Entrepreneurship and Small Business Management

This report explores the various aspects of entrepreneurship and small business management, focusing on the UK economy. It examines different types of entrepreneurial ventures, their similarities and differences, and the impact of micro and small businesses on the UK's economic growth. The report also explores the importance of small businesses in the social economy, analyzes the skills, traits, and characteristics of successful entrepreneurs, and investigates the factors that hinder or foster entrepreneurship.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Examining different types of entrepreneurial ventures and their relation with the typology
of entrepreneurship......................................................................................................................1
P2. Basic similarities and differences in between the various entrepreneurial ventures.............2
TASK 2............................................................................................................................................4
P3. Presenting the statistical data for micro and small business impact on the economy of UK.
.....................................................................................................................................................4
P4. Importance of small businesses and start ups in the growth of social economy...................7
TASK 3............................................................................................................................................9
P5. Different skills, traits and characteristics of the successful entrepreneur.............................9
P6. Reflection of different aspects of entrepreneurial personality on motivation and mindsets
...................................................................................................................................................10
TASK 4 .........................................................................................................................................11
P7. The background and experience that hinder or foster entrepreneurship.............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Illustration Index
Illustration 1: data for various SMEs...............................................................................................5
Illustration 2: Revenue from SMEs................................................................................................6
Illustration 3: Employment in UK...................................................................................................7

INTRODUCTION
Entrepreneurship refers as the new idea for business that is created by an individual or
group of persons to earn profits using their skills and talent. It is also describes as the willingness
and capacity to manage, organise and develop new business venture for making profits (Storey
and Greene, 2010). The business that carry on by the entrepreneur also, has risk in order to
sustain. Small business is operates and independently owns by the small entity. Its size is small.
In this report, various types of entrepreneurial ventures are defines. Further, similarities
with differences between entrepreneurial ventures discuss. Furthermore, the importance of small
business towards the economy is describes. Lastly the report covers various environmental
effects that hinder or foster entrepreneurship.
TASK 1
P1. Examining different types of entrepreneurial ventures and their relation with the typology of
entrepreneurship
Entrepreneurship is a new and innovative idea that involves services, products, system,
process or new technology to support the work. It is a process by which product or service will
be delivered with the use of developed technology. It needs enough money to development and
support business and the idea is the point that generates revenue (Storey, 2017). The
entrepreneurship creates own control like a boss; it is an ambition to start something from their
own skills and it is a special opportunity to earn more money. An individual can start any
business which is his or her interest category and he or she has sufficient experience to face
several problems and issues that can raise in that business. Entrepreneurship business has many
types and these entrepreneurial ventures are as follows:
 Small Entrepreneurship – This type of entrepreneurship venture starts with the small
fund or capital. The entrepreneur uses his own capital or collect from some source to start
a new business. He or she has a new idea and various innovations for this business. The
organisation has some activities that are small and short scale as the measurement. The
workforce or manpower is also minimum for optimisation of cost (Stokes, Wilson and
Wilson, 2010). Example of these types of entrepreneurship are proprietorship, general
store and many more.
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 Private Entrepreneurship – In this type, whole management and control are in the
hands of private organisation and they perform various functions to get competitive
advantages and objectives. The private entrepreneurship has an intention to gain more
profits or money (Schaper and et.al., 2014). So, for this reason, there are more risks in
their business and start ups to reach such level of profits. These risks are borne by the
private entity and they would be liable to all responsibilities.
 Social Entrepreneurship – This type of entrepreneurship are starts with the intention of
help to the society and this is like the NGO. It is a special type in entrepreneurship that is
work for development of society and it also works for it. In its major activity, help to
society and
 Trading Entrepreneurship – This basically deals with the several activities and these
activities are agreements with branding, maintaining and marketing of various products
and services of particular entrepreneurship business (Scarborough, 2016). The business
director operates their business activities and they work for earning profits.
 Large Entrepreneurship – In this type, the person who starts his business with fulfil all
legal requirements and documentation and run various activities. This business is run at a
large scale and their assets and structure are also big. In such operations, there is a huge
requirement of finance and capital employed.
P2. Basic similarities and differences in between the various entrepreneurial ventures
Every venture is different from each other and many elements divided these business in
several categories. A small business of entrepreneurship may be sole proprietorship or
partnership. Every business has its own resources and assets which are used in their business
activities and in earning profits (Blackburn, Hart and Wainwright, 2013). An entrepreneurial
venture refers to the concept of starting a new business with innovative idea and it works
accordingly. There are many types of entrepreneurial ventures and in these ventures, there are so
many differences. These are described as follows:
 Management strategy – This is an important difference that every business has their
own separate planning and risks. These plans are made for long term period. It is a fact
that each entrepreneur has separate plans and they take more risk without any strategy. In
actuality, the innovation and idea are screaming for achieving the business goals and
objectives. In various organisations, it is seen as a big differential element.
