HND Assignment Application

Qualification Unit number and title

Pearson BTEC Level 4 HND Business Unit 9

Diploma Entrepreneurial Ventures

Student name Assessor name

Marwa Alageili
Date issued Formative Date Completion Date Submitted on

Assignment title Understanding of Entrepreneurial Ventures /Entrepreneurs

In this assessment you will have the

Learning Learning Assessment Task Evidence
opportunity to present evidence that
Outcome Outcome Criteria no. Report
shows you are able to:

Investigate the scope of entrepreneurial

Examine what
P1 Ventures, using a variety of examples in 1
it takes to be
the Libyan Market
an
LO 1 entrepreneur
and the scope
of
entrepreneurial Examine the traits and characteristics
P2 1
Ventures associated with entrepreneurship-

Explain what is meant by an

‘entrepreneurial Mindset’, and determine
Explore the P3 2
the entrepreneurial mindset of Adam and
concept of Duncan
entrepreneurial
mindset and
LO 2
its contribution
to
entrepreneurial Examine skills and characteristics of Adam
ventures P4 Schwab and Duncan Bannatyne associated 2
with their entrepreneurial mindset

Assess the Interpret relevant data and statistics to

impact of SMEs relate how micro and small business
LO 3 P5 3
(Small medium ventures impact Libyan economy a
enterprises) on different levels
the economy
LO 4 Explain the P6 Discuss the difference and similarities 4
between public and corporate
 importance of
intrapreneurshi
p in both
public and intrapreneurship
corporate
organizations

Learner Declaration

I certify that the work submitted for this assignment is my own & research sources are fully acknowledged.

Student signature: Date:

Higher Grade achievements (where applicable)

Achieved? (√ or ×)

TaskNo.
Grade Descriptor
1st Re-
Submission submission

M1 Evaluate the similarities and differences between

entrepreneurial ventures and the traits and 1
characteristic of entrepreneurs in those ventures, by
giving examples of each type

M2 Determine the ways in which the entrepreneurial

mind-set can be encouraged and what it can bring to 2
a new venture- and apply it to case study1 and case
study 2
M3 Using relevant data and statistics, compare the
differences between micro, small, medium and large
business and their impact on the Libyan economy 3

M4 Explore the benefits of intrapreneurship and its

contribution to competitive advantage in
organization 4

D1 Critically examine entrepreneurial ventures the

traits, characteristics and mind-set associated with 1,2
entrepreneurship, using a range of examples

D2 Appraise impact of different businesses on

different levels (international, national, regional , 3
local )of the Libyan economy using appropriate data
and statistics
D3 Evaluate the use of intrapreneurship and the
benefits it can bring to organization 4

Evidence Evidence
Summary of Evidence Required By Student
Checklist Presented
Assignment brief
Unit number and title Unit 9: Entrepreneurial Ventures

Qualification
Start date
Deadline/hand-in

Assessor Marwa Alageili

Assignment title Understanding of Entrepreneurial Ventures /Entrepreneurs

Purpose of this assignment

Entrepreneurship is about people who have dreams and take their career into their own
hands, leading it in the direction of their choice. More recently it has also become about
transforming the world by solving big problems
The purpose of this assignment is to illustrate the different types of entrepreneurial ventures
and the characteristics associated with the entrepreneurs in these ventures. Further to this,
understanding the different size business on the economy and the contribution they can all
make to society, will also show the need for Intrapreneurs and the impact of disruptive
entrepreneurship.

Scenario

To understand the entrepreneurial ventures and the type and characteristics of entrepreneurs , you need to
dive in and investigate the following two different case studies of the some successful entrepreneurs:

Case Study 1: Adam Schwab and Lux Group

Lux Group started life with just one employee, offering local deals in Melbourne through a single website.
Launched by Adam Schwab and Jeremy Same in July 2010, DEALS.com.au sold everything from day spa to
restaurant offers, based on the Groupon flash sales model. By 2017 the business had changed its name and
grown to become one of the largest e-commerce businesses in Australia and New Zealand, comprising 13
websites with a turnover of more than AUD300 million annually. Key properties include Luxury Escapes –
one of Australia’s most popular travel websites with a turnover of more than AUD200 million in fiscal year
2017 (www.smh.com.au/small-business/managing/serialentrepreneur-adam-schwab-on-stepping-back-
fromluxury-escapes-20160830-gr4fnk.html), Brands Exclusive, living Social, Cudo and The Home.

