ABC Company: Roles And Responsibilities Of Business, Impact On The Economy, Creativity And Innovation

Company Profile

This report is being written to assist ABC Company in developing their business in various aspects such as roles and responsibilities of their business, how their business can impact the growth of the economy, how they can maintain creativity and innovation in their business, need of establishment of their business.

ABC Company was established in the year of 2014 in the Kowloon city of Hong Kong. ABC Company is an independent shopping website that solely is in the business of selling gym wears and gym accessories at the lowest cost and provide good quality of wears. They provide free delivery to the resident of Hong Kong. ABC Company is a small business, therefore, it has only one office in the Kowloon city of Hong Kong. Other famous websites give a huge competition to ABC Company. ABC Company’s products are not normal gym wears and accessories products they provide products with unique changes in the wear and accessories that can represent customer as fashion ion even in gyms.  The structure of the company is flat as it is a small business with a limited number of employees. They comprised of a manager, marketing executive, four sales officer, accountant and a designer. The future plans of ABC Company are to expand their business and deliver their products outside the boundary of Hong Kong. 

Roles and characteristics of micro, small and medium-sized organization:  

In the county’s economic development the important role is played by the Micro, Small and Medium Enterprises. MSME work as a ground of breeding and nursery of innovation and entrepreneurship. These enterprises play major role in the country’s economic development with the help of their innovative ideas, effective, flexible and entrepreneurial spirit (Srinivas, 2013). Country’s manufacturing output receive a huge contribution from MSME sector. In addition to this, it considerably contributes a major share in the development of employment. The MSMEs is the major contributor to the economic growth and it also encourages equitable regional development (Ketan, 2017).

MSME’s key characteristics are that it generates product as low cost. They have new and innovative ideas that make them unique from other business this increases the capacity of export. Further, MSME generates a large number of opportunities for the people of the country and it also contributes towards a reduction in regional imbalance.

The procedure of converting an invention or idea into goods for which customers are ready to pay. The idea can be called as an innovation when it satisfies the need of people or customers (Web Finance, 2017). Innovation includes the measured presentation of information, thoughts, and creativity in arising value from resources, and comprises all procedures through which innovative ideas are generated and transformed into useful products. Entrepreneurship is both processes of starting new business and study of new business creation both the terms are used interchangeably. The person with an innovative idea and the one who work to generate a product that people are ready to buy is known as an entrepreneur. Entrepreneurship is known as a growth engine of the economy (Shopify, 2017).

Roles and Characteristics of Micro, Small and Medium-Sized Organization

Entrepreneurship has many positive impacts on the economic growth as it is the sole reason behind new and creative innovations which help entrepreneurs to generate income for themselves. With the help of its innovative ideas, they fulfill the demand of the market. Entrepreneurship also generates a large number of employment opportunities for the citizens of country and results in decreasing unemployment levels (Carreea and Thurika, 2002).

In the today’s economy, Intellectual property is a major concern in the daily decisions of the business. New brands, designs, and products that appear daily in the market are the reason behind continuous creativity and human innovation. The motivating force behind these innovations is Small and medium-sized enterprises (World Bank Group, 2013). Their capabilities of creativity and innovation are not always fully utilized as many of the SMEs are not aware of the intellectual property system and about the protection, this system provides in their designs, brands, and inventions. If the creation or invention left unprotected, then a big competitor who is already at the good position can grab that invention and the original inventor will be left without any financial benefits. Sufficient safety of an intellectual property of a company is a critical step in discouraging possible breach and making the ideas in the asset of business with a real value in the market. Captivating the maximum advantage of the IP system help companies to make the profit from their creative and innovative capabilities. A new program is established by WIPO (World Intellectual Property Organization) for the help of SMEs to assist national governments, SME-support institutions and entrepreneurs in enhancing the awareness about IP system globally among the SMEs (DCMSME, 2017).

Innovations can be maintained in SMEs by improving the competitiveness through IP protection. Various new products represent the intellectual property in different ways. Companies those are expanding are facing many challenges in utilizing it in their strategies of the business. SMEs who are concerned about protecting their intellectual property invest their resources and time as it will help in increasing their competitiveness in different areas such as 

• Protecting from the competitors from imitating the product of the company.
• Reduction in wastage investing in marketing and research and development (R&D).
• Developing a corporate identity with the help of branding and trademark strategy.
• Negotiating different IP-based contractual agreements such as franchising and licensing.
• Increasing the company’s market value.
• Improving the access to finance and obtaining venture capital.
• Acquiring new market access.

Recently the attention of Hong Kong government has been grabbed by the role of SMEs in employment generation and economic development as in Hong Kong there are approximately 282,000 SMEs. It includes more than 98 percent of business entities in Hong Kong and 46 percent of private sector employment (Trade and industry department, 2016). SMEs is capable enough to contribute towards economic growth because it generates new job opportunities which result in an expansion of tax base. SMEs are the driving force behind new innovations, ideas, and skills.

Meaning of Entrepreneurship and Its Impact

As compared to big enterprises SMEs generate more employment opportunities and it has been seen that the size class of SME is growing over time, which shows the relation of increasing economy with size class. Therefore, SMEs improve competition and entrepreneurship hence they receive benefits on innovation, economy-wide competence, and aggregate productivity. Further, SMEs are good at monitoring each employee. Small enterprises do not always survive for a longer period as compared to big enterprises, but those who survive for longer period provide huge growth rates of employment. Positive employment development in SMEs can be seen in industry’s most of the sectors where big enterprises might not fulfill the goods demand in an increasing base of customers without the help of SMEs.

