The Importance of Entrepreneurship Management

The provided document is a solved assignment on entrepreneurship management, discussing its significance in utilizing knowledge to enhance the effectiveness of business ventures. It outlines the main stages of the entrepreneurial process, including discovery, developing a business plan, resourcing, managing a company, and harvesting. The document also touches upon operational needs such as talent, system, and organisational culture, as well as financial needs like fixed capital and working capital.

Entrepreneurship
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main stages in the process of becoming a successful entrepreneur.......................................1
1.2 Main characteristics that need to be evaluated in order to efficaciously implementing
business plan................................................................................................................................2
1.3 Concepts, models and frameworks in addressing the identified weaknesses and building on
the recognised strengths...............................................................................................................3
TASK 2............................................................................................................................................4
2.1 Evaluation of niche market by scrutinising industry, client needs and competition.............4
2.2 Operational and financial needs of business enterprise.........................................................5
2.3 Identification of most suitable record keeping framework and applicable reporting
structure........................................................................................................................................5
2.4 Job description that attracts right people in line with business growth plan.........................6
2.5 Academic model in determining pertinent measures required to target specific business
needs............................................................................................................................................7
TASK 3............................................................................................................................................9
3.1 Development and marketing of product or service that addresses the needs of clients better
than competition...........................................................................................................................9
3.2 Liquidity or growth plan to ensure business sustainability..................................................11
3.3 Impact of research in changing requirements to turn business plan into successful business
venture........................................................................................................................................13
Task 4.............................................................................................................................................13
4.1 Contribution of feasibility study and business modelling in applying sound entrepreneurial
skills...........................................................................................................................................13
4.2 Ways entrepreneur can increase probability of success in rapid changing business
environment...............................................................................................................................14
4.3 Key tasks of operational management, growth management and sound financial
management...............................................................................................................................14
CONCLUSION..............................................................................................................................14

REFERENCES..............................................................................................................................16
APPENDICES...............................................................................................................................17

