emphasizes personal initiative and achievement rather than collective, group-centred concerns. Cray, D. and Mallory, G. (1998 p. 50) the research also evaluated the effect of the wide differences between the degree of personal initiative and achievement between Czech Republic, Nigeria and Ghana.

Long Term/Short Term Orientation: Cultures with thrift, industriousness and longterm planning are long term oriented, whereas living for the day, celebration, and FRQFHUQV OLNH µVDYLQJ IDFH¶ DUH PRUH LPSRUWDQW WR WKRVH IURP D FXOWXUH ZLWK VKRUW WHUP orientation according to Professor Geert Hofstede.

2.4.4 Technological factors

The term technology refers to the sum total of the knowledge we have of ways to do things. It includes inventions, techniques, and the vast store of organised knowledge from aerodynamics to zoology. But its main influence is on ways of doing things, on how we design, produce, distribute and sell goods as well as services. Weihrich, H. and Koontz H. (1993 p. 61) Technological impact on business according to Weihrich H. and Koontz H. (1993 p. 62) includes but not limited to:

i. Increased ability to master time and distance for movement of freight and passengers: Speed trains, automobiles, trucks and planes.
ii. Increased ability to generate, store, transport, and distribute goods and services.
iii. Mechanization or automation of physical processes.
iv. Increased understanding of group and individual behaviour and their treatment.
v. Increase use and application of internet for business transactions.

2.4.5 Legal factors

Another role of government is to constrain and regulate business. Every business is encircled by a web of laws, regulations, and court decisions ± not only on the national level but also on state and local level. (Weihrich, H. and Koontz, H. 1993, p. 65) The government of a country can use laws to protect certain aspect of their economy from stiff completion from foreign businesses that may be more advantageous than the local businesses.

2.4.6 Environmental factors

Environmental factors details the relationship of a society to its economic, technological and its physical environment. (Hawkins et al. 1989 p.48) Environmental factors as postulated by Hawkins et al. simply identify the delicate relationship between the society and its physical environments. Most society are now more concerned about the impact of business on their physical environment and have in recent times form power pressure groups to lobby government to enact laws to protect the environment.

Abbildung in dieser Leseprobe nicht enthalten

Figure 3: PESTLE Analysis Adapted from Marketing Minefield (2007)

2.4.7 Limitations of PESTLE Analysis

The limitation of PESTLE analysis as a tool for determining the business environment that Afrocentric businesses operates includes:

The unpredictability of many of the components factors such as political and economic environments which can change within a few minutes. This has a direct impact on Afrocentric businesses as evidenced by the increasing anger towards foreigners in the light of the present economic climate within the country.

Another limitation is the need to constantly perform the analysis as events unfolds such as a change in government, or natural disasters. The current government coalition in the Czech Republic is considered to be unstable and should this coalition collapse, the new government may change the rules which may adversely affect the smooth functioning of Afrocentric businesses in an increasingly immigrant sensitive Czech Republic.

Finally, the validity of source of the information used in PESTLE analysis can impact the outcome of the analysis either favourably or otherwise. The majority of the respondents surveyed have interest in the way Afrocentric businesses are portrayed so, their responses may be due to this hidden interest. The interviewed Afrocentric business owners may also be responding to questions in a manner which they may consider to be in their business best interest and also politically correct in order not to upset their host government.

However, for the purpose of this study, the Researcher applied other established theories to overcome the limitations of PESTLE analysis which informed the application of WKH 3URIHVVRU 0LFKDHO 3RUWHU¶V ILYH IRUFHV LQ FULWLFDOO\ LQYHVWLJDWLQJ WKH general environment as explained in the next section of this report.

2.5 3257(5¶6 ),9( )25&(6 02'(/ ± General environment

Michael E. Porter in his book, the competitive advantage of nations (1998 p.35) SRVWXODWHG WKDW µLQ DQ\ LQGXVWU\ ZKHWKHU LW LV GRPHVWLF RU LQWHUQDWLRQDO WKH QDWXUH RI FRPSHWLWLRQ LV HPERGLHG ILYH FRPSHWLWLYH IRUFHV¶ 0LFKDHO 3RUWHU IXUWKHU VWDWH WKDW the strength of the forces varies from industry to industry and determines long term industry profitability. In industry where all five forces are favourable many competitors earn attractive returns on invested capital.

