Analysis of Entrepreneurship and Sustainability Issues

The provided document is a solved assignment that delves into the concept of entrepreneurship, its process, and its significance in addressing sustainability issues. It includes a discussion on various research papers and books related to entrepreneurship, sustainability, and quality management. The assignment also presents a table with ratios related to the company ABC, providing insights into its financial performance and liquidity position. A conclusion is drawn from the analysis, suggesting that effective management strategies are necessary for the company to achieve sustainability in the marketplace.

Entrepreneurship
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Characteristics that need to be evaluated for efficaciously implementing business plan.......3
Evaluate the niche market by scrutinising the industry, the client needs and competition....4
Operational and financial needs of business enterprise..........................................................5
Identification of most suitable record keeping framework and applicable reporting structure6
Job description that attracts right people in line with business growth plan..........................7
Academic model in determining pertinent measures required to target specific business needs
................................................................................................................................................7
Development and marketing of product or service that addresses the needs of clients better
than competition.....................................................................................................................8
How Growth or liquidity to be sustained for long terms........................................................9
What needs to change in research in changing requirements to turn business plan into
successful business venture..................................................................................................12
Requirements of entrepreneur for improving one skills.......................................................13
Probability of success in a rapidly changing business environment ...................................14
Best Use of resources available ...........................................................................................15
CONCLUSION.............................................................................................................................15
REFERENCES..............................................................................................................................17
Appendices....................................................................................................................................18

INTRODUCTION
Entrepreneurship can be defined as an activity of setting up the venture through taking
financial risks in hope of earning profitability. Whereas, management is an administration that is
used for managing or arranging things appropriately. Apart from that, entrepreneurship
management is a process of managing or administrating all things for establishing business
venture in a particular sector of market. Chosen organisation for this report is ABC restaurant
that is situated in Malta and was established five years ago. Along with this, an another
organisation is taken whose name is A-one that will be established in upcoming period of time in
Malta. This report will discuss about the main characteristics that are needed for effectively
implementing the business plan. This business plan will includes PESTLE, SWOT, Porter's five
force model that will supports the owner of entrepreneur in competing the rivals. Along with it,
an idea of organisational structure will also provided to entrepreneur that will beneficial for them
in overcoming the conflicts and issues from workplace.
Main Body
Characteristics that need to be evaluated for efficaciously implementing business plan
Main characteristics that are required by entrepreneur of ABC for effectively
implementing the business plan. Some of them are described as below:
Making of Risk Management Plan – Risk can be occurred at anytime while business
plan is ongoing therefore, risk management plan should be formulated effectively by
entrepreneurs so that business plan can be implemented in efficaciously.
Time management – It is also an essential characteristic that is required by entrepreneur
for making business plan efficacious as without managing time aspects of business plans can't be
carried out effectively.
Developing of Budget – Estimation of funds is mainly required while developing
business plan because without it the activities or functions of business plan will not be carried
out effectively that automatically leads the business plan towards failure.
Allocation of resources – Entrepreneurs should allocate each resources i.e. financial,
human, technical etc. effectively so that desired goals can be achieved after completion of
business plan (Windrum, 2018).

Maintaining balance between personal and professional life – This is the main
characteristic that leads the business plan towards efficacious as if entrepreneurs of ABC will
engage in their personal duties then how could the desired goals will be accomplish. Therefore,
it is important to make good balance between personal and professional life.
Clear objectives – Before starting work on business plan it is very important for
entrepreneur to set clear goals or objectives that have to achieved after implementing business
plan. This goals may be related with huge customer base or market-share etc.
Monitoring or regulating each activity – This is last but not least characteristic of
entrepreneur that is required by entrepreneurs for making business plan efficacious because
without monitoring or regulating each activity organisation will not get desired success.
From the above discussed characteristics, it has been identified that entrepreneurs who
wants to establish A-one restaurant in upcoming period have to analyse these features and
characteristics effectively as it will support them in making growth and success of newly
introduced restaurant in Malta.
Evaluate the niche market by scrutinising the industry, the client needs and competition
For sustaining effectively in the hospitality industry of Malta, It is very essential for
entrepreneurs of ABC to analyse the level of competition in the hospitality sector of Malta so
that suitable actions can be taken for the same. For analysing the competition level in Niche
market along with identifying customer's needs, entrepreneurs of ABC should conduct Porter's
Five force model that is discussed as below:
 Threat of new entrant – Threat of new entrant in hospitality business is lower as huge
amount of funds are required for establishing venture in hospitality sector of Malta.
However, ABC restaurant is already established and providing services in Malta
therefore, this factor can provide support to entrepreneurs in satisfying the needs of
customers in niche market.
 Bargaining power of Supplier – This force can effect the profitability of firm when
there are few number of suppliers are present in a particular sector. Apart from that, less
number of suppliers are present in hospitality industry due to which force of this factor is
high in hospitality sector of Malta (Sarasvathy,and Venkataraman, 2017). Therefore,
Entrepreneurs of ABC should analyse this factor that can effect their profitability or
sustainability in adverse manner.

