Small Business Management & Entrepreneurship

This assignment delves into the crucial aspects of small business management and entrepreneurship. It examines the influence of networks on innovation and firm performance within SMEs. The role of enterprise education as a pedagogical tool is also analyzed, along with its impact on entrepreneurial marketing practices in small businesses. Finally, it considers the challenges faced by SMEs in integrating ERP systems and the socio-cultural factors that shape entrepreneurial activity.

Small Business Enterprises
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
AC1.1 Profile of the organisation...................................................................................................3
AC 1.2 Comparative analysis of financial performance of Swing patrol and Opus recruitment
solutions...........................................................................................................................................4
TASK 2.................................................................................................................................................5
AC 2.1 Recommendations to overcome weaknesses.......................................................................5
AC 2.2 Ways to maintain and strengthen existing performance......................................................6
AC 2.3 New areas of expansion.......................................................................................................7
TASK 3.................................................................................................................................................8
AC 3.1 Assessment on existing business objectives and plans........................................................8
AC 3.2 Review of business plan and suggestions for changes to be made.....................................9
AC3.3 Action plan to implement changes.......................................................................................9
TASK 4...............................................................................................................................................10
4.1 Managing the impact of proposed changes..............................................................................10
4.2 Plan for changes ......................................................................................................................10
4.3 Improvement in the performance.............................................................................................11
Conclusion..........................................................................................................................................13
REFERENCES...................................................................................................................................13
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INTRODUCTION
“Being a small business owner can feel like a never ending race”.Small business enterprise
are privately owned corporations, partnerships or sole proprietorships which have very less
employees and less annual revenue than a regular sized business organisation. The legal definition
of a small scale enterprise differs by industry and nation (Bridge and O'Neill, 2012). A few
examples of small scale business consists a flea market, shopping mall booth, a consultancy repair
shop. These businesses typically consists of one owner and his shop. They sell their products and
services supplied by a franchise company or manufactured by the owner himself. This type of
business is flexible i.e. the owner can generally set hours at any time to accommodate customers.
These businesses have low start up costs and relies on the specific business model and what
products orc services are being sold (Schaper Volery Weber and Lewis, 2010). Small scale
businesses which provide consultancy services, like tax preparation or nutritional services, also
have very low overhead costs. This report is prepared on a small business enterprise Swing patrol
which is one of the most successful business firm from the dragon series. Dragon series is a reality
television format which feature entrepreneurs pitching their business ideas for securing investment
finance from a panel of venture capitalists. The report is going to cover profile of the company and
assessment on the current business objectives and plans.
TASK 1
AC1.1 Profile of the organisation
The company name is Swing Patrol UK limited which offers corporate entertainment such
as office parties, award ceremonies, product launches etc. The company provides a wide a range of
packages to help the customers in creating unique corporate events to wow them. They offer options
like interactive dance classes to break the ice, high flying performances and vintage DJs to bring he
sounds of the era. It was started in 2014 in Ermine Mews, Laburnum St, London E2 8BF, UK and
has flat organisational structure. This means that operatives can access and communicate with
managers very easily and speedily. This depends on workers taking more responsibility for decision
making. It helps in creating a motivated workforce (Burns, 2010). This king of structure is mostly
adopted in start up business or small business enterprise. Strengths of the cited company is that the
ability to be single boss gives more flexibility in work schedule and the opportunity to reach to the
fullest potential. The skills, talents, creativity can be maximised. Very less start up money is
required in the company. Also the firm has low operational costs. A larger percentage of revenue is
converted into profit. In the cited organisation the owner and managers are quite often one and same
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which leads to perfect alignment in decision making process. In this company governance is usually
accumulated in one or two people who are very close to the customers, the operations, and business
environment. The organisation tends to have employees with a broad job descriptions and function
in a less structured environment (Malhotra and Temponi, 2010). With these benefits it has some
weaknesses also like many times it faces difficulty in getting adequate financial resources for
operations. They do not offer fat salaries and provide opportunities and status generally given by
big companies. Th cited firm does not buy raw materials, machinery or supplies as cheaply as a big
enterprise obtain.
