Entrepreneurship and Small Business Management

This document explores the concept of entrepreneurship and its impact on the social economy. It discusses the differences between serial entrepreneurs, intrapreneurs, and owner managers. It also examines the characteristics of micro and small size organizations and their role in the economy. The document further explores the relationship between lifestyle and growth firms and micro and medium size firms. It concludes by discussing the impact of small and micro businesses on the economy and the significant role they play in the social economy.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Define what is meant by entrepreneurial activity and social economy.......................................1
Identify and explain 3 differences between serial entrepreneurs, intrapreneurs and owner
managers.....................................................................................................................................1
Explain two characteristics features of each of the following: Micro and Small size
organisations and economy.........................................................................................................2
Examine the relationship between Life style and Growth firms on one hand and micro and
medium size firm on the other....................................................................................................3
Produce and interpret a current data that shows the impact of Small and Micro business on the
economy......................................................................................................................................4
Explain two reasons it is believed that small organisations and start-ups play significant role
in social economy........................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is a inclusive of activities related to designing, introducing and running
new venture which is mainly initiated on a small scale with an aim to satisfy individual and
generate profitability while bearing risks (Porfírio, Felício and Carrilho, 2020). In this process
entrepreneurs acts an as individual those who undertake advantage of their entrepreneurial
characteristics and develops new ideas, services, processes, products and business for customers
and country growth. Present report has been conducted on the concept of social economy and
entrepreneurial activity. In addition to this difference among intrapreneurs, serial entrepreneurs
and owner managers are also included in this report. Along with this relationship among growth
and life style firms and micro and medium size firm are also included in present report. Lastly,
impact on small scale organisations, starts-ups and micro business upon economy are also
covered in present project.
Define what is meant by entrepreneurial activity and social economy
Entrepreneurial activity is defined as as enterprising human action in pursuit of
generating value via expansion and creation of economic action and making identification of
new markets, products and products (Hastuti, 2020). In this entrepreneurs successfully take
advantage of their characteristics that are adaptability, persistence and work ethic as to fulfil their
objective with great effectiveness.
While on the other hand social economy is mainly a formation of rich diversity of
organisation as well as enterprises like associations, cooperatives, social enterprises, foundations
and paritarian institutions (Thompson, Verduijn and Gartner, 2020). In simple terms social
economy is a inclusive of those business activities that are mainly undertake in private sphere
with an aim to gain social or general economic interest.
Identify and explain 3 differences between serial entrepreneurs, intrapreneurs and owner
managers
It has been evaluated that Intrapreneurs, serial entrepreneurs and owner managers have
different types of roles and responsibilities and perform their objectives with different set of
activities. Mentioned below difference among them are being underlined:
Serial entrepreneurs Intrapreneurs Owner managers
Primary These entrepreneurs These entrepreneurs are Managers are having
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Motive mainly comes up with
new businesses as well as
ideas.
mainly aim towards
independence and ability
to advance in corporate
rewards (Farahani and
Alvandi, 2020).
main motive to get
promotion and other form
of rewards for example
power.
Risk These entrepreneurs
basically undertakes risks
as their main motive is to
develop something new
and innovative (Si,
Ahlstrom and Cullen,
2020).
They are are not fully risk
takers and mainly tend
towards hiding risky
projects until there are on
lower risk level.
Managers basically avoid
any from of risks and
mainly conduct business
operations with less risks
in order to generate
higher profitability.
Failure and
mistakes
Serial entrepreneurs
enjoys mistakes and
failure in order to develop
a service, product,
business or process with
great uniqueness.
Intrapreneurs hide project
those who have risks
associated with it.
Managers mainly tries to
avoid any form of risk.
Explain two characteristics features of each of the following: Micro and Small size organisations
and economy
The minimal scope of micro and small enterprises is perceived to be that no more than 50
individuals function together. Micro enterprises are operated by investors whom were able to
complete their business and generate income with strong training and expertise. It influenced the
productivity, as if an individual starts his enterprise at a simple level, because he or she needs to
recruit workers and increase people's interest in selling his or her goods and services. It will hire
people to manage its business, trying to reduce the unemployment rates. The world economy
becomes stable by eliminating such unemployment concerns and continues to healthy
organisational performance.
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Characteristics of small size organisation
Lower revenue an profitability: Small-scale company sales are typically smaller than
larger-scale enterprises. Based on the company form, the chamber of commerce categorises
small businesses as enterprises which earn below a certain amount of income. For service
enterprises, the overall sales allocation for the small company classification is set at $21.5
million per year. Lower revenue does not inherently transform into high returns. Developed
small-scale companies also own their tools and infrastructure directly, which serves to keep cost
down than the more utilised companies, in addition to natural resources.
Small market area: Small-scale enterprises represent a far smaller region than companies
or larger private firms. The lowest-scale companies serve single populations, including a grocery
store in a small town (Thompson, Verduijn and Gartner, 2020). The very concept of small-scale
precludes such businesses from positioning information far bigger than a local community, as of
expanding further than that would lead to expansion of a limited business organisation and
squeeze it into a new category.
