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 08/10/2019 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name DINH PHAN THUY ANH Student ID GBS18049

Class Assessor name PHAM MINH VU

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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 that
making a false declaration is a form of malpractice.

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P1 P2 P3 P4 M1 M2 D1 D2
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Contents
Introduction.................................................................................................................................................................4
P1. Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.............................................................................................................................................................4
Definitions:..............................................................................................................................................................4
1. Small business:.....................................................................................................................................................5

2. Scalable startup entrepreneurship......................................................................................................................6

3. High growth firms (large entrepreneurship)........................................................................................................6

4. Social entrepreneurship.......................................................................................................................................7

P2 Explore the similarities and differences between entrepreneurial ventures..........................................................8

P3+P4. Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on the
economy. Explain the importance of small businesses and business start ups to the growth of the social economy.9
1. SMEs contribute significantly to economic growth..............................................................................................9

2. SMEs deal with a large number of workplaces for the population, increase income for workers, and contribute
to poverty reduction................................................................................................................................................10
M1. Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship
in both the public and corporate sector.........................................................................................................................11
Corporate sector entrepreneurship (Intrapreneurship):.......................................................................................11
Public sector entrepreneurship.............................................................................................................................12
The difference between entrepreneur and intrapreneur:.....................................................................................12
M2. Evaluate the differences small, medium and large businesses make to the economy, applying relevant data
and statistics...............................................................................................................................................................13
SMEs:..................................................................................................................................................................... 13
Large enterprises:..................................................................................................................................................13
The difference:.......................................................................................................................................................14
D1. Critically examine the scope, development and growth of entrepreneurial ventures........................................14
The scope...............................................................................................................................................................14
The development:..................................................................................................................................................14
The growth............................................................................................................................................................15
D2. Critically examine how small businesses have an impact on different levels of the economy (local, regional,
national) and in an international context........................................................................................................................16
Conclusion.................................................................................................................................................................18
References.................................................................................................................................................................18
Introduction
Nowadays along with the growth of the economy, many businesses have been created. Most of them are
small businesses which have an crucial impacts on the world economy. By this assignment 1, I will
explore and compare different business and evaluate their impact and importance on the economy at
different levels as an intern of a consultancy firm.

P1. Examine different types of entrepreneurial ventures and explain how they relate to
the typology of entrepreneurship.

Definitions:
Entrepreneur: Entrepreneurs are often regarded as the leader of a business and the person who comes
up with new ideas and business process innovators then turn it into practical. Entrepreneurs have to take
risks when starting a new business. To judge as a businessman or a trader, people don't look at the scale
but people look at how they make money. ( Brockhaus,1982)

Entrepreneurship: An individual, instead of working as an employee, run their own business, accepting
all the risks and rewards that business brings. He is a person who is strongly motivated to achieve
success, and has a very constructive spirit called entrepreneurship.( Bygrave, W.D. and Hofer, 1992)

Entrepreneurship activities: Breakthrough: The essence of the entrepreneurship process is the

actualization of business ideas among creative enthusiasts; Growth: Entrepreneurship are considered to
be the pioneers and market-breakers and often have a great influence on shaping other businesses for
the investment process; Initial capital: Like other investment activities, initial capital is a very necessary
feature to start a business; Technology: For entrepreneurship technology is applied in achieving business
goals, growth ambitions. startups in production, technology is often emphasized as a typical
characteristic, a competitive value of products.

One activity of entrepreneurship is ‘breakthrough’ which literally means innovation and creativity: The
essence of the startup process is the actualization of business ideas among creative enthusiasts. So
starting
a business aims to increase competitive value by creating a product that is never on the market or
creating a product with a better value than what is available. Introducing new methods of production,
developing new markets, developing new sources of supply, and organizing innovation are the goals of
entrepreneurs today.

There are four distinct types of entrepreneurial ventures which all engage in entrepreneurship:

1. Small business:
According to General Statistics Office (2017) the enormous number of startups and entrepreneurs in
Vietnam are still small businesses. There are over 508 thousand small businesses and they make up
98.1% of all companies in Vietnam.

