Entrepreneurship and Small Business Success

This assignment examines the multifaceted world of entrepreneurship and small business success. It explores crucial factors influencing small business performance, including strategic planning, owner-manager characteristics, network effects, ethical considerations, financing strategies, and socio-cultural influences. The provided sources offer insights into these areas, enabling a comprehensive understanding of the challenges and opportunities facing small businesses today.

SMALL BUSINESS
ENTERPRISE
1

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ..........................................................................................................................................3
1.1 Strength and weakness of business and identify business profile .........................................3
1.2 Analysis of business by using comparative measures..........................................................4
TASK 2 ...........................................................................................................................................5
2.1 Give recommendation with justification, appropriate actions so that company can
overcome weakness. ...................................................................................................................5
2.2 Analyze the ways by which existing performance can be maintained .................................6
2.3. Prescribe with explanation, new region in which firm can expand their business................6
TASK 3 ...........................................................................................................................................6
3.1 Make an assessment of old business goals and plans ............................................................6
3.2 Revised business plan to incorporate appropriate changes ...................................................7
3.3 Prepare action plan to utilize the changes .............................................................................7
TASK 4............................................................................................................................................8
4.1 Report on impact of proposed changes on business and its personnel...................................8
4.2 Arrangement how the changes can be succeed in business .................................................8
4.3 Control the performance of organization ..............................................................................9
CONCLUSION................................................................................................................................9
REFERENCE ..................................................................................................................................9
2

INTRODUCTION
Small business enterprises are very important for country. This enterprises are having
large contribution in an economy. In the crises time to UK. These enterprises took place and they
help country to larger extend. They give employment to many people living in UK. They support
to large enterprises to get raw material and produce small parts for these large enterprises.
The company which is taken into consideration for this report is caffee finix coffee shop.
It is local shop which is providing coffee to people in UK. The firm small enterprise. But give
large contribution to society (Bridge and O'Neill, 2012). This a place where friends meet each
other. People can read books. The size of business is small. They provide variety of products
such as coffee, tea and other beverages.
The strength and weakness of small business enterprises has been given in this report.
The analysis of business has been given in this assignment. According to that recommendation is
provided so that improvement can be done. Business plan has been made and the action plan is
created so that policies can be implemented in proper manner. Impact of changes on business has
been discussed in this report. Proper evaluation of business is done in given assignment.
TASK 1
1.1 Strength and weakness of business and identify business profile
SWOT Analysis is primary function which is conducted by firm and by this leader solve
and find out certain issues. SWOT is important method for an organization by which they can
know about their strength, weakness, opportunities and threats. SWOT model is used to do
internal evaluation. This internal factors can influence outside factors of business. Strength and
weakness represent the inside variables. Opportunities and threats represent the outside variables.
SWOT data help company to coordinate in effective manner and all resources should be used in
proper way(Schaper and et. Al, 2014).
Strengths: Strengths refers to capacity which company is having so that they are using
their resources in proper manner and they are properly understanding the needs of customers. It
give competitive advantage to firm from its competitors. Following are the strengths of caffee
finix.
 They provide excellent, fresh quality of foods, beverages.
 Having a good brand name.
 Company is operating business in good location where they meet lot of customers
 Firm is having good reputation in market
 Turnover of firm is increasing day by day.
Weaknesses: Weaknesses is refers to lack in possession or capabilities of company in order
to handle different inside and outside variables. Weakness is part which company need to
identify and make improvement so that it doesn't happen again. As a Business Executive I find
out some of the weakness in caffee finix
 They are having weak segment in compare to their competitors.
 There are name other well known brands also
 Costs rents which firm need to pay
Opportunities: Opportunities refers future conditions by which firm can take advantage and
gain profits by that and expand their business. According to future aspects the firm can take
actions so that they get benefits. This can give competitive advantage and objectives can be
prepared accordingly. The opportunities of firm are as follow.
 Offering the brand name can gain more benefits.
3

