Analysis of Small Business and Entrepreneurship Studies

The provided assignment is a detailed analysis of small business and entrepreneurship studies. It includes a list of relevant articles, journals, and online resources that explore the topics of small business management, entrepreneurial competencies, and enterprise policy interventions. The document also provides a brief overview of various research findings on small businesses, including their impact on innovation, firm performance, and economic growth.

SMALL BUSINESS
ENTERPRISE

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Produce a profile of small business identifying its strength and weakness.......................................3
1.2 Analysis of business using comparative measures of performance...................................................4
TASK 2..........................................................................................................................................................5
2.1 Appropriate actions to overcome identified weakness......................................................................5
2.3 Identification of area in which new business can be enhanced.........................................................6
TASK 3..........................................................................................................................................................7
2.2 Ways through which performance of organization can maintained and polished.............................5
3.2 Revise plan to incorporate appropriate changes...............................................................................7
3.3 Action plan to implement changes....................................................................................................7
TASK 4..........................................................................................................................................................8
4.1 Impact of proposed changes on business and its workforce.............................................................8
4.2 Planning regarding management of changes in business..................................................................8
4.3 Monitor improvement in performance of business within specified timescale.................................9
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Small business enterprise means organization which has less than 50 employees. In Uk
here is special important to small business enterprises. This is because they places important role
in social, economical growth. These are the associations who respond to external changes in
little less. Sometimes, they have shortage of funds. This affects their business operations in
negative manner (Bridge and O'Neill, 2012). Hence there is requirement of proper management
of business operations. There are many issues which arise while pursuing small business
enterprise. This report is based on hospitality industry organization i.e. Pollen Street Social
Restaurant. This restaurant was established in 2011 by Chef Jason Atherton in London, UK. In
this report, there is discussion about investigation about performance of business operation,
propose changes to improve business management and performance. Apart from it also en-lights
revise business objectives and plans after incorporating alterations, examination about impact of
change management in business operations.
TASK 1
1.1 Produce a profile of small business identifying its strength and weakness
Type- Pollen Street Social Restaurant is the organization which deals in providing
restaurant service in London. This organization serves mainly modern European dishes which is
famous in society.
Size- Pollen Street Social Restaurant is small size organization having seating capacity of
60 people. There is competition in restaurant sector in YK , so this organization has objective of
attaining good image which is relevant and significant for attaining profits.
Structure- Pollen Street Social Restaurant has flat structure because there are fewer
employees and hence they operate business in team. As there are 4 chefs, out of them 2 are part
time. 1 receptionist, 3 people for cleaning purpose. So they communicate directly with each other
in case of need.
Objective- Objective of Pollen Street Social Restaurant to become favorite place for
people in terms of Modern European dishes. Hence Chef Jason Atherton of Pollen Street Social
Restaurant thinks of new innovations in their product and services. They take feedback from
customers and in case of negative reviews, corrective measures are frequently. This helps in
achieving long term sustainability in industry (Cowling, Liu and Ledger, 2012). Objectives of
Pollen Street Social Restaurant is to provide best quality products and services to consumers

within reasonable rates. Mission of this organisation to diversify products and services in the
market . Vision of this organisation to expand business in different countries with multi- cuisine.
There are some factors which prove to be positive for association. While there are some
aspects which does not contributes towards enhancement. For instance: team working in Pollen
Street Social Restaurant is very punctual so they can attain good image because orders are
frequently placed. This is important in hospitality sector. Pollen Street Social Restaurant has
some factors which contribute towards development. They are discussed as under-
Strength- innovation and adaptations are strength for Pollen Street Social Restaurant
because this satisfies craves of customers. These days, there are many innovations taking place in
restaurant segment related to eatable and ambience, so this attracts customers to be part of Pollen
Street Social Restaurant for longer period.
Weakness- There is issue of miscommunication because of lack of proper channel.
Communication is way through which ideas, thoughts of other person can be understood. In
Pollen Street Social Restaurant there is no formal way of interaction among employee. For
instance if there is alteration in order from customers, then it is essential for waiter to convey this
to production department, so possibilities of lacking wrong order is low. Apart from this labor
turnover rate is high. Reason behind the high turnover of labor is overworked on an individual
and young people want development on the job which they don't get it.
1.2 Analysis of business using comparative measures of performance
Business could be successful with the help of use of different aspects which are relevant
and significant for achieving goals and objectives (Di Domenico and Miller, 2012). As
promoters of Pollen Street Social Restaurant are thinking to achieve long term sustainability, so
it is essential to improve performance. There are different aspects through which it is known that
corrective measures are taken or not.
Customer satisfaction- customer consider as the king in business. In restaurant sector
satisfaction of customer is very important. In order to analyze performance, customers are the
base which can be evaluated. In order to compare customer satisfaction. quality of product and
services must be improved. For instance: customer is not satisfied with the taste and quality of
dish, then corrective actions has to be taken. Afterwards feedback must be taken. Improvement
of the product and services can be achieved when customer is satisfied.
Employee’s motivation- Business can be owned and managed by owner of Pollen Street
Social Restaurant. In this there are many different demand and desire of employees which has to
be satisfied. Workforce is the base which works in order to achieve its goals and objective
successfully in industry. When work force is satisfied then they are ready to perform well. In
order to motivate and maintain energy of workforce of Pollen Street Social Restaurant,
motivational theory of Maslow’s need hierarchy theory has to be understood. As per this theory,
there are five levels of needs of employees.
1. Financial comparison:

