Qualification - Higher National Diploma in Business

Unit Name - Entrepreneurship and Small Business Management

Unit Number - Unit 9

Assignment Title - 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.

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.

Need Top-Class Unit 9 Entrepreneurship and Small Business Management - Higher National Diploma in Business Assignment Help? Get Solution From Qualified Tutors To Score A++

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).

Introduction

Rationale
The essay targets at answering the following aspects of the entrepreneurial business that are types of entrepreneurial ventures: The impact of SMEs on the economy, Key aspects of an entrepreneurial mindset, and the effect of the environment on entrepreneurial businesses like Celestial Asia Securities Holdings Limited. The report has therefore been made by an acting business constant to provide useful information through analysis of the Celestial Asia Securities Holdings Limited company regarding the risk of their business if they enter the sole proprietorship (Chinadailyhk, 2021).

? Organization profile
Celestial Asia Securities Holdings Limited is a retail company that aids people in writing various kinds of official and unofficial documents. The company at present the company sells furniture and household items through e-commerce as well as many outlets in China (CASH, 2021). They also sell household and electrical appliances

? History
The business was set up by Mr. Kwan to create a dimensional change in the field of retail and investment in China. He started with some partners like TengHin Kwan and Siu Pong Leung as executive directors (CASH, 2021). The company director has also earned several awards for the innovation brought into the retail business.

? Company mission
The mission of the company is to create an essence of corporate culture and bring innovation through the corporate system of management in the world (CASH, 2021).

? Objective
The company aims at making the process of investment more down-to-earth and simple for the people (CASH, 2021). They aim at providing the best quality product to the customers through creative approaches and teamwork.

Industry experience
In the setting of Celestial Asia Securities Holdings Limited, the founder Amy Kwan has been fruitful enough in their business fields by prudence of their abilities to comprehend business requests they can remember inventive administrations for their business that have assisted them with keeping an upper hand in the business market (CASH, 2021). The high background of education of Mr. Kwan and his years of experience in business administration can give him good experience in writing and consulting and in the end, helped third to develop the idea behind the Celestial Asia Securities Holdings Limited Company.

Introduction
In the following section, the entrepreneurial venture of Celestial Asia Securities Holdings Limited has been studied through an elaborate discussion of background definition and information as well as interrelations, analysis, and justification. There are various factors like suitable structure, quality, and environment for a company to understand and analyze for understanding their business and its risk in entering sole proprietorship (Cullen and Archer-Brown, 2020). This kind of analysis also provides an insight into the impact of this and similar other companies on society, development of scope, and growth of the economy.

Comparison between serial entrepreneurs, intrapreneurs, and owner-managers.

Similarities
There are several similarities between the different types of entrepreneurial ventures despite their typological differences. It can be seen that the entrepreneurial businesses are similar on the ground of their revenue generation, size, and nature of initiation (Fayvishenko, 2018). They also have a similar high-risk situation which is initiated by business personnel. Despite their size, all entrepreneurial ventures are seen to generate revenue at a faster rate.

Meaning of Entrepreneurial
Entrepreneurial ventures are companies that are set up keeping in mind a unique idea. They usually form with a very limited number of employees and do not usually have huge funds or a very rigid infrastructure (Cunningham and Menter, 2020). These kinds of ventures are seen to develop innovation and have strong qualities of motivating society.

Defining the term: serial entrepreneur, intrapreneur and owner-manager
? Franchise: A franchise is a type of an individual business group, which has grants authorized by the government to conduct commercial activities.
? Merger & Acquisition: This is a type of transaction that is conducted in the finance corporate. In this, the ownership of different business organization are transferred to other entities.
? Serial entrepreneurs: Serial entrepreneurs are the people who participate in the system of entrepreneurship as dynamic figures who aid in the creation of incremental wealth in the company. They help in starting the venture to create a difference and provide a qualitative service that is distinctively good to the economy (Cunningham and Menter, 2020)
? Intrapreneur: Intrapreneur is the people who participate in an entrepreneur real company that is already in its existence and helps to increase the competitive strength and market sustainability of the organization Cunningham and Menter, 2020). They make collaborative decisions with the executive team to conduct risky processes and prepare the company for high concern failures and mistakes.
? Owner manager: The managers are the people who help to tender an effective service that is efficient in creating a venture of entrepreneurs which can run successfully Cunningham and Menter, 2020). They are servants to the venture organization and provided a salary. That is to say, they are not independent when it comes to financial earning.

