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The Consequences of Entrepreneurial Outlook on Business Initiatives: The Case of Restaurant Operators

Moses Ahomka Y* and Alhaji A

Department Liberal Studies, Cape Coast Polytechnic, Cape Coast, Ghana

*Corresponding Author:
Moses Ahomka Y
Department Liberal Studies
Cape Coast Polytechnic, Ghana
Tel: +233-3321-33090
E-mail: [email protected]; [email protected]

Received Date: October 15, 2015; Accepted Date: January 12, 2016; Published Date: January 15, 2016

Citation: Ahomka MY, Alhaji A (2016) The Consequences of Entrepreneurial Outlook on Business Initiatives: The Case of Restaurant Operators. J Entrepren Organiz Manag 5:161. doi:10.4172/2169-026X.1000161

Copyright: © 2016 Ahomka MY, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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This study examined the linkages between entrepreurial outlook and business initiatives of restaurant operators. The five multidimensional constructs of entrepreneurial orientation were adapted to measure the entrepreneurial outlook, while the business initiatives were measured based on the frequent development of new products, new services and new business venturing.

The study employed census approach and self-administered questionnaires in collecting data from 41 registered restaurant operators located in the Cape Coast Metropolis. Descriptive, correlation and Chi-Square were the statistical tools used. The findings indicate that the restaurant operators demonstrated a somewhat high entrepreneurial outlook. However, they do not develop business initiatives regularly. Again, significant association existed between the dimensions of entrepreneurial outlook and business initiatives. The study therefore concludes that a high entrepreneurial inclination will propel the frequent development of business initiatives. The restaurant operators must therefore attend periodic workshops to be abreast of current knowledge, they must be involved with every aspect of the restaurant business with complete professionalism. They must create an encouraging work environment, care for customers and must get to know their regular customers by their names, favourite dishes and drinks.


Entrepreneurial outlook; Business initiative; Restaurant firms


Entrepreneurshipis key to an economy because all business ventures are started by individuals conversant with entrepreneurship. People exposed to entrepreneurship commonly submit that they have extra opportunity to use ingenious freedoms to create new products. These assertions imply that fostering a robust entrepreneurship culture will positively maximize individual and collective economics, social success on a local, national, and global scale. Kuratko [1], posits that entrepreneurship entails essential ingredients such as the willingness to take calculated risks, and formulate an effective venture team. Besides, it marshals needed resources, builds a solid business plan, and finally provides the vision to recognize opportunities where others see contradiction and confusion. Business owners or managers that want to engage in successful and effective business operations need to have an entrepreneurial orientation mindset. Dess and Lumpkin [2] define entrepreneurial orientation as a collectively five dimensions of entrepreneurial practices, namely innovativeness, pro-activeness, risktaking, competitive aggressiveness and autonomy that permeate the decision-making styles and practice of members of a firm. As increasing number of consumers want to dine out or take prepared food home, the number of food-service operations has skyrocketed, hence the need for restaurant operators to be entrepreneurially conscious. Restaurants have always played an essential role in the business, social, intellectual and artistic life of a thriving society. The majority of events of life, personal and professional, are celebrated in restaurants. Acquaintances become friends around a table in the safe and controlled environment of a restaurant. Individuals become lovers across a restaurant table. Restaurants are more important than ever and as such the restaurant industry across the world is evolving rapidly into providing a range of products and services. Andaleeb and Conway [3], intimate the restaurant industry is lucrative in size, fiercely competitive, and very important to the public palate.

