Contribution of entrepreneurial theory in SME growth

This presentation explores the contribution of entrepreneurial theory, specifically the need for achievement, in the growth of SME Red and Blue restaurant. It analyzes the distinguishing features of the small business marketing environment, key marketing operational issues faced by new ventures, and compares standard marketing theory and practice. The presentation also discusses the difference between large companies and SMEs and critically examines the relationship between entrepreneurial theory and marketing practice.

Entrepreneurial Marketing
Title: Contribution of entrepreneurial theory such as
Need of achievement in the growth of SME Red and Blue
restaurant.

Table of content
Introduction
Analysis of distinguishing features of small business marketing
environment
Key marketing operational issues faced by new ventures and small
businesses
Comparison and contrasting of standard marketing theory and practice
Difference between large companies and SMEs
Critical discussion of entrepreneurial theory and marketing practice
Conclusion
References

Introduction
Entrepreneurial marketing is the mode which is used by
organisations to market their products and services in different
manner as compare to traditional marketing (Mcmullan and
Kenworthy, 2016). Innovative ways are used in this mode to
enhance awareness of customers about the goods. The theory
which is selected for this presentation for Red and Blue
Restaurants is need of achievement.

Analysis of distinguishing features of
small business marketing environment
Marketing environment can be defined as the accumulation of
different internal as well as external forces and factors which
may affect ability of an organisation to maintain relationship with
customers and serve them better. Red and Blue restaurant is one
of the top small and medium business enterprises which is
operating its business in Manchester, United Kingdom.

Continued...
There are various features of its marketing
environment which are described below:
Demographic environment: Small
business entities such as Red and Blue
restaurant have demographic environment
where they operate business. All the food
items which are sold and marketed for the
customers are based upon their age,
income level, education, gender etc.

Continued...
Small area to market: Small businesses do not have to focus on
the marketing area because they cover a small area where they
are selling their products and services. Red and Blue restaurant is
also a part of SMEs which is covering Manchester and the
management in the organisation is not required to be worry about
the marketing area (Lechner and Gudmundsson, 2014).

Continued...
Productive employees: In most of
small businesses there are
productive employees who perform
all their jobs in appropriate
manner. In Red and Blue restaurant
there are various responsibilities
such as marketing, consumer
service etc. of staff members which
are required to be fulfilled by them
properly.

Key marketing operational issues faced
by new ventures and small businesses
Business entities conduct marketing activities to spread
awareness regarding different products and services which are
sold by them to the customers. Most of the small and new
business enterprises have to face different types of marketing
challenges (Burns, 2017).

Continued...
Some of them which are majorly affecting the procedures which are
followed by Red and Blue restaurant to market itself are described
below:
Lack of funds: In order to conduct marketing activities it is very
important for the companies to spend money in it. For small and medium
sized organisations such as red and Blue restaurants it is not possible to
invest higher monetary resources to market itself. It is one of the biggest
issue which is faced by the enterprise (Richter, Kraus and Syrjä, 2015).

Continued...
Lower visibility: Small businesses
have very low visibility all around
the world or the area where they are
operating executional activities. It is
also a issue which is faced by Red
and Blue restaurant because it is a
small enterprise which is famous in
the area where services are rendered
by it to clients.

Continued...
Lack of knowledge about
marketing processes:
Small businesses do not
have detailed knowledge of
marketing activities and to
overcome it they have to
hire experienced person
which results in increased
cost.

Comparison and contrasting of standard
marketing theory and practice
Standard marketing theory: It can be defined as the set of
different modes of advertisement and promotions which are used
by organisations to spread awareness regarding their products
and services. With the help of it sales and revenues could be
enhanced by the organisations. It could be used by small
businesses such as Red and Blue restaurants to attract large
number of customers by promoting the food (Hisrich and
Ramadani, 2017).

