All about Entrepreneurship | Study

[Entreprenuership, enterprise and innovation]
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Todays entreprenuer has to work in the very uncertain enviornment with an unforseen future, it is therefore these characteristics that makes the
entreprenuership a risky business proposition where the data shows that around 90% of the startups has to see the face of failure and most of
them from the fresh entrants who wants to excel in the feild of entreprenuerships. On the other hand those who have proven to deliver in the feild
of entreprenuership has shown certain skills like leadership skills, network development skills, interpersonal skills etc. apart from the excellent
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Table of content:

ideas, followed the methodologies like correct assessment of business feasibility, preparation of perfect business plan, risk assessment and
execution of the plan as per the business objective and other activities to build a milestone for other entreprenuer (Entreprenuer India, 2019).
There has been different theories advocated by the well known authors in regard to the entreprenuership. The first amongst them was Joseph A.
Schumpeter who propounded innovation theory. He was of the view that entreprenuers are the one who convert new ideas into successful
innovation and is born with the desire of having his own industry. According to Schumpeter, innovation occurs when innovators comes up with a
new product, innovates in the methodologies of production for example using technologies or automation for efficiency, explores new market for
the product, explores new source for supply chain or the one who comes up with the new organization in an industry (Chand, 2019). So the
innovator can carry out any one or the combination of given activities (Pie-Lee et.al, 2017, pp- 47-62). This theory has been elaborative on the
account of discussion on innovation and innovators but has not touched the risk part associated with the entreprenuership. The other aspect of
this theory is that it is more viable for the large scale industries as capital risk or other risk is less with the ample availability of the resources. On
the other hand theory of need of achievements was propunded by McClelland who has identified desire to achieve as the major factor in
entrepreneurship development (Akrani, 2010). He also discussed about the factors of affiliation and power that an entreprenuers wants to achieve
through his efforts. David McClelland argues that the role of “n ach” is an important element for entrepreneurial development that inturn helps in
accelerating the pace of economic development. He is of the opinion that the achievement motivation is nourished by ambition. Such theory
corresponds to the similar needs that drives me to take entreprenuership as an effort and as a career. As an entreprenuer we are looking to expand
our Romanian restaurant business in the region of Maidstone, Kent, United Kingdom. It is located in the south- eastern part of England with the
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population of 1,84,7000 approximately where the Romanian population is next only to British population after the easement of restriction from
right to work in UK for Romanian citizen. As an entreprenuer we have carefully selected the location given the large number of Romanian
population in the Kent region and gap in the market for Romanian delicacies in the region that forms the basis for the introduction of Romanian
restaurant. The name of the restaurant is LA MAMA ACASA that provides the glimpse of the Romanian culture by serving famous Romanian
delicacy through the traditional style of cooking,romanian music, languages, and Romanian arts on the restaurant walls. The restaurant would
not only reflect the proud culture and mouth watering delicacy for the Romanian locals in the Kent region but would also serve an altogether
memorable experience for the native Britishers and people from other parts of the world living and staying in the Kent area. The ingredients that
are used in the preparation of different meals would be prepared by the well known renowned chefs from Romania itself and would include
tender meat, fresh vegetables to finest quality of herbs and spices to be used in the preparation of meals.
Mission, vision and objective:
As an entreprenuer our vision is to make every” Romanian feel at home away from home” i.e. to say providing wide array of high quality
Romanian dishes and culture for all Romanians living outside thier homeland.
Our mission is to identify the area with considerable Romanian population and provide them high quality local foods of Romania.
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Our objective is to become top sought restaurant for the Romanian people in three years time throughout Europe.
Our research on this front about the availability of Romanian restaurant in the European region has open the sea of opportunity for us given the
few players in the market that serves to the taste of Romanian people in the foreign land. The outcome of the online enquiry and the survey has
strongly advocated for the need of such restaurant that can deliver to the feeling of nostalgia for the Romanian people which has led our
entreprenuerial sense a strong backing given the support from the enquiry/survey required for the feasibility of the business.
