Entrepreneurship and Small Business Management

This report covers the meaning of entrepreneurial activity and social economy along with the differences between serial entrepreneurs, owner managers and intrapreneurs. It discusses characteristic features of micro and small size organisations and economy and the relationship between growth firms and lifestyle firms along with micro and medium size firms. It also includes the impact of small and micro businesses on the economy and the role that start-ups play in the social economy.

Entrepreneurship and Small
Business Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Define what is meant by entrepreneurial activity and social economy..............................1
2. Identify and explain 3 differences between serial entrepreneurs, intrapreneurs and owner
managers.................................................................................................................................2
3. Explain two characteristics features of each of the following: Micro and Small size
organisations and economy....................................................................................................3
4. Examine the relationship between Life style and Growth firms on one hand and micro and
medium size firm on the other................................................................................................3
5. Produce and interpret a current data that shows the impact of Small and Micro business on
the economy............................................................................................................................5
6. Explain two reasons it is believed that small organisations and start-ups play significant
role in social economy............................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is defined as the ability to develop, organize and operate business. It is the
process of starting a venture with new and innovative idea, by taking financial and other risks in
the hope of earning huge amount of profits (Ács, Autio and Szerb, 2014). This report covers the
meaning of entrepreneurial activity and social economy along with the differences between serial
entrepreneurs, owner managers and intrapreneurs. Apart from this, it discusses characteristic
features of micro and small size organisations and economy and the relationship between growth
firms and lifestyle firms along with micro and medium size firms. It also includes impact of
small and micro businesses on economy and the role that start-ups play in social economy.
MAIN BODY
1. Define what is meant by entrepreneurial activity and social economy
Entrepreneur activity is referred as business activities which aims for or outcomes in
acquisition of assets, or earning income, not involving designated activities that generate huge
revenues and contribution rendered for activities related to public welfare. It involves production,
processing, selling, renting, leasing, dispensing, delivering, distributing or promoting products
and services to gain profits. There are several factors that influence the entrepreneur activities of
the organisation including capital, raw materials, market, infrastructure and labour. These factors
influence the growth of entrepreneurial activities in both positive and negative ways. Positive
impacts constitute conductive and facilitative conditions for entrepreneurship emergence while
advance influences develop inhibiting milieu to entrepreneurship emergence (Blackburn, Hart
and Wainwright, 2013).
Social economy is referred as the set of economic and business activities which are
performed within private sphere through the organisations or institutions which seek general
social or economic interest according to the principles like fostering social and internal
solidarity, equal opportunities for women and men, promoting commitment with local
development, generating stable employment, social cohesion, sustainability and work life
balance (Bryson and Daniels, 2015). Social economy comprises of diverse set of institutions
including cooperatives, social integration enterprises, associations, mutual societies, employee
owned companies, special employment centres and foundations. The social economy
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organisations and enterprises have distinct sizes, range from small and medium enterprises to
large organisations which are leaders in market and perform their business activities in all the
sectors of economy.
2. Identify and explain 3 differences between serial entrepreneurs, intrapreneurs and owner
managers
Serial entrepreneurs can be stated as the entrepreneurs who constantly come up with
innovative and new ideas and initiates new business venture. The takes on challenge repeatedly
and after developing a particular business, they delegate its responsibility of performing
operations and move on to develop another ventures (Bryson and Daniels, 2015). Example of
serial entrepreneur include Sir Richard Branson who is the founder of virgin group and now run
diversified set of businesses including virgin music, virgin atlantic, virgin clothing, virgin cola,
virgin vodka etc.
Intrapreneurs are the employees who are tasked to develop an innovative project or idea
within organisation. They have access to capabilities and resources of established firms. They are
given with the freedom as well as time to develop project or ideas as an entrepreneur would. An
example of intrapreneur is Healey Cypher, head of retail innovation eBay (Ács, Autio and Szerb,
2014).
Owner manager is referred as an individual who both owns and manage business. In
incorporated enterprises, owner managers are workers who hold job in the enterprise in which
they have authority to act on behalf of organisation as regards contracts with another companies
along with hiring and dismissal of individuals. They work alone or collectively with few partners
or other members, hold controlling ownership of business (Ferreira, Loiola and Gondim, 2017).
