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 15th, August 2021 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name HO PHAN PHUONG TRANG Student ID GBD191361

Class GBD0901A Assessor name NGUYEN MINH HAI

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
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HO PHAN PHUONG TRANG

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Contents
I. INTRODUCTION ............................................................................................................................................. 4
II. BRIEF INTRODUCTION ABOUT THE CHOSEN FRIMS ........................................................................................ 4
1. Small business ....................................................................................................................................... 4
2. Scalable start-up ................................................................................................................................... 4
3. High – growth firm ................................................................................................................................ 4
4. Social enterprise.................................................................................................................................... 4
III. ANALYSIS ................................................................................................................................................. 5
1. Explore and illustrate the range of different entreneurship ventures ...................................................... 5
1.1.Different types of entrepreneurial ventures ......................................................................................... 5
1.2 The similarities and differences between entrepreneurial ventures ...................................................... 7
2. Evalute the impact and importance of small businesses on the economy ................................................ 8
2.1 The impact of the chosen small business in Vietnam............................................................................. 8
2.2. The importance of small businessed and business start-ups to the growth of th social economy ......... 11
IV. CONCLUSION ............................................................................................................................................. 12
REFERENCES ................................................................................................................................................... 12
I. INTRODUCTION
Economy on a development led to the growth of businesses from small to large. As a consulting small
business, here is a report aimed at promoting young people understand more about nhungcac business
type examples of each type of business (small business, starting a business can expand, grow taller
companies, social enterprises). Thereby can help in building more business projects. Not only the
definition of each type of business, but also the impact of small businesses on the national economy,
demonstrating the importance of businesses.

II. BRIEF INTRODUCTION ABOUT THE CHOSEN FRIMS

1. Small business
The selected business is Gia Tuan Mostel Hotel founded by Mr. Nguyen Quoc Tuan in 2018 at 227/2,
Nguyen Van Thoai, Phuoc My Ward, Son Tra District, Da Nang City. Business purpose of room rental
service for tourists, and necessary needs

2. Scalable start-up
Technology Limited is a web browser for Vietnam market developed by Coc
Coc Technology Limited Liability Company. Coc Coc has become one of the
largest Search Engines and Web Browsers in Vietnam. In addition, when
compared to online advertising networks in the country, Coc Coc is the
largest advertising platform with more than 22 million users. Coc Coc
Browser - A fast and convenient web surfing tool with many interesting
features integrated built-in such as: fast and secure Facebook access, high-speed file download,
smart online shopping feature

3. High – growth firm

Vingroup's predecessor is Technocom Group, established in 1993 in Ukraine.
In the early 2000s, Vietnam Technocom back, focus on investment in the
field of tourism and real estate with two nguyenthuong strategic brand,
Vinpearl and Vincom. In January 2012, Vincom Joint Stock Company and
Vinpearl Joint Stock Company merged and officially operated under the
group model with the name Vingroup - Joint Stock Company. Company founded by real estate developer
and entrepreneur Pham Nhat Vuong

4. Social enterprise
VBPO is an IT company whose director is disabled. From his own reality,
from the difficulties and failures he has experienced, he always urges
himself to do something to help people with disabilities and
disadvantaged people in Vietnam get a job. , contribute to social stability
and security issues, and bring wealth and prosperity to the nation. It was
 that dream that created the vision and core values for the birth of VBPO and also the motivation to
continue promoting the development of the company. VBPO Joint Stock Company was established
on July 12, 2010, headquartered at 20th floor, Da Nang Software Park, 02 Quang Trung, Hai Chau, Da
Nang.

III. ANALYSIS
1. Explore and illustrate the range of different entreneurship ventures
1.1.Different types of entrepreneurial ventures
a) Small business

A small business or a small business/individual, also referred to as a subsidiary or subsidiary (in the
parent-child relationship), is an enterprise, usually a private enterprise, operating with a limited number
of employees. Small number of employees and relatively low volume of sales. They also cannot offer a
large enough scale to attract investment. The main source of financing for their business is usually loans
from friends, family or business loans (SIMON & KEN, 2009).

