Entrepreneurial Attitudes and Intention: Hysteresis and Persistence

This assignment aims to summarize the entrepreneurial attitudes and intentions of small business owners, focusing on hysteresis and persistence. The literature suggests that entrepreneurial intent is a crucial factor in determining the success or failure of startup ventures (Fayolle & Liñán, 2014). Hysteresis refers to the phenomenon where entrepreneurs' decisions are influenced by past experiences and outcomes, leading to persistence in pursuing their business ideas (Hmieleski et al., 2015). Studies also highlight the importance of entrepreneurial characteristics, such as human capital, social capital, and psychological capital, in shaping dynamic capabilities and export performance of small and medium-sized enterprises (Mudalige et al., 2016). The meta-analytic test and integration of competing models further emphasize the role of entrepreneurial intent in determining business success (Schlaegel & Koenig, 2014). Moreover, strategic contingency planning is essential for entrepreneurs to adapt to changing market conditions and achieve long-term sustainability (What Is Strategic Contingency Planning?, 2017).

Enterprise and
Entrepreneurship

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
1. BUSINESS DESCRIPTION........................................................................................................1
2. MISSION AND VISION STATEMENT....................................................................................1
3. PRODUCTS AND SERVICE PLAN..........................................................................................2
4. MARKETING PLAN..................................................................................................................2
5. OPERATIONS- BUSINESS MODEL CANVAS.......................................................................6
6. HUMAN RESOURCE PLAN.....................................................................................................7
7. FINANCIAL PLAN.....................................................................................................................8
8. LEGAL REQUIREMENTS.........................................................................................................9
9. CONTINGENCY PLAN AND EXIST STRATEGY.................................................................9
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................12
Illustration Index
Illustration 1: Marketing Plan..........................................................................................................3
Illustration 2: Marketing Research...................................................................................................4
Illustration 3: 7 P's of Marketing Mix..............................................................................................5

EXECUTIVE SUMMARY
Entrepreneurship is a process in which entrepreneur always try to adopt innovative ideas
and take risk so that it will give the growth opportunities for an organisation. It is an economic
activity, which is based on profit potential by bearing the risk for securing the organisational
growth. The present report describes the business plan of Crochet or Knitting business concern
which use special needle in their manufacturing activity. This describes the complete description
of enterprise including vision or mission, ideas, objectives, strategies of the commercial
enterprise. In addition to this, it also explains the product/ or service plan, marketing plan of the
concern. In the next phase, also explain the various business model canvas and human resource
plan/ financial plan of the commercial enterprise. At last legal requirements and other
contingency strategy also explain which are related to the enterprise operations (Schlaegel and
Koenig, 2014).
1. BUSINESS DESCRIPTION
Crochet or Knitting is kind of manufacturing business which are situated in Jordan. They
use special kinds of need in their manufacturing process. By use of Yarns, firm can make
multiple materials like cotton, wool, silk and many more long-lasting fibres. By using yarns firm
can make various kinds of products such as bedsheets, blankets, clothing and many more
households products. Company open their branch in Jordan which establishes their shops like
clothing shops, accessories and detergent shops in their locality (Zhang, Song and Zhong, 2016).
2. MISSION AND VISION STATEMENT
Mission of Crochet and Knitting organisation is establish itself in Jordan and provide
general utility products such as clothing, blankets etc. to the customers. Vision include the
achievement which an company wants in future, so that company want to adopt various
innovative techniques and mainly focus on their potential customers. To achieve their targets,
they want to establish their stores like clothing stores, accessories and detergent shops. In this
way, company want to expand their business scale by applying innovative manufacturing
techniques and using interactive marketing strategies so that they can attract the customers in a
large scale. To achieve their targets company firstly find the idea and also identify opportunities
in their nearest environment. To develop an innovative idea company uses informal market
research and develop confidence articulating the idea.
