Small Business and Entrepreneurship

This assignment provides a comprehensive collection of research articles, journals, and books related to small business management, entrepreneurship, and innovation. It covers various aspects of entrepreneurship, including start-up, growth, and maturity phases. The resources also delve into social entrepreneurship, enterprise education, and the role of networks in SME innovation. Additionally, it includes studies on freelancers as a form of small business, ERP integration issues in small businesses, and collective entrepreneurship in developing countries.

SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Strengths and weaknesses of small businesses enterprises..............................................1
1.2 Comparing small businesses and analysing its performance...........................................2
TASK 2............................................................................................................................................3
2.1 Steps to overcome weaknesses in businesses...................................................................3
2.2 Methods to maintain performance and strengthen them..................................................4
2.3 Scope of small businesses for expansion..........................................................................4
TASK 3............................................................................................................................................6
3.1 Analysis of Businesses Objective and Plans....................................................................6
3.2 Improvising businesses plan to make appropriate changes..............................................6
3.3 Action plan for implementing changes.............................................................................7
TASK 4............................................................................................................................................8
4.1 Influence of changes occurred in the business plan.........................................................8
4.2 Management of changes in businesses.............................................................................9
4.3 Monitoring performance of businesses for given time period..........................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Small Business Enterprises are the firms which are privately owned collaborations, that
may exist in partnership or own proprietorship (Abor and Quartey, 2010). They have fewer
employees and their annual revenue is less than any regular sized corporation. They are
classified on the basis of their annual revenue, sales, assets, net profits and number of employees.
This report is based on Austin Fraser, which is a consultancy firm. It consists of people who are
specialized in IT, life science and engineering. They are recruitment consultants. Main purpose
of this report is to understand the concepts of small business enterprises and their strengths and
weaknesses. There are certain strategies and plans implemented to monitor the performance and
practices of done by Austin Fraser. Various methods have been described in the report to
overcome the weaknesses of business. Some changes have been suggested to improve the quality
of business. Along with that, effects of changes on business policies are analysed in this report.
TASK 1
1.1 Strengths and weaknesses of small businesses enterprises
Small business is independent one organisation it may consist of the fewer than the 500
employees. Company like Austin Fraser is spread on very small locations and they deal with the
small markets only with targeting the particular focused audience. Being a small company, it is
easy to deal with the people consumer at the ground level and this can help them to know their
demands and needs so that they can produce products accordingly. They are liberal no one can
dominate them they are own boss (Ackermann and Audretsch, 2013). They run their market
according to them. There are few weaknesses of Austin Fraser being the small business which
are as follows:-
Financial limitation: - For small business organisations, it is hard to raise too much
capital for investment or for other projects because of lack of money. Unlike big organisations,
bank doesn't provide loans easily to small business enterprises as they give to other big
companies. Along with that, too much formalities they have to do while asking for the loans
from banks.
Staffing: - Generally, small business organisations don't give smart salary to the
employees and thus, workers in Austin Fraser hardly find such opportunity in this firm. Their
mostly time spend on away doing the day by day running things they got few time to do focus on
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the targeted objective (Altman and Wilson, 2010). They have heavy workload and they don't
recruit much employer or if they do so then they don't give them a mart income.
Strengths of Austin Fraser being the small business enterprise are as follows:-
Greater flexibility:- This is the advantage of small business they can do things by their
own they don't have to get in trouble by asking permission from anyone in fact their product
lines are very small they can easily fine the loopholes.
Motivation: - The owner motivate employees by their own they work hard, and quite
longer time and as a small organisations its easy to involve by the workers easily and motivate
them by giving bonus etc.
1.2 Comparing small businesses and analysing its performance
Key success for Austin Fraser is its capability of offering reasonable programs. This
company has increased its consultancy centres and added more efficient methods of talking to
clients to understand them well (Bellucci, 2010). By this they are getting great exposure of
various activities and extended their services . This would give their customers with maximum
satisfaction. Below presented a statement of two major recruitment companies so that valid and
suitable comparison or differentiation between them so that better and effective distinction in
them could be done for gaining better results:
Agency Central Limited Austin Fraser
£ £
Sales 250 350
Cost of sales 120 150
Gross profit 130 120
Overheads 20 30
Net profit 110 50
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Balance sheet for year ended 30th April 2017
Year Agency Central Limited
2017 (Value in £)
Austin Fraser
2017 (value in £)
Fixed assets 50 40
Stock 20 25
Debtors 6 4
Bank 3 5
Total Assets 79 74
Creditors 15 24
Bank overdraft 64 50
Total Liabilities 79 74
Current ratio = current asset / current liability
Agency Central Limited 2017 Austin Fraser 2017
Net profit margin = net profit/ net sales *
100
110/250*100= 44
Net margin = 50/350*100 = 14
Gross profit margin= gross profit/ net sales
* 100
130/250*100 = 52
Gross margin = 120/350*100 = 34.28
On the basis of this provided statement which signifies and depicts the comparison between
Agency Central Limited and Austin Fraser, the net profit of a Austin Fraser is more. This stated
that management have a good command over on working which enable in order to accomplish
all associated targets in an appropriate and suitable frame. Although, they also have an
appropriate gross profit with suitable comparison in sales. Thus, another small business is good
but not as much as compared with Austin Fraser. Thus, management need to made continuous
improvement in their working so that better results and targets get accomplish in near future
context. Not only this, business could use their balance sheet as well for making a valid
3

