Small Business Management and Entrepreneurship

This assignment provides a comprehensive overview of small business management and entrepreneurship, covering various aspects such as business models, innovation, enterprise education, family farming, and collective entrepreneurship. It includes references to relevant research papers, books, and articles, making it an ideal resource for students, researchers, and practitioners in the field. The assignment is structured to provide a detailed understanding of small businesses and their importance in the economy.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Producing a profile of Clearly (PR) and its strengths and weakness:...................................1
1.2 Analysis of business using various comparative measures of performance:.......................2
TASK 2............................................................................................................................................5
2.1Recommendations and appropriate actions required to overcome weakness in business......5
2.2 Ways to maintain and strengthen existing performance.......................................................6
2.3 New area's in which company can expand............................................................................7
TASK 3 ...........................................................................................................................................8
3.1 Give your assessment on existing business objectives and plans.........................................8
3.2 Review business plans and suggest areas where changes can be made................................9
3.3 Prepare an action plan to implement the changes...............................................................10
TASK 4..........................................................................................................................................12
4.1 Impact of proposed changes on business and its personnel................................................12
4.2 Management of proposed changes in business...................................................................13
4.3 Measurement of improvements in the business over past two years..................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Small business enterprise are considered to play most vital role in a country's growth.
They contribute and provide stability, and development to various factor in economy. It assists in
adding more individuals to financial system and increase liquidity in economy. The small scale
enterprises also aid in raising standard of living of society as it generates jobs and income
(Ackermann and Audretsch 2013). These are some reasons because of which United Kingdom
government is investing more in development of these organisations. At the time of recession
which struck UK in 2008, small enterprises acted as pillar and supported country economy.
Today they are fuelling growth of country and its economy while also providing stability. There
are certain laws stated in Companies act 2006, section 382 and 465. Under this legislation small
scale companies are stated as one which have turnover of less than 6.5 million pounds and have
less than 50 employees. This report covers all ways which leads to enhancement of small
business capabilities and what measures can be taken by companies and government as to ensure
survival and right level of growth. The report will also state about how change can be managed
by company without getting impacted in a negative manner.
TASK 1
1.1 Producing a profile of Clearly (PR) and its strengths and weakness:
Clearly PR and marketing communication company is a small business enterprise which
is based in Wales, United Kingdom. It is growing at a very fast speed due to its innovative and
creative approach towards business operations and functions. It is a hybrid agency as it is serving
different types of services and solutions to various sectors in market. The company was
incorporated on 4th March 2014. it is a new venture which has been established with the support
of UK government initiative to boost start-ups (Altman, E.I., Sabato and Wilson, 2010). The
company is owned by Mr Paul Alexander Mackenzie-Cummins. Its prime focus is on to provide
innovative and qualitative solutions to its clients and customers. The company has won various
awards in this short duration, such as The global recruiter awards 2015,2016, Finalist of CIPR
Best PR consultancy Awards in 2015. The company is employing various methods for boosting
its sales and customer satisfaction. The innovation and creativity used by them is what
differentiates them from others in market.
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Company has a gross turnover of 2.03 million pound and it expects to cross mark of 6.5
million soon. There are many contracts which it has received from companies that are operating
in different sectors. Such as, contract of handling all public relations and marketing task for
university of South Wales or Reed.co.uk. The company is owned by cited owner and its prime
motive remains to be same even after one of co-founder has left organisation (Bellucci, Borisov
and Zazzaro, 2010). The Tag line of business is, “To be seen, heard and read by individual who
matter most”. They have registered a spike in sales of at least 60% in last few years. The
company have a very well established and dedicated social media presence which t uses to attract
customers and solve their queries. There are certain SMART targets which are set by
organisation as to achieve goals and objectives:
 Being insightful and creative
 Maintaining innovation as a core value which will assist in achieving uniqueness and
higher level of customer satisfaction
 Growing while adding to ecology and environment around.
