SWOT Analysis Entrepreneurship

Travel and Tourism Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Entrepreneurial traits and skills of successful travel and tourism entrepreneur .........................1
SWOT Analysis of an Entrepreneur............................................................................................3
TASK 2............................................................................................................................................5
Successful travel and tourism entrepreneur.................................................................................5
TASK 3............................................................................................................................................6
Source of finance and support available......................................................................................7
Business plan with a marketing assessment.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneur is a person who started its own business and taking risks for the purpose of
earning profit. It is the most important part for economic growth and development of the country.
Present study will be based on the travel and tourism entrepreneur that is the service
sector industry. It provides services to the people related to the traveling, providing them
accommodation and other facilities to them.
Report will include the entrepreneurial traits and skills that are required to be a successful
travel and tourism entrepreneur. It also includes the swot analysis of travel and tourism industry.
Further more it will include the business plan that consist of target market, financial projection
and a cash-flow analysis.
TASK 1
Entrepreneurial traits and skills of successful travel and tourism entrepreneur
Entrepreneurial traits are the characteristics that an entrepreneur possess to run the
business. It includes risk taking, creative, problem solving all these traits are possessed by an
entrepreneur for becoming successful.(Ateljevic and Page, 2017).Entrepreneurial skills is an
ability to perform a certain task by an entrepreneur.
Entrepreneurial traits
There are several entrepreneurial traits of becoming a successful entrepreneur
Passion:-This is the most important trait that an entrepreneur should possess for becoming
successful. Travel and tourism entrepreneur should have passion to provide best service to its
customers that can satisfy their needs and wants.
Strong work ethic:- Entrepreneur must have strong work ethic that can help in meet out the
expectations. Successful entrepreneur is the one who has work in the mind every time even when
they are not at the workplace.
Communication skills:- A successful entrepreneur is the person who has a good communication
skill and motivate the customers to take their services. Those who have this trait can achieve the
growth in the business otherwise it remains the constant( Bredvold and Skålén, 2016).As travel
and tourism is the sector for providing services to the customers and without good
communication skills it is not be achieved .
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Creativity:- One of the most important trait of an entrepreneur is to be creative. Always generate
the new ideas and innovation in the business leads to growth in the business. If an entrepreneur is
creative then the people are attracted towards it.
Competitiveness:- There are-many competitors available in the market so the entrepreneur must
have an ability to compete with them. They have to run the business with the aim to achieve
success in the future. Competition is everywhere in the market but an entrepreneur never fail to
perform its best to get succeed.
Self Starter:-Every entrepreneur is the one who knows that all the thing has to be done by
themselves. From setting the policies to the decision making process all task is done by itself.
They don't to ask anyone for doing anything and they are proactive in taking decisions on their
own.
Planning:- Before starting any business any entrepreneur has to plan its business activities that is
being done by it during its business operations. It is most important practice that every
entrepreneur have to do before setting up a business(Power, Di Domenico and Miller, 2017).
Leadership:- It is also the important quality of an entrepreneur to be the good leader. As leaders
have the ability to inspire people, have knowledge to tackle the difficult situation in the business
that is necessary for every successful entrepreneur.
Entrepreneurial skills
Willingness to learn:- An entrepreneur has a willingness of learning new things every time.
Learning is the path that never ends increasing the knowledge helps in achieving the goal of the
business. Entrepreneur must have to updated with the latest technology, marketing strategies to
attract the customers etc. that can help in becoming a successful entrepreneur.
Risk taking:- An entrepreneur must have the ability to take risk before starting the business.
Risk is the common factor that every entrepreneur have to take without risk business cannot run
properly.
Empathy:- Empathy helps an entrepreneur to grab the customer's attention in the beginning of
the business. In research also it is found that empathy is the factor that causes loss in the business
at the time of starting(7 Essential Skills Required to Succeed as An Entrepreneur, 2019)
Financial Management:-Managing the finance in the company is the most important part as
finance plays a vital role in the business. Without proper financing the business operations
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cannot be run properly. Lack of cash flow leads to the risk in the business and become
unsustainable after some time(Zhou, Chan and Song, 2017).
Relationship building:- It is the key to success for the entrepreneur to build a relationship in the
market that helps in bringing the customers. Good relationship with the customers will lead to
the growth in the business as more customers are attracted and the sales are increasing.
Logical thinking:- Entrepreneur have to think logical in the business as observe all the things in
the market and then react to a particular situation and draw conclusion of every decision after
taking the feedback from others.
Positive attitude:- An entrepreneur have the positive attitude towards its work. Always take the
positive side of the decision that helps business growing in the future. Positive attitude helps in
attracting the customers interest in the business that helps in generating sales for the business.