AC 1.2 Comparative analysis of financial performance of Swing patrol and Opus recruitment
solutions
Basis of comparison Swing patrol ( 2014) Opus recruitment solutions (2014)
Net worth £ 3 392 £1,005,402.00
Total assets £27 698 £4,955,247.00
Cash £ 3 229 £927,479.00
Total liabilities £24 306 £3,949,845.00
Shareholder funds £3 392 £1005 402
Profit/ loss before tax £0.00 £0.00
Return on capital 0.00% 0.00%
Gearing 25 8.8
Liquidity ratio 1 1.22
Number of employees 0 0
Turnover £0.00 £0.00
Cost of sales £0.00 £0.00
Gross profit £0.00 £0.00
Operating profit £0.00 £0.00
Interest paid £0.00 £0.00
Profit/loss after tax £0.00 £0.00
Dividends payable £0.00 £0.00
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Retained profit/loss £0.00 £0.00
Depreciation £2 162 £ 50 853
Audit fee £0.00 £0.00
Remuneration £0.00 £0.00
Director's remuneration £0.00 £0.00
Total fixed assets £4 240 £ 236 461
Tangible assets £4 240 £ 236 461
Intangible assets £0.00 £0.00
Miscellaneous current
assets
£0.00 £0.00
Total current assets £23 458 £ 4718 786
Trade debtors £20,229.00 £ 3791 307
Stock £0.00 £ 3861 315
Total current liabilities £23 458 £0.00
Miscellaneous current
liabilities
£0.00 £0.00
Bank loans and
overdrafts and LTL
£848.00 £88 530
Trade creditors £23 458.00 £3861 315
Other short term
finance
£0.00 £0.00
The above table shows a comparison between the financial statements of Swing patrol and
Opus recruitment solutions. Opus is located in the same geographical area in which Swing patrol is
situated i.e. London. As a result to which, both these organisations are referred to be the contenders
of one other. This competitive framework will therefore assist them to acknowledge one other's
actual market positioning to come up with more dignified work strategies (Burrows, 2015).
However, it has been interpreted from the above findings that the net worth of opus is very good
and high as compared to Swing patrol. Wherein, Swing patrol is together lacking in its total assets
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as compared to Opus solutions. It is more than double of the former enterprise along with the
subsequent constituent of its trade debtors. Furthermore, the stock ratio of Swing patrol is at a
negligible state with a considerable status of their liability as compared to another enterprise named
Opus. This is however on referring to their varied financial statements where this section has
together referred to carry out a ratio analysis method to detect the factual market positioning of both
the businesses.
TASK 2
AC 2.1 Recommendations to overcome weaknesses
It needs stamina, discipline and surprising amount of work to succeed in a small business
enterprise. Ownership of a company is not just about accomplishing a passion, it is about knocking
down all the unanticipated hurdles that emerges with the territory. To overcome the weaknesses in
Swing Patrol which are mentioned above, the following are the suggestions:
Develop a six step plan: The cited organisation has to formulate a financial plan, examine the skills
set of its employees and figure out a marketing strategy and then create a business plan. Before start
thinking about the business plan there is a need to create a life plan. The owner must build business
that supports his personal goals (Ackermann and Audretsch, 2013).
Minimise problems: The owner of the cited company must start thinking about networking,
marketing and finances . The network should build at least a year in advance. In addition to this,
target market should be focused and adequate money should be saved.
Standing out against tough competition: As a small business organisation Swing patrol may face
stiff competition especially from those enterprises which are already established. If the company
does not understand how to stand in a competitive market it may blend with the crowd. The
company has to find out some uniqueness in its activities.
Sufficient capital: The cited organisation can go for multiple bids for large ticket items and has to
make a contingency reserve for probable cost overruns. For success and growth there must be
adequate financial resources as all other resources depends on it.
Planning: The company should be treated in the same manner that larger and successful companies
treat themselves. The cited organisation has to make a strategic plan with vision, goals and some
market analysis (Stokes Wilson and Wilson, 2010). It has to develop a business plan with a detailed
budget, cash flow and break even analysis.
Expert advice: The firm has to pay a little more for a lawyer to get the business established. Good
professionals and specialists of every field will make the owner to use their expertise in solving the
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routine as well as strategic problems.