Number of newly established firms (mainly SMEs)

( Source: Vietnam Ministry of Planning and Investment.)

Small businesses can be grocery stores, consultants, travel agents, internet commerce storefronts,
electricians , carpenters etc. They can be anyone who runs her own business as well as hiring local
employees or family. Their success definition is reflected in feed the family and have profitable , not to
take over an industry or build a $100 million enterprise.

My house located beside the local market which leads my parents wanted to open a small grocery store
in 2014. They didn’t aspire to open a chain of this kind of store but just to feed our family. The available
finance resources was their own savings and what they could borrow from friends as well as relatives.
They only had profit if the business succeed, if it didn’t, they figured out why and adapted it. My parents
work as hard as any entrepreneurs in Vietnam, but with a small definition of success which is to feed the
family.

2. Scalable startup entrepreneurship:

Different from small businesses, scalable startups are what Vietnam entrepreneurs and investors do.
These investors start the business with the scope of changing people’s behavior or increasing their
knowledge. They attract financial resources from equally crazy venture capitalists as well as hire best
employers and managers. The entrepreneurs focus to raise the profits as much as possible and scale also
requires even more venture capital to fuel rapid expansion.

Minh Quyen started the now more than $400 thousands TalkCafe 100% English, knowing he wanted to
build a large chain of educational cafe. Founded in Bien Hoa, Quyen’s vision is to provide a English
teaching place with a appropriated price for citizen from 18 to 40 years old. Establishment 1 reaches a
turnover of VND 105 million / month, its after-tax profit is VND 15 million / month. Facility 2 has only
been operating for 2 months, currently losing VND 5 million in cash and VND 10 million in
depreciation .Once he created a suitable business model, he realize scale expansion requires external
venture capital which leads to offering of stock for investors to build up 630 establishments. (Source:
VTV Sharktank Vietnam)

3. High growth firms (large entrepreneurship):

Large companies have many things to take over, most developing through sustained innovation, provide
new products as variants around their core products based on the customers tastes, new technology and
competitors though. These pressures not just risks but also a chance of entirely new product, which is a
crucial impacts affect on the survival and development of the whole company.

Apple under the leadership of Steve Jobs, one of his greatest successes was the introduction of the first
iPhone in 2007, which officially changed the landscape of smartphones around the world. Through many
ups and downs, in the end, the technology empire of the "bad bite" apple logo named Apple has found
the right direction and rose to the top position in the world, with brand value reaching a record level. : 1
trillion USD. The company's revenue has jumped 10 times, the stock price is 700% higher. Until
November 2018, this was the largest company on the world stock exchange.

4. Social entrepreneurship:
Social entrepreneurs are innovators focused on creating products and services that can solve social
issues and needs. But unlike other kinds of startups, their goal is to make the world a better place, not to
gain market share or create wealth for the founders. Social business can be profit, non-profit or hybrid
organization. Social enterprises develop in close association with each other to form a community,
receive support, investment and direction from many organizations such as the British Council, Center
for Supporting Community Service Initiatives. (CSIP), United Nations Economic and Social Commission for
Asia and the Pacific (ESCAP).

Social enterprises' products are highly appreciated by domestic and international consumers. Do paper
and ornaments from “giấy dó” of Zó Project; KYM VIET's fully handcrafted stuffed animals are now
available in the US and Japan. Wallets, bags, towels with the innocent lines of Tohe included in the
luggage of many international travelers coming to Vietnam want to buy a truly unique gift for their
relatives.
P2 Explore the similarities and differences between entrepreneurial ventures.
All entrepreneurs are searching for a sustainable business model for their company. Regardless of type,
entrepreneurs have common characteristics: resilient, passionate, tenacious and agile. Differences
include level of tolerance of personal risk, vision's scale and their personal financial goal, below is a
comparison table of four entrepreneurial ventures.

