GBS0904A: Entrepreneurship and Small Business Management Report

This report, prepared by a student for a BTEC HND in Business unit, delves into the multifaceted world of entrepreneurship. It begins by defining and differentiating various entrepreneurial ventures, including small businesses, scalable startups, high-growth firms, and social enterprises, using examples like Tram Anh Hoi An Chicken Rice, OnPoint Vietnam, Sao Mai Group, and KYM Viet Joint Stock Company. The report then analyzes the similarities and differences between these ventures, focusing on their business goals, scales, and risk profiles. Furthermore, it assesses the significant impact of micro and small businesses on the economy, citing statistics on their contribution to employment and GDP in Vietnam. The report concludes by emphasizing the importance of small businesses and startups in driving economic and social growth.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 9: Entrepreneurship and Small Business Management
Submission date Date received (1 st submission)
Re-submission date Date received (2 nd submission)
Student name TRẦN MINH THƯ Student ID GBS16544
Class GBS0904A Assessor name TRUONG ANH TUYET
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.
Student’s signature:
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Contents
I/ Introduction................................................................................................................................5
II/Body............................................................................................................................................5
2.1 Different types of entrepreneurial ventures........................................................................5
2.1.1 Introduction of the chosen firms...................................................................................5
2.1.2 Different entrepreneurship ventures............................................................................6
2.2 Similarities and differences between entrepreneurial ventures.........................................8
2.3 Impacts of micro and small businesses on the economy.....................................................9
2.4 The importance of small business and startups to the growth of the social economy.....10
Conclusion....................................................................................................................................11
REFERENCE....................................................................................................................................12

I/ Introduction
Entrepreneurship can be the process of planning, designing and creating a new business.
Starting a business brings many value to the entrepreneur himself and many benefits to
society and employees. Besides, it also involves financial risks about a particular business
and the idea of starting a new business and also requires an understanding of the actual
process to create a new business. To promote and build entrepreneurship among young
people, this report focuses on providing definitions of the different types of venture
business and explaining their relationship to entrepreneurship. The second content
covered in this article is to outline the similarities and differences between those
ventures. The impact of micro and small businesses on the economy is also addressed in
the third part of the study. The last part of this report focuses on clarifying the
importance of small businesses and startups to develop the economy and society
II/Body
2.1 Different types of entrepreneurial ventures
2.1.1 Introduction of the chosen firms
Small business: Tram Anh
Hoi An Chicken Rice Tram Anh is a small local eatery serving one of Hoi An's famous
dishes, chicken rice. Established in 2018, Tram Anh is still one of the most popular Hoi
An chicken rice restaurants in the vicinity, serving lunch only and just starting to partner
with Now and Grab for takeout.
Scalable startup: Onpoint Vietnam
OnPoint was established in December 2017 and is currently the number 1 e-commerce
development support service provider in Vietnam. OnPoint offers a one-stop solution
that allows brands to boost their presence on e-commerce platforms, social networks, or
their own sales websites, thereby rapidly increasing online sales. The Company's
customers include a wide range of brands with a portfolio of categories focusing on
health and beauty care, mother and baby products, fashion and home goods. Typical
customers of OnPoint are L'Oreal, Shiseido, P&G, Rohto, Beiersdorf, Unilever
International, Watsons, Kimberly-Clark, Unicharm, CJ Group, Anlene, Aldo, Bosch,
Groupe Seb. (Onpoint, 2020)
High growth firms: Sao Mai Group Joint Stock Company
The predecessor of Sao Mai Group (another name for Sao Mai Investment &
Construction Joint Stock Company, An Giang province). The Company was established on
February 5, 1997. On January 18, 2010, the Company's shares were officially traded on
HOSE. The Company has strengths in the field of construction and seafood. The

Company's seafood products are exported to more than 50 customers around the world
through IDI. Company IDI is ranked 9th among seafood exporters in Vietnam. The
factory has a processing capacity of 600 tons of raw materials/day.
Social Enterprise: KYM Viet Joint Stock Company
Established in December 2013, KYM VIET JOINT STOCK COMPANY is a handicraft
production and trading facility founded by people with disabilities to create jobs for
people with disabilities. (KYM Viet, 2020)
2.1.2 Different entrepreneurship ventures
The business inspiration: An entrepreneur is always looking for new things and turning
those business ideas into opportunities. As the word “entrepreneur” comes from the
French word enterprendre, which means “to complete”, entrepreneurs refer to people
who “take” the risks of new business to create something new of their own
(Yourarticlelibrary, 2020).
“Entrepreneurship is the course of action of an entrepreneur. It can be understood as
the process of creating a unique value. Entrepreneurship includes various activities that
ensure the survival and growth of a business. Entrepreneurship tends to go through
these four stages (Steemit, 2020);
Formation stage (when an idea or opportunity is realized)
Pregnancy stage (when the chance is assessed)
Early-stage (when the business is established)
Adolescent stage (after business maturity)”
Types of entrepreneurial ventures
According to Steve Blank, a Silicon Valley entrepreneur based in Pescadero, California,
not all types of startups are created equal, but there are four specific types of startups:
Small Business:
“A small business is defined as a corporation, partnership, or independently owned and
operated Company that is limited in size and revenue depending on the industry. Small
businesses often serve to support owners and their families and often employ people
they know. This is the most common type of business that we can find anywhere;
Grocery store, caterer, barber, tailor, etc”.
The definition of “small” varies across countries and industries. The US Small Business
Administration defines a small business according to a set of standards for specific
sectors (Asq, 2020)
Table 1. Small business standards
Sector Limit
Production and fabrication 500 personnel
Purchase 100 personnel
Retail and service industry Average annual sales no more than 6
million US dollars
Heavy industry Average annual sales no more than 28.5

