- Internal Code :
- Subject Code : BUMGT5977
- University : Federation University
- Subject Name : Management
Entrepreneurial Theories, Cases and Processes
Executive Summary of Prospa Groups Ltd. Analysis
Prospa Groups Ltd. was started in 2011 as an online loan render facility providing loan to small and medium-sized businesses. The entrepreneurial theories are used to analyse the process and task structure of Prospa Group. They came up with a start-up idea where they fund small business and provide them with ease in repayment. The company was co-founded by Greg Moshal and Beau Bertoli in 2011. The market demand of small loan facility is seemingly high, and this was one of the major driving factors behind the formation of Prospa group. . They developed a website which provides access to the small business owner to view the loan requirement and apply. The services and assistance provided by them are granting loan ranging from $2000-$150,000, no repayments for the first six months, no assets security needed, no fees paying for first six months and no interest on unused funds. They are creating a positive societal impact by providing hassle-free funding to small business for starting-up or re-establishing and expanding. The awards won by the Prospa group indicates that the company is performing well in terms of financial achievement. The annual turnover of the company is $142.1 Million for the financial year 2020.
Contents
Executive summary.
Introduction.
Start-up Opportunity.
Key factors.
Contextual factors.
Entrepreneurial Solution.
Entrepreneurial Process.
Critical Reflection.
Conclusion.
References.
Introduction to Prospa Groups Ltd. Analysis
Prospa Groups Ltd. was started in 2011 as an online loan render facility providing loan to small and medium-sized businesses. It functions in the finance sector. The vision of Prospa is to modify the way which small business holder experience finance (Prospa, 2020). The company was co-founded by Beau Bertoli and Greg Moshal in 2011 when they both saw an opportunity to build an online finance support platform which provides loans to small and medium-size business (Smart Company, 2016).
The Prospa loan plan ‘back to business’ could provide loan up to $150,000 to small business over a term of up to 2 years. This plan facilitates no repayments within the first six months (Prospa, 2020). So far, the company has helped over 28,750 small business with funds to grow their businesses.
The Prospa has won many awards and appreciations for being one of the most dynamic and fast-growing start-ups. The year 2020 proved to a year full of awards such as MFFA National Fintech Lender of the Year 2020, MFFA State Excellence Awards 2020, AFR Fast 100 Award and Mortgage Global 100 Award (Prospa, 2020).
The annual turnover of Prospa Groups Ltd. for the financial year 2019 was $136.4 Million and for the financial year, 2020 is $142.1 Million. They delivered $1.6 billion as a loan to small business so far (Prospa, 2020).
This report will be discussing the issues and opportunities and from the viewpoint of entrepreneurial solutions and provide critical analysis of task structure, contextual factors and entrepreneurial processes. A critical reflection is done which emphasis on the changes brought by the Prospa Groups Ltd. in the society.
Start-up Opportunity
Entrepreneurial problem solving can be explained as the process of utilizing creative and innovative solutions to remove the barriers and gaps by resolving business, societal and technological difficulties (Ferrier M., & Mays E., 2020). Sometimes, the motivation behind a start-up is personal problems faced by the entrepreneur. The founder of Prospa Groups was well aware of the lack of financial assistance for the small business owner by the mainstream banking system. Therefore, they came up with a start-up idea where they fund small business and provide them with ease in repayment.
Key Factors
It was Greg Moshal and Beau Bertoli who co-founded the Prospa Group in 2011. Currently, Greg is acting as Chief Executive Officer since 2011 and Beau is the Chef Revenue Officer since 2013 (Prospa, 2020). Other members of the team are; Peter Loosmore as Interim Chief Financial Officer appointed in 2020, Simon Griffin as Chief Operating Officer, Ben Lamb who joined Prospa in 2016 is the Chief Commercial Officer, Damon Pezaro who joined Prospa in 2017 is the Chief Product Officer, Shai Haim Chief Technology Officer, Elise Ward joined in 2018 is the Executive General Manager – People & Culture (Prospa, 2020).
According to an interview given by the co-founders Greg and Beau to Smart Company in 2017, they were very clear regarding their vision to change the existing finance system for the small business. They choose innovative people to be a part of their team to who ensure continuous momentum for the company. They invested in knowing their customers, their needs and cultural background. (Smart Company, 2017).
Contextual Factors
The co-founders of the Prospa Group recognise the financial need of small business. The small business owners find it difficult to approve funding and loans from mainstream banking systems as it requires a financial guarantee from a business owner and takes a lot of processing time. The Prospa Group identify this issue and form such a system where a business owner may receive the funding within a few days.
In Australia, 97% of the total business is categorised as a small business which forms 50% of the Australian economy and provides employment to 70% of the workforce (Prospa, 2020). The market demand for small loan facility is seemingly high, and this was one of the major driving factors behind the formation of Prospa group.
Entrepreneurial Solution
The entrepreneurial solution is the process of tackling the problem which was identified. This can be implemented by developing a successful approach, creating partnerships, strong and committed leadership, relevant context, futuristic design and use of the latest information communication technologies (Dutta, 2017).