 They have scope to put resources in in those area where they can get success. The fir
should straight focus on their cost.
 They can expand their product range by inventing new products.
 Invest capital by allocating resources into UK since espresso and breads shop advertise is
developing in shorter time. (Storey, 2016).
Threats: Threats are the challenges which is faced by firm. By this firm face difficulties to
achieve their targets and objectives. The threats of firm are as follow.
 Other Competitors in market
 New strategies by government like taxation and fiscal policies
 Political instability, wars and many other.
1.2 Analysis of business by using comparative measures
Profit and loss account from year 30 April 2016 and 30 April 2017.
2016 2017
£ £
Gross sales 1,20,000 200,000
Cost of goods 80,000 150,000
Gross profits 40,000 50,000
Expense 10,000 15,000
Net profits 30,000 35000
Caffee finix
Balance sheet as at 30th April 2016 and 30th April 2017
2016 2017
Fixed possession 15,000 12,000
Current possession
Inventory 7000 18000
Debtors 12000 36000
Bank 1000 0
20,000 54,000
(-) current liabilities
Creditors 6000 15,000
Bank overdraft 0 10,000
6000 25000
Working capital 14000 29000
Final assets 29000 41000
Financed by capital
Opening capital 22,000 29000
Add net profits 30000 35000
52000 64000
Less drawing 23000 23000
Closing balance 29000 41000
A). Current ratio: current assets/ current ratio liabilities
2016 2017
CA/CL 20000/6000 54000/25000
3.33 TIMES 2.16 TIMES
Enterprise is effectively paying their liabilities from their assets. The ideal ratio is 2. So by this
firm position is effective.
4

b). Quick ratio: current assets – inventory/ current liabilities
2016 2017
Liquid ratio 20000-7000/6000 54000-18000/25000
2.17 1.44
Firm can pay their liability twice by using their current assets. But according to next year it is
indicate that firm is not paying in effective manner. So they need to use their working capital
properly. Ideal ratio is 1.
Gross profits margin: Gross profits/ Sales revenues*100
2016 2017
40000/120000*100
50000/200000*100
33.33% 25%
Operating profits margin: Operational profits/ sales*100
30000/120000*100
35000/200000*100
25% 17.5%
The profits margins are decreasing which is not good for firm. By this selling cost also can
arises. The profits of firm can be decline by this. The cost of enterprise is increasing in 2017
compare to 2016.
TASK 2
2.1 Give recommendation with justification, appropriate actions so that company can overcome
weakness.
The company is creating high client base. The lease of business is moderately very
expensive. If the firm is having lease cost they income can increases. There are many areas
where there is less business. So firm can establish their business so that more customers can visit
to their places. By this customers can shop in easy manner and firm can get more revenues. The
firm is facing problem due to their in flexibility of time so they should bring some changes into
it. The employees of firm is engaged in many projects for which arises the conflicts. This also
any issue for firm because employees are not able to concentrate on one project. Enterprise wants
to hire creative people for that they need to hire people accordingly.
The business expecting a high stock turnover rate because of raw materials are expiring
in shorter time period. For this business can use First In First Out (FIFO) strategy so that they
buy stock and renew according. With this effective restocking and reordering method so that
they and meet demand and supply of goods. Quality is major aspect to maintain because there
are cupcakes and coffee which are perishable in nature. For this quality control strategies can be
used so that firm can give guarantee to customers about their products and services. (Gronum,
Verreynne and Kastelle, 2012).
The business need to attract more and more customer so that they can gain competitive
advantage. many firms are entering in new market so fir need to retain its customers. The firm
cannot afford to loose a single customers. The firm should go for promotional activities so that
public can know about their products and visit their stores. These activities also generate lots of
profits to firm.
2.2 Analyze the ways by which existing performance can be maintained
The Caffè Finix café can use a methods by which the can manage the quality of products.
The location of enterprise is chosen so that more customers can be attracted.
5

