Small Business and Entrepreneurship in Social Economy

3 P2 Difference and similarities of entrepreneurial ventures within public and private sector 5 P3 Statistics and data microimprovement and small business impact on economy7 P4 The importance of small business & start-ups to the growth of all the social economy9 TASK 211 P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other business managers 13 P6 Entrepreneurial personality reflect entrepreneurial motivationand mindset 16 P7 Background and experience can hinder or foster entrepreneurship 17 REFERENCES 21 INTRODUCTION

ENTREPRENEURSHIP
AND SMALL
BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 different types of entrepreneur ventures and related to typologies...................................3
P2 Difference and similarities of entrepreneurial ventures within public and private sector 5
P3 Statistics and data micro and small business impact on economy....................................7
P4 The importance of small business & start-ups to the growth of all the social economy...9
TASK 2..........................................................................................................................................11
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers.......................................................................................................13
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset..................16
P7 Background and experience can hinder or foster entrepreneurship................................17
REFERENCES..............................................................................................................................21

INTRODUCTION
Entrepreneurship is basically a procedure for running, launching and designing the
activities of business. It is set of business activities to take any of financial risk in the hope of
achieving profits and revenues.
Small business management comprise of activity implied by entrepreneurs for running
the business activities and plan. The report will examine scope, development, growth of
entrepreneurial ventures in Southwark which is a is a district of Central London and is the north-
west of the London Borough of Southwark. Further, it will examine the impact of the small
business on the economy and importance of the small business for the growth of the social
economy. Moreover, it will describe the main key elements of entrepreneurial mindset and
different environments that foster and hinder the entrepreneurship (Amato and et.al., 2017).
TASK 1
P1 different types of entrepreneur ventures and related to typologies.
Entrepreneurial ventures
Entrepreneur venture is basically as the organization taking place for innovation &
opportunity at its heart for producing the social and economic values. It targets for the high
returns within the equal high level of the uncertainty. Intrapreneur is a person who is employed
in the entrepreneurial venture by the entrepreneur in order to promote its business. The major
difference between entrepreneur and intrapreneur is that an entrepreneur is a person who starts
the business with its own idea. On the other hand, an intrapreneur is a person who works for
entrepreneur in exchange for remuneration or money. The entrepreneurial activities are like
innovation and creativity, developing business idea and business plan and many other activities.
Types of entrepreneurial Venture
Survival Firms: can be defined as that state where the business faces difficult time in
terms of its survival and being in operation as solvent business. In order to succeed the business
cuts the cost, lay off employees, tighten the profits, saves cash and try to enter the growth mode.
Here it reinvest profits, expand operations and brainstorms the growth(Amato and et.al., 2016).
In the London borough market one such firm is the Neal Yard dairy which is a leading cheese
selling organisation. In the star it faced trouble for the survival and had rocky start. But in the
present time it sells 500 tones of chess per year leading to huge turnover.
Aggressive growth firms:
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Aggressive growth is a kind of firms that seeks to return the highest profits in short
terms. These firms grab potential market share in the industry in short time. Such firms normally
deliver high returns in small span of times and gains competitive advantages. In this regard the
Borough Kitchen Cook Shop, is one example which shows a good growth in shorter time. The
company have recovered hihest sells quantity of the hand carved iberico and Serrano hams in the
year 2018. This means by gaining competitive advantage the firm have show aggressive growth.
Public sector entrepreneurship:
A public sector enterprise is ,act within government and, at their heart, are a blend of two
different roles that of a public servant, and that of an entrepreneur. It Encompasses the whole set
of measures adopted and developed by local, regional, and national authorities to operate the
bushiness (Burns and Dewhurst, 2016). The menier Chocolate factory is one such organisation in
London Borough market which is a 1280 seat heater with a bar, restaurant and a rehearsal room.
Typology of Entrepreneurship:
Small Business Entrepreneurship:
Small business enterprises are those which have small level operation and restricted to
the local area with not so high turnover and profits. This can be linked to the Neal Yard dairy
business which is operating in the Borough London market. This is because the business was
started by two owners with small capital and now it has become a renowned name in the
Borough market of London.
Scalable Start-up Entrepreneurship:
A scalable business is an innovative idea and searches for an expendable and repeatable
business model that will turn it into a high growth, profitable company. It does that by entering a
large market and taking share away from incumbents or by creating a new market and growing it
rapidly (Burns, 2016). The organisation Borough Kitchen Cook Shop is one such example
which was started in 2013 and with aggressive approach it have made a differentiating position
in this market.
Large Company Entrepreneurship:
The concept of large entrepreneurship is mostly believed to be mentioned to be in
development of new ideas and opportunities within large or established businesses, directly