The Researcher applied the five competitive forces theory as designed by Michael E. 3RUW EXW SRSXODUO\ UHIHUUHG WR DV WKH 3RUWHU¶V ILYH IRUFHV WR WKLV UHVHDUFK ZRUN LQ RUGHU WR DQDO\VH KRZ &]HFK 5HSXEOLF¶V FRPSHWLWLYH HQYLURQPHQW GHWHUPLQHV WKH LVVXHV with profitability or otherwise of Afrocentric businesses in the country. These five forces are:

i. The threat of new entrants
ii. The threat of substitute products or services
iii. The bargaining power of suppliers
iv. The bargaining power of buyers (customers)
v. The rivalry among the existing competitors

The threat of new entry : According to Aaker (1992 p. 94) the ease at which new entrants, identified or otherwise enter the market will be largely dependent on the size and nature of the barriers to entry. It is important then to study and understand potential competitors that may enter into the market

Abbildung in dieser Leseprobe nicht enthalten

Figure 4 3RUWHU¶V ILYH IRUFHV $GDSWHG IURP 9HFWRU VWXG\

The threat of substitution products or services: Substitute products are represented by those sets of competitors that are identified as competing with less intensity than primary competitors. They are still relevant, however, and can influence the profitability of the market and, in fact can be a major threat or problem. Aaker (1992 p. 95)

The bargaining power of suppliers: In situations where the supplier industry is

concentrated and sells to a variety of customers in diverse markets, it will have relative power that can be used to influence prices. This power will also be enhanced in situations where cost of switching suppliers is high. Aaker (1992 p. 96)

The bargaining power of buyers (customers): The buyers relatively have more bargaining power than sellers and in such situations can force down the price or GHPDQG PRUH VHUYLFH WKHUHE\ DIIHFWLQJ SURILWDELOLW\ 7KH FXVWRPHUV¶ SRZHU ZLOO EH JUHDWHU ZKHQ LWV SXUFKDVH VL]H LV D ODUJH SURSRUWLRQ RI WKH VHOOHU¶V EXVLQHVV ZKHQ alternative suppliers are available and when the customer can integrate backward and make part or the entire product themselves. Aaker (1992 p. 95)

The rivalry among the existing competitors: 7KLV ILQDO 3RUWHU¶V IRUFH DVVHVVHV WKH power of competitive rivalry among the existing players in the market. Aaker (1992 p. 93) postulates that the intensity of the competition from the existing competitors will depend on several factors. 7KH DSSOLFDWLRQ RI 3RUWHU¶V ILYH IRUFHV HQDEOHd the Researcher to achieve the second research objectives of investigating and establishing the general environment in which these Afrocentric businesses operates. The data collected also helped in answering the second objective questions.

2.5.1 /LPLWDWLRQV RI 3RUWHU¶V Five Forces

7KH OLPLWDWLRQV RI WKH 3RUWHU¶V ILYH IRUFHV PRGHO for service oriented organisations are:

3RUWHU¶V ILYH IRUFHV ZHUH RULJLQDOO\ GHVLJQHG IRU XVH ZLWK PDQXIDFWXULQJ LQGXVWULHV VR adapting it to use with a service organisations is very difficult. The two representative Afrocentric businesses are in the service sector. So, applying the model to the Afrocentric businesses will be a challenge.

7KH G\QDPLF QDWXUH RI WKH 3RUWHU¶V ILYH IRUFHV LV DOVR D OLPLWDWLRQ ,Q D G\QDPLF ZRUOG of today, it is difficult to have a fixed position on some of the factors. Afrocentric businesses clientele may be static but the environment they operate in is not and so WKH FKDOOHQJH LV DSSO\LQJ WKH G\QDPLVP RI 3RUWHU¶V five forces to a semi static situation.