Strengths of business are:
 Have solutions for diversified customers
 Huge client portfolio
 It is well positioned in market
 Team building and working is good
Weakness of company are:
 Threat of competitors
 Higher staff turnover
 Limited market share
 Corporate responsibilities
1.2 Analysis of business using various comparative measures of performance:
Clearly PR and communication company is a small scale enterprise which have huge
potential and capability to achieve top position in market (Bridge and O'Neill, 2012). At present,
organisation have a staff of approx 45 people who are placed in different departments and teams
as to deal with various types of clients and customers. The managers have to keep on assessing
performance of these workers as to find out loopholes which needs to be fixed in a strategic
manner. Currently company is facing a tough competition from existing players such as hotwire
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and Stripe communications. Also there is threat of new entrants in field. That is why it is very
important for company to keep on analysing performance which can be done in following ways:
 Quality Audit: This is a assessment which will ensure that quality of products and
services offered by company is as per requirements and standards (Burns, 2010). This
will assist management in identifying gaps that exist in actual quality and standard. For
Clearly PR audit measures effectiveness of campaigns that has been developed by
company and also efficiency level of whole project. It assist in standardising all activities
and process, and sets a benchmark which has to be used as a aim.
 Customer Satisfaction: This is a method where company measures customer and client
satisfaction level with services and products offered to them. They are asked few question
on whose basis their level of happiness is analysed.
 Financial Reports: These are monetary and fiscal reports which are prepared by the
managers as to describe about gaps and achievements in a set period of time (Carraher
and Paridon, 2015). It states about organisation viability and profitability. These reports
are also used for informing stakeholders about financial condition and growth that has
been achieved in a period of time. The financial report of Clearly PR is as stated:
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As stated in financial report, Clearly PR is growing at a very fast speed. It has earned
good value and income in market (Chell, Nicolopoulou and Karataş-Özkan, 2010). There are
various factors which led company on this path of growth and development. The debt of
company is also under control and reducing which is a good sign while shareholders are
increasingly taking interest in company and its operation. Organisation have a competitor which
is another small business enterprise, Stripe communications:
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As mentioned in the image, Stripe communication is much bigger than Clearly PR but
sooner it will achieve desired level to compete with giants in market.
TASK 2
2.1Recommendations and appropriate actions required to overcome weakness in business
Every business enterprise has its own strengths and weakness which have to be identified,
assessed and addressed in a proper time period (Cowling, Liu and Ledger, 2012). This enhances
the effectiveness and efficiency of various activities which are being conducted in a business
enterprise. Clearly PR is currently serving in various fields and providing different tools to solve
their issue. There are 45 employees who are operating and assist organisation in achieving its
goals and objectives. The major issue is that workers are overloaded with work as there are two
or more projects that are being handled by them. It is causing reduction in innovation and
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creativity of people while duplication of work is on rise. This is leading to higher rate of
employee turnover that is destabilising company and hindering growth.
There is another issue that is faced by organisation and that is threat of competitors.
Currently, company is serving in the field of public relations, marketing and communication. In
this sector there is huge threat from new entrants and existing players (Di Domenico and Miller,
2012). It is very difficult to survive into the market and channelise all efforts to achieve goals
and objectives.
The third issue that exist is limited market share. It is due to restricted approach that is
used by organisation. Currently they are not serving in the field of health care and
manufacturing, which have huge scope. It limits company ability to serve more and gain more
market share. Diversification will assist organisation in exploiting new fields.
There is another weakness that exist in organisation and that is its fulfilment of corporate
responsibilities. This is an issue which has to be addressed by company top management as to
ensure that it is able to create proper image in market and get recognised by customers.
