Entrepreneurial Small Business

This report explores entrepreneurial ventures and their impact on the economy. It discusses different types of enterprises and their relation with entrepreneurial typology. It also highlights the importance of micro business and start-ups in the development of social economy.

Entrepreneurial Small
Business

INTRODUCTION
An entrepreneur is a person who come up with creative idea and starts a new business by
bearing all the risk and profit (Acosta and Agudo, 2018). This person is accountable for all the
business operation activity. On the other hand entrepreneurial is explained as exchanging freely
idea and celebrating failure in context of learning and growing experience. And entrepreneurial
venture is stated as firm which places innovation so as to produce social and economical value.
All this contribute in the growth of the nation's economy at a tremendous scale. For this report
McKinsey is undertaken. It is a American consulting firm serving it's services across the globe.
The key person is Kevin Sneader and was founded in the year 1926. This is located in New
York, United States. This assignment covers several businessperson business and how they are
associated with typology of entrepreneurship. How micro business impact the economy is briefly
studied. Along with this the value of small business and start up in development of social
economy is examined for better results.
P1)
Entrepreneurial venture is defined as proprietor of organization who work hard to
generate maximum profit from businesses. This directly assist in generating new wealth in the
open market place. Their main motive is to target high returns from high level of uncertainty.
Entrepreneurs are treated as national assets which need to motivated and remunerated to a large
extent as they contribute large share in the growth of the national economy. Entrepreneurial
venture are successful in raising the living standard of the people as they come-up creative idea
(Aftan and Hanapi, 2018). Additionally, social changes, more job opportunities, raise in
national income, community development and so are possible due to the raising number of
venture across the globe.
The various types of enterprises are explained below:
Social enterprises: This type of enterprises provides huge income maximization
opportunity so as to achieve basic needs of people who are below poverty line. The revenue
gathered from social enterprises by selling their goods and services are reinvested in their
designed mission in order to raise the living standards of the people.
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They work for the welfare of the community as well as their profits are used to fund social
programmes. By this basic needs and living standards of the community people are raised which
is a positive mark. Governing bodies need to motivate people to come with social enterprise as
these self funding firm is resolving global issues such as, improving education, combatting
climate change, alleviating hunger etc. Example: Greyston Bakery and Nisolo.
Scalable entrepreneurial venture: In this case, innovative idea designed by scalable
start-ups investigate for repeatable business model who can mould their idea into high profitable
firm (Audretsch and Belitski, 2017). It is possible by entering a large market or by creating a
new market and flourishing the business gradually. They are focusing more on making small
proportion of all businesses due to high risk capital. This type of venture is capable enough to
tackle uplifted market demand and can maintain profit ratio while sales volume upgraded. It is
important to have scalable entrepreneurial venture in the country because it secure the sales,
invest in technology, strategically outcomes and so on. Example: Silicon Valley and Shanghai.
Large company entrepreneurial venture: In cut throat competitive world this type of
large venture can not run in the market with single product or services. Continuous research and
development work is conducted in order to change the monotonous trend prevailing in the
market. Large entrepreneurial venture main focus in innovation of goods and services. In order to
gain competitive advantages against rivalry they acquire small team as assign task according to
their abilities and skill. This assist in completing the task in the set time frame. They are also
contributing a large ratio in the growth and development of the nation by improving the living
style of the society people. Example: Tesco and Mark and Spencer (Barba-Sánchez and Atienza-
Sahuquillo, 2018)
Enterprises relation with entrepreneurial typology:
Social enterprises: Survival firm is a type of entrepreneurial typology whose motive is
to survive in the market not to maximize profit. They are closely related with social venture as
they work for full-filling the basic needs of the people.
Scalable entrepreneurial venture: Public sector entrepreneurship is another type of
entrepreneurial typology and they are connected with scalable venture because more economic
prospective by transforming their contribution in economic units is done. This typology mainly
focus on transformation by raising effectiveness of knowledge network.
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Large company entrepreneurial venture: Managed growth firms is a part of
entrepreneurial typology and are interconnected with large venture as both focus on generating
huge profit by coming up with innovative idea and minimising amount of risk prevailing in the
business. Both firm are risk taker in the market.
P2)
The similarities between among businessperson business. such as, social enterprises,
scalable entrepreneurial venture and large company entrepreneurial venture are illustrated below:
Similarities Social enterprises Scalable
entrepreneurial
venture
Large company
entrepreneurial
venture
Treat people as
valuable assets
Greyston Bakery work
for the betterment of
the society. Example:
Resilience, Hubbub
Enterprise, ECT
Charity etc.
