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 19/08/2021 Date received (1st submission) 19/08/2021

Re-submission date 22/09/2021 Date received (2nd submission) 22/09/2021

Student name Đang Thi Anh Hong Student ID GBD191234

Class GBD0805B Assessor name Le Xuan Nguyen

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Contents
I. Introduction ................................................................................................................................................. 4
II. Brief introduction about the chosen firm .................................................................................................. 4
III. Explore and illustrate the range of different entrepreneurship ventures ................................................ 6
1. Different types of entrepreneurial ventures .......................................................................................... 6
a. Small business ..................................................................................................................................... 6
b. Scalable startup ................................................................................................................................... 6
c. High growth firms ................................................................................................................................ 6
d. Social enterprise.................................................................................................................................. 7
2. The similarities and differences between entrepreneurial ventures ..................................................... 8
a. Similarities among 4 types of entrepreneurial ventures .................................................................... 8
b. Differences among 4 types of entrepreneurial ventures. .................................................................. 8
IV. Evaluate the impact and importance of small businesses on the economy .......................................... 12
1. The impact of the chosen small businesses on the economy .............................................................. 12
2. The importance of small businesses and business start-ups to the growth of the social economy.... 13
V. Conclusion ................................................................................................................................................ 14
VI. References ............................................................................................................................................... 14

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I. Introduction
In the context of today's significant integration with the global economy, entrepreneurship is the most
issue in Vietnam, as it is in many other nations. Starting a firm is expected to provide economic growth,
contribute positively to socio-economic development, and fulfil society's growing and diversified
demands. Taking advantage of the occasion, I wrote a report in the shape of a professional business
brochure to encourage and promote entrepreneurship among young adults. First at all, who are the
entrepreneurs?

In the article, “Entrepreneur,” Adam Hayes claimed that an entrepreneur is a person who starts a new
firm and bears most of the risks while reaping the majority of the benefits. He also explained that
entrepreneurship refers to the process of starting a business. The entrepreneur is frequently portrayed
as a pioneer, a provider of novel ideas, products, services, and/or business processes (Adam, 2021).

II. Brief introduction about the chosen firm

Small business: Ibasho – coffee and hostel

Scalable startup: The coffee house

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Corporation entrepreneur : Shopee

Social enterprise: Gramee Bank

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III. Explore and illustrate the range of different entrepreneurship ventures
1. Different types of entrepreneurial ventures
Not every entrepreneur is the same, and not every entrepreneur has the same objectives. In this part, I
will introduce 4 main types of entrepreneurs: small business, scalable startup, high growth firms, social
enterprise.

a. Small business
A small business is any firm, restaurant, or retail store that is started by a single person with no plans to
expand into a chain, franchise, or conglomerate. For example, founding a single grocery store qualifies as
a small business; however, establishing a countrywide supermarket chain does not. Small company
owners typically put their own money into their businesses to get them off the ground, and they only
profit if the firm succeeds (Northeastern University, 2020).

Take Ibasho – coffee as a example. Ibasho was established in April 2019 with a combined model of
coffee and homestay. After 3 years of establishment, Ibasho has opened 2 branches in Da Nang: Ibasho
coffee 124 - 126 Yen Khe 1, Thanh Khe and Ibasho Coffee and Homestay - 65 An Trung Dong 7. With
minimalist space, the highlight of plants verdant as well as gentle tone and aroma of coffee, Ibasho is set
to attract a large number of young people and photographers, KOLs, travel bloggers. Besides, Ibasho
homestay is also highly rated and commented on Da Nang tourism forums because of its modern and
beautiful room design.

b. Scalable startup
Scalable startups start off modest, often as simply the germs of an idea. This germ is then fostered and
developed until it becomes something considerably larger, usually with the help of outside investors.
And then, they scale incredibly quickly, and this focus on growth and rapid scale differentiates them
from small businesses (Jill McKnight, 2019).