Team: Key people, function and background
The success and failure of the entreprenuership largely depends upon the skills, abilities, knowledge i.e. to say the overall competency of the
leaders driving the entrepreneurial activity. Todays it is very tough to predict or forecast what would be the outcome of the entrepreneurial
activity and the data is an evident of how most of the startups and new businesses struggles to find thier firm feet after thier initial hype of the
business ideas. The reason being that are lots of other efforts in the form of planning and execution, ability of the leaders and the quality of the
team all has to do with how the business turns into fortune for the smart player of the game. To explain this McClelland as has been discussed
above gave the theory of achievements that is crux in driving the entrepreneurial spirit of the leaders, who decides the momentum of the
business. Whereas on the other hand Hagen has proposed that withdrawal of status or reputation of any group allows them to become active and
regain the lost reputation or status through their relentless effort (Entreprenuership Theories, 2019). On the similar note Eric rise the propounder
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of “lean thinking for the startups “ is of the similar view that failure are part of the entreprenuership game but the ability to lift for the occassion,
ready to take the challenge and learning from the mistake helps the entreprenuer regain thier lost reputation.
LA MAMA ACASA has three key people with thier distinct quality and experience as a professional and has something unique to offer for the
entrepreneurial effort. My personal background as an entreprenuer is that I have served as a restaurant manager for 10 years in my family
restaurant business that gave me an ample idea of different cusine, its taste and flavor for Romanian visitors. My current academic experience
provide me the knowledge and skills in terms of team building, financial acumen, planning and to become resilient during challenging situations
corresponding to the theoratical aspects of entreprenuership quality requirement. The other partner or the co-founder has an excellant track
record in serving one of the top restaurant in Romania. He has 8 years of experience serving as an Executive-Chef for the hotels and has a
Business Diploma in Hotel Management. He is also a qualified food expert and has indepth knowledge of balancing the taste with health for the
Romanian population. His association for this endeavour would be a value addition for the entrepreneurial effort. Our third key personnel is a
native Britishers who would be the manager of the restaurant, who will bring 15 years of experience in restaurant operation and has the ability to
oversee chain of restaurant business with his range of skills, deep knowledge of the restaurant industry and his ability to scale the operation
within and outside the United Kingdom.
Support network:
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We as a team are always engaged in the community driven program, developed a commendable support within the community which would
inturn would also help the restaurant in reaching the community easily with comparitively less marketing expenses (Sekliuckiene and Kisielius,
2015, pp.1015-1019). We are always in touch with each others with the help of the social networking websites and community are always eager
to know of any development going around within the Romanian community. Such interaction has already made our presence felt in the
community and would definately help us in our endevour (Vorbach et. al, 2019, pp. 51-62).
PEST analysis:
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Political: The United Kingdom has a very favourable political climate, given any party who comes to power they have a very favourable and
friendly attitude towards the business. Any organization or businesses would rarely have any hesitation while making an investment decision
given the political stability.
Economic: The country is slowly on the path of recovery from the economic downturn of 2008 and has been showing a great sign of regaining
its economic strength since the collapse.
Social: United Kingdom is well ahead of its time in being adaptable to different communities from the different parts of the world. Its
cosmopolitan stature speaks for itself, given the people from countries like Poland, Czech Republic, Slovenia, India, China , Africa and many
others countries come here to work and make thier living.
Technological: United Kingdom is some of the few countries in the world that has excelled in adopting to the advance technologies at thier
workplaces. Such opportunity gives the viable option for the entreprenuer to deliver services.
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SWOT analysis:10

Strength :
 The major strength is the considerable population of Romanian population in the Kent region.
 The high quality Romanian dishes with the hands of experienced chefs would help to target the market more effectively.
Weakness:
 One of the weaknesses is the newness of the venture itself and lack of knowledge about the restaurant amongst the Romanian
community.
 Less promotional content would be another area of weakness for this project.
Opportunity:
Lack of Romanian restaurant in the Kent region throws the opportunity to position well for the target market.
Social networking platform can be effectively utilized to reach the Romanian community through effective engagement.
