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Report on Impact of Micro and Small-business on UK economy

   

Added on  2020-06-04

21 Pages6076 Words25 Views
Entrepreneurship and SmallBusiness Management

Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1P1 Different type of entrepreneurial venture and explaining how they relate to the typology ofentrepreneurship.....................................................................................................................1P2 Similarities and differences between each........................................................................3M1 D1.....................................................................................................................................5P3 Data and statistic to illustrate the impact of micro and small business have on the economy................................................................................................................................................6P4 Importance that small businesses and business start-ups on the growth of the socialeconomy...............................................................................................................................11M2 D2...................................................................................................................................12PART 2..........................................................................................................................................13P5 What makes a successful entrepreneur............................................................................13P6 How aspects of the entrepreneurial personality reflect entrepreneurial motivation andmindset. ..............................................................................................................................14M3 D3...................................................................................................................................16P7 how a person’s background and past experiences can hinder or foster entrepreneurship.16M4 D4...................................................................................................................................17CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18

INTRODUCTIONEntrepreneurship and small-business management are connected to each other in terms ofmanaging business at domestic level. The report will cover different types of entrepreneurialventures and relation to their typologies. The similarities and differences between entrepreneurialventures is also covered with roles, characteristics and objectives of ventures such as social,public and private business. The impact of micro and small-business on the UK economy isdiscussed with relevant examples, graphs and tables which helps to demonstrate positive andnegative impact. The importance of small-business and business start-ups towards thedevelopment and growth of UK economy will be discussed in this report. The report willdemonstrate characteristic, traits, and skills posses by a successful entrepreneur. The reflection ofentrepreneur personality towards his or her mindset and motivation covering factors that hinderor foster entrepreneurship will be discussed in this report. PART 1P1 Different type of entrepreneurial venture and explaining how they relate to the typology ofentrepreneurshipEntrepreneurship: Entrepreneurship is a process of launching, designing and running abusiness , which is often a small firm. Creator of the business is known as entrepreneur. Anentrepreneur has idea how to create products and services for customers in the market in order tosupport sales. Entrepreneur assume all the risks and rewards of the business (Burns, 2016). Anentrepreneur faces many difficulties and uncertainties in the company but focus on objectivesand aim will help to take right decisions in order earn profitability effectively. Small businessesare contributing towards economic growth and development that, UK government alsopromoting at domestic and international level. It can be said that, not all the entrepreneurship aresame that there are four different types described by Steve Black as following:Small-business entrepreneurship: It can be said that there are total 5.7 million small businessesin United Kingdom. They make up 99.7% of all companies and employ 50% of all non-governmental workers. Small ventures such as travel agents, groceries, stores, plumbers,electricians, carpenters and internet commerce stores etc. These type of businesses are mostlymanaged and run by local families in order to feed family members and make profits. Funds forbusiness is received through friends, family members or bank loan. 1

Scalable start-up entrepreneurship: Scalable entrepreneurs are different in nature that they arefocused on their vision. They are so much confident that their vision could change the worldeffectively. The business is started with a unique research of ideas and thoughts. Theentrepreneur hire best and quality employees in order to achieve vision and objectives. The mainwork is to search scalable and repeatable business model in order to select best and appropriateto start the venture. Large company entrepreneurship: Large business have finite life cycle. Such kind of businessesare established with a huge amount of capital and mainly focused on increasing profitability andproduction (Schaper, Weber and Gibson, 2014). Changes in new technologies, competitors,legislation and customer taste and preferences create pressure of descriptive innovations withinbusiness effectively. Large business is required to create new products and services forcustomers in the market. The entrepreneur manage a large number of employees in the firm inorder to manage and control various business and operational activities. It has been seen that thelarge businesses are mostly managed and run by male entrepreneurs.Social entrepreneurship: Social entrepreneurs create products and services to solve social needsand requirements. Such type of entrepreneurs are motivated towards social services and provideservices to those members who are not able to purchase them due to the financial issues. Butunlike scalable start-ups their goal is to make the world a better place, not to take market share orto create to wealth for the founder. They may be non-profit, for-profit, or hybrid. Male andfemale both can be social entrepreneurs in this sector. They do not work for profitability or anyincome.Determined entrepreneur: Determined entrepreneurs are mostly the pacemaker instead of pathfollowers and they are also not interested to copy the products and services of any other businessto increase their own sales and profit (Mariotti and Glackin, 2014). Such type of entrepreneursare so much confident that they can make a change with a unique business idea. They work forthe success of company in order to achieve profitability and production. Male and female bothcan be determined entrepreneurs.Thus, it can be concluded that there are mainly four types of entrepreneurship and theyare connected to their typologies as well. Small business work for a limited income and otherside large ventures operate to increase profitability and production. Different entrepreneurs have2