INTRODUCTION
Entrepreneurship management is the practice where entrepreneurs utilizes knowledge in
order to enhance effectiveness of small along with medium sized ventures. Such concept is an
important part bin the field of management for enthusiastic people who has an idea of innovation
as well as starting a new business. For understanding entrepreneurship management, Beewits is
selected (Audretsch and Caiazza, 2016). The idea of such company was conceived by Richard
Muscat Azzopardi. Such business is a small sized venture was founded in the year 2015 and and
is based on digital marketing agency. This present report includes main theories, issues, concerns
in relation to entrepreneurship. It further discusses about elements which are crucial for an
entrepreneur in order to achieve successful business. It further includes lessons learnt to re shape
the business in such way that remains successful in long term. Lastly, it includes importance of
various components at play at prior and following the launch of a new business for ensuring long
term sustainability.
TASK 1
1.1 Main stages in the process of becoming a successful entrepreneur.
Entrepreneurship is an ongoing activity in which certain procedures are to be followed in
order to plan as well as launch new business venture by entrepreneur. Following steps to become
a successful entrepreneur are as follows:
Illustration 1: Entrepreneurial process. 2018
( Source: Entrepreneurial process. 2018 )
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Stage 1: Discovery: such step includes generation of idea by identifying as well as
evaluating opportunities by entrepreneur. Richard along with other people discovered
opportunities as well as evaluated efficiencies by seeking feasibility of proposed solution,
associated risks, personal skills as well as organisational goals.
Stage 2: Business plan development: When opportunities are identified then business
plan is developed as per the organisational objectives by setting benchmarks as well as
evaluation criteria. Selected entrepreneur has dedicated his crucial time in formulating plan by
stating mission, vision, goals, statements and many more (Baum, Frese and Baron, 2014).
Stage 3: Resourcing: At this step key resources are identified and arranged in efficient
manner. Chosen entrepreneur has identified various sources to arrange financial resources ,
human resources, investors and so on in order to carry out further activities of business.
Stage 4: Managing company: when funds are raised along with hiring of employees is
done, next stage is to execute business plan for the purpose of attaining set goals. At this stage,
Richard has prepared management structure for solving problems while performing various
operations.
Stage 6: Harvesting: at this stage, future prospects of entity are decided by
entrepreneurs. Respective entrepreneur decides growth and development of company by
comparing actual growth results against planned growth. It helps in taking necessary decisions
related to expansion or stability of business operations (Burns and Dewhurst, 2016).
1.2 Main characteristics that need to be evaluated in order to efficaciously implementing
business plan
The main characteristics that needed to be evaluated for efficaciously implementing
business plan are as follows:
Business plan: Business plan must be evaluated in efficacious manner as further
operations in implementation of plan are dependent on such concept. Evaluation of business plan
helps in identification of areas where improvements or modifications are required in order to
successfully implementing business plan.
Project schedule: It communicates what task to be performed at which time period.
Project scheduling must be evaluated properly as it is associated with implementation of plan as
well as completion of project on accurate time period.
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Contingency as well as risk plan: Plan related to contingency and risk must also be
evaluated in order to understand the situations as well as managing risk for the purpose of
implementing business plan in efficaciously manner.
1.3 Concepts, models and frameworks in addressing the identified weaknesses and building on
the recognised strengths
In order to address identified weaknesses and building recognised strengths, model or
concept of SWOT analysis is used. SWOT analysis helps in identifying key strengths,
weaknesses, opportunities along with threats (Burton, Sørensen and Dobrev, 2016). SWOT
Analysis of Beewits is as follows:
Strengths:
 The workforce along with teams are creative, highly proficient experts in digital
marketing, excellent qualifications and so on.
 Services provided by such organisation are measurable, guided by best practices and
result driven which attracts maximum clients.
 Current clients as well as low debts contributes towards strengths and entrepreneur of
such company has low borrowing power which is the core strength.
Weaknesses:
 Being a new digital marketing agency, it requires some time to break the market and gain
acceptance from top profile clients.
 The entrepreneur faces weakness of availability of funds for pumping into promotion of
business through main streams such as paid advertising, public relations and so on.
 Lack of sales staff required for promoting the agency to business is another weaknesses
of Beewits (Drucker, 2014).
Opportunities:
 Various opportunities are available for selected company as it performs its operations in
digital marketing industry which involves corporate organisations as well as large
number of individuals have active presence on Internet. Such aspect helps in
understanding the demand or requirements of clients and providing them services
accordingly.
 By meeting with several companies and clients selected business has achieved an image
in the market place which helps in segmenting them as per different characteristics as
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well as preferences. This acts as opportunity to better understand the clients and
performing operations.
 The company can also join hands with partners in different countries and forming joint
venture (Hitt and Duane Ireland, 2017).
Threats:
 The major threat Beewits is experiencing is economic down town. It affects purchasing as
well as spending power of customers and hence, a threat for the company.
 There is huge cut throat competition in digital marketing industry. Various companies
