Small Business Growth Strategies and Factors

This assignment delves into the critical factors that impact the growth of small businesses. It examines various barriers to growth, analyzes successful business models, and investigates the role of entrepreneurship education in fostering entrepreneurial ventures. Additionally, it explores strategies for improving business performance and considers the influence of personality traits and demographic factors on social entrepreneurship.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a small business enterprise to identify its strengths and weaknesses...............1
1.2 Analysis of business using comparative measures...........................................................3
TASK 2............................................................................................................................................4
2.1 Appropriate action to overcome the weaknesses..............................................................4
2.2 Various ways in which performance of business could be maintained............................5
2.3 New areas in which business could be expanded.............................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of current objectives of business and plan....................................................7
3.2 Revise plans of business to incorporate changes..............................................................8
3.3 Action plan to implement changes...................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of changes on business and personnel................................................................10
4.2 Management of changes.................................................................................................10
4.3 Improvements in performance of business over a specific time period.........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small business enterprises are controlled by private hands under which fewer employees
work and whose annual revenue is less than a medium sized corporation. Government of country
provides various types of support facilities to these in order to encourage business activities of
these firms on international level (Nga and Shamuganathan, 2010). These organisations play a
big role economic growth of a country. These enterprises provide a number of employment
opportunities to local people and contribute in increasing their standard of living. Mainly, these
businesses are in the form of sole proprietorship or in partnership. One of the main features of
these types of businesses is that it carries out research in order to identify needs of customers and
then offer innovative products to its customers for satisfying the same. The Ledbury, a restaurant
which offers British cuisine to its customers, based in London, is chosen in the present report.
Profile of The Ledbury with its strengths, weaknesses, opportunities and threats are all detailed
under this report. Further, main actions which enterprise can take to remove its weaknesses and
maintain its business performance are all mentioned here. Along with this, impact of changes on
business operations and its performance within a given time scale are included in this report as
well.
TASK 1
1.1 Profile of a small business enterprise to identify its strengths and weaknesses
The Ledbury is one of the most popular dining brands in UK which offers variety of
quality food products to its target customers to satisfy their needs and fulfil their requirements.
Actions of an enterprise and decision making process of enterprise get affected by various
internal and external factors exist in business environment. Internal elements of a restaurant
include its supply chain, quality of its food items while political, social and technological factors
come under the external environment. Main focus of The Ledbury is to satisfy needs of its target
customers by offering them variety of food products of good quality (Jasra and et. al., 2012).
This is also known as one of the biggest strengths of firm as this helps in attracting number of
customers.
Main head chef of restaurant is Brett Graham which is very attractive and influencing
personality that add value to the overall experience of customers which increases satisfaction of
clients. The Ledbury hold a position in top 10 restaurant of UK and this is another feature of
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this company. Restaurant offers quick and quality services to all its customers and this helps in
providing competitive advantage to the firm. Further, attractive interior of restaurant offers
comfort to all customers that motivate them to spend more time in it and help them to enjoy their
meal. Presentation of food plays a vital role in restaurant and The Ledbury presents it food in an
attractive manner which attracts large number of customers. With all these strengths, there are
some weaknesses of firm due to various elements that exist in the business environment. Main
weakness of The Ledbury is delay in offer food services to its customers (Al-Dajani and Marlow,
2010). This unnecessary delay affects other activities of business. Lack of financial resources is
one of another weakness of The Ledbury and due to this, top manager of firm is not able to
expand its operations in other areas. Due to this, company offers only limited food items to its
clients. Every business enterprise whether small, medium or large have some kind of strengths
and weaknesses as well as it is essential for manager to identify the same so they can formulate
better strategies for business and achieve objectives in an effective way. For identifying strengths
and weaknesses, The Ledbury can use tool called as SWOT analysis:
Strengths: Unique features of company which add effectiveness in business operations are
known as strengths of enterprise. Main strengths of The Ledbury includes following:
 Restaurant offer quality food products and services to its customers. The Ledbury hold a position in top10 restaurants of London.
Weaknesses:
 Shortage of funds. Delays in offer services to customers.
Opportunities:
 Restaurant can increase the variety of food items it offer to its customers. By increase the number of store outlets The Ledbury can achieve growth.
Threats:
 Participation of government in business activities.
 Increase competition.
1.2 Analysis of business using comparative measures
Business performance of The Ledbury can be calculate by analyse the quality of food
items it offer to its customers. The Ledbury get number of advantages due to Chef Brett Graham.
