Entrepreneurship Management (PDF)

ENTREPRENEURSHIP
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The characteristics that need to be evaluated for implement the business plan.....................1
The niche market by scrutinising the industry, client needs and competition........................2
The operational and financial need of the business enterprise...............................................3
Identifying the most suitable record keeping framework and the applicable reporting structure.
................................................................................................................................................4
Formulation of job description that attract the right people in the line with the business growth
plan.........................................................................................................................................5
Application of academic models for determining the pertinent measures.............................6
Developing product or service that beats competition in the market.....................................6
How growth and liquidity can be sustained long term...........................................................7
What needs to change in your original business plan to be more effective and successful.. .9
What skills one need to work on to improve as an entrepreneur..........................................10
How to increase the probability of success in a rapidly changing business environment....10
How to make best use of the resources available.................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
Appendix .......................................................................................................................................14

INTRODUCTION
Entrepreneurship management is the continuous process in which entrepreneurs makes
the best use of their knowledge to achieve the desired goals and target. In this plans and
strategies are made for increasing the market share of the new start up or new business. Major
motive of entrepreneurship management is the decide the action plan for the future course of
action and to utilize the available resources in the best possible manner. This report will be based
on XYZ hotel which is located in Malta(Adonisi and Van Wyk, 2012). The major focus will be
emphasised on introducing a new hotel which will be known as Hotel T. In this plans and
strategies will be made for establishing the new hotel T. This report will cover theories and
practices related to entrepreneurship. As with the help of these theories better plans and actions
can be made for attracting more and more customers and also for increasing the market share in
the appropriate manner. The major topics covered in this report are characteristics which will
help the entrepreneur to implement the business plan in the efficient manner, identification of
operational and financial needs and formulation of job description for attracting and hiring right
people for the growth of business plan. External environment of the business will also be
evaluated for deciding the plans for competing in the market.
MAIN BODY
The characteristics that need to be evaluated for implement the business plan.
It is very much essential for the entrepreneur to have certain set of skills and knowledge.
As with the help of these skills better plans and actions can be made for implementing the
business plan in the best possible manner. Some of the major characteristics which are required
for efficaciously implementing the business plan are discussed below-
Efficient use of available resource- The entrepreneur must know how to make the best
use of available resource in the appropriate manner. If the entrepreneur is able to decide the
future course of action for using the resources. Than chances of loss and failure of the new
business plan will be decreased(Austin, Stevenson and Wei-Skillern, 2012).
Risk taking- Plans can also be made for reducing the chances of risk in the business. If
there are less chances of risk and uncertainty than better plans can be made for efficaciously
implementing the business plan.
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Project schedule- It is related with deciding the action plan for implementing the
strategies at the right time and in the right manner. With the help of this complicated task of the
business plan can be completed without wasting unnecessary time of the entrepreneur and
business.
Analysing current and future demand- Proper analysis and evaluation of the current
and future demand can lead to growth and success of the business plan. As with the help of this
better plans can be implemented for sustaining in the market for longer period of time. It will
also help in attracting large number of customers for the new hotel.
Clear objectives- Before implementing the business plan entrepreneur must have clear
set of objectives. As with the help of these objectives management of the hotel will be able to
implement the plans in the efficacious manner(Burns, 2016).
With the help of these characteristics and skills management of XYZ hotel will be able to
implement the business plan in the efficacious and effective manner.
The niche market by scrutinising the industry, client needs and competition.
Niche market is considered as the subset of market in which major focus is emphasised
on a particular product or service of the hotel. With the help of this management of XYZ hotel in
Malta will be able to satisfy the need of customer's by setting appropriate price for the services
offered by the hotel. In this plans and strategies for the new business plan which is going to be
implemented in Malta can be made according to the demographic and target market of the hotel.
