GrowBox: the reality of growth challenges for a social entrepreneur in Cape Town

Abstract

Learning outcomes The learning outcomes of this paper is as follows: to strategically evaluate the strengths, weaknesses, threats and resulting opportunities that face an entrepreneurial startup. To apply the academic principle of competitiveness and evaluate the competitive advantage of the business and its competitors through the application of the Porter’s five forces model. To evaluate the contextual tensions that entrepreneurial ventures face, and how these affect the growth of a sustainable business. To develop the skills to create a target market analysis by using segmentation, targeting and positioning principles. To evaluate the best strategic actions to grow a business through the lens of sustainable entrepreneurship, by using principles such as the triple bottom line and people, opportunity, context and deal and framework. Case overview/synopsis The case look at business challenges faced by an entrepreneur, Renshia Manuel, the CEO of GrowBox, as she attempts to balance the profitability and social impact of her venture in Cape Town, South Africa. GrowBox sells customisable self-contained wooden boxes equipped with all materials to grow a variety of vegetables and herbs for consumers. Large volumes of boxes are often purchased by corporate clients who donated these to lower-income communities as part of their social responsibility projects. Additional landscaping and food-scaping services make up another revenue stream of the business. The case study documents the conception of GrowBox in 2016 and the growth of the business in the first four years of operation. The theft of equipment, and difficulty in recruiting and retaining staff due to the volatile social climate of where the business was situated, have put the business under great financial pressure and reduced the efficiency of business processes. The case highlights a number of the harsh realities of sustainable entrepreneurship where both profitability and social impact are vitally important to ensure business sustainability. The case dilemma involves the choices faced by Renshia at the beginning of 2020 regarding the future, sustainable growth of the business. Complexity academic level The target audience for this teaching case is primarily business students at a postgraduate level, particularly those studying in the fields of sustainable entrepreneurship and social development, as well as marketing in emerging markets. This teaching case is intended to be used as a case study in postgraduate business programmes such as postgraduate diplomas in management, specialist Masters programmes such as those focussed on entrepreneurship, social entrepreneurship or social development, as well as those studying a Master of Business Administration or related executive education programme. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.