performs same operations and cater services to customers at low prices.
 Shrinking budgets in advertising is also a major threat for the selected business.
TASK 2
2.1 Evaluation of niche market by scrutinising industry, client needs and competition.
Beewits is specifically catering to Digital Marketing Industry that mainly comprises
independent web designers, small design agencies, and other professionals.
The main client needs of selected business niche market are obtaining software solutions
in a customised manner in relation to bug tracking, file sharing, requirement management,
Percent-Complete tracking, collaboration, idea management and so on.
As digital marketing industry is wide and its operations are not limited to specific areas.
So, main Competition of Beewits is with InsideView, PitchBook, DueDil that are mainly into
providing information on CRM Data and facilitation of financial transactions such as Private
equity as well as M&A transactions.
Hence, Beewits is mainly catering to a niche market as a software developer and provides
products or services as per clients needs. Various services provided by entrepreneur of such
company can also be utilised by various competitors which makes them customers of chosen
company indirectly. Since, they provide enterprise solutions which are useable by inside as well
as outside industry (Litvaj and PoniÅ, 2014).
2.2 Operational and financial needs of business enterprise
Operational needs are required for performing operations of business in order to achieve
objectives in effective manner. Operational needs of Beewits are as follows:
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Talent: Talent encompasses abilities or skills of individuals for achieving goals. For
example, a graphic designer or design director are required for developing products or software
for selected organisation.
Systems: Systems includes software that helps in automation of work.
Organisational culture: Values, neds, habits and so on of Beewits transform a culture of
creativity as well as change acceptance.
Financial needs of selected business are as follows:
Fixed capital: Fixed capital is required for performing operational activities. Finance is
required for conceiving idea, purchase of land along with machines or computers, expansion of
business and so at for Beewits.
Working capital: It is also known as circulating capital as well as centre of business.
Such capital is required for meeting expenses, providing credit facilities as well as generating
reports at chosen digital marketing agency (Markman and et.al., 2016).
2.3 Identification of most suitable record keeping framework and applicable reporting structure
Record keeping framework helps in recording all necessary information related to
operations performed by workforce in systematic manner. Beewits apply framework of
Information governance framework in which they electronically records all information or data
as well as provides them as and when required. Such framework helps in accessing records
quickly, reduces handling costs and so on. Under such framework, all the services provided to
clients by such agency are recorded in appropriate manner along with necessary attachments.
Reporting structure defines authority responsibility relationships at workplace. In
Beewits, senior manager delegates responsibilities to team members in order to complete the
operations within specified time limit. The reporting structure followed by selected business
includes vertical structure and horizontal structure. In vertical structure, hierarchical positions
are formulated and according information flows from top level management to lower level
management and vice a versa. At the same time, horizontal reporting structure is also followed
where reporting is done between departmental members as well as peers at same position. Both
the reporting structure helps in quick decision making as well as circulating necessary
information at work place within limited time period.
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Illustration 2: Organisational chart. 2016
(Source 2: Organisational chart. 2016)
2.4 Job description that attracts right people in line with business growth plan
Job description is a general, written and broad statement of particular job which includes
responsibilities, working conditions, duties, scope, purpose, job title, designation of specific job.
Job description is as follows:
Job Title: Digital Marketing manager
Job family: Marketing
Reports to: Marketing manager
Role responsibilities:
 Planning campaigns for digital marketing along with web, SEO/SEM, social media,
display advertising and email.
 Measuring along with preparing reports related to performance of all marketing
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campaigns.
 Establishing effective relationships with other organisations in the same industry.
 Contractual administration.
 Enhancing brand awareness within digital space along with driving website traffic to
acquire leads among customers and competitors.
 Maintaining organisational presence through social media across all digital channels.
Requirements:
 Highly creative and experience in identifying target audiences along with devising
digital campaigns.
 BS/MS degree in the field of marketing.
 Working knowledge of aspects such as HTML, CSS, and JavaScript development and
constraints.
2.5 Academic model in determining pertinent measures required to target specific business needs
Following are the academic model in determining pertinent measures required to target
specific business needs of Beewits:
Canvas business model: Such concept is related to strategy management as well as helps
lean start ups to develop new or making any modifications in existing business models. This
model is used for determining pertinent measures in relation to customer segment, value
proposition, channels, customer relationships, revenue streams, key resources, activities,
partnership and cost structure required to target specific business needs.
Key Partners:
 Investors
 Customer
s
 Employe
es
 Advertisi
ng
Key Activities:
 Software
developi
ng
 Supplyin
g new
software
to clients
Value
Propositions:
Organisation is
deliverying
services that are
related to web
designing, bug
tracking, file
sharing,
Customer
Relationships:
In order to
maintain relation
with clients best
solutions for
their concern
regarding digital
advertising is
Customer
Segments:
Advertising
agencies in that
are delivering
services to
people looking
for job in IT
7