AC 2.2 Ways to maintain and strengthen existing performance
Assessing ways for maintaining and strengthening the existing performance of Swing patrol
is very necessary. There are different ways through which the company can enhance its current
performance. The firm operates its business in entertainment sector and carries out its operations in
by effective utilization of human resources, financial resources, marketing etc. Currently the
organisation is trying to create ideas and methods to bring innovation and creativity in there dance
forms and entertainment events. On the basis of the evaluation of these, the firm is putting more
efforts to improve overall working conditions, policies and procedures (Nickels McHugh and
McHugh, 2010). It has to impart efforts in its current strategies and policies to enhance the whole
performance for future growth.
To maintain and strengthen the current performance of the cited company the following are the
ways:
Engage people: The company must involve its employees in the decision making process. It will
develop a feeling of belongingness in the employees. The company will also get benefits like it will
have a wide range of ideas, suggestions which will make the decision reliable and profitable. It will
boost the motivational level of the employees and inspire them to contribute more in the company.
Feedback: Taking feedback from the stakeholders of the company is very effective. These
stakeholders can be employees, managers, government etc. Employees are the most valuable asset
of the company. They are known to each an very minute detail of day to day working and
functioning. Therefore taking reviews, opinions and feedback from the employees is very necessary
to enhance the existing organisational performance (Gronum Verreynne and Kastelle, 2012).
Budgeting:It is one another way to enhance the overall performance of the company in financial
terms. The cited organisation has to maintain the financial records in a systematic manner. It has to
make sure that the funds are utilised in the most effective way in all the areas.
Continuous assessment: The firm has to regularly review and evaluate its performance standards
and methods of appraising it. It has to assess the techniques such as deadlines, CCE methods, 360
degree evaluation etc. to know about the performance level of the organisation.
AC 2.3 New areas of expansion
It is necessary or the company to define or state the new dimensions for expansion and
growth. For bringing improvement in working practices and performance of the overall business, it
is very important. It also develops various capabilities, skills, potential, abilities and competences in
an organisation. In UK, small business enterprises such as Swing patrol are required to introduce
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new dimensions of expansion with the support of taking initiative of development. So
diversification and expansions are appropriate fields of business development to improve the
current working performance of the cited firm (Goss, 2015). The company has many rivals and
therefore it has to make effective policies for expansion and diversification. The tough competition
brings many competitive advantages with it and the organisation has to grab it and take use of it.
For this it has to create a full proof action plan and strategies. For handling new opportunities
towards expansion and development, following is the plan:
In the present context, the firm should make a new entry into new segments like it can
organise events for private persons. The enjoyment and fun which it is serving to the corporates,
now it can expand its functioning by offering amusement and frolic to the private parties. It will be
a complete new dimension for the company. Not only corporates but general public will also get the
amazing facilities of recreation and fun. This will make the company more popular and also it can
be a good promotional tool. It will help the organisation to meet its future objectives and goals. Also
this will attract more and more people towards the company which in turn will be beneficial for
improving the reputation and goodwill. In the current perspective, it is very important for the
organisation to expand its business rather than sticking to the old ones. It helps them in coping with
the threats of the competition and grabbing the opportunities in favour of the firm (Jones and
Rowley, 2011).
TASK 3
AC 3.1 Assessment on existing business objectives and plans
Business objectives and plans are vital for the success, growth and expansion of an
organisation. For achieving those objectives in the desired manner, the planning must be systematic.
In the context of Swing Patrol, alignment of business plans and objectives is necessary. Taking these
as basis, policies and procedures, new development plans can be formulated by the organisation to
take advantage of the market opportunities. Below are some points highlighting the assessment of
the business objectives and plans:
Structure of business objectives: The motive of the cited organisation is to deliver excellent
amusement and recreational facilities to its guest and clients in UK. Structure of the business
organisation aids in proposing new changes at the workplace for enhancing performance of the firm
in right direction (Altman Sabato and Wilson, 2010.). For this purpose, the objectives and plans
must be flexible enough so that any modifications may not affect the overall functioning of the cited
company.
