London School of Science and Technology Pearson BTEC Level 5 HND Diploma in Business Unit 9: Entrepreneurship and Small Business Management Assignment Title: Entrepreneurship and Small Business Management Assessor Name: Festus Louis Internal Verifier: M. Haider Issued on: 30th January 2017 Deadline: 12th May 2017 Submitted on: ESBM Student Name: Student ID: Campus: Alperton Pearson Registration Number: Instructions & Learner Declaration • An electronic copy of your assessment must be fully uploaded by the deadline date and time. • You must submit one single PDF or MS Office Word document. Any relevant images or screenshots must be included within the same MS Office Word or PDF document. • The last version you upload will be the one that is marked. Your paper will be marked if you have indicated this as your final submission. • Review the mitigating circumstances policy for information relating to extensions. • The file size must not exceed 20MB. • Answer the criteria in order, clearly indicating the pass criteria number. • Ensure that all work has been proof-read and checked prior to submission. • Ensure that the layout of your documents are in a professional format with font style Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing 1.5 and justified. • Use the Harvard referencing system; otherwise it will be considered as plagiarised work. • Ensure that you back-up your work regularly and apply version control to your documents. • Ensure that any file you upload is virus-free, not corrupted and not protected by a password otherwise it will be treated as a non-submission. • You must NOT submit a paper copy or email of this assessment to any member of staff at LSST. • Your work must be original with the appropriate referencing. I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Signature & Date: Scenario: Your primary role at the Entrepreneurship and Small Business Management Council (ESBMC) is to support your Line Manager, who reports to a Director. The Council primarily assists prospective entrepreneurs and start-up ventures to prepare to become successful entrepreneurs. Your role is to contribute to development of resources used by your Line Manager, who makes presentations and issues publications on the subject, using the two (2) Case Studies below: Case Study 1: Elizabeth Gooch and EG Solutions PLC In 2006, Management Today named Elizabeth Gooch as the seventh most successful female entrepreneur in the UK. About 25% of the top entrepreneurs in the list were female. Elizabeth is founder and CEO of EG Solutions, a small company selling operations management software that helps clients to generate improvements in operational performance and efficiency. EG Solutions prides itself on implementing its programmes on a fixed cost, fixed timescale basis. It is the only company that guarantees return on investment and its sales receipts/revenues are based on the results delivered. A typical implementation project pays itself within six (6) months. Elizabeth started work for HSBC Bank aged 18 but left after only 12 months to work for a consultancy that helped large firms find better ways to use their staff. Eight (8) years later, she started her own business, EG Consulting, aged 26, financed by £1,000 borrowed from family and friends and a credit card. EG Consulting initially offered consultancy and training on operations management to financial services companies. In its first year, turnover reached £600,000. However, the complexity of collecting the information needed to advise on improving efficiency led Elizabeth to develop software to help in the task. In 1993, the software, called Operational Intelligence, was launched as a product in its own right. It allowed data to be collected in real-time, enabling all departments of a company to monitor the production process. At that point, the business had six (6) employees, several contract workers and a turnover of £1 million. Elizabeth met Rodney Baker-Bates, then CEO of Prudential Financial Services and things changed dramatically. He believed that she was not making enough of the business and advised that she should focus on the software, rather than consultancy work. In 2005, the company changed its name to EG Solutions PLC, with Rodney as the Chairman - engaged as a strategic planning consultant to help develop the business in a focussed way. The strategy worked, increasing turnover by 28% in a year to £4.2 million. The business needed additional capital to fund an ambitious growth target so; Elizabeth decided to float the company on the Alternative Investment market (AIM), rather than approaching venture Capitalists, so as to retain control of the business. The float was successful but EG Solutions suffered £700,000 and £800,000 losses in 2006 and 2007 respectively. Elizabeth cut costs by £1.2 million in 2008 and returned EG Solutions to profit, admitting that she took her eye off the UK market as she looked overseas for business opportunities that she had planned to achieve and ambitious growth. She famously advised: “There needs to be a lot more attention to strategy. Persevere and never see anything as failure. Look at what you can learn from something that does not go the way you want. It is all about attitude. I do not believe in failure. I have needed sheer determination - although my shareholders would probably describe it as stubbornness.” Case Study 2: Tom Mercer and MOMA Foods (“MOMA”) Tom Mercer, a graduate of Cambridge University, was a management consultant with Bain and Co. in the City of London. He stated: “I spent most of my days dreaming up business ideas, but one in particular seemed to stick with me. As a city worker I thought there were loads of options for lunch and dinner