Further, sale is another concept on which performance of restaurant can be evaluated (Lambert
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and Davidson, 2013). The other bases to evaluate performance of business include satisfaction of
customers, rate of return, market share, flexibility, profits, employee motivation, satisfaction,
cost of business operations etc. All these factors can be used by The Ledbury to evaluate its
performance. In case of hospitality industry satisfaction of customers play a big role and
contribute more in success of company. Main reason behind increase profits of The Ledbury is
its location and quality of food items it offer to its customers.
Further calculation of profits is another basis on which firm can calculate the success of
its business performance. Brand image of restaurant is very positive as this offer quality food
items to its target customers. Profits of The Ledbury can be calculat on the basis of sales
generates by deduct the cost occurr during the year (Gorgievski, Ascalon and Stephan, 2011).
Managers of restaurant are thinking to explore its business activities in other areas in order to
gain some advantages of its positive brand image. Workers flexibility and motivation is a factor
which indicate towards good performance of business. If employees are motivated than they give
their best and contribute a lot to offer quality services to its customers. Skills of workers help
enterprise in get competitive advantage. The Ledbury can increase the number of profits by
apply the skills of its human resources. Further to analyse the current business situation of The
Ledbury its financial statements of profits and loss can be analysed.
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 250 300
Cost of Sales 200 200
Gross Profit 50 100
Overheads 30 50
Net. Profit 20 60
Balance Sheet
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
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Fixed assets 70 50
Stock 50 90
Debtors 50 50
Bank 0 1
Total 100 141
Current liabilities
Creditors 8 14
Bank overdraft 2 6
Total 10 20
Current ratio = current asset / current liability
2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation: From the above figures it can be seen that net profit of The Ledbury increased
from 20 to 60 in 2017.
TASK 2
2.1 Appropriate action to overcome the weaknesses
Every business enterprise whether small, medium or large have some kind of weakness
and to achieve success it is very essential for manager to first identify these and do efforts to
remove the same. Above mentioned weakness of The Ledbury is a concerned situation for
enterprise and efforts are required to overcome with these (Bellucci, Borisov and Zazzaro, 2010).
One of the main weakness is the change which take place in business environment on continuous
basis. To generate more amount of funds it is very essential for The Ledbury to keep its eye on
the changes take place in business environment so they can respond accordingly. In an
hospitality industry especially in the case of restaurant change is one of the key element and it is
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very essential that this must be apply on continuous as customers get easily bored with the same
taste of food items and same kind of behaviour. Main aim of every customer is that they want to
enjoy their time in return of the money they pay in restaurants. Every customer expect something
new and unique. Due to this factor, it is the responsibility of manager to identify the changes
required to be implement in restaurant and offer training to employees accordingly. Employees
of restaurant should always be ready to build connectivity and good relation with customers as
this help in retain them for a long period of time.
One of the main weakness of The Ledbury is delay in offer food products and services to
customers and this can be remove or handle by the managers by hire the manpower required to
offer services to customers in time (Strategies to improve strategies, 2017). Further this can be
removed by arrange the inventor required to offer specific food items to customers. For this
restaurant need to build and use a inventory management system as this will reduce the time of
restaurant to offer beverages and food items to its customers. In this way restaurant can serve
both time and cost of its business operations. Lack of financial resources is one of these
weakness of The Ledbury and in this case it can take loan from banks to achieve consistency in
its business operations and to expand its business activities in other areas. With all these
activities The Ledbury can better satisfy the needs of its customers and at the same time can
retain them for long period of time.
2.2 Various ways in which performance of business could be maintained
Formulation of effective startles application of those strategies on business activities is
one of the main way through which The Ledbury can maintain its current business performance.
In case of hospitality industry innovation and creativity in services are the best two strategy
which can be implemented by restaurant order to offer something new to its customers and to
strengthen the business performance of company. The Ledbury need to focus to bring some
innovative ideas in case of interior of restaurant. As this is the main element which help in
attracts large number of customers (Carraher and Paridon, 2015). There is a requirement to apply
some modification in ambience and interior of restaurant in order to bring more number of
customers there. It is very essential for The Ledbury to introduce something new on continuous
basis to as individual like innovative products and features. Customer satisfaction is one of the
main element which directly indicates towards success of restaurant and this can be achieve by
The Ledbury by improve its services on continuous basis. Manager can give training to
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employees in order to increase their understanding how to behave with customers as this help in
built and maintain a god relationship with them (Blenker and et. al., 2012). Further, to improve
relationship with customers, restaurant can offer them discount and complimentary food items.
Concept of segmentation can be adopt by the managers in order to segment customers in groups.
This help enterprise in better satisfy the needs of its customers and increase profits of company.
Further, The Ledbury can organise some events focused on needs of customers.
Further to improve the business performance various aspects related with management
such as inventory management, human resource management can be taken under consideration
by manager to delay the service time (Jones and Iredale, 2010). Further, research can be conduct
by The Ledbury in order to find out the features which customers want during the time they stay
in restaurant. By offer these services to customer The Ledbury can achieve various advantages.