Assessment of business objectives and plans regarding its current performance: The existing
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work practices and procedures of Swing Patrol company measures the current performance level in
the entertainment industry of UK. For this purpose, the past financial statements and figures should
be taken into account to evaluate the performance in the correct manner. Through this, the areas in
which the company is lacking can be identified to prepare actions for overcoming these.
Making changes to business objectives and plans: By taking the missing areas that are going to
determine performance assessment criteria, the changes can be initiated in the business objectives
and plans. Apart form this, an action plan is to be developed to incorporate the new changes in the
current objectives and business plans. Therefore, at this step management should try to match the
business objectives with the suggested changes. It will support in bringing improvement in the cited
organisation's performance level in the desired manner.
Impact of changes on business objectives and plans: At this step, the implications of new
proposed changes on the business plans and objectives will be determined. As it is a small business
enterprise, the process of change will take very less time to be implemented. Also, imposed
alterations will speedily show the affects on the business (Fassin Van Rossem and Buelens,2011).
Therefore, the top management will determine the level of implications of modifications on
business plans and objectives.
AC 3.2 Review of business plan and suggestions for changes to be made
For revising the business plan which is mentioned in the above question, firstly it has to be
checked wisely. It has to be reviewed on a regular basis for making alterations wherever necessary.
If it is not revised and updated on a continuous basis then it will not give the desired outcomes
which are expected form it (Hatten, 2015). It will loose its core essence if it is not reviewed
properly and timely. The review of the plan can be done through:
1. The present structure of the business plans needs some changes to make the plan more
effective and result producing. Apart from this, the the plan should be more adjustable so
that the external factors do not make much affect on it. If the affects of external factors
make huge impact on the plans, then the planning will not reap desired outcomes for the
business.
2. The number of employees is very less in the cited organisation. The company needs to
hire more employees for making the plan more successful and easy to implement. For
this, firm has to recruit employees who are talented, skilled, competent and
knowledgeable. The cited organisation has to understand the significance of human
resource in business. They are the most valuable asset for any organisation and all other
resources depends on them. They play a major role in implementing the changes proposed
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as they are the only who are going to work on those plans (Cowling Liu and Ledger,
2012). If they are trained and developed in an adequate manner they can produce amazing
results for the company.
AC3.3 Action plan to implement changes
Swing patrol company has to prepare action plan to achieve the business objectives and
goals in the desired and expected manner. It can happen by formulating the correct business plans
which enables the alignment of organisation mission and vision with the new action plan. For this
purpose, the changes in the implementation of the plan for the cited firm is elaborated here:
 At the planning step, the mission, vision and aims will be redesigned as per the conditions
and situations occur. The situations and conditions make large impacts on the planning
implementation as if they are not considered than the whole implementation goes in vain
(Southern, 2011).
 In the stage of implementing the plan, the top management of the cited firm have to specify
the motive behind the implementation of the new adjustments in the business to its
employees. The employees must be made aware of these alterations as they are the only who
will do the real job in implementation (Murby, 2005).
TASK 4
4.1 Managing the impact of proposed changes
As per the above discussion about the business plan of swing petrol corporation, it has been
founded that there are various positive and negative impact on the business activities and function.
In the context of positive manner, new modification assist in increasing the competitive advantage
for the cited venture. By implementing changes in the business strategy and plaining, company
assist in achieving the new vision, mission and goal. In the organisation, employees are largely
beneficial because they have opportunity to attain training a development programs. By this their
skills, ability and knowledge will enhance (Thornton Ribeiro-Soriano and Urbano, 2011). On the
other and organisation are largely beneficial because due the changes in the management by
business plan, it is able to prepare a new strategy to raise the market share. By developing new
strategies and planning, cited venture assist in increasing profitability and sales. This thing also
helps in improving the brand image in the market and gain more loyalty of customers.
However, by developing new changes in the organisation there are some negative impact. The
major negative impact is that it takes more time to achieve position in a systematic manner. In order
to implement new business strategy and planning, corporation have to spend lots of time as well as
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money. This will increase expenses of the company because in order to new structuring and
rearrange the management practices company have to spend capital In the context of personnels, the
negative impact of business plan is that employees may face the issue related to implement new
structure and strategy in the business performance (Rae, 2010). If employees have no knowledge
about the new strategy and proper implementation then it will create huge problem for personnels.
