Application of Entrepreneurial Theory in SME for Business Success

This report explores the application of entrepreneurial theory in SMEs for business success. It analyzes the features of the small business marketing environment, identifies operational issues faced by new ventures in the financial sector, compares and contrasts marketing theory and practices in small business, and discusses the development of autonomous learning skills. The report focuses on Brightstar Financial Limited, a small medium enterprise in the UK specializing in offering financial solutions to the intermediary market.

ENTREPRENEURIAL
MARKETING

EXECUTIVE SUMMARY
Entrepreneur are the innovator, proactive and have risk taking ability required for the
functioning of new venture. Within this report emphasise is given on the different features of
small business enterprises that help them to differentiate from the other business. So to run the
new venture based on unique concept an entrepreneur need to overcome different financial issue
for the adequate business functioning. There are different promotional tool that lead the
organisation to enhance the business functioning by adopting different business practices like
word of mouth. Thus, it lead to the increase in profitably of firm.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse and distinguish the features associated with small business marketing environment.. .3
Identify operational issues faced by the new venture in financial sector....................................4
Critically compare and contrast marketing theory and practices in small business....................5
Develop autonomous learning skill.............................................................................................7
Literature......................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

Topic: How the application of entrepreneurial theory in SME helps the business to attain
success?
INTRODUCTION
Marketing and entrepreneur are the two different fields of study but with the increase in
innovation and growing awareness among the people has combine the two disciplines which is
term as Entrepreneurial marketing (Franco and et.al., 2014). Thus, this field helps to exploit the
opportunity through proactive identification in order to acquire as well as retain the interest of
customers by leveraging the resource and generate value by mitigate the chances of risk. For the
better understanding of report Brightstar company has been selected which is small medium
enterprise of UK that is specialised in offering financial solution to the intermediary market. The
main purpose of company is to shape the financing system for the convenience of local resident.
This report cover topics like different features of the small business marketing environment.
Determine the operational issues that is faced by small venture in the global context. Moreover,
compare and contrast the marketing theory as well as practices of small business. Develop the
learning skill and present the ideas and concept on literature to support the topic.
MAIN BODY
Analyse and distinguish the features associated with small business marketing environment
Small businesses are operated and controlled by the private owner that take the initiative
to gather the attention of customer in the large competitive market. These businesses are usually
confined to a particular area unlike large business and concentrate to effectively service the local
community. Thus, the distinct features are stated below:
Sole ownership: Usually the small business prefer sole partnership where firm is held
and owned by single owner, limited liability company as well as partnership. Such kinds of
business reduce the risk and liability concerns of the owner. Within, Brightstar Financial Limited
the specialist offer the lending solution to the market for short tenure due to which it has three
offices that run the limited liability company effectively.
Serve small market area: The small scale business cater single community which is the
part of local area and is much smaller in comparison with large multinational organisation. Due
to confined geographical market Brightstar Financial Limited offer employment opportunity to

fewer number of employees. Additionally, the management team try to maintain personal touch
and communicate regularly with all the team members in order to carry out the task effectively.
Technically aware: With the intrinsic use of technology has made it essential even for
the small company to access the technology (Gross, Carson and Jones, 2014). With the
emergence of digital media has offered immense benefit due to which the company can create
their website, promote their offerings via social media as well as use smartphones or email
market to remain in contact with employees. These technology are efficiently used by the
Brightstar Financial Limited in order to minimise the time and does not lead to burden on the
capital of company. Further, all the details of client are recorded within the database of company
which is better in safety and security terms in comparison to manual recording methods.
Identify operational issues faced by the new venture in financial sector
Growing or emerging businesses faces immense challenges in order to expand and carry
out the day to day operations. As business operate in dynamic environment that changes on
regular basis so to maintain the pace with external environment usually small or medium
business finds difficult to incorporate the significant changes in comparison with large business.
Hence, some of the operational issues faced by Brightstar Financial Limited are defined below:
Cash flow: It is related with the money or financial problem like pending payments,
outstanding bills as well as unexpected outgoing that act as a operational issue. It basically
hamper the firm to maintain healthy cash flows required for the survival of business. Although
Brightstar Financial Limited maintain the budget but in case of bad debts it becomes difficulty
for the form to recover the fund and bear the other expenses like payment to employees,
infrastructural cost and so on. Therefore, the firm need to extend the credit after checking the
creditworthiness of the receiver.
Monitor performance: Even after using the technology and remain connect with the
team member it may not be feasible for the firm to determine actual performance. Along with
that the poor performance of one member can directly and indirectly affect the morale of whole
team members (Kilenthong, Hultman and Hills, 2016). To cope up with operational issue
Brightstar company can prepare the performance indicator that depict how well the team is
carrying out their task and reward them accordingly. Hence, respected company after achieving
the certain milestone organises various event for recreational purpose that build strong relation
between employee and employer.

