Entrepreneurship

and Innovation

Table of Content
Name of the Topic

Page Number

1. Introduction

03

2. Framework for new business

03

3. Options available for new venture

04

4. Measures need to be taken by Socedo

06

5. Conclusion

06

6. References

07

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1. Introduction
Since the beginning of business there are always a group of people who have different ideas
regarding business and they want to implement those ideas into real business. These people
are in generally known as entrepreneurs. The work entrepreneur has come from French
word entreprendre that means to undertake. Enterprises the one and the only one who
undertakes the responsibility to organise, set of goals and make the plan successful that
(Nyenrode, 2013). Individuals are known as group of people who can see opportunities
where other fined chaos or maybe confusion. In this report interpret that Mr. Assem Badhsah
and his entrepreneurial activities will be discussed. According to the case study it can be
seen that he is all out of a successful business but very recently he has planned to open new
venture. Based upon the case study few strategical theories structures will be discussed.
Later on the options that are available will also be critically evaluated and finally at the end
his suggestion will be made in order to help the new venture to get off the ground.
2. Framework for new business
It is very important for any business person or entrepreneur to create a strong framework in
order to make the business successful. Framework is also very important as it is quite
related to organisations future strategies which will lead to achieve organisations goal and
objective (Heracleous, 2003). Creating the framework is even more important for
entrepreneurs. According to scholars once entrepreneur have found the opportunity they will
try to put those ideas into a framework which will help them to succeed in their business
(Shane and Venkataraman, 2003). There are several types of frameworks are available in
order to help entrepreneur is to be successful in the ventures. Different entrepreneurs use
different theories and framework according to the nature of their venture. In this case study,
it can be seen that new business venture will be a mixture of innovation and
entrepreneurship. In recent years it has become a very popular topic for the scholars. Many
scholars have worked to find a relationship between innovation and entrepreneurship in
recent years. It is important for the entrepreneur to understand the nature of the innovation
and the need of the innovation for the particular market. Based upon this knowledge
entrepreneur can use and utilise his innovative ideas or products as successful business
determinant (Hindle, 2002). To turn an innovative idea into a successful business
entrepreneurs should follow the framework. As it has mentioned earlier there are few
frameworks every level but according to this case study the author believes Mr. Aseem Shah
should follow framework provided by Hindle in 2013. The framework combines the idea of
innovation and entrepreneurship in a way that can be resulted in successful business
operation.

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(Source: KevinHindle.com)
This framework suggests that when entrepreneurs gathers new knowledge through invention
they should work in a way that the knowledge trust turn into value through several activities
such as evaluation of opportunity, personal commitment to the project and managed
implementation in order to make the effort successful. From the case study it can be seen
that Mr Aseem is already on the successful business and now hes trying to move into a new
one which is also innovation based and that is why if you can act like the selected framework
in a successful way that it will be helpful for him to generate strategies which will lead the
business into an successful organisation. In order to produce and sell software and the
private companies he should understand the opportunity of the activities and also developed
his personal commitment was operation. After commenting those two tasks they should
manage the implementation implement to get the best result from the innovation.
3. Options available for new venture
From the case study can be seen that Mr Aseem has already operating successful business.
His company Uptown Treehouse is very successful and the case study shows that his
turnover from the company is nearly $1.3 million. But from the success of this company is
understood that a major sales is coming from creating new software for leading companies.
That is why he teamed up with Mr Yu and decided to open a new adventure that will be
wholly based on creating and selling software. In order to do so he is now in a position
where it efficiently to be made and options need to be evaluated that will help him to take
decision about his existing company. According to the case studies he has mainly 3 options.
a) The 1st option is available to Mr Aseem is to continue with his existing company as
it is performing very well. In the case study we have come to know that the revenue he
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earns from Uptown Treehouse Company is significantly high. According to market experts
he should continue with existing his business that is successfully running and should be
emphasising more on this in order to make the company even more profitable. Experts also
suggested that in this situation it should not be a great idea to leave the company in other
people hand or sell the company went it is performing at its peak level. Mr Asim should
also consider the issue that venture might not be as successful as this one and then he will
be facing huge pressure and regret the decision. However, entrepreneurial work is all
about passion and interest. It is understood that if entrepreneurs is not having enough
interest and enthusiasm than their result will not be good in the long run. That is why it in
one sense Mr Aseems decision of continuing with the existing business might not be
fruitful in the future (Karnien and Swatcz, 1982).
b) As a 2nd option Mr Aseem can continue with both business and divide his time and
money in both of the ventures. He can devote his time into 90% and 10% between the new
company Socedo and Uptown Treehouse. Many investors have successfully adopt this
option and made both of their ventures successful. Some scholars such as Fred Dewey
suggested that Mr Aseem can utilise more time in Socedo as his existing Treehouse
Company is performing well and it looks like it needs comparatively less attention and
investment. He also suggested that Aseem can use profits generated from Treehouse
Company as an investment into the new venture. In this way he can keep both of this
companies. In other point express also suggested that Aseem has two options in order to
find his new venture. He can either raise funds from external investors or he can use profits
from his existing company. However, there are risks related to this option as it can happen
that Aseem will try to focus on both of the business and eventually lose control. As a result
he will face losses from both of his ventures. He is also considering recruiting somebody
else to run the Treehouse business on behalf of him. But it is understandable that new
general manager might not have similar experience and enthusiasm about the company.
That is why, it seems that Mr Aseem and will not be able to rely completely on general
manager. And if the existing company fails to generate profit than the whole idea of using
profits from the existing company as investment into new venture will also fail (Teece,
2006).
c) In option number three, it was understood that Mr Aseem is planning to sell his
existing company and invest those money into this new venture. This Aseem is planning to
do so as you can realise that the existing company has limited linear growth curve based
on the number of customers and the number of employees that need to be recruited.
These options have both extreme risk and potential. It poses the greatest risk as he is
planning to sell a successful and efficiently performing business and planning to invest into
a new business and if the new venture fails he will put himself into a serious situation. On
the other hand it is understood that Socedo has more potential than the existing business
as already different medium to small sizes companies and few large companies have
shown interest in buying software from Socedo. It is also true that in the new venture which
are similarly certain products rather than customer service which is easier to market and
usually generate more sales revenue.
After discussing all the 3 options it looks like all the options have their own risk and potential.
That is why; Mr Aseem should evaluate his options carefully and make a choice that would
be most suitable for success in the future.
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4. Measures need to be taken by Socedo