The coffee house is the good example. The Coffee House is a chain of coffee shops in Vietnam. This is a
successful example of a Vietnamese start-up in the competitive coffee chain market against the
encroachment of foreign investors. In August 2014, the coffee chain The Coffee House was officially
launched and continuously impressed with its rapid growth rate. From the first store at 86-88 Cao Thang.
Up to now, the coffee shop chain The Coffee House has been present in 6 major cities across the country
(Ho Chi Minh City, Hanoi, Da Nang, Bien Hoa, Hai Phong, Vung Tau) (Ipos.vn, 2017).

c. High growth firms

These entrepreneurial firms place a premium on long-term innovation, introducing new items that are
variations of their main offerings. To satisfy difficult client needs and technological developments, these
entrepreneurial firms must conduct ongoing research and development of new goods. The high growth
firm continuously introduce innovations and are easily identified by their investments in R&D.

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For example, Shopee is a subsidiary of Sea Group and was established in Singapore in 2015. Shopee is
the main e-commerce platform in Southeast Asia and Taiwan, providing convenience to Greater
Southeast Asians. After 6 years of establish and development, Shopee has since expanded to Malaysia,
Thailand, Taiwan, Indonesia, Vietnam, and the Philippines. It's a platform designed specifically for the
area, offering customers a simple, safe, and quick online shopping experience, as well as robust payment
and logistical assistance (Sea.com, 2021).

d. Social enterprise
The objective of social entrepreneurship is to help society and humanity as a whole. Their products and
services are geared on assisting communities or the environment. They are motivated by a desire to
assist the world around them rather than by a desire to make a profit (Adam, 2021).

Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and
created a banking system based on mutual trust, accountability, participation, and creativity. GB
provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a
cost-effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-
economic conditions of the poor who have been kept outside the banking orbit on the ground that they
are poor and hence not bankable.

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 2. The similarities and differences between entrepreneurial ventures
a. Similarities among 4 types of entrepreneurial ventures
Looking for chances to grow and learn new things to prepare the path for company success is a common thread that runs across all
four types of entrepreneurial enterprises. They are more likely to examine any conceivable opportunity that comes their way and
use it to grow their firm. It enables individuals to persevere in the face of adversity and overcome hurdles. Another thing that four
different sorts of business endeavors have in common is inventiveness. They have made ground-breaking discoveries and made
money because of their innovative thinking. Finally, they recognize the need of innovation in their quest for commercial success. To
fulfil these market needs, they may look for new possibilities in the market or improve current chances into a superior product or
service. They are all attempting to expand their firm to a greater degree of success, which will aid in the long-term development of
the economy; they are also creating employment in society and inventing new methods of doing things (Nuwan, 2020).

b. Differences among 4 types of entrepreneurial ventures.

Small business Scalable startup High growth firm Social enterprise

Isbasho coffee The coffee house Shopee Grameen bank

In a market with lots of
small businesses selling to
large numbers of
consumers, prices will
generally be low to try to
attract customers,
Level of
especially if each firm is
competition
selling a similar product.
(Porter’s Five
Often these firms will
forces)
have to compete through
advertising, high-quality
service and convenient
locations.
Take Isbasho as an
example. This small
Competing priorities can
lead to a lack of focus,
which will eventually kill
the startup. Founders who
succeed has the ability to
prioritize and stay focused
on solving their target
customers' problems.
Therefore, the competitive
strategy of this type of
entrepreneur focuses on
analyzing the market and
selecting a group of
potential customers. They
build loyal customers and
The competitive
environment of high-
growth businesses is not
an issue; the company is
simply concerned with
how to increase the quality
of existing goods and
develop new ones.
Typically, they are
uninterested in competing
with other firms.
Shopee has built the
highest brand awareness
among e-commerce
platforms. Meanwhile,
Because the majority of
social businesses spend
their capital on bringing
benefits to society,
competition in the market
is nearly nonexistent. Each
social enterprise has its
own values, and their
main goal is not
necessarily profit.
Grameen Bank is
organized differently from
the traditional banking
model. Most of Grameen
Bank's customers are

