You are on page 1of 31

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 13/08/2022 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Phạm Trần Thu Trà Student ID GBD201515

Class GBD0907 Assessor name Võ Công Nghĩa

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:

Grading grid
P1 P2 P3 P4 M1 M2 D1 D2
rSummative Feedbacks: rResubmission Feedbacks:

Grade: Assessor Signature: Date:


Internal Verifier’s Comments:

Signature & Date:


A
s a small business consultant, the researcher needs to compile a report that aims
to promote and build entrepreneurship among young people. This report will
provide definitions and examples of four types of venture businesses, as well as
an analysis of the selected business's internal and external factors. Furthermore, this
report demonstrates the local economic impact of micro and small businesses, as well as
the importance of small businesses and startups in the growth of the social economy. The
researcher gathers information from reliable sources such as books, newspapers, and the
internet.
Small
A small enterprise is one that satisfies all
requirements, is founded, organized, and
operated in accordance with the law on

Business enterprises, has a small operation, a small staff,


and a small sales volume (Vu, 2022).

Small businesses are decided in


accordance with the following
standards, as stated in Clause 2, Article 5
of Decree No. 80/2021/ND-CP directing
the implementation of the Law
supporting small and medium-sized
enterprises:
• Small enterprises in the fields of • Small enterprises in the field of
agriculture, forestry and fishery; commerce and services: The average
Industry and construction: The number of employees participating in
average number of employees social insurance per year is not more
participating in social insurance per than 50 people and the total revenue
year is not more than 100 people of the year is not more than 100
and the total revenue of the year is billion VND or the total capital of the
not more than 50 billion VND or the year is not more than 50 billions dong
total capital of the year is not more (Vu, 2022).
than 20 billion VND (Vu, 2022).
Figure 1. BonPas logo

BonPas is a Da Nang-based cake and coffee shop chain founded in 2015 by Dong Tien Co.,
Ltd (DOTICOM), formerly known as Dong Tien cake shop, which has a long history dating
back to 1963. BonPas is proud to be the first model in Da Nang will bring you interesting
experiences with fresh and attractive flavors from traditional bread products, soft breads,
pastries, sandwiches, pizzas and cakes and many kinds of attractive drink. BonPas Bakery
& Coffee currently has 5 stores 59 Le Duan, 35 - 41 Nguyen Van Linh, 143 Dien Bien Phu,
64 Ham Nghi, 78 Le Thanh Nghi and 02 Dien Bien Phu. Currently, BonPas has a total of 30
employees (except part-time employees) who are covered by social insurance
(BonPasBakery, 2020). As a business in the commercial and service sector, with a turnover
of no more than VND 100 billion per year, BonPas qualifies as a small business in Vietnam.
operated as a B2C model online book

Scalable
platform. Later, the B2B2C paradigm was
used to guide Tiki's development.

Start-ups
Underwent a shift after 7 years of
operation when it switched to a
Marketplace model, luring more vendors

A scalable startup is one that aspires to be to join the website system and growing to

a profitable, extremely high-growth dozens of categories with more than

company but is still in its early stages. This 300,000 products for sale.

startup model necessitates outside capital At first, Tiki was just an online book

and risk in order to generate demand and retailer. However, Mr. Soichi Tajima, CEO

scale the business. The primary goal of and Chairman of CyberAgent Ventures

scalable startups is to compete with and, Inc., made the decision to invest in Tiki in

if possible, displace larger, more March 2012. CyberAgent Ventures Inc will

successful companies (Bcombinator, own a 20% share in Tiki after this funding

2021). investment. Tiki subsequently developed


into an e-commerce platform thanks to
this investment. Between 2013 and 2014,
Tiki started beginning to dominate
Vietnam's quickly expanding e-commerce
business. In addition to the successes Tiki
Figure 2. TIKI Logo has had over the years, Tiki deserves to be

Tiki.vn is a top retail e-commerce site that regarded as a scalable startup

offers all clients. Tiki is an online retailer (doanhnghiep.quocgiakhoinghiep.vn,

that was founded in 2010 in Vietnam amid 2018).