In Ghana, the restaurant industry is growing fast due to the everincreasing new local and international restaurant outlets across the country, providing a variety of goods and services that are of immense benefit to the citizens and the economy. Local restaurants in Ghana commonly referred as “Chop bars”, help you get acquainted with local food. Here, a seat may be nothing more than a simple wooden stool, or a shared bench. The main traditional dishes sold include “kenkey” with pepper and fried fish, “banku”, with fried fish and pepper or with okro or groundnut soup, fried ripped plantain with bean stew. Others are “omo tuo” (cooked rice rolled into balls) served with palm or groundnut soup, fried yam with turkey tail with hot spicy pepper. In recent times, international chains have sprung up in Ghana; hence the menu is predominantly chicken and fried rice, burger, and pizza. Also, these international restaurants are housed in plush buildings or part of a hotel facility. International brands like Kentucky Fried Chicken (KFC) and Barcelos are operational in Ghana. Andaleeb and Conway [3], alluded that people, specifically women, are limited by time to plan and prepare food for their dependents, hence the high preference for food prepared at restaurants. In line with these changes in the Ghanaian demographicswith increased urbanization and more career women working outside the home, Ashitey [4], saw that the restaurant sector is expected to continue growing rapidly. Considering the booming natureof the hospitality industry in Ghana, which is inseparably interwoven with the restaurant sector, entrepreneurial outlook of restaurant operators is an imperative management principle, which is the objective of this study. The paper commences with a brief review of the literature that relates to entrepreneurial orientationand restaurant industry, followed by the research method used. The paper proceeds with a detailed analysis of demographic and business information of the restaurant operators and restaurant firms respectively. Also, the relationship between the entrepreneurial dimensions and business initiatives is analyzed. A set of tentative recommendations conclude the paper.

Literature Review

Entrepreneurial outlook

Entrepreneurs might not necessarily be the smartest people on earth, but certainly they are people with dreams, ideas and passion coupled with basic business planto get off the unemployment treadmill onto a way of life that offers independence. People with entrepreneurial outlook are generally described as persons who have an enterprise, venture or idea and assume significant accountability for the inherent risks and the outcome of these ventures. Again, having entrepreneurial outlook means looking at the world a bit differently. It is an attitude and an approach to thinking that actively seeks out change, rather than waiting to adapt to change. It is a mindset that embraces critical questioning, innovation, service and continuous improvement. McGrath RG and MacMillan IC [5], show that strategists/firms should adopt an entrepreneurial mindset to sense opportunities mobilize resources and exploit opportunities. Also, Senges [6], submits that an entrepreneurial mindset describes the innovative and energetic pursuit of opportunities and it facilitates action aimed at exploiting these opportunities. Entrepreneurial firms tend to have a more innovative approach to thinking about their products or service, new directions to take the company in, or new ways of doing old tasks. To have an entrepreneurial outlook in an organization, employees must think that anything is possible and have tenacity to accomplish it. Moreover, all employees regardless of their status have a voice that needs to be nurtured, not criticized, in order to continue bringing innovative ideas forward. The entrepreneurial spirit of a firm gets more challenging as firms grow and mature because of the tendency to gravitate towards more complacency, increased hierarchy and entrenched bureaucratic procedures. This causes companies to become more risk-adverse and protective of the business establishment. Owners or managers of such big companies feel they have more to lose than when they started out. But it is imperative that employers and employees keep their entrepreneurial spirit alive as the organization grows.

Entrepreneurial orientation

The extent to which a firm is entrepreneurial is commonly referred to as its entrepreneurial orientation. Miller [7], pioneered the definition of entrepreneurial orientation which was developed further by Covin and Slevin [8] and many other researchers, notably [9]. The widely accepted dimensions of entrepreneurial orientation are innovativeness, proactiveness, risk-taking, competitive aggressiveness and autonomy. The following paragraphs briefly discuss each of these dimensions.

Innovation is generally defined as incremental and revolutionary changes in thinking, processes, products or organizations. Today, innovation and entrepreneurship have changed. The empirical reality is they are not all systematic and manifested the same in an international market as concluded by Drucker [10], there are varied ways of practicing those concepts around the world. For instance, the US and China have incubators with divergent methods of breeding innovation and entrepreneurship.