Schwab is the son of a builder and an accounting teacher. His first experience with the business world came
as an 11-year-old, when he realized he could exploit the captive market for lollipops by selling them to other
children on his school bus. After attending Caulfield Grammar School with Same, the pair would later start a
number of successful small ventures together, including Digi Cat, which sold CDs containing copies of high-
scoring assignments to students across Australia: This wasn’t a huge business but relatively speaking, it was
a nice little earner for a couple of 18-year-olds. After leaving school Adam studied Commerce/Law at
Monash University where he also had a number of part-time jobs, including ripping tickets at a cinema,
working in a supermarket and as a nightclub host. During university he set up a business called Digi Law by
replicating the Digi Cat model, but selling notes to law students. Schwab managed to convince the law
bookstore to sell the product, leading students to believe that it was somewhat more official than it actually
was. Despite being successful, the business was forced to close when the Dean of the Law School banned
students from using it. After leaving university, Schwab started work as a corporate lawyer specializing in
mergers and acquisitions with Freehills. However, in late 2004, he and Same spotted a commercial
opportunity in the property market in Melbourne – renting and furnishing inner-city apartments, which they
would then offer to ‘high end’ backpackers and travellers. With very little capital and borrowing an old
trailer owned by his father, Adam scrounged cheap furniture to fit out their first apartment. The pair soon
realized that they would be able to make a reasonable margin by offering the apartments to small groups for
shorter periods. The model would later morph into offering apartments to corporate clients under the Living
Corporate brand: We could put one corporate client in an apartment instead of four travellers, which was a
lot more popular with owners.

As the Melbourne property market was booming, Adam and Jeremy acquired six properties which would
within a couple of years be sold for a profit of more than AUD1 million. This cash would allow them to fund
a business that was scalable on an international basis without raising any external finance. Searching for
ideas from around the world, Schwab and Same noticed the success of the Top Table restaurant-booking
business in the UK (now a part of global travel giant, Priceline).

In late 2009, they started working on My Table, a similar discount-based restaurant booking site and, in
parallel with DEALS.com.au, they developed their My Table business into a takeaway food-ordering
website before selling it to Catch Group. The business would eventually become part of Menu Log and was
sold in 2015 to the UK-based giant Just Eat for AUD855 million. Schwab continues to run Lux Group which
grew strongly in 2017 and has expanded from Australia into New Zealand, India and Singapore. In August
2017, Lux Group launched its first retail concept store in the Melbourne City Centre, marking the online
group’s first foray into high street retail.

Visit the website:luxgroup.com

Case Study 2: Duncan Bannatyne, Dragon

Duncan Bannatyne is probably the best known entrepreneur in the UK because of his appearances on the
BBC TV series Dragons’ Den rather than his achievements as a serial entrepreneur. His life has, however,
been a colourful one. He was born in 1949 into a relatively poor family in the town of Clydebank, Scotland.
The second of seven children, his father was a foundry-man at the local ship yard. When told that the family
could not afford to buy him a bicycle Duncan tried to get a job delivering newspapers for the local
newsagents, only to be set the challenge of finding 100 people who wanted a newspaper to be delivered. By
knocking on doors he collected the names, got his newspaper round and eventually was able to buy his
bicycle.

Duncan left school at 15 to serve in the Royal Navy. He served for five years before receiving a
dishonourable discharge – after 9 months detention – for threatening to throw an officer off a jetty. He spent
his twenties moving from job to job around the UK, including taxi driving and selling ice creams, ending up
in Stockton-On-Tees. It was here, in his early 30s, that Duncan’s entrepreneurial career started when, using
his personal savings; he bought an ice cream van for £450. He built this business into a fleet of vans selling
‘Duncan’s Super Ices’. Even here he showed entrepreneurial flair. He was innovative – he started using a
scoop that speeded up serving and made a shape like a smile in the ice cream, which the children loved. He
was good at spotting opportunities – he bought one pitch in a local park for £2000 which gave him profits of
£18 000 in one summer. He eventually sold the business for £28 000, but not before he had spotted another
opportunity. In the 1980s the government started helping unemployed people by paying their rent. Duncan
used his profits from the ice cream business to buy and convert houses into bedsits for rent. He rented to the
unemployed, so the rents were guaranteed by the government.