Critically compare and contrast marketing theory and practices in small business
Marketing theory
Swot analysis: It is the internal market analysis that help the company to identify its
existing position. This framework is used to maintain the competitive position of company and
access the existing and potential market (Marketing and strategy models, 2019).
Strength
Brightstar Financial Limited deals in financial
instruments which is prepared to offer the loan
to local resident in place of mortgage.
Extension of credit for secured loans help the
entrepreneurial venture to maintain its financial
position. Additionally, the company apply
innovational and opportunistic entrepreneurs
theory in order to convert potential market into
loyal ones.
Opportunity
Brightstar company with the innovative
thinking ability can form the strategic alliance
with other entrepreneurial venture and widen
the position of company in order to cater large
audience.
Weakness
Being small medium company the firm does
not get the advantage of economies of scale
due to which it has to make each and every
investment carefully otherwise this can hamper
the image of company (Lodish and et.al.,
2015).
Threat
The main threat of comp[any are large
competitors that have huge customer base due
to which customer are more loyal towards the
well established business in comparison to start
up.
Marketing practices
Word of Mouth: This is an essential marketing practices that help to promote the
product by spreading awareness from one person to another basis on recommendations or past
experiences. This is naturally occurring instances that is used by user to share their personal
satisfaction after availing the service from specific company. Herein, Brightstar company this
marketing practices can help the company to maintain the relationship with existing customer as
well as reach out prospectus by developing effective image of the company. This can help the
company to deliver financial solution by gaining the loyal of customer through referral.

Innovative: Innovative marketing practice basically involve creation of new idea in order
to leave the affirmative impact within society. This process basically help the small enterprise to
effective communicate with targetted customer and spread awareness regarding the distinguish
offering of company (Miles and et.al., 2015). Herein, Brightstar company the marketing manager
rely on this technique to put the marketing efforts and widen the bareness of company in such a
way it increases the market share and customer base to avail the financial help for residential or
commercial purpose.
Marketing theory Marketing practices
Marketing theory includes the SWOT
analysis that focuses on the current situation
of company as it analyse the internal market
that is strength and weakness in order to
exploit the best possible strategy.
Word of mouth is an essential marketing
practices that help the Brightstar company to
build positive publicity and enhance the
customer base after certain duration. This is
relatively time taking in comparison to
marketing theory.
By preparing SWOT analysis Brightstar
company can analyse its existing marketing
within stipulated period of time for which it
can take preventive actions.
Innovations are basically future oriented
within which the entrepreneur anticipate the
relevance of changes and implement the
accordingly.
Contrast: Both marketing practices as well as theory act as an opportunity for small and
medium business that help to capitalizes and promote their brand effectively. Here, the purpose
of entrepreneur is to understand the market and serve them accordingly.
Techniques of entrepreneurial marketing within small business
Brainstorming technique: As the small business too has to make various decision for the
functioning of business. So within brainstorming method all the staff together makes the decision
in order to reach out certain conclusion. This solution is innovative as it is developed from the
effort of every employee (Ndubisi, Uslay and Erdogan, 2014). Hence, Brightstar company need
to be with the help of this method can tackle various business problem of an organisation.
Referral network: Referral is the most crucial technique that can be adopted by an
entrepreneur in order to encourage the customer and cater the audience of geographical market