For scrutinising the industry PESTLE analysis can be used by hotel XYZ as this analysis will
help in analysing the competition level and need of customer's. Various factors related to
PESTLE analysis are discussed below-
Political factor- This factor is related with the polices and laws imposed by the
government of a particular country in which hotel will be established. The tax rate in Malta is
very low as compared to other countries of EU. Due to this factor it would be easy for XYZ to
operate its functions in the best possible manner(Castaño, Méndez and Galindo, 2015).
Economical factor- The economic condition of Malta is stable as most of the population
is highly skilled. So XYZ will be able to get skilled employees at lowest possible price. The
GDP rate of Malta is continuously increasing which is positive sign for XYZ hotel.
Social factor- It is related with values and belief of the individuals who are present in a
particular country. Malta is majorly known for historical and traditional places, so XYZ hotel
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can make plans and strategies keeping in mind the social values of citizens of Malta. As with the
help of this hotel will be able to give tough competition to other competitors which are already
operating their business in same kind of industry.
Technological factor- It is related with using latest tools and technology for operating
the business of hotel. The individuals of Malta are highly skilled and talented and they
continuously demand for latest techniques to satisfy their unlimited needs. So it will be good
opportunity for Malta to make best use of latest techniques for attracting large number of
customer's.
Legal factor- It is concerned with laws and regulations imposed by the government of a
particular country. The government of Malta is stable due to this the laws and regulations
imposed by the government stays for longer period of time. So it would not be difficult for XYZ
hotel to operate its business, as challenge and risk factor related to change in law will be
relatively low(Cooper and Folta, 2017).
Environmental factor- It is related with making plans and strategies for saving and
conserving the environment. Large number of tourist visit Malta on a regular basis so it XYZ
hotel can make strategies for conserving the environment. Focus can be emphasised on keeping
the premises of Hotel clean and green. This will attract large number of customer's for the hotel.
With the help of this analysis management of XYZ hotel will be able to give tough
competition to its competitors. The need and demand of the customer's can also be easily known
for increasing the sale and profitability of the hotel. PESTEL analysis will be beneficial for hotel
T in making plans and strategies for operating its business in Malta. This is because the tax rate
in Malta is very low so it a good opportunity for T hotel to establish its business in the particular
country. With the help of stable economic conditions Hotel T will be able to survive in the
market for longer period of time. If hotel T manages to make plans and strategies according to
the marketing conditions of Malta than chances of growth and sustainability of the hotel will be
increased. Hotel will also be able to plan its future course of action in a systematic and desirable
manner.
The operational and financial need of the business enterprise.
It is very much essential for the entrepreneur and management of XYZ hotel to identify
the need and resources in the proper manner. Need can be in the form of operational or financial.
It becomes necessary for the management of XYZ hotel to identify and satisfy such needs in the
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proper manner. As with the help of these needs goals and target of the hotel will be easily
achieved. The different type of needs which can be required by business enterprise are discussed
below-
Operational need- These are those type of need which are related with the operations of the
business organisation. It is useful in identifying the gap in current capabilities to achieve the
targeted goals in the effective manner. With the help of these needs mission and goals of the
XYZ hotel can be easily achieved. Operational need are of various types, these include-
 Talent- It is known as the ability of the individual to provide and suggest new ideas for
the hotel. The main motive behind this is to achieve the targeted goals and objectives
within prescribed time frame. This need of XYZ hotel can be increased by providing
them training in the appropriate manner.
 System- This includes use of latest techniques for completing the complex task of the
hotel. With the help of this XYZ hotel will be able to satisfy the need of customer's in the
appropriate manner. Focus can be emphasised on increasing and improving the ability of
employee's in XYZ hotel(Dana, 2012).
Financial need- These needs are related with the requirement of finance for completing the task
in the efficient manner. Finance needs are of various kinds such as-
 Working capital- It is the difference between current assets and liabilities of the hotel.
By evaluating working capital in the appropriate manner business operations of the hotel
can be completed in the systematic manner.
 Fixed capital- These are those funds which are required by the hotel for purchasing and
handling its current asset. XYZ hotel can use this type of fund for purchasing and
acquiring machines and other current asset.
