In this comprehensive case study report titled "Unit 09 BTEC Level 5 Entrepreneurship and Small Business Management (ESBM) Assignment V5," we embark on an insightful exploration of the dynamic and ever-evolving landscape of entrepreneurship and small business management. This assignment offers a unique opportunity to delve into the multifaceted world of entrepreneurial ventures and their profound impact on economies. As an integral component of the HND program, this case study report serves as an invaluable educational resource, providing students with profound insights into the critical role of entrepreneurship and small businesses in driving economic growth and innovation. Our journey into entrepreneurship and small business management begins with a thorough assessment of their influence on economies at both the micro and macro levels. We examine authentic data to evaluate the contributions of micro and small businesses to economic development, emphasizing their role in creating jobs, fostering innovation, and stimulating local economies. Keywords such as "Entrepreneurship," "Small Business," and "Scalable Startup" underscore the significance of these enterprises in fueling economic growth and revitalizing communities. Furthermore, this case study report introduces students to the captivating stories of renowned entrepreneurs and visionaries who have made indelible marks on the entrepreneurial landscape. Figures like Steve Jobs, with his trailblazing innovations at Apple Inc., and Shiza Shahid, co-founder of the Malala Fund, serve as inspirational examples of how entrepreneurship can be a force for positive change. Their journeys from ideation to impactful ventures provide valuable lessons on innovation, leadership, and the transformative power of entrepreneurship. In addition to exploring the individual success stories, the assignment also delves into the essential principles and practices of entrepreneurship and small business management. It covers topics related to business planning, market analysis, financial management, and sustainable growth strategies, equipping students with the knowledge and skills needed to launch and manage their entrepreneurial ventures successfully. Moreover, this case study report underscores the significance of fostering an entrepreneurial mindset in today's business landscape. It emphasizes the importance of cultivating creativity, resilience, and adaptability—traits that are essential for aspiring entrepreneurs and small business owners. These attributes enable individuals to navigate the challenges of entrepreneurship, seize opportunities, and drive innovation in an ever-changing global marketplace. In conclusion, this case study report encapsulates a holistic exploration of entrepreneurship and small business management, shedding light on their profound influence on economies and societies. By seamlessly integrating essential topics such as "HND," "Case Study Report," "Presentation," "Management," "Business," "Entrepreneurship," "Small Business," "Scalable Startup," "Steve Jobs," "Shiza Shahid," and "Malala," we ensure that this report not only serves as an educational resource but also adheres to best SEO practices, making it readily discoverable and accessible to a diverse audience eager to unravel the captivating world of entrepreneurship and small business management in the context of economic growth, innovation, and the entrepreneurial spirit.
Contents
1. Types of Ventures: (P1, M1, D1)
1.1 Small Business Entrepreneurship:
1.2 Scalable Startup Entrepreneurship:
1.3 Large Company Entrepreneurship:
2. Similarities and Differences between Entrepreneurial ventures: (P2)
3. Impact of small businesses on the Economy: (P3, M2, D2)
4. Importance of Small Businesses to the Growth of Social Economy: (P4, M2, D2)
Task 2 - The Mindset of the Entrepreneur
1. Examples of Entrepreneurship:
3. Similarities and Difference:
4. Traits and Characteristics:
5. Experience and its Effects:
In this report we will have a look at “Entrepreneurial Ventures and Their Impact on Economyâ€. As a start we will examine the types of different ventures in entrepreneurship and will investigate that how important these are for a country’s economy. In this part we will analyze these different types to look up how these ventures impact the business economy and which is the best venture to start with. This analysis will get us to a point where we will be able to suggest the best ways to start the business. As a second part of this report we will analyze some statistical to explain how these micro and small businesses impact the economy of a country. To make it more authentic we will use the statistical data from most authentic and official sources. This data will then be analyzed using different techniques to assess how changes in these businesses may or may not impact on economy of a country at different levels.
Entrepreneurship does not have single type. To startup a new business one should have a sound knowledge about these types and should also be well aware about which type of entrepreneurship will benefit the most. Starting a new business is not quite simple like getting investors and launching the business starting with a team of experts. The startups always include a good sound analysis about different entrepreneurships and then the best one for that specific business. Here we will discuss the four types of entrepreneurial venture types and then will assess these types for different business types. At the end of this section you will be able to find out the best type to start your business with.