All these are the main ways through which restaurant can strengthen and maintain its business
performance.
2.3 New areas in which business could be expanded
The Ledbury can innovate new ideas for its business to find the new dishes for its menu
to attract its customers. The menu list can can be increased. The firm in order to expand its
business can do continue efforts to open its branches in other cities. The enterprises as is already
dealing with food and is having full knowledge of it, it has the best option to enter the food
process industry. Entering in food process industry will be directly beneficial for the enterprises
because it will have direct impact on the dishes made in the restaurant. This will create for
satisfaction in the customers mind (Tips for improving business, 2017). New ideas can be
brought to make the dishes with the help of food processing industry, and it will also cost less in
compared to bringing food from others and making dishes at restaurant. Opening of the food
processing industry will generate more profits and next the restaurant can reach large customers.
It can even buy an existing franchising enterprise. It can even leverage partnership with
existing strong forces in restaurant enterprises. Going global can be the best way to expand the
business. Going international can be decided in many ways. Growing markets, improved
business climate, etc. growing global need to do more legal work which will have to be done
first. It can experiment with other concept completely (Chittithaworn and et. al., 2011). Different
restaurant in different places offering fully different dishes. In order to expand its business it can
even merge with other enterprise or fully acquire the other enterprise. It can start posting
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seasonal menu for its customers. Online selling of dishes can be done by the enterprise. The next
idea to expand the enterprise is to segment the market and then set different restaurant at
different places.
TASK 3
3.1 Assessment of current objectives of business and plan
Business plan is a written document which consists future action of an enterprise. It is
very essential for every enterprise to formulate an effective business plan and should have clear
objectives like what firm really want to achieve (Forsman and Temel, 2011). Main reason behind
effective implementation of various business activities of The Ledbury is because engagement of
restaurant has drawn business objectives and plan and all these are effectively implemented by
internal management of company. Restaurant focus more on food habits of customers and this
help or guide manager in expand business activities. The Ledbury is continuously trying to
improve its standards of services in order to better satisfy the needs of its customers. Manager of
The Ledbury is focus towards improve the objectives of business both short term and long term.
To attract more number of customers advertising is one of the effective and popular method
which can be used by mangers of The Ledbury. Further, restaurant offers discount and additional
features to its customers in order to achieve their satisfaction and to attract more number of
potential clients.
For formulates a effective business plan, it is essential for manager of The Ledbury to
first collect information about trends present in market and about the food habits of customers.
With all this number of customers can be increased (Rae, 2010). One of the main feature of well
develop business plan is that it help in build a strong communication network in enterprise and
increase effectiveness of business activities. Development of business plan in initial stages of
business help in save cost and time of managers and ensure optimum utilisation of all resources.
There is no doubt that effective business plan and clear objectives provide various advantages to
company but apart from this, there are many demerits of business planning. One is this limit the
scope of thinking of business owner and it require huge amount of time and cost. All this
increases the complexity of business operations.
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3.2 Revise plans of business to incorporate changes
Various strategies are there which can be used by the managers of The Ledbury to
overcome with identified weakness. For this continuous monitor on business actions, plans and
objectives is very essential. Due to changes take place in a fast speed so it is very essential for
The Ledbury to formulate a flexible business plan so manager can do necessary modification to
achieve end results of business.
 Substantial growth theory: This is one of the most popular and effective theory which
can be used by managers of The Ledbury to overcome with the weakness identified. One
of the main advantage to this theory is that it guide manager in expansion of business
activities (Harris and Patten, 2014). This provide an opportunity to managers get control
over various operations. All this minimise the chances of risk and loss to company. With
use of this strategy managers of The Ledbury can achieve expertise in its operations and
at the same time can capture a larger market share. With effective use of this strategy
The Ledbury can kick out its competitors (Burns, 2010). In this strategy firm focus
towards horizontal and vertical integration which help in expansion of business activities
and at the same time increase profits of firm. With the help of vertical integration
manager can achieve control over its production process.
Further various business models are there which can be used by managers of The
Ledbury to achieve consistency in business activities. For The Ledbury restaurant which offers
variety of food products to its customers it is very essential to apply SWOT in order to well
inform about main strengths and weakness of firm (Battisti and Perry, 2011). In today, business
where changes take place at a fast speed it is essential for business to give direction to its
activities accordingly. Application of SWOT helps manager in well inform about main
drawbacks of company and then managers do efforts to remove the same. Further, managers of
The Ledbury can introduce change by collecting information various sources.
