STRATEGY, OPERATIONS, AND ENTREPRENEURSHIP GROUP

ESSEX BUSINESS SCHOOL

UNIVERSITY OF ESSEX

EXAMINATIONS 2020-2021

BE250 THEORIES AND PRACTICE OF ENTREPRENEURSHIP

Time allowed: 24 hours

Time to spend on your assessment: 2 hours

Maximum word count for assessment: 2,000 words

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The paper consists of FIVE questions.

Candidates must answer THREE questions:

ONE question from Section A

and
TWO questions from Section B

Candidates are advised to read the questions carefully before answering them.

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Section A
This section carries 50 marks. All questions carry equal marks.
Answer ONE question in this section.

• Discuss the following statement: “Entrepreneurial firms are the backbone of

developed economies”. Make sure to provide relevant arguments and examples in
your discussion.

(50 marks)

• Discuss the hurdles that family businesses face as compared to non-family business.
Make sure to link your discussion with relevant theories and examples.
(50 marks)

END OF SECTION A

Section B
This section carries 50 marks. All questions carry equal marks.
Answer TWO questions in this section.

• Explain with examples the role of strong and weak ties in entrepreneurship.
(25 marks)

• Explain with examples how entrepreneurs can make use of P2P lending and highlight
the advantages as compared to other means of finance for entrepreneurs.
(25 marks)
 • Explain the key distinctions between social media marketing and traditional
marketing. Make use of an example to illustrate your answer.
(25 marks)

END OF SECTION B

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SECTION – A

Question: 1-

Business venture, from the advancement of social change to the drive of innovativeness, is
basic for some reasons. Managers are additionally seen as public items with the most ideal
development, inspiration and compensation. In reality, the absolute most progressive
nations, including the US, are worldwide pioneers in light of their forward-looking
inventiveness, science and business.

Large money managers are capable on nearby and public ground to change the way we live
and work. As well as producing success of pioneering undertakings, their innovations will
raise everyday environments and even make work and add to an expanding economy, when
they are proficient. There is no misrepresentation of the truth of the worth of business
venture.
For example, during the 1990s, a couple of IT organizations in India established the IT
business. It developed quickly and upheld numerous different enterprises. Organizations in
related areas like the administration of call focuses, network fix firms and providers of
equipment thrived. Instruction and preparing establishments encouraged another age of
lucrative IT experts.

Huge strategic help, foundation subsidizing and prepared faculty are likewise required for
future advancement exercises in different nations. The business venture helps a
tremendous part of the economy from a profoundly talented developer to a development
labourer. Little organizations created a network of 1,6 million out of 2019 in the United
States alone.

National Income

Business ventures help to make new wealth. Set up organizations will stay confined to
existing business sectors and can arrive at a pay cap. New and upgraded innovative
merchandise, administrations and advances permit the improvement of new business
sectors and the formation of new capital.

As higher expense incomes or extended government speculation, more positions and higher
pay add to improved public pay. The public authority will utilize these pay to put resources
into different businesses and HR in trouble. While a couple of arising entertainers may be
out of date, the public authority will facilitate the pass up diverting excess wealth to retrain
occupations. There are 31.7 million private companies in the United States in 2019 as
indicated by the United States Small Business Administration.

Social Change

Business visionaries move away from custom by conveying exceptional items and benefits
and diminish their dependence on obsolete frameworks and innovation. This will support
the nature of living, improve moral norms and increment financial opportunity. In a water
shortage region, for instance, water supplies may regularly make individuals try not to
gather water. This influences their venture, effectiveness and income.

Be that as it may, a high level and computerized siphon worked by savvy brilliant sensors
naturally fills individuals' water holders with a task like RAPID of the US International
Development Agency for Kenya, which presently ensures in excess of 184,000 individuals
better admittance to solid drinking water. This sort of imagination implies that individuals
can depend on their work without thinking often about a major need like water. More
opportunity to spend on positions implies monetary thriving.

