Entrepreneurship Development

This document provides an overview of entrepreneurship development and its significance in starting new businesses. It discusses the customer value proposition canvas and 'lean' business model canvas. It also covers the detailed development plan, marketing plan, operational plan, technical solution and information technology plan, and human resource and organization plan.

Entrepreneurship
Development

Table of Contents
Introduction......................................................................................................................................1
Business objectives..........................................................................................................................1
Customer value proposition canvas.................................................................................................2
‘Lean’ Business Model Canvas.......................................................................................................4
Detailed Development Plan.............................................................................................................6
The Marketing plan.....................................................................................................................6
The operational plan....................................................................................................................7
The technical solution and information technology plan............................................................8
The human resource and organisation plan.................................................................................8
Possible future developments or changes in direction.....................................................................9
Summary........................................................................................................................................10
REFERENCES..............................................................................................................................11

Introduction
Entrepreneurship is the ability as well as readiness to develop, organize as well as run an
enterprise along with any uncertainties for generating revenue. Moreover, prominent illustration
of entrepreneurship is starting new businesses (Hayter, 2016). Apart from this entrepreneur is
explained as someone who have ability and desire to establish, administer and success within
start-up venture along with risk entitled for generating revenue. Entrepreneur are the risk taker as
well as they always come in market with something innovative that can be idea, though or
product. Motive behind this is to gain long term sustainability, generating high revenue and
making customer satisfy.
This report is based on new venture which is named as S H Flowers that is online florist.
They deal in several type of flowers as individual can place order for sending flowers to their
family, friend and loved once. Thus, respective business idea will grab large number of
customers because now a days everyone like to express their feeling and love through flowers.
Along with this respective report will going to discussion business idea as well as its objectives.
Moreover, customer value proposition canvas and lean business model can will also elaborate
(Ayoade and Agwu, 2016). In addition to this, lean business model canvas and detailed
development plan will be going to discuss. Furthermore, possible further development or change
in direction will discuss along with summary in end of report.
Business objectives
Every organisation have some objective which they want to accomplish within required
duration in effective manner. In relation of S H flower they also have some objectives which are
profit, sales revenue and profit margin. Explanation of these are as follows :-
 Profit – Every business firm work for profit and for which they always try to make
customer satisfy because it help them in generating high profitability. In addition to this,
profit is lifeblood of business without this no organisation can survive within competitive
market for long term (Lindh, 2017). Thus, profit must be earned for survival of business
as well as its growth and expansion over time. For first year profit will be remain at break
even which simply means no profit no loss.
 Sales revenue – It is the amount realized by a business from the sale of goods or
services. The two words can be used interchangeably, since they mean the same thing.
1

This figure is used to define the size of a business. The concept can be broken down into
two variations, which are: Gross sales revenue and Net sales revenue. Sales revenue is
typically reported for a standard period of time, such as a month, quarter, or year, though
other non-standard intervals can be used. In relation of S H flowers sales revenue will be
high and production cost low so it will result in no profit no loss situation for company.
 Profit margin - The profit margin is a ratio of a company's profit (sales minus all
expenses) divided by its revenue. The profit margin ratio compares profit to sales and
tells you how well the company is handling its finances overall. It's always expressed as a
percentage. In relation of S H flower, profit margin will remain 10%.
Customer value proposition canvas
Value proposition canvas is tool that provide assistance for ensuring that products and
services is positioned around what customer values as well as needs. This model was developed
by Alexander Osterwalder for ensuring that there is fit within product as well as market (Kruger
and Steyn, 2019). In addition to this, customer value proposition canvas is detailed relation in
two parts of Osterwalder's broader Business Model canvas: customer segments and value
proposition. In simple term it can be said that, Value proposition Canvas can utilise when there is
requirement of refining existing products and services offering as well as offerings of something
new developed from scratch. In relation of S H Flower company value proposition are as follows
:-
2