leading to the improvement of organizational profitability and an enhancement of competitive
position. This can be linked to the Menier Chocolate factory operating in borough market of
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London, which was established in 18th century and still operating with its brand name and goo
business values.
P2 Difference and similarities of entrepreneurial ventures within public and private sector
SIMILARITIES
All Entrepreneur venture Neal's Yard Dairy, Borough Kitchen Cook Shop and Menier
Chocolate Factory used to innovate on the regular basis so that the entrepreneur used to be
competitive in the market, as new start up always offer the tough competition to the above
mention company in the market. All the entrepreneur venture is set up on the innovative and
creative idea which has not been used by any other in the past and try to grow the business on the
basis of that creative idea. All the Entrepreneur venture irrespective of the industry in which the
venture is set up has to dealt with the large organization who used to provide the tough
competition to the newly setup organization on the basis of the goodwill which is earned by the
large organization (Amato and et.al., 2017). Whether the organization used to work in Survival,
public or the private venture all the entrepreneur venture has to carry out the business activity to
survive in the industry as it gets difficult for the organization to survive in the competitive
industry if the organization is not able to achieve the organizational goal. All the venture used to
have the common motive building the good and strong brand name in the market by offering the
good quality of the product to the consumer to consume (Demirel and et.al., 2019).
DIFFERENCES
Basis Survival Managed Growth Aggressive Growth
Growth Rate Their growth rate is slower
and the main focus lies on
keep the business running
rather than shutting down
like Neal's Yard dairy.
These firms have properly
distributed the growth that
they have planned over
the years and they
perform their activities
accordingly by avoiding
risky decisions.
Under this category,
growth is extremely
high as the decisions
taken are extremely
risky like Borough
Kitchen Cook Shop
and the returns can be
either extremely high
or it can turn into a
loss-making situation
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as well.
Organizational
structure
In survival firms i.e. Neal's
Yard Dairy, the structure is
usually sole proprietorship
where the owner himself
manages all the operations
(Wennberg, Delmar and
McKelvie, 2016).
Under Managed Growth
Firms, the organization
can be in public or private
limited and in some cases,
it is sole proprietorship as
well but in the case of
Menier Chocolate
Factory, it is a public
limited Company.
In aggressive growth
firms, the structure is
usually formulated in
public limited or
private limited
manner similar to
Borough Kitchen
Cook Shop who is a
Private limited
Company.
Managerial
Style
Survival Firms like Neal's
Yard Dairy usually involve
autocratic approach where
all the decisions are made
by the owner himself and
he is responsible for all the
consequences as well.
In Managed Growth
Firms adopt Democratic
Approach where they
involve their employees
in the decision-making
process and consider their
feedbacks and
suggestions before taking
any decisions like Menier
Chocolate Factory (Cole
and Sokolyk, 2018).
Aggressive Growth
Firms adopt and
implement Autocratic
leadership style as
these organizations
operate at a wide
scale and it is not
possible to take
decisions after
consulting all the
employees. In
Borough kitchen
Cook Shop also, to
effectively manage all
the staffs and cooks
successfully, the
company has adopted
autocratic
management style to
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operate successfully.
P3 Statistics and data micro and small business impact on economy
Micro business generally operates on very little scale of UK. The actual mean of micro
enterprises is where the small size business is employing & also the turnover is very much less
than the particular amount and also having and balance sheet for maintaining all the things in
proper manner. In this business there are fewer than the 10 employees where it is operated on
small scale and it has 33% employment level, turnover is 21% in the last years. This type of
enterprises basically relates to privately owned & operated by the sole proprietorship,
partnerships and corporations as well. One of the actual reasons for turning towards the 5-9 jobs
and starting by its personnel ventures.
Small business generally contributed in the local economies to bring growth &
development, innovation for the community where business has been established. It helps in
stimulating the growth of economic for providing the opportunities of employment for the people
who are not employable for the larger corporations. Small business is very important for the
economy of the country where it provided both goods & services & jobs as well.
The range of the employees working in the small business is 0-260. It also consists the
micro, small and medium-sized business. It makes revenues and turnover 1994 billion pound per
year that is mainly 52% of the total revenues. The performance of small business directly
contributing in the GDP of the UK economy where it proved that it is a main engine for the
development of economy and also providing facilities with the equal distribution in the income
and revenues of UK. The total employment provided by SME is around 15.7 million which is
around 60 % of all the private sector employment in whole UK. The SME's also contributes to
the growth of the whole economy by way of adding innovation in the products and services
which contributes to economic development. The total combination of the turnover of SME was
around £2.0 trillion which is almost 52 % of the whole private sector of UK.
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Figure 1: UK exit from the EU as a major obstacle to the success of the business by employee
size
(Source: Brexit’s impact on small businesses: the experts may be spot on after all, 2018)
Small business enterprises in UK has contributing the major part in the development of
economy. Small business enterprises have been contributing 60-80% jobs opportunity to the