the second wave of technology. Tiki first


High-Growth Firm
High-Growth Firms (HGFs) are businesses
that outperform other businesses,
displaying stronger profitability, higher
sales from new product innovation, and
lower interest expenses as compared to Figure 3. Amazon Logo

other companies in the same industry or


to the overall economy (TheWorldBank, Amazon.com is a multinational American

2018) . According to the OECD, all technology company with interests in e-

businesses with average annualized commerce, cloud computing, digital

growth of more than 20% over a three- streaming, and artificial intelligence

year period and with ten or more (vnexpress.net, 2020). Although only 28

employees at the start of the observation years old, Amazon has become one of the

period (Audretsch, 2012). five US technology giants. Entered the top


100 fastest growing enterprises (ranked
30th) of Fortune. From the figure below, it
can be seen that as of October 28, 2021,
Amazon has achieved a 3-year annual
revenue growth rate of 28% (Fortune,
2021). With outstanding growth ability,
Amazon is considered a high-growth
business.
Figure 4. Revenue 3 Yr Growth Rank of Amazon (Fortune, 2021)
Social Enterprise
Social enterprises are companies that Established in 1999, KOTO was officially
prioritize the interests of people and the licensed as a Social Enterprise in 2016.
environment over shareholder profit. This is not only of great significance to
These businesses are motivated by a KOTO itself, but it is also an important
social/environmental mission and reinvest milestone in the development of the
profits in order to effect positive social Vietnamese social enterprise
change (socialenterprisemark.org.uk, community (CSIP, 2016). KOTO is a non-
2020). According to Article 10 of the profit social enterprise that empowers
Enterprise Law 2020, which lays out the at-risk and disadvantaged youth in
requirements, rights, and obligations, social Vietnam through a comprehensive
businesses must utilize at least 51% of their hospitality training program (KOTO,
total annual after-tax income to reinvest in 2022). Not only vocational training
order to achieve its stated goals including: cooking, service skills,
(thuvienphapluat.vn, 2021). restaurant and hotel management,
KOTO also helps students with life
skills, communication skills, learning
foreign languages... Up to now, with
Motto "Know One, Teach One" - KOTO
has helped and changed the lives of
more than a thousand street children in
Figure 5. KOTO Logo difficult circumstances in Vietnam.
SIMILARITIES
Small businesses, scalable startups, high growth businesses, and social enterprises are
four popular types of entrepreneurial ventures today. Each has a distinct purpose and
mission. These types of business ventures will be influenced by the business environment,
both internal and external, resulting in differences. But besides that there will also be
similar aspects, such as:
- All of them were established and operated as legally recognized organizations that
complied with all applicable laws while conducting business.
- All types of business ventures build and try to develop their business, aiming for both
short-term and long-term goals.
DIFFERENCES
• Internal factors

Business Strategy

Social enterprises and small businesses have different competitive advantages, business
orientations and strategies. To increase revenue, small businesses will focus on
improving their goods and services. To set themselves apart from other companies
operating in the same industry, they are free to innovate and make their products
unique. Whereas, social enterprise is created to achieve social goals and uses the
revenue to reinvest for that purpose or for the community (BritishCouncil, 2016).

Small Business (BonPas) & Social On the other hand, KOTO - is a not-for-
Enterprise (KOTO) for example. profit social enterprise, they aim to bring
BonPas focuses on developing spiritual value and create job
bakery and coffee products with the opportunities to disadvantaged people in
desire to give customers a good Vietnam (KOTO, 2022). KOTO offers free
experience when coming to the store vocational classes, which shows that
(BonPas, 2021). This means that they KOTO is aimed at social purposes instead
expect to generate revenue from of profits.
customer preference for the brand.
Moreover, BonPas also wants to
create a strong position in the pastry
market.
Shared Values
For a scalable startup, their core value is to Scalable Startups (TIKI) & High-Growth
put first priority on novel, market- Firms (Amazon) for example. With three
changing ideas. Their innovative ideas are elements—balance, flexibility, and client
customer-oriented; they will benefit a orientation—Tiki builds a joyful people
specific group of people and have the resource while pursuing the core goal of
potential to change market behavior and "Ready to be different". The goal of Tiki is
outlook. to provide clients with everything they
High-growth businesses, on the other require while also helping them save time
hand, have been growing rapidly, have a and money. A strong technology
strong market presence, have many foundation is in particular the primary
customers, and generate enormous value that Tiki has always developed and
revenue year after year. Their core values fostered to accomplish its vision and goal
are concentrated on strengthening the (congthuong, 2021). On the other hand,
company's connection to the economy, the core value that Amazon wants to
capturing the market, and attempting to achieve is to make customers "obsessed"
become a global business (TheWorldBank, with them, rather than concentrating on
2018). rivals, they place more emphasis on their
enthusiasm for innovation, dedication to
operational excellence, and long-term
perspective. Amazon wants to be globally
dominant, they aspires to be the most
customer-focused firm on Earth, the best
employer on Earth, and the safest
workplace on Earth (comparably, 2022).
• External factors