Cell phones and applications have reformed work and play all throughout the planet for a
more contemporary model. In rich nations and individuals, cell phones aren't selective on
the grounds that in excess of 5 billion individuals worldwide have cell phones. The
continuation of portable advancement will have a significant, long haul impact on the field
of designing business venture.

What's more, mechanical government guarantees that business people in the created world
approach similar advances as their partners. They additionally advantage from lower living
expenses, in light of the fact that a youthful business person from a creating world will
battle with a result of an industrialized country worth large number of dollars.

Local area Development

Businesses habitually support organizations from others with a similar brain. They likewise
partake in neighbourhood drives and furnish nearby causes with monetary assets. This
permits more noteworthy headway past your own endeavours. Some understand financial
specialists, including Bill Gates, utilized their assets from training to general wellbeing to
finance great aim. The ascribes that make a money manager the very characteristics that
move business people in a later life part to pay for generosity.

Entrepreneurship: Good or Bad for the economy?

Do authors and undertaking have any burdens? Will an organization have a cap on the
quantity of business people? Tania Babina, Associate Professor of Business at Columbia
Business School, has inferred that "laborers in youthful organizations appreciate lower
benefits comparative with representatives in more established organizations" in the
investigation composed with Wenting Ma, Associate Professor and Paige Ouimet, and
Rebecca Zarutskie, Assistant Director of the Board of Governors.

Italy might be a pointer of where high independent work has gotten inadequate in monetary
development. Examination shows that Italy's independent work has had a significant
unfavourable impact on development in its economy. The well-known adage could be true:
“too numerous culinary specialists, and the soup can't be ruined by enough cooks."

Government’s Role

In encouraging business, guidelines are a key factor. Unregulated business will prompt
undesirable social outcomes, including inconsistent exchanging conditions, overpowering
defilement, and wrongdoing.

UN discoveries additionally show the likely outcomes of "over-alimenting" business venture.

Wim Naudé contends the European financial specialist that "If business can increment
monetary and considerable government assistance, change in non-material government
assistance can't generally result (or bliss). It is continually viewed as an indispensable point
of advancing satisfaction."

Perplexingly, an extensively huge number of workers for hire will add to furious contention
and the absence of individual profession choices. The degree of wants regularly increments
for such countless business visionaries. The situation with such a large number of business
people could add to pay disparities because of the variances in execution in big business
ventures, which would make the resident less cheerful.

Concluding Arguments
It is vital for strategy creators and entrepreneurs to think about the connection among
business venture and monetary development. Understanding the benefits and burdens of
business makes for a decent innovative procedure that can have a positive monetary and
social impact.

SECTION – B

Question : 1 –

Granovetter takes note of that tie power is a component of time spent seeing someone,
enthusiastic force, closeness and shared assets. Solid connections are profoundly social and
happen inside individuals with rehashed emotional contacts like relatives and dear
companions. Then again, feeble relations between individuals who have surprising and
regularly non-full of feeling cooperation give off an impression of being set up. Powerless
connections apply to an intricate gathering of individuals utilized in different manners with
which one has an uncommon or odd relationship.

Granovetter requires an essential situation for helpless connections as a result of better

straightforwardness and assets for outer sponsor to mind boggling and new information.
Solid connections may give excess material, then again. Powerless connections are
frequently more fitting to connect different organizations than to give strong connections.
Be that as it may, the writing didn't unambiguously fill the role of helpless connections in
business. Examination shows that in their endeavours early business visionaries are
generally utilized for close connections, with most organization proprietors detailing solid
relations somewhere in the range of three and ten.