Prospa came up with the idea of providing loans and funding to small business under various plan categories. They created an online platform which can be accessed by anyone anywhere and have a user-friendly interface. They developed a website which provides access to the small business owner to view the loan requirement and apply. Prospa partnered with many service provider to small business client (Prospa, 2020).
Entrepreneurial Process
The entrepreneurial process is successful when the new method developed to meet market opportunities. This is accomplished through sustainable product design and operations that are benign toward resource and energy use and eliminate negative social impact (Sustainability, Innovation and Entrepreneurship, 2020).
The services and assistance provided by them are granting loan ranging from $2000-$150,000, no repayments for the first six months, no assets security needed, no fees paying for first six months and no interest on unused funds (Prospa, 2020). Apart from these facilities they also provide fast application facility where a business owner can apply for the loan by filling a form which takes ten minutes and providing funds within the next 24 hours (Prospa, 2020).
Prospa Groups also invites service providers for small business to join them as partners. They could help their client by advising them to use trouble-free and quick loan service of Prospa Group, thus expanding their customer base.
Critical Reflection on Prospa Groups Ltd. Analysis
Prospa Group is not only providing loans to small-medium business but also providing them with an opportunity to re-establish themselves in the market. The mainstream, banking system often impose heavy interest rates, demand asset guarantee and take long processing time before approving the loan. The small business fails to meet this requirement, hence in the time of financial need, they are not able to survive. Prospa groups come to aid for such diminishing small businesses. They are creating a positive societal impact by providing hassle-free funding to small business for starting-up or re-establishing and expanding.
The awards won by the Prospa group indicates that the company is doing well in terms of financial achievement. The annual turnover of the company is $142.1 Million for the financial year 2020 (Prospa, 2020), which signifies noteworthy growth in the company’s revenue.
The company also invites partners to join their initiative. The partners help Prospa in expanding its customer base. The service provider for small business is invited to join Prospa so that they may advise their customer access loan facilities provided by the Prospa. This move of the company is remarkable for expanding business.
Conclusion on Prospa Groups Ltd. Analysis
The start-up company Prospa Groups was well analysed on within the framework of entrepreneurial theories. The Prospa group is a well-reputed and awarded company which provides a loan to small and medium-sized businesses. The founder of Prospa Groups was well aware of the lack of financial assistance for the small business owner by the mainstream banking system. Therefore, they came up with a start-up idea where they fund small business and provide them with ease in repayment. They were very clear regarding their vision to change the existing finance system for the small business. They choose innovative people to be a part of their team to who ensure continuous momentum for the company. The small business owners find it difficult to approve funding and loans from mainstream banking systems as it requires a financial guarantee from a business owner and takes a lot of processing time. Prospa came up with the idea of providing loans and funding to small business under various plan categories. They developed a website which provides access to the small business owner to view the loan requirement and apply. Prospa partnered with many service provider for a small business client to assist their client as a loan provider. Prospa developed an easy and quick process of operations which provides a loan option ranging from $2000-$150,000 that comes with no repayment for the first six months and no assets security. They are creating a positive societal impact by providing hassle-free funding to small business for starting-up or re-establishing and expanding. It can be concluded that the Prospa Group reach the heights of success as they efficiently recognised and followed the entrepreneurial theories.
References for Prospa Groups Ltd. Analysis
About us. (2020). Prospa. Retrieved from https://www.prospa.com/about-us
Dutta, A. (2017). #6 Effective Entrepreneurial Solutions to Unemployment. Entrepreneur. Retrieved from https://www.entrepreneur.com/article/295664
Ferrier M., & Mays E. (2020). Media Innovation and Entrepreneurship. Rebus Community.
Investor Home. (2020). Prospa. Retrieved from https://investor.prospa.com/investor-centre/
Leadership Team. (2020). Prospa. Retrieved from https://www.prospa.com/about-us/leadership-team
Line of Credit. (2020). Prospa. Retrieved from https://www.prospa.com/line-of-credit
Partners. (2020). Prospa. Retrieved from https://www.prospa.com/partners
Prospa founders: Why building a successful business goes far beyond the facts and figures. (2017). Smart Company. Retrieved on 5 June, 2017 from https://www.smartcompany.com.au/startupsmart/advice/leadership-advice/prospa-founders-building-successful-business-goes-far-beyond-facts-figures/
Small Business Loan. (2020). Prospa. Retrieved from https://www.prospa.com/small-business-loan
Smart50 Awards. (2016). Smart Company. Retrieved from https://www.smartcompany.com.au/lists/smart50-awards-2016/prospa/
Sustainability, Innovation and Entrepreneurship. (2020). Libretexts. Retrieved on 13 August 2020 from https://biz.libretexts.org/Bookshelves/Business/Advanced_Business/Book%3A_Sustainability_Innovation_and_Entrepreneurship/04%3A_Entrepreneurship_and_Sustainability_Innovation_Analysis/4.01%3A_Entrepreneurial_Process
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