How to Set Up a Small Business from an Entrepreneurial Mindset
Characteristics of Industrial Experience and Other Requirements 5 1. Merits and Demerits of SMEs with Other Types of Organizations 8 1. Types of Business Ventures 9 CHAPTER TWO 12 2. Social Impact of Entrepreneurship to the Society. Features of Micro, Small and Medium-Sized Enterprises 12 2. Green Consulting Agency developed the report based on the company’s profile. Organization Profile and Reasons for Starting a Business Sunny Events and Promotion Company is a small and medium sized company that strives to gain recognition as the paramount resolution benefactor in event management. This company is owned by Mr. Kimmich and comprises of young team of employees with creative minds who serve with dedication in order to maintain professionalism (Scarborough, 2014). Sunny Events and Promotion Company aims at taking all departments of management in events to the new improved levels.
Kimmich likes being in control of things. Mr. Kimmich has a good personal background and his education level is excellent. He is a well learned person with a bachelor’s degree in hospitality management from Zitech College. Moreover,Mr. Some of these internal sources include Mr. Kimmich savings plus donations from friends and family members. They donated the funds willingly since they already knew Mr. Kimmich well enough. At times, friendship may come to an end if the funds donated go to waste when the venture is terminated. Some of the requirements were mandatory and others optional. Mandatory requirements were those that Mr. Kimmichhad to obtain before commencing business. On the other hand optional requirements allowedSunny Events and Promotion Companyto commence operating but with time satisfy those requirements.
Determining legal as well as financial needs is a compulsory requirement for starting and operating a business venture. Sunny Events and Promotion Company protected its intellectual property due to new services and commodities entering the market promptly and brand designs that continued to take over the market due to innovation. Some of these property included a new idea of planning weddings via a website without need to meet clients physically and this idea generated cash inflows into the company. Therefore patent rights safeguardedSunny Events and Promotion Company from un-authorized copying or take-overs. Merits and Demerits of SMEs with Other Types of Organizations 1. Merits of SMEs with Other Types of Organizations Sunny Events and Promotion Company had many advantages such as being in close proximity with its customers.
Partnerships and limited companies do not encounter severe funds problems like sole proprietorships since they have more internal sources of funds and they do not have to look for external sources unless it is absolutely necessary. Sunny Events and Promotion Company encountered persistence crisis despite them being flexible. Sunny Events and Promotion Company experienced low power of bargain. This was brought about by suppliers and customers who posed difficulties in achievement of benefits for Sunny Events and Promotion Company. Limited companies do not encounter such problems because they have more power than the suppliers and buyer hence they dictate the prices of their commodities. Disadvantages of Franchising Sunny Events and Promotion Company experienced little demerits compared to its many merits while acquiring Red Event Company.
The expectations on costs increased more than anticipated and Sunny Events and Promotion Company struggled a little while commencing business. Red Event Company shares all its profits with the Sunny Events and Promotion Company and sometimes future difficulties may be experienced when it comes to selling the franchise because the buyer must get accreditation from the franchisor. Mergers and Acquisitions Merger takes place when two or more distinct entities come together and voluntarily combine to form a new company. This means that the entities willing to merge are almost of same or comparative size and the management is not dismantled after merger process is complete (Chapman, 2016). Social impact can be categorized into negative and positive impacts. Some of the positive impacts that Sunny Events and Promotion Company posed to the society were proper waste management, setting of prices was fair and Sunny Events and Promotion Companycreated job opportunities to the people by recruiting some employees from within where Sunny Events and Promotion Company was located.
However, Sunny Events and Promotion Company posed some negative impacts to the society such inadequate motivation and low salary payment to personnel. Features of Micro, Small and Medium-Sized Enterprises The characteristics of Sunny Events and Promotion Company differentiateit from other types of business ventures. The income and profits from Sunny Events and Promotion Company is basically lower than that of organizations operating on a bigger scale. This means that Sunny Events and Promotion Company had to alter its strategies of development to fit those of Singapore. Each country possesses specific challenges and the opportunities that are not only specific but also unique. This made Sunny Events and Promotion Company to alter the priorities when establishing the venture in Singapore. Micro, Small and Medium-Sized Enterprises in Singapore In Singapore, SMEs are entities who own investments of $15 million or less in case it is in production industry.