Coffee shops, bakeries, cothes shop that are confined to a small area are good examples of small
businesses. In addition, small companies can run the hotel and restaurant business privately or just as a
subsidiary. In addition, small businesses are owned and operated by a single person, they are sole
proprietorships. Gia Tuan mostel is a local hotel in Da Nang city area, representing a small business. was
established from 2018 to present. According to Mr. Tuan, owning a small business and his money is also
used in its operation and with the ambition to become a large hotel chain serving domestic and foreign
tourists.

b) Scalable start-up

This is a business model of an organization that is started on the basis of a unique idea. everything from
planning to starting a business. This type started with a vision that they could make some changes in the
world. Their goal was to find a repeatable and scalable business model. Once they found it, they began
to raise capital from venture capitalists for the growth of the business (Steven & Bob, 2010)

Coc Coc (formerly Co Rom +) is a free and unique web browser for the Vietnamese market developed by
Coc Coc Technology Co., Ltd. common. Coc Coc was founded in 2007 by 3 Vietnamese programmers,
Nguyen Thanh Binh, Le Van Thanh and Nguyen Duc Ngoc. All three studied at Moscow State University
and applied to the Russian search engine development group nigma.ru of the Forum of Computational
Science and Cybernetics. Based in Hanoi, Coc Coc manages the work. Search engine, web browser
exclusively for Vietnamese people. Officially launched in 2013, the company surpassed Microsoft's
Internet Explorer a year later. To date, Coc Coc is the most used browser in Vietnam, after Google
Chrome (Coccoc, n.d.). As of August 2020, Coc Coc has 25 million users, reached 13 million mobile
downloads, ranked 4th in mobile browsers and is the only browser not belonging to system
manufacturers. operating. Coc Coc said that revenue in 2020 has reversed the downward trend in
previous years, increased again and is expected to record positive results (Loan, 2020).

c) High – growth firm

Financially, the term corporate growth refers to a company that is growing at an unusually fast rate
relative to its industry peers. Growth companies are those that are often discussed widely in the financial
markets, igniting debate about the sustainability of their operations. Growths here refer to financial
metrics, revenue and book value per share (Fernando, 2020)

Vingroup is one of the largest multi-industry private economic groups in Asia with a market capitalization
of nearly 16 billion USD. The Group operates in three core business areas, including: Technology,
industry, trade and service. With the desire to bring to the market products and services of international
standards and experiences. completely new to modern lifestyle, in any field Vingroup has proved its
pioneering role, leading the change in consumption trends (VINGROUP, n.d.).

Vingroup's predecessor is Technocom Group, established in 1993 in Ukraine. In the early 2000s, Vietnam
Technocom back, focus on investment in the field of tourism and real estate with two nguyenthuong
strategic brand, Vinpearl and Vincom. In January 2012, Vincom Joint Stock Company and Vinpearl Joint
Stock Company merged and officially operated under the group model with the name Vingroup - Joint
Stock Company. Company founded by real estate developer and entrepreneur Pham Nhat Vuong

d) Social enterprise

A social enterprise is defined as a business that has social goals that serve its purpose. Corporate society
seeks to maximize profits while maximizing benefits for society and the environment. Organizational
profits are mainly used to fund social programs. Unlike charity, social enterprise seeks to generate
revenue and capital for their social cause (BARONE, 2020).

In recent years, BPO (Business Process Outsourcing) has emerged as a second wave of outsourcing due
to the need for organizational improvement, process improvement, because BPO helps large enterprises
optimize their organization with a compact structure. lighter, focusing resources on developing
spearhead operations and pushing administrative operations to the outside. It can be said that BPO is
the most effective method to save costs and grow profits in the context of the global economic
downturn.To meet the development needs of businesses and follow new trends, VBPO Joint Stock
Company was born and provides BPO services to help businesses reduce great pressure on revenue and
professionalize business processes. business for enterprises; and at the same time bring a rich source of
jobs for the people of Central Vietnam (VBPO, n.d.).
According to Mr. Tran Manh Huy, the founder of the company, he has been paralyzed on the left side
since birth. Not accepting the difficult life, he struggled to get up even though his legs and arms were
unable to walk. He stood on his own two feet, did not surrender to fate, became the owner of a
business. He also created conditions for hundreds of people with disabilities to have jobs, helping them
feel more useful in life (Cuong, 2015).

1.2 The similarities and differences between entrepreneurial ventures

A business that wants to develop long-term needs to depend on two internal and external factors. These
factors shape the business operating in a particular environment (Iedunote, 2021).

- Internal factors include the circumstances and factors affecting an organization's management.
Organizational mission, owners and boards, employees and entities are all aspects of the internal
environment

- External factors include those that directly affect the company from an external organization. Of
course, the boundaries separating an organization from its external environment are not always clear
and precise.

• Similarities
- First: Regarding legal status: Limited company and joint stock company both have legal status
from the date of issuance of business registration certificate. Regarding responsibilities of capital-
contributing members, public members limited liability companies, shareholders of joint-stock
companies must be responsible within the scope of capital contributed to the company. About
the legal representative: Joint stock companies and limited liability companies may have one or
more legal representatives.
- Second: Business models, new ideas to orient and develop the business. Business models will
include many elements such as innovation plans to ensure the growth and success of the
company.
- Finally, all four types solve the problems of creating human resources and boosting the economy
of each country

=> To sum up, the similarities of all types of businesses have an effort to succeed by increasing their
value both financially and as a brand. They all contribute to the growth of the country's economy, and
create many job opportunities for today's young people and finally serve the needs of customers.