Personal risk Financial goal

Small business: Very high - Feed the family
Scalable startup High -Implement the vision,
entrepreneurship: dreams
- Get rich.
High growth firms: Low - Feed the family
- Get rich
- Take the high position (get
promoted)
Social entrepreneurship: Moderated -Save the world
P3+P4. Interpret and assess relevant data and statistics to illustrate how micro and
small businesses impact on the economy. Explain the importance of small businesses
and business start ups to the growth of the social economy.

Overview of Vietnamese SMEs:

Medium
68%
enterprises
2%

(Source: Vietnam Association of SMEs.)

Although SMEs are small in scale, experts and managers in Vietnam and other countries have
acknowledged that SMEs play an important role in social and economic development. The role of small
and medium enterprises with specific socio-economic development is as follows.

1. SMEs contribute significantly to economic growth:

In most economies, SMEs are subcontractors to large businesses. The adjustment of subcontracting
contract at times allows the economy to have stability. That’s why SMEs are considered as shock
absorbers for the economy before big changes. With the advantage of low investment capital and
abundant labor resources, over the years, SMEs have grown faster and accounted for an increasing
proportion of the total number of enterprises. SMEs provide the market with a variety of diverse
products in all sectors of the economy, creating many choices, meeting all consumer needs, thereby
promoting consumption. of the economy. Therefore, the contribution of SMEs to the total output of the
economy is very large.
Registered capital of newly established firms

( Source: Vietnam Ministry of Planning and Investment.)

Not only SMEs in Vietnam but also countries that contribute to economic growth. Statistics show that in
2000, SMEs contributed more than 40% of the country's GDP. By 2015, the contribution of SMEs will
remain at 43.2% of GDP. The SMEs sector has always maintained the pace of economic growth even
when the economy was in crisis. The contribution of SMEs is significant, and economic researchers and
managers agree that the SMEs should be the foundation for economic development and social stability.
SMEs’ registered capital was around USD130 billion, equal to 1/3 total firms’ registered capital as of Dec
2016.

2. SMEs deal with a large number of workplaces for the population, increase income
for workers, and contribute to poverty reduction:
Because SMEs engage in business in all industries and sectors of the economy with a wide range of
products, it is possible to ensure employment opportunities for many employees in many different
regions. Especially when the economy is in a recession, while large enterprises often have to lay off
workers to cut costs, SMEs, with their flexible and dynamic nature, can adapt quickly. With market
volatility, it is possible to stand firm without reducing labor, or to quickly re-attract the labor force when
the economy enters a recovery cycle.
Registered number of employees of newly established firms

(Source: Vietnam Ministry of Planning and Investment.)

Common characteristics of SMEs that use little capital but are labor intensive, 7 out of 10 employees
work for SMEs. In 2015 in Vietnam, the number of manual, simple and manual labor accounted for 76.8%
of the total number of employees, most of whom worked in SMEs. SMEs create many job opportunities
and reduce unemployment in the economy, thereby contributing to solving social issues that benefit the
community.

M1. Investigate a diverse range of entrepreneurial ventures to demonstrate an

understanding of entrepreneurship in both the public and corporate sector.
Corporate sector entrepreneurship (Intrapreneurship): It is a system which allows an employee
to act like an entrepreneur and it also allows employees experiment, as well as the potential for growth
within an organization freely. Intrapreneurs are tasked with using the company's resources, while
entrepreneurs use their own. An intrapreneur may also take certain risks by assuming multiple tasks—
even some that he or she may not be comfortable with—and look for new challenges. Companies that
don't promote them may lose intrapreneurs to other companies, or they may end up working for
themselves. A successful intrapreneur is comfortable being uncomfortable while testing his or her ideas
until achieving the desired results. The intrapreneur is part of a company's backbone and the driving force
mapping out the organization’s future.

Ramzi Haidamus(president Nokia Technologies) is often considered an intrapreneur because of his

initiatives with the company. He decided to do away with individual offices within three months of
starting his job in 2014. He believed an open office led to more sharing of ideas and added greater value
to the organization. Haidamus interviewed more than 100 engineers individually to determine which
technologies had the greatest chance of being successful in the marketplace at the time.