Social factors
Small enterprises are those that have a excellent opportunities for small
small scale, a simple operating structure, a businesses to attract and retain
small number of employees, and are easy customers. Meanwhile, businesses with
to change when compared to other types high growth rates frequently develop and
of businesses. Small businesses typically operate on a large scale, have a diverse
provide a diverse range of products and customer base, and are even present in
services to a diverse set of customers and multiple countries (TheWorldBank, 2018).
market sectors. This type of business can This demonstrates that these companies
develop products and services based on must keep an eye on the views, customs,
demographic issues (PESTELANALYSIS, traditions, demographic trends, and other
2015). As a result, social factors such as social changes of a particular country or
population growth, age diversity, else their business activities and market
occupation, and individual needs provide position will be negatively affected.
For instance, BonPas recognizes that when developing the pastry market in Da
Vietnam in general and Da Nang in Nang.
particular is a country with a large and
youthful population, which is considered As for Amazon, they are aware of the
as one of the potential cake markets in the trends and behaviors of the younger
region. Moreover, these products are generation, which is enthusiastic about
mainly consumed in urban areas in Da online shopping. This rate has risen as a
Nang city, so the rapid development and result of easy internet access and mobile
urbanization speed of big cities is also one devices. Elderly people who are unable to
of the factors driving the demand. walk or prefer not to go out can also use
demand for cakes grows (thanhnien.vn, Amazon's online shopping service.
2016). In Vietnam, young people under Nowadays, online shopping has become a
the age of 30 always account for the pastime. Amazon can take advantage of
highest proportion and this is the this opportunity to reach an increasing
population that tends to use bakery number of people around the world
products more. BonPas was very smart (Farooq, 2019).
Competitive Rivalry
When a company first enters the market, For example, Tiki is an enterprise
competition is unavoidable. This operating in the field of e-commerce.
competition varies depending on the After more than 12 years since its
business venture. Multiple competitors in establishment, Tiki.vn is currently the top
the same industry, serving the same 2 e-commerce site in Vietnam and top 6 in
customer segments, product categories, Southeast Asia. This means that Tiki has to
and satisfying the same customer needs face stiff competition from other e-
will exist for scalable startups. In contrast, commerce sites such as Shopee, Lazada,
a social enterprise whose main goal is to and Sendo, etc... (Trang, 2022)
add value and solve a specific problem in Meanwhile, KOTO is focused on creating
the community will invest the profits in value for the community as a non-profit
social activities. As a result, this type of social organization, having a rival is
business has no competitors. essentially impossible (KOTO, 2022).
A
ccording to the Vietnam enterprises has been assessed as
Association of Small and significantly contributing to GDP per
Medium Enterprises, there are capita growth; adding actual added values
currently approximately to products; increasing economic output;
800,000 operating enterprises, of which and so on (moit.gov.vn, 2014). Specifically,
small and medium-sized enterprises every year, SMEs contribute 50% of the
account for 98 percent, but medium-sized country's GDP, 49% of the national
enterprises account for only 1.6 percent of economic growth rate, 30% of the state
the total number of SMEs (Long, 2022). budget, 31% of the total investment
This demonstrates that micro and small capital of the business community, and
businesses account for a significant attract nearly 60% of the total labor force
portion. Furthermore, the expansion and of the whole society (infographics.vn,
development of small, medium, and micro 2016).