Team building:- It is also an important skill that en entrepreneur must have to get success in the
business. Making teams helps in achieving the target and providing best services to its
customers.
Ability to be productive:- Entrepreneur must have the ability to be productive work in the
business(Hallak, Assaker and Lee, 2015).Productive work leads to the greater success in the
business as the quality of work provides satisfaction among the customers
SWOT Analysis of an Entrepreneur
Swot analysis is used to identify the strength, weakness, opportunity and threats to
evaluate the competitive position of the enterprise.
Strength
An entrepreneur is the person with bold thoughts in the mind. It always thinks of doing
something new and innovative in the business that lead to success in the business. They are
knowledgeable enough to tackle any difficult situation at any time. They think in rational manner
that very people can think and can implement in the business. Always have original ideas to
execute with practical thinking that can help in succeeding. It has an ability to notice the change
and adapting the changes in the business. They think practically and logically in the business that
lead to help in the success of the business. They observe the things and then implement in the
business that will helps in creating less errors in the business activities. They are the leaders with
an ability to inspire people and attract them through their thoughts and words. It has positive
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attitude towards its work that lead to succeed in the market. They are highly self-confidence
having high standards (Traits of a Successful Entrepreneur, 2018)
Weakness
Entrepreneur is insensitive as they are in trouble in expressing their own feelings. This situation
is awkward and uncomfortable for the entrepreneur. They are impatient get irritated with
situation very fast and can't focus on the single task for long time. Sometimes they are fail to
solve the bigger problems(Kerr, Kerr and Xu, 2018). Multitasking sometimes may lead to the
distraction from the particular work that an entrepreneur is doing. Entrepreneur may not be able
to do perfect work sometimes because of frustration or due to some any other reason. Over
confidence sometimes leads to ego in the mind of an entrepreneur. They lack in working in the
team sometimes that lead to the bad thing for the entrepreneur.
Threats
An entrepreneur want to achieve a large amount of success in the short time that leads to threats
for the business. In short period of time it can't achieved more success it takes time to settle in
the business. Sometimes entrepreneur lose the focus from the work that leads to damage to the
business. Losing the focus from the work will give an entrepreneur a big loss for the business. As
in business obstacles are coming regularly but if an entrepreneur may quit the work then it will
not be the benefit for the business for the future course of business. Cash flow management is
essential in the business so that a proper flow of fund is maintained and if it cannot maintained in
the business this will lead to the greater loss. For an entrepreneur it is the biggest challenge to
hire the people in the business as selecting the best candidate is the threat for business. As
entrepreneur run the business alone so its biggest task to manage the time accordingly as if it will
not be able to manage then there will be loss of work and the clients are also not satisfied.
Sometimes the marketing strategy that is followed by an entrepreneur is not successful in
attracting the customers that will lead to the threat for the business( Boudreaux and Nikolaev ,
2017).New entrant in the market also lead to the threat for the entrepreneur as many competitors
are present in the market. Substitute products are also lead to the threat for the business as many
other products are available in the market so customer may get attracted towards it.
Opportunity
Doing business in the foreign market helps in expanding the business for an entrepreneur as it is
the biggest opportunity. Investing money in more than one business helps to get a new idea from
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the different fields and implement into the business that create the growth in the business.
Encourage investors to invest in the business that can help in achieving the goal for an
entrepreneur. Providing quality services to the customers enhance the customer attraction
towards business that will lead to earn the profit. By collaborating the business with the other
firm can also lead to the opportunity to grow in the future. Opening a franchisee in the other
countries also helps in expanding the business as compared to other business(Mauer, Neergaard
and Linstad, 2017).
The strength helps in achieving the goal of the business as if the entrepreneur is bold
enough to tackle the problems occurring in the business. Entrepreneur must be innovative and
think creative to run its business operations. As leadership helps in achieving the success for the
business as it has power to inspire the people to do the work. All these strengths helps in the
development of an entrepreneur. The weakness can be overcome by applying proper solution to
the problem that helps in achieving the development of an entrepreneur(Olivari, 2016).
TASK 2
Successful travel and tourism entrepreneur
The successful travel and tourism entrepreneur is Brian Kelly, Founder and CEO of the
points Guy. The development strategy used by the Kelly is firstly he identified the needs and
wants of the customers. According to that he will prepare the website for the customers and
providing them travel services through that website. Then he identified the sources of finance to
invest in the business. It takes help of social media by providing ads in between the applications
that can help in generating the fund from their and also encourage other investors to invest in the
company. He assigned people on multiple roles each.
Integration:- Integration refers to the interrelation between the travel and tourism companies
that produce and promote the services. Integration are of two types such as vertical and
horizontal integration(Mamabolo, Kerrin and Kele, 2017).
