Entrepreneurship & Small Business Management

This report explores different types of entrepreneurial ventures, their differences and similarities, and the impact of small and medium business on the economy. It also discusses the characteristics, traits, and skills of successful entrepreneurs and how experiences and backgrounds can hinder or foster entrepreneurship.

ENTREPRENEURSHIP & SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures that relate to typology of entrepreneurship........3
P2 Differences and similarities between entrepreneurial ventures..............................................5
M-1 Diverse range of entrepreneurial ventures...........................................................................8
P-3 Impact of Small and medium business on economy.............................................................8
P4 Importance of small and start up business to growth of social economy...............................9
M-2 Differences between small, medium and large business...................................................10
PART 2-.........................................................................................................................................10
P-5 Characteristics traits, skills and motivational drivers of successful entrepreneurs.............10
P-6 Scope of entrepreneurship and aspects of entrepreneurial personality reflect
entrepreneurial motivation and mindset ....................................................................................11
P7 Evaluate experience and background can hinder or foster entrepreneurship.......................12
M-3 different lines of argument related to entrepreneurial characteristics................................12
M-4 Contrasting and comparing entrepreneurs.........................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurship is heart of every business, every big firm started out as small
business, led by an entrepreneur. The present report is based on NHS, Funeral Care,
Deliveroo and HSBC company, it justified different types of entrepreneurial ventures
which related to typology of entrepreneurship. This study explains the importance of
small and start up business and impact of SMEs on UK economy. Furthermore, this
report clarified similarities and differences between entrepreneurial ventures. It explains
skill, characteristics traits and motivational drivers of successful entrepreneurs. This
report justified experiences and background hinder or fostered entrepreneurships.
PART 1
P1 Different types of entrepreneurial ventures that relate to typology of entrepreneurship
Entrepreneurship-
This refer to the procedure of running, operating and developing new business,
which is initially a small business (Huda and et.al., 2019). It is described as willingness
and ability to organize, manage and develop a business venture along with any of their
risks to make high profit. Entrepreneurship is act of forming businesses or business
while scaling and building it to generate a revenue.
Enterprise-
Enterprise is simply another word for business, it describes actions of someone
who shows some inventiveness by taking several risks by setting up, running a and
investing in business (Reiser, 2018). An enterprise is an imaginative and bold
undertaking, it is always more than a single-handed company. It is organization or
business, often a small one, enterprise it the capability of managing business and
beginning the new ones.
Entrepreneurial activity-
Entrepreneur is a person who are able to operate large or small business, with
innovating and great ideas that determines need for creation of company (Burtch,
Carnahan and Greenwood, 2018). Entrepreneurial activity is enterprising human act in
pursuit of generation of principle, through expansion or creation of economic action, by
exploiting and identifying new procedures, markets and products.
Different types of ventures-

Social venture-
The main aspect of social entrepreneurship venture is nothing but developing
community and it is more significant that administration of company takes care of local
problems that are related with malfunctioning in specific society (Andersson and
Servais, 2018). In UK there are many non-profit companies and charity trust, which
takes this type of business into consideration to have an affect on firm such as NHS.
Large size venture-
Large organizations have finite life cycles, most progress through sustaining
innovation, providing new goods and services that are variants around its core products.
Large organization culture and size make disruptive innovation extremely complex to
execute in effective manner. HSBC holding is large organization in UK, founded in
1865, this banking corporation serves more over than 39 million people in 66 nations.
Scalable start-up-
Unlike small business, this type of entrepreneur venture is what Silicon Valley
entrepreneurs and its venture investor do. These entrepreneurs began firm knowing
from first day that their vision will be change the world (Furlan, 2019). Deliveroo is
scalable start up venture, they operate its business with innovative ideas and creative
concept.
Small business-
Small businesses are hairdressers, travel agents, consultants, plumber and
grocery stores, they are anyone who runs their own business. Small business hires
local people for manging their existing business functions effectively. Funeral care is
small business venture, they provide their services to local people.
Typologies-
Survival firms-
Survival companies facing many challenges as while operating their business for
longer term. Despite benefits of manging on large or small scale, non-subsidiary and
independent firms still survive to make up the vast majority of organizations. Funeral
care is considered as survival firms, they do not require to make complex rules to set
business, they face day to day challenges for managing it effectively.
Managed growth firms-

