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This paper discusses the many issues and concerns that entrepreneurs face when hiring their first employee. For small business owners, hiring an employee can be a frightening due to lack finances and the high risk level. Therefore they must do their research in order to make an informed decision. Deciding when and whom to hire are critical factors. Timing is an important factor because the owner must have the financial means to hire and have the product demand to justify the need for a new member. The right person is also critical because it can be costly for small businesses to go through the hiring process.

Losing a valuable employee is like losing an asset and can also have a damaging affect on the company. Therefore, it is important to offer adequate compensation or affiliation to the company for the employee. The First Employee discusses the many issues faced by sole proprietors when their business reaches a growth stage where they are no longer able to manage their venture single handedly. The article features Carrie Wong, owner of Practical Gourmet. Carrie has made the decision to hire a new employee to support the growth of her enterprise.

She requires the help of a skilled worker, because her business involves supplying restaurants with high quality desserts. Carrie’s resolution to hire someone was primarily so that she could focus on growing the business. Her example was used throughout the paper to demonstrate effective hiring practices. The First Employee discusses the many issues faced by sole proprietors when their business reaches a growth stage where they are no longer able to manage their venture single handedly. The article features Carrie Wong, owner of Practical Gourmet. Carrie has made the decision to hire a new employee to support the growth of her enterprise.

She requires the help of a skilled worker, because her business involves supplying restaurants with high quality desserts. Carrie’s resolution to hire someone was primarily so that she could focus on growing the business. Entrepreneurs wanting to increase the scale of their business usually do so through recruitment (Glancey et. al. , 1998). The decision to grow the business and hire new employees can be a difficult one to make. Not only are there financial constraints, but small business owners need to be able to hire effectively in order to have continued success in their business.

The decision to hire can be risky and costly however, if done wisely a new employee can be both profitable and valuable. 2. 0 Small Business Ownership In their article, Quinn et. al. (1992) stated that people are motivated become small business owners due to lack of interest in their previous jobs, fulfilling their dreams or family inheritance of the business. For what ever reason an entrepreneur decides to start their own venture, their business concept most often tends to be highly specialized and based on their core competence. This is especially for true for the foodservice and catering industry.

Success for most business owners in this industry stems not only from their talents and ability to produce high quality products, but also their ability to maintain close relationships with their clients. Carrie Wong like other small business owners and entrepreneurs has followed a pattern of starting with a good business idea, making it successful and then expanding it (Han, 2004). Her motivating factor for starting the business was losing her corporate job in marketing. Carrie was the sole entity of Practical Gourmet for two years, managing to successfully market and manage all aspects the business on her own.

Deciding When to Expand For many small business owners the most common reason for expansion is profitability; however there are also “push” and “pull” factors involved (Glancey et. al. , 1998). High demand and market expansion was the “push” factor for Practical Gourmet. Although many entrepreneurs are regarded as “jacks of all trades”, there comes a time when the business becomes simply to much for one person to handle. Growth of some sort is essential to the sustainability of every business. An entrepreneur must have the capability to focus on their talents and core competencies in order to maintain the essence of the venture.

As the business grows they must hire other skilled people that can complement their talents and take care of other aspects of the business. The first step in knowing that it is time to hire a new member is determining that there is enough product demand to justify the decision (Quinn et. al. , 1992) and (Stines ; Kliner, 2003). A second indication of needing help is if the owner is overwhelmed by tasks and finds that they are letting things “slip” (Wahlgren, 2004). Thirdly, customer dissatisfaction is a telltale sign that improvements need to be made.

Contrarily, most entrepreneurs have a high level of affiliation with their business including established relationships with their clients and quality assurance by making the products themselves. The owner’s involvement in these aspects of the business can be significantly reduced as the business grows. This can pose as a great risk in profits to the business. However, waiting for too long a period to hire someone can also be detrimental to the business. If these risks are properly calculated and the growth strategy is planned, the results can be very rewarding.

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