Proactiveness described the distinctiveness of business managers to anticipate future opportunities, both in terms of products or technologies, markets and consumer demand [11,12]. Define proactiveness as firm’s response to market opportunities and this implies opportunity-seeking perspective, introducing new product and services ahead in order to increase the competitive positioning in relation to other firms. Risk-taking is making decisions and taking actions without certain knowledge of probable outcomes. Risk has various interpretations and different meanings depending on the contexts in which the conception is used. Risk-taking can be studied through the lenses of preference or aversion, perception, propensity and behavior [13]. Additionally [14], considered risk-taking as the capacity of the entrepreneur to perceive risk at its inception and to find avenues to mitigate transfer or share the risk. Non-entrepreneurs and entrepreneurs differ in taking the risk where the later take more. Lumpkin and Dess [9], put forward autonomy and competitive aggressiveness as two additional dimensions. They define autonomy as independent action undertaken by entrepreneurial leaders or teams in bringing forth an idea or a vision and carrying it through to completion. Competitive aggressiveness is the intense effort to outperform industry rivals. It is characterized by a combative posture or an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace. These five dimensions of entrepreneurial orientation show high inter correlation with one another ranging from r=0.39 to r=0.75 [15,16]. But, the dimensionality of entrepreneurial orientation is exposed to divergent agreement. Some scholars considered the entrepreneurial construct as unidimensional concept and this consequently influence business performance in the same ways [8,17]. In recent time, scholars suggest the dimensions of entrepreneurial orientation are multi-dimensional and as such impact performance differently [12,18]. Regardless of the preceding disagreement among scholars, entrepreneurial orientation is often mentioned as an antecedent of business growth, competitive advantage and superior performance. Prior empirical studies have repeatedly shown a positive influence of entrepreneurial orientation on business performance. The paragraphs that follow will discuss the restaurant industry from the global and Ghanaian perspectives. Discussed below is history of the restaurant industry cited from the internet blog of Lorri Mealey [19], a Restauranting Expert.

Restaurant industry 02

A restaurant is a place people visit to eat, drink and socialize with other people. Every country in the world can boast of restaurants which are operated along the cultural orientation of that country. The origin of restaurant operation can be credited to the French Revolution. This happened toward the end of the eighteenth century. The French still play a major role in the restaurant’s development. The first restaurant proprietor is believed to have been one A. Boulanger, a soup vendor, who opened his business in Paris in 1765. The business motive of selling food for profit has existed during the earliest civilization. The earliest forms of restaurants were the roadside inns located in the middle of the countryside. Inns served meals at a common table to travelers and also served as central social place that brought people together. Notable European countries had a stint with the revolution of restaurant operation in the Middle Ages. In Germany and Austria, alsace brauwin and weisteben were served while, bodegas-serving tapas was the popular meal in Spain. The British preferred sausage and shepherd’s pie and the French opted for stews and soups. The major breakthrough in the restaurant industry during the 20th century is attributed to McDonalds. The McDonald brothers operated their restaurant business prudently by offering food efficiently and inexpensively, but had a setback in franchising. Ray Kroc, a restaurant equipment salesman, bought the McDonald brothers out in 1954 and pioneered an apt formula for franchising, therefore, changing the landscape of dining in America and the world at large. The restaurant industry has metamorphosed over the years. Beyond the basic purpose to provide food and drink, restaurants today play a vital component in the business, social, intellectual and artistic life of a striving society. For example, millions of people are employed either to wait on tables, cook, or wash dishes for their livelihood. Experts in the restaurant sector stress that urbanization; digitization and globalization are the three dynamic and interactive forces reshaping the restaurant industry. In recent times, restaurant operators must be customer focused in order to stay in business in that people are very conscious of health and nutrition, and so carefully select what foods they patronize at restaurants.