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 business has coped with prioritize features for
the highly competitive growth.
market with modern Take The coffee house as
decor and location in the an example. The coffee
center of the city. This house when entering the
business marketed their F&B market full of
business through social difficulties, they did not
networking sites that show any hesitation, but
appealed to young they extremely understand
people. insight customers (Ipos.vn,
2017). The coffee house
has taken service as the
focus to quickly dominate
the market and market
share. This coffee brand
was born not only as a
coffee shop but also as a
place to meet friends, an
ideal workplace, a great
space for rest and life
experience.
Most of small business To capture growth
operate on a small scale opportunities for
for years, often serving a businesses, startups tend
Change and local community and to change soft factors in
increased generating just enough response to changes. They
performance profit to take care of build a strong staff, train
(Mc Kinsey’s company owners. As a with highly specialized
7S model) result, creating strategies knowledge. In addition,
to be able to survive in they must accurately
the market for a long time determine the core value
is always a top priority for that the business brings.
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competitors have to rely
on visits from advertising,
SEO. This explains why the
Shopee website is still
growing
A high growth
entrepreneur aims to
succeed in the business
with a futuristic view. They
focus on long term
planning and survival and
has strong business
strategies to expand.
Take Shopee as an
example. Firstly, Shopee
has a clear departmental
women and low-income
people. Borrowers from
Grameen Bank must have
a certain lower income
level. Grameen bank
operates on a special
model and has led
developed countries and
transnational
organizations to adopt
that model and help the
poor around the world
(Grameen bank, 2021).
That social service
providers, social activists,
and social entrepreneurs
will often adapt one
another’s strategies and
develop hybrid models.
There are two types of
social venture. The first
type of social venture is
social service provision. A
second class of social
 them. At the coffee house, their structure from the very venture is social activism
When the new Ibasho share value is people. For beginning of its (Roger L. Margin and Sally
brand is known to young customers to have a good construction. Second, the Osberg, 2017).
people, this business experience, they have strategies are carefully Grameen bank operates
focuses on improving the created a good experience considered through many like the model of social
decoration style of the for employees such as factors such as market service provision.
shop and enhancing the building a development analysis, data, and Grameen Bank's successful
share value for roadmap for employees, experience from previous model follows the
customers. Massive training knowledge about competitors. Third, principle of working for
advertising is a way to the F&B industry, so that because the parent the poor, profits earned
increase popularity in the each individual can company has been very will continue to be re-
industry, but the cost is develop their career successful in technology circulated and transferred
very high. Therefore, through the environment which leads to building a to the poor. To be able to
small business Ibasho professional. business and operating reduce the cost of small
builds marketing strategy system not too difficult. loans, Grameen Bank's
through customer Fourth, Shopee’s model needs to be large
reviews, company employees are all well- enough, then the
fanpage, and social trained in professional microfinance institution
networking groups. knowledge as well as will gain efficiency thanks
information technology to its size, the average
Knowledge (Sea Inc, cost will be reduced.
2021). gradually.
Small firms, overall, are A startup looking to find High-growth businesses The social entrepreneur
unable to implement all and execute on their prioritize internal aims for value in the form
of the aspects of Porter’s business model, but improvement above of large-scale,
Value creation
value chain model. they're also looking to do competition. They keep an transformational benefit
opportunity
Because it sometimes just so quickly—and in a way eye on their competition, that accrues either to a
(Porter’s value
works with external that significantly impacts but the primary objective significant segment of
chain)
logistics and operations, or disrupts the current is to continually improve society or to society at
they concentrate on core market. Therefore, the value of their products large. The social
activities. Because of the startups must build a and services and to exceed entrepreneur’s value
high cost, supporting strategy and plan that consumer expectations. proposition targets an