Deliveroo is managed growth organization, they delivery its online food services
to consumers with skilled people. It operated in two hundred cities in UK, France, UAE
and other nations. They hire new people to increase business productivity rather than its
competitors and focus on its strength.
Social enterprise-
Social enterprise is a company that applies commercial strategies and plan to
maximize improvements in environmental and social wellbeing. NHS is social
enterprise, they trade to handle social issues, improve people life standards and heath
as well as improve societies.
Aggressive growth firms-
Aggressive growth companies invest fund in their business seeking to increase
profitability and gain higher success within marketplace. HSBC is very aggressive for its
business progress rather than its competitors.
P2 Differences and similarities between entrepreneurial ventures
Similarities-
Factors Small business
entrepreneurshi
p
Scalable
start up
Large company
entrepreneurshi
p
Social
entrepreneurship
Objectives
and goals
These companies
setting their goals
on long term and
stable growth in
current market.
They cannot be
able to structured
goals and achieve
less profit margin.
The aim of
these
companies
is to cater
creative and
innovative
services and
products to
consumers
with better
quality.
The aim and
objective of large
companies is to
sustain for longer
in market and
increase
profitability rather
than before
consistently.
These firms aim is
to improve the
wellbeing of
human and
provide the best
services to them.
Risks Small business
manages their
Risks are
high due to
Risk of decrease
productivity and
Risks are not
much higher as

function with risks
that impact on its
current profit
margin. High
Market
Competition is
one of the risks
faced by them.
pressure to
return
maximum
amount to
authorities
by achieving
high sales
volume.
profitability are
medium for large
companies
because they are
often manged to
offer high volume
due to their well
brand image in
market.
these firms obtain
support and
contribution from
National and
international
authorities due to
their vision.
Employees
no
Small business
work with less
than workers.
The number
of workers is
depending
on their
structure
and
organization
size.
They hire more
than 1000
workers.
Workers are more
than 500.
Structure The structure of
small businesses
is not proper,
often manage with
sole
proprietorship in
partnership.
Mainly
limited
partnerships.
The
organizational
structure of large
companies is
often hierarchical
and complex.
The structure is
mostly trustee-
based firms.
Differences-
Factors Small business
entrepreneurshi
p
Scalable
start up
Large company
entrepreneurshi
p
Social
entrepreneurship
Annual
growth
rate
These firms earn
9.1% on average,
up from 8.7% one
These
companies
earn 120%
As compare to
small and
scalable start up
The annual
growth of these
organizations is

year ago. revenues for
their first
years.
firms, large
organizations
earn more, they
earn with less
than £2 million
annually.
depending on
their number of
services.
Managerial
style
Because of their
improper
structure, small
business
managerial style
is quite simple
and easy to
operate.
The
managerial
style of these
companies is
completely
opposite to
other. They
follow
autocracy
managerial
style.
Large companies
follow democratic
managerial styles
for making
appropriate
decisions.
Social firms
always encourage
their workers to
take participate in
decision making
procedures.
Managerial
focus
These firms focus
on completing
their day to day
tasks with few
people.
Start up
business,
focused on
managing
their existing
organizational
function
because they
are fresher in
market.
Large companies
focused on
creating their
marketing
strategies in order
to gain attention
of consumers that
helps to increase
profit margin.
These companies
focus on offering
new and better
services to its
consumers that
help in people well
fare.
Source of
finance
Family and friends
are the source of
finance for these
organizations.
Banks are the
main source
of finance for
these
Large
organizations
used venture
capital as source
Social businesses
take support from
government for
any financial

companies. of finance. issues.
M-1 Diverse range of entrepreneurial ventures
Entrepreneurial ventures are defined as company that places opportunism and
innovation at their heart in order to produce social or economic value (Alvarez‐Garrido
and Dushnitsky, 2016). NHS, operating their business in private sector. Nuffield Health,
Fitnuts and trusted tablets are the example of private sector companies.
TUI is public limited private sector company which is one of the leading leisure
travel teams operating in over 18 nations. BBC, Aviva and Thomas Cook is public
sector companies they work under public limited sector.
P-3 Impact of Small and medium business on economy
Medium sized business is defined as business with up to 250 workers, they may
be managed and family owned businesses but, by virtue of their size. They are normally
having an observable and well-established track record which facilities decisions by
investors or lenders. A business with 100 or more people is considered to be medium
sized while one with 100 or less workers is generally considered as small business.
Small business is independently operated and owned organization that is limited
in revenue and size depending on sector. For example, local bakery that employs 10
employees or less than it.