comparison between them and their major competitor. There are certain other aspects also get
articulate which should be analyse by an organisation for measuring their assets and liabilities:
Gross and Profit margin: By calculating or analysing the profit margin of this company
in order to make it the most profitable in terms of its financial counting. This is basically the
main aim for any business to be established. Also net profit is required to calculate all the taxes
paid and net sales of the firm. All these analysis help in better decision making of the businesses
and make them achieve higher targets of earnings margin with increased net profit.
Turnover analysis: The key aspects for checking the performance of businesses requires
its turnover ratio to be calculated. It is basically defined as received money or debtor which
occurs in the company every now and then (Bridge and O'Neill, 2012). In Austin Fraser there
is no bad debts and never a situation has come where collection period of account is null. This
basically symbolises that every member is paying their membership on time and also it denotes
that there is high member turnover.
Internal working of system: This may include many factors like the number of
customers that the firm has attracted. Whether they are connected to the firm on regular basis or
not. Statistics are changing for every second which needs to be conseidered (Burns, 2010). The
types of services provided by Austin Fraser also decides the count of customers for this firm. If
their services is not appreciated by people then it is quite possible that they may loose their
clients. They are required to do market study where they should monitor their own market
position which is either increased or decreased in compared to their competitors. The major task
of this organisation is to satisfy the workers and staff members and solve all their query or
problems occurring to them.
TASK 2
2.1 Steps to overcome weaknesses in businesses.
Every business has many positive characters so that they can attract many consumers but
along with that there are few weaknesses too in firm like Austin Fraser so its important to deal
with them . Weaknesses are the demerits of company which may not appear as big but can badly
affect later. Following are the several recommendations which required to implement by the
CEO of Austin Fraser so that all major weakness could be minimise as well as effective
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operations get promoted. Thus, on the basis of reflected issues, major suggestion to improve such
areas define as follow:
 Financial limitation is a major weakness of a company which need to improve in a define
framework. For this aspect, business managers have to evaluate and interpret the
statement of a company in timely basis by conducting audit. With effective and
appropriate and effective auditing of financial reports, management become able to
accomplish their targets in a suited manner. Another major problem or weakness of a company is their number of associates. Staffing
present as an emerging problem in Austin Fraser which need to improve. Thus, to
improve staff related problems which most probably arise due to not providing salary on
time, incentives etc. could be improve with effective HR practices. Thus, management
need to improvise their HR practices so that staff related problems could be deal. Lack of plan:- According to the research studies this is found that small business
organisations do not pre plan and due to its they remain at a position in which there is no
growth (Chell, Nicolopoulou and Karataş-Özka, 2010). Pre planning is compulsory if the
cited firm is seeking for growth and some amount of the profit . . Planning is a rough
deign of what will they going to be doing on next step.
 Lack of focus:- There are times when small firm tends to change their priority, issues and
goals time by time. this is make them not focus well on their objectives and could not
achieve success. (Down, 2010).
2.2 Methods to maintain performance and strengthen them.
Austin Fraser has thought of various plans and strategies to investigate the techniques of
this businesses for monitoring their performance and steps to strengthen them. Some of the plans
to be implemented in this organisation are:
First method includes maintaining and strengthening the company's policies and build a
strategic alliances. This basically defines analysing business assets and facets by comparing it
with other firms. This method actually means establishing a partnership among various firms. All
these firms after forming connection, share resources and knowledge and this help in
development of new products and building new facilities (Fassin, Van Rossem and Buelens,
2011).
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The second step taken by Austin Fraser is to grasp opportunities to grow the market size.
There should be awareness of brand for growing additional opportunity.
Another method utilized in this company while having any financial problem is of taking
some risks. Until and unless the organisation would not take any risk at correct time then great
opportunities would miss. For Austin Fraser, they use strategic arrangements to reduce the
company's risk factor by taking up big projects and with guaranteed investments. . In real
scenario, strategy used by this company is by making two firms to invest with equal share for
same project, then the percentage to loose for both of them is half from total project share. This
makes pressure to be divided among all the partners and in case of any failure there would be no
tension caused among the company people.
One very important process followed by this company to gain success and strength in its
performance is by creating franchise of the firm to other areas and sectors so that it would have a
global reach and maximum client handling scope. The location plays a very important role in
either establishing the business to new heights to make the business go down. For this firm
location is not a problem (Forsman and Temel, 2011). It has been established in lot of areas so it
will spread on large scale. Franchising require national advertising campaigns where there would
be requirement of revenue (Goss, 2015).
2.3 Scope of small businesses for expansion.
Recently, there has been a survey done for small and medium-sized businesses which are
globally very successful and essential for UK economical growth. They provide a competitive
edge in market. Methods used for expanding business which is already existing is tough at times.
It would have been already reached its peak and came down from the way in time to push back
to get into action. Those methods include:
Collaboration: This is the best method to save a business from getting collapsed or
drowned. This process involves meeting skills and experience of Austin Fraser businesses
strategies to that of another partner whose idea matched with theirs. If the companies collaborate
with each other it would increase their customer base and help in raising the awareness of brand
with their customers in the target market.
Franchising: For a business which is already existing for such firms to expand their
business they need to franchise their establishment to other reputed agencies or companies. This
6