In a nutshell, solid and powerless relations are useful and lead to the development and
development of organizations, yet differently and in various periods they are significant for
the headway of a business. Accordingly, a particular blend of positive and frail associations is
the ideal business organization. In three enterprising cycles, we have separated organization
relations.
(1) The chance to recognize possibilities: networks in which the business person is pretty
much included can be a significant wellspring of inventive thoughts and productive
freedoms. Slopes, Lumpkin and Singh track down that about half of originators across their
informal organization have set up thoughts for new organizations. Besides, past information
and ability are fundamental in the change from idea to the genuine dispatch of an
organization. The two factors are firmly identified with 9 organizations, as organization
associations can be viewed as methods of getting to data and information.

(2) The chance to get framework: having assets availability is a significant piece of the
endeavour instrument through networks. Financial specialists never have all the cash to
exploit an opportunity. In the new organization, access, preparation and arrangement of
capital is one of the key assignments. At the soonest phases of the beginning up, this is an
overwhelming test with inadequate monetary capital and no ability to deliver inner assets
and benefits. The establishing organization can be provided with administrations (for
example monetary and human resources) through close friendly guide organizations (e.g.
mates, family ties), subsequently giving another firm coherence in its beginning phases.
Likewise, meagre organizations help to search for fundamental resource providers (for
example account, specialized accomplices and key clients), which may give new freedoms to
the beginning up.

(3) The chance to accomplish believability: a beginning up organization will help with
opening the path for authenticity. The legitimization of something many refer to as
progressive is basic. New businesses are confronted with the duty of development or plainly
announced that they face more serious danger than old organizations of disappointment.
Organization associations will prompt associations with esteemed field players.

Question : 3 -

Basically, Social Media advertising utilizes Social Media stages as showcasing vehicles, for
example, sites and online media. You are knowledgeable in the promotions that appear in
your stream on the off chance that you utilize web-based media – Social Media showcasing.
In the opposite side, conventional showcasing incorporates customary outlets like
announcements and printed media. Consider Don Draper in Mad Men conceptualizing Coca-
Cola field-tested strategies and duplicates of TV. Customary advertising was essentially the
solitary type of showcasing until 1990s, when the web was made.

The greatest differentiation among present day and ordinary promotions is the medium
used to convey to people in general. Current advertising uses Social Media, including online
media or websites, while regular showcasing utilizes broad communications, like magazines
and papers. Conventional informing additionally doesn't recommend that it's older style.
The steadily developing need to move away from the advanced world remaining parts
pertinent for the customary promoting in the existence of individuals.

The vivid sensation of a strong TV advert and the material character of a reproduction of
Rolling Stone magazine impacted your brain 20 years prior. Unknowingly you are genuinely
joined to their image, which implies they stay at their top.

Online Media promoting is as pertinent, if not more, than customary. Any point with contact
of your regular Internet utilization is utilized to utilize Social Media advertising. You could
see a customized advertisement from Sky Scanner soon after you'll be searching for
occasion beliefs for your one weekend from now escape for Google. The Internet is a normal
piece of the vast majority's regular day to day existences for a long time each day. Online
Media advertising exploits this by shrewdly woven into the Social Media waterway of
showcasing correspondences.

It is critical to find some kind of harmony among customary and current arrangements in an
extraordinary promoting technique. Online Media advertising is the yin for regular business
yang in 2020. They are both basic in an advertising approach, however when utilized pair,
they are both lifted up. For example, take Guinness. Their TV commercials are eminent for
their unmistakable and solid filmmaking. In excess of twelve years after the fact, the 1999
notable Guinness crusade 'Surfer' is as yet one of the best TV posts ever. Be that as it may,
Guinness likewise needs to continue ahead with the occasions, and with this famous job, so
they don't miss out on significant exposure openings.
Guinness has likewise broadened its Social Media skylines to pull in a more extensive and
more youthful segment by making video content explicit for Facebook and Instagram.
Rather than reformatting TV promotions themselves, they shot their commercials for
Facebook and Instagram as friendly first pictures. The recordings were pointed
straightforwardly at the public they considered. Therefore, Compton's Cowboys care for
their ponies in California is outwardly stunning and significant online media. Complete
Instagram grain, stylish and sharable.