Identifying the most suitable record keeping framework and the applicable reporting structure.
Record keeping framework- This is majorly used to record and evaluate the
transactions of the hotel in the chronological order. Major focus of this framework is to record
each and every activity in the systematic and coordinated manner. Information governance tool
can be used by XYZ hotel to record information in the proper manner. If hotel is able to use this
framework in the proper manner than wastage of unnecessary cost and resources can will be
reduced. Better plans and actions can be made for the future course of action.
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Reporting structure- In this superior and subordinate has different kind of
responsibilities to complete the task. Top management and authority of the organisation ensures
that work is completed in the proper manner. Subordinates are answerable to superiors regarding
the assigned work. Reporting structure is basically of two types- horizontal and vertical reporting
structure. In vertical reporting vital information of XYZ hotel can be transferred from top level to
bottom level in the organisation(Galindo and Méndez-Picazo, 2013). While on the other hand
horizontal structure can be used for communicating with the divisional managers of the hotel.
With the help of these two reporting structure management of XYZ hotel will be able to take
necessary decisions regarding its growth and profitability.
Formulation of job description that attract the right people in the line with the business growth
plan.
Job description is referred as the written document which is generally made by the
company with the motive of attracting suitable and desirable candidates for the vacant job
position. It covers the duties and responsibilities which are to performed by the candidate, if
placed in the organisation or hotel. Hotel XYZ requires marketing manager for attracting large
number of customer's for its organisation(Gao and Peng, 2011). This is usually done to increase
and enhance the growth, sustainability and probability of the hotel within limited time period.
Job description for the post of marketing manager is discussed below-
Job Title: Marketing Manager
Job family: Marketing
Reports to: Top-management
Role responsibilities:
 Plan strategies and campaign for making customer's aware about the services of the
hotel.
 Must know how to form and implement various kinds of strategies for the effective
functioning of hotel.
 Plan to maintain better relation with various other firms of the hotel industry.
 Use new and latest technology for providing better services to the customer's.
 Implementing various promotional strategies and plans for attracting customer's and also
for increasing the brand image.
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Requirements:
 Good experience of marketing tools and techniques for targeting right set of customer's
at the right time.
 Candidate must have Master degree in the filed of marketing.
Application of academic models for determining the pertinent measures.
There are different kind of models and concepts which can be used by the management of
XYZ hotel. As with the help of these academic model various factors which positively or
negatively influence the working and growth of hotel can be analysed. These models will also
guide the management to take necessary actions for fulfilling the need of business in the
appropriate manner. The management of XYZ hotel can make use of marketing mix strategies
for analysing and evaluating the services in the proper manner(Hall, Daneke and Lenox, 2010).
This will also help hotel in forming strategies for competing with the competitors in the
appropriate manner. Marketing mix of services and product of XYZ hotel is discussed below-
Product Place
 Hotel offers wide range of food
products to this customer's. This
include- Thai, Italian, Chinese, etc.
 Alterations in the food menu is also
done according to the need and
preference of the customer's.
 Hotel is located near to various tourist
place, so that large number of visitors
get attracted towards the hotel .
 Hotel has also tie- up with various
travel organisations. The major motive
behind this is to attract large customer's
and grow in the market.
Price Promotion
 The price for services of XYZ hotel is
decided according to the paying
capacity of its customer's. This means
price of the products and services is
low as compared to its competitors.
 Customer's can use various payment
methods according to their
 Different kind of marketing tools and
strategies are used by the hotel to make
the customer's aware about its services.
 Online promotion technique is also
used by hotel to increase its sale and
profitability.
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convenience.
With the help of marketing mix hotel T will be able to decide price of its services in the best
possible manner. This means price will be decided according to the paying capabilities of the
citizens of Malta. Focus can be emphasised on making strategies according to the need and
preferences of the potential customer's. Marketing mix strategy will also help hotel T in giving
tough competition to various other competitors which are operating their business in Malta. It
would be beneficial for hotel T to decide the food menu and other activities after analysing the
action plan of this competitors.