effectively. Like, within Brightstar company if the managers offer easy financing facility to the
customer then they can more convenient visit the company for financial help. Such strategy helps
to strengthen the referral network of company.
Develop autonomous learning skill
Entrepreneur are the individual that believe in establishing their own business due to
which they are the innovative thinker that give new direction to the business. They have the risk
taking ability which distinguishes them from the traditional business such as sole proprietor. help
to solve the problem of an organisation. In order to create the business plan the change maker
uses the different resources such as human capital, financial and non financial resources for the
welfare of company (Nijssen, 2017). Such coordinating actions help the firm to exploit the
opportunity that prevail in the external market and exploit the market significantly. Although the
small medium enterprise operate in the trough competition but their potential position and
distinguish features can help the company to sustain for longer duration. Moreover, the change
maker need to adopt different skill like problem solving, ability to learn from each and every
situation, effective communication as well as self management. Each and every skill has its own
advantage that help the business to fulfil its purpose and attain long term growth opportunity like
if the small business adopt problem solving skill then it will gain the ability to exploit the
existing resources required to carry out the operations effectively. Like, Brighstar company can
not adopt the high tech technology like robotics, automation and so on. So in order to cope with
tit the enhance the employability the company can use the other technology such as digital media
and software that is beneficial as well as subset the need of high tech technology. Similarly,
effective communication among the workforce and between employer and employee relatively
help the small business to maintain interpersonal relation and function effectively.
Literature
According to O'Cass and Morrish, 2016, marketing theory include the various tool and
technique that help the small business to function effectively by emphasising on the internal and
external environment. It leads to the collection of information from the relevant data generated
by company. Such information offer the direction to company by which they can choose the
distribution channel, set the prices of commodities, determine different promotional strategy and
so on. Along with that basic marketing theory supports small business by enhancing their sales

and create unique image of the brand for which an enterprise just need to focus on the word of
mouth publicity and social marketing tools.
Reflection and Self Evaluation
While making this report I came across various concept that help me to gain clarity over
the subject. By understanding the picture of how small business and the enterprise work I
understand the substantial feature require for the adequate functioning. Also there are financial
and non financial issue that can affect the functioning of firm so I in the practical life can make
precaution for better functioning.
During the completion of project I faced certain difficulties like I was not aware about
the functioning of small as well as large organisation. So on the basis of whole functioning I
came to know about the numbers of partners required to formulate company, their liability as
well as risk taking ability. This led me to take more time to understand the concept and the apply
it appropriately while making the report. Therefore, after completion I have gained deep
knowledge of the concept and can help in near future to carry out task in more appropriate
manner.
CONCLUSION
From the above report it has been determined that entrepreneurial marketing is based on
the foresight vision of an entrepreneur that identify the opportunity in external market either
through the opportunity or problem. Small and medium business operate to cater the need of
local people due to which it exist in small scale as setting up new idea takes time. But it
constantly function and sustain in competitive market to gain the better position. Therefore,
there are various marketing theory and practices that need to be implemented by firm as it helps
it developing suitable strategy that assist the firm to gain better and more effective position.

REFERENCES
Books and Journals:
Franco, M. and et.al., 2014. An exploratory study of entrepreneurial marketing in SMEs: The
role of the founder-entrepreneur. Journal of Small Business and Enterprise
Development. 21(2). pp.265-283.
Gross, N., Carson, D. and Jones, R., 2014. Beyond rhetoric: Re-thinking entrepreneurial
marketing from a practice perspective. Journal of Research in Marketing and
Entrepreneurship. 16(2). pp.105-127.
Kilenthong, P., Hultman, C. M. and Hills, G. E., 2016. Entrepreneurial marketing behaviours:
impact of firm age, firm size and firm’s founder. Journal of Research in Marketing and
Entrepreneurship. 18(1). pp.127-145.
Lodish, L. M. and et.al., 2015. Marketing that works: how entrepreneurial marketing can add
sustainable value to any sized company. Pearson Education.
Miles, M. and et.al., 2015. Exploring entrepreneurial marketing. Journal of Strategic Marketing.
23(2). pp.94-111.
Ndubisi, N. O., Uslay, C. and Erdogan, E., 2014. The mediating role of mindful entrepreneurial
marketing (MEM) between production and consumption. Journal of Research in
Marketing and Entrepreneurship.
Nijssen, E. J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
O'Cass, A. and Morrish, S., 2016. Anatomy of entrepreneurial marketing. Journal of Strategic
Marketing. 24(1). pp.2-4.
Online
Marketing and strategy models. 2019. [Online]. Available
through:<https://www.marketing91.com/marketing-and-strategy-models-and-
concepts/>
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APPENDIX
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