Duncan used the proceeds from the sale of the ice cream business – and almost everything else he owned –
to move into residential care homes with a business partner. He took out a bank loan, re-mortgaged his own
home and started building up credit card debt. The building costs of the care home were to be financed by a
70 per cent mortgage, but this would only be released when building work was complete and the home was
available for occupation. When building costs for the first home spiralled out of control and no more funds
were available, he, his partner, friends and family decided to finish the work themselves. The total costs for
the care home came to £360 000, and nearly bankrupted Duncan. But the bank then valued the finished
home at £600 000, giving a mortgage of £420 000. This meant that Duncan could recover his costs, pay off
his debts and still have equity to put into the next care home. Using a mix of retained profits and borrowings,
and by offering shares in the company, he expanded the number of homes.

‘When I opened my first nursing home, I had considered newsagents and bed and breakfast establishments
but then Margaret Thatcher started to revolutionise care for the elderly … I spotted an opportunity. I came to
the conclusion that landlords who owned nursing homes could make a lot of money from the scheme. I took
advantage and bought a plot of land with a bank loan and set up my first nursing home in Darlington as soon
as I could. When that was full, I paid off all my debts, bought another plot and repeated the process until the
portfolio included 45 homes.’

The company was called Quality Care Homes and it was eventually floated on the Stock Exchange. Duncan
also went into children’s nurseries with the Just Learning chain. In 1996 he sold Quality Care Homes for £26
million and Just Learning for £22 million. By now, however he had expanded into health clubs with the
popular Bannatyne’s chain.

‘I remember while I was working in the nursing home industry, I injured my knee and used to travel 30
minutes to a local gym in the North East for exercise and physiotherapy. While working out my knee, I also
tried to work out the gym’s business plan. I knew the membership fees and the number of members and I
calculated approximately how much the building cost because I sat and counted the number of tiles on the
ceiling and equated them to square footage in my nursing homes. I did the necessary sums and worked out
that, if I opened my own health club, I would make a 35%-40% return on capital. It was a no-brainer.’

Daily Telegraph30 July 2009 By buying plots of land next to the health club sites Duncan expanded into the
hotel business. He worked out that by sharing staffing, reception and other facilities he could save costs and
offer hotel residents use of the health club facilities during their stay. So Bannatyne Hotels was born.
Duncan has since acquired 26 health clubs from Hilton Hotels making it the largest independent chain of
health clubs in the UK. He has also launched Bar Bannatyne and, in October 2008, opened Bannatyne Spa
Hotel in Hastings. Duncan’s wealth is estimated by the Sunday Times2009 Rich List at £320 million, which
places him as the 167th richest person in the UK. He is also by far the wealthiest of the Dragons in the Den.
Task 1 (L.O.1: P1, P2, M1 and D1)

Guidelines:
In this task you are asked to examine what it takes to be an entrepreneur and the scope of
entrepreneurial ventures, by defining entrepreneurial activity and enterprises , the characteristics of
entrepreneurial ventures as well as the traits and characteristics of entrepreneurs

Task 2 (L.O.2: P3, P4, and M2)

Guidelines:

In this task you should explore the concepts of entrepreneurial mindset and its contribution to
entrepreneurial ventures, through defining the entrepreneurial spirit and entrepreneurial mindset, the
skill and characteristics that typify entrepreneurs

Task 3 (L.O.3: P5 and M3)

Guidelines:

During this task you will assess the impact of Small, medium size enterprises on the economy by
illustrating the business size and its importance on the economy, and how it growth based on the
importance of the technology, innovation, sustainability and adaptability for both ventures and the
economy. Also to show how the contribution of medium and large firms to the economy at international,
national, regional and local level.

Task 4 (L.O.4: P6, M4 and D2)

Guidelines:

In this task you should explain the importance of intrapreneurship in both public and corporate
organization. By defining the intrapreneurship and the development of entrepreneur in public and
corporate organizations, as well as the difference between public and corporate entrepreneurship.
Further to this you should explore the importance of innovation, sustainability and adaptablility in
business and the benefits of intrapreneurship and how it can contribute to a competitive advantage for
business.
Notes:
Recommended Resources:
Textbooks:
BLUNDEL, R.LOCKETT,N AND WANG (2017), EXPLORING
ENTREPRENURSHIP 2ND Ed.
BURNS.P(2016), ENTRERPRENRUESHIP AND SMALL
BUSINESS 4TH EDITION
SCARBOROUGH N AND CORNWALL, R (2018). ESSENTIAL
OF ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT. 9TH Ed.

Websites:
www.entrepreneur.com
Www. Entrepreneurhandbook.co.uk
www.forbes.com

Remember:

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