would increase their customer base and give them a larger audience to expand their income and
revenue.
Exporting: The best plan for increasing the business investments and performance is of
exporting the products to wider range of the global map. By dong this it would not only have
customers in national market but also gain economy from international market (Gronum
Verreynne and Kastelle, 2011). This will increase the revenue to a large extent. The demands of
the British products have increased immensely due to exporting it to larger market.
Deliver online: Along with the stores which are present at certain locations, if this
company provide help from online factors then the customer base would increase greatly. There
can be many advantages from this approach because extending their reach from local areas to
online services would expand their businesses immensely. Also there would be a feedback
section provided so that customer can provide suggestion and file their complaints against any
services if not appreciated. The geographical reach of Austin Fraser to customers would
improve.
Buy another businesses: This can be a major risk taking step for any business firm
where a lot of things need to be considered while buying another business. Specially for a small
business enterprise like Austin Fraser, the factors which are affected in acquiring another
company, includes amount of money, time, legal complexities and employee force (Hatten,
2015). If in case all these factors are to be managed properly then it would guarantee a great rise
and increase in the market share for that small scale company and it will lead to accelerated
growth.
TASK 3
3.1 Analysis of Businesses Objective and Plans.
For any company to improve its financial condition it is important that it must increase its
profit margin considerably and for that innovation is a must demand. To prepare strategy Austin
Frazer must understand the mission, vision and goals of business plans before launching any
product in the market.
 Vision for staffs: A company must support to its employee for their effective and
efficient performance while performing a task. Providing safety programs for the
employees and also training of employees.
7

 Consumers vision: It is responsible for creating relationship with employee and
customers and providing client satisfaction as they are the end users.
 Objectives of shareholders: In this the company earn higher profits investing more and
organisation growth and development.
 Objective of Austin Frazer: It includes tasks to attract more and more customers in
providing them best jobs. Giving clients opportunities in biggest of firms and also giving
right consultation to choose appropriate carrier path. It provides increased reputation of
Austin Frazer by increasing the job satisfaction to the clients (Kitching and Smallbone,
2012).
3.2 Improvising businesses plan to make appropriate changes.
A revision of business plan is important for any organisation if Austin Frazer wants
continuous growth. It is done to overcome weakness of existing plan. Revised business plan is
made after checking environment condition, market demand and various other analysis for the
business growth. It helps in completing the task and achieving the goals of Austin Frazer in the
given period of time.
Few of the ingredients or tools for the revising business plans to incorporate appropriate
changes are:
 Strategy: In order to increase the profitability of Austin Frazer it has to consider its
market image, employees communication standards. This will increase the scope of the
company to grow more (Lambert and Davidson, 2013). In order to increase the reach use
of more promotional tools like the internet media and portals. To increase the
performance of employees. Employers have to make a committee who can check out to
the working and performance of every employee. Proper training and enhancement of
their communication skills must be included in the strategy.
 Structure: Proper structure formation of organisation will help staff understanding their
role in Austin Frazer company. There must be a hierarchy so that they could understand
to whom they are accountable to. Hierarchy ensures data abstraction and employee
understands their value at every level on which they work.
 System: System ensure the accountability of each employee. Daily reporting of the
employee to their higher officials . Proper guidance from them will help the staffs to
work more energetically and will result in increased productivity of the company.
8