various thinking, behaviour, characteristics and knowledge from which they start a venture tobecome successful in the future effectively.P2 Similarities and differences between eachPrivate business: Private business is owned by one person or a small number of group such asfamily members in order to establish a income of source and earn profits. The business is run byeither non-governmental firms or a small number of shareholders in the market. The businessespolicies and strategies are managed and controlled by government legislation effectively. Thebusiness is mainly focused on improving profitability in order to earn high revenues.Public business: Public corporation is a corporation whose ownership is dispersed among thegeneral public in many shares of stock which are freely traded on a stock exchange or in over thecounter market. In simple word public business are those in which all the activities related tocompany such as operational activities, policies and strategies are managed and controlled bygovernment effectively (Dana, 2016). There is no role of private individuals. The sector of publicbusiness is very large and work for providing better and quality services to people in order toenhance economy development and growth. Social business: Social businesses are concerned with services that are reliable and effective forthose who can not afford them. Such kind of entrepreneurs and people working in firm do notexpect profitability instead they provide quality products and services to people. Socialentrepreneurship is the use of start up company and other entrepreneur to develop, fund andimplement solution to social, cultural, or environmental issues. The concept is also applied ondifferent firms with various aims, sizes, objectives and beliefs.Different types of entrepreneurs have many similarities and differences that they all workfor a common objective of successful business. They are promised towards providing qualityproducts and services to customers in the market. Similarities and differences between different business ventures:SimilaritiesanddifferencesSmall Business VenturesScalable Start-Up VentureSocial VentureSimilaritiesProduction and employeesboth are limited butfocused on businessThere are few people whohave adequate knowledgeand skills of businessNumber of workersinvolved in socialventures in order to3

success and to createincome of source.operations.provide services to localpeople.SimilaritiesLocal workers such asfriends or familymembers are involved forbusiness expansion andincreasing employment.Such businesses have planand strategies for businessdevelopment andimprovement in order toachieve vision effectively.Social ventures help toincrease economicalgrowth and developmentby providing qualityservices.differencesSmall-business venturesstarts with a singleproduct or service and tryto achieve customer basefor expansion (Hatten,2015).These businesses arefocused on implementingthe vision goals andobjectives and try toachieve them with uniqueideas and thoughts.The social ventures arenot concerned withearning profitability thatthey work to improve anindividual life.differencesLow risk involvementwhile starting thebusiness.High risk involvement andthey are passionate aboutachieving success.No risks are involved asthey are working for thewelfare of societyeffectively.Differences between male and female entrepreneur:MALE ENTREPRENEURFEMALE ENTREPRENEURMake easy decisions.Face difficulties sometimes while makingdecisions.The focus of business is economy and cost. Social contribution and focused on quality.Effective financial decisions.Conservative for financial risks.Have enough information regarding businessoperational activities.Require detail information about businessoperations and activities.logical thinkers.Intuitive thinkers Aggressive towards business expansion.Conservative about expansionStrong initiative.Positive, autonomous and think critically.4

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