The Restaurant industry in Ghana

Ghanaians are recognized for their warm hospitality. However, this is not reflected in the current hospitality industry. Holmes [20], asserts that vast majority of hotels and restaurants fail to offer quality of services needed to promote the sector. This could be due to the absence of adequate technical and vocational institutions mandated to train and instill technical skills in employees of the industry, hence the general lack of international service standards. At present, restaurant operators are trying to mitigate the challenge by conducting in-house training, which is obviously not working by the evidence of the prevailing standards. The option of importing expatriates is very expensive and unsustainable. Currently, the African Institute of Hospitality (AIH) is the only institution in Ghana that deals exclusively with vocational training in the hospitality sector. The underperformance of the restaurant sector could be attributed to the repeal of legislation titled LI 1817. Prior to the repeal of the LI 1817, the said LI empowered the Ghana investment promotion centre (GIPC) to grant incentives in the form of tax exemptions to operators in the hotel and hospitality industry. Such operators enjoyed tax exemptions on imported materials such as refrigerators, air conditioners, carpets, kitchen equipment, one vehicle among others, required for their establishment and smooth operations. Unfortunately, some beneficiaries abused the facility and used it to import luxury cars, furniture and other goods which they sold on the open market and avoided tax payment on them. This attitude necessitated the repeal of the LI 1817. Regrettably, reliable data on how much contribution the restaurant sector makes to the economic development of Ghana is not available. This could be partly due to the fact that the majority of these restaurant firms are in the informal sector. So, economic statistics on this sector is added jointly to the hospitality industry. The Ghana Statistical Service reported that hotels and restaurants accounted for 4.3% and 3, 877 million Ghana cedis contribution to the gross domestic product (GDP) of Ghana in 2013. In all, the service sector recorded the highest contribution of 49.5% to the GDP of Ghana in 2013 [21].

Business initiatives in the restaurant industry

Every business entity is established to achieve a purpose. Undoubtedly, the ultimate goal of every business organisation is to satisfy its clients at a profit. A business initiative explains how a business minded individual is able to turn ideas into fruitful action. One must have the urge to perform and reach the set goals. Initiative is very essential to run a business. Success in a business venture can be achieved if all employees show much initiative in performing well. In the domain of entrepreneurship discourse, the outcomes of business initiatives are product, service or process innovations and new market segments. Morris and Sexton [22], assert that entrepreneurial firms are capable of multiple entrepreneurial initiatives over time. This implies that a single initiative does not constitute a high entrepreneurial outlook. In line with this argument [23], considered firms frequently developing new products, new business ventures and additional services as very entrepreneurially oriented. Conversely put, some firms may have a greater tendency to behave entrepreneurially than others [24].

Building a customer base for a restaurant is more complicated than simply cooking meals. The main activities of a restaurant business are cooking and serving it to the public. In recent times, most restaurants have added additional services such as organizing events, playing live music and providing entertainment facilities. For the purpose of this study, the business initiatives of the restaurant operators are the frequency of new products [meals and drinks], services [working hours, live music and entertaining facilities] and business venture [new outlets].

Research Methodology

The study involved restaurant firms located in the Cape Coast Metropolis. Cape Coast is the capital town of the Central Region of Ghana and is situated on the south to the Gulf of Guinea. The list as well as the location of registered restaurant firms in the Cape Coast Metropolis was obtained from the Cape Coast Metropolitan Assembly. The number of restaurant firms was 46, located unevenly at the various suburbs. All the 46 restaurant firms formed part of the study, hence a census approach was used. However, 41 responded positively representing 89.13% response rate. The entrepreneurial outlook was measured using the five multidimensional constructs of entrepreneurial orientation [innovativeness, proactiveness, risk-taking, autonomy and competitive aggressiveness] propounded by Dess and Lumpkin [9]. The Entrepreneurial Orientation Questionnaire (EOQ) developed by Covin and Slevin [25], was adapted to develop the questionnaire. The original items were fine-tuned to suit the restaurant sector as well as new items were added to exhaustively cover all the five dimensions. Information from extant literature enabled the development of the new items. The business initiative variables [new products, new services and new business ventures] were measured using an adapted version of the Entrepreneurial Performance Instrument (EPI) questionnaire developed by Morris and Sexton [22].The restaurant operators were asked to rank the degree of the business initiative improvements over the immediate past three years. Both the entrepreneurial outlook and business initiative variables were measured on a 5-point Likert scale with 1 being ‘strongly disagree’ and 5 being ‘strongly agree’. Data was analysed using the Statistical Product and Service Solutions (SPSS 20.0 version). The entrepreneurial outlook and business initiatives of restaurant operators are depicted using the mean, standard deviation and coefficient of variation statistics. Moreover, chi-square was employed to test the two hypotheses. Correlation analysis was employed to describe the associations between the various dimensions of entrepreneurial outlook and business initiatives. The reliability of the various dimensions is depicted in Table 1.