Vertical Integration: It means when an organisation own companies on two or more levels of
the different buying chain is called vertical integration.
Advantages
 It lower down the transaction costs.
 It helps in increasing the market share of the company.
 Stability is maintained with vertical integration.
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 Real time information is provided by the parties.
Disadvantages
 There is no flexibility.
 It is not simple for any company to follow vertical integration.
 It is a barrier for the other new entrant in the market.
Horizontal Integration:It means when an organisation own companies on two or more levels of
the same buying chain is called horizontal integration(Stephan and Drencheva, 2017).
Advantages
 It provides higher efficiency to the employees.
 There is a scope of international trade.
 It allows economics of scope in the business.
 Revenue is increased through the customers.
 It has larger share in the market.
Disadvantages
 It is difficult to integrate the culture of different countries in horizontal integration.
 It is difficult to achieve the collaboration between two units of the company.
 There is government interference under the horizontal integration.
It affects the hospitality business sector as because of the market control of the integration the
services and products provided by the company. Through globalization also the hospitality sector
is affected as after it new technology has come into existence that affect this sector (Harrison,
Burnard and Paul, 2018).
Factors that could led to the success of the Brain Kelly in the business
Unique Idea: Brain Kelly used unique idea to introduce the website for the customers so as to
satisfy the needs and wants of the consumer.
Previous Experience: It is also the one factor that led to the success of the Brain Kelly.
Resource allocation: By proper utilizing the resources the success of the Brain Kelly is affected.
Digital Technology: Through digital technology the communication process is improved
(Harrison, Burnard and Paul, 2018).
Good people management: This also helps in achieving the goal of the business of Brain Kelly.
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TASK 3
Source of finance and support available
Source of finance and availability of support is one of the main thing that should be
thought in order to start one's own business. Many projects fail due to lack of finance and
support and is one of the main reason for the failure of the business. Type and source of funding
and support completely depend upon the type of business, nature of the business, idea and source
of revenue generation. There are various sources of support and finance available that can be
used for proposed business project of travel and tourism concept. Some of the most common
source of finance that can be used for starting a business project are: loan from friends or family,
sometimes it becomes harder to convince investors or bank about one's business idea so on such
cases family or friends can be help and act as the source of finance and support for the start-up
entrepreneurs. Another source of finance can be business loans from banks but many times it is
difficult to get financial support from banks as they are very careful in giving loans to start-up
business. By bootstrapping one's business. It is also called self-funding and is one of the most
effective and efficient way of financing one business project. It is one of the most easy and fast
source of funding and support which is available because of its various advantages. Another
source of funding is by getting investors with surplus source of finance who can support and
finance one's business in order to invest in the upcoming start-up. These kinds of investors can
either work in groups or can work individually as well. Such kind of investors sometimes also
give advice or mentoring for the start-up which might be useful for the entrepreneur in the future.
Business plan with a marketing assessment
Business Concept: The main business concept of this travel and tourism business project is
provide and arrange all kinds of travelling packages whether it is leisure or business trip in lower
price by focusing on all the international customers.
Objective: ABC travel and tourism Companies main objective is to provide world wide travel
packages to the customers and arrange their trip at destination place in as lower price as possible
with the best quality of service including travelling, stay etc. and to create a service based
company which provide the best service which exceeds customers expectations.
Mission: Main mission of the ABC travel and tourism company is to provide customers with
high quality of outdoor adventurous trips above their expectations. To maintain the customer
base and attract new customers.
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Target Customers: Target customers of ABC travel and tourism company will be all the
international customers who want to travel around the world in the lowest budget possible.
Product or services: ABC travel and tourism company will be positioning itself as the best
service provider in this competitive market. This company will provide services like booking
flight or train or bus tickets, booking of hotels at destination place, arrangement of visa of
desired destination country, providing food services, arranging tickets for all the nearest visiting
places, providing cab services and arranging various other adventurous services like Skydiving,
Skiing etc. and provide health insurance to all the customers.
Market Analysis: This travel industry is one of those industries which has an upward growth it
is because of following reasons such as: spending power of customers today has increased
drastically and most of them prefer to travel at least once in a year due to which pleasure travel is
continuously increasing. Nowadays many companies or organizations arrange business trips for
their employees, it is also increasing year by year. So, it can be said that travel and tourism
industries market segment is continuously increasing. There are two types of customers that like
to travel which are: high income individuals and another is young, active trustafarians.
Market segment strategy: ABC travel and tourism will differentiate itself as a service provider
of lower budget luxury travel and tourism company because in this market segment customers
spend a lot especially on adventurous trips.