In this case, company are required to organise training and development programs for personnels.
4.2 Plan for changes
As per the above discussion it has cleared that Swing petrol corporation have both positive
and negative impact by the recent changes or business plan. Cited venture have to manage these
changes in a systematic and proper manner so it will able to proper implement it. In order to
manage these changes in the organisation, corporation have to communicate with employees about
the changes so as they can able to know the actual business plan and modification in the
management practices and functions (Jones and Iredale, 2010). On the other hand , organisation
required to enrolled for the job recruitment processes. describes job in an appropriate manner
according to candidates requirement. In order to implement the changes in the organisation ,
management have to recruit the candidates according to the requirement of company. Various
objectives are set in the organisation and they are needed to be managed in a p[roper way and with
assist of the manager and leader. Kurt lewin's model is most appropriate in order to manage the
changes in the organisation. The change management have various stages which are as follows-
 Unfreezing- In this stage, cited venture will begin to plan to implement the new proposed
changes at the workplace. In this stage, higher authority identify the requirement related to
necessary changes. This plan will overcome the resistance level of the employees towards
accepting the new changes.
 Transform- In this stage, corporation will prepare its personnels by mentality and physically
to accept the changes in the management. For this company will provide various training a d
development activities (Ministry of Education and Culture UK, 2012).
 Refreezing- In this stage management will ensures that entire work is performing according
to the new set practices and procedure.
4.3 Improvement in the performance
It is after executing the newer set of alterations at the workplace that has necessitated the
Swing Patrol Company to continually supervise the factual measures of those proposed changes.
This is basically to assure that the modified context should accurately meet the business
requirements with a prompt usage of varied monitoring procedurals as a mean of assisting the cited
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entity (Chittithaworn Islam Keawchana and Yusuf, 2011). It is also to ascertain any gap between the
anticipated performance and the factual level of performance with a subsequent measure of
developing accordant strategies of betterment. Such tactic can also applied to discover any changed
behaviour of the employees after adapting the altered set of work by together assessing their carried
work performance to meet the stipulated objectives of the business. An applied procedure of
monitoring will also assist in minimizing the associated risks that is prevailing in the newly
enforced plan. It is in case if the proposed changes are not effective in nature then it can be
managed and controlled at an early stage of improvement. This will also tend to deflect any
negative affect on the overall performance of the quoted firm where after a precise implementation
of such modifications, they will constantly refer to observe the factual consequences of change at
the workplace. It is however with a prime consideration of taking right decisions and take corrective
measures to prevent any associated risks with the agenda of change (Forsman and Temel, 2011).
It is with a prime assistance of Gantt Chart, where Swing Patrol Company can tend to
proctor the measurable performance of their workers in a suitable manner. It is with the aid of
varied adopted tools to determine the development level of the enforced change by executing potent
plans for it. It is however required to be done within a stipulated time frame with a primary support
of Gantt chart that will allow the enterprise to stepwise employ the modifications in to improve the
overall performance of the establishment (Islam Khan Obaidullah and Alam, 2011). This will
together help the cited firm to save their incurred expenditures by resolving varied business issues
while executing the proposed changes at their workplace. As a result to which, the quoted entity is
largely supported by the applied Gantt Chart to measure and monitor their existent level of
performance.
Activity (in months ) 1 2 3 4 5 6 7 8 9 10 11 12
Setting objectives
Conducting market research to
know about the demand of
consultancy services
New product development
Gaining large market share in
UK
Create a good brand image
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Increase customer satisfaction
level
Expand the business at
international level
Implementation of the changes
Monitoring and controlling
Evaluating and taking right
actions by controlling over the
various activities
CONCLUSION
The above report concludes that small business enterprises plays a significant role in
development of economy of a nation. It discusses about the profile of a small business enterprise
Swing Patrol company. It analyses the financial states of the cited company and similar sized firm
in same geographical area. Also it recommends appropriate actions like planning and expert advice
to overcome the weaknesses of the organisation. Further, it investigates current business plans and
objectives and reviews them. So it can be concluded that by using change management model, the
suggested changes have been managed efficiently. It is recommended to carry out an action plan
regarding the poor financial status of the company as it is shown in the comparative table.
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