 Bargaining power of buyer – Buyers are the backbone of each organisation because
without satisfying their needs any organisation can't take growth and success in market.
In hospitality sector, several restaurants are exist in Malta and providing same food
products and valuable services at less prices as compare to ABC in Niche Market. In
order to overcoming this impact, entrepreneurs of restaurant should make attractive
pricing strategies so that customers will attracted towards offering of firm.
 Threat of substitute – Threat of this factor is also high in hospitality sector of Malta
because each player of this industry is offering same services or food products to
customers in less prices due to which original food products offerer is facing loss in
market. For handling this kind of threat, owners of ABC should provide services on the
basis of service-orientation instead of profit-orientation. Through adopting this strategy
threat will be overcome effectively.
 Rivalry among existing competitor – Competition is increasing regularly in hospitality
industry due to availability of large number of firms. These organisations are competing
each other so that high market share can be grab in hospitality sector. Entrepreneurs of
ABC can handle this force through making differentiation in their product range and
service quality so that through satisfying the needs of customers at Niche market more
market share can be grabbed.
From the above informations, it has been identified that analysis of this model is very
important because without this actual position of restaurant can't be identified by the
entrepreneurs in Market. With the help of this model, entrepreneurs of A-One restaurant will be
able in identifying and serving the services as per the needs of customers which will be help
them in grabbing good sustainability in marketplace (Naudé and Scarborough, 2014).
Operational and financial needs of business enterprise
For carrying out the business operations effectively it is very important for entrepreneurs
of ABC restaurant to allocate each resources effectively so that operational or financial needs
can be fulfilled effectively which can leads the firm towards high customer base and market-
share. Description of operational and financial needs are mentioned beneath:
Operational needs- These needs can be defined as identification of essential capabilities
that are required to acquire for carrying out the business functions effectively along with
removing deficiencies from business operations. Some of these needs are defined as below:

Talent – Talent can be defined as an ability or skill of individuals who provides unique
ideas for the firm so that desired goals can be achieved in given time-frame. In context of ABC,
Owners of ABC restaurant should provide effective training to their employees so that their
ability can be improved which ultimately leads towards growth and sustainability of firm.
Systems – In modern hospitality sector, advanced systems are essentially required
because without them organisation can't satisfy the needs and demands of customers in quick
manner. Therefore, entrepreneurs of ABC should implement these systems so as to improving
the working ability of employees.
Financial needs – It can be defined as those requirements which are essential for
carrying out the business operations without difficulty. Some kind of these needs are described
as below:
Fixed capital: Funds which are used for purchasing fixed assets are known as fixed
capital. For e.g. Entrepreneurs of ABC restaurant have spend funds for acquiring building,
machinery or warehouses so that they can carry out their future functions.
Working capital: It can be defined as estimation of funds that are required for meeting
with expenses or carrying out the business operations for a specific time-frame (Markman and
et.al., 2016).
Through managing all these operational and financial needs, entrepreneurs of A-one
restaurant will be able in successfully establishing their business in Malta.
Identification of most suitable record keeping framework and applicable reporting structure
Record keeping framework can't be considered as an automated system that keeps all
data or informations in a single place whereas, it is a description which defines all activities that
organisation is performing for maintaining their records under control. Best suitable framework
for record keeping is Information governance that can be adopted by ABC restaurant for keeping
their record under control and use the information when it requires. This framework is essential
for adopting by ABC restaurant because it will not only helps in accessing informations quickly
but also supports them in reducing handling costs.
Reporting structure can be defined as the authority relationship in an organisation that
is based on who report to whom. In an small organisation where small number of employees are
working have to report directly to owner. There are several reporting structure that are followed
by most of business organisations such as vertical and horizontal. In vertical, Hierarchical