SMEs of Hong Kong considerably contributes to the economy of Hong Kong. They cover approx. 98% of business units of Hong Kong business and offer job opportunities to more than 1.2 million people. Further, it contributes approx. 50 % in the GDP of Hong Kong (IPSOS, 2014). The government of Hong Kong has taken step towards the benefit of SMEs. Government is providing relief in the taxes to SMEs in Hong Kong. 

The major agenda behind starting a SME is to receive professional and personal benefits such as work pace, financial independence, to do something productive, to convert innovative ideas into reality, get work environment and so on.

1. Salary potential- If a person works for any company he or she knows about the amount of salary they will get at the end of the month. But starting a SME or own business provide an opportunity to earn a high salary. Al the business activities such as planning, pricing, etc. all will be under the hand of the owner (Johnson, 2017).

2. Choice of work- The owner of SME enjoys freedom and work according to his/her will. They can work in any field they want too. The owner can develop and contribute the new ideas and innovations in the business that increases personal satisfaction. While working in the preferred field owner can bring new ideas for the business.

1. Financial risks- One major disadvantage of starting a SME is to face financial risk. The money that is invested in starting a SME it can be the owner’s saving or borrowing is at risk. Many times owners face huge losses and result in a default in business loans and loss of initial investment (Libraries, 2017).

Difference between Serial entrepreneurship, intrapreneurship, and owner-manager

2. Liability- Most of the liability in SME is of the owner. The owner is liable to answer all the question arisen on him from the stakeholder’s side. The customer can file a case against the owner if he finds any problem in the products (Hamel, 2017).

The company needs to make improvisations in its skills to manage and establish the business effectively.

While setting up a business, at that time projects come in different sizes, the project can demand of advertising or launching, good customer service scheme, staff and time. For this, it is very important for a business to manage the time, resources and successfully achieve the goals (Phibbs, 2013).

SME should focus on their process of sales, majorly at their initial stages when business requires some set of unique skills for recognizing the needs and wants of the customers.  

For SME like ABC Company, they need designing skills as they are providing gym wears and gym accessories with unique and different changes. The aim of ABC Company is to provide something different from its competitors at an affordable price and hence they try to understand the perception and demand of their customers.

ABC Company is an online shopping website it operates their business with the help of IT. Therefore, they should manage their technologies properly so that there must be no disturbance faced by the customers.   

Most of the successful business is existing due to their dedication and vision of an entrepreneur. The size of a business does not matter what matter is skills and attributes of an entrepreneur. The levels of education of different entrepreneurs may vary but they share the same type of characteristics.

Self-motivated- People need some kind of motivation to go to work such as salary, incentives, etc. But entrepreneurs are self –motivates, as in the starting of the business there will be no profit but when business will progress there will be profit. Entrepreneurs get self-motivated because they like challenges. 

Ethics- Entrepreneurs do not need to answer anyone else they are answerable to themselves, therefore it is important for them to possess some basic ethics. Many time businesses experience success by doing cheating and lying, but this results in losing the trust of investors (Page, 2017).

Personality characteristics and purposes of the entrepreneurs define the business environment. It also includes entrepreneur’s lifestyle, personal background, and cultural differences. The entrepreneur must have a feature of acting as numerous personalities at once such as he/she should act as a leader, accountant, technologists, investor, etc. It will make entrepreneur to demonstrate his/her knowledge and skills in a better way (Kozubíková, Belás, Bilan and Bartoš, 2015).

Intellectual Property and Small and Medium-Sized Enterprises

The reason of Mr. XYZ for starting the ABC Company is that he has seen many businesses who use to provide the same type of gym wears, people use to wear almost same designs with the slight changes in colors. While going gym he uses to hear many people talking about the gym wears and its accessories. Their demand was to have something new and unique in the gym wears and accessories that can change their image and fashion. Therefore, Mr. XYZ decided to start a website that can provide unique designs of gym wears and gym accessories.

Are entrepreneurs born or made? This question is asked many times, therefore to answer this, people say that entrepreneurs are born with unique skills, different personality traits and genetic characteristics becomes more successful as compared to other people who are hardworking or risk takers. It has been agreed that entrepreneurs can be made through mentorship, education, and knowledge. People have a different type of skills that make them successful in their career. Teamwork is important skill necessary for the success of the business as only one person cannot do all the things. Mr. XYZ believes in teamwork and believes that different minds can bring change and success in the business, therefore he has appointed people for different works such as managing accounts, designing the products, etc.

Job satisfaction- Startup provides high satisfaction to entrepreneurs as they working on their dream projects and they are the owner of the business, therefore, there is the flexibility of work. In the reward, they receive an improvement in their standard of living and good lifestyle (Business, 2015).

Financial risk- Many entrepreneurs start their business with the help of government schemes and loans which results in inconsistent income. If a business has an excess of liabilities due to maintaining a regular flow of cash and if the business is not able to pay those liabilities it will result in winding up of business (Bryant, 2017). To reduce financial risk, business should maintain a balance between credits and debits, they should avoid taking loans and credits from others.

Conclusion

In the conclusion, it can be said that ABC Company is working well and receiving good profit by giving good competition to other websites. The success of the business is due to the innovation and creations, therefore ABC Company should regularly work on its offering and try to bring new for their customers. Further, the company should also consider all the risk that they can face and should try to overcome them.

References

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https://smallbusiness.chron.com/good-characteristics-entrepreneur-18385.html

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