2009 2010 2011
Sales 360 396 459
Sales growth Sales Y2 - sales Y1)/sales Y1 - 10.00%
15.91
%
Gross Profit 230 252 272
Gross Profit Margin Gross Profit/Sales (%) 63.89% 63.64%
59.26
%
Operating Profit 108 101 49
Operating Profit Margin Operating Profit/Sales (%) 30.00% 25.51%
10.68
%
Total Debt 215 300 462
Shareholders fund 304 347 344
Gearing Total Debt/Total Debt + Shareholder Funds (%) 41.43% 46.37%
57.32
%
Finance Expenses 9 12 16
Interest Cover Operating Profit/Finance Expense (x) 12
8.41666666
67 3.0625
Current Assets 65 114 94
Current Liabilities 29 48 102
Liquidity Ratio Current Assets/Current Liabilities 2.2413793103 2.375
0.9215
686275
Net Profit 79 72 26
Return on Equity Net Profit/Shareholders Funds (%) 25.99% 20.75% 7.56%
Return on Capital Employed Operating Profit/Total Debt
+ S’holder Funds (%) 20.81% 15.61% 6.08%
In this profit of this pollen street decreases according to previous year net profit in 2011
is 26. sales growth of this organization increases with its 15.91% according to previous year.
according to profit performance is not good of the organization. Return on capital is decreases
as compare to previous year so in this case pollen street should analysis the market and after
that invest its fund .
2. Non- financial comparison: In this feedback of the pollen street is not so good.
For improving the feedback of organization interacting more with employee and

its customer. This help in retain employee and customer in this organization for
long .
 First is basic need, which includes clothes, food and shelter. This is the need of every
individual, so it must be satisfied with sufficient basic pay.
 After it, safety and security need arises. As per this need, employees wants safe
environment at their work place. Hence there must be good working condition with
proper ventilation, air, light, etc.
 After, it there is feeling of love and belongingness. At work place, employees not only
work but they have friendly relations with others. This has to be maintained through
entertainment activities such as games, events, party, etc. among workforce of Pollen
Street Social Restaurant (Duberley and Carrigan, 2013).
 Self esteem is the nest need which has to be satisfied by managers of Pollen Street Social
Restaurant. When performance of Pollen Street Social Restaurant is good, then there
must monetary benefits and rewards have to be present. This helps in motivation and
employee’s of Pollen Street Social Restaurant give their best.
 At last need of self actualization arise. This is the need which differs at per person and
time. This is the upper most need in hierarchy which must be satisfied in order to
maintain long term relations with employees.
With the help of this theory of maslow it define that understanding customer basic need
and full fill it so can customer retain for long . This theory help in maintaining better
relationships with customers .
Operational efficiency- This restaurant operations are related to cooking dishes and
serve within specified time to its customer . There are some dishes which may lose taste in case
of delay in serving. When there is negative feedback related to some beverages, then it must be
rectified. According to this, there is requirement of some changes which are relevant in current
market. Continuous improvement technique must be used by managers of Pollen Street Social
Restaurant in order to achieve good brand image in industry. As per this technique, there must be
less defects and managers of Pollen Street Social Restaurant aims at improving services. This
helps to reduce cost and efforts are done to make improve profits (Eid and El-Gohary, 2013).
TASK 2
2.1 Appropriate actions to overcome identified weakness
Small scale restaurant Pollen Street Social is facing problem in communication and
labour turnover rate is high (Yunus, 2017). As recommendation, there are some solutions of this
problem, which are discussed as under-
 Pollen Street Social Restaurant there is proper in communication, in order to resolve this
issue, there must use of proper communication channel such as business phone. This
helps in conveying information frequently to appropriate person. For instance while
purchasing of raw material; it is easy to ask with chef. This reduces time as well as avoid