Person want a superior taste in espresso coffee drink
 Consumers need to welcome customers in proper way
 Espresso drinks should be offer in reasonable prices.
 The café business is not affected by economy and world occasions.
 The star café offers can offer new range of drink in their all shops to attract more and
more customers.
The Caffè Finix bistro can compare their products and find out alternatives offered by their
competitors in the following ways:
 A fundamentally better quality, good tasting espresso goods.
 There store area can apparently be position in the best in whole market place in the core
of down town buying, feasting, input.
 It have better feeling from all the other cafes. There is beautiful view which customer can
see from cafe. The craft, glass work, style, furniture of store is much better than other
coffee shops.
 The primary café business district to give general end of the week evening stimulation.
 A more big variety of mainstream drinks than company competitors, including seasoned
espresso portion, tea, and other drinks.
2.3. Prescribe with explanation, new region in which firm can expand their business
Coffee house is situated in Stratford. Presently I recommend to open another store in London
airport situated in city. Since it is an exceptionally swarmed area by explorers and laborers .so
business can be success. Following are some of recommendation to company so that they can
expand their business (Ackermann and Audretsch, 2013).
 The suitable region – easily visible, high attractive design, helpful get to.
 The best tasty range of products - fresh coffee beans, superior serving holders, certain
flavor.
 The good friendly staff to serve - sprightly, talented, good, verbalize.
 The good reputation in market – good advertisements, the groups which are included ion
business should gets benefits.
As these are changes which firm need to make so that they attract more and more customers.
By this sales of enterprises also increases. By this fir can also improve their goodwill in
market so that more investers can be attracted to grow and expand business.
TASK 3
3.1 Make an assessment of old business goals and plans
Objectives:
 Wind up noticeably chose as the "first Coffee shop in the range" by the neighborhood
eatery control.
 Support up a 65% overall edge.
 Providing the best coffee things by cafe.
Caffè Finix bistro is accomplished primary destinations now a days. Since everyday 500
clients are visiting the store. So the star coffeehouse best coffee shop in Stratford area.
Provide best java things: CaffèFinix coffee shop utilized famous beans to make espresso and
speed direction to the customer. Caffè Finix café has:
 Given a client quality of products and services to their customers.
 Given the client more innovative strategies to cover their different items.
6

 Demonstrated how star café values their faithfulness and support by providing balance to
their individual reason
3.2 Revised business plan to incorporate appropriate changes
The star cafe is advertising their products by which they attract old and new customers.
By this they get revenues in regular manner. The can inspire clients so that firm can get more
deals for their business.
The star cafe position their brand as they are providing special bistro. The ambiance of
store is very good so many people come and enjoy the atmosphere of cafe. This many cafe
different from other stores. The firm is investing additional energy so that they can serve
customers in proper manner. It make the place best in market place.
There should two representatives are always there those who control activities. One
representative setting the clients request and another one deal with exchanges which are occuring
in business. The sales team needs to mange properly so that demand can be meet in effective
manner. The cafe can deal with business exchanges so that they gives benefits to clients(Jones
and Rowley, 2011).
the firm should keep in mind they need to develop the customers base so that they can
achieve their objectives in effective manner. The company can use flags and fliers, use customers
referrals and cross promotion with different organization in particular industry. The investment
should be done in a manner so that more customers should visit and spend more at bistro.
3.3 Prepare action plan to utilize the changes
Market analysis
The Caffè Finix café centered the two markets
 Persons living in the neighborhood
 Individual venturing out to or from work, out shopping .
Activity division
The Caffè Finix is more concentrating on their promotional activities. So that more
people can like to work in that organization. There are particular people those who purchase the
products of firm. These are potential customer on which enterprise need to focus. Since gourmet
coffee it mostly utilize coffee range. So firm should focus on that particular group. They need to
update them about new products and offers to their customers.
Target market strategies
The company need to select the particular group from whole population to which they
wants to offer their products. The target can be of particular age the areas near by the stratford
school. According to study it is identify that these customer are most loyal and they visit more
frequently. This is place where people are meeting their peers and they do not need to pay any
entrance fees for that. By this firm can establish the faithful customer base.(Thornton, Ribeiro-
Soriano and Urbano, 2011). the quality is another factor which is very much important for UK
people. This may bring growth in gourmet coffee. This are some of the factors which influence
the customers to visit the store and give interest to buy products and services.
TASK 4
4.1 Report on impact of proposed changes on business and its personnel
Organizations are affected by an outer domain as much as they are influenced by the
rival. Global factors influencing business are legitimate, political, social, innovative and
financial.
Social factors
7