Silicon Valley
towards finding new
opportunities
prevailing in the
market in order to
provide benefits to the
society people (Bird,
2019). Examples: The
Accelerator Group,
Better capital, ISIS
Private Equity etc.
Tesco focus on social
issues emerging in the
society and provide
funds for their
resolution. Examples:
Tesco, Mark and
Spencer and so on.
Focus on reducing cost
of operation.
Greyston Bakery come
up with creative way
of working in order to
reduce cost of
operation. so that basic
needs of the society
people can be
accomplished easily.
Silicon Valley focus
on innovative idea
designed by scalable
start-ups investigate
for repeatable business
model who can mould
their idea into high
profitable firm. The
accumulated profit is
Tesco is more focusing
on innovative product
and services by
reducing the overall
cost of production. By
this huge profit can be
generated which can
be further used for
raising living standard
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used for the betterment
of the society.
of the people by
education people,
providing job etc.
Quality product In open market place
Greyston Bakery are
work for the society
improvement to
eliminate poverty.
Quality products
which are essential for
them are served to the
people so that they do
not strive again for the
same thing. Hygienic
food is served so that
people does not fall ill
frequently.
Quality business idea
is designed by Silicon
Valley in order to get
approved from
repeatable business
model who can mould
their idea into high
profitable firm.
Business by providing
high quality product to
the customers
according to their
expectation level helps
firm to bind them for
longer time duration
(Campbell and Park,
2017).
Aim It's aim is to serve the
society and work for
their welfare.
It's main aim to design
unique business idea
so that it can be turned
in profit maximization
business in the global
market.
Large company aim is
to come up creative
idea so that tough
benchmark can be
created for others.
The differences among businessperson business. such as, social enterprises, scalable
businessperson business and large company businessperson business are illustrated below:
Differences Social enterprises Scalable
entrepreneurial
venture
Large company
entrepreneurial
venture
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Expectation level of
customers
Greyston Bakery use a
part of profit for the
uplift of the society
living style less
attention is given in
fulling customers
needs and demand
(Leitch and Volery,
2017).
Silicon Valley is
framing creative
business idea so that it
can be turned into
more profitable firm.
The demand and need
are not taken into
consideration.
Tesco main motive is
to maximize profit for
which they design
their own innovate
product and raises
demand for that
particular goofs in the
mind of the client.
Financial requirement Less finance is
required to conduct
social activities as it is
performed at small
scale.
Silicon valley work to
turn their idea into
profitable for which
they take others help
in these case also less
funds are required to
perform the task.
Tesco need huge cash
amount to come up
with creative idea in
order to full-fill the
demand of the
consumers in the set
time frame.
Profit maximization Greyston Bakery main
motive is to serve
society not to
maximize profit (Dai,
and Cole, 2017).
Silicon valley aims in
turning the creative
idea into profitable as
compare to rivalry.
Only profit
maximization is the
main aim of Tesco in
order to grow the
business to the next
level.
Focus They focus on society
upliftment
It focus on making
business more
profitable as compare
to competitors.
Here, this type of firm
focus on creating
tough challenges for
others so that they can
be in the leading
position.
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P3)
Micro business refers to as small business who share large ratio in reducing
unemployment, contributing more taxes and generating revenue. This type of business is easy to
open and operate in the global market. As well as less funds and resources are required for the
star-ups. The people who are hired in micro business are more loyal and trustworthy towards the
company and work so there is less turnout ratio as compare to multinational firm. Due to which
unemployment is reduced as people are employed. They are timely paying the taxes as they do
not want government interferences in their small business so they pay taxes timely without delay.
Small business bind their customers for longer time period because they in connect with client
emotionally. Due to which they do not witch to other brand and business earn huge revenue from
their consumers over the years.
Source : Growth in UK businesses in the private sector by number of employees from 2000 to
2018.
The above mentioned statistical figure states that purple line show that 180 people are
unemployed in the market. While blue line highlight that micro business contribution in the
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employment. The line is between 120 and 130 and are providing employment opportunity to the
people in the society.
Small business has contributes in taxes as they want to run their business without
government interferences. They are more conscious in running the business at small scale and
believe in building relation with customers so they pay taxes on time. On the other hand it is easy
to open small scale business as it requires less funds to start up. Directly or indirectly huge
employment opportunity is offered to the customers at local level. By this unemployment ratio is
decreased at a large scale.