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3. PRODUCTS AND SERVICE PLAN
Crochet and Knitting organisation will provide large scale of general utility commodity
for all ages and kinds of persons. company mainly provide the goods for their potential
customers like; bedsheets, blankets, clothing and household supplements. Organisation is newly
established in Jordan, so that it mainly focuses to provide all those trade good which satisfied the
customer's wants and need. So as newly established firm, they do not produce and focused in
branded products. By providing general utility ware, firm create good reputation in mind of
lower to middle class people.
The unique feature of the products which they are provided to the customers is that
company manufacture all the needle manufacturing products. company use silk, wool, cotton and
many more fabrics to produce blanket, bedsheets etc. For producing the products company use
special techniques such as Yarns strategies so that producer can used for multiple activities. The
special feature in their products is wool. company mainly produces wool related products for
their potential customers.
While adopting the pricing strategy company faces various kind of value related issues.
there are various types of strategies like pricing at a premium, pricing for market penetration,
economy pricing, price skimming, psychology pricing and bundle pricing. As per these strategies
company adopts economy pricing strategy to make valuation of their products cost at a minimum
rate. Economical price always makes great impact on company's operational activity. By
introducing the products in a new market with carrying economic price helps the company to
achieve their set targets. To value the products, it may be depending on the competitor’s
conditions. Competitor's market position and their pricing strategy also make great impact in
organisation operational activity. In this way, Crochet and Knitting organisation always consider
the competitor situation and as per the price of the competitor they set their own products, so that
it will attract the customers in a high level.
4. MARKETING PLAN
Marketing plan is consisting of market research, secondary or primary data collection,
situational analysis, marketing mix strategy and exist strategies of an company.
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Illustration 1: Marketing Plan
(Sources: Mudalige, Ismail and Malek, 2016).
§
The first things that company can focus to make effective marketing plan is to analysis
the competitor's situation. If company feel that their no competitor , then they make fool
themselves. In this way Crochet and Knitting organisation analysis the competitor so that they
can identify the risk. company analysis that in Jordan, there are 2 companies which also make
wool products in the market. Crochet and Knitting organisation analysis the market share that 2
competitive company make 35% impact in Jordan wool market. As per such analysis company
analysis the market and also determine their strength and weakness so that company can beat the
other 2 companies. Crochet and Knitting organisation finds that opening itself in Jordan has
make various advantages such as customs exemptions, tax facility and investment guarantee to
them (Hmieleski, Carr and Baron, 2015). The strength that company finds that their project is
very profitable and by making feasibility study company also attract their customers in large
scale so that they secure their profitability. But company also analysis their weakness that to
manufacture the wool products, it makes impact in summer season because there will be less
chances of selling wool products in summer. Seasonal manufacturing also makes negative
impact in the sale of wool products in summer season
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Market Research
Market research includes to find out the best reason that why the people the products
again and again. In addition to this, Crochet and Knitting analysis the market condition and
various factors which make impact on the business operational activity. So that opening in
Jordan country, company need to analysis the size of the company, geographical areas where the
company serves their products. company also analysis trade magazines, customers which include
the taste, preference of the particular products. company also analysis the journal of the company
so that they can estimate the cash, raw material, expenses etc. during the accounting period. They
also analysis the local business network, suppliers which deliver the raw material to the producer
etc. So, to make the research of the market company need the primary and secondary data, so
that as per the collected data company can identified the actual position of the market. As per the
determination, company take effective decision so that they can establish itself in competitive
market (Fayolle and Gailly, 2015).
Illustration 2: Marketing Research
(Source: Drucker, 2014)
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Unique Selling Point
Unique Selling point is defined the speciality that a firm have in their operational work.
USP refers that speciality which competitor does not have. Crochet and Knitting organisation
finds that they have a speciality that they produce the general utility products which are made
from needle. Thus, company has the uniqueness that they manufacture the products which is
produced by needles. This is main difference in their production activity that another competitor
does not have. company also provide Yarns using material, in this techniques threads are spun
for knitting, weaving and sewing of clothes.