Dimensions Number of items Cronbach’s Alpha
Entrepreneurial Orientation    
Innovativeness 6 0.778
Proactiveness 6 0.815
Risk-taking 4 0.789
Autonomy 6 0.788
Competitiveness aggressiveness 5 0.880
Business Initiatives    
Product 2 0.865
Service 3 0.891
Business venture 2 0.865

Table 1: Cronbach’s alpha coefficients.

The results in Table 1 show that each dimension of entrepreneurial orientation and business initiatives recorded a Cronbach’s alpha greater than 0.7. According to Fraenkel and Wallen this implies that all the constructs were reliable and could be used in this study


This section describes the demographic and business profile of the restaurant operators and firm correspondingly. Next is descriptive statistics of the entrepreneurial outlook and business initiative dimensions. The two hypotheses are tested. It concludes by examining the associations between these dimensions.

Demographic profile of restaurant operators

Findings show that the majority of the restaurant operators were females with 76.2% while their male counterparts were 23.8%. The respondents’ ages ranged from 20 to 44. The greater part was in the 35 to 40 age group and accounted for 44%. A majority representing 42.9% had Commercial/Vocational/Technical education, while 28.6% and 16.7% had Bachelor’s Degree and post graduate education respectively. Another 7.1% had post secondary diploma and 4.8% had senior high school education. This implies that all the restaurant operators had at least senior high school education. Moreover, 61.9% of the respondents had not worked in a previous restaurant firm but, 38.1% were previously engaged by a restaurant firm.

Business profile of restaurant firms

The majority (64.3%) of the restaurant operators doubles as owners and managers. 21.4% and 14.3% were managers and owners respectively. Besides, 61.9% of the restaurant firms had existed at least 6 years; 38.1% had operated not more than 5 years. With regard to how the restaurant firm started, 52.4% established the business from that start, 31.0% inherited and 16.7% purchased it from another person. Sole proprietorship is the highest (66.7%) form of business ownership followed by partnership with 19.7%. Company form recorded 13.7%. The majority (83.3%) of the restaurants operators sell both Ghanaian and foreign dishes, and 16.7% sell Ghanaian meals only.

Entrepreneurial outlook and business initiatives of restaurant operators

This section uses the mean, standard deviation and coefficient of variation to describe the entrepreneurial inclination and business initiatives of the restaurant operators. A mean score of 1-2.9 and 3-5 depicted low and high entrepreneurial outlook respectively. Table 2 illustrated the Entrepreneurial Outlook and Business Initiatives of the Restaurant Operators.

Entrepreneurial outlook

The findings as shown in Table 2 indicate that the restaurant operators have high entrepreneurial outlook with the mean score of 3.11. Specifically, autonomy recorded the highest followed by proactiveness. But, risk-taking, innovativeness and competitive aggressiveness recorded low entrepreneurial outlook. This outcome implies the restaurant operators crave for absolute control over their business. This desire is confirmed by 64.3% of them operating as owners and managers at the same time. Also, 66.7% preferred sole proprietorship form of business ownership. The high score in proactiveness could mean the restaurant operators take the initiative to provide new food, experiences to customers ahead of their competitors. Nonetheless, the general impression is that the restaurant operators are risk averse in being the first to be innovative and aggressively competitive.

Dimension Mean Standard deviation Coefficient of variation
Entrepreneurial Orientation 3.11 1.11 1.19
Innovativeness 2.67 1.22 1.51
Proactiveness 3.54 0.94 0.98
Risk-taking 2.84 1.11 1.25
Autonomy 3.70 0.96 0.92
Competitiveness aggressiveness 2.78 1.12 1.28
Business Initiatives 3.03 1.14 1.03
Product 3.73 1.06 0.30
Service 2.87 1.18 1.40
Business venture 2.50 1.17 1.17

Table 2: Entrepreneurial outlook and business initiatives of restaurant operators.

Business initiative

The overall propensity of business initiatives engaged by the restaurant operators was high (mean score of 3.03, Table 2). Specifically, new product development scored high. But, the development of new services and new business ventures recorded low mean score. This suggests the restaurant operators seldom introduce novel services or expand their operation by establishing new outlets. The reason could be that most restaurant operators have limited resources and also due to the small geographical space inhabiting the Cape Coast Metropolis. It does not make business sense to create more outlets. The Metropolis covers an area of 122 square kilometres and is the smallest metropolis in Ghana.