There are some differences between serial entrepreneurs, intrapreneurs and owner manager
which are mentioned below:
Serial entrepreneurs Intrapreneurs Manager owner
They are the owner of
business.
They are not the owners, but
have freedom and autonomy
in business.
They hold controlling
ownership of enterprise.
They start the business with
innovative idea and move on
They take change initiative for
leading the business towards
They hold job in organisation
and have authority to act
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to another venture after its
establishment.
growth. behalf on it.
Serial entrepreneurs
established their business
alone and delegate its
responsibilities.
They are the entrepreneurs
within organisation, but not
established any business and
work alone or with other team
members.
They own as well as run
business with the help of other
partners.
3. Explain two characteristics features of each of the following: Micro and Small size
organisations and economy
Characteristics of micro and small size organisations:
 Low revenue and profitability: micro and small businesses generally have lower
revenues in comparison to the organizations operate at large scale. Micro and small
businesses are the firms which generates particular amount of revenue, relying on the
type of business. The maximum revenue allowance for these organizations is set as 21.5
million dollars per year (Galloway, Kapasi and Sang, 2015).
 Small market area: micro and small firms serves smaller area of market in comparison to
large private businesses or corporations. These serves single communities like
convenience store in rural township.
Characteristics of economy:
 Equity: Opportunities are available in the economy to allow upward mobility for
individuals. All the society segments, especially socially disadvantaged groups or poor
are not able to get advantage of these opportunities. Individuals have equal access to
economic foundation, involving equal access to infrastructure, public goods and services
like education, clean water, air and public transit.
 Growth: this is another characteristic of economy. It increasingly producing products and
services to make able greater opportunity and broad gains in wellbeing. Good
opportunities to work are growing and maximizing in the economy. Economic system is
changing for betterment of all the people in society (Henry, Foss and Ahl, 2016).
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4. Examine the relationship between Life style and Growth firms on one hand and micro and
medium size firm on the other
Lifestyle and growth firms:
Growth processes are emphasizing on growth and focuses on market place which have the
potential for robust and rapid growth over upcoming years. The technological innovations which
spawn rapid development of products or there may be varying customer dynamics which create
new needs of market. Although, it is possibly that technology place significant role in growth
firms, these businesses are not specific to single industry. Instead of sharing product vertical or
market niche, growth firms instead united typically through common outcome, i.e., maximizing
business value and eventually selling the organisation at considerable profit (Ferreira, Loiola and
Gondim, 2017). On the other hand, lifestyle organisations intend to support the lifestyle of an
entrepreneur. Profitability is the main emphasis of these businesses, however there is less focus
on rapid growth in favour of slow, more incremental growth (Krajňáková, Navikaitė and
Navickas, 2015). Lifestyle and growth firms are related with each other as both emphasize on
growth. Both the organisations look to the profitability of company by keeping in mind the girls
associated with growth. The goal of the lifestyle firm is to make enough money and with the help
of growth mind-set, this objective can be accomplished easily and result into huge profits. So, it
such a way, lifestyle and growth firms are related with each other.
Micro and medium size firm:
Micro firms are the enterprises which employs minimum employees and minimal capital.
This business is usually operating is activities with less than 10 individuals and these businesses
are initiate with small capital amount (Ferreira, Loiola and Gondim, 2017). In the developing
nation, micro entrepreneurs are compelling to represent majority of small business industry. In
the economy, these businesses add value by developing micro businesses, improving incomes of
people and lower down the entire cost of business. There is a reason behind high number of
micro entrepreneurs as they have no proper training and jobs available to them. In developing
nations, micro enterprises develop products and services for mitigating the needs of local area.
On the other hand, medium enterprises are the businesses which employ less than 250
individuals. These firms image from steady growth of small organisations (Oviatt and
McDougall‐Covin, 2015). As these businesses earn more revenue, it initiates keeping aside
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capital needed for equipment, recruitment of more workforce and buildings. It eventually
develops a bridge between big corporations and small businesses. The micro and medium firms
are interrelated with each other as a micro firm is the base of developing a successful medium
enterprise. The medium enterprise also initiates through a micro enterprise and with the slow and
steady growth, become a medium enterprise. So, in such a way both these firms are related with
each other.