people of UK which is quite amazing for development of UK. On the basis of statistics, it has
been found that there were 5.6 million small businesses at the start of 2018 in UK. However, it
has been analysed that it has been given positive impact of growing economic rate of UK. Small
business enterprises accounted 99.3% of all private sectors businesses at the start of 2018 and
99.9% were small or medium sized. It analyses the worth or value of small enterprises in UK. In
contrary, small enterprises business has facing challenges and risk of uncertainty due to the high
competition in the market. Due to high rivalry firms and big brands it has been given the
negative impact on new start-ups. Along with that, as according to UK statistics the ratio of
number of companies has increased as according to the past data which is increased by 2%. on
the other side, sole proprietorship and ordinary partnership fell by 49000 and 9000 respectively.
In other words, it certainly identified that the impact of micro and small businesses can be given
positive and negative impact both on the economy.
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Figure 2: UK exit from the EU as a major obstacle to the success of the business by location
(Source: Brexit’s impact on small businesses: the experts may be spot on after all, 2018)
P4 The importance of small business & start-ups to the growth of all the social economy
Social economy generally formed by the rich diversity of the enterprises & companies
such as cooperatives, associations, mutual and also it shares common values for the social
objectives of the capital and primacy of all the individuals. Start-ups and social economy help for
raising the economic activities where the level of nation is important for the expansion of the
economy for accommodating for the new job seekers which came into the labour force on the
yearly basis. It also helps to improve the technology advantages for the growth & development in
future of economy. There are some importance of start-ups and small business for the growth of
social economy such as;
Economic growth: -Small business brings growth in the social economy for dealing with
innovation of any field. It is usually had direct contacts with the customers & with general
population. From having a fewer level of hierarchy, it where the small business is trying to open
& more ideas in very shorter time frame.
Creating job: - it is generally a process where lots of jobs has created for increasing the
economy. Job creation is generally referring to the government policies where it directly reduces
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the unemployment. It is process for measuring the job and create it for reducing unemployment.
From so many changes comes in present time because small companies hire candidates so much
frequently and small business works for expanding the business.
Innovation: - there are so many start-ups where reinvent of the existing products for
making changes in the market in a way for consuming, behave and purchasing. From doing
innovation it increases the sales and revenues of the company and make a market share. From
proper available of all the financial resources where the products hit the market. Innovation is
much important for the small business where the ideas of application improve the way of doing
work whereas innovation helps the small business in growing and improves the efficiency,
productivity and remain competitive in market & easily respond for the changes.
Meeting the social purpose: - Social purpose is basically a scheme where the statutory
construction for declaring that the statute which has constructed in the way the normal and
societal good and values. The social responsibility of the small business and start-ups where it is
a duty of individual to act with the best interest of their society & environment as the whole. It
directly applies on the business. It involves all the social aspects but also the economic and
environment impacts.
Corporate social responsibility: - Corporate social responsibility is one of the
importance for small business and start-ups. It allows the business for small & large enact of the
positive changes for the companies. The main objective of CSR for the small business where it
helps in building trust between customers, raising awareness between customers and also
encourage them, for doing the social changes.
Impact of small medium business organization is major on the social economy of
country. Because most of revenue generated from the private sector is contribution of small and
medium organization. The contribution of SME in employment, innovation, diversity and local
area improvement is most important for London Borough of Southwark. According to an
independent agency there are total number of 12500 registered businesses in local area. Most
important thing about small business organization is the innovation and creativity in business
ideas. This innovation makes the Small business companies different from other organizations.
Most of companies are based on unique idea and their rate of success is depended on uniqueness
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of idea. Innovative ideas are important for the growth and this ability of introducing innovation
made this small business successful and competitive in London Borough of Southwark.
The best thing about SME in London Borough of Southwark is it has provided employment
to many people who were form disadvantaged groups. This good for the economy of country and
particular local area. Small business organization allow the high diversity for different
perspective and this is important for innovation and efficiency of small and medium
organizations. For small businesses rate of diversity is too high because uniqueness is key to
success for SME's. Role of Small and medium organization is important for society and
community because engagement of people increased through this and engagement of people help
the economy to improve life standard of locals. Engagement of local community provide the
opportunity to perform local development. Due to this small business’s development became
possible for local area because it has provided better opportunity to local people to increase per
capital income. This is how the small business organization are important for the development of
economy and locality.
TASK 2
11