Relationship between restaurant establishment modes and entrepreneurial outlook

H0: Mode of establishing a restaurant firm has no significant effect on entrepreneurial outlook of the restaurant operators.

This part considers whether the mode of establishing the restaurant firm can influence the entrepreneurial outlook of the restaurant operators. The mode of establishment were categorized into three; started by myself, inherited and purchased. The Chi-square was used to examine the relationship. The results are presented in Table 3 at the appendix. The Pearson Chi-Square recorded x (1)=10.167, p=0.253. This shows that there is no statistically significant association between the establishment mode of a restaurant and entrepreneurial outlook. Hence, the study failed to reject the null hypothesis. The inference is that restaurant operators can be entrepreneurially minded regardless of how that restaurant firm was established.

  Products Services New business Venture
  R P R P R P
Innovativeness 0.699** 0.000 0.821** 0.000 0.632** 0.000
Proactiveness 0.848** 0.000 0.553** 0.000 0.731** 0.000
Risk-taking 0.823** 0.000 0.539** 0.000 0.895** 0.000
Autonomy 0.390* 0.011 0.288 0.064 0.755** 0.000
Competitive Aggressiveness 0.825** 0.000 0.539** 0.000 0.864** 0.000

Table 3: Relationship between the dimensions of entrepreneurial outlook.

Relationship between gender and business initiatives

H0: Gender will have no significant effect on business initiatives.

This sought to find out whether the gender of the restaurant operator has any connection with how frequent the restaurant operators churn out business initiative. The Chi-square was used to achieve this objective. The findings are captured in Table 4 at the appendix. The association between gender of the restaurant operator and business initiatives recorded a Pearson Chi-Square of 2.6479 and a corresponding p value of 0.266. Therefore, the study failed to reject the null hypothesis. The conclusion is that the propensity of restaurant operators to develop business initiatives is not gender specific. Hence, both male and female restaurant operators can increase their scope of business initiatives.

Chi-Square Tests
  Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 10.167a 8 0.253
Likelihood Ratio 11.296 8 0.185
Linear-by-Linear Association 0.003 1 0.960
No of Valid Cases 42    

a. 14 cells (93.3%) have expected count less than 5. The minimum expected count is 0.50.

Symmetric Measures
    Value Approx. Sig.
Nominal by Nominal Phi 0.492 0.253
Cramer's V 0.348 0.253
N of Valid Cases 42  
Business establishment mode * Preferred entrepreneurial dimension Cross tabulation
      Preferred entrepreneurial dimension
      innovativeness proactiveness risk-taking autonomy competitive aggressiveness Total
Business establishment mode Started by myself Count 6 3 0 9 4 22
% within Business establishment mode 27.3% 13.6% 0% 40.9% 18.2% 100.0%
% within Preferred entrepreneurial dimension 66.7% 33.3% 0% 64.3% 57.1% 52.4%
% of Total 14.3% 7.1% 0% 21.4% 9.5% 52.4%
Inherited Count 3 4 1 3 2 13
% within Business establishment mode 23.1% 30.8% 7.7% 23.1% 15.4% 100.0%
% within Preferred entrepreneurial dimension 33.3% 44.4% 33.3% 21.4% 28.6% 31.0%
% of Total 7.1% 9.5% 2.4% 7.1% 4.8% 31.0%
purchased from another person Count 0 2 2 2 1 7
% within Business establishment mode 0.0% 28.6% 28.6% 28.6% 14.3% 100.0%
% within Preferred entrepreneurial dimension 0.0% 22.2% 66.7% 14.3% 14.3% 16.7%
% of Total 0.0% 4.8% 4.8% 4.8% 2.4% 16.7%
Total Count 9 9 3 14 7 42
% within Business establishment mode 21.4% 21.4% 7.1% 33.3% 16.7% 100.0%
% within Prefered entrepreneurial dimension 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
% of Total 21.4% 21.4% 7.1% 33.3% 16.7% 100.0%

Table 4: Relationship between restaurant establishment mode and entrepreneurial outlook.

