Entrepreneurship and Small Business Management in Red Bridge Council

Entrepreneurship and small business management [pic] INTRODUCTION An individual and people who run and bring innovation & also undertake all risks of businesses is known as an entrepreneur. TASK 1 1 P1 Types of entrepreneurial ventures & their relationship with typology Entrepreneur: This is could be stated as that one person who puts lot of efforts and money or innovative idea in starting up their venture to be it successful and profit generating. Entrepreneurialventures:Therearedifferenttypes of entrepreneurial ventures which have different purpose and

Entrepreneurship and small
business management

INTRODUCTION
An individual and people who run and bring innovation & also undertake all risks of
businesses is known as an entrepreneur. This present study will describe and show different
types of entrepreneurial ventures along with typologies. Red bridge council is a local authority
that consists of more than 35 parks and playgrounds for enjoying (Rawhouser, Villanueva and
Newbert, 2017). It will also show significance of small and start-up industries in developing
local economy and improving living standard of people.
TASK 1
P1 Types of entrepreneurial ventures & their relationship with typology
Entrepreneur: This is could be stated as that one person who puts lot of efforts and
money or innovative idea in starting up their venture to be it successful and profit generating.
Entrepreneurship: This is a procedure and activities of starting a new business. The
main motive behind setting up entrepreneurship will be providing better service to people,
earning of money and enabling the idea into practical knowledge.
Entrepreneurial ventures: There are different types of entrepreneurial ventures who
have different purpose and for fulfilling their own personal needs and objectives they run
businesses (Morris and et.al., 2018).
Typologies
Small enterprises: A small business is s a type of business that is not owned by government and
it is operated by an individual. It may be sole proprietorship, partnership and corporations. This
type of business can be run by any type of person as it does not require too much money and
investments. Examples: grocery stores carpenter etc.
Scalable enterprises: This type of enterprises can be run by those individuals who want to bring
new and innovative ideas. For example a council (red bridge borough) also brings new ideas of
doing things.
Large enterprises: Large enterprises includes those businesses who produces products for
earning money according to the tastes & needs of their customers. Red bridge council also
focuses on making new products for their customers.

Social enterprises: This type of enterprises are being run by those individuals whose main
purpose is to serve people and fulfil social needs. This entrepreneurs and entrepreneurship wants
to improve life style of society and people.
Ventures: In the context of entrepreneurial ventures there are several types of ventures such as:
Survival: This type of ventures lives for providing basic subsistence to their family. This type of
business exit for providing and fulfilling basis personal financial needs so entrepreneurs do not
have strong banking relationship and also may be or may not be formally registered. There is no
enough capacity to reinvest once costs are covered.
Lifestyle: A lifestyle venture is run by its founders with the main purpose of gaining a pre
determined and a particular level of income by which they can enjoy their lifestyle. These type
of businesses generally do not have enough and more potential as they only have limited
scalability for growth (Kuratko, 2016).
Managed growth: This type of venture has a strong & workable business model which always
wants a stable growth over a time. These types of entrepreneurs focus on continuous and ongoing
reinvestment & launches new products in new markets.
Aggressive growth: This type of ventures is technological based as they have strong innovation
capabilities. The main purpose of these types of ventures is to take exponential growth.
P2 Dissimilarity and sameness between entrepreneurial ventures
Different entrepreneurial ventures are different, capabilities and other things but still they
have some similarities which are being described as follows:
Similarities
Sustain against large business: The main purpose of all types of ventures is to make and
become sustainable business against large business. They want to being in a competition and also
wants to attract customers so they want to become sustainable business.
Creating a brand name: Any type of business and ventures want to create a strong and an
effective brand image. No one wants to decrease and spoil their image and reputation. So it can
be said that it is other similarity (Oo, and et.al., 2018).
Constant innovation: Lifestyle, survival and other ventures are known for their innovation and
their purpose is also to bring constant innovation.
Creative idea: With the help and by creating unique ideas they can achieve their different
purpose and objectives. Without creating ideas it is not possible for any type of venture to

accomplish their goals. So it can be said that this is the similarity and purpose between different
ventures (RezaeiZadeh and et.al., 2017).
Differences
Basis Survival Lifestyle Managed growth Aggressive growth
Annual growth rate This type of
ventures have
nominal day to
day annual growth
rate.
In the context of
annual growth
lifestyle ventures
have
approximately 5%
weekly as well as
monthly
operations'
maintenance.
These ventures
have 10-15 % in
1-2 years.
These type of
ventures have
more than 20% in
2-5 years.
Management style Reactive type of
management style
is being followed
by this venture.
Lifestyle ventures
follow tactical
management style.
Managed growth
ventures follow
strategic
management
style.
Strategic as well as
proactive
management style
are being followed
by aggressive
growth ventures.
Entrepreneurial
orientation
They have very
low
entrepreneurial
orientation.
These ventures
have low
entrepreneurial
orientation
(Zamfir, Mocanu
and Grigorescu,
Moderate. High
entrepreneurial
orientation.

