Scope and the Definition of Entrepreneurship

Entrepreneurship
and
Small business
Management.

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
What is entrepreneurship.............................................................................................................1
Typology of entrepreneurship.....................................................................................................2
Social Enterprises........................................................................................................................3
LO 2.................................................................................................................................................4
Creativity and Innovation............................................................................................................4
Sources of generating business and entrepreneurial ideas..........................................................4
Role and importance of small firms............................................................................................5
International aspects of entrepreneurship....................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship and small business management refers to the management and start-up
of small business enterprises being based on the generation of new idea in business. This report
will highlight the scope and the definition of entrepreneurship and mention the differences
between the entrepreneurs, managers and Intrapreneur. The report will also include the
typologies of entrepreneurship mentioning the types of entrepreneur firms role of
entrepreneurship in public sector and the meaning of social enterprises. The report will highligh
the impact of small business on the economy including the intellectual property rights protection
by business, sources of idea generation of new business as well as the importance of small
business firms.
LO 1
What is entrepreneurship
Entrepreneurship- It refers to a start up of a new business and developing a willingness to
organize and manage a business venture by undertaking the risks to earn profits.
Entrepreneur- A person who starts a new business with an innovative or creative idea along
with the intention of performing business operations and earning profits is known as
entrepreneur(Burns, 2016).
Enterprise- Enterprise is the company being set up by the entrepreneur as his objective of
performing the business activities with a view of earning profits and enhancing its growth.
Differences between Serial entrepreneurs, intrapreneurs and owner managers-
There are major differences between- Serial entrepreneur, Intrapreneur and owner
managers, which can be explained in the following table-
Serial entrepreneurs Intrapreneurs Managers
Serial entrepreneur refers to a
person who set up his own
business with the use of new
idea or concept(Julien, 2018).
Intrapreneur is an existing
employee in an organization
who is authorized and in
charge of undertaking the
innovations in products,
services or process.
Managers are the person who
are responsible for
administration and
management of different
business activities in an
organization.
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Entrepreneur uses their own
resources and money for
conducting the business
operations and activities.
Intrapreneurs utilize company
resources for initiating the
activities of innovation.
Managers are responsible for
allocation of business
resources in different activities
for its accomplishment.
Entrepreneur works for
creating a leading position of
his business in the market.
Intrapreneur works for
bringing a change and
renewing the existing culture
of the organization.
Manager works for functioning
the activities of organization as
per the policies and in
accordance with goals and
objectives of the company.
Entrepreneur has the right to
take decisions regarding the
business operations and
activities being his own boss
and manager.
Intrapreneur works for
organization and is restrained
from taking any decisions
related to business(Hatten,
2015).
Manager is responsible for
making the major decisions
but in accordance to
company's policies and
interests of the top-level
personnel in the organization.
Typology of entrepreneurship
The Typologies of entrepreneurship can be explained as follows-
Growth firms and Lifestyle firms
Growth firms Lifestyle firms
Growth firms are the businesses that are been
operated by a person with view of revenue
growth and earning huge profits.
Lifestyle firms are been established by the
person with a view of altering his lifestyle and
simplify his life.
Growth firms usually seek investors who can
invest huge amount in their business and focus
on its growth, profitability and providing
maximum returns to the investor(Ribeiro-
Soriano, 2017).
Lifestyle firms have no interest in finding the
investors or answering them as they find out
the idea of staring and operating their business
at lowest possible cost.
Growth firms have their major focus on Lifestyle firms have the only focus on life
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business goals and earning profit is prior in the
list.
goals and improve the comfortability of life
through their business.
Public Sector Entrepreneurship- Public sector entrepreneurship refers to generation of
innovative idea or process and implementing it into public sector practice or organization. It is
mainly designed for the future private entrepreneurs who aim at building new ventures being
operated and selling into public domains.
Role and characteristics of micro, small and medium-sized organizations-
Micro Small Medium-sized
Micro enterprises are the
organizations that consists less
than 10 people. The major
focus of these enterprises is to
lower the production cost and
maximizing the revenues and
profits. These enterprises are
not formally organized and
consists no proper place of
work for the people
involved(Volery and
Mazzarol, 2015).
Small business organizations
are the ones that consists less
than 50 people in the business
and are usually being operated
in the form of independent
ownerships or partnerships.
These enterprises can be in the
form of restaurants,
manufacturing plants or law
firms etc.
Medium-size organizations are
the businesses that contain
employees less than 250.
These are the structured
organizations with
management and premises.
These are the emerging
business coming up with the
unique ideas or products and
focus on the business
enhancement and growth in
the market with relation to
large organizations.