Customer profile
 Customer jobs – This represent task which clients require to be done as well as it include
problems which they are trying to resolve and also need or wants which trying to be
satisfied.
 Customer Gains – They are simply opposite of pains as well as it explain results and
advantages which customers expect or would get surprised through products and services.
 Customer Pains – It is related to individual pain and company can identify problems,
situation and negative emotions which customer may face while satisfying their needs
and wants in better manner (Margalit and Alfasi, 2016).
Value Proposition
 Products & services – This section include offerings of company in relation to S H
Flowers they are offering variety of flowers, chocolates as well as cakes. It is important
for an business firm to ensure that their offerings should be attractive and result in
grabbing attention of several people within effective manner.
 Gain Creators – It outline in what manner services and products of company create gains
which customers desire.
 Pain Relievers – It will explain that how product and services of company alleviate the
problems or pain which customers try to accomplish. Moreover, for an business firm it is
important to identify pain of customers in better manner and make it resolve so that
company will able to relive their customers from pain.
Customer value proposition canvas provide assistance in systematic understanding of what
customer want as well as it creates products and services which matches their needs in perfect
3
Illustration 1: Customer value proposition canvas

manner (Maxwell and et. al., 2018). In addition to this, respective model gather information of
customers in easy manner which suits their requirement and allows more effective design of
business models. Moreover, Value proposition Canvas model result in profitability and not
wastage of time will be while developing ideas in which customers are not interested in it.
‘Lean’ Business Model Canvas
Business model canvas was introduced by Alexander Osterwalder which was based in his
earlier book i.e., business model ontology. In addition to this, respective model outlines nine
segments that form building blocks for business model canvas. In addition to this, Business
model Canvas reflect systematically business model reflect in systematic manner to business
model so that, business firm can focus on business model segment by segment. Along with this,
using business model canvas will result to insights in relation of customers to who company
serve, what value proposition they are offering by what channel as well as how business firm
will make or generate money (Li and DaCosta, 2016). Moreover, respective model can also use
by S H Flower Company for understanding their own business model or competitors also.
4

There are several factors which included within business Model Canvas explanation of these in
relation of S H Flower Company are as follows :-
 Key partners – There are several key partners of S H flower company which is online
florist such as Flower suppliers, couriers, creditors, investors as well as suppliers
(Chipfupa and Wale, 2018).
 Key activities – Respective online florist conduct several activities such as managing
flower bouquets, managing social media accounts, customer services and negotiating
with partners.
 Key resources – For conducting daily basis operations of an organisation there is
requirement of several resources such as dedicated development team designer, investors,
contracts and strategies.
 Value proposition – There are several value proposition of S H Flower such as birthday
blooms discounts, free initial consulting, flower decoration services and hand tie bouquet.
5
Illustration 2: Business Model Canvas

 Customer relation – It is important for an business firm to maintain good relation with
their customers for this purpose S H flower conducting several customer relation
activities such as customer services, personal relationships and provide for special need.
 Market channel – There are several marketing channel but for an organisation it is
important to select appropriate marketing channel which help in attracting large number
of customers in better manner (Esposito, 2018). In relation of S H Flower they are using
mainly two market channel such as social media and company site visit.
 Market and customer segmentation - Before serving goods and services to customers it is
essential for an organisation to segment market as well as customers in proper manner to
whom they want to serve. Thus, S H Flower company are segmenting event company as
well as people who come under 15 to 30 years age group. After determining them they
will be able to serve them in better manner as well as make their needs and wants satisfy.
 Cost structure – It is essential to select proper cost structure for working of company so
that things will manage in effective manner as per the requirement (Kumar, 2017). In
relation of S H flower company several cost will incur such as flowers and their
packaging, couriers fee as well as salary.
 Revenue stream and pricing model – It include delivery services (RM15/delivery), sales
(RM5 and above) and decoration services (RM20 and above).
Detailed Development Plan
The Marketing plan
Marketing plan is report which outline marketing strategy of an business firm for coming
year, quarter or month. In addition yo this, it outlines an advertising strategy which business firm
will implement within their working for generating leads and reaching target market (Ataman
and et. al., 2018). In addition to this, S H flower is online florist conducting their operations in
United Kingdom. There marketing plan are as follows :-
Objectives – To introduce physical store of S H flower company in the market of
Romania within 8 months in order to enhance market share by 20%.
Market size – S H Flower company is small scale organisation which operating in UK
and have 5 employees.
6