Continued...
Marketing practices: According to Mcmullan and
Kenworthy, (2016), in order to promote business different
types of marketing practices could be used by organisations
such as Red and Blue restaurants. All of them are as
follows:
• Word of mouth
• Innovative

Continued...
Word of mouth: It is one of the
famous mode of advertising in
which oral communication is
used to market products and
services. It is mainly used in
small businesses such as Red
and Blue restaurants because it
does not require any
investments.

Continued...
Innovative: All the advanced processes
which are used to market business are
known as the part of innovative marketing.
Now a days small enterprises such as Red
and Blue restaurant are using progressive
techniques such as social media marketing
to promote the business. With the help of
them profits could be enhanced by SMEs
(Chetty, Ojala and Leppäaho, 2015).

Continued...
Comparison:
Standard marketing theory Marketing practices
Most of the large sector
businesses use it as it is very
costly.
All the small businesses can use
marketing practices such as
Word of mouth and innovative
marketing as they do not require
any monetary investment.
There are various modes of
using marketing theories such
as advertising through websites,
hoardings, TV commercials etc.
The modes which are focused
while using marketing practices
are quality of services, social
media etc.

Continued...
Contrasting: Standard marketing theory and the practices have
one biggest similarity which is that both of them are used by
organisations for the purpose of spreading awareness about their
products and services. With the help of them companies can
attract customers and enhance profits.

Difference between SME and Large
companies
Large companies SMEs
Employee strength of the
company is very high.
There are less employees are
working in SMEs as compare to
large companies.
Change is implemented or
adopted slowly because there is
high level of risk in it.
Changes are made quickly for
the purpose of developing
business.
Proper hierarchy is followed
with a chain of command.
There is flat organisational
structure is followed in such
businesses.

Critical discussion of entrepreneurial
theory and marketing practice
Need of achievement: It is one of
the common entrepreneurial theory
which is focused by business
entities for the purpose of
determining requirements of
business and attaining long term
goals by fulfilling them (Lisboa,
Skarmeas and Saridakis, 2016).

Continued...
According to Trong Tuan, (2017), for all the small business
entities it is very important to focus on all the marketing
activities and practices as it can help to enhance profit and sales
for upcoming period. In order to market products in the market
the organisations such as Red and Blue restaurant can use
standard marketing theory or practices such as word of mouth
and innovative (Green, 2015). With the help of all of them large
number of clients could be attracted towards the business as they
helps to aware them about features of services of goods.

Conclusion
This presentation concludes that entrepreneurial marketing is the
process which is used by small businesses to market their
products and services in innovative manner. There are various
features of their marketing environment which are demographic,
productive staff etc. The issues which are faced by SMEs to
promote their products are lack of resources, low knowledge etc.
in order to overcome all of them different practices such as social
media marketing and word of mouth could be used.

References
Trong Tuan, L., 2017. Organizational social capital as a moderator for the effect of entrepreneurial orientation on competitive intelligence.
Journal of Strategic Marketing. 25(4). pp.301-315.
Mcmullan, R. W. E. and Kenworthy, T. P., 2016. Creativity and entrepreneurial performance. Springer International Pu.
Lechner, C. and Gudmundsson, S. V., 2014. Entrepreneurial orientation, firm strategy and small firm performance. International Small Business
Journal. 32(1). pp.36-60.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Richter, C., Kraus, S. and Syrjä, P., 2015. The Smart City as an opportunity for entrepreneurship. International Journal of Entrepreneurial
Venturing. 7(3). pp.211-226.
Hisrich, D.R. and Ramadani, V., 2017. Effective entrepreneurial management. Strategy, Planning, Risk.
Green, T., 2015. Flipped classrooms: An agenda for innovative marketing education in the digital era. Marketing Education Review. 25(3).
pp.179-191.
Chetty, S., Ojala, A. and Leppäaho, T., 2015. Effectuation and foreign market entry of entrepreneurial firms. European Journal of Marketing.
49(9/10). pp.1436-1459.
Lisboa, A., Skarmeas, D. and Saridakis, C., 2016. Entrepreneurial orientation pathways to performance: A fuzzy-set analysis. Journal of business
research. 69(4). pp.1319-1324.

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