Developing product or service that beats competition in the market.
It has already been discussed that XYZ is the hotel which was established with the
motive of providing various kinds of services to potential customer's in Malta. Major food
products of the hotel include- Italian, Chinese and Thai. But hotel is also facing various kinds of
problems related to its survival in the market of Malta. This is because of high competition level
in hospitality industry. The need and preferences of the customer's also keeps on changing
frequently. This is resulting in decrease in sales figure and increase in dissatisfaction among the
customer's. It is also affecting the productivity and performance of employee's in the hotel. To
improve this problem organisation is focusing on using latest tools and techniques for increasing
the market-share. Major changes in the working structure of the hotel will be done so that need
of customer's can be satisfied(Heavey and Simsek, 2013). This will be done by providing
trainings to the employee's, as with the help of this their current skill and knowledge will be
increased and they will be able to perform better. This will lead to decrease in chances of
employee retention and absenteeism and increase in customer satisfaction. This is because
trained employee will be able to serve the customer's in a better manner.
New and attractive promotional tools and techniques can also be used by XYZ hotel. This
can include- poster, hoarding or social media promotion. As with the help of this hotel will be
able to increase its sale . For targeting particular set of customer's price of the product and
services can also be decided according to the price of competitors and paying capacity of
customer's. To carry implement these strategies and activities in the efficient manner hotel will
require proper formation of budget. As with the help of this unnecessary financial wastage of the
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financial resources will not be done by the entrepreneur of XYZ hotel. By using all these
strategies management of XYZ hotel will be able to beat competition in the proper manner.
How growth and liquidity can be sustained long term.
Balance sheet of XYZ Hotel For the year ended 2018-19
Particulars Amount
Assets
Current Assets
Cash and cash equivalents 66301
Receivables 23186
Inventories 3956
Other Current Assets 37896
Total Current Assets 131339
Non current Assets
Plant and equipment 41304
Equity and other investment 170799
Goodwill
Intangible assets
other long-term assets 22283
Total non-current assets 234386
Total Assets 365725
Liabilities
Current liabilities
Short term debt 20748
Account payable 55888
Accrued liabilities
Deferred revenues 7543
other current liability 32687
Total Current liabilities 116866
Non-Current liabilities
Long term debt 93735
Deferred Tax liability 426
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Deferred revenues 2797
other long term liability 44754
Total Non- current liability 141712
Total liabilities 258578
Stockholder's Equity
Common stock 40201
Retained earnings 70400
Accumulated and other comprehensive income -3454
Total stockholder's equity 107147
Total liabilities and stockholder's equity 365725
Interpretation- From the above balance sheet it has been concluded that current assets of
XYZ hotel is enough for meeting the short term debts and it also interprets that its liquidity for
future is also enough to meet long term liabilities.
Income Statement Of XYZ Hotel for the year ended 2018-19-
Particulars Amount
Revenue
Total revenue 1019900
Cost of revenue 411100
Gross profit 608800
Operating Expenses
Selling General and administrative 296300
Other operating expenses 80410
Total operating expenses 376710
Operating Income or loss 232090
Income from continuing operations
other income 15000
EBIT 215800
Interest expense -4100
Income Before tax 230800
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Net income from continuing operations 457500
Net income 457500
Adjustments
Net income to common shares 457500
Interpretation- From the above income statement it can be concluded that hotel possess higher
probability and they can invest in new technologies and can expand their hotel as the situation of
hotel is stable and they are enjoying profitable situation.
What needs to change in your original business plan to be more effective and successful.
The trends of the market is continuously changing and it becomes essential for the
management of hotel to make plans and strategies according to the marketing conditions. As
with the help of these changes hotel will be able to complete the target within limited time
period. Some of the major changes which can be used by the management of XYZ hotel are
discussed below-
 Technological change- The potential customer's of XYZ hotel and Malta are demanding
use of latest technology to satisfy their unlimited need and demand. If the management of
XYZ hotel fails in doing this than sale of the hotel will be decreased and hotel will also
start losing its customer's(Hitt and et. al., 2011). So focus can be emphasised on using
latest techniques for attracting large number of customer's. Changes can be made on
menu card of the hotel and online food delivering option can be offered to the
customer's. With the help of this sale of XYZ hotel will be increased and customer's can
also be retained in appropriate manner.