Marketing Mix
Marketing mix includes 7 P's such as price, place, process, products, people, physical
environment, promotion which are used by the company so that they can make effective business
plan.
Illustration 3: 7 P's of Marketing Mix
(Source:Dooley and Kenny, 2014)
Product- Products includes all the physical products which have some value in the
customer and producer point of view. Present report provides that company manufacture the
yarns techniques used fibres such as silk, cotton, wool etc. company also provide general utility
products and all the products are handmade. In this way, by providing unique selling strategies
company make good reputation in front of the customers.
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Price- Price of a products also make great impact in operational activity. there are various
kind of pricing strategies like cost-based, customer-based and competitor based strategy. To open
a new branch in Jordan market, company decide to adopt customer-based strategy so that they
can primary focus on customer's need, want and preferences. Every business try to attract their
customers so that they will increases their profitability. In this race, Crochet and Knitting decide
to focus customer marketing strategies in which they advertisement, personal selling etc. so that
they can attracts the customers in a large level.
Place- In this, company decide the appropriate place where they want to sell their
products. This includes all the marketing channels like retail direct sale, wholesale, order as per
the mail or online. By follow up such channels company cam segment the customers as per their
need (Cherny, 2016).
Promotion- Promotion includes all the marketing techniques such as advertising, sales
promotion, public relation, personal selling and branding. company adopt personal selling and
also make public relation with the customer because the company is newly established company
so that firm cannot take high risk to invest their capital in advertisement and branding activity.
People- People make important role in business growth. So that company makes good
relationship with the customer and also analysis the taste, preference so as per the preference
company can produce the product for fulfilling the needs.
Process- company also focus the information system and online ordering strategy so that
they can highly influence the customer and enhance the profitability.
Physical Environment- Physical environment include the physical evidence of the
products and services which are provided by the company. company offers free trials to the
customers and also provide discounting facility to the customers. They also maintain the design,
style of the products so that company can attract the customers with their effective packaging
styles.
5. OPERATIONS- BUSINESS MODEL CANVAS
Business model provide the process which help to create, deliver and capture value in an
organisation. It includes 9 building blocks that an company is follow to create value. It includes:
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Customer Segmentation- It include all the different group of people which have different
culture. company also focus the segmentation of customers by providing variety of products to
them (Charness, 2014).
Value proposition- Value proposition includes various products and services which are
rendered by the company, which have some value for the customers, For example: Here
company give hand made products to the customers which make value for the old aged people.
Channels- It includes the way of communication by which company make interaction
with the customers. Here, company will make effective communication by receiving feedback
from them and also make interaction with the social networking sites to accomplishing their
goals.
Customer Relationship- In a specific customer segmentation, company should make
effective customer's relationship by giving personal selling opportunities of the products.
Revenue Streams- It include the cash which company generates from segmenting the
customers. For example: by giving blankets, wools material etc.
Key resources- company require Yarns techniques so that they can spun the fabric to
produce handmade products.
Key Activities- company use the wool material manufacturing process in their
operational activity (Castello, Barbera and Vaara, 2016).
Key partnership- To make effective manufacturing process, company make connection
with suppliers for availability of the raw material and also make link with the partners so that
capital requirement can be fulfilled.
Cost structure- company also focus in cost structure so that they can minimize the cost
effectively.
6. HUMAN RESOURCE PLAN
Crochet and Knitting organisation want tom open their new store in Jordan so that they
need people for working in a store. company require 16 employees so that they can perform well.
To hire and making effective HR plan company need to forecasting the need of employees in an
organisation (Carraher and Paridon, 2015). After forecasting the need of employee’s organisation
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develops HR inventory so that they can analysis the employee’s turnover in future. company also
develop job analysis and prepare a comprehensive plan. It includes training and development
activity which help the freshers so that they can understand the techniques in an organisation.