2.2 Ways to maintain and strengthen existing performance
A company has to adopt different types of methods and techniques for maintaining and
strengthening its performance. Proper strategy assist in enhancing achieving objectives and goals
in set period of time. Top management of company has to focus on overall performance while
concentrating on core values as well as competencies. The public relation and marketing industry
has huge scope of growth to earn profits while conducting an activity. Due to changes that took
place in past few years, advertising has been replaced by public relations (Fassin, Van Rossem
and Buelens, 2011). Now companies try to focus establishing relationship with the customers in
market by developing campaigns which enhance connection between company and people. Rise
of platforms such as social media, online advertisement, and development in the field of digital
economy has led these changes. There are certain way by which organisation can maintain and
strengthen the company operational and functionality. They need to focus on existing strengths
and strengthen area's where they lack. Also focusing on their core values such as innovation will
assist them in achieving required level of productivity and efficiency. The company needs to
update its system to deal with the changing environment and trends as to face off any uncertainty
that might hinder its capabilities and productivity. There are certain activities which can be used
by company:
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 Team building and working: It assist in enhancing the capability of organisation as this
unify efforts and set a direction in which they are used (Goss, 2015). It also boost
employee engagement and solves their grievances.
 Consumer preferences: Organisation needs to keep on assessing the dynamic of market
as to ensure that it knows what consumer wants and how they can fulfil those demands
with their products. Clearly PR needs to develop campaigns which suit the scenario and
product.
 Quality of product: It is a very important factor which leads to customer satisfaction and
dis-satisfaction. If the quality of campaigns developed by Clearly PR company is not at
par with the customer satisfaction and they are found to be ineffective the it will be major
issue for company.
 Addressing Social issues: Company needs to assess social issues which are affecting
people in society as to create a brand image and be an influencer.
2.3 New area's in which company can expand
There are certain new areas where company can expand. Expansion is required as to
enhance market share of company and enlarge its scope. Currently company is providing
services in few cities in country only and few sectors such as IT sector, Corporate
communication (Gronum, Verreynne and Kastelle, 2012). It has to diversify and establish itself
in more parts of country as to serve larger consumer base. Expansion will have some financial
burden on company but it will assist in increasing its market share and profits.
There are variety of fields where company can provide its services and gain better results.
Such as health care and manufacturing which have huge requirement of public relations and
marketing agencies. Clearly PR and marketing company has to follow few recommendations:
Use Ansoff matrix for expansion into new fields and market with existing products. It will assist
company in stabilising itself.
 National and internation expansion: The company is limited to few area's in a United
Kingdom. They need to expand into new regions so that it can increase the market and
consumer base. Also contracting with international companies will help it in establishing
its self in the global market.
 Diversification into new sectors: The company is limited into serving few sectors while
needs to enhance its operational and serving capabilities into new fields as to ensure that
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it gains more profit and market share (Jones and Iredale, 2010). It can venture into
hospitality and manufacturing sector and provide them assistance in growing their
influence.
Overall organisation need to venture into new fields while increasing its presence in
national and international market which will assist in fast growth and development of company.
Any small business enterprise needs to focus on the by which it can register growth that is
feasible and profit making for it. They need organic growth which will ensure constant rate of
growth for organisation.
TASK 3
3.1 Give your assessment on existing business objectives and plans
Clearly PR and communication company has well established and defined plans to
achieve objectives while reducing cost, and confusion from the mind of employees. Goals are the
end result which states about long term plans that are required to be achieved by company. On
the other hand, objectives are a sub part of goals and are used as a way to measure the level of
performance given by employees. Clearly PR and communication company states itself as a
public relation and marketing organisation where different types of brand specialist, PRS,
designers, digital experts and story tellers work.
As stated on company website, they state about their role being the one who 'help clients
to be seen, heard and read by right individual in a right way at the right time'. They have stated
how they assist business in handling competition while gaining competitive advantage (Lambert
and Davidson, 2013). There is a very clear process of completing every task with higher
efficiency and effectiveness.
 Strategic approach: The management and staff considers each and every project as a
new challenge that is why they approach it with a strategy to sort issues out in a effective
and efficient manner. Also this reduces the chances of lack in performance and customer
dis-satisfaction to a very low level.
 Concentration on digitalisation: The company is well focused on digital solution as
they are more effective and attractive to customers. Also this help clients in reducing the
cost of project and get better results.