positions are formed by management in which information is flowed from top to lower level
management. Whereas, In horizontal reporting structure reporting is done between divisional
members. Both of these reporting structure are supportive in nature and helps the management of
ABC restaurant in making decisions for growth and sustainability of firm.
From the above record keeping structure and reporting structure, it has been recommended to
the entrepreneurs who will be introduce new restaurant in Malta that they should adopt these
structures within their restaurant so that desired sustainability can be achieved by them.
Job description that attracts right people in line with business growth plan
Job description can be defined as a document that is formed by organisation for attracting
candidates for a specific job role. It generally comprises of responsibilities, roles or working
conditions of a job that defines job duties which have to adhere by candidate after getting job. In
ABC, digital marketing manager is required so that restaurant can provide food offerings to the
desired customers on their location. This will automatically supports the organisation towards
growth and sustainability. Sample of job description is given as below:
Job Title: Digital Marketing Expert
Job family: Marketing
Reports to: BOD or top-management
Role responsibilities:
 Plan campaigns for digital marketing along with social media, digital advertising or
email.
 To be responsible for developing or executing the digital marketing strategy of firm.
 Maintaining good relations with other firms of same industry.
 To review technologies and identify new development so that better services can be
developed by organisation for future period of time.
 Enhancing brand awareness within digital space along with driving website traffic to
acquire leads among customers and competitors.
 Building good presence of organisation towards online advertisements, social media
channels etc.
Requirements:
 High experience of digital techniques is required so that needs of targeted customers can

be fulfilled effectively.
 Masters degree in digital marketing is required.
Academic model in determining pertinent measures required to target specific business needs
There are some effective academic model that can be used by entrepreneurs of ABC
restaurant for analysing the factors which may influence their growth and sustainability. Along
with this, effective measures are also important to take so that desired business needs can be
fulfilled effectively (Luchsinger and Bagby, 2017). For this, entrepreneurs can chose SWOT as
it will assist them in identifying strength, weaknesses along with threats or opportunities of
market which will beneficial in taking measures for fulfilling specific business needs. SWOT
model is defined as below:
Strength Weaknesses
 Good ambience is provided by firm to
its customers due to which strong brand
image is maintained by firm.
 Wide range of food offering like Thai,
Mexican, Chinese etc. have made its
strengthen in market.
 Due to high dependency on traditional
models of service providing
profitability of firm is decreasing
regularly
 Poor management structure is also
reducing the brand image of firm.
Opportunities Threats
 Restaurant can adopt digital marketing
tools for spreading their offerings in
large market area.
 Presence at online websites can
improve customer base and
profitability of firm in future.
 Increasing of competition in hospitality
can become threat for the profitability
of firm.
 Changing in demands and needs of
customers can provide threat on the
current growth and success of
restaurant.
From the above model, it has been recommended to the entrepreneurs that they should
consider these threats and weaknesses properly because if they will not make focuses on it then
it will directly impact on the introduction of restaurant. Therefore, it is very important for them
to make emphasise on opportunities and make their working structure accordingly so that these
benefits can be achieved by them easily.

Development and marketing of product or service that addresses the needs of clients better than
competition
From the previous discussed informations it has been analysed that ABC is a restaurant
that is providing food and drinks services in hospitality industry of Malta. Its offering comprises
of Mexican, Thai, Chinese, Italian etc. But in modern scenario, many problems are facing by
restaurant owners that are related with sales figures and customer base of firm because due to
dissatisfying services and lower level of experience of employees customers are not preferring to
enter within the premises of organisation. By considering this informations, entrepreneurs of
ABC have decided to take support of digital marketing tool so that their products can be reach in
wide area of market without any difficulty. But some extra modifications are required that
should be implemented by entrepreneurs for making growth and sustainability of their venture.
For making success of this decision, management of entrepreneurs of ABC have to provide
training their employees so that their skills and efficiencies can be improved which
automatically assist the firm in raising its customer base and satisfaction level of customers.
Along with it, some modifications are also required within the food offerings of restaurant as old
offering can again dissatisfied the customers. Therefore, some innovations in existing products
are required through this management of ABC will be capture high customer base along with
profitability in marketplace. This decision will be beneficial because it assist the restaurant and
its staff members in serving the needs of targeted customers effectively. For promoting new
offerings or modifications entrepreneurs of ABC have to adopt some effective promotional tools
such as TV advertisements, poster, hoardings etc. so that large number of customers can be
aware regarding the offering of firm. Apart from that, for targeting customers they have to make
effective strategies such as attractive or value pricing. Along with it, estimation of budget is also
required because without it expenses will not be managed which leads the firm towards failure.
Through carrying out all these functions, entrepreneurs of ABC will be able in addressing the
needs of customers successfully along with competing their rivals (Hitt and Duane Ireland,
2017).
How Growth or liquidity to be sustained for long terms
Balance Sheet of ABC for the year ended 2018-19 -
Particulars Amount
Assets