Threats:
Severe competition from the selected few restaurant in the region that has already established base in the region and is well reputed.
Brexit issues can bring challenges in the form of payment of taxes can possess as a threat to the new venture.
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Competitive advantage:
The new enterprise would be uniquely placed in serving a well defined target with the uniqueness of the food and culture that would add to the
beauty of diversity of United Kingdom. Since the people of United Kingdom is open in exploring new offers irrespective of any identity
biasness, the restaurant would add value to the taste and cosmopolitan stature of United Kingdom.
Marketing:
Market size:
Total Population: 1,847,000
Romanian population: More than 4,00,000
Growth expectation: 10% year-on-year basis
Details of Customer: Romanian people & British nationals.
Suppliers:
Spanish supplier for fresh vegetable from Spain
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Indian supplier for the herbs and spices
Local supplier for cutlery and different equipment needs
Premises would be on rental basis to be engaged for 3 years. Rental agreement will be done with the owner of premises for the given period.
Marketing Strategy:
Marketing mix: Traditionally the marketing mix is said to consist of 4 level of marketing mix. These level are product, place, promotion and
price. Today three more levels are added people, process and physical evidence (Acutt, 2019).
1. Product: The concept of LA MAMA ACASA will be executed only after the assessment of the business feasibility and survey that took
the need assessment in terms of demand for the Romanian restaurant in the local Kent area. This restaurant would be similar in pattern as
that of Turkish restaurant, Indian restaurant and so on in United Kingdom serving thier specific target customer.
2. Price: The menus of LA MAMA ACASA would have dishes with competitive price, not necessarily being cheap but rather adding value
to the customer with offers and extra services.
3. Place: The place that we have selected for LA MAMA ACASA is one of the fastesr growing market and is strategically located for
customers gatherings. This would provide us with location advantage so that the customer has an easy access to the restaurant.
4. Promotion: There are several Romanian groups on social networking sites where we can join to promote about the upcoming of the new
restaurant. Apart from that our personal relationship within the community and we know each other very well in the Kent region. All this
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would add to the promotional activity which is cost effective. We have also decided to campaign for our restaurant digitally through paid
campaigns for our restaurant on social networking sites.
5. People: Restaurant business does require high focus on customer satisfaction. It is not only the foods and services that the restaurant has
to focus on to deal with the customer satisfaction but also the active engagement with the customer like creating a delightful moments on
thier birthday etc., create a long lasting customer experience. All these add to the positive reputation of the business that creates a word of
mouth marketing for the business.
6. Process: The customers are least bothered about how the system works in order to make thier experience memorable. In order to make
the customer experince memorable LA CASA ACASA would ensure that every deparment or every specific process keeps the customer
experience on priority. Such overall efforts helps in creating an altogether memorable experience for the customer that results in thier
satisfaction and revisit the premise again and again.
7. Physical evidence: The overall presentation of the restaurant as a whole such as neat and tidy floors, decorative art works, greetings to the
customers, quality of services etc. all add to the customer experience. Such presentation provides an evidence to the customer as to what
kind of service they can expect once they have agreed to take the service of the restaurant. It also provides a testimonials for the other
customer before making a decision to take the services of the restaurant.