It is always crucial for a new business to make an appropriate start. Thousands of
companies are opening almost every day but a very few of them can reach the success.
From the case study it is understandable that Mr Aseem has already good experience on
running business at the same time it also found that Mr Aseems existing company
Treehouse Company are making handsome profit. That is why, it can be expected from Mr
Aseem that he will know how to give a company a perfect start. There are a few measures
that need to be taken before asserting a company. Some of them will be determined below.
New ventures should operate its operation according to legal obligation and rules set by
regulatory bodies. From the case study it can be seen that Mr Aseem has already started the
new business which means that he has laid the fundamental for a new organisation. As in
his existing venture this Aseem has worked with social media, he should use the experience
and knowledge of social media in marketing comes in order to promote his new venture. A
study already suggest that Socedo is supplying software to nearly 200 companies but most
of them are small to medium-size and a very small amount of them are big companies. Mr
Aseem should emphasising on getting big companies as their clients so that company can
get well liquidation in the market as well as receive larger sales revenue. Scholars
suggested that for a new venture it is very important to understand how much need to be
spent. In the new venture Mr Aseem should not be spending too much or too less
(Robinson, 2013). Market research is also very important for any new venture but it looks
like Mr Aseem has already created a broad customer base that is why what he now needs to
do is to maintain the quality of the product and give them proper service to retain those
customers. At the same time if Mr Aseem and his partner decide to take investment from
external investors that they should reach under a written agreement where everything will be
detailed about the investment and return on capital that have been employed by both
parties. It is also very important that as Mr Aseem is operating his new business in
partnership all the terms and conditions and liabilities and responsibilities of the partners
need to be legally documented (SBA, 2012).
5. Conclusion
Entrepreneurship an innovation are closely related topics. Both of them need courage, hard
work, determination and ability to create something new. According to the case study it can
be seen that Mr Aseem Badshah has all those qualities. For this reason it can be expected
that if he follows all the necessary steps and options available to him it should not be a
problem to create a successful business and achieving sustainable development and growth
from the business.

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6. References
Nyenrode (2013). Entrepreneurship and Strategic Development. [ONLINE] Available at:
http://www.nyenrode.nl/FacultyResearch/BMI/CE/Research/Pages/Entrepeneurship-andStrategic-Development.aspx?AspxAutoDetectCookieSupport=1. [Last Accessed 7th May,
2014]
Gemconsortium (2014). THE GEM MODEL. [ONLINE] Available at:
http://www.gemconsortium.org/Model. [Last Accessed 11th May, 2014]
Drucker, P.F. 1985. Innovation and Entrepreneurship. New York: Harper & Row.
Heracleous, L. (2003) Strategy and Organization: Realizing Strategic Management.
Cambridge University Press.
Hindle, K. 2002. small-i or BIG-I? How entrepreneurial capacity transforms 'small-i' into 'Big-I'
innovation: some implications for national policy. Telecommunications Journal of Australia,
52(3): 51-63.
kevinhindle.com (2013). The fundamental framework. [ONLINE] Available at:
http://www.kevinhindle.com/fundamentalframeworkthevaluecreationtrinity/. [Last Accessed
8th May, 2014]
Teece, D.J. (2006). "Profiting from Technological Innovation." Research Policy: Implications
for integration, Collaboration, Licensing, and Public Policy.
Karnien, M.I., and Schwartz, N. L. And is (1982). Market Structure and Innovation.
Cambridge: Cambridge University Press.
Robinson, N. (2013). Five Things You Should Know Before Starting A Business. [ONLINE]
Available at: http://www.forbes.com/sites/yec/2013/06/11/five-things-you-should-knowbefore-starting-a-business/. [Last Accessed 7th May, 2014]
SBA (2012). 10 Steps to Starting a Business. [ONLINE] Available at:
http://www.sba.gov/content/follow-these-steps-starting-business. [Last Accessed 9th May,
2014]

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