Differentiation of three types of organization:
? Sole proprietorship: in the business industry sole proprietors are incorporated businesses that only have one owner. This owner is to pay the personal income tax on the profits earned from the business. The sole proprietorship business is also known as a sole trader business since it is conducted based on the interest of a single person. There is a lack of government regulation in this kind of business, making it quite approachable for entrepreneurs (Vuong and Sid, 2020). They are quite popular among individual self-contractors and sole owners of businesses and consultants. It is important to note that in this kind of business creation of a separate business name is not always necessary.
? Partnership: a business partnership is a kind of business where there is a legal relationship between two or more individuals or companies. This kind of business is most often font to a written agreement that is signed between the parties who come into a partnership with one another in terms of business profit and activities (de Souza Marques et al., 2019). Money is invested by each partner into the form so that their benefit is counted based on the investment that they have made into the business. In this kind of business, each partner is affected as much by the benefits as the losses of the company.
? Private limited companies: there was also another type of company that is owned by non-governmental organizations. This kind of company is known as a private company. It is said that they have a limited number of shareholders or members and they run the business with their private funds rather than government investments (de Souza Marques et al., 2019). They also do not offer date sheet shares to the general public on the stock exchange. Their profit is rather shared with the private staff of the company that they own and trade.

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Contribution & Comprehensive view for SME.
- Increase employment opportunities: Small venture businesses are seen to have the power of human resources which helps to bring improvement in the system of human resource management. They bring the majority of organizations with no sufficient interest, therefore, aiding in the development of the relation between HRM practices and employee engagement. In China, it has been found out that companies like Celestial Asia Securities Holdings Limited have led to a huge growth in the rate of resumption in various occupational spheres like agriculture, industry, business service, and residential services. (Guliman, 2020).
- Increase potential customers' options to choose: The abilities and trademark attributes of an SME are seen to profoundly affect enterprising inspiration. The ability to provide the scope of creativity and innovation helps to develop and empower the individuals and their activities in the business setting.
- Increase positive competition among the business environment: In recent studies, it has been found that SME ventures are making a huge impact on the global business industry. They help to provide uniqueness and fact rate of economic growth which increases the competitiveness in the market to a great extent (Tetzlaff and Jaskiewicz, 2020). This. Along with faster transportation has led to the spread of impact of small business ventures on an international level.
- Increase local government tax income: Small venture businesses are statistically seen to have the fastest growth rate. As per the financial reports, it is seen that the SME accounted for more than 98% of the total number of enterprises. On a national level in China, It is seen that small and medium entrepreneur adventures have made a huge impact when it comes to the development of the economy. In the last three years, 2017 the small and medium entrepreneur businesses have made about 10% year over year growth rate (China MSME Finance Report 2017, 2021). It is one of the chief driving forces of China's economy and as of 2019, the number of small and medium ventures has been estimated at over 38 million. They accounted for 79.4% of China's employment which is a huge percentage when it comes to the impact that it creates on the economy (SME Finance Forum, 2021).
Skill sets required by establishing a Small medium entrepreneurship
- The ability to train new staff: The entrepreneur should have the ability to make the new staff eligible to handle the business. Since entrepreneurial id4eas are very innovative and structurally new, much time is needed that the employees to be trained properly to fully functionalize in the company.
- The ability to relieve stress: Besides this, they should also have the capacity to embrace any kind of changes and dangers and relive any stressful situation. Difficult Work and diligence are these two skills that assist an entrepreneur with arriving at his ideal expert objectives in the business setting (Tetzlaff and Jaskiewicz, 2020).
- The ability to be productive: The entrepreneurs are also seen to require the skill of innovation and quick learning capability so that they can learn new things on the lookout and make techniques to carry out those things in the strategic policies.
- The ability to communicate with employees and entrepreneur friends: It is seen that for a successful entrepreneur, powerful relational abilities and communication skills are highly important. They assist with developing a solid business organization.