• Differences

Based on the 7s model and Porter's Five forces, I found the most important differences in the following
types of companies:
 - These four businesses have distinct points. Small businesses like Gia Tuan Mostel initially focused
on the local market. These businesses are small and employ between 2-10 employees. There is
no specific operating organizational structure and no plans to expand the company. However,
their level of risk is also quite low compared to other business models.
- In contrast, Unlike small businesses, entrepreneurs are scalable like Coccoc from the start with a
clear strategy and growth vision. The size of this business depends on the number of investors.
They generate profits and also promote business growth, boosting the country's economy.
However, their risk level is high due to pressure from revenue and investment. Having to
convince investors with the same vision as the business and long-term companionship requires
founders to have a clear and convincing strategy.
- For businesses with fast business growth like Vingroup, they always have long-term strategies
and a broad vision. The company structure is quite complex divided into many levels for
management. Vingroup is always looking for ways to expand the market, expand the reach of
customers and invest in research and development. Vingroup continuously invests and develops
the technology industry (Vintech) to develop abroad. There are also other industries such as
industry, including Vinfast, Vinsmart. Commercial and service areas include Vinhomes, Vinmec,
and Vinschool.
- Unlike the other 3 types, social enterprises like VBPO operate as a profit-making unit, but besides
that, they also create conditions for people with disabilities to have stable jobs. Promote society,
change the old definition of the less fortunate.

2. Evalute the impact and importance of small businesses on the economy

2.1 The impact of the chosen small business in Vietnam
In recent years, Vietnam's business environment has undergone fundamental changes, creating
favorable conditions for small and medium enterprises (SMEs) to develop. Up to now, SMEs account for
96.7% of the total number of enterprises in the country. The growth in both the number, the scale of
operations and the internal resources of the SME sector has had a great impact, making an important
contribution to Vietnam's socio-economic development and international integration process. Statistics
in 2015 show that SMEs account for more than 96% of all businesses, creating between 50% and 85% of
total jobs in ASEAN countries. SMEs also contribute from 30% to 53% of total GDP income and produce
19% - 31% of total exports to international markets (Lam, 2016).
 Figure 1- Portion of SMEs in VietNam in 2018. Source: General Statistics Office in Vietnam (2018)

Vietnam with GDP growth from SMEs

In Vietnam, SMEs currently account for 97% of the total number of enterprises operating in Vietnam,
contributing up to 45% of GDP, 31% of total budget revenue and attracting more than 5 million
employees. At the same time, the SME sector is very effective in mobilizing social resources for
development investment and contributing to the state budget, promoting national economic
development, especially in the economic sector. activities of improvement, innovation and application in
production and business... create dynamism and competition for the economy. However, compared with
other countries in the region and the world, SMEs in Vietnam still face many difficulties in order to
compete in development, access to capital, expand production and business, etc. realizing its full
potential. SMEs are an important part of the private sector and account for a large proportion of the
Vietnamese business community. Currently, the whole country has about 541,753 SMEs operating in the
economy, with a total registered capital of about 130 billion USD, accounting for about one third of the
total registered capital of enterprises. Every year, SMEs contribute about 40% of GDP, pay 30% to the
state budget, contribute 33% of industrial output value, 30% of export goods value and attract nearly
60% of employees… Although The number of SMEs is large, but the size of small and micro enterprises
accounts for a very large proportion, the number of medium-sized enterprises accounts for only 1.6% of
the total number of SMEs (Phuong, 2019).

Therefore, SMEs contribute significantly to the economic market, boosting GDP growth for the country's
economy

SMEs contribute to Vietnam's startup ecosystem

Vietnam has experienced a prolonged period of economic growth since its transition to a market
economy through Doi Moi reforms in the 1980s. Vietnam is now a middle-income country and is a
middle-income country. one of the most dynamic emerging economies in Southeast Asia. Recently, the
growth of the emerging middle market in Vietnam has attracted significant investment and the country
has entered the high-tech era. Groups of young entrepreneurs are aspiring to disrupt nearly all sectors of
the economy with new technologies, fueled by TV shows like Shark Tank and critical government
support. government for small and medium enterprises. In contrast, 25% of SMEs are high growth, with
growth rates above 20% per year, with many growing to employ more than 20 employees. Women-
owned companies – with ownership greater than 50% by women – make up about 53% of all small
businesses and 44% of medium enterprises, higher than Cambodia, Laos and Myanmar. According to the
Center for Research and Mapping of the Global Startup Ecosystem, which has just announced the
ranking of startup ecosystem of countries in 2020. As a result, Vietnam has jumped 13 places to 59th
place in the world. , towards the position of the leading startup hub in Southeast Asia. By city alone,
Hanoi capital has entered the top 200 startup cities globally after jumping 33 places to 196th and HCMC
at 225th (Esmart, 2020).

