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