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Financial Analysis:
Items Fixed cost (Yearly basis)
Rent $60,000
Electricity $10,000
Gas $6,000
Cleaning Agency $6,000
Telephone $3,000
Stationary $2,500
Newspaper & Magazine $2,500
Advertising Exps. $12,000
Total $1,02,000
Employee Salary (12 months)
Restaurant manager $ 60,000
Billing Person $24,000
Executive Chef $36,000
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Cook (Helper 1) $ 24,000
Cook (Helper 2) $ 24,000
Waiter 1 $ 24,000
Waiter 2 $ 24,000
Waiter 3 $ 24,000
Waiter 4 $ 24,000
Bartender $24,000
Total $ 2,64,000
Start up costs:
Expense items USD
Spoons $2,000
Forks $2,000
Knives $2,000
Plates $4,000
Serving Bowls $3,000
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Dessert Plates $1,500
Cups and saucers $3,500
Round Tables $2,500
Big Tables $6,000
Wooden Chairs $11,500
Burner Gas Range x 2 $ 14,000
Sink wash unit $ 6,000
Hot pick up counter $ 3,000
4 Door Refrigerator $ 3,000
Sand wich Griller $2,000
Water Cooler $1,500
Work Shelves $ 1,500
Large Knives $ 5,00
Slicer $ 5,00
Small Oven $ 1,500
Total $ 80,500
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Daily sales item Price Material Cost Total Revenue Total cost Profit
Product 1 $100 $50 $100 $50 $50
Product 2 $100 $50 $100 $50 $50
Total Profit=$500 for 10 products on daily basis
Total Profit for a month=$15,000
Total Profit for a year=$1,80,000
12 month cash budget (P& L statement)
Growth 5% on monthly basis
Revenues $10,00,000
Material Cost+ Startup cost $80,500
Salary $2,64,500
Fixed Cost $1,02,000
Profit/Loss $5,53,000
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Break Even-Volume sold xContribution margin/unit= Fixed Cost $
If 1,02,000 is fixed cost and contribution margin is $4/unit
Volume Sold= Fixed Cost $/Price per unit-Variable cost per unit=1,82,500/6=30,416 unit
Conclusion:
The above given business plan has discussed about the theoratical aspects that relates to the entreprenuership, enterprise and innovation. It has
also discussed about the competency i.e. skills, abilities, knowledge and personal qualities required from the leaders to elevate the project to the
next level. The business plan discusses in length about the entrepreneurial plan, product and how it would be positioned in the market. The
financial analysis has been done to provide a clear projection for the profitability of the project. To recall the word of Eric Ries who has
developed his own mold to the already developed lean thinking in the “Toyota production factory” that it does not matter, however big an idea is
it is doomed to fail if the end user does not accept the high end or highly sophisticated product. Sometimes a very basic business ideas may earn
you a fortune, if you are serving the customers with the right product at the right time. As discussed above, the restaurant business has a very old
history but the similar concept is to be used to serve a specific target market.
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References:
Akrani, G. (2010). David McClelland’s achievement, motivation, manifest, need theory [online] Available at:
https://kalyan-city.blogspot.com/2010/06/david-mcclelland-achievement-motivation.html (Accessed: 17 Decemeber 2019)
Acutt, M. (2019). The Marketing Mix: The marketing mix 4Ps and 7 Ps explained. Available at: https://marketingmix.co.uk/ (Accessed: 17
Decemeber 2019)
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Chand, S. (2019). Innovation Theory of Trade Cycle: by J.A. Schumpeter [online] Available at:
http://www.yourarticlelibrary.com/business/innovation-theory-of-trade-cycle-by-j-a-schumpeter/25996 (Accessed: 17 Decemeber 2019)
Entreprenuer India (2019). Elements of business plan [online] Available at: https://www.entrepreneur.com/article/38308 (Accessed: 17
Decemeber 2019).
Entreprenuer Theories (2019). Withdrawal of status respect theory of entrepreneurship [online]. Available at:
https://entrepreneurshiptheories.blogspot.com/2017/08/hagens-theory-of-entrepreneurship.html (Accessed: 17 Decemeber 2019).
Pei-Lee, T., Chen, C.Y., Chin, W.C. and Siew, Y.Y., (2017). Do the Big Five Personality Factors affect knowledge sharing behaviour? A study
of Malaysian universities. Malaysian Journal of Library & Information Science, 16(1), pp.47-62.
Sekliuckiene, J. and Kisielius, E., (2015). Development of social entrepreneurship initiatives: a theoretical framework. Procedia-Social and
Behavioral Sciences, 213, pp.1015-1019.
Vorbach, S., Müller, C. and Poandl, E., 2019. Co-creation of Value Proposition: Stakeholders Co-creating Value Propositions of Goods and
Services. In Co-Creation (pp. 51-62). Springer, Cham.
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