5. Produce and interpret a current data that shows the impact of Small and Micro business on the
economy
Small and micro firms highly impact on the economy and contribute in its growth and
development. In the growth and development of United Kingdom, micro, small and medium
organisations are recognised widely for their contribution in sustainable development. There
were approximately 5.5 million businesses in United Kingdom in year 2016 which contributes in
growth and development of economy (Bryson and Daniels, 2015). The main reason of increasing
micro small businesses in the country is start up loans which is granted by government. Majority
of organisations in UK are micro small and medium enterprises. In year 2018, approximately 5.7
million companies are fall under small and medium enterprises (Galloway, Kapasi and Sang,
2015). It has been revealed from the study that the contribution of micro and small enterprises to
economy is rise by 11% from 2015 to year 2020 (SME contributions forecast to hit £217 billion
to UK economy by 2020, 2019).
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Figure 1: UK SME Data, Stats & Charts
(Source: UK Businesses by Size, 2019)
At national and international level, small and micro organizations render a platform to
individuals to show their talent at global level. They provide training opportunities two people to
develop their competencies and skills which vendor opportunity to company to provide products
and services to other nations and enhance foreign currency inflow in country. At regional level,
small and micro organizations get advantage of producing goods as per the customer’s choice.
This enables firm to satisfy their requirements in better manner. At local level, these
organizations provide opportunities to local people for employment that ultimately contributes in
improving the growth and economic condition of the area (Ramadani, Gerguri-Rashiti and
Fayolle, 2015).
6. Explain two reasons it is believed that small organisations and start-ups play significant role in
social economy
The reason due to which it is believed that small companies and start-ups play a crucial
role in social economy are as follows:
Employment: these businesses generate opportunities of employment for the people
living in the country. Apart from this, the contributes in improving potential and skills of people
which in turn contributes in their personal and professional development and growth. These
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businesses are well known as job creators and render opportunities to local people for
employment. This in turn increases the living standard of individuals and contribute in growth of
social economy (Oviatt and McDougall‐Covin, 2015).
Growth: employment condition of nation highly impacts on the growth of economy and can
be estimated through number of unemployed as well as employed individuals. Start-ups provide
numerous shop opportunities to people which is beneficial for growth and development of
society (Bryson and Daniels, 2015).
CONCLUSION
As per the above mentioned report, it has been concluded that through the process of
entrepreneurship, an entrepreneur develops a new venture by taking up risk, for earning huge
profits. Serial entrepreneurs, owner managers and intrapreneurs are different from each other.
The main characteristics of small and medium enterprise includes a small market area and low
revenue and profitability. Small businesses and micro firms highly contribute in growth and
development of economy of United Kingdom and also contribute in development of society.
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REFERENCES
Books and Journals
Ács, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy. 43(3). pp.476-494.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Ferreira, A. D. S. M., Loiola, E. and Gondim, S. M. G., 2017. Motivations, business planning,
and risk management: entrepreneurship among university students. RAI Revista de
Administração e Inovação. 14(2). pp.140-150.
Galloway, L., Kapasi, I. and Sang, K., 2015. Entrepreneurship, leadership, and the value of
feminist approaches to understanding them. Journal of Small Business Management.
53(3). pp.683-692.
Bryson, J. R. and Daniels, P. W. eds., 2015. Handbook of service business: Management,
marketing, innovation and internationalisation. Edward Elgar Publishing.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Krajňáková, E., Navikaitė, A. and Navickas, V., 2015. Paradigm shift of small and medium-
sized enterprises competitive advantage to management of customer
satisfaction. Inžinerinė ekonomika. pp.327-332.
Ramadani, V., Gerguri-Rashiti, S. and Fayolle, A. eds., 2015. Female entrepreneurship in
transition economies: Trends and challenges. Springer.
Oviatt, B. M. and McDougall‐Covin, P., 2015. International entrepreneurship. Wiley
Encyclopedia of Management. pp.1-3.
Online
UK SME Data, Stats & Charts, 2019. [Online]. Available through:
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
SME contributions forecast to hit £217 billion to UK economy by 2020, 2019. [Online].
Available through: <https://smallbusiness.co.uk/sme-contributions-forecast-217billion-
2534943/>
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