Entrepreneurial journey of Rajat: from coffee to confidence

Learning outcomes The case was developed to explore principles of Effectuation, the traits, and external challenges faced by the entrepreneurs in small business. The main outcomes of this case are to: Compare and contrast the principles of effectuation, opportunity cost-based theory, and social capital theory, given the challenges faced by the protagonist.Critically analyze the risks associated with businesses and the factors that motivate entrepreneurs to take that risk.Critically evaluate which entrepreneurial traits were most crucial to Rajat’s journey, and contrast them with the traits highlighted in the literature on entrepreneurs in emerging markets.Create key strategic directions the Protagonist could explore after getting permission to start.Develop a business model canvas and a comprehensive business plan that would help the protagonist to pitch for his café. The business plan should include market analysis, financial planning, operations, and risk management. Case overview/synopsis The case explored the journey of a young entrepreneur and the challenges faced throughout his journey. Rajat started his career as an employee in a bakery and dreamt of having his own business one day. Initially, Rajat faced various challenges, which offered him a very good learning experience and shaped his entrepreneurial traits. Just before COVID-19, he was successful in opening his bakery near the University. The business failed miserably as the model was not effective during the lockdown period imposed due to the pandemic. He lost not only the money invested but also the trust of his close social network. He went back to his job and continued there for a significant period of time. He learnt more about the tricks of the trade and the market while in a job. It took nine years to gather the courage to venture once again into the uncertainty of an entrepreneurial journey. Never giving up, persistence, growth mindset, customer centricity, and pleasing personality were some of the traits that he had developed over a period of time. He looked forward to opening his café inside the University’s new campus. His proposal was initially declined by the University management when he approached them for the first time. This did not discourage him, and he continued to believe in his ability and instincts. He decided to approach the management once again to start his café in the new campus of Yeshwanthpur. This time, it was not a denial (at least he thought so), but also not a very clear yes. Rajat now found himself in a dilemma: should he approach the management once again, possibly with a stronger business plan, though this might again involve seeking financial help from his family? The other two options were to continue at his current job till he gets a better opportunity to shift, and the last option was to return to his hometown to help his father in the catering business, a less trendy but potentially stable one. Complexity academic level This case is intended for the students of Entrepreneurship and Strategy in undergraduate and postgraduate courses. This case demonstrated how persistence and self-motivation enable people to become successful entrepreneurs. The case could also be used for understanding entrepreneurship challenges and the traits of an entrepreneur. Supplementary material Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.