Partners in Crime:The Risk in Entrepreneurship

Abstract

This case study presents a unique case of spectacular growth and dramatic failure of entrepreneurial endeavour. Often the entrepreneurship is a group dynamics rather than a pure individual play. Each individual in the team is not sufficient to fructify a new venture formation alone. At the same time having an organic team from the beginning is difficult. The team formation process would have its own challenges; it would depend more on level of trust between the partners. However, trust can't be taken for granted in a formal organization setting, so there is need for adequate reporting and control mechanism. The entrepreneurial organization can't have byzantine reporting, control and audit procedure, and thus has to depend on the level of trust. Considering this aspect the entrepreneurial organization has to transform itself into a professionally managed organization, but the exact time and context can't be predetermined. If the transformation is not appropriate there is inherent risk to survival. During the start up phase promoters would have role overlap and unclear hierarchy, their actions and motives regarding wealth and power would determine the fate of new venture. This ethnographic research was the result of interview process of one of the promoters of the company. It is divided into two parts, the first part describes the events that unfolded during the entrepreneurship process and the second part describes teaching note with applicable theories.