 Skills: Training program is essential for any organisation and in Austin Frazer most
important training is how to increase communication skills.
 Style: Laissez faire style of leadership must be applied in these consulting firms.
 Staffs: total workforce of company is to taken care of by management team. There must
be less disguised employment and should not be shortage of employees at any point of
time. Staffs needs to work somewhat in a methodology practised in an organisation.
 Shared values: every company has a value and ethics employee needs to work in the
given guidelines lines only. Sometimes in very difficult of situations company needs to
ensure values stated in the company guidelines. Respecting all cultures and ascents in any
communication prohibit discrimination and will help in increasing faith of company in
customer's mind.
3.3 Action plan for implementing changes.
Making a good action plan is a tough job. After formation of the plan implementing it is
even difficult (Malhotra and Temponi, 2010). If the strategies formed require institution to
change its policies, rules and regulations then those methodologies need to be formulated into
action only after proper rectification. In real scenario implementation activities should occur in a
manner which is suitable to Austin Fraser context and people who are being targeted and are
required for the promotion of this firm. This planning an action will lay out strategies with the
federal agency to exist, sustain, and potentially succeed in the real world. It would extend its
energy to access its goals properly. The steps of plan of making an action plan for implementing
changes in Austin Fraser includes these points:
Creation of a team: To make an effective plan there is great requirement of good team.
So the first step of making an action plan is to create a team of leaders and staff members. Those
people should be chosen with great care and specification because then the line of action will
break if the human resource would not be as affective as required. By taking permission from the
authorities, expertise, creative members of crew and so many to cause credibility and motivation
which would be very necessary for driving a successful team members. Team formed should be
multi disciplinary, should include leadership qualities, at least once member should have all the
knowledge of team planning and training techniques. And lastly there should be a member in the
team who should have good experience of the market strategies. Relevant skills are required like
data collection and its analysis and presentation features.
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Defining the problem: There should be clear description of problem statement while
defining the strategy, because if it is not considered in the starting then later there would be big
issues arising in this action plan. After identifying the problem, their challenges and
opportunities for any improvements then it would make the team plan more effectively and in
enhanced manner. Their main job is to realise what is the process all about for which the
planning strategy is made and who is basically involved to execute this plan and when and where
does this strategy would execute.
There is a need to develop and create an action plan so that changes get done in an
appropriate and suitable frame. Following are the several number of changes which have to done
and modify in an appropriate and suitable frame which signifies as follow:
Objectives Actions Priority Benefits Material
Resources
Time
scale
Responsi
bility
Success
factor
Monitori
ng
strategy
Resolve
staff
problems
Need to
develop
appropr
iate
environ
ment
Employe
es are the
only one
which
support
in order
to
enhance
sales.
Thus,
staffing
is a
major
aspect
for
business
develop
ment and
Enable in
order to
gain and
deliver
quality
service to
all users
Effective
HR
practices
which
further
assist in
beneficial
operations
One
month
HR
departme
nt
Detailed
data.
By
reduction
in
employee
turnover
10