Figure 1 Small and medium size business
(Source: How do small businesses affect the economy?, 2019)
)
Small and medium business make up 99 % of UK businesses, employing million
of people so their collective success has an impact on growth of nation and its economy
(Hamdar, Najjar and Karameh, 2017). SMEs generate high rate of employment
opportunities for local people after Brexit in order to enhance their living standards. In
Europe and UK, small and medium business are defined as independent businesses
with 250 workers, they have annual turnover of less than 50 million. Stability of UK
economy relied on low unemployment rates, employees who themselves cater services
and products will earn wage which they can spend on products within nation. This is
one of the primary sources used to measure economic well wealth of UK. Small and
medium businesses playing their effective role in driving record in UK employment
levels, they play most essential role in economic development of UK. The contribute in
employment scenario along with output and input. SMEs have driven more than 70% of
private sector employment growth in UK, there are almost 5.6 million small and medium
size business in nation, these industrious and innovative businesses created jobs for
1.8 million individuals in past five years alone. Rise in gross development profit is the
best thing that Small and medium business have given to people.

P4 Importance of small and start up business to growth of social economy
The significance of start up and small business in life of people is amazing and it
will be stated that these businesses development authorities have to take good
amendments in order to maintain appropriate kind of balance in system (Thatcher and
et.al., 2016). Small business is very essential for social and economic reasons, given
role in employment. UK productivity level are lower than other European economies and
significantly behind US after Brexit. Improving nation’s low productivity is key challenge
to generate progress in economy. Small and start up business are vital part of economy,
accounting for 60% of all private sector jobs and 47% of revenue. With few exceptions
of all the biggest organisations in world started as small business which, through
helping economy, access to talented people and turned into giants.
Start-up business also contribute to growth of social economy in UK, they play
role as job creator, the greatest importance that they play in context of economy is scale
of jobs they offer. Along with offering employment opportunities and creating jobs, small
and start up business generate important proportion of UKs annual growth or turnover.
They cater combined annual revenue of 1.8 trillion, that is 47% of all private sector
turnovers in country. They also adapt more quickly to changes in economy. They adapt
fast to dynamic business world by switching on to online and e-commerce transactions
of products and services. They play essential role in traders and being services
providers to primary industry.
M-2 Differences between small, medium and large business
Small, large and medium business characterize an essential as they are source
of vitality in UK economy by way of accounting for wider portion of gross job losses and
job gains. Different company contributed to economy of nation in varied ways, in current
time, 99% firms are belonging from small and medium company and remaining 0.1%
firms are belonging from large companies. Large firms cater 40 percent employment
opportunities from total employment but turnover rate is highest there. On the other
side, small companies hold total 48 percent employment rather than the large business,
but they are unable to generate highest turnover rates is lowest that is 33%. Therefore,
small firm provide highest contribution to UK economy in context of employment. On the

other hand, medium size firms create 12% of sum employment but turnover rates are
14% as compare to small.
From above analysis it has been analysed that Small and medium business
make effective contribution in well fare of economy, they generate employment
opportunities for residential people after Brexit that improve their living standards rather
than before effectively.
PART 2-
P-5 Characteristics traits, skills and motivational drivers of successful entrepreneurs
Problems solving skills- Every company is looking for those people who are
accessible to take action in all ways in issues and take risk in any situation (Linder and
Nippa, 2017). Elizabeth Gooch have power to handle any problems, she is able to solve
problems because she had problems control skills.
Freedom oriented- After working in HSBC Elizabeth left her job and started a
small firm, this ability has demonstrated her as a freedom oriented and independent
person.
Loyalty- Elizabeth Gooch is very loyal, in using EG solution example she is loyal
to their custom.
Motivational driver-
Passion-
Entrepreneur are driven by solutions to issues and believe that they reward
themselves internally and motivated by desire. Therefore, it was passion that drive
Elizabeth Gooch to established their business towards new at solutions.
Resilience-
Tom Mercer-
Perseverance- At middle of her journey, Tom business had conducted loss in
two consecutive period, but at last, he had succeeded to take profit from this sector.
Risk Tolerance- For year, Tom had distributed sample of his goods knowing that
someday outcome will come for sure, this quality had proved that Tom Mercer was very
risk tolerance person.