Public sector entrepreneurship: public entrepreneurs act within government and, at their heart, are
a blend of two different roles: that of a public servant, and that of an entrepreneur. The public
entrepreneurship is public leaders look to inject entrepreneurial spirit and innovation into the traditional
structures and processes of government. It lead to entrepreneurial activities carried out by government-
linked companies (GLCs) or state-owned enterprises. These companies were formed as part of the
nation’s privatization programme. Example: State Economic Corporation (SEDCs).

The difference between entrepreneur and intrapreneur:

An entrepreneur is a person who establishes a new business with an innovative idea or concept. On the
other hand ,an employee of the organization who is authorized to undertake innovations in product,
service, process, system is known as intrapreneur.

An entrepreneur is intuitive in nature uses his own resources, i.e. man, machine, money, whereas an
intrapreneur is restorative in nature, the resources are readily available, as they are provided to him by
the company.

An entrepreneur raises capital himself and works in a newly established company. Conversely, an
intrapreneur does not need to raise funds himself; rather it is provided by the company and he is is a
part of an existing organization.

An entrepreneur is his own boss, so he is independent to take decisions and also capable of bearing risks
and uncertainties of the business. As opposed to intrapreneur, who works for the organization, he
cannot
take independent decisions, in which the company bears all the risks. And of course, the profits will go to
those who have decision respectively.

M2. Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics
SMEs: Small and medium enterprises (SMEs) account for the majority of the total number of businesses,
playing an important role in the economy. According to the latest report of VCCI in January 2014 on the
financial situation of small and medium enterprises in the US, this group accounts for 99% of the total
number of businesses and employs over 50% of the total number of commune employees. festival. It
creates jobs for 65% of the private sector. In Vietnam, according to the Enterprise Development Institute
of the Vietnam Chamber of Commerce and Industry (2011), Vietnam has 543,963 enterprises, of which
small and medium enterprises account for 97%, contributing more than 40% of GDP nationwide and
employing 51% of the total social labor.

Large enterprises: Although only 5% of the total number of registered businesses is now. However,
large enterprises play a key role in the economic development of countries around the world. Create a
large volume of jobs and be responsible for boosting the economy. For large enterprises that play a role
to stabilize the economy in crisis situations, large enterprises are always the ones who stand at the top of
their poles as a solid leader in the national economy. It creates stability for the economy: large
companies and businesses always create a stable and long-term economic development, which helps the
economy to be stable and reduce fluctuations. It also creates important industries and services:
nowadays large enterprises operate in key industries in each country's economy. In Vietnam, there are
enterprises such as oil and gas corporation, electricity corporation, coal and mineral group. Large
enterprises are more competitive in terms of capital, human resources and brands than small and
medium enterprises, contributing a large amount of GDP in the nation's economy. Large enterprises with
huge capital and strong economic potential should be able to quickly change and contact with the
advancement of science and technology in the world. business for an economy instead of just doing
business and commerce.
The difference:
SMEs have small-scale capital: Small and medium-sized enterprises have small capital size, they have
difficulty in accessing official capital, especially in developing countries. This is a significant obstacle in
applying new scientific and technological advances to commercial activities in general and online trade
promotion in particular.

Under fierce competition from the "big": Small and medium enterprises are subject to fierce competition
of large companies, corporations and from businesses together. In the process of integration, large
corporations often tend to reach out to the world, establishing branches and subsidiaries in countries
with many advantages, so SMEs in many countries This family must find new methods and tools in its
business activities.

Mainly investing in consumer goods: With small capital, these businesses often focus on industries closer
to consumers than investing in heavy industries, mining and manufacturing. In Vietnam, according to the
Vietnam Trade Promotion (2012) in the sector structure, about 43% of small and medium enterprises
operate in manufacturing, 24% in trade and distribution. The remainder operates in the service sector
and relates to agriculture.