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 Operations and function – It is the main difference in between various kinds of public,
private and social entrepreneurship that such businesses are better in their functional and
operational activities and their attributes different from each other (Bridge and O'Neill,
2012). Public entrepreneurship ventures work for the development and growth of whole
country while private works in a particular urban area.
 Leadership traits – Every type of venture is highly motivated and influential leadership
is able for maintaining and controlling the management their organizational business. It
facilitates their employees and staff members have better training and development
facilities. Many ventures have various types of leaders with different skills and qualities.
 Possession – In private entrepreneurship ventures, the ownership and possession is
wholly controlled by a single person or entity (Burns, 2016). In public ventures,
ownership is governed by the legal body or several public institutions. In the social kind
ventures, sometimes it is handles by the group of person or sometimes government.
 Infrastructure and profits – The public ventures operates at very large scale but it is not
in well condition and its profits are distributes in the owners with their profit sharing
ratio, this is decides in their board meeting. In other side the private ventures are run its
business activities at large level with the best infrastructure facility and the profits and
earnings are divided in their owners which are pre decided in their registration. In this
case, social entrepreneurship ventures operate for the charity and work for public welfare
so its infrastructure is average level and its profits is known as surplus which use for its
business expansion.
 Employment – The private ventures provides more and more jobs for public because it
works at the large level and the wages or salary are provides excellent (Dennis, 2011).
The public entrepreneurship ventures also provides large number employment in that
particular country and social ventures provides employment at big level but there are
limited jobs in this type of ventures.
 Operators or entrepreneurs – In such criteria, the private ventures are owner and
operates by the male and female entrepreneur or both. The public sector ventures are
operates by various types of people. In social entrepreneurship business, there are many
partners and owner for conducting their business activities.
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 Research and market plan – In this context, private ventures run for more profits so
their marketing plans is makes for expansion in their sales revenue. The public ventures
plan their marketing strategy for achieving growth and development of this business in
the target market (Hatten, 2012). In other side, the social ventures make their market plan
to promote and develop so for this reason their employees work properly and maintain
the business environment.
TASK 2
P3. Presenting the statistical data for micro and small business impact on the economy of UK.
In UK country, the micro and small are the key businesses for growth in their GDP.
These are the heart for its economy and it has a great impact of its operations. It contributes at
the large scale for development and growth of the nation (Hatten, 2015). There are many types of
micro, small and medium enterprises. These explains as follows :
Micro Enterprises – The business have less than 10 employees and its output is not more than
2.5 million pounds. This is run its operations at small level.
Small Enterprises – In any business, there are less than 50 manpower and turnover is less than
10 million pounds are cover in it.
Medium Enterprises – This ventures have less than 100 employees and this business has a sales
of less than 50 million pounds.
In UK nation, this chert is showing the total percentages of SMEs in UK nation :
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In this above statics shows the proportion of small, medium and micro businesses in the
UK in 2017 and this sector, there are many businesses like renting, real estate, manufacturing,
hotels and restaurants, agriculture, fishing and hunting, construction sector and many more
businesses.
The profitability statistics by the SMEs in the UK from 4th quarter of 2014 to 4th
quarter of 2016 are as follows :
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Illustration 1: Data for various SMEs
(source – Percentage of SMEs sector in UK, 2018 )

Illustration 2: Revenue from SMEs
(Source – Average profit of SMEs in 2014-2016 in UK, 2018)
The above statics shows that the average profits made by the different SMEs in the UK
from the year ending 2014 to 2016 and it is divided by the size of these ventures. The enterprises
which operates its businesses at the large scale, there are numbers of employees and those
businesses also generates big amount of profits (Ligthelm, 2010). In small, medium and micro
businesses, there are profits made 8000 GBP approximates in 2015 and 9000 GBP in 2016 after
that in 2017 it increased more than 12000 GBP.
There are many opportunities in employment sector from different SMEs in UK. These
are discusses as follows :
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In such data's the employment generates by the SMEs in UK from 2014 to 2016 and all
statistics are in number of 1000. These are explains that in 2014 there are total 20000 employees
work in various ventures and it is increase in 2016 to the 245000. There are many people works
in these small, medium and micro enterprises.
P4. Importance of small businesses and start ups in the growth of social economy.
The economy in UK is developed and there are so many organisation run as small,
medium and micro businesses. In 2016, there were more than 5.5 million private sector
businesses which operates its business activities as SMEs. The main reason of increasing trend,
is facility of loans and grants to those businesses and easy documentation process (Neck and
Greene, 2011). It gets contributes positively from government side with backed business loans.