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 Creativity and innovation: This is a core value and competency of organisation. Every
project is completed with a innovative approach (Malhotra and Temponi, 2010). The
employees aims to provide customers solution that are creative and effective. This assist
them in gaining competitive advantage.
The goals of Clearly PR and marketing company assist it in managing different types of
factors: Clients are the one who uses the products and services of company. They are main source
of income for organisation so the goal of company should remain to provide proper
quality of products and services. Shareholders are the ones who provide funds and other types of resources to company.
They assist organisation in functioning and operating. Also their advices is used in
decision making process.
 Staff has to be managed in a proper manner so that they keep on achieving all the targets
in set period of time. A supportive environment will enhance their productivity and
efficiency.
3.2 Review business plans and suggest areas where changes can be made
Business planning assist is a process that is undertaken as to set a path for employees and
organisation to achieve its goals and objectives in a set period of time (Rae, 2010). It is also
considered to be a basis that leads company to success or failure. Planning is done while keeping
all the factors in mind so that in case of uncertainty, organisational productivity and functionality
is not impacted. Management in Clearly PR company considers past performance as a basis and
then set standards for current and future performance. Also they compare and assess present
performance as to find out loopholes that exist in strategy.
For developing a effective business plan, organisation needs to identify opportunities that
exist in its environment and also threats which can impact its working. The information will be
collected regarding market trends, customer expectations, competitors, etc. then it will be
analysed as to prepare a report which is easily understandable for everyone. This information
will aid management in formulating a plan that supports expansion and diversification of
company in national as well as international market. The planning will also assist in boosting
innovation and creativity within organisation also it will provide resources for new product
development as to meet requirements of new sectors.
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Following are the steps of developing business plans:
 Setting goals and objectives: This is a first step where the basic targets are set as to why
planning is being done (Ratten, 2014). They are aligned with wider organisational
objectives and goals. Managers in Clearly PR uses SMART targets as a method to set
realistic and achievable goals.
 Developing a plan: The managers initiates developing a plan after setting all objectives
and goals. They analyse and assess different factors which can directly and indirectly
impact organisational capability and operational ability. SWOT analysis will be use to
identify various strength, weakness, opportunity and threats to company. Then plan will
be developed while considering ability to perform of each and every department of
organisation.
 Allocation of resources: Company needs to provide sufficient resources to departments
for functioning and achieving set goals. If they do not have proper amount of assets and
finance then they wont be able to achieve targets.
 Monitoring and measurements: It is very important to keep on monitoring and
measurement of all activities as to know the impact and success of strategy. If results are
not good then proper actions need to be taken by manager.
3.3 Prepare an action plan to implement the changes
The action plan is a very important method which assist organisation in averting any situation
that will lead to hampering its functionality or ability to achieve goals (Sharma, Chrisman and
Gersick, 2012). Clearly PR management understand its importance and that is why they prepare
a action plan to to overcome issues which could come up due to strategy failure, environmental
changes, etc. This plan delegates authority in between different levels and ensure that all the
changes are adapted and addressed. There are certain steps which are used to develop a action
plan for organisation:
 Identification of activities and task
 Listing various benefits of the achievement of set goals
 Starting current action
 Arranging the task as per priority
 Assign Deadlines to different task
 Review results
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This action plan will have a well defined time frame according to which management and
employees in Clearly PR will manage and complete all activities (Southern, 2011). Company has
to ensure that all task are conducted in a proper manner so that the issues are sorted out and
productivity of company do not fall.
TASK 4
4.1 Impact of proposed changes on business and its personnel
Whenever company propose changes which are required for growth and development
there is certain level of impact that is seen on its activities for a certain period of time. The
management of Clearly PR has to manage the proposed changes by formulating alternative plans
and strategies for organisations. There are two types of changes that occur in a company. First
one is controllable while second one is uncontrollable.