growth
Implement
the
corporate
social
responsibil
ity plan
Identify
the
major
cause of
society
Importan
t but not
as
customer
satisfacti
on
Support
in
gaining
more and
more
number
of users
Money,
fund and
banks
1 Week Manager
s
By
removing
such
consent
from
society
and
enhance
standard
as well.
Customer
feedback.
TASK 4
4.1 Influence of changes occurred in the business plan.
There are many changes applied in the business plan as discussed earlier (Rae, 2010).
After applying those changes there could be many affects caused in the business nature and its
line of action. Some of the affects are discussed below:
Updated with latest Trends: The positive effects of changes occurring to the business
plan is that it helps Austin Frazer to stay with the current trends and latest technologies of new
industrial ideas. This basically makes the company more attractive and provide a method of
maintaining customer counts. If companies competitor develops a better and successful new
product, there should be appropriate action taken by Austin Frazer to gain its position. This
competition will keep the company to stay in the current position for long.
New opportunities: After those changes implemented, all the disabilities and problems
would have been removed and their disadvantage will turn into new opportunities and it will help
in expanding of the businesses to another level. Also the workers would be more enthusiastic and
encouraged to do any task without any hesitation.
Increased efficiency: After the applied changes on the planning strategies according to
the wish and demands of the public, it would create affect by improving efficiency and bringing
more effectiveness in the company policy.
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Changes in Policies: While there would be positive effects in the planning strategy there
can also be some negative effects. As when there are changes occurred in the businesses
administration, then there can be many issues regarding the old policies. The staff member
present from very long time do not appreciate the changes so much, so in that case it would make
them less happy about the amendments being made in the company.
4.2 Management of changes in businesses.
It is essential to implement changes in the association with a specific end goal to keep up
the business condition healthy (Schaper and et.al 2014). . In this manner rule to bring a change
that ought to be including individual's acceptance and not to be forced on general population. If
in the company those changes are powerfully forced than it won't be satisfactorily accepted by all
and workers will create resistance against it. Before implementing the change in actual scenario
it ought to be discussed with the people around who all will be affected by that change or the
ones who are representatives of such type of discussion. The change ought to be consistently
checked by the bosses so as to discover that the impacts of progress are is good or not in the
association and if not than fast moves must be made with the goal to bring remedial moves at
the earliest opportunity. Representatives ought to be facilated with the advantages of progress so
they work with more commitment towards the change and don't opposes to it.
4.3 Monitoring performance of businesses for given time period.
Measurement of the performance for Austin Frazer is very important for small scale
businesses enterprise basically for taking correct actions. There can be so many methods or steps
taken for improving the performance scale which includes quality analysis (Ratten, 2014). The
results of Austin Frazer are compared with standard quality which was expected from them and
while carrying out comparison it was observed that actions taken well of good quality and it
finally maintained the performance. This is done when performance is to be calculated with
production strategies.
These policies would help in improving the performance of individual and it will improve
in efficiency that can be measured. These effects of changes should be evaluated in order to
increase the benefit of it. The development of performance is measured in terms of reduction in
total income ratio. If the income level of the employees is less than to any required level then.
12

With increased performance there is reduction in labour work which will reflect in the
improvement in their actual conditions of working and improve their employee relation.
For measuring the business working and performance, it is essential to use and adapt
relevant and suitable methods which further assist in better and appropriate working. Although,
management need to monitor out performance during every year. There is a need to determine
the employee turnover as well which facilitate to work properly as well as all targets get achive
in a define time duration.
Austin Frazer is an association which possessed by government and work effectively to
access their goals which gives administration to their clients. Some consideration of sub national
and government agencies and few administrating bodies have supported these associations to
make considerable changes. Some private decisions to be made by Austin Frazer corporation
require factors like establishments, sole leaders, associations and organisations.
CONCLUSION
From the above report, it has been analysed that there is great importance of a small
business enterprise in the country. It has its own strengths and weaknesses. Their are methods
and plans to overcome those weakness to improve the performance of the businesses. There
could be expected area of the firm which requires some amendments. So appropriate changes are
made to those sections and analysed on the effects it has over the company performance and
goals. To implement changes required in the company policies there should be certain plan of
action. This action plan is discussed in this report which suggests some suitable evaluations to be
made in the businesses policies. There is also a system developed in this small businesses
enterprise which is responsible to monitor the effects in the company due to these changes,
whether there is any improvement in the performance or not. Also if the company has been
strengthen due to these methodologies.
13

REFERENCES
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challenge (Vol. 11). Springer Science & Business Media.
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and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Bellucci, A., Borisov, A. and Zazzaro, A., 2010. Does gender matter in bank–firm relationships?
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Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
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Kitching, J. and Smallbone, D., 2012. Are freelancers a neglected form of small business?.
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Online
The Elm Tree. 2017. [Online] Available through:
<https://www.tripadvisor.in/Restaurant_Review-g186363-d732470-Reviews-
The_Elm_Tree-Reading_Berkshire_England.html>. [Accessed on 20th July 201]
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