While preparing a business plan company set the effective planning so that they can manage the
human resource effectively for accomplishing the organisational goals. company also use
effective recruitment and selection techniques so that they hire right person in a right job as per
their skills and capabilities. Organisation also hire all those people who have sufficient
knowledge of sewing, weaving of blankets, bedsheets etc. company also hire HR manager that
handle the conflict of the employees and trained them timely. In this way, to make effective
Human resource plan help the business accomplishing their future goals. company also focus the
legal law which is related to the health and safety of an employees. For example: company
follow anti-discrimination act, disability law and health and safety act so that they can provide
security in a workplace. By adopting the business model company can manage their resource
effectively (Carland, Carland and Stewart, 2015).
7. FINANCIAL PLAN
Financial plan includes all the finance related plan. It is essential for every business to
decide the availability of fund so that funds can be used effectively. In this way, company firstly
decide the funds so that they analysis the cash flow in which net cash inflow and outflow can be
determined in an organisation. This is doing so because company can determine the actual need
of cash so that material, expenses can be done effectively. company also analysis the income
statements so that they can determine the actual position in the market. Profit and loss statements
can be ascertained by deducting all the losses from the income which are related to the
accounting period. By maintaining the balance sheet company also determine the financial
affairs make by the organisation, so that they can determine the net assets and liability at the end
of the accounting period. By analysing the sensitivity through ratio analysis company examined
the net margin ratio, operating ratio, asset turnover, current ration, quick ratio etc. so that after
analysis the sensitivity they can make effective trend of the company. In this way, company can
determine the financial position by determining 2 years data so that they can estimate the future
condition in the market and make effective improvement techniques to overcome the loss
situation. To make a business plan entrepreneur need to make effective financial plan so that they
can estimate the real requirement of fund during the accounting period.
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8. LEGAL REQUIREMENTS
To make an effective business plan legal requirement of an company is essential. By
determine the legal, requirement firstly new opening company decide the structure of the
organisation (Bruni, Gherardi and Poggio, 2014). company decide their organisation structure
that it is corporation company in which company have separate legal entity from asset and
owner. For starting up a new business, owner of the company need to register their company in
which two steps are followed by the company , they should submit the name of the business and
after that register their company. In addition to this, Crochet and Knitting organisation register as
a corporation online, or using lawyer. After getting the registration Crochet and Knitting
organisation need to get the licence to operate the activity. By follow up such legal procedure
company can fulfil the legal requirement as per the Jordan government law. As per the country
rule, tax,NI and Vat also are decided and newly open company also make the insurance of the
company. Business set their new plan related to legal requirement and also set the business
property. In business property, it include all the general utility products and dealing with the
other market. To make a legal document company need to give their full details like which kind
of property and products that company deal with different markets ( nationally and internally or
domestic). Company also describe the amount of tax which are levy by the government and also
describes the contribution of their activity ion the country's national income. Company also
insured their products and business by using various kinds of policy. Hence, all legal requirement
are necessary for new open business. (Bird, 2015).
9. CONTINGENCY PLAN AND EXIST STRATEGY
Contingency plan includes all those plans which are made by the new establish company
to face sudden event in their operational period. It includes death, disability, divorce. departure
and disagreement. there is no impact of the death of the members because company have
separate legal entity from their owner and assets. But in some cases, there will be breach of an
agreement will also make impact on company goal and operational work. To make effective
business plan company need to make effective strategies so that they can overcome such
uncertainties. In this way, company should make insurance so that they will be insured from
uncertain events. To make effective contingency planning company set up the strategic planning,
contingency planning, developing the scenario and also determiner the time so that effective plan
can be made the company (Baker, Grinstein and Harmancioglu, 2015).
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REFERENCES
Journals and Books
Bae, T. J. and et.al., 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship Theory and
Practice. 67(2). pp.217-254.
Baker, W. E., Grinstein, A. and Harmancioglu, N., 2015. The Role of Entrepreneurial
Orientation in Overcoming Known and Unknown Barriers to Entry in Foreign Markets. In
Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference. 76(6).
pp.96-97.