Figure 6. Contribution of SMEs to economic growth


The existence and development of this Furthermore, SMEs help to promote
type of business is critical not only for innovation and creativity, find new
economic growth but also for social methods, and set transformation tasks
security, job creation, and the country's that are appropriate for the business
long-term development (moit.gov.vn, environment. The presence of this type of
2014). According to data from the General enterprise is critical to the development of
Statistics Office, SMEs employ nearly one a country's economy, and it will create a
million people, accounting for 49 percent dynamic and flexible economic structure
of the workforce nationwide. As a result, suitable for the market (TanThanhThinh,
we can see that SMEs play a critical role in 2022).
creating the majority of jobs in Vietnam,
meeting people's employment needs,
contributing to income generation, and
raising people's standard of living. Growth
in the number, scale of operations, and
internal resources of the SME sector has a
significant impact, contributing
significantly to the SME sector's
socioeconomic development and
international integration process in
Vietnam (Long, 2022).
Small businesses and start-ups play a very important role in the economic growth of many
countries or regions, including in developed and developing countries. The number of
firms and activities present throughout numerous industries and fields illustrates how
important small and newly created enterprises are as the spectrum of activities expands
as an essential component of every nation's economy.

Creativity and Innovation

Entrepreneurship is one of the most partnerships; and 87% for bringing value
important growth engines in any economy to society as a whole (Long, 2022).
around the world. Startups that want to
survive and grow must focus on becoming Small businesses and start-ups have
innovative businesses (Lê & Nguyễn, outstanding innovation initiatives, are
2022). risk-takers, and strive for growth (Lê &
In the context of Industry 4.0 taking place Nguyễn, 2022). Furthermore, small
strongly, technology and innovation will businesses, particularly startups, are the
soon be unleashed to create a productivity best place to put new inventions to the
boom and higher economic growth. test and the best mechanism for
Innovation also has positive effects, such commercializing new technologies and
as contributing up to 95% of the discoveries. Startups help to accelerate
economy's competitiveness; 91% for the the development of technology and the
green economy; 88% for new jobs; 86% for local economy (ICanfield, 2021).
Employment Rate