These days, a great number of entrepreneurs are small business all over the world. Most of the countries have about 50% of non-governmental workers working in these small businesses. As an example UK has 5.7 million small businesses and they make up about 99.7% of all the companies in UK whereas about 50% of the workers are working in these small businesses. This makes a huge number of small business ventures.
These businesses normally include grocery stores, hairdressers, consultants, travel agents, internet commerce storefronts, carpenters, plumbers, electricians, etc. Most of the owners of these businesses run their businesses on their own. They normally hire the employs from local area or family. Their basic goal is just to feed the family and get a small profit. They often fund their businesses from friends/family or small loans.
As these business are very small so they possess a very limited number of employs. These businesses normally grow very slowly and they need a real hard work, time and commitment to grow. These businesses only intend to fulfill the expenses of an owner’s family and employs to some extent. A person normally starts up with this venture if he/she has a very limited capital. These businesses require a small investment and provide a small profit for living.
The small business has very limited scope. They normally target a very small area of market. These businesses only get a little number of customers. They have very little chances of development and growth. Most of the businesses continue operating in the same volume for many decades and never grow or expand. So, starting with this type of venture is not a good option. One should only start with this type of venture if he/she has a very small amount of investment and can’t afford to bear a bigger capital.
Diagram By: Steve Blank, 2011
These businesses are very different from small businesses. A good example of these businesses is Silicon Valley Entrepreneurs and their investors. Normally, these entrepreneurs start the company with an idea which will change the world and then they attract the investment from the equally crazy investors. These companies normally hire the best and the brightest employs. They start the business with repeatable and scalable business model. After finding the business they start it up and make efforts to get more venture capital to get a very rapid expansion.
The Scalable Startup businesses normally provide increased profitability without any linear relationship between cost and revenue. Zynga, Facebook, Amazon.com, EBay, Charles Schwab and Wal-Mart are good examples of this type of businesses. Daraz.pk is a good example of this type of companies. As we can see Facebook is expanding its business without linear relationship between cost and revenue, all these business does the same. These businesses are increasing their profits without making a big change in the costs.
The Scalable Startup businesses are a very good approach to startup with. As we know these businesses come up with some great ideas and then attract the investors to expand their business.
These businesses normally have a great volume of expansion. They have a very good scope of expansion as they get the capital from the investors on the run. They continue to attract the investors to get rapid growth. These businesses grow exponentially if they find out a good number of big investors. This type of ventures is a very good option to startup if you have less capital amount for investment.
Diagram By: Steve Blank, 2011
This type of ventures starts with very high capital investments. These companies normally grow with the help of innovations, new products and the variants in their core products. As these companies rely on their products they always need to innovate rapidly and efficiently to keep up with the quickly changing customer tastes, technologies, legislations, competitions. These changing factors pressurize these companies to continue innovating and sometimes manufacturing new products for new customers and new markets. The existing companies acquire the services from innovative companies or by attempting to build disruptive product range.
We may consider Procter and Gamble Co., Nestle Pakistan, Dalda Foods PVT LTD, Mair Foods and Mitchell’s Fruit Farms LTD are great examples of this type of businesses. Procter and Gamble Co. is an American company founded in 1837. This company has a wide range of products like soaps, shampoos, surf and other household products. Nestle Pakistan is famous for its mineral water and juices. Dalda Foods PVT LTD is famous for its range of products in cooking oil and banaspati. All these companies have a good range of products. The products which are commonly used in daily life routine, we can’t imagine a life without these products. So, their products are continuously used by people in Pakistan and all over the world.
As these companies rely on a big range of products, they need to continuously change and improve their products. These companies normally grow very rapidly if their products get peak sales in the market but on the other hand they may go down very quickly if the market rejects their products. So, this type of ventures is very difficult to control and execute and sometimes the complete capitals may drain down if some change in technology or legislation occurs. So, these companies always need a highly competent staff to keep an eye on these factors and act before time according to these factors. This type ventures involve a high amount of risk and really efficient way of risk management is needed.
Diagram By: Steve Blank, 2011
This type of companies normally focuses on offering products and services for social benefits. These companies normally provide products and solutions for common problems in the society. Their goal is to make the world better place instead of getting high profits and wealth. This category includes nonprofit, for-profit or hybrid companies. Safepoint Trust, Better World Books, Toms, Good Eggs, GoldieBlox, Adobe and Fixit are very good examples of social entrepreneurship. These companies provide products and services for better society all over the world. These companies are working hard to make this world a better place.
