ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 9: Entrepreneurship and Small Business Management

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ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT
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I. INTRODUCTION:
For a long time, entrepreneurs and small business have been
recognized as a driving force for economic growth. Creating
new businesses that promote economic prosperity has shown
the importance of entrepreneurs and small businesses. With a
developing society nowadays , finding new directions is the
goal and spirit of entrepreneurs and small business. So,
through this report, students can understand the difference
between specific examples and thereby show the value and
influence of entrepreneurs and small businesses on the
economy

II. DISCUSSION:
An entrepreneur is a person who starts and operates a limited
capital and planning company and he/she is responsible for all
the risks and rewards associated with his or her business
venture. The business idea typically includes a new business
model rather than a new product or service (Seth, 2019). These
entrepreneurial  ventures target high returns with a level of
uncertainty that is equally high. The entrepreneur is willing to
risk his or her financial security and career, spending time as
well as money on an unpredictable project, planning for the
capital needed, raw materials, manufacturing sites and skilled
employees. There are four kinds of entrepreneurial: Small
business, Scalable startup, High growth firm and Social
entrepreneurial.
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1. SMALL     BUSINESS
According to the standards of the World Bank group, small
business are organizations with the variety of personnel
from 10 to much less than two hundred human beings and
capital of 20 billion or much less. Each us of a with inside
the global has its very own standards to decide the form of
commercial enterprise in its us of a. In Vietnam, consistent
with Clause 2, Article 6 of the Vietnam Government's
Decree No. 39/2018 / ND-CP: Small companies withinside
the fields of agriculture, forestry, fisheries and industry, the
variety of personnel worried Social coverage members
need to now no longer exceed a hundred human beings
on common and the full sales of the 12 months need to
now no longer exceed VND 50 billion or the full capital
shall now no longer exceed VND 20 billion.
In the sphere of commerce, the common variety of
personnel collaborating in social coverage does now no
longer exceed 50 human beings and the full sales of the
12 months does now no longer exceed VND a hundred
billion or the full capital does now no longer exceed VND
50 billion. (Assembly, 2017)
VEGETABLE OIL PACKAGING JOINT STOCK
COMPANY is a company producing and
trading PET cartons and bottles for food
companies. The company's clients include
dairy, vegetable oil production and seafood
processing companies, as well as crafts
companies. It also provides commercial
printing services on packaging and
manufacturing of plastic caps and corks.
Their goals except for profitability also
04
focus on creating righteousness within the
organization, creating a company of inter-
city value and strong foothold. Startup
projects of this type are very much in need
of venture capitalists in order to find new
business models. Once they found suitable
product and business model, they focused
more on the direction of expansion and
made more efforts to call for investment to
speed up the pace.

2. SCALABLE STARTUP
Scalable startup entrepreneurship can be defined
as a business model where an organization is
started on the basis of a unique idea. It involved
everything that ranges from creating a plan to all
the way up launching the business. This form of
Entrepreneurship involved a great sort of work,
education, and experience.” (Entrepreneurship,
2019). A typical example of this type of business is
Facebook. Prior to being founded in 2004, Mark
Zuckerberg had no previous management
experience. After the group went into stable
operation, he and his associates built their own
businesses. And by 2018, Facebook's market share
has grown significantly to 67.5% of the entire US
territory and earned a lot of profits (Clement,
2019).
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3. HIGH GROWTH FIRM

A company that is growing faster than its peers or
the economy as a whole. Although there are no
fixed rules for determining a company to grow, they
often have higher annual revenue growth than the
industry average over a long period. A company is
not classified as a growth company if its revenue or
other financial ratios only increase in a quarter and
then decrease in subsequent periods. This trend
must last for many years for the company to be
recognized as growth. (Vietnambiz, 2020)

As an enterprise that impresses both in growth and

profit value in 2018, Vinhomes Joint Stock Company
reached VND 14,234 billion profit after tax, an increase
of 840% compared to the performance in 2017. With this
profit, VHM is listed companies had the second highest
profit on the stock market (after Vietcombank with over
14,642 billion dong of net profit). Profits from these
projects are recorded in financial income, helping VHM
to achieve the highest profit in the operation history. This
has helped VHM to enroll in the top 26 businesses with
profit growth of over 400% in 2018 (CafeF, 2020).