duplication of commercial actions at Pollen Street Social Restaurant. This can be
understood with the help of 7 C's. As per this model they are clarity in communication,
providing completeness in message, concreteness, coherence, courtesy, correctness,
conciseness. With the help of this it is easy to correct the problem which is arise and in
communication there should be conciseness in the message. In this principle there is
positive impact on communication of company. (Cowling, Liu and Ledger, 2012)
Another problem is high labor turnover. In order to over this issue, there must be clear
communication with employees. Managers has to analyze demand and satisfy it when they
perform well. Promoters of Pollen Street Social Restaurant must timely take personal interviews,
so they can judge employee’s perception. There must be some decision making authority, so they
feel responsible and perform operations more effectively (Gill and Biger, 2012). In order to
reduce labor turnover in Pollen Street Social Restaurant, there must be use of Malow's Need
Hierarchy theory. As per this theory there are five levels needs i.e. Physiological needs, Safety
needs, Love and belonging needs, Esteem needs, Self-actualization needs which has to be
considered by managers. In this manger need to fulfill the basic need of an employee and
providing them protection or safety . With ths achieving one level of need, employees wants to
satisfy second need and understand its employee needs and wants. This helps to retain them for
longer time in Pollen Street Social Restaurant and reduce labor turnover.
2.2 Ways through which performance of organization can maintained and polished
These days, marketing is one of the important aspect which has to be considered by
managers of Pollen Street Social Restaurant. This is the measure through which restaurant can
create brand image in industry. There are some ways through which performance of organization
can be maintained. They are discussed as under-
 Taking feedbacks. This are the reviews taken from customers. This is the best way to
perform well. When some positive review is gained related to ambience of Pollen Street
Social Restaurant, then more emphasizes is done to renovate it. This also provides
knowledge related to customer’s expectation which is important and significant for
enhancing performance of association.
 Advertisement through social media. Social media is the platform through which
managers of Pollen Street Social Restaurant can communicate with society. When some
new beverages is presented, or discounts are launched, then it must be marketed through
online source i.e. Facebook, Instagram, LinkedIn, etc. Apart from this there must be
hoarding and banners at road side, college campus, events which helps to create
awareness about Pollen Street Social Restaurant among people.
 Managers must motivate employees to work with latest and innovative approaches. When
they provide some idea promoters of Pollen Street Social Restaurant must appreciate
them. This boosts employee’s motivation and they give their best. Benchmarks have to be
set by managers and on attaining it rewards must be presented to employees. This
improves efficiency of worker as well as Pollen Street Social Restaurant. Job
responsibilities have to assign according to employees’ skills, efficiency, competences

and they are responsible for its positive or negative outcome (Gronum, Verreynne and
Kastelle, 2012).
 Market analyze must be done by managers of Pollen Street Social Restaurant. This helps
to know about competitor’s policies which assist in working according to latest trends.
2.3 Identification of area in which new business can be enhanced
Pollen Street Social Restaurant is small scale enterprise which operates in UK. In order to
enhance profits and revenues, managers of organization must expand business (Wang and
Altinay, 2012). Expansion of business can be understood with Ansoff’s Matrix. This matrix is
discussed as under-
Market penetration- This is the technique which is used in order to satisfy existing
customers with same product and services. This emphasises on improving quality and provides
best. This can be done through attractive discounts by Pollen Street Social Restaurant for
youngsters and college mates.
Product development- This is stage where new product is launched among existing
customers. As Pollen Street Social Restaurant is specialized in Modern European dishes, so
managers can think to launch Mexican dishes. This is part of product development and aims at
improving sales.
Market development- This is the stage in which target customer are new but product is
same. When managers of Pollen Street Social Restaurant launch free delivery services, then this
relevant for customer satisfaction as they are getting eatable on their doorstep.
Diversification- This is the last block in Asoff’s Matrix which is risky because there are
possibilities of failure. As per diversification, new product is launched for target consumer. For
instyance: these days people are more health conscious, so managers of Pollen Street Social
Restaurant can launch herbal beverages and target consumers are older people (Henrekson and
Sanandaji, 2014).
From the above discussion it is clear that market development is best approach for growth
and development of Pollen Street Social Restaurant. This can be done with launching online
application for food delivery.
TASK 3
3.1 Assessment of existing business objectives and plans
Current objective of Pollen Street Social Restaurant is to achieve long term sustainability.
This can be done when customer remain satisfied. In order to satisfy customer, there is
requirement of different strategies such as discount, attractive ambience, innovation in food and
beverages. These are the some aspects which ahs o be considered while performing business.
The most essential factor is to take care about quality and hygiene factor.
Pollen Street Social Restaurant has some negative aspect also, that they do not provide
customized services. There are some changes which are asked by customers, so these must be
provided. Employees of Pollen Street Social Restaurant are weak at analyze customer’s need and