Rare business skills- He had started business in effective manner that Tom
was assure that goods will be hit in market, this quality also prove that he has very rare
business skills as compare to other business managers.
Motivational driver-
Resilience- an entrepreneur keeps motivated even in hard times and thinks of
means of developments as setbacks are unescapable in business situations. resilience
is the motivational driver of Tom, he did not give up at any situation and time as well
even when the recession was high in 2009 which directly affected his operations.
P-6 Scope of entrepreneurship and aspects of entrepreneurial personality reflect
entrepreneurial motivation and mindset
Scope of entrepreneurship is to provide better scope for progress of
entrepreneurial activities. Philip green is the successful entrepreneur, he is the CEO of
Arcadia group, a conglomeration of different popular retail organizations including
British home stores, Dorothy Perkins and top shop.
Elizabeth Gooch is one of the most successful female entrepreneurs in UK, she
is the CEO and founder of EG solutions.
Tom Mercer was a successful management consultant in London, he spent most
of his time dreaming up business ideas.
Situational factors, similarities and differences-
Philip Green operate business in different sector as compare to Elizabeth Gooch
and Tom Mercer. Elizabeth Gooch is founder of small company and Tom Mercer is the
founder of MOMA foods serves number of consumers. They all work for increasing
profit margin and revenue. Elizabeth started work for HSBC bank at the age of 18, and
Tom started their work after Graduation from Cambridge University. On the other side,
Phillip Green complete their graduation from Carmel College.
Elizabeth personality is very simple, she takes decision without taking stress it
reflect her mindset and motivation.
Tom is creative person, they always try to inspire themselves that resect mindset
and motivate them to to their best.

P7 Evaluate experience and background can hinder or foster entrepreneurship
In case of Tom Merce, he had struggled a lot regarding their business place, he
does not have place or location to conduct business, he started it in railway station and
when MOMA food business become tough to conduct inside station, he came out and
installed his business outside railway station. He has some business skill that foster him
as successful entrepreneur, through it he has succeed to get place in supper outlet at
time of recession. This chance has fostered his business rather than others.
In case of Elizabeth Gooch, without having technical understanding and
knowledge, she implements and conduct business, which is quite tough. She has some
instinct quality which foster her to go beyond. She has this type of quality of her own,
based on this ability she left job and started doing EG solution business risk of her own.
M-3 different lines of argument related to entrepreneurial characteristics
In cases of Elizabeth and Tom Mercer, their background hindered both of them
from their success. But they are enough lucky to have some entrepreneur
characteristics within themselves based on what they both have succeed to overcome
their hinders as well as ultimately succeed in life.
Family status of Elizabeth was so week that she had to take credit and borrow
card help at time of starting business. On the other side, Tom Mercer does not have
place to set up business and that is why he had placed his shop. He makes struggle for
managing business effectively, after receiving positive feedback from people who took a
sample, they offer the best services.
M-4 Contrasting and comparing entrepreneurs
Elizabeth Gooch sensed need for exploring global markets as means of
developing scope of her operations while Tom Mercer understood need for opening new
or different branches.
Tom convinced that he can sell tasty and healthy breakfast to consumer when
going to work, which is considerably grew into big organization. On the other hand,
Elizabeth Gooch convinced that she can find out better ways or methods of assisting
companies on means of using their workers which led to establishments of EG solution
firm.

CONCLUSION
From above analysis, it has been summarized that background and experience
hinder Elizabeth and Tom, they gain greater success in their life and effectively operate
their business for longer. Furthermore, the characteristics and skills of both
entrepreneurs are different from each other, but they both work to succeed in life.
Elizabeth give more attention on business strategy which make them able to achieve
their objective. It has been concluded, small and medium size business contribute in
improving economic status. They generate GDP for UK and provide the best job
opportunities. Employment opportunities improve the living standards of people and
enhance their motivational level for performing day to day tasks.

REFERENCES
Book and Journals
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Context. In The 22nd McGill International Entrepreneurship Conference. 22-24
September, 2018, Halmstad, Sweden.
Burtch, G., Carnahan, S. and Greenwood, B.N., 2018. Can you gig it? An empirical
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Furlan, A., 2019. Startup Size and Pre‐Entry Experience: New Evidence from Italian
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Hamdar, B.C., Najjar, R. and Karameh, K., 2017. The Lebanese perception of the
impact of small & medium enterprises (SMEs) on the national economy. Journal
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Linder, C. and Nippa, M., 2017. Can Faith Move Mountains? The impact of
entrepreneurial ambition on the success of new ventures.
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Reiser, D.B., 2018. Alternative business organizations and social enterprise. The
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Thatcher, J and et.al., 2016. Enriching the values of micro and small business research
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Online
How do small businesses affect the economy?, 2019. < https://bionic.co.uk/business-
essentials/guides/the-role-of-small-businesses-in-the-UK-economy/>