Bird, B., 2015. Entrepreneurial intentions research: A review and outlook. Internafional Review
of Entrepreneurship. 56(3). pp.143-168.
Bruni, A., Gherardi, S. and Poggio, B., 2014. Gender and entrepreneurship: An ethnographic
approach. Routledge.
Carland, J. C., Carland, J. W. and Stewart, W. H., 2015. Seeing what's not their: The enigma of
entrepreneurship. Journal of small business strategy. 6(1). pp.1-20.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 87(2). pp.89-98.
Castello, I., Barbera, D. and Vaara, E., 2016, January. Legitimizing Entrepreneurship Identities
through Failure Narratives. In Academy of Management Proceeding. 8(6). pp.15535.
Charness, A. N., 2014. The Role of Practice and Coaching in Entrepreneurial Skill Domains: An
International Comparison of LifeSpanChess Skill. The road to excellence: The
acquisition of expert performance in the arts and sciences, sports, and games. 89(5).
pp.90-99.
Cherny, V. V. And et.al., 2016. Tryptophan 207 is Crucial to the Unique Properties of the
Human Voltage Gated Proton Channel, hHv1. Biophysical Journal. 89(3). PP.601.
Dooley, L. and Kenny, B., 2014, January. Research Collaboration and Commercialization
Among Phd Students: The Role Of Entrepreneurial Capability And University Supports.
In ICSB World Conference Proceedings. 7(5). pp.16-90.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 67(1). pp.75-93.
Fayolle, A. and Liñán, F., 2014. The future of research on entrepreneurial intentions. Journal of
Business Research. 5(5). pp.663-666.
Hmieleski, K. M., Carr, J. C. and Baron, R. A., 2015. Integrating discovery and creation
perspectives of entrepreneurial action: the relative roles of founding CEO human capital,
social capital, and psychological capital in contexts of risk versus uncertainty. Strategic
Entrepreneurship Journal. 45(4). pp.289-312.
Mudalige, D., Ismail, N. A. and Malek, M. A., 2016. Exploratory Study on Relationship between
Entrepreneur Characteristics and Dynamic Capabilities in Export SMES. Paradigm.
78(2). pp.113-130.
Schlaegel, C. and Koenig, M., 2014. Determinants of entrepreneurial intent: a meta‐analytic test
and integration of competing models. Entrepreneurship Theory and Practice. 5(2).
pp.291-332.
Zhang, X. M., Song, Z. L. and Zhong, Z., 2016. Does “small bank advantage” really exist?
Evidence from China. International Review of Economics & Finance. 8(7). pp.368-384.
Online
What Is Strategic Contingency Planning?. [2017]. Available through:
<http://smallbusiness.chron.com/strategic-contingency-planning-25052.html>. [Accessed on
9th June 2017].
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APPENDICES
Profit & Loss accountable
Profit and Loss account refers to the financial position of a company. As per the above
income statements, in year 1 the company get gross loss with -63 but in year 2 company earn the
gross profit with 24000 JD. EBITDFA at the end of both the year 1 and 2 is equal with 15 JD. It
is clear that company earn highest profit in year 2.
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Balance Sheet
As per the above balance sheet, it shows the comparison of two year. In which the total
asset and liability is equal which is 60. It shows that company is financially stable is second year
because in this year company have less liabilities so that they are in profit condition.
Cash Flow
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Cash flow shows the net inflow and outflow of cash during the year. As per the cash flow
statements, In year two company make high cash expenses in comparison of year 1. It means that
company give lots of time and money to improve their financial condition.
Sensitivity Analysis
Sensitivity analysis refers the trend and actual position of a company by using percentage
of related term. As per the above, in year 2 the company have highest GP % i.e. 23.5% and also
receives high operating margin 3.9%./ Net profit ratio is also increases in year 2 with 3.42%. In
this way, it is concluded that in comparison of year 1 , year 2 is profitable for the company.
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