Financial analysis
Celestial Asia Securities Holdings Limited

 

2020

(HKD)

2019

(HKD)

2018

(HKD)

Sales Revenue

1,379,513

1,387,769

1,420,264

Less: Cost of goods sold

46,284

92,720

200,614

Gross Profit (loss)

40,974

100,352

204,939

Less: Operating expenses

Advertising

114,204

64,861

256,293

Rent

40,090

46,020

56,293

Software

261,604

341,378

115,780

Salaries and wages

687,265

 

668,790

 

547,856

Other

221,450

200,890

118,359

Sub-total:

(1,103,163)

(1,121,049)

(861,005)

Net profit

259,135

170,508

280,311

Here is a profit and loss statement of Celestial Asia Securities Holdings Limited for the past three years. The net margin in 2019 was roughly 2.97% and 7.2% in 2018 (CASH, 2021). This according to the past years' P&L statement, there is a negative movement based on the calculation of gross profit, and net profit.

Maintenance of creativity and innovation.
Small business ventures like Celestial Asia Securities Holdings Limited are seen to be very important in terms of the development of the economic condition of society. Although they do not create an impact on a huge scale, it is seen that they helped on a regional basis (Kerr et al., 2021). For example, companies like Celestial Asia Securities Holdings Limited help to develop skill trading and handling of finances among regional people. Their marketing team is not seen to enable the development of creativity and innovation which automatically aids in the advancement of entrepreneurial ideas in the It helps to employ younger staff and let them reflect their ideas. The company can participate in the membership of the General Trade Chamber of Commerce and Associations to take part in international conventions or trade exhibitions to learn about foreign markets. The metropolitan centers of China like Hongkong, Beijing are one of the major business capitals of not only China but also of the whole world. In recent years, with the help of the national government, the people have started giving more importance to entrepreneurial ventures (WIRE, 2021). These businesses are statistically seen to have the fastest growth rate. As per the financial reports, it is seen that the SME accounted for more than 98% of the total number of enterprises

Protecting the copy/patent right of an SME

Reason for protection
The reason to have registration is to protect SME businesses from giant businesses. In recent studies, it has been found that SME ventures are making a huge impact on the global business industry. They help to provide uniqueness and fact rate of economic growth, which increases the competitiveness in the market largely. This faster transportation has led to the spread of the impact of small business ventures on an international level. The reason to have registration is to protect SME businesses from giant businesses. In China, it has been found out that companies like Celestial Asia Securities Holdings Limited have led to a huge growth in the rate of resumption in various occupational spheres like agriculture, industry, business service, and residential services (Hartinah et al., 2020).

Regulations
Small business companies need to have the performance trade however they considered protection. As per the Hong Kong Patent Ordinance, a standard patent when sanctioned can be shared with the European patent application or a patent application in the PCR (Sung, et al., 2021).

Registration porcess
According to the Intellectual Property Department of HongKong, the steps to register a company for a standard patent are
? Step 1: a request to record the designated patent application.
? Step 2: a request for registration and grant in the Hong Kong SAR.
Legal requirements in the overseas country
? The Small and medium entrepreneurial ventures when conducting foreign investment are needed to ensure that all the required documents of the government legislation are met. The Celestial Asia Securities Holdings Limited's company, since set up in Hong Kong, is seen to need following Foreign Trade Law, Anti-dumping Regulation, Countervailing Regulation, Regulation on Safeguard Measures which outlines the restrictions on all investments made with Malaysia (Tamar et al., 2019).

Demographic analysis of the target customers

In Hong Kong, where Celestial Asia Securities Holdings Limited is originally located, it has been found that the population of young men in the age group of 21-35 who are of moderate to high economic background(Gu et al., 2019). Hong Kong has one of the most affluent economic populations and thus the customers in this area show great potential of purchasing products from the comany. Moreover, the above-mentioned population of Hong Kong is one of the major pioneers of a fast economy which makes them buy more products in a very small period of time.