STP model – It is well known strategic approach within modern marketing and STP
stands for segmentation, targeting and positioning (Carvalho,2017). Respective model is useful
for company when they are creating communications plan as it provide assistance to marketers in
prioritising proposition and then develop as well as deliver personalised and relevant messages
for getting engage with different audiences.
 Segmentation – S H Flower company divide their market into smaller segments for
understanding needs and wants of customers in better manner.
 Targeting - Key customers of S H Flower Company is personal buyers as well as
commercial accounts also like corporations, hotels corporations and many more.
 Positioning – By using proper marketing method S H flower will take position within
market as they are using social media tools well as their company website for gaining
better place.
The operational plan
Operational plan is highly detailed plan which provide clear picture that how team,
section as well as division will contribute in accomplishing goals and objectives of company
(Lowe and Feldman, 2017). In addition to this, operational plan maps daily basis task or project
which needed for running business in effective manner.
Vision – S H Flower Company want to be the brand people turn to when they are looking
for ways to make someone's day special. When people want to send flowers, cake, chocolates
respective company want to be their first thought. Not only because of S H Flower Company
guaranteed quality offering and obsession with customer service, but because they are kind,
trustworthy and truly give a damn. And not because they say to give a damn, but show we give a
damn - through mindful and sustainable practices.
Mission – S H flower Company mission include several things which are mention
below :-
 Serve to each and every customer equally
 Work for promoting honesty and justice every time.
 Respect dignity of each and every clients.
 Most important is to have good communication skills.
Key to success - There are numerous strategies which S H Flower Company use for
gaining successful place within business environment. Explanation of these are as follows :-
7

 Introduce product and services to customers by using several ways of marketing.
 Hiring staff who are responsible as well as they can respond in effective manner for
handling task in proper manner.
 Offering high quality product and services.
 Building good relation within employees and employers as well as including clients and
agents.
The technical solution and information technology plan
Technical planning simply means that business firm have to ensure that needs as well as
wants of their customers, stakeholders and investors are getting fulfilled within effective manner.
In addition to this, for an business firm it is important to focus on these area because they are
important part of company and result in growth and development of S H Flower Company. In
simple term it can be said that establishing detailed technical plans will accomplished only when
needs as well as expectations of stakeholders will transfer in proper manner within achievable
software set requirements.
Information technology plan is important for S H Flower company because it is online
business as they require more technology for conducting business operations in effective manner
and also accomplishing goals and objectives (Kumar and Borbora, 2017). In addition to this,
technology provides various tools to entrepreneur as with the assistance of this they can guide
their new company through start-up and also at growth stage. Moreover, small business
marketing, accounting and communication will revolutionized through advancement within
computer, communication technology, network as well as businesses within range of industries
continually adapting for taking full advantages of technology development.
The human resource and organisation plan
S H Flower is small scale business and their growth strategy is market development for
this purpose it is important for them to hire more employees. So they will able to expand their
business in effective manner and accomplish goals and objectives. In addition to this, human
resource planning is important activity within an business. Thus, it involve workforce planning,
employee development plan, building employees salary and benefits programs, training and
development as well as hiring and firing employees. Human resource include planning for
several goals such as :-
 Workforce planning
8

 To be learning organisation
 To reduce employees turnover and enhance employees retention
 To be recognized as preferred employers
 employees will have safe as well as supportive workplace.
Possible future developments or changes in direction
Ansoff matrix is called as Product/market expansion grid which an organisation use for
analysing and planing their strategies for growth. It will provide assistance to S H Flower in
possible future developments or change in direction as well as at present company is using
market penetration and for further development they need to focus on something new.
Explanation are as follows :-
 Market penetration – It focus on enhancing sales of existing product and services
within existing market. At present S H Flower Company is using market penetration
which help them in serving within UK in effective manner.
 Product development – It focus on introducing new product within existing market area.
 Market development – According to this strategy company focusing on entering in new
market by using their existing products and services (Ngcobo and Keswa, 2017). Thus,
for further development S H Flower Company will use market development as an
strategy. As they will expand business in other nation which result in their further
development and gaining advantages.
 Diversification – In this company focusing on entering within new market by
introducing new products. Diversification may be risky for company because in some
chances may be customers not like new offerings of company.
In relation of S H flower Company they are presently using market penetration strategy in that
they focus on enhancing sales of their present products in existing market area. For further
development, respective organisation use market development as an strategy in which they will
focus on expanding their business by entering in new market with existing products and services.
Summary
For starting a business there is requirement of finance because it include several activities
and required various resources also for starting business and conducting activities in better
9