Social Enterprises
Social enterprise is an organization that uses the commercial strategies to make
improvements in financial, social and environmental well-being. These enterprises can be in the
form of profit or non-profit firms. The main objective of the social enterprises is for the well-
being of the society and communities. Social enterprises have both business goals and social
goals that eventually makes the growth of its business along with widespread of its activities as
well. The main purpose of these organizations is to promote, encourage and implement the social
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change in the society and spread the message as well. The person who stars or operates these
type of enterprises are known as social entrepreneurs who invest their resources or find out
funding sources from different big firms in the form of charity and good cause for society or
environment. The prime focus is for the betterment of society through its services provided.
LO 2
Creativity and Innovation
Creativity- It is an act of creating a new reality by turning of new ideas and techniques through
unique efforts and understanding. It includes new ways to perceive the world, finding out hidden
patterns as well as making connections with different ideas as well as structuring and presenting
a new concept or solution out of it.
Innovation- Innovation is a combination of new ideas, creative thought, innovative techniques
and inventing a new product that is different and unique from others. Innovation can be in the
form of products, technology or process that is totally based on new ideas and thoughts.
Sources of generating business and entrepreneurial ideas
Business and entrepreneurial ideas can be generated from various sources and
surroundings of the daily activities. The following are the few sources of idea generation-
Interests and Hobbies- Hobby is an activity that is being initiated by individual during
his free time it may be in the form of music, reading, dancing etc. Interests are usually combined
with the hobbies. Hence, these small activities can help the individual to generate the business
ideas through different topics and helps them to set up business through it.
Customer surveys- The staring or initial point of any business is the clients and
customers. One must be aware for the customer preferences, choices and their demands for
different things and products. All these elements can be achieved through customer surveys like
questionnaires, reviews and other methods(Storey, 2016). These elements help the individual to
generate any business idea in relation of the customer choices and helps them to realize the
probability of its survival and growth outcomes.
Mass media- These are the main sources of every information needed or required by an
individual. Newspapers, magazines, social media and television provides number of information
sources and articles which helps the individual in generating the ideas of business in several
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topics or aspects. Also, it helps the individual for researching the possibilities, ways and other
elements related to his idea and convert it into the business.
Protection of intellectual property rights by business- The intellectual property rights of the
business can be protected using these tools-
Patents- These are the well known property rights protection tools especially used to
protect the ideas, concept or design being invented by the business. This protects the right to
copy the business concept by other firms and helps in intellectual property protection for the
small businesses.
Copyrights- These rights are the protection of the original concept from being used by
others. They are usually used in music creations, creative works and art. They restrains other
individuals from copying or using the original concept.
Role and importance of small firms
Small business are important for the UK economy for following purposes-
Turnover- This is the important factor that drives towards the economic contribution of UK.
Small and medium-size businesses have combined turnover of £2.0 trillion in 2018, which shows
its contribution to the UK economy. These figures amount about 52% of the private companies
turnover in total. Thus, it can be observed that there is immense growth opportunities and
improvements in small business of UK.
Employment- However the owners of small business are the sole traders or independent
professionals the major contribution to the employment in UK by the small business is about
16.3 million of people that amounts about 60% of the overall private-sector employment in the
economy.
Growth- There has been tremendous growth in the small business sector as in 2018 there were
1.4 million employing business and 4.3 million of non employing businesses. There hasd been
tremendous rise in the last year, as with the growth of 31000 companies being raised in the form
of small and medium-sized enterprises.
International aspects of entrepreneurship
International differences that affects business start-ups- There are number of international
differences that affects the business start-ups and its activities of business. They can be explained
as follows-
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 The trade relations between the countries that includes the regulations affect the idea of
starting up a new business with a view of forecasted opportunities related to trade and
export being affected through different regulations.
 The political issues such as Brexit also affects the start-ups as there will be change in the
rules and regulations in the economy and further leads to delay or change in the idea of
start-up.
 The financial condition and availability of finance is the main factor that affects the start-
ups of new business as less the availability of finance, delayed will be the start-ups.
 The increasing tariffs and duties on the goods exported to various countries affects the
prices of the goods and profitability which again affects an individual to start the business
by considering these issues.
CONCLUSION
From the above report it is summarized regarding understanding of different range of
ventures, their types as well as the nature being different from each other. The report stated the
impact of small business on the economy by mentioning various factors, international trends and
other elements in detail to understand the management of small business enterprises.
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REFERENCES
Books and Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small
Business Journal. International Small Business Journal. 33(4). pp.374-396.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
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