million US dollars
Special commercial contractor Average annual sales no more than 12
million US dollars
Agriculture Average annual sales no more than 0.75
million US dollars
(Source: Asq, 2020)
In the case of Tram Anh Chicken Rice Restaurant as an example in this report, the
restaurant has less than 5 employees, and they are all family members. Chicken rice
restaurant is the means to generate their income. It fulfills all the characteristics of a
small business.
Scalable startup
“Scalable startup is defined as a business model where entrepreneurs start from a unique
basic idea. Unlike small businesses, scalable startups believe their vision can one day
change the world. They seek investments from a variety of sources, the most common of
which are venture capitalists. Since their goal is to grow big and fast, these businesses
often hire only the best and brightest employees they can find (Casnocha, 2020)”.
OnPoint, the leading provider of e-commerce development support services (E-
commerce Enabler) in Vietnam, has successfully raised up to 8 million USD in Series A
round. This investment will help OnPoint accelerate the growth of the Company's
revenue, and at the same time, continue to develop innovative e-commerce solutions
for all customers who are domestic and international corporations and brands.
High growth firms
“High growth companies have a track record of showing unusually rapid growth
compared to other competitors. They are one of the most popular topics of debate in
the financial markets”. While their high “growth” usually refers to their revenue, it can
sometimes be non-financial growth (Investopedia, 2020)
Sao Mai Group Joint Stock Company has demonstrated great development in recent
years. Their revenue increased from 1,500 billion VND to more than 12,000 billion VND
in just 5 years (2013-2018). Without a doubt, Tesla Inc. completely inconsistent with the
definition of high-growth companies (Investopedia, 2020).
Social enterprises
A social enterprise, or social enterprise, is a business that has specific social goals that
serve its primary purpose. A social enterprise is not necessarily a non-profit organization.
Social enterprises aim to maximize profits while maximizing benefits for society and the
environment. Their profits are mainly used to fund social programs (Investopedia, 2020).
KymViet Joint Stock Company was established with the following missions: (1) Creating
jobs for people with disabilities who are still able to work, contributing to improving
livelihoods and improving the lives of people with disabilities, helping them integrate

into the community; (2) Creating sophisticated handicraft products with high use value
and aesthetic value to serve society; (3) Putting humanistic stories and Vietnamese
cultural values into each product, contributing to spreading Vietnamese traditional
values to the domestic and international community.
2.2 Similarities and differences between entrepreneurial ventures
Similarities:
“Although different types of businesses have different visions, sizes, scopes and values,
the business goals are still similar; All of the above business models are aimed at a
sustainable business model.
Besides financial resources, people are also an element that they consider as one of
their assets for these businesses.
Small businesses rely on trustees to run the business, startups rely on visionaries and
forerunners and excellent team members to succeed, businesses need managers With
an experienced and wise director to take the lead in competitions, social enterprises
need sharp members who are not afraid to devote their efforts to a good cause.
No matter how big their goals, business ventures start with seeing a business
opportunity. Whether it was a good opportunity or not, they saw an opportunity and
they took advantage of it. Last but not least, all projects adapt to the ever-changing
trends of society. It's a must, because if they don't catch up, they'll fall behind and
eventually give up”.
Differences:
Criteria Small business Scalable
startup
High growth
firm
Social
enterprise
Business goals Make profit to
serve life
Provide
innovative,
unique
products.
Achieve high
profitability
for investors
“Market
dominance and
strong growth
through
marketing
strategies and
product and
service
development”
“Provide
products and
services that
serve society
and have
human values”
Business scale Each country
has different
standards for
determining
the size of
small
businesses
Depends on
company
structure,
organizational
chart and
Company size
The number of
employees can
be more than
1000 employees
“Depends on
company size”