treat them wisely. There is lack of proper planning and guidance through which commercial
actions affects in negative manner (Lambert and Davidson, 2013).
Objectives Current skills Future prospects
Communication skills This skill is lacking in organization
because of improper
communication. To know the
review of the customer regarding
the services communication play
important role.
There is requirement of proper
communication skill such as
business phones, e- mails from
which organization interact with
its customer’s
Labor turnover Employees have more labor
turnover in organization because
of lack of motivation and
individual work load. Younger
Employee don't get feel
developed in the organization
There is requirement
motivational techniques such as
monetary and non monetary
sources. There is need to develop
younger employee and provide
them opportunities.
3.2 Revise plan to incorporate appropriate changes
There is requirement of some alteration in current business plan. This is because there are
some flaws and this affects business operations from attaining goals and objectives. Managers of
Pollen Street Social Restaurant must be flexible in their working style, so they can use different
strategies which are important and essential for performing business operations. In revised action
plan, policies are lenient and workforce of Pollen Street Social Restaurant also has chance to take
part in decision making. There are different aspects which have to be taken care such as training
of new techniques, this helps to get perfection in business operations and hence overall
performance of Pollen Street Social Restaurant gets improved.
Managers of Pollen Street Social Restaurant provide appropriate guidance as per
requirement, so there is no confusion related in working style. Promoters promote employees to
provide new ideas to complete task (Teece, 2012). For instance when there is some complain
from customers, then as per revised plan employees have right to resolve on their own by
providing best solution.
Objectives Current progress rate Sources of
improvement
Scope of improvements
Communication skills Out of 10, 7 rating is
achieved
In order to improve
communication skill
there is many factors
such as conferences,
There is requirement of
training method to
employees which helps
to deal with changes.

interaction with peer
members etc.
This program-me
execute by HR team.
They take the
responsibility of
providing training to
employee's
Labor turnover Out of 10, 6 rating is
achieved.
In order to improve
labor turnover there
are many ways such as
regular interaction
with employee's,
employment
engagement etc.
There is requirement of
change in motivational
technique as per
demand of employees. It
required when the
technique use from long
time and it is outdated.
3.3 Action plan to implement changes
In old action, plan there is more complexity because of rigidity in business operations.
Hence in new action plan, proper planning and customized services are promoted. This can be
understood with Kurt Lewin’s Model of change.
Unfreeze- This is the first stage in which managers of Pollen Street Social Restaurant
check that workforce is ready to change. This can be possible when managers motivate employee
to work with new technique. In order to motivate employees, manager can attach their
performance with performance appraisal technique. While implementing change in action plan, it
is essential that manager of Pollen Street Social Restaurant must ensure that workforce is ready
to change. There are many questions in mind elated to customized services which must be
answered by managers, so they know target which has to be achieved (LAU, Chan and MAN,
2012).
Change- This is the execution stage in which planned actions are taken. Managers must
start customized services in terms of providing different dishes and beverages. This helps to keep
customers satisfied and helps to compete in industry. When some new technology is placed in
organization, then there is requirement of training to employees. This helps to keep employees
satisfied with workplace and hence brand image of Pollen Street Social Restaurant also raise.
Refreeze- After applying change, this is the stage where changes are accepted by
employees. When there is provision of customized services then this change in static and positive
results in terms of good profits and revenue can be earned.