 Social trend- The need and demands of the customer's are uncertain and unlimited.
These needs majorly depend upon the current market trend which is going on. It becomes
essential for XYZ hotel to identify the social need of this customer's. As with the help of
this strong customer's base can be created. Keeping this factor in mind the management
of XYZ hotel is planning to offer products and services according to the social need of
customer's. New product and service and launched by XYZ hotel for the same.
 Market conditions- It is one of the important factor which needs to be taken into
consideration by XYZ hotel(Jiao, 2011). If this is not done than its growth and
sustainability will be negatively affected. For example customer's are demanding online
room booking facility according to their convenience. So if the management of hotel fails
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in doing this can chances of loss and failure of the hotel in the market will be increased.
Current market conditions can be analysed by conducting market research in the proper
manner. As with the help of this research management will know what ideas and
techniques can be used for increasing overall growth of the hotel.
What skills one need to work on to improve as an entrepreneur.
There are various kinds of skills which an entrepreneur must have. These include-
communication skill, problem solving skill, creativity skills, risk taking skill, etc. With the help
of these skills entrepreneur manages to achieve the desired goals and target in the effective
manner. But this can only be done by making plans for improving the skills in the proper
manner. Some of the major skills are discussed below-
Communication skill- It is one of the most important skill which the entrepreneur must
have. With the help of this skill entrepreneur will be able to transfer and communicate vital
information of the hotel in the systematic and coordinated manner. Information can be regarding
services of hotel or procedure of the hotel. Proper communication skill will directly help
entrepreneur of XYZ hotel to achieve individual goals in the best possible manner. This skill can
be improved by interacting with more and more individuals in the hotel and also by knowing
their views and ideas(Kirzner, 2015).
Problem solving skill- This skill is required to solve complicated task and problems of
the hotel in the appropriate manner. If there is any conflict or problem in the internal
environment of the hotel than entrepreneur must know probable solutions to the problem. With
the help of this overall productivity and performance of the employee's and hotel can be
increased.
Creative- It is very much essential that the entrepreneur must have this kind of skill. As
with the help of this new ideas and techniques can be generated for completing the task in the
systematic manner. If the entrepreneur have this skill than better use of opportunities can be
taken and strategies can be made for attaining competitive position in the market(Meyer, Neck
and Meeks, 2017).
How to increase the probability of success in a rapidly changing business environment.
The business environment is uncertain in nature and it becomes necessary for
organisations to plan its actions according to the current condition. If appropriate plans are made
for reducing the negative impact of uncertain business environment than XYZ hotel will be able
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to grow and sustain for a longer period of time. The probability of success can be improved by
making some changes in the working structure. These include-
 Hotel can make plans for conducting market research for identifying the current condition
of the market. With the help of this research accurate need and preference of the
customer's and visitors can also be known by the hotel.
 Major changes can also be done in the use of technology, this is reduce negative the
chance of decrease in sale and profitability of the hotel(Mitchell, Randolph-Seng and
Mitchell, 2011). For using latest technology in the operation of hotel plans can be for
providing training to employee's. This is because trained and skilled employee's will be
able to give their best output and will also contribute in the growth and success of hotel.
 Change in polices and procedure by the government for XYZ hotel. This factor directly
and indirectly affect the business operations of the organisation. To reduce negative
impact of this factor the management of hotel can analyse the current and past polices
and regulations imposed by the government.
How to make best use of the resources available.