manner. In relation of S H Flower which is online florist invest 40% finance by their own and
remaining 60% from Angle investors. Main reason behind selecting angle investor is that they
are more favourable as compare to other lenders. Moreover, they generally invest in entrepreneur
starting business instead of the viability of business. In addition to this, angle investors focus on
providing assistance to start-ups while they are taking their first step, instead of possible profit
which they get from business. In simple term it can be said that, Angle investors are opposite of
venture capitalists.
Angle investor is also known as seed investor, private investor and angel funder. They are
the high net worth individual who offer financial backing for entrepreneur or start-ups, mainly in
exchange of ownership equity within business firms. In addition to this, angel investors are
founded within family and friends of an entrepreneur through which S H Flower Company will
be able to gather funds in effective manner as well as start their venture. Moreover, funds which
provided through angel investors are simply one time investment for providing assistance to
business in supporting and conducting activities of company through their difficult early stages.
Thus, by taking funds from Angle investors H flower company will able to start their business in
effective manner as well as accomplish required goals and objectives properly.
10

REFERENCES
Books and Journals
1. Hayter, C. S., 2016. Constraining entrepreneurial development: A knowledge-based view
of social networks among academic entrepreneurs. Research Policy. 45(2), pp.475-490.
2. Ayoade, E. O. and Agwu, P. E., 2016. Employment generation through entrepreneurial
development: The Nigerian experience. British Journal of Economics, Management &
Trade. 11(3), pp.1-14.
3. Lindh, I., 2017. Entrepreneurial development and the different aspects of reflection. The
International Journal of Management Education. 15(1), pp.26-38.
4. Kruger, S. and Steyn, A. A., 2019. Enhancing technology transfer through
entrepreneurial development: practices from innovation spaces. The Journal of
Technology Transfer, pp.1-35.
5. Margalit, T. and Alfasi, N., 2016. The undercurrents of entrepreneurial development:
Impressions from a globalizing city. Environment and Planning A: Economy and Space.
48(10), pp.1967-1987.
6. Maxwell, O. A. and et. al., 2018. Entrepreneurship curriculum contents and
entrepreneurial development of university students in Nigeria. International Journal of
Entrepreneurship. 22(1), pp.1-9.
7. Li, Y. and DaCosta, M. N., 2016. The enterprise reforms and entrepreneurial
development in China. Journal of the Asia Pacific Economy. 21(2), pp.151-173.
8. Chipfupa, U. and Wale, E., 2018. Farmer typology formulation accounting for
psychological capital: Implications for on-farm entrepreneurial
development. Development in Practice, 28(5), pp.600-614.
9. Esposito, G. F., 2018. Development policies for lagging behind areas: an interpretative
note in the name of civil entrepreneurial development. The International Journal of
Economic Behavior-IJEB, 8(1), pp.33-45.
10. Kumar, K. N., 2017. Microfinance for entrepreneurial development: Study of women’s
group enterprise development in India. In Microfinance for Entrepreneurial
Development (pp. 53-71). Palgrave Macmillan, Cham.
11. Ataman, K. and et. al., 2018. Green Entrepreneurship: An Opportunity for
Entrepreneurial Development in Nigeria. Covenant Journal of Entrepreneurship (Special
Edition), 1(1).
12. Carvalho, L. C. ed., 2017. Handbook of Research on Entrepreneurial Development and
Innovation Within Smart Cities. IGI Global.
13. Lowe, N. J. and Feldman, M. P., 2017. Institutional life within an entrepreneurial
region. Geography Compass, 11(3), p.e12306.
14. Kumar, G. and Borbora, S., 2017. Institutional Environment Differences Across the
Indian States for Entrepreneurial Development. Review of Integrative Business and
Economics Research, 6(4), pp.50-69.
15. Ngcobo, S. and Keswa, S., 2017. Exploring graduates' governance perceptions of
entrepreneurial development opportunities in agriculture. Journal of Public
Administration, 52(3), pp.576-588.
11