Current assets
Cash and cash equivalents 683
Receivables 1657
Inventories 6011
Prepaid expenses
Other current assets 355
Total current assets 8706
Non-current assets
Property, plant and equipment
Land 2080
Fixtures and equipment 12620
Other properties 1892
Property and equipment, at cost 16592
Accumulated Depreciation -8184
Property, plant and equipment, net 8408
Equity and other investments 748
Goodwill 13491
Intangible assets 4369
Deferred income taxes 692
Other long-term assets 519
Total non-current assets 28227
Total assets 36933
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1159
Accounts payable 6541
Deferred income taxes 299
Other current liabilities 2026
Total current liabilities 10025
Non-current liabilities

Long-term debt 2965
Pensions and other benefits 167
Other long-term liabilities 1022
Total non-current liabilities 4154
Total liabilities 14179
Stockholders' equity
Common stock 22234
Other Equity 296
Retained earnings 176
Accumulated other comprehensive income 48
Total stockholders' equity 22754
Total liabilities and stockholders' equity 36933
Interpretation - from the above final account of ABC, it has been identified that total
current asset of firm are 8706 pound that defines negative sign for the growth of firm. Whereas
current liabilities of restaurant are 10025 that should be overcome by entrepreneurs so as to gain
good growth in market.
Income Statement of ABC for the year ended 2018-19
Particulars Amount
Revenue 65512
Cost of revenue 45525
Gross profit 19987
Operating expenses
Sales, General and administrative 12850
Other operating expenses 3359
Total operating expenses 16209
Operating income 3778
Interest Expense 308
Other income (expense) -2432
Income before income taxes 1038
Provision for income taxes 631

Net income from continuing operations 407
Net income from discontinuing ops
Other
Net income 407
Net income available to common shareholders 407
Earnings per share
Basic 0.18
Diluted 0.18
Weighted average shares outstanding
Basic 2246
Diluted 2246
EBITDA 2461
Interpretation – It has been observed from the above statement that income from
operations are lower of ABC which can improve through effectively utilising the resources.
From the above financial accounts, it has been identified that entrepreneurs of A-One
restaurant should make effective plans and strategies like adoption of digital technologies,
effective pricing for products etc. for future so that growth or success can be acquired by them in
marketplace.
What needs to change in research in changing requirements to turn business plan into successful
business venture
Based on findings of research, it has been analysed that market trends are changing on
regular basis due to which Management of ABC have decided to make some changes in some of
the aspects of workplace. These changes along with impact are given as below:
Technological – Due to advancement of technology, customers in Malta prefers to eat
food on their own locations through using online platform. The company if not adopt these
online platforms several losses like reduction in sales figures, customer base, decreasing of profit
margin etc. will be faced by organisation which is not beneficial for brand image of firm.
Therefore, some major modifications like adoption of digital technology, advertisements of
modified menu cards etc. should be done by the management of ABC. So that customer base or
sales figures of firm can be maintained in marketplace.

Social trends – Customer's demands are uncertain in nature as these are highly based on
market trends due to which, it is influencing highly on the current offerings and sales figures of
firm. These modifications are highly required as without it customer's base of restaurant is
decreasing on regular basis. Due to this, management of ABC have decided to make some
modifications in their existing offerings or inventing new products so that large number of
customers can be attracted towards new offering of restaurant.
Market conditions – Market condition is also an important factor that should be
considered by entrepreneurs of restaurant otherwise it can impact on the growth and
sustainability of firm. For example- Fast food is more preferred by customers in market but
restaurant is not providing fast food offering in their outlets therefore, in this case management
of ABC have to face high loss. Therefore, it is very important for the managers of ABC
restaurant to conduct market research on regular basis so that current trends of market or
customer's needs can be identified effectively which indirectly leads the organisation towards
growth and sustainability in market.
From the above needs, it has been recommended to the entrepreneurs of A-ne restaurant
which is to be introduced in upcoming period of time that they should make changes in
techniques and offerings accordingly as per the market conditions. So that, desired growth and
sustainability can be achieved in marketplace.
Requirements of entrepreneur for improving one skills
There are different types of skills such as communication, problem solving, time
management etc. All these are consider major types of skills which need to be improve by an
entrepreneur within an organisation. All these skills are determined as under:
Communication skills: It introduces as an important and essential type of skills which
will be need to enhance by entrepreneur. This skill help an entrepreneur to communicate each
information about their business process, products and services to employees (Naudé, 2014). As
it will help them to accomplish long term goals and objectives within given time duration. For
this skills, entrepreneur should have accurate knowledge about different types of communication
channels such as social media, Instagram, etc. All these are consider best way which will
support an entrepreneur to communicate and transmit accurate information to their customers,
employees and many other stakeholders.