agencies Percent-
Complete
tracking etc.
Which helps it
to set value
proposition for
its services.
provided by the
organisation.
sector
Key Resources:
 Human
resources
 Financial
resources
Channels:
 Online
marketin
g through
social
media
 Marketin
g through
Email.
Cost Structure:
 Salaries to employees
 Cost of market research
 Cost of software
Revenue Streams:
 Through selling the services
 Marketing
SWOT analysis: This analysis is a planning of strategic techniques which is used by
managers of Beewits in order to identify strengths, weaknesses, opportunities and threats in
relation to competitors along with project planning. It helps in identification of internal as well as
external factors which are unfavourable or favourable to attaining objectives. Such model also
helps entrepreneur to determine pertinent measures required to target specific business needs
(Meyer, Neck and Meeks, 2017).
Ratio analysis: It is a tool which helps in gaining insights related to organisational
liquidity, profitability as well as operational efficiency by comparing data which are in the
financial statements.
Debt-Equity Ratio= Total debt/ Shareholders fund
1.40332034
34
1.67208384
61
Particulars 2017 2018
Total Debt 442930 394060
Shareholders Fund 315630 235670
8

Interpretation: From such ratio, it can be interpreted amount of debt is higher than
shareholders fund in both years which reflects poor performance in financial statements of
Beewits. It is unfavourable situation for the company.
Total asset Turnover Ratio= COGS/ Total Asset
0.81825026
54
0.91444683
94
Particulars 2017 2018
COGS 662930 674560
Total asset 810180 737670
Interpretation: This ratio reflects returns along with refunds which are earned by Beewits by
optimally employing of financial resources in various activities of business. This ratio is below 1
which shows that earning by employing funds in the assets are not sufficient.
TASK 3
3.1 Development and marketing of product or service that addresses the needs of clients better
than competition
Based on the research findings, it has been analysed that Beewits is providing facilities
related to web designing, small designing, bug tracking, file sharing, requirement management,
Percent-Complete tracking, collaboration and idea management.
Up till now its competitors do not provide the facility of Search Engine Optimisation (SEO),
Google Map Virtual Tour (GMVT) and Adwords in combination of each other. Such
combination helps in addressing the needs of clients in better manner.
PRODUCT DEVELOPMENT PLAN
Executive Summary: Beewits is planning to introduce a new product with the combination of
SEO, GMVT and Adwords.
Strategic Objective: Objective of chosen business is to provide such platform that
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addresses the needs of clients better than competition. For this SMART goal is used which
helps in providing specific information, measurement to goals, agreed with all stakeholders,
realistic in knowledge and time
SWOT analysis: Swot analysis is as follows:
 Strength: Such combination will provide facilities related to handling costs as
well as provides user friendly web designing.
 Weaknesses: Understanding the product is a complex task.
 Opportunity: This combination will help in attracting maximum potential clients.
 Threat: implementation of such product will decrease profits of the company.
STP: STP approach is used for segmenting, targetting and positioning its image in the market
place.
Segmenting: It helps in focusing towards products and delivering the same using
demographic segmentation by selected firm. It segments population of Malta according to
demands, preferences on
Targeting: The company mainly targets web designers and digital marketers.
Positioning: The company positions its product by using functional, symbolic and
experimental positioning in the mind of clients.
Marketing Budget: marketing budget helps in allocation of funds in different expenses.
Marketing budget for such plan is as follows:
Particulars Amount ( In $'000)
Marketing Activities (Advertising, campaigning, key
accounts corporate sales and so on)
150
Strategy implementation 110
Total 260
Planning and controlling: when all the activities are planned and implemented, he next
task is to control the activities in order to attain the objectives in effective manner.
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3.2 Liquidity or growth plan to ensure business sustainability
Following is the growth plan which helps in ensuring business sustainability when any
challenges are faced:
Growth strategy: The growth strategy of Beewits is to expand new product in existing
market in order to expand its market share and satisfying needs or requirements or clients in
better manner (Romme, 2016).
Sources of funding: The entrepreneur of selected business sources its funds from
internal as well as external sources. Internal sources includes organisational profits, earnings
from clients, pay per click and many more. On the other hand, external sources are share capital,
loan capital, debentures, trade credit, bank overdraft and so on.
Cash forecasts:
Particulars 2018 2019 2020 2021 2022 2023
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed :
Equipment’s 2000 2500 1500 2000 1200 1500
Variable :
Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
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Net cash flow 7700 200 1300 2200 150 1500
Opening
balance 0 7700 7900 9200 11400 11500
Closing
balance 7700 7900 9200 11400 11550 13000
12