)LQDOO\ WKH PRVW REYLRXV OLPLWDWLRQ RI WKH 3RUWHU¶V ILYH IRUFHV PRGHO in application to this particular research is the limited numbers of competitors in the Afrocentric business sector. %XW GHVSLWH DOO WKH DERYH QRWHG OLPLWDWLRQV WKH 3RUWHU¶V IRUFHV LV still a very useful tool in investigating the general environment as it provided the most comprehensive tool for measuring every facet of the general business environment as it concern Afrocentric businesses in the Czech Republic which is one of the objectives of this research as stated in the research questions and objective section. (Figure 1, p. 12)

7KH DVSHFW RI WKH LQYHVWLJDWLRQ WKDW WKH 3RUWHU¶V ILYH IRUFHV FRXOG QRW SURYLGH D WRRO WR investigate was the motivation behind Afrocentric business owners and their customers and this will be explored in the next section with the application of the 0DVORZ¶V KLHUDUFK\ RI QHHGV

2.6 0 $6/2:¶6 +,(5$5&+< 2) 1(('6 ± Customers¶ motivation

7KH 5HVHDUFKHU ZLOO XVH WKH 0DVORZ¶V KLHUDUFK\ RI QHHGV WKHRU\ WR SURILOH WKH Afrocentric business customers. The needs theory will enable the Researcher to first investigate what motivate the need for Afrocentric businesses in a central European country with limited relationship with people of African origin.

2.6.1 WHAT IS MOTIVATION?

µMotivation is the energising force that causes behaviour that satisfies a need.¶ (Berkowitz et al., 1989 p. 96) According to Okvisit and Shaw (1997 p. 251) motivation is a drive that is directed by a motive formed in relation to a particular

JRDO 'RQQHOO\ HW DO S RQ WKHLU SDUW GHILQH PRWLYDWLRQ DV WKH µDOO WKRVH

inner-striving conditions described as wishes, desires, drives, e.t.c... It is an inner VWDWH WKDW DFWLYDWHV RU PRYHV ¶

From the above definitions, it clear that motivation is part of every human satisfaction of his wants and desires. The Researcher established in this research work what the motivations are in establishing and operating of Afrocentric businesses in the Czech Republic as well as the motivation process that the Afrocentric business customers go through before they make their decisions on purchases.

The theory helped in answering the question of whether the product is a necessity or QRW DQG LI LW¶V D QHFHVVLW\ ZKDW OHYHO RI WKH QHHGV KLHUDUFK\ GRHV LW RFFXS\ in the hierarchy pyramid which include:

i. Physiological needs iv. Safety needs
ii. Social needs v. Esteem Needs
iii. Self-actualisation Needs

Abbildung in dieser Leseprobe nicht enthalten

Self-actualization Needs: 7KH ILIWK DQG ILQDO OHYHO RI 0DVORZ¶V KLHUDUFK\ RI QHHGV

according to Burstiner (1986, p. 193) are the needs that many never satisfy; this is the level of needs that can only be satisfied after a stage of self-fulfilment which cannot be truly satisfied. Donnelly et al., (1992 p. 313) on their part postulated that only individuals who fully realize their potentialities of talents and capabilities can actually claim to have satisfied these needs.

2.6.2 Limitations of 0DVORZ¶V +LHUDUFK\ RI 1HHGV

The needs of humans do not necessarily appear in the order Maslow has erected them, for instance, it is a widely known fact that some people will pursue the esteem needs even at the detriment of their physiological needs, while others will seek the love/belonging needs without any regard for their safety needs. This was clearly manifested in the amount of respondents that use the Afrocentric business as a social platform without using them to satisfy their physiological needs.

0DVORZ¶V KLHUDUFK\ RI QHHGV FDQQRW EH VFLHQWLILFDOO\ SURYHQ WR DSSO\ WR HYHU\RQH RU even a majority of people. It is at best a subjective and generalist stereotyping of human beings into certain particular group at the discretion of the researcher, which is the case in this particular research as the respondents are grouped based on their African heritage and not as individuals with different needs and wants.