Small business is discussed as those business which are being operated at small scale
either in the local region or within the nation. They are more focusing on survival of the business
and rather than coming up with creative product in the open market place. They run the business
with the motive of gaining huge profit in cut throat competitive world.
Contribution of macro business in the UK economy:
Local employment: Macro business raises local employment opportunities for the
people. Due to which unemployment ratio is eliminating to a large extent which is a positive
mark for the business. As macro business are focusing more on innovation in product it is
directly or indirectly creating huge job opportunities for the local people. It has raised the living
standard of the people.
Made nation financially stable: Macro business are coming with creative idea in the
market so it is raising international trade. Due to which more cash inflow is taking place which is
making the nation financially stable in nature as compare to rivalry (Eeshima and Anderson,
2018). Country having sufficient fund can grow and develop easily as well as other nations
investors will be interested to explore their business. By this more trading will take place that
will raise disposable income of the nation population.
Contribution of small business in the UK economy:
Raised living standard of the people: Small business operating within the nation are
helping them in raising the living standard of the people by retaining them ion the business for
longer time period.
Raised quality of product: They focus on building healthy relation with the customers
so they are focusing on quality of product. By serving high standard quality loyal customers can
be build over the years.
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P4)
Social economy is explained as those economy which is formed by rich diversity of
enterprise like, associations, cooperatives, foundations, paritarian institution . It is important to
study social economy as it directly or indirectly affect the business function at a tremendous
scale in cut throat competitive world.
The pillars of social economy are as follows:
Mutuals: The four pillars of social economy covers human, social, environmental etc.
Foundations: Organization for foundations in order to uplift society and community.
Charities:The amount gathered from charities are used in the upliftment of the social
economy so that healthy life style can be served to the people.
Associations: This is the another way of enhancing social economy as they contribute
more in eliminating poverty from the nation and creating more job opportunities.
Importance of start-ups on social economy is that they contributed greatly on the growth
of social economy as they share their profit for the upliftment of the community. They create
jobs of the people as well as take indicatives to reduces the illiteracy rate as they conduct many
programmes related to education.
Small business and start-ups ventures contributes in the growth of the social economy as
they gather funds from foundations and charities. The accumulated finance is utilized in the
development of the social economy. New venture creates huge job opportunities in the open
market place due to which poverty line is reduced which is a positive mark for the nation. Along
with this the cash amount collected through charities and foundations are used to conduct various
sessions and seminars where the issues of society is addresses and solved in order to improve the
social economy.
P5)
The difference between entrepreneurs and business manager are as follows:
Entrepreneurs Business manager
Definition Entrepreneurs are the owner of
the company and bear all loss
and profit at their own stake
(Gupta and Mirchandani,
In the open market place
business manger are the
employee of the firm and are
working on paid salary.
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2018).
Skills Communication, networking,
efficiency etc. are some of the
skills which should be there in
a entrepreneur so that work
can be performed easily.
Manger should have problem
solving skill, delegation etc. in
them in order to retain
employees for longer time
frame.
Traits Time management skill and
self motivation are the trait
which should be there in
entrepreneur in order to
motivate their employees to
perform better.
Decision making skills should
be there in manager so that in
the adverse condition best
suggestion can be given to the
employees regarding their
problem.
Characteristics Patience level, creator etc. are
the characteristic which should
be there in entrepreneur. So
that zeal of running the
business successfully.
Punctual and honesty are the
core element which need to be
there in the manger in order to
run the business activity
properly.
Flexible to dynamic
environment
Entrepreneurs are flexible
enough to get adjust with the
changing environment. They
are active in capturing
opportunities in the adverse
condition.
They are rigid in nature and
easily do not adopt change
(Hashim and Minai, 2018).
Risk taker They are more interested in
taking risk . As they think risk
is the key source of success in
the intense competitive world.
The believe in traditional work
and avoid taking risk in the
premises.
Characteristic of entrepreneurs: The essential characteristic of entrepreneur is to remain
patience in every condition weather it is success or failure, Creativity, good communication
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skills etc. Person holding all the characteristic in them can become successful entrepreneur in the
global market. This characteristic can be build with the phase of time.
Characteristic of Business manager: Punctual and honesty are the core characteristic of a good
business manager. Individual having this characteristic in them aid the company to run the
business operations smoothly and are able to complete the task in the set time span.