Interpretation: From the above forecasting it can be said that the growth strategy will help in
facing challenges as well as ensuring sustainability of Beewits for longer time period.
3.3 Impact of research in changing requirements to turn business plan into successful business
venture
Research plays an important role in understanding clients needs along with requirements
and helps in establishing a clear line of communication with multiple customers. It also enhances
market knowledge which is one of the most important requirement to turn business plan into
successful business venture. With the help of research it can also be analyses that the forecasting
of budget is realistic or it needs further improvements. It also helps in guiding business decisions
towards the objectives by increasing clarity, creating roadmap, providing structure, getting
funding and many more (Scarborough, 2016). Thus, research have great impact in understanding
changing requirements as well as making provisions to turn business plan into successful
business venture.
Task 4
4.1 Contribution of feasibility study and business modelling in applying sound entrepreneurial
skills
Feasibility study helps in analysing various factors such as economic, legal, scheduling,
technical in order to ascertain completion of operations in successful manner. Feasibility study
contributes in great manner as it uncovers strengths along with weaknesses related to product
implementation. Such study also provides important information related to associates risks in
implementing several strategies by applying skills related to risk assessment, decision making
and so on. Thus, feasibility study contributes in applying sound entrepreneurial skills
Business modelling defines the ways in which business delivers values to its clients with
the use of different distribution channels. With the helps of selected entrepreneurial skills such as
problem solving, segmenting customers, building relationships, allocating resources and so on,
business modelling contributes in great manner. Such modelling concept contributes in
identifying problems, unfair advantages, providing key metrics to the products. Thus, business
modelling contributes in applying sound entrepreneurial skills of Beewits.
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4.2 Ways entrepreneur can increase probability of success in rapid changing business
environment
Entrepreneurs apply wide range of activities in order to expand their business in
competitive environment. Richard increases probability of success by applying professional
activity, understanding customer values, managing change, serving as per the requirements or
preferences in rapid changing business environment. They can use various innovative strategies
while promoting business in international market place. They can understand the requirement
and cater services before competitors fulfil them also helps in retaining customers for longer time
period. All such aspects helps entrepreneur to increase probability of success in rapid changing
business environment.
4.3 Key tasks of operational management, growth management and sound financial management
Operational management: It involves activities related to embracing designs,
performance improvements, development and so on. It plays an important role in administration
of practices for achieving highest efficiency level. It is concerned with maximising profits as
well as getting best outcomes from the available resources.
Growth management: It involves regulatory policies in order to influence growth. Such
management is used by Beewits to protect the organisational operations from density, timings of
competitors strategy implementation and so on (Schaper, 2016).
Sound financial management: Such management is related to tracking financial
resources along with cash flows. By predicting cash flows for future time period necessary
decisions can be taken in order to achieve the results in efficient manner.
Thus, these three aspects performs operations with each other. There operations are
interlinked with one another which helps in achieving objectives for Beewits.
CONCLUSION
As per the report it can be concluded than entrepreneurship management plays important
role in utilizing knowledge for enhancing effectiveness of business ventures in effective manner.
Main stages of entrepreneurial process includes discovery, developing business plan, resourcing,
managing company and harvesting which makes an entrepreneur successful. Operational needs
of business are talent, system, organisational culture where as financial needs includes fixed
capital, working capital. Research helps in understanding clients needs along with requirements
14

and helps in establishing a clear line of communication with multiple customers which benefits
in turning business plan into successful business venture. There are different ways entrepreneur
can increase probability of success in rapid changing business environment
15

REFERENCES
Books and Journal
Audretsch, D. and Caiazza, R., 2016. Technology transfer and entrepreneurship: cross-national
analysis. The Journal of Technology Transfer. 41(6). pp.1247-1259.
Baum, J. R., Frese, M. and Baron, R. A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice. 40(2). pp.237-247.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Litvaj, I. and PoniÅ, O., 2014. Entrepreneurship and quality management. Entrepreneurship and
Sustainability Issues. 1(4). pp.204-209.
Markman, G. D. and et.al., 2016. Entrepreneurship as a platform for pursuing multiple goals: A
special issue on sustainability, ethics, and entrepreneurship. Journal of Management
Studies. 53(5). pp.673-694.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset. pp.17-44.
Romme, G., 2016. The quest for professionalism: The case of management and
entrepreneurship. Oxford University Press.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Online
Entrepreneurial process. 2016. [Online]. Available through:
<https://businessjargons.com/entrepreneurial-process.html>
Organisational chart. 2016. [Online]. Available through:
<https://www.orgcharting.com/horizontal-org-chart/>
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APPENDICES
Income statements of Beewits:
Balance sheet of Beewits
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18