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activities such as R&D and
production are not
possible. This is come to
fact that small firms must
cut expenses.
This company stops at
primary activities in
Ibasho. These activities
include the importation of
raw materials into ibasho
from small suppliers
(inbound logistics), the
process of preparing
products for customers is
all trained by trained staff
(operation), and finally,
the space of the shop, the
music, the tables and
chairs, and the attitude of
the staff are the activities
that ibasho has carried
out in its service activities.
shows continuous
innovation, leading to
follow-on complementary
solutions well into the
future to attract
investment sources.
The coffee house is well-
invested from technology,
processes, products,
services and solid financial
resources. In addition to
the idea and ability to
execute the project, The
Coffee House also has a
proactive financial plan
and is always ready to call
for capital if necessary. But
above all, it is an endless
source of inspiration and a
constant effort to bring a
great experience to
customers.
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Because R&D and technical underserved, neglected, or
development are involved highly disadvantaged
in high-growth firms, they population that lacks the
will prioritize support financial means or political
efforts. The primary clout to achieve the
activity will then be transformative benefit on
implemented. Always its own. Therefore, social
focused on technological entrepreneurs have a
and service development strict working process to
in order to generate new bring the most fairness to
goods and stay up with the society.
times in order to dominate Loan procedures at
the market. Grameen bank do not
At shopee, they decided to follow the principle of
pioneer in building a mortgaging assets, but
mobile platform to instead are a system of
penetrate the market - business rules, regulations
Southeast Asia, where the of group members,
rate of mobile usage was collective responsibility of
high at that time. And borrowers, have a strict
then, Shopee was very control system, statistical
smart when every time reports and management.
they attacked a market,
they customized their
application to suit that
market.
IV. Evaluate the impact and importance of small businesses on the
economy
1. The impact of the chosen small businesses on the economy
According to fast work statistics, in Vietnam, micro enterprises accounted for 66.84%, small enterprises
accounted for 29%, medium enterprises accounted for 2.16% and large enterprises only accounted for
2% of the enterprise structure in Vietnam. Small and medium businesses frequently concentrate on
areas that strongly impact people's lives, such as items with strong purchasing power and a big
market. Furthermore, because small and medium businesses have little cash, start-up and scale-up, as
well as technical and equipment innovation, are mostly accomplished using a combination of personal
resources and informal credit. Small and medium businesses employ a limited number of people, and
the majority of their employees have varying levels of experience.

Figure 1- Vietnamese business structure.

SMEs are simple to establish, and the managing equipment is small, active, and adaptable to market
changes. This allows firms to swiftly notice changes in market demand, alter company strategies, and
enhance dynamism and sensitivity in product selection. It is simple for internal companies to discuss and
agree to make modifications as market demands change or when challenges arise. SME's move
production and business lines to swiftly adapt to changing market requirements, overcome challenges,
and achieve high economic efficiency in a short period of time. Thanks to such characteristics, small and
medium enterprises have provided society with a considerable amount of goods in terms of quality,
quantity, and variety.

Contributing to the speed and scale of economic growth. SMEs directly provide value to society by
producing a wide range of products and items to fulfill societal needs. This is an essential fact that not
only demonstrates that SMEs can produce a wide range of goods and services. If these items and things
are of exceptional quality and have a lot of added value, they will almost definitely contribute to the
country's economic success by producing a lot of economic value. Currently, the whole country has

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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 exported goods value and attract nearly 60% of employees, so on (Chu Thanh Hai, 2020).

Contribute significantly to the development of jobs for employees. For rural regions, this is a critical
function. SMEs provide a foundation for organizing economic growth in a contemporary, multi-sectoral,
and large-scale manner. This establishes a foundation for the development of several workplaces within
a province or region, therefore directly lowering worker unemployment. On average, each year (in the
period 2016-2017), the SME sector attracts the most workers with 8.69 million employees (accounting
for 60.9% of the total employment of the entire enterprise sector in the economy). (Chu Thanh Hai,
2020).

SMEs are simple to establish, and the managing equipment is small, active, and adaptable to market
changes. At the same time, because of their small size and flexibility, businesses can swiftly identify
changes in market demand, alter company directions, and increase dynamism and selection acumen.
Small and medium businesses can offer a wide range of items in terms of quantity and quality because of
these characteristics. As a result, other firms' monopolies in the market are reduced, pushing
enterprises to accept competition and continually improve in order to survive and develop.

The impact of Ibasho: In terms of economic diversity, the store's area isn't very vast, but it nevertheless
seems spacious owing to the minimalist design and modern and elegant wooden furnishings. Ibasho's
drink and cake selection is extensive and rather tasty. The price of Ibasho Cafe, in instance, is very
reasonable, ranging from 15,000 to 50,000 VND. With a location in the centre of the city, the pricing
point is reasonable when compared to other cafes. When it comes to job creation, Ibasho has helped a
lot of young people in Da Nang, especially those who are freshmen or older. This helps students practice
their skills, earn extra income in their free time as well as become familiar with the working
environment. In addition, when working at ibasho, employees also enjoy preferential regimes

2. The importance of small businesses and business start-ups to the growth of the social
economy
❖ Definition of social economic.