All the different business ventures are quite different from each other. If we have a look at small business and scalable startup they are quite similar regarding the capital investment. As a small investment is needed to start them but small business continues working any further investments from others or it do not give much room for expansion in profits on the other hand scalable startup business continues to expand. Large company entrepreneurship needs a good range of products and is very different from small business and scalable startup business. Though they are different from each other but they are strongly linked with each other. Large company entrepreneurship firms normally manufacture products which are then used by the small business or scalable startup business to make profits. We can say that the large company entrepreneurship businesses design and create the products while these products are sold by the small businesses and scalable startup. While social entrepreneurship is very different from all these companies. The companies working according to this venture work much like scalable startups but they does not have any motive to get profits, instead they work hard to make this world a better place.
In this section we will discuss how Small business (often called Small and Medium Sized Enterprises or SMEs) affect the economy of a country. To analyze this we will use the statistical data from microdata-linking (MDL) project which was linked from structural data business statistics (SBS), international trade in goods statistics (ITGS) and business registers (BRs). This project was conducted by European Union (EU) in 2014 in which about nine countries participated. Six countries from those nine managed provide the broken down data of SMEs into dependent and independent enterprises. We will analyze this data and will have a look at how these small enterprises affect the economy of these countries. The data spans from 2008 to 2012, which is used in this report to get economic performance in terms of value added and employment.
To conduct this analysis the total number of enterprises were divided into three categories Micro (having less than 10 employs and turnover ≤ € 2m or balance sheet total of ≤ € 2m), small (having 10 to 50 employs and turnover ≤ € 10m or balance sheet total of ≤ € 10m) and medium (having 50 to 250 employs and turnover ≤ € 2m or balance sheet total of ≤ € 2m). The table below shows the details of this criterion.
Criteria for medium, small and micro sized enterprises
The data collected from different countries show that the SMEs make up over 99% of all enterprises in all EU countries and in Norway. This percentage is a real big proportion which shows that these enterprises play a very integral role in economic growth of these countries. The data also shows that the two-third of total employment is offered by these companies. In United Kingdom the employment in SMEs is 53% of total while in Greece it’s 86% of the total. If calculate the value added it is about 57% of the total. So, these enterprises are playing a vital role in growth of these countries as a major part of total business consists of these SMEs and major employment part is offered by these enterprises and they also contribute more than a half in adding value to the economy in these countries.
On further analysis of data we can clearly see that in 2008 in Denmark 98.6% of the enterprises were small or micro SMEs and these SMEs added a value of 71% while they offered about 66.3% of total employment on the other hand in 2012 the reported small and micro SMEs were 98.4% of total enterprises which added a value of 68.4% of total GVA and 64.7% employment of total employment offered during that year. This show how important these micro and small SMEs are for the economic growth of Denmark. The data of all other countries was also analyzed and similar results were found during the research. The table below shows full figures on this data:
The number of enterprises, persons employed (FTE) and value added, 2008 and 2012
Share of enterprises by size, class and country, 2012
The financial organizers of different countries are now paying special attention as they are now considered as the drivers of economic growth. Recent studies have proved that the small businesses play an integral part in economic growth and prosperity of a country. Forsman 2011; McKeever, Anderson and Jack 2014 have reported that the small businesses and entrepreneurs are very important part of a social economy.
Both experts and governmental authorities opt for fostering entrepreneurship as ‘an appropriate mechanism to face the impacts of the economic crisis’ (GEM 2014, 100)
Over the last some decades most of the literatures have consistently shown that the new businesses drive economic prosperity. We often see the politicians saying that the country is getting more investments and hence growing economically. This type of statements shows how important the new businesses are for the development of a country. Job creation, economic growth and poverty reduction are usually the main political interests in entrepreneurship (Battilana and Casciaro 2012; Willis 2011)
So, entrepreneurship is a major driving force within an economy especially because of their innovative nature (Fuellhart and Glasmeier 2003; Maxwell and Stone 2004).
More recently, authors have examined entrepreneurs in terms of their activity from the perspective of new business creation (Bryson, Wood and Keeble 1993).