Small businesses and startups are popular of Vietnam's innovation startup


and expanding. Vietnam presently boasts ecosystem (mof.gov.vn, 2020).
over 3,000 inventive start-ups, which is Specifically, The SME sector, which
almost twice as many as was anticipated employed 8.69 million people in total in
at the end of 2015, according to statistics the years 2016–2017, attracted the most
from Echelon Magazine (Singapore) workers on average, making up 60.9% of
(about 1,800 businesses). Vietnam is all enterprise sector employment. Nearly
second in the world for having a 2.3 million new jobs were created in the
supportive attitude toward two years from 2017 to 2018 by the
entrepreneurship and first for number of newly founded SMEs (Chu,
entrepreneurship. Vietnamese people 2020). For example, Da Nang city has
(95%) are more likely than the average more than 16,000 SMEs, which make up
person in the world (77%) to have a good 96% of all enterprises in the region,
attitude toward entrepreneurship. contribute 45% of GDP, and employ over
Additionally, 96% of Vietnamese 60% of the city's workforce. He
respondents to the survey stated that they highlighted that Da Nang's SMEs, in
are totally at ease with locating and luring particular, have made significant
potential consumers. Vietnamese people, contributions to the country's economy by
who desire to be independent and fostering growth, raising incomes,
autonomous in their businesses, make up eradicating poverty, and creating jobs for
76% of those who wish to launch business. employees, and attract idle capital in the
The aforementioned statistics population and contribute to increasing
demonstrate the recent strong expansion capital flow in society (Đan, 2022).
I
n summary, businesses mentioned in the paper belong to different types of businesses
including small businesses, scalable startups, high-growth firms, and social enterprises.
The report also pointed out the impact of micro and small businesses as well as
startups for the development of the economy. At the same time, the report also highlights
the importance of small businesses and startups for socio-economic growth.
REFERENCES
Vu, L., 2022. Doanh nghiệp nhỏ có những khó khăn là gì trong bối cảnh hiện nay?.
[Online]
Available at: https://luatvietnam.vn/doanh-nghiep/doanh-nghiep-nho-co-nhung-kho-
khan-la-561-90776-article.html
[Accessed 3 8 2022].
BonPasBakery, 2020. Giới thiệu về BonPas. [Online]
Available at: http://bonpasbakery.com/gioi-thieu
[Accessed 3 8 2022].
Bcombinator, 2021. Four Types of Entrepreneurship. [Online]
Available at: https://www.bcombinator.com/four-types-of-entrepreneurship
[Accessed 3 8 2022].
doanhnghiep.quocgiakhoinghiep.vn, 2018. Thông Tin Doanh Nghiệp. [Online]
Available at:
https://doanhnghiep.quocgiakhoinghiep.vn/doanhnghiep/tiki/#:~:text=Tiki%20l%C3%A0
%20doanh%20nghi%E1%BB%87p%20kinh,nh%E1%BA%ADn%20di%E1%BB%87n%E2%80
%9D%20th%C6%B0%C6%A1ng%20hi%E1%BB%87u%20doanh
[Accessed 3 8 2022].
TheWorldBank, 2018. High-Growth Firms: Facts, Fiction, and Policy Options for Emerging
Economies. [Online]
Available at: https://www.worldbank.org/en/news/feature/2018/11/16/high-growth-
firms-facts-fiction-and-policy-options-for-emerging-economies
[Accessed 3 8 2022].
Audretsch, D. B., 2012. Determinants of High-Growth Entrepreneurship. [Online]
Available at: https://www.oecd.org/cfe/leed/Audretsch_determinants%20of%20high-
growth%20firms.pdf
[Accessed 3 8 2022].
vnexpress.net, 2020. Amazon.com,Inc.. [Online]
Available at: https://vnexpress.net/chu-de/amazon-com-inc-1976
[Accessed 3 8 2022].
Fortune, 2021. 100 Fastest-Growing Companies. [Online]
Available at: https://fortune.com/company/amazon-com/100-fastest-growing-
companies/
[Accessed 3 8 2022].
socialenterprisemark.org.uk, 2020. WHAT IS SOCIAL ENTERPRISE?. [Online]
Available at: https://www.socialenterprisemark.org.uk/what-is-social-enterprise/
[Accessed 3 8 2022].
thuvienphapluat.vn, 2021. Doanh nghiệp xã hội là gì? Doanh nghiệp xã hội có quyền và
nghĩa vụ như thế nào? Trách nhiệm của doanh nghiệp xã hội là gì?. [Online]