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Controllable changes are those which take place micro or internal environment of
company. On the other hand, uncontrollable changes are those which are macro in nature and
takes place in external environment of company (Stokes, Wilson and Wilson, 2010). The
organisation has to keep on modifying or updating its policies and procedures so that its
operational capabilities are not hindered. Clearly PR management has to ensure that they have
enough resources for making changes in organisation strategy and procedures. Also they have to
make sure that all changes are incorporated in a proper way so that desired targets can be
achieved. There are certain impacts identified which will be there due to proposed changes:
 Work Burden: The employees will be overburdened as they have to manage expansion
and diversification of product and services. They already have to engage in two or more
projects which will now increase. This will reduce their performance and productivity
while duplication of work will be on rise.
 Financial issue: Any changes that are proposed by company have some cost or
expenditure. If there is a major change that will take place then it will hurt organisation
financial state and impact its ability to function. In Clearly PR company case, proposed
changes will consume a lot of monetary resources but they wont hamper its current
capabilities.
 Organisation structure: Currently Clearly PR company have a simple flat structure
which is due to its size and requirements (Storey, 2016). But with expansion and
diversification they will have to introduce a complex structure so that all activities can be
conducted in a proper manner and time frame.
 Impact on employee morale: With increase in workload, employee motivation level
tends to go down. If workers feel that they are being used like a machine or tool then
their productivity will fall and impact organisation performance.
Clearly PR company has to ensure that these issues are addressed so that employee
perform with innovative and creativity which will boost customer satisfaction and profits for
company.
4.2 Management of proposed changes in business
Any changes taking place in small business enterprise have its own impact. Usually they
avoid any modification in their strategy and plans as they do not have sufficient resources. Also
these changes have high level of risk associated with themselves which can lead to collapse of
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company or failure in achievement of goals and objectives (Van Der Wijst, 2012). The
management has to make sure that they manage all risk factors in a proper manner so that there is
no hazardous impact on its own functionality. Clearly PR is a small business enterprise and as
usual they have limited resources which they can use for making proposed changes. That is why
it is very vital for them to ensure that plans and strategies are made to utilise resources at
optimum level and achieve targets.
Diversification and national as well as international expansion will lead to adding of new
dimension into the organisation path to success. Currently Clearly PR is serving into few parts of
country and serving into less sectors. They have to analyse the potential of market in different
sector and identify their needs and in accordance to those wants they have to make changes. This
will assist in gaining more market share and achieve desired goals. There are many methods and
techniques which can be used by management for setting a path to implement proposed changes
into organisation.
4.3 Measurement of improvements in the business over past two years
Clearly PR and marketing company has witnessed a high growth rate in past two years.
The organisation is able to garner support from business community due to its approach towards
their campaigns and innovation (Sharma, Chrisman and Gersick, 2012). Also they are adopting
different types of change management theories which assist organisation in strengthening their
modification process. It is very important for company to use these models as they provide a
basis to make swift changes within organisation. Clearly PR currently uses Lewin model for its
change management process:
 Unfreeze: This is a phase where management unfreezes process and halts the activity as
to integrate required changes.
 Transition: The desired changes are implemented in this stage as they are needed.
 Freeze: This is a stage where management freezes the process and starts activity again.
After this process is complete, managers have to monitor and measure the output of the
changes which are made in different process (Van Der Wijst, 2012). This process has allowed
organisation in boosting its own profitability which has enabled it in allocating resources in other
functions such as expansion and diversification.
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CONCLUSION
Concluding the report, it can be said that small business organisation are very important
for United Kingdom economy as it provides stability and growth to it. These enterprises also
assist in enhancing the standard of living and improving facilities in a region. There are many
challenges which are faced by these companies and due to their limited resources, they are left
vulnerable. This is the reason because of which government is providing different types of
assistance to these business so that they can grow and achieve desired level of growth rate. In
this report it is seen as how Clearly PR can make recommended changes and ensure that they do
not impact organisation in negative manner. There is requirement of proper planning as to ensure
that organisation achieve all desired goals and objectives.
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