D1. Critically examine the scope, development and growth of entrepreneurial ventures.
Talks Café English 100% would be the example for this critically examine.

The scope: “Bringing English to the entire young generation of Vietnam”. Talks Café 100% English is not
only about profit, but also attaches great importance to the efficiency and quality of training students.
Education is very important, good education will develop the country. Moreover, education never
declines in an era of competitive business.

The development: Talk Café currently has 2 campuses in Bien Hoa. Every morning, it sells coffee and
evening English classes with a scale of 5 people / class. The target audience is students or working
people, ages 18-40. Tuition fees here are based on the attendance of students, the harder you study, the
cheaper tuition / session. Tuition fees range from 65,000 to 85,000 VND / session, and divided into
sessions with flexible schedules. In terms of space, thanks to taking advantage of the "dead" cafes after
the trend of business, Minh Quyen (CEO) rented with a fairly cheap price. He said that facility 1 has a
surface of 400
m2, the first time rent only 9 million / month. 2 premises premises 250m2, underground, Minh Quyen
rent for 6 million / month. Regarding teachers, Talk Café has main Vietnamese teachers, alternating with
foreign teachers from Europe, the US, Singapore, and India. At present, Talk Café 1 has a turnover of 105
million dong / month, of which 30 million dong comes from coffee business, the rest comes from
teaching English. Profit after depreciation is VND 15 million / month. Establishment 2 has been operating
for only 2 months until September 2019, currently losing VND 5 million in cash and VND 10 million in
depreciation. In October 2019, Minh Quyen will open the third base of Talk Cafe. About the advantage:
other centers are operating in the style of renting a building, so no English center can sell English courses
of 5 people / class for 65,000 VND / session and not suitable for workers working in shifts.

The growth: CEO Quyen said that he is writing a proposal to the two largest coffee chains in Vietnam,
Highlands and The Coffee House, about the cooperation. According to the observation, all cafes are only
able to supply 30% during the time of 17:00 - 19:00. If teaching in 200 coffee shops by this time frame,
Talk Café can pledge profits of 10 million VND / month / shop. Thus, the chains earn 2 billion / month,
equivalent to 24 billion / year - a pretty attractive number. Another way to develop the growth of the
market is to follow 450 universities and colleges across the country under the model of selling milk tea.
Protect intellectual property rights: Intellectual property including science, technology, and creative
arts has shaped the existence, development and creation of prosperity for businesses. ( May, C. and Sell,
S.K., 2006) Entrepreneur's desire for profit is always the driving force of innovation and creativity. Protect
intellectual property rights is the state and the intellectual property right holder use legal means to
protect the intellectual property rights of their intellectual property objects, against any infringement.
Upon its establishment, the business had to prepare a clear business plan. In this plan, we have to
consider protecting our business. It is important to submit an application to protect your creative ideas
for: trademark, copyright , patents that will be or are being used in your business.

Trademark: Brand is the most effective marketing tool. Trademarks affixed to goods will enhance and
protect the reputation and reputation of enterprises through their goods. The trademark rights that are
protected against infringement include: Claiming damages, confiscate and destroy infringing goods,
minimizing future infringements. Example: Quy Nhon Beer Company applied for registration of the
trademark "LOWEN" to the product "Beer" on May 14, 1997 and was granted a trademark certificate No.
47571 on June 16, 2003.

Copyright: Copyrights protect the external appearance of the product. The attractiveness, eye-catching
of the external appearance sometimes decide to quickly sell the product; regardless of its internal
characteristics.

Patents: A technical solution that wants to be granted an invention patent must always meet three
properties: Being new (being the latest and the most unique in the world), being creative, capable of
industrial application. Patent owner holds the exclusive right to use the invention, sell, assign or allow
another person to use the invention; Legal action against the infringement of others, compensation for
damages and destruction of infringing goods. In 2012, a US court ruled Samsung Company had to pay
Apple up to $ 1 billion because Samsung used some of Apple's exclusive inventions in the making of
Samsung tablets.

