On track or off: Should this Afro-Colombian company contract or expand?

Two young Afro-Colombian entrepreneurs believe they can find a modicum of success in their country’s health and beauty industry with an infusion of capital from their local bank and the creation of a creditor relationship with a major supplier. But is their attention misdirected – should they be focused on other finance-related issues and not just strategizing about how to deal with their obvious cash flow concerns? Students are asked to place themselves in the position of the young entrepreneurs as they examine their options.