%XW GHVSLWH DOO WKH QRWHG OLPLWDWLRQV RI 0DVORZ¶V KLHUDUFK\ RI QHHGV WKH PRGHO LV VWLOO the most appropriate tool for investigating the motivation behind the Afrocentric EXVLQHVVHV SKHQRPHQRQ DQG WKHLU FXVWRPHUV¶ PRWLYDtion too. The limitation was eliminated with the application of the SWOT analysis model in the next section of this report. The SWOT analysis looks at the whole environment more scientifically both internally and externally.

2.7 SWOT ANALYSIS ± Viability of Afrocentric business

The acronym, SWOT refers to a simple, effective technique a business can use to appraise in detail its internal strengths and weaknesses and external opportunities and threats. The goal of SWOT is to help an organisation identify the strategy related factors that can have a major effect on it. (Berkowitz et al., 1989 p. 36)

To properly investigate the viability and challenges of Afrocentric businesses, the Researcher applied the use of SWOT analysis to the business in achieving the first objective of this research work. SWOT analysis application to this research work enabled the Researcher to establish the strength of Afrocentric businesses, recognise its weaknesses and also identify the opportunities attached to it.

Abbildung in dieser Leseprobe nicht enthalten

Figure 6: SWOT Tables. Adapted from Learn Marketing (2011)

2.7.1 Limitations of SWOT Analysis

The subjective nature of the evaluation process is a major limitation of the model. There can be difference in opinions in regards to the strengths and weaknesses within a business organisation. This was clearly established in this research by the difference iQ WKH RSLQLRQV RI WKH $IURFHQWULF EXVLQHVVHV DQG WKDW RI WKHLU FXVWRPHUV¶ in respect of the strengths and the weaknesses of the business model.

The Afrocentric business owners biases on strengths of their businesses through overestimations of strengths and underestimations of weaknesses. This was evident the response of the two Afrocentric businesses owners who insisted on a rosy future for Afrocentric businesses in the Czech Republic without mentioning the many challenges.

There are many weaknesses that cannot be easily converted into strengths which generally become a limitation to the Afrocentric businesses. It is known that there are no foolproof investigating models but each of the business models and theories used in this research complement each other which enabled the Researcher to reach a credible and valid conclusion at the end of the research project.

2.8 Previous Research

Despite extensive library and internet search the Researcher was unable to locate any previous research on the challenges of Afrocentric businesses either in the Czech Republic or elsewhere. However there are related issues found here and there. A very good example is a research based book by Wayne Visser (2005) which raised a discussion on the issue of Afrocentric business in post apartheid South Africa. Visser (2005, p. 188) argues that there are three conflicts between Africa cultures and the North Western cultures that manifest in business as:

(a) Social Harmony and cohesion Vs Individual performance reward;
(b) Participative decision making Vs bureaucratic managerial authority; and
(c) Creative expression and motivation Vs rationality and quantitative argumentation.

Visser argues that the value underlying this conflict is the African culture which is overlooked by outsiders and until recently hardly acknowledged by the Africans themselves. This is the concept of ubuntu, or African Humanism. In South African culture, it is often known associated with the proverb: Umuntu ungumuntu ngabantu, ZKLFK VLPSO\ PHDQV ³$ SHUVRQ EHFRPHV KXPDQ WKURXJK RWKHU SHRSOH´ 9LVVHU p. 189)

Another research that bears some similarity to research topic is the research by Gyanu, Amos and Spiller, Achim which focuses on the organizational culture and relationship skills of exporters and importers in Ghana and Europe. The research was carried out at the University of Goettingen, Germany in 2007. The research was titled, the role of organizational culture in modelling buyer-seller relationship in the fresh fruit and vegetable trade between Ghana and Europe.

Gyau, A. and Spiller, A. (2007, p. 223) This research established the clear dissimilarities between the European buyers and the Ghanaian sellers, with over 50% of the surveyed respondents agreeing or strongly agreeing that cultural dissimilarity between them has an effect on their relationship.

2.8.1 Inadequacies and gaps

The Researcher notices a gap in the research of Visser Wayne which was principally focused on black South Africans perception on business after the end of apartheid. The research came up with very fundamental facts in respect of the conflict between African business perceptions as compared to their European counterparts but did not adequately address these conflicts. This research will seek not only to project the differences and challenges faced by Afrocentric business but will provide practical suggestions that could help in overcoming the identified challenges.