D2. Critically examine how small businesses have an impact on different levels of the
economy (local, regional, national) and in an international context.
The SMEs sector has maintained a steady pace of economic growth when the economy was in crisis. The
contribution of SMEs is significant, and economic researchers and managers agree that the SMEs should
be the foundation for economic development and social stability. Capital exists in the population is very
large, not to mention the real estate has not been put into operation; In Vietnam, according to experts,
there are about 500 tons of gold in the population. If there is an appropriate mechanism, the resources
of the economy will be exploited to create material wealth and bring profits to individuals, families,
businesses and society. According to Adam Smiths, the wealth of nations thanks to the development of
the business, in the process of finding profits, the business has enriched itself, every member involved
and the whole country. via tax donations. Since then, managers and economists have acknowledged and
studied the role of businesses. Small and medium-sized businesses play a huge role in the economic
growth of many countries or regions, including in developed and developing countries. Below is the table
of the SMEs effectives on local, regional, national and international area.
 Local Regional National International
- Reduce local - Promote the burgeoning - Contributing to narrowing - Easy to adjust operations, the
unemployment. entrepreneurship bureau, the development gap economy will become more dynamic
become the cradle for between urban and rural and flexible, adapting to market
incubating large businesses and areas, at the same time fluctuations that catch up with the
creating successful promoting the development trend of the world economy.
entrepreneurs. of trade in services and small
businesses, contributing to
economic restructuring.
- The most positive impact - People in the neighboring - Contributing more than 40% - Small, new and innovative businesses
on the maintenance and provinces have been improved of GDP, over 30% of state that can solve many of the world's big
development of traditional living standards and delivery to budget revenue, 45% of problems (environment, climate, fuel,
industries such as rattan, trade and infrastructure. Small investment capital to technology)
bamboo and porcelain, provinces use industrial implement the whole society.
weaving. provinces as models for seed
enterprises.
- The local government - Developing decentralized
takes taxes to develop urbanization.
infrastructure for local
people
Conclusion
This assignment is a mini research project that is based on a range of different examples of
entrepreneurship. I had explore and illustrate the range of venture types that might be considered
entrepreneurial and also assess the impact of small businesses on the economy.

References:
Brockhaus, R.H., 1982. The psychology of the entrepreneur. Encyclopedia of entrepreneurship, pp.39-57.

Bygrave, W.D. and Hofer, C.W., 1992. Theorizing about entrepreneurship. Entrepreneurship theory and
Practice, 16(2), pp.13-22.

General Statistics Office (GSO) 2018, Bao cao tong dieu tra kinh te 2017, Available from:
https://bom.to/52meP [Accessed September 23th, 2019].

Hisrich, R.D., 1990. Entrepreneurship/intrapreneurship. American psychologist, 45(2), p.209.

May, C. and Sell, S.K., 2006. Intellectual property rights: A critical history (pp. 5-11). Boulder: Lynne Rienner
Publishers.

Smith, A., 1937. The wealth of nations, pp.30-65.

Vietnam Association of SMEs (vinasme) 2019, Ho tro phat trien SMEs, Available from:
https://sum.vn/jJrZN [Accessed September 15th, 2019].

Vietnam Chamber of Commerce and Industry (VCCI) 2011, Market Profiles, Available from:
https://sum.vn/Bg5aU [Accessed September 20th, 2019].

Vietnam Ministry of Planning and Investment (MPI.gov) 2008, Vietnamese SMEs confident of economic
growth: HSBC survey, Available from: https://sum.vn/mKIHD [Accessed September 23th, 2019].

Vietnam Trade Promotion 2012, Chuong trinh ho tro SMEs Viet Nam, Available from:
https://sum.vn/VjQSN [Accessed September 22th, 2019].

VTV Sharktank Vietnam 2018, Thuong thuyet kheo leo cua Café Talk, Available from: https://sum.vn/JqSK7
[Accessed September 22th, 2019].