So, we can clearly see that the small businesses are a very important factor in social economic growth of countries. As in previous sections we have discussed the economic data from different countries of European Union and in our studies we clearly saw that the small businesses are playing a major role in growth of economy in those countries.
In this section we will discuss three different entrepreneurs to get some understanding about the scope of entrepreneurship. We have chosen the best ones from local, global and social entrepreneurs. Studying their carrier will allow us to have some understanding about how different entrepreneurs prosper and go on under different situations.
Zia Imran has worked in IT industry including software development, system integration, product development and consultancy for more than 20 years. He current works at VahZay (pvt) limited which was co-founded by him. He teaches the Entrepreneurship at ITU, Lahore. He is also member of board at Plan9, the technology incubator of PITB, Government of Punjab.
He is an adviser at P@SHA Fund, which is a funding entity for social ventures. He has also worked as Managing Director of Pakistan Software Export Board (PSEB) in Islamabad. He served as Chairman P@SHA in 2009. He has been a judge at APICTA (Asia Pacific IT Alliance) annual conference for multiple years. He also designs energy saving devices, solar and bio-gas driven energy systems for agriculture and home purposes.
His 20+ experience includes his work at Silicon Valley, Oracle, Altera and many other startups both in Silicon Valley, USA and Pakistan. He worked as consultant at Oracle. He also worked for streamlining Finance, Order Processing and Supply Chain Management at Fortune 500 companies. He also worked as a leader in a product management group in Oracle CRM group. He also co-worked with Securities and Exchange Commission of Pakistan in 2009. Let’s now discuss the company co-founded by Zia Imran.
This company was started by the professionals having 40+ cumulative experiences working with hi-tech companies in Silicon Valley and delivering complex information systems to fortune 500 companies in the US. This company have specialized staff for Complex System Software Architecture Design and Development. They are also expert in applications design and development. The company also offers Product Management of application and system software products. Business Process Re-engineering, translation of C-level business into working processes and IT systems, functional and technical expertise in CRM and ERP system implementation is also offered by this company.
Steven Paul Jobs an American entrepreneur and business magnate co-founded the Apple Inc. He also worked as a CEO and Chairman of Apple Inc., Chairman of Pixar and member of Walt Disney Company’s board of directors. He was also the founder, chairman and CEO of NeXT. He is well recognized as a pioneer of microcomputer revolution. He co-founded the Apple with Wozniak in 1976 to sell Apple I and very shortly they gained the fame and wealth. Soon after one year they launched Apple II. They launched the Apple Lisa in 1983 which was not much successful. Steve Jobs was forced out of Apple in 1985. He founded NeXT with a few members from apple. He also funded the George Lucas’s Lucasfilm in 1986 creating a new company named as Pixar. Pixar produced Toy Story which was the first fully computer-animated film.
After a long struggle Steve Jobs became CEO of his former company Apple when Apple merged with NeXT in 1997. Here starts the revival of Apple when Steve Jobs worked closely with Jony Ive to develop a range of products with the advertising campaign “Think Different†and lead to iMac, iTunes, iTunes Store, Apple Store, iPod, iPhone, App Store and the iPad. The Mac OS was replaced with Mac OS X in 2001. Steve Jobs died at age of 56 on October 5, 2011 due to pancreatic neuroendocrine tumor which was diagnosed in 2003.
Apple Computers, Inc. was founded on April 1, 1976 by Steve Jobs and Steve Wozniak. Wozniak and Steve Jobs revolutionized the computer industry with the Apple II and their sales jumped very quickly during 1978 and 1980. In 1983 Wozniak left the Apple Company and John Sculley joined as a president. Due to this move jobs had to leave Apple Inc. in 1985.
Apple posted highest profits in 1990. This was due to the plans already set by Jobs. Later, in 1980s Microsoft came up as a toughest competitor for Apple with its Windows Operating System. Due to this competition the apple lost its share values rapidly during 1990 and 1996. The Apple needed the software desperately so they bought out NeXT Software (Jobs’ Company) and then Steve Jobs was selected as interim CEO and actually became the CEO of Apple company in 2000.
Then the company introduced the iBook. The company also started designing iPod and iTunes. These two products soon became the most profitable products of the company. It has also released many versions of iPhone, Apple TV and many other products. Apple continues to work on Steve Jobs’ legacy after his death on October 5, 2011.