Limited area of fewer locations: A small-scale company can be located only in a small
radius, by default. For example, these businesses are not expected to have distribution outlets in
several countries and states. From a small facility, chain outlet or product network, a series of
smaller-scale businesses run. With no work equipment, it is also able to deploy a small company
straight out of your house.
Micro and small companies direct impact on the economy in positive manner and
efficiently.
Examine the relationship between Life style and Growth firms on one hand and micro and
medium size firm on the other
Relationship between lifestyle and growth firms: Lifestyle entrepreneurs are looking at
financial performance for individual taxes, holding development goals and ambitions, whereas
growth entrepreneurs are focused on development. Lifestyle entrepreneurs are morally opposed
to any outside cash increasing, whereas growth entrepreneurs are still seeking to collect cash. A
lifestyle company is a company created and run predominantly by its owners with both the goal
of maintaining a certain level of revenue so no more; and to provide a base against which to
experience a specific lifestyle (Vecco, 2020). Some business types are more available to the will
also-be lifestyle corporate lawyer than the others.
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Relationship between micro and medium size firm: Micro and medium-sized companies
provide people with job opportunities that promote health and development initiatives. In
prepared to confront pressure, all entrepreneurs innovate fresh concepts and introduce them. By
developing products, they have more knowledge and skills to pay their employees. They are also
seeking for profitable business simulation process by enhancing employee activities and
functions. Everything assesses the consumer needs and manages to make steps to satisfy them by
achieving better quality of services.
Produce and interpret a current data that shows the impact of Small and Micro business on the
economy
Small and micro business organisations are acting as most important aspect for economy
as they are offering high level of job opportunities to local individuals who are major player in
country GDP growth. Further it has been determined that these organisations are also having
their contribution in each and every sector of country which is automatically lead towards
development and growth of nation at international level.
Thus, as per according to the above mentioned discussion it has been evaluated that,
SME's and starts-ups are playing essential role in UK local, regional and national economy in
different aspects. As these entities are offering 16.3 million job opportunities to individuals.
United Kingdom is receiving monetary value from these sectors (5 Reasons why UK Small
Business are vital for the UK economy. 2018). Further it has been underlined that these entities
are also inspiring innovation. In addition to this, starts-ups and small scale companies are also
boosting local communities by offering them many job opportunities.
Explain two reasons it is believed that small organisations and start-ups play significant role in
social economy
Impact of SME and Start-Ups on economy
Local impact:
Small scale organisations are playing important role in economy as they are major
contributors in terms of employment, wealth, GDP and overall growth of a nation. In addition to
this, it has been determined that entities with small scale sector are also fulfilling needs and
demands of customers by offering them high quality services and products in affordable price
range (Si, Wei and Cullen, 2020). These organisations are also providing job opportunities to
number of local individuals which lead towards increasing economic growth of a nation.
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Illustration 1: Role of Start-ups and Small Businesses
(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Regional impact:
Small scale and starts-ups are significantly contributing their contribution in regional
economy. It has been evaluated that these organisations are offering wide range of employment
opportunities which is increase per capita income of individuals (Hewitt and van Rensburg,
2020). This maximises regional stability of a country in effective way.
National impact:
Starts-ups and small scale organisation are helping nation in fostering in number of ways.
According to the evaluation it has been determined that, SME's and starts-ups are acting as vital
aspect for UK economy as they accounts for 60% of all private jobs as well as 47% of revenue.
A report published jointly by the Enterprise Research Centre (ERC), Goldman Sachs 10,000
Small Businesses and the British Business Bank shows that SMEs are a key underused resource
for increasing productivity (Boosting UK productivity with SME growth. 2020). Further it has
been determined that SMEs and starts-ups are facilitating innovation and creativity in nation
which is increasing nation image in international marketplace. It also lead country towards
improvement in their exporting ration that are adding profitable values to country overall gross
domestic production. For instance, Parry Stainless Steel is a small scale organisation which is
offering their significant U.K income (Miao, Qian and Humphrey, 2020). In addition to this it
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has been estimated that between 9 to 12% of SMEs those are exporters become non-exporting
firms which is increasing country overall growth.
International impact:
According to the evaluation of International economic studies and reports it has been
identified that small scale and starts-ups are major contributor in economic growth. As these
organisation are increases income and growth of individuals at great extent (Maalaoui, Loarne-
Lemaire and Razgallah, 2020). Further it has been determined that these organisations are also
playing important role in women's representation with is a great contribution on international
platforms.
Social economy:
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Small scale and starts-ups are acting as economy backbone as these organisations
fulfilling wide range of needs and demands of individuals. As with the expanded reach of these
organisations customers get what they want in easy and quick manner (Bangar, 2020). It has
been identified that with this there are large scale of small scale and starts-ups such as public
working stations, public working stations,Primary Health Care Centre,computer institution,
cyber cafe, sweet shop, operator services, grocery store, cloth store, legal consultant and more
those who are not only satisfying demands of customers but are also offering job opportunities to
individuals. SMEs contributed to 51% of all turnover generated by the private sector in 2018 in
UK that increases nation growth value (Farahani and Alvandi, 2020).
