Introduction to Small Business Enterprise

SMALL BUSINESS
ENTERPRISE
1

TABLE OF CONTENTS
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
TASK 2............................................................................................................................................6
2.1.................................................................................................................................................6
2.2.................................................................................................................................................6
2.3.................................................................................................................................................7
TASK 3............................................................................................................................................8
3.1.................................................................................................................................................8
3.2.................................................................................................................................................9
3.3.................................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1...............................................................................................................................................10
4.2...............................................................................................................................................11
4.3...............................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Small business enterprise (SBE) is the firm that needs minimum amount of funds in order
to carry out its operations. This implies that they make lower initial investment. Moreover, such
kind of organization makes recruitment of small number of personnel whose actions are directed
towards the attainment of business targets with greater effectiveness. Small business enterprise is
involved in conducting operations of firm on lower scale (Graham and Muyia Nafukho, 2007).
Therefore, they are not able to attain higher sales volume. SBE is owned and managed privately.
Further, it is form of sole trader and partnership business.
In the present report on small business enterprise, Qbic hotel has been taken into account.
It is one of the most popular SBEs in United Kingdom. The present report entails to gain insight
in development of business skills required for reviewing and management of performance of
small enterprise. Further, it includes investigation of the performance of chosen firm. The report
is comprised of strengths and weaknesses of SBE. In addition to this, it involves suitable
measures that can be utilized for overcoming the weaknesses existing within organization.
TASK 1
1.1
Qbic hotel is considered as a new and modern hotel where the basic services offered are
perfect. Hotel is low cost designed which is involved in providing facilities at economical prices
to the clients with operating in two cities, that is, Amsterdam and London. The firm was found in
the year 2007 by Bridges ventures (Qbic hotel, 2015). Hotel is having man power of 11 to 50
personnel whose efforts are directed in a particular direction. Thus, such results in the attainment
of business targets within specified duration of time. Major aim of this firm is towards offering
greater hospitality experience to the one visiting hotel (Hatten, 2015). In addition to this, it has
objective to offer customers with high satisfaction level so that they would visit the hotel on
regular basis. The hotel is involved in providing several facilities to customers which is
comprised of free Wi-Fi, soundless room, powerful shower as well as lavishly comfortable bed.
Along with this, it has familiarity with self-services as well as lower cost design that leads to
reduction in the cost which is charged from customers. Such presents affordability of hotel that
can help the person who belongs to varied social classes.
3

There are certain strengths and weaknesses possessed by Qbic hotel. Main strength of the
firm is that it provides varied services at economical prices. Thus, it is affordable by large
number of individuals. This acts as the major attraction for visitors towards hotel and leads to
enhance the market share. The hotel room possesses modern design that facilitates in creating
superior experience for visitors (Lepoutre and Heene, 2006). Furthermore, Qbic hotel has
efficient personnel who deliver quality services to customers in an effective manner. In contrast
to this, main weakness of the firm is that number of employees here are small. Therefore,
difficulty is experienced in case if large mass visits the hotel in specific duration of time. As a
reason of low cost budget, SBE is not able to conduct activities related with promotion. Due to
this, there is lack of awareness among visitors regarding the facilities of hotel.
1.2
There is high significance towards measuring the performance of Qbic hotel with
effectiveness for the purpose of determining differences existing in its operations. It helps in
adopting several measures that will result in bringing improvement. The hotel executive keeps
track on various activities of organization by the means of which issues in the services of
company can be determined. Method of financial analysis is suitable for the small business
enterprise such as Qbic hotel. In this, balance sheet and income statement of organization can be
assessed for the purpose of understanding performance of hospitality business in an effective
manner (Yildiz and Karakas, 2012). Through this, comparison can be made as it is accurate
quantitative tool. In relation the same, small business enterprise can compare its statement of
finance with its competitors who are carrying out business in the same industry. After identifying
the outcomes, various actions can be considered that can bring improvement in the prevailing
services. Along with this, analysis of market share measurement of hotel's performance can be
done in an appropriate manner (Shah and Ram, 2006). In situation, from the outcomes it is
inferred that firm is able to achieve its targeted market share then such demonstrates sound
organizational performance. However if firm is unable to attain set target then it has bring
enhancement in its strategies so that market share associated with goals can be achieved in an
effective way.
Comparison of profitability ratio
4