“Forms of
business
organization”
Sole
ownership
Corporation,
joint-stock
company or
limited
liability
company
Public or private
limited
Company
Organized
based on the
trustee
Risk Risks are kept
to a minimum.
However, the
competitive
environment
with rivals is
quite high
“Risks and
pressures in
business are
proportional
to the level of
investment of
investors. The
higher the
investment,
the higher the
return
required”
“Moderate level
of risk. Because
fast-growing
businesses often
play an
important role
in controlling
their brand
value”
Moderate level
of risk as these
companies
often have a
non-profit
vision and are
supported by
society at the
time of their
establishment.
2.3 Impacts of micro and small businesses on the economy
“In 2015, in Vietnam 95% of total operating enterprises were small and medium
enterprises (SMEs). Small and medium-sized enterprises in the country are defined with
a capital size of not more than VND 100 million and/or a total number of employees not
exceeding 300.
In Vietnam, the number of small and medium enterprises has grown strongly since 1985
and brought many benefits; 51% of the workforce work for small and medium-sized
enterprises, contributing more than 40% of the country's GDP, per capita income
increased from $471 in 2003 to $2300 in 2016 (Asean-csr-network, 2018)”.
In the case of Tram Anh, the restaurant has several economic effects not only local. In
terms of the diversity in consumption of the economy, Tram Anh is one of the
restaurants that create regional characteristics when famous with the nickname “Hoi An
Chicken Rice”. “It contributes to the variety of choices when choosing a restaurant for
lunch for customers looking for a place to have lunch or even take away lunch. Although
they currently only serve a few types of chicken rice, they can always add more to their
menu and thus improve the variety in the consumption patterns of the local economy.
In terms of job creation, Tram Anh chicken rice restaurant often recruits from internal
sources. However, this is also how many other small businesses run their businesses, by
hiring their family or people to whom they are referred. This helps them manage and
control their business better and easier. As their business expands, they can always hire
more employees to support their business. Although their contributions are pretty small,
Tram Anh and many other small businesses are the mainstays and perhaps the most

significant contributor to the Vietnamese economy. Small businesses like Tram Anh
contribute to the diversity of the economy. Small businesses of all types and sizes
provide a diverse economic network. These small businesses can also create competition
between units in the same industry. This healthy competition is another factor that
helps establish a diversified economy and strong economy of the country”.
2.4 The importance of small business and startups to the growth of the
social economy
Socioeconomic definition:
“Socioeconomic refers to the goals of companies. Whether it is for-profit or not, the
business/organization's social goals and beneficial goals of the business/organization
contribute to the social economy. Although theories may differ, socioeconomics is
concerned with the relationship between social and economic factors in society
(Investopedia, 2020).
How small businesses and startups contribute to socio-economic development:
As mentioned above, small businesses like Tram Anh have many ways to contribute to
the social economy: They are a platform to sell products and services. Small businesses
provide the most basic form to buy products and use services. Without having to go
through complicated, action-packed processes as many large businesses require, small
businesses help customers get through their day much faster.
While large companies typically only employ skilled people, small businesses help
governments solve their social problems by using both skilled and unskilled people.
Unskilled people don't have many opportunities from larger businesses but they can
always count on small business to provide benefits in return for some hard work.
Small businesses help develop entrepreneurship. Take Tram Anh for example, today it
might be a small local restaurant; but tomorrow or in the near future, it may become the
most prominent Hoi An chicken rice restaurants in Vietnam. Provide jobs for many
people and make significant contributions to the Vietnamese economy. Small business
also creates perfect competition. When they see similarities in their businesses and
other businesses, small businesses will find new ways to improve their business.
In the case of a startup like Onpoint, although it is different from a small business like
Tram Anh in many ways, it also contributes a significant part to the social economy.
Startups contribute innovation to society. As can be seen from its definition, startups
gather new ideas about products and services that essentially solve social or in many
cases needs/problems. If small business is the backbone of an economy, startups are the
levers that can propel an economy forward.
When they bring innovation to society, startups create new jobs for many people.
Startups make a large share of new jobs that can contribute to economic growth in the
long run.
Entrepreneurship brings a positive impact to society. Startups come up with new ideas
to solve many problems and develop innovative methods to solve many of society's

problems. They contribute to changing existing values in society and creating new
thinking, motivating people to do better in their work and daily lives”.
Conclusion
This report clarifies many factors between different types of ventures and lists their
impacts on the economy and society. By explaining company-specific statistics, this
report's content is intended to understand venture business types with real-life
examples better. With this information, further research into entrepreneurship and the
business environment can be done without much difficulty in understanding the
concepts.

REFERENCE
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https://asq.org/quality-resources/small-business
Casnocha, B., 2020. The Four Types Of Entrepreneurship. [online] Ben Casnocha. Available
at:https://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html
Corporate Social Responsibility", s.l.: https://www.asean-csr-network.org/Ethnotek, 2020. About
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Steemit, 2020. THE NATURE OF ENTREPRENEURSHIP — Steemit. [online] Steemit.com. Available
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