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CONCLUSION
As per the above mentioned analysis it has been concluded that, entrepreneurship is
defined as a process in which entrepreneur engages in the functions of designing, launching and
running of a business venture. This process mainly aim towards innovative and qualitative
services and products to customers and economy with best. Further it has been evaluated that
entrepreneurs are performing their roles and responsibilities in different entrepreneurial venture
through which they are contributing their contribution in consumer satisfaction and country
economic growth. Along with this, it has been determined that small, medium and starts-ups are
playing vital role in economic growth of a nation in number of ways.
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REFERENCES
Books and Journals
Ahsan, M., 2020. Entrepreneurship and ethics in the sharing economy: A critical
perspective. Journal of Business Ethics, 161(1), pp.19-33.
Ali, A., Kelley, D.J. and Levie, J., 2020. Market-driven entrepreneurship and
institutions. Journal of Business Research, 113, pp.117-128.
Bangar, B.K., 2020. Entrepreneurship in Small and Medium Enterprise. Studies in Indian Place
Names, 40(55), pp.328-333.
Croce, F., 2020. Indigenous women entrepreneurship: analysis of a promising research theme at
the intersection of indigenous entrepreneurship and women entrepreneurship. Ethnic
and Racial Studies, 43(6), pp.1013-1031.
Entrepreneurship, B.U.S.I.N.E.S.S., 2020. Small Business Management–. Certificate of
Achievement.
Farahani, H. and Alvandi, M., 2020. Explanation of entrepreneurship small business challenges
in rural area, The case of study: Bijar, Iran. Scientific Journals Management
System, 20(58), pp.105-119.
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research, 110, pp.519-537.
Hastuti, S.W.M., 2020, July. Characteristics of Entrepreneurship: Business Performance of Small
Entrepreneurs. In Prosiding Seminar (pp. 54-64).
Hewitt, L.M. and van Rensburg, L.J.J., 2020. The role of business incubators in creating
sustainable small and medium enterprises. The Southern African Journal of
Entrepreneurship and Small Business Management, 12(1), p.9.
Lin, S., Winkler, C., Wang, S. and Chen, H., 2020. Regional determinants of poverty alleviation
through entrepreneurship in China. Entrepreneurship & Regional Development, 32(1-
2), pp.41-62.
Maalaoui, A., Le Loarne-Lemaire, S. and Razgallah, M., 2020. Does knowledge management
explain the poor growth of social enterprises? Key insights from a systematic literature
review on knowledge management and social entrepreneurship. Journal of Knowledge
Management.
Miao, C., Qian, S. and Humphrey, R., 2020. Successful Aging in Small Enterprises:
Entrepreneurship, Job Demands-Resources, and Health. Journal of Innovation
Management, 8(2), pp.11-15.
Porfírio, J.A., Felício, J.A. and Carrilho, T., 2020. Family business succession: Analysis of the
drivers of success based on entrepreneurship theory. Journal of Business Research, 115,
pp.250-257.
Ramadani, V., Palalić, R., Dana, L.P., Krueger, N. and Caputo, A., 2020. Organizational Mindset
of Entrepreneurship. Springer.
Ratten, V., 2020. Family business and sport entrepreneurship. Journal of Family Business
Management.
Robinson, C., 2020. Social enterprise and social entrepreneurship: developing the evidence base
using the UK Small Business Survey. In Handbook of Quantitative Research Methods
in Entrepreneurship. Edward Elgar Publishing.
Sharafizad, J. and Brown, K., 2020. Regional small businesses’ personal and inter-firm
networks. Journal of Business & Industrial Marketing.
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Si, S., Ahlstrom, D., Wei, J. and Cullen, J., 2020. Business, entrepreneurship and innovation
toward poverty reduction.
Stevenson, R.M., Josefy, M.A., McMullen, J.S. and Shepherd, D.A., 2020. ORGANIZATIONAL
AND MANAGEMENT THEORIZING USING EXPERIMENT-BASED
ENTREPRENEURSHIP RESEARCH: COVERED TERRAIN AND NEW
FRONTIERS. Academy of Management Annals, (ja).
Thompson, N.A., Verduijn, K. and Gartner, W.B., 2020. Entrepreneurship-as-practice: grounding
contemporary theories of practice into entrepreneurship studies.
Vecco, M., 2020. Artpreneurs' lessons to traditional business. International Journal of
Entrepreneurship and Small Business, 40(2), pp.154-170.
Online
Boosting UK productivity with SME growth. 2020. [Online]. Available
through<https://esrc.ukri.org/news-events-and-publications/evidence-briefings/
boosting-uk-productivity-with-sme-growth/>
5 Reasons why UK Small Business are vital for the UK economy. 2018. [Online]. Available
through<https://welcome.akonihub.com/blog/5-reasons-why-uk-small-business-are-
vital-for-the-uk-economy>
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