2017).
Organizational
structure
Little to none. It is lifestyle and
work for fulfilling
basic needs so they
follow simple
structure.
Functional and
centralized
structure followed
by these type of
ventures.
They follow
product and
market based and
functional as well.
Rewards Weekly income as
rewards.
Salary and bonus
are type of rewards
for them.
Performance
basis incentives,
salary and equity.
Capital gain as
well as equity.
Exit approach Exit approach for
these type of
ventures is shut
down.
Sell of business,
transfer and shut
down are some
approaches of exit.
Selling of
business, merger
and transfer are
exit approaches.
Selling, merger
and go public are
some approaches
of exit.
LO 2
P3 Assessment of relevant data of how small and micro businesses impact on the economy
Micro business: Micro businesses include all those businesses who have lower than 10
employees & can generate £2 million turnover.
Small size business: Small size businesses include all those businesses who have fewer than 50
employees & generate turnover under or up to £10 million.
It is stated that approximate 60% of employment of all private sector are from medium as well as
social size businesses (Blackburn, 2016). They play a major role in developing and generating
economy of UK. The huge % and number of companies are small and medium size.

Approximately there are 99.3% small businesses and in the number it is accounted 5.7 million
and 97,000 in the UK.
In the context of annual turnover it is estimated that small and medium size businesses give
approximate £2.0 trillion of all private sectors. Between the year of 2017 & 2018 small and
medium size businesses increased up to 23 thousand whereas, non-employing businesses have
gotten felled by 50 thousand (Bocken, 2015).
Small and medium sized business may be sole proprietors and partnership and in the context of
sole proprietorship there are about 3.4 million sole proprietorship in UK in which 59%
businesses are small and medium size private sector.
Figure 1Share of enterprises
Sources: (Contribution of SME’s in UK, 2019)
Medium size businesses of UK provide 12% employment to the people of UK and that leads and
generate 15% turnover. Small and medium size business continuously helps UK economy by
bringing innovation and creativity. Examples of innovation are AirBnB, Uber etc. Most of the
UK industry are retail, manufacturer and the main reason of their gradually growth is increment

of SME business. Small businesses stated and account for 99.5% of total businesses in every
sector. There are many type of business which grow into market and making most of the profits
especially that including beauty or wellness which is type of personal services. The UK
government is also supporting these businesses and investing £725m in research and
development.
Differences between small, medium and large size business on different basis
Basis of difference Small Medium Large
Enterprises basis 99.30% 0.60% 0.10%
Employment basis 48.00% 12.00% 40.00%
Turnover basis 33.00% 15.00% 53.00%
P4 Small businesses & start-ups importance in growth of social economy
Small and start-ups are known as innovation and creativity and there are various small
and start-ups companies in UK which help in developing economy. There are several importance
of both types of businesses which are being described as below:
Creation of employment: Start-ups and SME of UK contribute in providing employment
opportunities to people (Kozubíková and et.al., 2015). They try to bring innovation & creativity
so decrease employment rate and improve economy. There is no requirement of heavy
investment in small businesses, so it can be run by anyone.
Innovation: The preliminary aim of both types of business is to bring innovation in the company
and attract wider range of customers. So it can be said that both start-ups and small size
businesses
Meeting social purpose: Small business and start-ups businesses run with the main purpose of
improving living standard and lifestyle of people and society in which they operate. They give
employment opportunities, bring innovation, creativity and also increase technological use. So it
can be said that activities of both businesses help people and meet social purpose.
Developing industries: Other main importance is to develop industries. In the context of large
industries of UK, motor repair, manufacturing and Retail are some businesses which are being
developed by small businesses as many small businesses are related to motor manufacturing
sector. On the other hand Start-ups companies of UK are also helps other larger industries in
improving technology. They also help them in building effective research & development by

bringing innovation and creativity. They keep the local economy healthy (van der Zwan and
et.al., 2016).
Engagement of people: It is stated that small businesses have lower overhead costs as they
operate and run in small premises. They are known for providing employment opportunities.
They do not discriminate among people on the basis of gender, age and give equal opportunities
to people. They also try to make a system where all level of people can work together with more
effectively, so it can be said that small and start-ups businesses help in engaging people.
TASK 2
LO 3
P5 Some Characteristic & skills entrepreneur which differ them from other business man
Covered in PPT....
P6 Personality of entrepreneur impacting motivation and mind-set
Covered in PPT....
LO 4
P7 Relevant examples how background that support and influence entrepreneurship
Covered in PPT....
CONCLUSION
It can be determined that several types of business ventures have differences and
similarities. It has shown significance of start-ups and SME that helped in developing and
generating local economy. With the indulgent of innovative ideas and creating employment
opportunities which will help into brining positive changes into society with improving living
standard of people.

REFERENCES
Books and Journals