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P6)
Success of an entrepreneur depends upon the mindset and the personality of the
employees. They depends upon the characteristics of the individual and their behaviour. The
mindset and personality of the entrepreneur helps them to tackle with the people and the
situations efficiently. Various aspects of the mindset and personality motivates them to perform
and this can be analysed by OCEAN model :
 Openness to experience : This personality trait reflects the mindset which helps the
entrepreneur to try out new things, identifies their sensitivity for change etc. The factor
makes the entrepreneur able to take risk and handle situation.
 Conscientiousness : The conscientiousness people are organised and are conscious of
their actions that is why they establish their targets, prepares plans which make them
concentrated (Spigel, 2017).
 Extraversion : These people are outgoing and talkative but expect company of others.
They dominate other instead of motivating them.
 Agreeableness : This trait reflects the friendly nature of the person and their ability to
make their teams comfortable with them and other team members.
 Neuroticism : This trait experiences negative behaviour which put the person in stress
and ultimately affects their performance.
The personality and the mindset of entrepreneur make them successful as they have some
traits which are positive while some are negative but they effectively manage their negative
aspects. This helps them to achieve their goals and objectives y taking everybody with them as
the entrepreneurs taken in the project did.
Self motivation, zeal, never to give up attitude and passion are some of the
characteristics which boost people to become successful entrepreneur in the market. This help
individual to open their business despite of many criticizes from the friends, family, well-known
etc. all this characteristics motivate them to perform better in their business in order to survive
for longer time duration.
Personalty change their mind set and boost them to become an successful entrepreneurs
in many ways which are explained as under:
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1. Person being creative from the early days aid them to become entrepreneurs in the
market. Their personality and attributes guide them to come up with creative business in
the market.
2. From the earlier days the interest level of the person can be discovered as well as mind
set is trained to become entrepreneur in the up-coming years. From the early stage
individuals thinking ability and personality motivate them from within to come up
creative business and goods in the market. They are not born to work under other
company they trained them to become a successful entrepreneur wuth their own abilities
and capabilities.
P7)
The background of a person reflects the situation that they have faced in their life. Such
situations motivates a person to achieve something in their life by working hard. Whereas the
experiences helps the person to tackle the situation and the challenges which are faced by them.
The background and experiences either motivates a person or demotivate them. In this the
background and experiences of two successful entrepreneur i.e., Richard Branson and J.K.
Rowling are considered which either have motivated them to or stops them (Radzi and Ali,
2017).
Family background, educational background and personal experience that supports
entrepreneurship
Richard Branson belongs to a educated family but he himself did not performed well in
academics and left school at the age of 16 and was always interested in business due Branson
started youth magazine. As his family was educated so they supported him to expand their
business by helping him financially and morally. He was more interested in extracurricular
activities when he was in school which is why he keep on introducing various innovative
services in their business as they motivates them to do so (Peters and Kallmuenzer, 2018).
J.K. Rowling also belongs to an educated family but she had ambition to write. Her
mother praised her when she was wrote her first book at the age of 6 which motivated her to
keep on writing. She got the ides of Harry porter when she was travelling by train where she
drafted all the characters and the plot. The success of the book motivated her to keep on writing
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due to which she wrote seven parts. The Book of J.K. Rowling was rejected by so many
publishers initially but she did not give up and kept trying then she found a small publisher.
Example: Mark Zuckerberg family did not support them to become an successful entrepreneurs.
To open Facebook he collect funds from his friend Eduardo Saverin because he believe that
through this business he will be able to earn money in the near future.
Example: Mark Zuckerberg did not complete his Ha-ward University degree despite of this he
turn out to be successfully entrepreneur in today's this because Mark was passionate about this
business from the early days. Education is the way through which person can grow in their career
graph. Without education it is difficult to operate business at large scale because entrepreneur
need to understand every aspect of the market as well as their policies. It is difficult for a
illiterate or less educated to understand all this thing properly and operate their business.
CONCLUSION
From the above discussion it can be ended that entrepreneurial venture contribute largely
in growth of the economy. They are the pillars of the national economy as huge job opportunity
is created as well as poverty is eliminated from the society. Difference between entrepreneur and
business manager is discussed so that their skills, characteristic etc. can be better understood in
every aspect. Moreover, macro environment contributing to the UK economy is deeply studied
so that future plans can be designed for better outcomes.
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Online:
UK SME Data, Stats & Charts . 2019. [Online]. Available Through:
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>
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