TASK 4
4.1 Impact of proposed changes on business and its workforce
In the organization when some new changes take place in business operations of small
enterprise then it gives positive as well as negative impact. As managers of Pollen Street Social
Restaurant thinking to launch customized services such as changes in eatables according to
consumer demand. So it will be beneficial for organization's growth but at the same time there
are some negative flaws which are discussed as under-
 Positive impact- When customized services are launched, then consumer prefers to be
part of Pollen Street Social Restaurant because they get what they want (Obeng and
Blundel, 2015). This gives impact on organization's revenue and profits. Employees are
also satisfied that they are competent to extra market. When some new communication
channel is implemented then it helps to share information with concern person and within
appropriate volume.
 Negative impact- There is also some negative compact such as changes and employee’s
dissatisfaction. For instance, while working in team if workers do not understand changes
and they do not take interest in accepting changes, then this affects performance of team.
This ultimately affects profits and brand image of Pollen Street Social Restaurant. For
manage this organization should encourage humor and create positive
environment ,providing them proper knowledge so that employee's take interest in their
job.
4.2 Planning regarding management of changes in business
Planning is the process through which business operations can be performed in best and
appropriate way. This is the basic function for managing business operations at Pollen Street
Social Restaurant. In restaurant there is competition so
Proper analysis- First step to implement change is to analyze situation. This is important
and relevant because it provides guidance how to implement alterations. There is requirement of
alteration in food and beverages of Pollen Street Social Restaurant, which needs to according to
consumer’s demand (Ramdani, Chevers and Williams, 2013).
Execution- After analyzing situation, there is situation of execution. This is the stage in
which managers alter menu. There is requirement of training of Chef of Pollen Street Social
Restaurant which helps to maintain quality of customized eatables.
Review from employees- After applying changes in business operations. Reviews from
employees are taken. There are some problems to employees in implementing changes. Hence all
queries and issues get resolved.
Taking corrective measures- at last, after taking reviews, there is requirement of taking
corrective actions. This stage is crucial because it makes Pollen Street Social Restaurant get hype
or at floor.

4.3 Monitor improvement in performance of business within specified timescale
When some changes are implemented to business organization, then this must be
implemented within specified time. Customized service will be implemented within 6 months
and communication channel are implemented within 1 year. There are some basis through which
it can be judged that alterations are implemented in proper way or not (Storey, 2016).
Customer satisfaction, lower employee’s turnover and absenteeism, efficiency in
performing operations, etc. arte some aspects which shows positive results of implementing
changes. When employees are ready to work under altered environment and there s improvement
in their performance, then managers of Pollen Street Social Restaurant must appraise
performance on the basis of working style. This makes employees’ satisfied and they are
motivated to perform well. Hence there is increment in brand value and profits of Pollen Street
Social Restaurant.
In order to monitor performance of employees, managers of Pollen Street Social
Restaurant can be personal development plan and performance audit. This is the way through
which regular check on performance of employees can be done. There is regular strategies which
helps to analyze and record improvements in performance of Pollen Street Social Restaurant .
Strategies which an organization use for monitor performance are frequent performance
feedback and use peer review in which co-worker praise another coworker and highlight
postive part of performance
CONCLUSION
From the above discussion it is clear that small business enterprise requires changes in
their working style, so they can compete win industry and maintain long term sustainability.
Managers have to lead teams so coordination can be achieved. Small business enterprise can
expand business with accepting new changes taking place in market. In hospitality feedbacks
from clients and performance appraisal is the best ways through which operational efficiency can
be achieved. Market development must be used by small organization to expand business which
gives direct impact on sales and revenue. Kurt Lewin’s Model of change helps to implement
changes in business operations.

REFERENCES
Books and Journals
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Gill, A. and Biger, N., 2012. Barriers to small business growth in Canada. Journal of Small
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Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
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Obeng, B. A. and Blundel, R. K., 2015. Evaluating Enterprise Policy Interventions in A frica: A
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Ramdani, B., Chevers, D. and A. Williams, D., 2013. SMEs' adoption of enterprise applications:
A technology-organisation-environment model. Journal of Small Business and
Enterprise Development. 20(4). pp.735-753.

Storey, D. J., 2016. Understanding the small business sector. Routledge.
Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
management studies. 49(8). pp.1395-1401.
Wang, C. L. and Altinay, L., 2012. Social embeddedness, entrepreneurial orientation and firm
growth in ethnic minority small businesses in the UK. International Small Business
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Yunus, M., 2017. Social business entrepreneurs are the solution. In The Future Makers (pp. 219-
225). Routledge.
Online
Meaning and Nature of Small Business. 2017. [Online]. Available
through:<https://www.toppr.com/guides/business-studies/small-business/meaning-and-
nature-of-small-business/>.