The social economy, which is different from the private and public sectors in mixed capitalist countries, is
often regarded as the third sector. The social economy is centered on cooperative, non-profit, and
volunteer activities that take place within communities, across national economies, and worldwide,
rather than paid activities. It is also known as the nonprofit sector or the social economy, and it has a
lengthy history that parallels the emergence of capitalist economies (Griffiths, A. and Wall, S, 2011).

❖ How Grameen bank social enterprise contribute to the growth of the social economy

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Grameen bank is a system of solidarity loan where a group of women take micro credits against a small
business plan. Members encourage one another to repay the loan regularly. Grameen Bank impacts lives
of more than 40 million people by giving credits to almost 8 million people. The loan recovery rate is
higher than 98 percent. 100 percent of loans are financed from the Bank’s deposits, making it entirely
independent of external support. Grameen Bank has more than 98 percent loan recovery rate and 100
percent of the loan is financed from Bank’s own deposit created its 8.349 million members, 97 percent of
whom are women (Grameen bank).

V. Conclusion
Finally, the paper outlines four different sorts of entrepreneurial ventures and provides examples for
each. Additionally, it discusses, analyzes, and defines the similarities and contrasts between
entrepreneurial ventures in areas such as level of competition in the industry, change and increased
performance, value creation opportunity. It also provides data to demonstrate the impact of small
companies on the Vietnamese economy. Furthermore, the study gathers and evaluates the significance
of small companies and startups in the growth of the social economy.

VI. References
Zahra, S.A., Wright, M. and Abdelgawad, S.G, 2014. Contextualization and the advancement of
entrepreneurship research. International Small Business Journal, 32(5), pp. 479-500.

GRIFFITHS, A. and WALL, S, 2011. Economics for Business and Management. 3rd ed. Harlow: Pearson

Roger, M and Sally, O (2007). Social entrepreneur: the case for definition. Stanford Social Innovation
Journal, Social issue, page 3s

Asa, D and Lois, S (2010). Innovative entrepreneurship policy: linking innovation and entrepreneurship in
a European. Annal of innovation and entrepreneurship journal, page 7-8s

McKnight, J (2019). 5 defining traits of startup [online]. Legalvision.com. Available at:

https://legalvision.com.au/5-common-traits-of-startups/ [accessed 3/8/2021]

Adam, H (2021). Entrepreneur. [online]. Investopedia. Available at:

https://www.investopedia.com/terms/e/entrepreneur.asp [ access 2/8/2021]

Northeastern University _ D’ Amore – Mc Kim school of business, (2020). 4 types of entrepreneurship: tip
for women to success in business. [online]. Available at:
https://onlinebusiness.northeastern.edu/blog/types-of-entrepreneurship/ [ accessed 2/8/2021 ]

Money talk with tiff, (2020). Type of entrepreneurial businesses. [online]. Available at:
https://www.moneytalkwitht.com/blog/types-of-entrepreneurial-businesses [ Accessed 7/8/2021]

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Vietdata, (2017). Thuong mai dien tu Viet Nam 2017. [online]. Available at :
https://www.vietdata.vn/thuong-mai-dien-tu-viet-nam-2017-1152460784 [ Accessed 10/8/2021]

Hai, C (2020). Phat trien doanh nghiep nho va vua. Vass.gov.vn. [online]. Available at:
https://vass.gov.vn/nghien-cuu-khoa-hoc-xa-hoi-va-nhan-van/Phat-trien-doanh-nghiep-nho-va-vua-96
[Accessed 12/8/2021]

Ipos.vn, (2017). Bai hoc kinh doanh tu the coffee house. [online]. Available at : https://ipos.vn/bai-hoc-
kinh-doanh-tu-the-coffee-house/ [accessed 13/8/2021]

Sea.com, (2021). Shopee – shop online anywhere, anytime. [online]. Available at:
https://www.sea.com/products/shopee [accessed 13/8/2021]

Grameen bank, (2021). Grameen introduction. [online]. Available at:

https://grameenbank.org/introduction/ [accessed 13/8/2021]

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