3.3 Action plan to implement changes
Communication is one of the element which play a big role during implementation of
changes in enterprise. So to implement changes in an effective way it is very essential that there
must be proper communication among various elements of enterprise (Gill and Biger, 2012). In
case of The Ledbury the main steps which can be follow by managers to implement changes can
be better understood by following points:
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 Readiness assessment: This is the first step include in the process of implement changes.
In this manager carry out research and collect views of employees in order to analyse the
readiness stage of enterprise. If managers introduce the changes at right time than this
provide more benefits to company. Planning of communication: Managers use various communication tools or mix of
communication tools to communicate workers about the proposed changes. Training to employees: In case of big change managers and leaders conduct training
programs to enhance the skills of employees. Management of resistance: Whenever management of enterprise decide to introduce
changes at workplace than large number of employees do not accept the same due to lot
of changes. In this managers use various strategies to decrease the resistance of workers. Collection of feedback: After implement the proposed changes management collect
feedback from all workers in identify the main issues and problems. Identify the improvements to be done: In this step manager identify the changes need to
be introduce to achieve better outcomes.
 Final review: This is the last step under this, manager calculate all costs and benefits
proposed changes in order to calculate the effectiveness of change process.
TASK 4
4.1 Impact of changes on business and personnel
Any kind of change whether big or small largely affect the activities of business and its
personnel. Impact of changes on business activities can be positive or can be negative. This
basically affect the planning and execution of business activities (Fassin, Van Rossem and
Buelens, 2011). Effective implementation of changes provide number of advantages to company
for example this help company in utilise all its resources to an optimum level. Further this
increase profits and productivity of company. In this way, The Ledbury can increase the positive
image of company. With the help of this, The Ledbury can expand its activities to an
international level. All these are the positive impact of changes on business activities. All this
can be achieved with formulation and implementation of effective business strategy (Storey,
2016). All positive outcomes of change increase morale and motivation of workers and bring
cooperation among various department of company.
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Negative impact of change could be the waste of time, cost, money and resources of
company. All this affect the final price of product. Waste of time and cost invested in training
programs of individuals is another negative impact change (Altman, Sabato and Wilson, 2010). It
is very essential that effective strategies must be used by the managers of The Ledbury to
maximise the positive impact of change and to reduce the negative impact of proposed changes
on business activities.
4.2 Management of changes
Introduction of change in enterprise is not enough but effective implementation of those
changes is also necessary to achieve maximum benefits. This can be achieved by The Ledbury
with help of effective communication channels. It is very important there must be effective
communication among various department of enterprise as this help mangers in identify the main
issues and problems faced by employees at workplace (Schaper and et.al., 2014). Main focus of
managers of The Ledbury should be to manage adequate amount of communication to control
the activities of various employees. If manager want to increase the benefits of proposed changes
than training programs must be conduct by manager so employees can learn new methods of
doing work. All this improvements increase satisfaction of employees an provides various
benefits to company. Training program consists information related with international dishes. By
offer taste of international dishes to its customers The Ledbury can capture a larger market share.
Another theory of management which can be used by the managers of The Ledbury is
Kotter's change management, Lewin's model of change and many more. With use of these
methods managers of The Ledbury achieve effective execution of change activities. Simple and
effective steps include under the model of Lewin's change model can be used by The Ledbury
(Gronum, Verreynne and Kastelle, 2012). For example as restaurant is thinking to increase the
variety of its food items and this can be effective done with the help of various models of
change.
4.3 Improvements in performance of business over a specific time period
Improvements in performance of business enterprise in particular period of time can be
measured with the help of various monitor techniques. In The Ledbury, for the purpose of
monitor improvements various tools are there which can be use by manager. The first technique
is benchmarking, under this, manager compare the actual results of results with standards
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objectives and goals (Olson and Staley, 2012). Manager compare the actual results with standard
results and in case of identification of any variation manager do the efforts to remove the same.
Evaluation of performance of workers is also done with the help of benchmarking to increase
their efficiency and maximise their performance.
Further, calculation of return on investment can be done by managers. Success of
business activities can be measure by The Ledbury by calculate the increase ration of foreign
customers.
CONCLUSION
From the above report, it can be summarised that small business enterprises carry out
research to make unique products for its customers to better satisfy their needs. In case of
hospitality industry in a food restaurant, change is one of the main key element which must be
apply by managers on continuous basis. As needs and wants of customers are changing at a fast
speed so, it is essential for the enterprise to introduce some new food items and services to its
customers to retain them for long period of time. Manager of The Ledbury can formulate better
business plans and objectives after getting detailed information about the main strengths,
weaknesses, opportunities and threats of company. Employees of enterprise play a big role
during implementation of any kind of change and so, it is important for managers of The
Ledbury to develop and use an effective communication channel at the time implementing any
kind of change.
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