but very few healthy and tasty breakfasts that commuters could pick up on their way into work. I ran this by friends and colleagues and it began to feel like this idea actually had legs. Before going to work, he would blend smoothies with oats for his breakfast in his flat in Waterloo but this took time and he was often late for work as a result. Then, it suddenly struck him that his problem was actually a business idea: pre-prepare the blend and then, sell it to commuters from key points, like train, tube, tram and bus stations around London. And so, MOMA was born in 2006. He further stated: “It was now time to think about what this healthy breakfast was actually going to be. I settled on a liquid mixture of yoghurt, oats and fruit (the very first draft of our current Oatie Shake). I needed to get the product into the hands of key consumers, so thought what better than a guerrilla style sampling session at Waterloo station. I stayed up through the night chopping fruit, blending it with oats and yoghurts, breaking numerous blenders and pouring into water bottles I’d picked up from Tesco. 200 bottles later, with my trestle table set up outside the station, my friends and I were ‘busily exchanging bottles for email addresses. A couple of months later, after receiving positive feedback from those that took a sample, my company offered me some time off to pursue the idea further. This soon turned into leaving the company officially in August 05. I’d done my research standing in train stations counting the footfall (and getting kicked out of a few for looking too suspicious) and found the best stations to set up my pop-up stall. By November I had the go ahead from Waterloo East station to start selling in February 2006. One converted filing cabinet, an old BT van, and a railway arch later, MOMA sold its first breakfast to the city of London’s commuters. The next few months were hectic to say the least – we opened 2 more sites very quickly – one in Vauxhall and one in Canary Wharf. I used to get up at 1.45am, start work in our railway arch kitchens at 2.30am and then start selling at 6.30am. After 4 months, the MOMA team had grown and it was time to hand over the night shift to someone else! By the summer of 2008 we had nine stalls and sold into a few offices and shops, including Selfridges but unfortunately, this was also the beginning of the recession. Commuters just weren’t as prepared as they were before to spend that little bit extra on healthy breakfast outside of the home. We started to move our focus away from the stalls and onto retailers and soon pulled in some great wins – Waitrose, Ocado, and Virgin Atlantic. Since then we have been through two redesigns, three city wide marketing campaigns, many great retail listings and taken on some really talented team members. We’ve become the number 1 Bircher Muesli brand in the U.K. and have our products in supermarkets, trains and coffee shops across the country. But this is still only the beginning; we have so much more room for growth and can’t wait to see what’s in store!” MOMA’s distinctively colourful carts are now common sights around stations in London. In 2009, Tom had twenty-five (25) people working for him, including ten (10) stall workers who were mainly students, wanting to earn extra money. The driver picks up the stall workers and the leftovers at the end of the shift. Tom now plans to open more stalls and extend the company beyond London by selling through Ocado - a leading UK internet retailer. Task 1 LO1: Explore and illustrate the range of venture types that might be considered entrepreneurial. Your Line Manager has asked you to compose a report for her review, before developing a new publication for prospective entrepreneurs. Evidence required Report Assessment Criteria (AC) covered by this task: P1, P2, M1 and D1 AC To achieve the criteria you must show that you are able to: P1 • Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship ventures, including examples of each type. P2 • Explore the similarities and differences between Social Entrepreneurship and Lifestyle Entrepreneurship, including two existing examples of each. M1 • Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship, including sources and Harvard Referencing Style. D1 • Critically examine the scope, development and growth of entrepreneurial ventures in the UK, including sources and Harvard Referencing Style. Task 2 LO2: Assess the impact of small businesses on the economy. Evidence required PowerPoint Slides (including Speaker Notes: 20 slides maximum) Assessment Criteria (AC) covered by this task: P3, P4, M2 and D2 AC To achieve the criteria you must show that you are able to: P3 • Interpret and assess relevant data and statistics to illustrate how micro and small businesses impact on the UK economy. P4 • Explain the importance of small businesses and business start-ups to the growth of the social economy in the UK. M2 • Evaluate the differences small, medium and large businesses make to the UK economy, applying relevant published data and statistics, including sources and Harvard Referencing Style. D2 • Critically examine how small businesses have an impact on different levels of the UK economy (at local, regional and national levels), making comparison with at least one (1) other country, including data, sources and Harvard Referencing Style. Task 3 LO3: Determine and assess the key aspects of an entrepreneurial Mindset. “You can never cross the ocean until you have the courage to lose sight of the shore.” - Christopher Columbus Evidence required Report Assessment Criteria (AC) covered by this task: P5, P6, M3 and D3 AC To achieve the criteria you must show that you are able to: P5 • Determine the most