Management skills: It also introduces as a effective and main type of skills which should
be require by an entrepreneur to manage all tasks and activities within an organisation. Proper
management for business functions and activities will help an entrepreneur to achieve long term
goals and gain competitive advantages within ABC limited. For this, entrepreneur should
manage work of their employees and guide them to complete each activities as well as tasks
within given time duration.
Problem solving skills: It is another type of skills which must have an entrepreneur
because it will them in solving each issues within an organisation (Sarasvathy and
Venkataraman, 2011). If ABC limited faced conflict issue and communication barrier,
entrepreneur must have this skills. As it will also help them to increase productivity and
profitability of their business in easy manner.
These skills are very essential as the entrepreneurs of A-one have acquire it so as to
making growth of restaurant which will be introduced in upcoming period of time.
Probability of success in a rapidly changing business environment
The business environment is constantly changing or modifying which will directly
influence on business growth and success. Competition comes and goes, technology changes,
economic conditions change, there are always unique laws and regulations to comply with. All
these are consider major challenges which will directly impact on business environment of ABC
limited. In order to manage such type of change, some suggestion will be provided to an
organisation which are determined as under:
 Company should conduct market research which will help them in identification of
market condition, customer's needs and wants (Scarborough, 2016). All these are
possible with the help of market research. Thus, it is most significant and essential part
for ABC limited to enhance their success and growth within given time duration.
 Technology is other main change which will effect on business development and growth
in negative manner. In order to overcome cha type of change, company should adopt
different types of training and development program which will help them in managing
technology change. As it will also assist an entrepreneur to accomplish long term
objectives within given time duration.
 Government rules and regulation is another change within business environment of ABC
limited. This change direct effects on business operations as well as functions on an

organisation. In order to overcome such kind of change, Company should previous do to
study about rules and regulations of those country where they implement their business
operations and functions.
Best Use of resources available
There are different types of resources such as physical resources, human resources,
intellectual resource and so on. All these are consider major type of resources which will be
require by entrepreneur to enhance their business growth and success within given time duration.
These resources are needed by an entrepreneur to implement their business plan in an effective
and systematic manner.
Human resource: This is a main resource which is needed by an entrepreneur to develop
their business functions and operations successfully (Windrum, 2010). For this, ABC need to
hire knowledgeable and skilled people which will help an organisation to accomplish long term
goals and objectives within given time period.
Physical Resources: ABC limited needs different resources, whether it's money, time,
supplier and people. the physical resources covers tangible items that are more needed and
available for a ABC to functions. Physical resources are essential for each types of organisation.
Product-based enterprise use physical resources for giving the products for marketing and for the
operation or functions of the organisation. Service-based enterprise use physical resources to
assist the delivery of the facilities, such as having an accurate space to work, techniques that are
required for the service, as well as resources required to help the service (Burton, Sørensen and
Dobrev, 2016).
Intellectual resource: These are non-physical as well as intangible resources include
brand, patents, copyrights, IP, and even partnerships. Customer knowledge, Customer lists and
even their own people, represent a type of intellectual resource. All these are main resources
which will be needed by entrepreneur to do their business in more successful manner.
CONCLUSION
From the above discussed report, it has been concluded that entrepreneurship
management is an important aspect that provide understanding in the entrepreneurs regarding the
changes or modifications that should be required for surviving in marketplace. Characteristics of
entrepreneurs are also essential because it supports in making business plan efficacious.

Operational and financial need should be fulfilled by entrepreneurs effectively because it can
pose impact on the overall growth and profitability of firm. Along with it, effective use of
resources can provide support the entrepreneurs in taking growht and sustainability.

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