Notes
This presentation study about the characteristics, traits and skills for successful entrepreneur that
different business managers and also different entrepreneurs hinder and foster the
entrepreneurship.
12

P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers
Notes
Skills can be defined as the specific qualities which an entrepreneur posse which are distinct
from that of manager and others.
13

Notes
 The motivational driver for Duncan Bannatyne is his optimistic approach to life that is he
was very positive in its thinking.
 Duncan Bannatyne is different from manager because he has the quality of optimism and
full knowledge which is not necessary to be possessed by manager.
Notes
 The motivational driver for Branson is his six-word motto which is “Screw it. Let's just
do it.”
 Branson is different from manager because manager only works for money rather
Branson works for satisfying himself with the work.
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Notes
 The motivational driver for Peter Jones is that he has high curiosity level which motivates
him to acquire more knowledge than required.
 Peter Jones is different from manager because manager aims at just accomplishing the
work rather Jones focuses on accomplishing work effectively.
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P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
Notes
 Conscientiousness- It refers to as the trait which can be described as ability to control the
impulsiveness of the person and work of socially acceptable ways. The characteristic of
Richard Branson for conscientiousness is persistence and ambition. On the other hand,
the traits of Duncan are self- discipline, control and reliability.
16

Notes
 Neuroticism- it refers to as emotional stability and temper of the person. The traits of
Branson is moodiness and jealousy but Peter Jones is more anxious and nervous.
P7 Background and experience can hinder or foster entrepreneurship
Notes
17

Branson start their business as entrepreneur by selling Christmas tree and Budgerigars but did
not get success in their first business. Further in 1966, Branson launch a magazine named as
Student which is their first successful business. It was the overnight success business but
Branson has to face a huge problem in 1971 in which their parents has to re-mortgage the house
to help the Branson and pay the debt. Richard was accused for selling the export record in his
record shop. The case did file in any court because Richard was agreed to pay any amount of
penalty or unpaid 33% VAT and £70000. Richard Branson's family always support his idea
which help them expand their business and innovate things to get success.
Notes
In 1988 Peter founded telecom business and get success. It was comprised with four parts which
help to generate higher and higher profit. The passion and dream of becoming multi millionaire
in upcoming time always encourage taking the risk in life and start the business with new passion
and skills.
18

Notes
Duncan Bannatyne get growth in his business after move to the Stockton-on-Tees by purchasing
an ice cream Van for £450. They expanded their business in health club and also awarded for
charity work.
CONCLUSION
19

Entrepreneurship is generally a procedure for running, launching and designing the
activities of business. It is set of business activities to take any of financial risk in the hope of
achieving profits and revenues. Entrepreneurship & small management of business is a sequence
which offers the unique learning for giving experience to the students for aspiring the and
starting a business and obtain the employment to oriented for growth of small business. It
concludes that the range of entrepreneur ventures types and differences and similarities between
ventures of entrepreneurial. Further, it concludes that the impact of micro and small business on
the economy and also the importance of small business & start-ups for the growth of social
economy. Moreover, it concludes that the key elements and aspects of the entrepreneurial
mindset and also relevant examples of different environments that hinder and foster the
entrepreneurship.
20

REFERENCES
Books and journals
Amato, C. and et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management. 55. pp.27-42.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Cole, R.A. and Sokolyk, T., 2018. Debt financing, survival, and growth of start-up
firms. Journal of Corporate Finance. 50. pp.609-625.
Wennberg, K., Delmar, F. and McKelvie, A., 2016. Variable risk preferences in new firm
growth and survival. Journal of Business Venturing. 31(4). pp.408-427.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Demirel, P. and et.al., 2019. Born to be green: new insights into the economics and management
of green entrepreneurship. Small Business Economics. 52(4). pp.759-771.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International Small Business Journal. 34(3). pp.276-302.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Hechavarria, D. and et.al., 2019. High‐Growth Women’s Entrepreneurship: Fueling Social and
Economic Development. Journal of Small Business Management. 57(1). pp.5-13.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Ramadani, V. and et.al., 2019. Beekeeping as a family artisan entrepreneurship
business. International Journal of Entrepreneurial Behavior & Research. 25(4). pp.717-
730.
Runyan, R.C. and Covin, J.G., 2019. Small Business Orientation: A Construct
Proposal. Entrepreneurship Theory and Practice. 43(3). pp.529-552.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
Online
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Brexit’s impact on small businesses: the experts may be spot on after all. 2018. [Online].
Available through: < https://theconversation.com/brexits-impact-on-small-businesses-the-
experts-may-be-spot-on-after-all-90561>.
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