The results in Table 5 reveal that all the five dimensions of entrepreneurial outlook associated significantly with new products and new business ventures. Autonomy had less significant relationship with new services. This outcome implies that the restaurant operators will come out with frequent business initiatives if their entrepreneurial outlook is high. In other words, an entrepreneurial inclination will enable the restaurant operators to habitually develop new products, new services and establish more restaurant outlets.

Gender * Frequent business initiative Crosstabulation
      Frequent business initiative
      products services business ventures Total
Gender Gender Count 3 5 2 10
% within Gender 30.0% 50.0% 20.0% 100.0%
% within Frequent business initiative 13.6% 35.7% 33.3% 23.8%
% of Total 7.1% 11.9% 4.8% 23.8%
Female Count 19 9 4 32
% within Gender 59.4% 28.1% 12.5% 100.0%
% within Frequent business initiative 86.4% 64.3% 66.7% 76.2%
% of Total 45.2% 21.4% 9.5% 76.2%
Total Count 22 14 6 42
% within Gender 52.4% 33.3% 14.3% 100.0%
% within Frequent business initiative 100.0% 100.0% 100.0% 100.0%
% of Total 52.4% 33.3% 14.3% 100.0%
Chi-Square Tests
  Value df Asymp. Sig. (2-sided)
 Pearson Chi-Square 2.649a 2 0.266
Likelihood Ratio 2.693 2 0.260
Linear-by-Linear Association 1.939 1 0.164
N of Valid Cases 42    

a. 3 cells (50.0%) have expected count less than 5. The minimum expected count is 1.43.

Symmetric Measures
    Value Approx. Sig.
Nominal by Nominal Phi 0.251 0.266
Cramer's V 0.251 0.266
N of Valid Cases 42  

Table 5: Relationship between gender of restaurant operators.


The results indicated the restaurant firms in the Cape Coast Metropolis were largely by females and the common age group was 20 to 44 years. Most of them had Commercial/Vocational/Technical education. A good number of restaurant operators established their business from the start and also run the dual roles of being the owner and manager. Sole proprietorship is the preferred form of business ownership, while the menu is commonly both Ghanaian and foreign dishes. The restaurant operators demonstrated a somewhat high entrepreneurial outlook with autonomy been the most practiced dimension. Innovativeness recorded the least practiced dimension. This outcome is not surprising since thorough observation of the restaurants business activities suggests that they all operators use the same business model. Moreover, it seems they benchmark their business activities against each other rather than on international best practices. Their risk averse posturing could explain this behaviour. The restaurant operators are not frequent with churning out business initiatives because they scored a marginal high mean value. They focus primarily on the meals and drinks on sale and not enthused over by providing quality services. The low mean score for new business venturing confirms why all the restaurants studied have only one place of business. The mode for establishing a restaurant business has no significant influence on the entrepreneurial outlook of the operator, just as the gender of the restaurant operator does not determine the desire to champion business initiatives. Both male and female restaurant operators can engage in frequent business initiatives. The dimensions of the entrepreneurial outlook had a significant positive association with business initiatives apart from autonomy that recoded insignificant influence on services. Consequently, this study contends that entrepreneurial mindset is imperative for developing and promoting business initiatives in the restaurant business.

Recommendations and Conclusions

Based on its findings, this study concluded that the restaurant operators in the Cape Coast Metropolis have a somewhat entrepreneurial outlook as well as the urge to develop business initiatives. The following suggestions will improve their entrepreneurial outlook and business initiatives. The restaurant operators must be abreast of current knowledge in order to utilize new technology in the restaurant industry by attending seminars and workshops. They must be involved with every aspect of the restaurant with complete professionalism. Employees must be treated professionally and not means to an end. This will enable employees to offer constructive ideas and criticisms. With regard to customer service, every restaurant must have a trendy menu and star chef. Restaurant managers must get to know their regular customers by their names, favourite dishes and drinks. In summary, restaurant operators must plan ahead, communicate expectations to staff, care for customers and carry out all these in a consistent and an up-beat manner.


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