This factor comes into picture where there is change in social factors like customer taste,
preferences, values, norms ,belief and others. Purchasing decisions are affected by this factors. In
this firm need to understand that all needs and wants of customers are differ from country to
country and according to that only they need to design their products. It has great influence on
business. The coffee which is produce by firm should be according to customers requirements.
Firm need make strategies according to market structure.
Legal factor
These elements have impact business operations. This factors refers to changes in
government laws and regulations. For a successful business operation it is important that
organizations should follow all these legitimate. So that future issues can be minimized. There
are certain changes can take place in laws which can influence the way of business should carry
on. Laws are changing according to certain time frame time frame.
Economic factors:
These are factors which brings changes in the worldwide economy. This factors includes
exchange rates, inflation, GDP and other factors. This influence the power customer to buy the
products. If there is an inflation the buying power of customers are reducing because the prices
of products are arising. This can decrease the demand of products and cost of firm can be arises.
Business systems of customers can be fluctuations because of these changes. Other financial
changes that can take place in business business incorporate are the loan cost, wage rates, and
the rate of expansion. This also influence business operations at greater extend.
Political factors:
These are factors which are implemented by government like taxation policies, fiscal
policies and others. As these factors are changing the business structure also changes. This also
influence the customer. The country so have political stability so that products can be sold in
market in proper manner. The organization those who are working under EU. They need to
control by EU communities. The firm need to make strategies so that they can face these
challenges in proper manner and get business success.
Technological factors:
This is another factor which influence the business the technologies are changing in
market according to time. To reduce cost firm need to adopt the new technologies so that they
can serve their customer in less time. By technology the database can be created by which firm
can easily reach to their customers. This give success to business.
4.2 Arrangement how the changes can be succeed in business
Employees:
individual do not mind for the little changes that are taking place. These changes can be
in positive and negative manner. These are many situation can take place when changes are
occurring. There can be fear, ambiguity, loss of control. Sometime people are not felling
comfortable with the changes. By this there is loss of motions. This doesn't give advantage to
company. The firm need to take into consideration and guide their employees so that they can
adopt changes which is required to achieve certain goals and objectives. There are various
techniques by which employees can easily adopt the changes. If these changes can be adopted
the business operations can run in smoother manner. The need changes should be implement
according to the objectives of firm.
Business:
 Rivalry (what is their next strategy?)
 conduct of customers (needs,wants, and cravings)
8

 View point of industry (local, national, worldwide)
 Demographics (the change ages, people income, there dimension, and so on.)
 Economy system (exchange rates, inflation, perversely)
 Political process as well as impedance
 Social condition
 Changes in technology
 General changes in nature
4.3 Control the performance of organization
Objectives Time period Comments
One- stop content End of 20116 Coffee material , coffee
equipment and machines
and , water and perfect
infrastructure is made from
one sources
To get best position in
market
End 2017 Enterprise wants to become
best in market place.
Work By the end of 2017 Company try to treat their
customer in respectful
manner. They give additional
services to their customers
Creating model which is
franchise ready
By the end of 2018 Firm try to expand their
business by providing chains
of business.
CONCLUSION
Small business enterprises are very important. Every company need to do their
performance analysis so that they can know about their weakness and strengths. There are
different kind of ratios which need to be calculated so that financial position can be determined.
There are different factors which affect business. Firm need to overlook these factors so that
changes can be made accordingly. If firm wants to expand their business. They need to prepare
business plan. In which all activities are described. It gives proper directions to firm so that they
can achieve their objectives effectively.
9

REFERENCE
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Schaper, M.T and et. al., 2014. Entrepreneurship and small business.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Olson, D.L. and Staley, J., 2012. Case study of open-source enterprise resource planning
implementation in a small business. Enterprise Information Systems. 6(1). pp.79-94.
Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Ackermann, S.J. and Audretsch, D.B. eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1). pp.25-36.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-
453.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Thornton, P.H., Ribeiro-Soriano, D. and Urbano, D., 2011. Socio-cultural factors and
entrepreneurial activity: An overview. International small business journal. 29(2).
pp.105-118.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2). pp.207-232.
Draycott, M. and Rae, D., 2011. Enterprise education in schools and the role of competency
frameworks. International Journal of Entrepreneurial Behavior & Research. 17(2).
pp.127-145.
10