There are various type of resources available for the organisations who are performing
their business operations in same type of industry. If the management of the organisation has
appropriate resources than growth and profitability of the hotel can be easily increased. With the
help of these resources entrepreneur of XYZ hotel will be able to implement new strategies in the
systematic and coordinated manner. Some of the major resources are discussed below-
Physical resources- It is related with tangible assets of the organisation which are
basically used to complete the task of the organisation. This type of resource is very much
essential for every organisation working in hospitality industry. Plans and strategies can be made
for increasing the skills of physical resource of the hotel. Major physical resource for service
related industry is assistance in the delivery of facilities, appropriate use of techniques and other
resources(Naudé, 2014).
Intellectual resources- These type of resources are related with intangible tools of the
hotel. These basically include patents, copyrights , etc. the knowledge of the customer's and
employee's working in the hotel are known as intellectual resource. With the help of these
resource work of XYZ hotel can be completed without any hindrance or hurdle.
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Human resource- The management of XYZ hotel requires skilled and talented
employee's for this organisation. This is because these type of employee's will be able to give
their best output for achieving the goals and objectives of the hotel within limited period of
time(Sahut and Peris-Ortiz, 2014).
CONCLUSION
From the above given report it has been concluded that proper plans for entrepreneurship
management can lead to growth and success for the business in the effective manner. As with the
help of this entrepreneur will know exact strategies and action plan by which business can
sustain in the market for longer period of time. By using PESTLE and SWOT analysis better
plans can be made for reducing the negative impact of macro environment. Various marketing
and entrepreneurship management can be also be used for increasing the skills and knowledge of
the entrepreneur. By planning things in the appropriate manner will be able to increase its
business within limited period of time and the targeted goals and objectives will also be achieved
in the effective and efficient manner.
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REFERENCES
Books and Journals
Adonisi, M. and Van Wyk, R., 2012. Antecedents of corporate entrepreneurship. South African
Journal of Business Management. 43(3). pp.65-78.
Austin, J., Stevenson, H. and Wei-Skillern, J., 2012. Social and commercial entrepreneurship:
same, different, or both?. Revista de Administração. 47(3). pp.370-384.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and
economic factors on entrepreneurship. Journal of Business Research. 68(7). pp.1496-
1500.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Dana, B.G., 2012. SWOT analysis to improve quality management production. Procedia-Social
and Behavioral Sciences. 62. pp.319-324.
Galindo, M.Á. and Méndez-Picazo, M.T., 2013. Innovation, entrepreneurship and economic
growth. Management decision. 51(3). pp.501-514.
Gao, C.Y. and Peng, D.H., 2011. Consolidating SWOT analysis with nonhomogeneous uncertain
preference information. Knowledge-Based Systems. 24(6). pp.796-808.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5).pp.439-
448.
Heavey, C. and Simsek, Z., 2013. Top management compositional effects on corporate
entrepreneurship: The moderating role of perceived technological uncertainty. Journal
of Product Innovation Management. 30(5). pp.837-855.
Hitt, M.A., and et. al., 2011. Strategic entrepreneurship: creating value for individuals,
organizations, and society. Academy of management perspectives. 25(2). pp.57-75.
Jiao, H., 2011. A conceptual model for social entrepreneurship directed toward social impact on
society. Social Enterprise Journal. 7(2). pp.130-149.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
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.
Mitchell, R.K., Randolph-Seng, B. and Mitchell, J.R., 2011. Socially situated cognition:
Imagining new opportunities for entrepreneurship research. Academy of Management
Review. 36(4). pp.774-776.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Online
Entrepreneurial process. 2016. [Online]. Available through:
<https://businessjargons.com/entrepreneurial-process.html>
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Appendix
Ratios-
Particulars 2018-19
Current Assets 131339
Current Liabilities 116866
Working capital Ratio 1.12
Net profit 457500
Sales 1019900
Net expenses on sale ratio 0.45
expenses 376710
Sales 1019900
Expenses on sales ratio 0.37
Interpretation- From the above ratio statement it is concluded that company is able to meet
their current liabilities in short term as well as possess higher liquidity for long term. The
company can has to generate more sales to earn more profit.The liquidity is increasing rapidly
and it can be interpreted through ratio analysis.
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