Funding required: Cash requirement for start-up approximately $ 50,000. Start-up expenses
approximately $5,000. Cash required approximately $50,000. So the overall funding required for
the business project is $1,05,000.
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CASH FLOW STATEMENT
CASH FLOW FROM OPERATING ACTIVITIES
Cash paid to supplier
Receipt from customers
Net cash flow from operating activities
£
15000
(3000)
8000
CASH FLOW FROM INVESTING ACTIVITIES
Purchasing equipment
Net cash flow from investing activities
(1000)
7000
CASH FLOW FROM FINANCING ACTIVITIES
Payment of loan
Net cash flow from financing activities
(3000)
4000
Competitors: Main competitors of ABC travel and tourism company are already established
travel and tourism companies such as makemytrip, tripadvisior, cleartrip, trivago etc. Market
share of such Makemytrip and Trivago is more than 40% which will be a tough competition for
ABC company however, service provided by them are limited to booking tickets, hotels etc.
They also have a large customer base. In this way it will be tough to compete with these
companies as they will give a tough competition to ABC travel and tourism company.
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ORGANIZATIONAL CHART
Operational activities that is beneficial for the company are as follows:
HR department:- This department in managing all the activities of the company such as
recruitment, selection, training and development etc.
Marketing department:- It helps in promoting the product or services of the company for the
purpose of increasing sales for future course of action.
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Finance department:- It manages cash inflow and outflow in the company.
Selling and distribution department:- This helps in managing the sales of the company.
PROMOTIONAL ACTIVITIES
Company can use different promotional activities like advertising, personal selling, direct
selling, door to door selling to increasing its sales in the market. It can also promote through
social media networking by giving ads on Facebook, Instagram, twitter etc.
CONCLUSION
From the above study it can concluded that entrepreneurial trait and skills is required in
every business. Every entrepreneur must have the leadership quality to perform its role as an
entrepreneur. Risk taking is the another important skill that is possessed by an entrepreneur. For
becoming the successful entrepreneur all the traits must be possessed by an entrepreneur. As
Brain Kelly uses different development strategies in the entrepreneurial process such as
developing the website, customer needs and wants etc. From the above study it can be observed
that before starting the entrepreneur business it must have all the qualities and skills that is
required for an entrepreneur.
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REFERENCES
Books and Journals
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engage in entrepreneurship. In Academy of Management Proceedings (Vol. 2017, No. 1, p.
16427). Briarcliff Manor, NY 10510: Academy of Management.
Bredvold, R. and Skålén, P., 2016. Lifestyle entrepreneurs and their identity construction: A
study of the tourism industry. Tourism Management. 56. pp.96-105.
Hallak, R., Assaker, G. and Lee, C., 2015. Tourism entrepreneurship performance: The effects of
place identity, self-efficacy, and gender. Journal of Travel Research.54(1).pp.36-51.
Harrison, C., Burnard, K. and Paul, S., 2018. Entrepreneurial leadership in a developing
economy: a skill-based analysis. Journal of Small Business and Enterprise
Development.25(3).pp.521-548.
Kerr, S.P., Kerr, W.R. and Xu, T., 2018. Personality traits of entrepreneurs: a review of recent
literature. Foundations and Trends® in Entrepreneurship.14(3).pp.279-356.
Mamabolo, M.A., Kerrin, M. and Kele, T., 2017. Entrepreneurship management skills
requirements in an emerging economy: A South African outlook. The Southern African
Journal of Entrepreneurship and Small Business Management.9(1).pp.1-10.
Mauer, R., Neergaard, H. and Linstad, A.K., 2017. Self-efficacy: Conditioning the
entrepreneurial mindset. In Revisiting the Entrepreneurial Mind (pp. 293-317). Springer,
Cham.
Olivari, J., 2016. Entrepreneurial traits and firm innovation. Eurasian Business Review. 6(3).
pp.339-360.
Power, S., Di Domenico, M. and Miller, G., 2017. The nature of ethical entrepreneurship in
tourism. Annals of Tourism Research.65. pp.36-48.
Stephan, U. and Drencheva, A., 2017. The person in social entrepreneurship: A systematic
review of research on the social entrepreneurial personality. The Wiley handbook of
entrepreneurship, pp.205-229.
Zhou, L., Chan, E. and Song, H., 2017. Social capital and entrepreneurial mobility in early-stage
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Online
7 Essential Skills Required to Succeed as An Entrepreneur.2019.[Online].Available
through<https://www.ideatovalue.com/lead/eric-gordon/2017/12/7-essential-skills-required-
succeed-entrepreneur/>
Traits of a Successful Entrepreneur.2018[Online].Available
through<https://medium.com/swlh/10-must-have-traits-of-a-successful-entrepreneur-
d46519452b0e>
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