4. SOCIAL ENTERPRISE
“A social enterprise or social business is defined as a
business that has specific social objectives that serve
its primary purpose. Social enterprises seek to
maximize profits while maximizing benefits to society
and the environment. Their profits are principally
used to fund social programs.” (Barone, 2020)

Founded by B. Kervyn de Meerendré in 2001, Mekong Quilts started with only 35 skilled
women trained to create high-quality hand sewing products such as cotton blankets and
pillows. The Mekong Quilts social enterprise model is a project of the Mekong Plus non-
profit organization, first deployed in Binh Thuan in 2001, then developed in Hau Giang
and Rumdoul (Cambodia). The key labor force of the Mekong Quilts is women in the
above poor rural areas. Mekong Quilts spends 50% of its profits on wages, business fees
and 50% goes to rural development. In addition to providing direct economic benefits to
women, the profits from products sold by Mekong Quitlts will be used to support local
community development programs such as savings, education, and education. education,
scholarships for poor children, health education, agricultural programs... (CSIP, 2020)
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III. SIMILARITIES AND DIFFERENCES

BETWEEN ENTREPRENEURIAL
VENTURES:
1, Similarities
The business environment of the organizations referenced above is explicit
and rightful business data, all the organizations are enrolled and can look for
information on web from sites. All organizations making occupations for
individuals and developing economy: Vinhomes Riverside eco-urban area has
been named "World's Best Real Estate" in 2018; … Also, the similarities of the
internal environment, they all need funds and need to call for capital from the
beginning and subsequent business development processes. VOP needs
funds to buy raw materials and marketing to start and maintain business.
With Nexus FrontierTech, they need funds to invest heavily in infrastructure,
serving expensive AI projects. Even with a big company like Vinhomes, in
order to develop strong and potential real estate plans, they need to rely on
investors' funds. Most social enterprises are small scale and large social costs,
so the payback period and profits are longer than businesses in other fields,
so calling for investment funds will help support much in terms of facilities
and maintenance for social enterprises like Mekong Quilts. The most obvious
similarity in the external environment between the types of entrepreneurs is
the competition. All businesses, big or small, have their own competitors.
Besides, all types of businesses are affected by trends, culture, political risks,
customers, the economy changes... (Entrepreneurship, 2019)
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IV. IMPACTS OF MICRO AND SMALL

BUSINESSES ON THE ECONOMY:
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V. IMPORTANCE OF SMALL BUSINESSES

AND START-UPS:
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III. CONCLUSION
Through this assignment, I have gained a lot of knowledge about how to
develop and exploit business opportunities, and at the same time see
the unique, similar and different features and the importance of
entrepreneurship relationship and small business.
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REFERENCES
barone, A., 2020. Social enterprise. 3 2. Enterpreneurship, W. i., 2019.
Scalable Startup Entrepreneurship: Definition and Examples. 13 9.

M. Nguyen, 2019. [Online]. Available at:

https://tinnhanhchungkhoan.vn/chung-khoan/thaygi-tu-nhung-doanh-
nghiep-tang-truong-cao-257503.html [Accessed Feb, 16th 2020]

D. Nguyen, 2018. AZlaw. Available at: https://azlaw.vn/doanh-nghiep-xa-hoi-

la-gi.html [Accessed Feb, 17th 2020]

H. Anh, 2015. Csip, Doanh nghiep xa hoi. Available at: http://csip.vn/chi-

tiet/doanh-nghiepxa-hoi-gia-tri-kep-hay-loi-the-canh-tranh-47.html [Accessed
Feb, 17th 2020]

Petrotimes (2018). [Online]. Available at: https://petrotimes.vn/doanh-nghiep-

xa-hoi-hopluc-tao-tac-dong-thuc-day-nen-kinh-te-ben-vung-517237.html
[Accessed Feb, 17th 2020]

Grover, 2018. [Online]. Available at: https://www.vcsc.com.vn/tin-chi-

tiet/vietnam-shouldconsider-high-growth-firm-focused-policy-toboost-
economic-performance-wb/242916

Assembly, V. N., 2017. [Online]. Available at: https://thuvienphapluat.vn/van-

ban/doanhnghiep/Luat-Ho-tro-doanh-nghiep-nho-va-vua-2017-
%20320905.aspx

Chen, J., 2018. [Online] Available

at:
https://www.investopedia.com/terms/g/growthfirm.asp