The data shows that SMEs play an important role in Vietnam's startup ecosystem, which has become
extremely vibrant, constantly attracting new investments from abroad. This can be seen as a good sign
and a promising opportunity not only for startups in Vietnam, but also contributes to promoting the
economy in general to create breakthroughs in the near future.

Small and medium enterprises create jobs for workers, contributing to reducing the unemployment
rate.

According to the report (Linh, 2017) between 2003 and 2016, the number of full-time employees in
small and medium-sized enterprises (SMEs) nearly doubled, and the share of total SME employment
increased from 31% to 35%. Over the past year, however, their contribution to total employment has
stagnated. During the period 2015 – 2016, the contribution of SMEs to total employment remained
almost unchanged, from 34.6% to 34.8%.

In developing economies like Vietnam, SMEs account for 52% of total employment, compared with 34%
in emerging economies and 41% in developed economies.

It can be seen that SMEs engage in business in all sectors and sectors of the economy, providing a wide
range of goods and ensuring employment for a wide range of workers in different sectors. .

• The impact of the chosen small business in Vietnam

Gia Tuan Mostel is one of a number of local hotels that cater to a wide range of audiences in the city as
well as tourists. With the quality of service and room service is always upgraded and improved to suit all
needs of customers. Although this is a newly opened hotel with a small scale and limited number of
services, Gia Tuan Mostel has constantly improved in service and room quality to ensure each customer's
needs, and give customers the best experience. From there, promote the capacity and develop the hotel
and contribute to the local economy. Small businesses contribute to economic growth by creating their
own values, and they always facilitate individuals who have not yet found work. They train and guide the
staff to become more proficient and professional. Because of their small size, they only have 2-5
employees, but this is also a good point for small businesses to control their quality. Despite their
meager contributions, Gia Tuan Mostel and many other small businesses are the mainstay and perhaps
the biggest contributor to the Vietnamese economy. Within the same industry, these small businesses
can also create competition. Another aspect that contributes to the country's strong and diverse
economy is good competition.

2.2. The importance of small businessed and business start-ups to the growth of th social
economy
a) Definition of social economy

The social economy is a system that employs private resources for the benefit of the community, both
financially and in terms of time commitment. Social companies, personal networks, global and local
connection advocates, and formal non-profit or non-government organizations are all examples of these
resources (Grantcraft, 2014).

b) How small business and starups contribute to the development of the social economy

With VBPO

In 2010, Mr. Huy moved to Da Nang to start his own business and established VBPO Company
specializing in data processing and providing comprehensive service solutions for businesses (BPO field).
The company started with the simplest field of data entry and processing with only 15 employees.
Creating jobs for many people with disabilities. During its growth, from being a small company with 15
employees to becoming a large technology company with 5 branches across the country and Japan , Tran
Manh Huy's VBPO still carries out the mission of maximum support for the disadvantaged. At VBPO, 30%
of employees are underdogs. Successful with VBPO, Mr. Huy entered the garment industry and produced
fruit juice for export only to "create more jobs for people with disabilities" Up to now, VBPO has become
the leading company in supplying providing BPO services in Vietnam, especially for Japanese customers
(BaoTienPhong, 2021).

It can be seen that VBPO has brought great significance to economic development in Vietnam. Not only
creating conditions for people with disabilities but also promoting the Vietnamese economy.

With Gia Tuan Mostel

Gia Tuan Mostel is just a small-scale business hotel in Da Nang city, but it brings a lot of benefits to the
people. Typically, creating jobs for dozens of workers - employees here are not only paid but also trained
to create jobs, as well as create joy for others. Not only that, the hotel also invests more in the quality of
rooms and essential services to ensure customer service.

In addition, the hotel always upholds the protection of customers' health, always ensuring that the items
are always renewed to ensure the health of customers.

IV. CONCLUSION
In general, through this report has made many real differences in the impact of businesses as well as
small businesses on the economy. Through examples, the definition of business types has been clearly
explained. The impact of businesses on the country's economy. Thereby, it is clear that the small
business affects not only the local but also the national region. Through this report, it is possible to have
a better view of small businesses and startups to apply the knowledge to have a foundation for
development at work.

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