In last three years, 60 % of the total funding received from outsiders to the SMEs. Many start ups
and SMEs turn to the government and banks for grants and various loans. Small businesses and
start ups contributes too many profits and support to the economy. SMEs defeat over the larger
counterparts of the economy. It keeps market as fresh and in this sector there are several
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Illustration 3: Employment in UK
(Source – Average employment, 2018)

innovations. There was the colossal increase in the number of small businesses between 2014 to
2017. SMEs have performed a vital role in lifting to upward the UK economy and the spirit of
entrepreneurial is grown up. The medium and small sized businesses in the UK have a mutually
symbiotic relationships and beneficial for country's overall economy. Its contributions is
determined in following points :
 Responding flexible to challenges and problems – In every small business is a little
chain, structure or hierarchy for control or command in that business (Nga and
Shamuganathan, 2010). They also have set many methods for establishing and operating
whole procedures so that they work hard. These are always more flexible so by this
reason they reach at quick decision whether it required.
 Decrease expenses – Such businesses are small size so their operational and businesses
activities are very low cost and there are no more fund requirements so it is beneficial for
the economy. In addition to this, they operate with infrastructure and low heating, low
costs, minimum rent and rates to pay. Its impact on the end consumer that they are able to
purchase those businesses products and services at lower price.
 Catering for niche or limited markets – These businesses produce many products at
high level in their target market and their prices also low so for this reason, it is beneficial
for the economic growth (Storey and Greene, 2010). These businesses are also uses
quality raw material at low cost. It will support the optimization the cost. They also able
to sell these products into small markets with personal clients.
 Innovations and creativeness – In such category, small businesses are well positioned to
develop and introduce the new ideas. In this context, there are an example that is a person
start his or her business of the body shop, he or she can develop a range of
environmentally genial cosmetics in simple packaging. This would allow to the company
for enhancement.
 Creating personal relationships – The small businesses have to build personal
relationships with its employees, customers, suppliers and public (Storey, 2017). From
any small business and start ups a person understand all dealings and procedures about
this business.
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TASK 3
P5. Different skills, traits and characteristics of the successful entrepreneur.
The entrepreneur has many skills, talent and capabilities that can use in his or her
business for making more profits. The entrepreneur found and run a special business and
working like the employee or the boss in that firm (Stokes, Wilson and Wilson, 2010). For
achievement of the business, he or she would be able to manage and control whole business. In
his or her capabilities, leadership, communication skills are major tools for expansion its
business. The entrepreneurs are a different personality in the world, they are the persons which
have many innovative ideas that are used in their business and it will become successful. There
are some traits, skills and characteristics that have been in an entrepreneur for the process of
expansion of his or her business. In this context, the skills, traits and personality characteristics
of two successful entrepreneurs in their business that are Mark Zuckerberg and Bill Gates. It is as
follows :
 Traits -
◦ Passionate About Their Work – An entrepreneur has very important trait that he or
she is passionate about his operational work in the business. This trait will make the
business as successful and they are completed it efficiently or effectively (Schaper
and et.al., 2014). The entrepreneur Mark Zuckerberg and Bill Gates have this trait in
their personality.
◦ Risk Takers In The Business – Every businessman or an entrepreneur must be risk
taker and this is too much useful for his or her business. A successful entrepreneur
always known as the risk taker in his or her business. Mark Zuckerberg and Bill Gates
both are known as the risk takers in his business so their business reach at height of
success
 Various Skills -
◦ Managerial – It is most common skill in every business entrepreneurial for managing
all activities in the business (Scarborough, 2016). This is known as the basic skill and
it is too much useful for development the organisation.
◦ Leadership – Every entrepreneur is a leader in his or her business and he would be
able to leads the team and give inspiration to the team member in order to achieve
desired goal and success.
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◦ Innovative – The entrepreneur has many ideas that useful for controlling the
business. It is an essential element that makes the entrepreneur different from others
(Blackburn, Hart and Wainwright, 2013). It makes and creates new ways of
increasing living standards of people. In this context, Bill Gates and Mark Zuckerberg
are innovative in their business so they reach at the height of success.
 Characteristics -
◦ Self Confidence – This type of characteristic refers to the state of mental ability of
any entrepreneur. It is an important for the businessman who start a new business. By
using this characteristic, the entrepreneur achieve desired growth and development of
his or her business.
◦ Persistent – It means, ability to accomplishing business work in the right way and
both the successful entrepreneur Bill Gates and Mark Zuckerberg have this type of
characteristic.
