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Entrepreneurship in micro-business

Small food shops present business condition considering the pandemic in Stockholm

Written by Samsur Rahman, Yasmin Akther

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2020

Abstract

Master Thesis: Entrepreneurship Entrepreneurship is a way of thinking; reasoning and actions that focus on opportunities and are driven by great leaders. When inventors create new things, entrepreneurs gather and integrate all the resources needed to turn the invention into a viable business. Entrepreneurship leads to the development and deployment of value, not only to the owner but also to all customers and stakeholders. The entrepreneurial process involves all functions, activities, and actions related to perceiving opportunities and creating organizations to pursue opportunities. The key elements of entrepreneurial success are: excellent entrepreneurs, efficient management team, useful resources and excellent market opportunities. Entrepreneurs are recognized for their innovative, experimental, and active attitudes in opening up new markets (Zhang, Groen, and Belousova, 2018). Therefore, entrepreneurship is the driving force in the economy, especially because of entrepreneurial innovation (Fuellhart and Glasmeier, 2003; Maxwell and Stone 2004). Entrepreneurs come up with new ideas, have a strong mindset to face any challenge, overcome the crisis of the enterprise, and seize the immediate opportunities and gain benefits. 2.2 Defining a framework for entrepreneurship Bolton and Thompson (2003) provide a framework for defining entrepreneurs, based on a six-character theme: entrepreneurs who focus on success pursue the best opportunities, and they avoid chasing every choice. Most successful entrepreneurs limit the number of projects they pursue. The advantage is executed by people with entrepreneurial spirit. They also pursue opportunities with great discipline. Creativity Creativity is a source of ideas and opportunities. Entrepreneurs are enthusiastically looking for new opportunities. They are always looking for opportunities to profit from changes. EgoEgo has six components, divided into inner self and outer self. Inner self-contains motivation (usually a desire to achieve, make a difference, and may even "leave a footprint"), self-confidence, and dedication. The external self is the internal control point of the entrepreneur, eager to control his own destiny. Team entrepreneurs should be able to find and select the right people, and build these people into an effective entrepreneurial team. According to Bagchi (2006), the “A” team will be technically competent, have complementary skills, have multi-tasking capabilities, and have a common vision. The research topic: the entrepreneurial spirit of micro-enterprises; considering the Stockholm pandemic, small food stores are currently Author: Samsur Ra​​hman and Yasmin Akther enjoy personal integrity and mutual trust, can question and disagree with each other, are flexible, and have a sense of humor. 2.4 The Swedish government’s initiatives to support the SME sector “The Swedish government is now proposing other measures to reduce the economic impact of the COVID-19 virus outbreak. In order to particularly reduce the impact on SMEs, Swedish entrepreneurs are now presenting a crisis A package plan. A central government loan guarantee has been proposed to make it easier for companies to obtain financing. The proposal means that the central government will provide banks with 70% of new loans to companies that are in financial difficulties due to the COVID-19 virus but are otherwise sound Provide guarantee. The guarantee will be issued to the bank, and the bank will provide guaranteed loans to the company. The loan guarantee is mainly for small and medium-sized enterprises. However, there is no formal restriction on the scale of companies participating in the program. The government expects that the guaranteed loan will not be used for the company’s senior management Staff bonus or variable salary or profit withdrawal, unless it is equivalent to the normal salary withdrawal. The Swedish National Debt Office will manage the guarantee and recommend that each company be allowed to borrow up to 75 million Swedish kronor, but there are exceptions. The bank will apply to the Swedish National Debt Office. The guarantee fee is paid to obtain the guarantee. The fee will be determined according to the actual risk level of the borrower and set by the credit institution. The risk assessment will be carried out in accordance with the credit evaluation process of the credit institution. If the credit guarantee must be repaid, the central government will pay the guaranteed loan amount, This will damage the central government’s budget balance and net loans. The guarantee fee that will be charged means that the central government’s budget balance and net loans will slightly improve. It is very difficult to assess the situation, but overall, in the long run, the guarantee system is expected to be self-sustaining. Raising funds. Loan guarantees should be provided as soon as possible; this is why the government is preparing the proposal for timely consideration. The European Commission is also preparing for rapid approval. Companies can apply for government credit guarantee loans by contacting banks. The proposal will be proposed from March 1, 2020 to The employer’s social security contributions will be temporarily reduced during June 30 so that only pension contributions can be paid. It is recommended that this reduction should be applied to a maximum of 30 employees, and that part of the employee’s salary does not exceed SEK 25,000 per month. This Each employee is required to receive a tax deduction of up to 5300 SEK per month. In order to provide equal relief to self-employed individuals, it is also recommended to reduce personal donations. The public finance cost of the proposal is estimated at 33 billion SEK. Read Less