Appendix 1
Market size - S H Flower company is small scale organisation which operating in UK and have 5
employees.
Market growth - In relation of S H flower Company they are presently using market
penetration strategy in that they focus on enhancing sales of their present products in existing
market area. For further development, respective organisation use market development as an
strategy in which they will focus on expanding their business by entering in new market with
existing products and services.
Segment – Key customers of S H Flower Company is personal buyers as well as
commercial accounts also like corporations, hotels corporations and many more.
Competitors – In UK there are several florist who are competitors of S H Flower
company such as Interflora, Waitrose florist and many other.
Key partners – There are several key partners of S H flower company such as investors,
flower suppliers, creditors, couriers and so on.
Marketing channels – They are mainly using two market channel for attracting
customers in effective manner i.e., company site and social media tools.
Job description -
12

Appendix 2
Fixed costs
(In £)
Variable
costs (In £)
Fixed costs
(In £)
Variable
costs (In £)
1st year 2nd year
Online application
development 3000 0
Salary to staff 15000 15000
Promotional cost 500 300
Licensing charges 400 250
Insurance cost 1200 1200
Raw material
(flowers) 35000 55000
Packaging cost 4500 6000
Labour charges 1000 1800
Other costs 500 700
Subtotal 20100 41000 16750 63500
Total 61100 80250
Revenue
stream for first
three years
Number of
flower orders
per day
Price per order Total revenue of
week
Total yearly
revenue (48
weeks)
1st year 200 8 11200 537600
2nd year 250 8 14000 672000
3rd year 300 8 16800 806400
13

Assumptions:
 The number of flowers order per day has been assumed.
 Number of weeks in a year is also assumed.
 Sales price
Appendix 3
BEP: Fixed cost/contribution per unit
Contribution per unit: Sales price-variable cost per unit
= 8-4
= 4
1st year: 20100/4
= 5025 Units
2nd year: 16750/4
= 4187.5 Units
3rd year: 16750/4
= 4187.5 Units
Cash flow analysis table
1st
year 2nd year 3rd
year
No. Sales 67200 84000 10080
0
Selling price £8
Sales revenue 53760
0 672000 80640
0
14

Cash Budget for 3 years
Receipts (cash inflow)
Cash sales 53760
0 672000 80640
0
Investment
Payments (cash outflow)
Online application
development 3000 0 0
Salary to staff 15000 15000 15000
Promotional cost 500 300 300
Licensing charges 400 250 250
Insurance cost 1200 1200 1200
Raw material (flowers) 35000 55000 65000
Packaging cost 4500 6000 6800
Labour charges 1000 1800 2200
Other costs 500 700 900
Cash balance 47650
0 591750 71475
0
Opening balance 0 476500 10682
50
Closing balance 47650
0
106825
0
17830
00
15

16

Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
Debtors $18,000
Stock $3,120
Total Current Assets $26,220.00
Non-current Assets
Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000
Total Non-current Assets $28,600
Total Assets $54,820
Current Liabilities
Credit Card $5,500
Creditors $4,120
Total Current
Liabilities
$9,620
Non-current Liabilities
Total Non-current Liabilities
Total Liabilities $9,620
Net Assets $45,200
Shareholders’ Equity
Owners’ Funds $40,000
Current Year Profit $5,200
Total Shareholders' $45,200
17