P6. Reflection of different aspects of entrepreneurial personality on motivation and mindsets
The reflection is describes from many personality theories and these are also used to
determine various types of characteristics in the entrepreneur. In this context, there is a model for
finding various personality traits (Bridge and O'Neill, 2012). It is a model that describes major
entrepreneurial personality skills. It is a standard model useful for that entrepreneur to find
various objectives and goals of that particular business. It is helps to businessman to understand
the nature and behaviour of two successful entrepreneurs. Their personality skills describes
above, Bill Gates and Mark Zuckerberg. The entrepreneur must know about them and this will
help in his or her business. According to that model, major features that should have in the
entrepreneur, are as follows :
 Conscientiousness – It is a special quality that seen as the aspect of the entrepreneurial
personality. It is the personality trait of being vigilant, careful. It can imply for a desire
work to do task well and to take obligations in the business. It is a trend to be efficient
and organized as opposed to easy going process.
 Extroversion – It is one of the big five theory of personality, it is refers as characterized
by talkativeness, assertiveness, sociability and excitability. The persons who are high in
the extroversion tend, they seek out opportunities and stimulation to pursue with other
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persons (Burns, 2016). These entrepreneurs are always described as being energetic,
positive and full of life.
 Agreeableness – This personality traits is usually friendly, warm and tactful nature. An
entrepreneur generally has an optimistic view of human resource and nature that get
along well with others. An individual scores low on agreeableness and it may put their
own interests above those others.
 Openness – An individual with top level of openness have a normal appreciation for
unusual ideas and art. This type of persons usually imaginative and not practical (Dennis,
2011). An individual who are low in openness to experience would not try new ideas and
innovations. Individuals who score lower in openness on a career test are generally more
closed-off, resistant to change and analytical.
 Neurotic-ism – It is states that a person's ability to remain stable and balanced. At the
other end of the scale, that person high in neurotic-ism has a tendency to easily
experience with opposite emotions.
TASK 4
P7. The background and experience that hinder or foster entrepreneurship.
In every business whether it run its activities at small level or large level, there are so
many issues and problems which are related to the success of that particular business. The
entrepreneur starts a new business with new idea and operates its business activities and he or
she faces several problems to achieve desired goals and objectives (Hatten, 2012). They also face
many problems while every one gave up with them and run away. So in these type of situations,
they need to work hard and perform their best with effectively and efficiently. Their business
success is depends on them and their working environment.
In every new business, there are major problems are funds, equipments, labour, raw
material and many more. So for this reason, the entrepreneur make sure that all these problems
are rectified with effectively and efficiently. In that business the main problem is cash flow that
is essential for the small entrepreneur in surviving their business. The second problem is raises
from human resource department for hiring new workers or team members. The entrepreneur
must solve this issue by appointing the best human resource manager. The manager applies a
process that start from reviewing resumes, sitting through interviews and sifting through so many
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unqualified candidates to find the diamonds in the rough. Further, third problem is generally
comes from management of time (Hatten, 2015). Every entrepreneur might be faced the biggest
problem that is time management. It is usually come in different manners. They have also an
issue of deputation task. It causes big issue in any business concern. There are some difficulties
of choosing of products that what product or services can be sell. For become a successful
businessperson, they should know about their products and also know about their marketing
schemes.
CONCLUSION
For the start up a new business, there are many requirements that are like skills, talent,
work capacity and delegate to goals. An entrepreneur is a person who has an idea to create a new
product or service. Entrepreneurship is a process by which the product or service will be
delivered, or the technology will be developed In this report, there are many types of start up
businesses and differences among them described. The entrepreneur starts a new business for
become a boss of that business and he or she starts something from his or her talent. This report
also determined various SMEs in UK and its size, scope, employment and profits that are
contributes in UK economy.
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REFERENCES
Books and Journals
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.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(2), pp.149-162.
Hatten, T.S., 2012. Small business management: Entrepreneurship and beyond. Cengage
Learning.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review, 14(3).
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management, 49(1), pp.55-70.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics, 95(2),
pp.259-282.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper and et.al., 2014. Entrepreneurship and small business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship, pp.176-
193.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial Times
Prentice Hall.

Online
Average employment. 2018. [Online]. Available through:
<https://www.statista.com/statistics/291299/average-profit-of-smes-in-the-uk-by-
enterprise-size/>
Average profit of SMEs in 2014-2016 in UK. 2018. [Online]. Available through:
<https://www.statista.com/statistics/291409/small-and-medium-enterprises-sme-median-
average-profit-in-the-uk-by-sector/>.
Percentage of SMEs sector in UK. 2018. [Online] Available through:
<https://www.statista.com/statistics/291210/sme-small-and-medium-enterprises-united-
kingdom-uk-by-sector/>.
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