Rewards/risks in establishing an SME

Rewards
Running a small business involves greater risk factors but these are important for the economic growth of developing countries. Small businesses create job opportunities for the local communities with incidences of greater job satisfaction than larger established companies. They help in boosting the local economy and supporting the community where the business is based (Fayvishenko, 2018). Small businesses can change with the changing economic conditions and this causes them to survive in economic crises and thus help in strengthening the overall economy. The most important rewards of running a SME are reward of personal freedom, reward of financial opportunity and reward of ownership. SME businesses help to provide the owners the opportunity to act on their free will and innovate new ideas which are not confined within the limits of a specific structural business.

Risk and Mitigation methods
When it comes to the risk of setting up an SME, it should be noted that several factors are important to be maintained. For example, the personal background of the founder like their family and past activities is very important since they create the foundation of a reputation based on which other investors put their trust and money in the business. If the personal experience is not good, then it creates risk for the company. Good educational background is very vital to have an extensive background of knowledge and experience in the field where the business is being developed (Direction, 2019). Without a strong economic background, it becomes highly risky for an entrepreneur to start a business because there is too much risk attached to the founder's interest.

To mitigate the risk, the company needs to provide training to its employees to develop the skills of entrepreneurship. The company also needs to hire an entrepreneur who will help to create strategies for economic and other environmental risks. That is to say, they need to hire intrapreneurs who will investigate insurance and exchange rate fluctuations. that will help the ocnomy of the In this way (Renfors, 2020). The company can be able to mitigate the risk of shifting to a sole proprietorship.

Review
Since Mr. Kwan has a high reputation in society, any risk of character fault is unlikely to occur. The company has a reputation for winning the position of the best business in Hong Kong. The high background of education of Amy Kwan from The Murdoch University of Perth, Australia, and an Honorary Doctorate in Business Administration. (Islami et al., 2020). China the government has in recent decades supported and motivated the culture of small and medium businesses because of which the industry has also fostered tremendously. Thus, other than issues of competition and changes in customer needs, the company does not have any such major risks.

Conclusion
Therefore, from the above discussion, it can be seen that there are various factors like suitable structure, quality, and environment for a company to understand and analyze for understanding their business porous. This kind of analysis also provides an insight into the impact of this and similar other companies on society, development of scope, and growth of the economy. The financial analysis has helped in providing an estimation of the trend of the company's business performance. It is looking into its trend, risk assessment, that the possible chances for the company to expand its business in sole proprietorship can be seen. That is to say, the above discussion shows how the SME impacts the present economy and society. It also showed the documents required for any international trade. However, looking at the background of the company, it is therefore recommended that the company do take the step of the sole proprietorship as the risk is considered low.

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Learning Outcomes and Assessment Criteria:

Learning Outcome

Pass

Merit

Distinction

LO1: Explore and illustrate the range of venture types that might be consider entrepreneurial.

P1: Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship.

 

P2: Explore the similarities and differences between entrepreneurial ventures.

M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship in both the public and corporate sector.

 

D1: Critically examine the scope, development and growth of entrepreneurial ventures.

LO2: Assess the impact of small businesses on the economy.

P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on the economy.

 

P4: Explain the importance of small businesses and business start-ups to the growth of the social economy.

M2: Evaluate the differences small, medium and large businesses make to the economy, applying relevant data and statistics.

D2: Critically examine how small businesses have an impact on different levels of the economy (local, regional, national) and in an international context.

LO3: Determine and assess the key aspects of an entrepreneurial mindset.

P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from other business managers.

 

P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset.

M3: Explore and examine different lines of argument relating to entrepreneurial characteristics.

D3: Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples.

LO4: Examine the different environments that foster of hinder entrepreneurship.

P7: Examine, using relevant examples, how background and experience can hinder or foster entrepreneurship.

M4: Analyse the link between entrepreneurial characteristics and the influence of personal background and experience to specific successful entrepreneurs

D4: Critically evaluate how background and experience influences entrepreneurs, both positively and negatively, by comparing and contrasting examples.

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