The second research by Gyau, A. and Spiller, A. was carried out with focus on a specific business sector in a specific part of the African that is Ghana just as Visser :D\QH¶V ERRN IRFXVHG RQ 6RXWK $IULFDQ DORQH 7KLV 5HVHDUFKHU ZLOO VHHN WR ILOO WKLV gap by providing a research project that investigates Afrocentric businesses not based on any particular country but as it concern Africans in general.

The Gyau and Spiller research simply focused on the effect of cultural dissimilarities. Though the research was not focused on any part of the European continent, it still did not fill the position which this research seeks to fill. This research will be looking at the challenges of African entrepreneurs, not on their own continent but in Europe and how they are able to manage these challenges which are new area of the researches into African entrepreneurship which no other researchers has ventured into up to this point.

2.8.2 The necessity of this research work

The inadequacies and gaps identified in the two previous research works mentioned above necessitated the need for further research in the areas of inadequacies identified. This research work will seek to identify the challenges faced by Afrocentric businesses not in Africa but in the Czech Republic. The first major inadequacy that is common to both aforementioned research works that this research work will fill is the lack of universal significance.

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businesses in South Africa after the fall of apartheid which limits its application to within the country with no universal significance. This research work will fill that particular gap by providing findings that will not only be significant to Africa or any particular country but will be significant to the world. The idea of Afrocentric business itself is universal by definition. African centred business entrepreneurship outside Africa and not a research into the differences between any particular racial groups within the continent itself.

The Gyau and Spiller (2007) research work which is even more recent mainly focused on the cultural dissimilarities between the two business approaches of Africans and Europeans as represented by the fresh crop produce sellers of Ghana and their European customers. This research work will not looking at the cultural dissimilarities but the Afrocentric businesses challenges and how these challenges can be overcome.

Finally, this research enabled the Researcher to fill the gap of lack of research work involving African business entrepreneurs in one of the new accession countries of central Europe.

2.9 Literature Review Conclusion

This literature review is the theoretical underpinning of this research. The Researcher focused on the various theorems and modifies them in order to be fit for purpose in the research into the challenges and issues that Afrocentric businesses face in the Czech Republic.

The Researcher applied SWOT analysis to this research work in order to meet the research objective and answer the research questions concerning the external environment in which the Afrocentric businesses operate. PESTLE analysis was introduced to the research project in order to achieve the research objectives and answer the research question in respect of the business environment that Afrocentric businesses operate in the Czech Republic.

TKH 3RUWHU¶V ILYH IRUFHV ZDV applied to investigate the impact of the general environment on the establishment and operations of Afrocentric businesses in the Czech RepXEOLF ZKLOH WKDW 0DVORZ¶V hierarchy of needs enabled the Researcher to establish the important role of motivation on the part of the Afrocentric businesses customers.

Finally, in order to achieve all the research objectives and answer all the questions. The literature review was not enough without the inclusion of other secondary and primary data in the course of this research project. The methodology chapter ahead fully explain the accomplishments of these varieties of data sources in its entirety.

Chapter 3

3.1 Methodology

In this chapter, the Researcher focused on the methods of implementing the research strategy in order to achieve all the set research objectives of this research work and answer all the research questions raised in the aims and objective section of this research work.

Chapter structure

1. Research philosophy, Approach and Strategy

2. Information, sources and techniques

3. Methodology of data collection

9 Primary Research Techniques

- Face-to-face interviews (Semi-structured interview)

- Questionnaires (online survey)

- Data Reliability/Validity

- Strengths and weaknesses of primary techniques

9 Secondary Research Techniques

- Literature Review

- Czech Statistics Office data

- Data Reliability/Validity

- Strengths and weaknesses of secondary research techniques

4. Contingency plans

- Primary techniques contingency plan

- Secondary techniques contingency plan

5. Sampling Strategy

- Sample Size

6. Type of proposed data analysis

7. Ethical Considerations

- Potential ethical issues

- Strategy to incorporate ethical policies

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