Available at: https://thuvienphapluat.vn/phap-luat/doanh-nghiep-xa-hoi-la-gi-doanh-
nghiep-xa-hoi-co-quyen-va-nghia-vu-nhu-the-nao-trach-nhiem-cua-doan-2957.html
[Accessed 3 8 2022].
CSIP, 2016. KOTO chính thức được công nhận là Doanh nghiệp xã hội đầu tiên tại Việt
Nam. [Online]
Available at: https://csip.vn/chi-tiet/koto-chinh-thuc-duoc-cong-nhan-la-doanh-nghiep-
xa-hoi-dau-tien-tai-viet-nam-150.html
[Accessed 3 8 2022].
KOTO, 2022. About KOTO. [Online]
Available at: https://www.koto.com.au/
[Accessed 3 8 2022].
BritishCouncil, 2016. Điển hình doanh nghiệp xã hội tại Việt Nam. [Online]
Available at: https://www.britishcouncil.vn/sites/default/files/sach-dien-hinh-doanh-
nghiep-xa-hoi-tai-viet-nam.pdf
[Accessed 4 8 2022].
BonPas, 2021. Giới thiệu về BonPas. [Online]
Available at: http://bonpasbakery.com/gioi-thieu
[Accessed 4 8 2022].
KOTO, 2022. KOTO. [Online]
Available at: https://www.koto.com.au/
[Accessed 4 8 2022].
congthuong, 2021. Tiki 2020: Giá trị lõi giúp doanh nghiệp vượt qua thời kỳ biến động.
[Online]
Available at: https://congthuong.vn/tiki-2020-gia-tri-loi-giup-doanh-nghiep-vuot-qua-
thoi-ky-bien-dong-150545.html
[Accessed 4 8 2022].
comparably, 2022. Amazon Mission, Vision & Values. [Online]
Available at: https://www.comparably.com/companies/amazon/mission
[Accessed 4 8 2022].
PESTELANALYSIS, 2015. Social Factors Affecting Business. [Online]
Available at: https://pestleanalysis.com/social-factors-affecting-business/
[Accessed 4 8 2022].
thanhnien.vn, 2016. Đong đầy hạnh phúc cùng BonPas. [Online]
Available at: https://thanhnien.vn/dong-day-hanh-phuc-cung-bonpas-post567177.html
[Accessed 4 8 2022].
Farooq, U., 2019. Pestle Analysis of Amazon. [Online]
Available at: https://www.marketingtutor.net/pestle-analysis-of-amazon/
[Accessed 4 8 2022].
T. T., 2022. Mô hình 5 áp lực cạnh tranh của Tiki – Unicorn tiếp theo của Việt Nam.
[Online]
Available at: https://marketingai.vn/mo-hinh-5-ap-luc-canh-tranh-cua-tiki-unicorn-tiep-
theo-cua-viet-nam/
[Accessed 4 8 2022].
Long, V., 2022. Doanh nghiệp nhỏ và vừa đóng góp lớn cho nền kinh tế. [Online]
Available at: https://laodong.vn/kinh-te/doanh-nghiep-nho-va-vua-dong-gop-lon-cho-
nen-kinh-te-1024647.ldo
[Accessed 5 8 2022].
moit.gov.vn, 2014. Thúc đẩy doanh nghiệp nhỏ, vừa và siêu nhỏ tiếp cận nguồn vốn
Thương mại. [Online]
Available at: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/thuc-day-doanh-nghiep-
nho-vua-va-sieu-nho-tiep-can-nguon-von.html
[Accessed 6 8 2022].
infographics.vn, 2016. Đóng góp của doanh nghiệp nhỏ và vừa vào tăng trưởng kinh tế.
[Online]
Available at: https://infographics.vn/dong-gop-cua-doanh-nghiep-nho-va-vua-vao-tang-
truong-kinh-te/5019.vna
[Accessed 10 8 2022].
mof.gov.vn, 2020. Phát triển doanh nghiệp khởi nghiệp sáng tạo. [Online]
Available at: https://mof.gov.vn/webcenter/portal/vclvcstc/pages_r/l/chi-tiet-
tin?dDocName=MOFUCM187734
[Accessed 10 8 2022].
Chu, H. T., 2020. Phát triển doanh nghiệp nhỏ và vừa ở Việt Nam hiện nay. [Online]
Available at: https://www.vass.gov.vn/nghien-cuu-khoa-hoc-xa-hoi-va-nhan-van/phat-
trien-doanh-nghiep-nho-va-vua-o-viet-nam-hien-nay-96
[Accessed 10 8 2022].
Đ. Q., 2022. Doanh nghiệp nhỏ và vừa: Động lực phát triển kinh tế của thành phố trong
tương lai. [Online]
Available at: https://danang.gov.vn/chinh-quyen/chi-
tiet?id=8061&_c=3&fbclid=IwAR2COkuuGaWyE9K9lhBISifS8xBTuPfhjhIL3HzR6r9WVauR_
1PZoEzyxc8
[Accessed 10 8 2022].
Lê, K. N. Q. & Nguyễn, T. N., 2022. Vai trò của đổi mới sáng tạo đối với doanh nghiệp khởi
nghiệp. [Online]
Available at: https://doanhnhansaigon.vn/hoi-clb/vai-tro-cua-doi-moi-sang-tao-doi-voi-
doanh-nghiep-khoi-nghiep-1109715.html
[Accessed 10 8 2022].
L. V., 2022. Đổi mới sáng tạo trong khu vực công thúc đẩy tăng trưởng đột phá. [Online]
Available at: https://laodong.vn/kinh-doanh/doi-moi-sang-tao-trong-khu-vuc-cong-thuc-
day-tang-truong-dot-pha-1076624.ldo
[Accessed 10 8 2022].
ICanfield, 2021. Startup là gì và tầm quan trọng đối với nền kinh tế. [Online]
Available at: https://icanfield.vn/tin-tuc/startup-la-gi-va-tam-quan-trong-doi-voi-nen-
kinh-te/
[Accessed 10 8 2022].

You might also like