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Unit 9 Entrepreneurship and Small Business Management - Higher National Diploma in Business

Assignment - How to set up a small business from an entrepreneurial mind-set?

Learning Outcome 1: Explore and illustrate the range of venture types that might be consider entrepreneurial

Learning Outcome 2: Assess the impact of small businesses on the economy.

Learning Outcome 3: Determine and assess the key aspects of an entrepreneurial mindset.

Learning Outcome 4: Examine the different environments that foster of hinder entrepreneurship.

Assignment brief - A scenario:

A small medium trading company, being registered as sole proprietorship, is planning to approach your consultancy firm to develop its' business. You, as a business consultant, are required to give advice to the trading company in various aspects of business development (e.g. different range of venture type).

Since the trading company is such a small company and does not have professional experts. Therefore, it has only a flat structure and a manager to deal with the business issues himself. As the workload of daily operation is being complicated and is to further streamline the business, the manager plans to outsource the business development planning.

You have agreed to offer your consultancy services under a half yearly contract which seems to be the most appropriate arrangement due to shortage of funds. After having signed up the contract, you are being asked to provide a report to the manager of this potential organization.

Guidance:
You are required to prepare a report monitoring the importance of developing business skills needed in reviewing and managing the performance of a small sole proprietorship. In addition, it should state how useful it is to focus on the processes involved, through change management, of reviewing and improving the performance of a small medium trading company. The report must also feature the revision of business objectives and plan to incorporate proposed changes. It should also highlight the monitoring of improvements in the performance of the business over a given timescale.

In your report, you will address the following (make suitable assumptions about the organisation if
needed, for your analysis):
• In the above scenario of a small medium company, produce a profile of a selected small business (including the introduction of the business nature & characteristics of a SME). (LO 1)
• Explain the roles and characteristics of micro, small and medium-sized organizations. (LO1)
• Also try to explain the meaning of entrepreneurship to the potential client in the related social public and its' impact on the social economy growth. (LO 1)
• Differentiate between serial entrepreneurs, intrapreneurs and owner-manager. (LO1)
• How to maintain creativity and innovation in SME management from entrepreneurial idea and the business protection from intellectual property rights. (LO2)
• The explanation of need in establishing the SME (e.g. role & the contribution to the economy at national, regional and local level. (LO2)
• Carry out an analysis of the business using comparative measures of performance (e.g. size, turnover, profit, rate of growth) and international differences impact upon business start-up. (LO 2)
• Carry out an analysis to the potential client whether it is appropriate for him to set up a SME and the advantages and disadvantages in setting up a SME from entrepreneurial mindset. (LO3)
• What skill sets are required for establishing a SME and are there any differences from other type of organizations? (LO3)
• Carry out an analysis for entrepreneurial characteristics and situational factors in a personal context, including family upbringing, lifestyle, cultural differences and personal motivation etc. (LO3)
• Examine the factors that influence the decision to start a business, e.g. personal background and education, national culture, economic circumstances and character traits. (LO4)
Carry out analysis the rewards and risks in starting up a SME and how to mitigate the risks and uncertainties during set up. (LO4)