likely characteristic traits and skills of Elizabeth Gooch and Tom Mercer, stating how they are differentiated from those of business managers. P6 • Assess how aspects of the entrepreneurial personality of Elizabeth Gooch (Case Study 1) and Tom Mercer (Case Study 2) reflect their entrepreneurial motivation and mindset. M3 • Explore and examine different lines of argument relating to entrepreneurial characteristics, building on P5 and P6, including sources and Harvard Referencing Style. D3 • Analyse the characteristic traits, skills and motivational drivers of at least two (2) successful entrepreneurs, supported by specific examples, including sources and Harvard Referencing Style. Task 4 LO4: Examine different environments that foster or hinder entrepreneurship. Evidence required Report Assessment Criteria (AC) covered by this task: P7, M4 and D4 AC To achieve the criteria you must show that you are able to: P7 • Examine, using Elizabeth Gooch (Case Study 1) and Tom Mercer (Case Study 2), how personal background and experience can hinder or foster entrepreneurship. M4 • Analyse the link between entrepreneurial characteristics and the influence of personal background and experience to Elizabeth Gooch (Case Study 1) and Tom Mercer (Case Study 2), including sources and Harvard Referencing Style. D4 • Critically evaluate how personal background and experience influences entrepreneurs, both positively and negatively, by comparing and contrasting Elizabeth Gooch and Tom Mercer. Sources of information to support you with this Assignment. Recommended Textbooks: 1. Burns, P (2011) Entrepreneurship and Small Business. 3rd Ed. Basingstoke: Palgrave MacMillan. 2. Carter, S. and Jones-Evans, D. (2012) Enterprise and Small Business: Principles, Practice and Policy. London: Pearson. 3. Down, S. (2010) Enterprise, Entrepreneurship and Small Business. London: Sage. 4. Griffiths, A. and Wall, S. (2011) Economics for Business and Management. 3rd Ed. Harlow: Pearson. eBooks (Free Downloads) 1. http://www.freebookcentre.net/Business/Small-Business-andEntrepreneurship-Books.html (Accessed: 12/01/2017) 2. http://bookboon.com/en/entrepreneurship-ebooks (Accessed: 12/01/2017) Recommended Journal 1. Journal of Small Business Management. Oxford: Wiley-Blackwell. http://eu.wiley.com/WileyCDA/WileyTitle/productCd-JSBM.html (To access this online resource for free; you are required to first request permission to reuse content from this title by providing your email address in the right-hand side of the relevant page) Website: 1. The Institute for Small Business and Entrepreneurship (ISBE) - www.isbe.org.uk Other assessment materials attached to this Assignment Brief 1. PowerPoint Presentation Slides 2. Guidance for Students Assessment Information: The specific assignment details and the tasks can be found in the LSST Connect site. Cross-Referencing of Module Outcomes to Module Assessment (detailed below) Unit / Module Learning Outcome (LO) Types of Assessment Task 1 Task 2 Task 3 Task 4 Required Format of Submission Report Slides Report Report LO1 Explore and illustrate the range of venture types that might be considered entrepreneurial. 1,000 Words Not Applicable LO2 Assess the impact of small businesses on the economy. LO3 Determine and assess the key aspects of an entrepreneurial mindset. Not Applicable 1,500 Words LO4 Examine the different environments that foster or hinder entrepreneurship. Total Recommended Word Count 2,500 Words (Maximum) Please Note: All Assessment Criteria (in LO1 to LO4) must be successfully completed in order to achieve a Pass grade in this Unit/Module. Merit or Distinction grades cannot be achieved/awarded, unless and until LO1 to LO4 have been successfully completed by the Student. Learning Outcomes and Assessment Criteria Pass Merit Distinction LO1 Explore and illustrate the range of venture types that might be considered entrepreneurial P1 Examine different types of entrepreneurial ventures and explain how they relate to the typology of entrepreneurship. P2 Explore the similarities and differences between Entrepreneurial ventures. M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship in both the public and corporate Sector. D1 Critically examine the scope, and development and growth of entrepreneurial ventures. LO2 Assess the impact of small businesses on the economy P3 Interpret and assess relevant data statistics to illustrate how micro and small businesses impact on the economy. P4 Explain the importance of small businesses and business start-ups to the growth of the social economy. M2 Evaluate the differences small, medium and large businesses make to the economy, applying relevant data In addition, statistics. D2 Critically examine how small businesses have an impact on different levels of the economy (local, regional, national) and in an international context. LO3 Determine and assess the key aspects of an entrepreneurial mindset P5 Determine the characteristic traits skills of successful entrepreneurs that differentiate them from other business managers. P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. M3 Explore and examine different lines of argument relating to entrepreneurial characteristics. D3 Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples. LO4 Examine the different environments that foster or hinder entrepreneurship P7 Examine, using relevant examples, background and experience can hinder or foster entrepreneurship. M4 Analyse the link between entrepreneurial characteristics and the influence of personal background and experience to specific successful entrepreneurs D4 Critically evaluate how background and experience influences entrepreneurs, both positively and negatively, by comparing and contrasting examples.