Equity
18

Month
Pre
-
Sta
rt
mon
th 1
mo
nth
2
mo
nth
3
mo
nth
4
mo
nth
5
mo
nth
6
mo
nth
7
mo
nth
8
mo
nth
9
mo
nth
10
mon
th
11
mon
th
12
Tota
l
INCOME
Cash Sales
1,50
0.00
1,6
72.
50
1,86
4.84
2,07
9.29
2,3
18.
41
2,5
85.
03
2,88
2.31
3,2
13.
77
3,58
3.36
3,99
5.44
4,45
4.92
4,96
7.24
35,1
17.1
1
Credit Sales
750.
00
836
.25
932.
42
1,03
9.65
1,1
59.
21
1,2
92.
52
1,44
1.15
1,6
06.
89
1,79
1.68
1,99
7.72
2,22
7.46
2,48
3.62
17,5
58.5
6
Business Loans
10,0
00.0
0
10,0
00.0
0
Income from
other sources
1,20
0.00
1,3
38.
00
1,49
1.87
1,66
3.44
1,8
54.
73
2,0
68.
02
2,30
5.85
2,5
71.
02
2,86
6.69
3,19
6.36
3,56
3.94
3,97
3.79
28,0
93.6
9
Opening
balance 0.00 0.00
0.00
Total
£13,
450.
00
£3,
846
.75
£4,2
89.1
3
£4,7
82.3
8
£5,
332
.35
£5,
945
.57
£6,6
29.3
1
£7,
391
.68
£8,2
41.7
2
£9,1
89.5
2
£10,
246.
32
£11,
424.
64
£90,
769.
36
19

Cash Purchases
1,10
0.00
1,2
26.
50
1,36
7.55
1,52
4.82
1,7
00.
17
1,8
95.
69
2,11
3.69
2,3
56.
77
2,62
7.80
2,92
9.99
3,26
6.94
3,64
2.64
25,7
52.5
5
Stock
350.
00
390
.25
435.
13
485.
17
540
.96
603
.17
672.
54
749
.88
836.
12
932.
27
1,03
9.48
1,15
9.02
8,19
3.99
Drawings
200.
00
223
.00
248.
65
277.
24
309
.12
344
.67
384.
31
428
.50
477.
78
532.
73
593.
99
662.
30
4,68
2.28
Wages/Sub
Con.
300.
00
300
.00
300.
00
300.
00
300
.00
300
.00
300.
00
300
.00
300.
00
300.
00
300.
00
300.
00
3,60
0.00
Rent
350.
00
350
.00
350.
00
350.
00
350
.00
350
.00
350.
00
350
.00
350.
00
350.
00
350.
00
350.
00
4,20
0.00
Miscellaneous
100.
00
100
.00
100.
00
150.
00
150
.00
210
.00
210.
00
220
.00
230.
00
240.
00
250.
00
250.
00
2,21
0.00
Tools &
Equipment
(Capital Items)
5,70
0.00
10,0
00.0
0
15,7
00.0
0
Total
£8,1
00.0
0
£2,
589
.75
£2,8
01.3
2
£3,0
87.2
2
£3,
350
.25
£3,
703
.53
£14,
030.
54
£4,
405
.15
£4,8
21.6
9
£5,2
84.9
9
£5,8
00.4
1
£6,3
63.9
6
£64,
338.
83
Surplus/Deficit
£0.
00
£5,3
50.0
0
£1,
257
.00
£1,4
87.8
1
£1,6
95.1
5
£1,
982
.10
£2,
242
.04
-
£7,4
01.2
3
£2,
986
.53
£3,4
20.0
3
£3,9
04.5
3
£4,4
45.9
0
£5,0
60.6
8
£26,
430.
54
Balance @
Start
£0.
00
£0.0
0
£5,
350
.00
£6,6
07.0
0
£8,0
94.8
1
£9,
789
.96
£11
,77
2.0
£14,
014.
09
£6,
612
.86
£9,5
99.3
9
£13,
019.
42
£16,
923.
95
£21,
369.
85
20

5
Balance @
End
£0.
00
£5,3
50.0
0
£6,
607
.00
£8,0
94.8
1
£9,7
89.9
6
£11
,77
2.0
5
£14
,01
4.0
9
£6,6
12.8
6
£9,
599
.39
£13,
019.
42
£16,
923.
95
£21,
369.
85
£26,
430.
54
21