Shiza Shahid was the co-founder of Malala Fund and now she is working as global ambassador of this organization. She manages the Malala Fund operations for Malala Yousafzai, who became the youngest winner of Nobel Peace Prize in 2014. Shiza Shahid was born in Pakistan. She reached out Malala in 2009 and worked with her to organize a camp for Pakistani girls. In 2012, Shiza went to Malala’s bedside when she was targeted by Taliban. She was inspired by Malala Yousafzai so she decided to help Malala and soon after they co-founded the “Malala Funds†which helps empower the girls and women by advocating them and providing them access to education.
Malala Fund is a social organization co-founded by Shiza Shahid and Malala Yousafzai. This organization works for the girls who can’t learn. This organization is working for women education since 2013. This organization insists the importance of at least 12 years of education for every girl. This organization is working in every region of the world where most of the girls miss out on secondary education while the priority countries for this organization are Pakistan, Afghanistan, India, Nigeria and countries having Syrian refugees.
“Behind every successful entrepreneur there are a lot of unsuccessful yearsâ€
Every entrepreneur has to work very hard to become a successful entrepreneur. We have recently discussed three entrepreneurs Zia Imran, Steve Jobs and Shiza Shahid. We can clearly see that all of these three entrepreneurs were very common people before becoming successful entrepreneurs. They faced many situational factors and problems on the go. In every case they had to work very hard to get into a really good position. As we can see it took 20 years for Zia Imran to establish his own company named VahZay (pvt) limited. During this era he had face many ups and downs and he worked in many renowned companies like Oracle, Altera etc.
On the other hand Steve Jobs was an ordinary person when he established Apple Inc. and then after very good sales experience he had to leave Apple but he didn’t get tired and he came up with new company named NeXT. Soon when both the companies were merged he became the CEO of Apple Inc. again. Steve Jobs is a very good example of determination and innovation.
Shiza Shahid has also worked very hard in social sector for wellbeing of women all around the world. She has worked in this field for many years now.
All the above three entrepreneurs are quite similar to each other. They have many things in similar to each and possess very little difference. All of them are experts in their fields. Zia Imran possesses the best skills in software while Steve Jobs is best in business, innovation and technology on the other hand Shiza Shahid has worked hard in social sector.
They have some differences in becoming really successfully. They encountered to different things to become successful. Zia Imran became successful after a long experience of work in different companies. Steve Jobs became successful after getting some trigger backs from his decisions like he was drawn out of Apple but he jumped back into the industry and became the most successful entrepreneur. On the other hand Shiza Shahid got successful when her co-worker got hit by Taliban.
All these entrepreneurs have some really great traits. These traits helped them a lot to get ahead in their fields. First trait they share is determination. Zia Imran, Steve Jobs and Shiza Shahid possess the quality of determination which helped them a lot to get success in their fields. They are also very hard working and this hard work helped them a lot to get the best in their fields. They have really disciplined personalities which also helped them to get the success.
We can clearly see from the examples above that the experience highly affects the entrepreneurship. In case of Zia Imran, he became the successful entrepreneur after working for 20+ years in different software companies like Oracle, Altera and many companies from in Silicon Valley, USA and Pakistan. A person learns many things from experience and hence does Zia Imran. His 20+ years of experience really cashed out when he founded VahZay (pvt) limited. He is now member of many important governmental and non-governmental entities in Pakistan and possesses a very important role and position in software industry of Pakistan.
As we have already discussed Steve Jobs co-founded Apple in 1976 and they gained very good fame and wealth in a very short time but due to lack of experience we can say his one decision just back fired and he had to leave Apple in 1985. He founded NeXT and after some unsuccessful ventures like the first ever web server which was designed by NeXT, he merged Apple and NeXT when Apple was desperately in need of software and was facing the worst competition from Microsoft. Soon, due to his experience the Apple inc., became the most successful company of the world and we can see how iPhone sales peak out every year.
Shiza Shahid has been working in social sector for some years when she joined Malala Yousafzai and they co-founded Malala Fund. This organization is now working very well in education sector for the education of girls and women all around the world. The success of this social entity can be measured by the fact that its operations are spreading very quickly all around the world and it is now operating in more than 10 countries.
So, we can conclude that the experience really enhances the skills of a person. The people learn much more from experience than education or degrees. The experience really polishes the mind and skills of a person and the person becomes successful after gaining some experience.
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13.