The size of employee team should be two hundred and below for services providing industry. Analysis of Entrepreneurs, their Characteristics, Roles and Economic Impact of Entrepreneurship Sunny Events and Promotion Companyhas posed some economic impacts such as providing a platform for expanding the market. It has also allowed healthy competition in the economy by generating income to the economy. Moreover, Sunny Events and Promotion Companyhas spearheaded market penetration to the global economy. Analysis of an Entrepreneur An entrepreneur is an individual who accepts risk and starts a business with the aim of making profits. Mr. Kimmichpossesses a creativemind that explores innovativeness when carrying out work. This creativity is supplemented by passion and enthusiasm towards work. Nevertheless, Mr. Kimmichis excellent when it comes to management of time.
Role of Micro, Small and Medium-Sized Enterprises Sunny Events and Promotion Company plays a significant role in country’s growth. Financial Analysis These are documents prepared by organizations to ensure that accuracy is practiced to aid in taxation process and other purposes such as investment and acquiring financial assistance. Table 3: Financial Statement Sunny Events and Promotion Company Profit and Loss Statement, for the year ended June 30th 2018 2018 forecast 2017 2016 2015 HKD ($) HKD ($) HKD ($) HKD ($) Sales 4250000 3250000 250000 150000 Less: cost of goods sold 215000 175000 80000 50000 Gross profit 210000 150000 170000 100000 Less: operating expenses Rent 15000 15000 15000 15000 Salaries 20000 20000 20000 20000 Advertising 3500 3500 3200 3000 Other utilities 4500 6700 7300 7000 Depreciation 4000 3400 3000 5000 Total operating expenses (47000) (48600) (48500) (50000) Operating profit E. B. I. T 163000 101400 121500 50000 Interest expense 5000 5000 5000 5000 Taxes 14600 9000 11000 7000 Net profit E. The cost of sales is due to advertising expenses and the research and development fees. Salaries remained constant because the firm did not hire no suffer employee turnovers.
Net income increased due to expansion of gross profit and asset returns and also due to favorable change in Sunny Events and Promotion Company operations. Demographic Analysis of the Target Market Demographics can be defined as consumer identifiers such as gender, occupations, incomes status and also educational background. A concrete data about customers enables an entrepreneur to acquire a target demographic. The company carried out both qualitative and quantitative risk analysis and through risk analysis, Sunny Events and Promotion Company was able to identify risks that may be present in their projects and found ways to curb those risks and gain maximum returns (Morris, 2017). Moreover, the management staff of Sunny Events and Promotion Company made sure that they paid attention to matters concerning risks.
Ethical risks weren’t ignored either since innovation must be accompanied by taking of risk. Sunny Events and Promotion Company strived to ensure that the rewards they pursued were sustained by proper management of risk which the company faced. However, the company achieved rewards from performance because there were minimal anticipations of required standards which lead to optimal satisfaction. Besides, large enterprises have the capacity of less than two hundred employees and setting up Sunny Events and Promotion Company from an entrepreneurial mind-set took a good idea and proper plan. Green Consulting Agency found that Sunny Events and Promotion Company was established in 2014 and has tried to spread it wings to other major cities in the country. Their major goal being to achieve management coordination locally in order to improve company strengths in all fields.
The company believes that the best business venture is brought about by satisfied customer and the mission is delivering resolutions that not only satisfy customers but also exceed what they expected. Using Sunny Events and Promotion Company as an example, the agency found out that Micro, Small and Medium Enterprises have a major role in the economy especially those in Singapore being the backbone of economy. Each country possesses specific challenges and the opportunities on the other hand are also unique. This in turn makes the entrepreneur to alter the priorities when establishing the venture in the foreign country. Recommendations • Sunny Events and Promotion Company should strive to develop global links and networks within the next two years. • Sunny Events and Promotion Company should create new contacts and become partners with other business ventures in the next six months.
• Sunny Events and Promotion Company should merge or acquire another entity in order to improve its performance as soon as possible. Corporate entrepreneurship and job satisfaction among middle managers in the high-technology industry. Diss. University of Phoenix, 2016. Godhania, Sonal Arjun. Fast fashion: the dynamic capabilities underlying project management in the UK fashion industry SMEs. Thomas Zimmerer, and William Naumes. Effective small business management. Merrill Pub. Co. Zimmerer, Thomas W.
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