Entrepreneurship and Small Business Management

This report provides a comprehensive analysis of entrepreneurial ventures and their impact on the UK economy. It explores different types of ventures, examines the similarities and differences between them, and discusses the influence of micro and small businesses on the economy. The report also analyzes the characteristics, traits, and skills of successful entrepreneurs, highlighting how background and experience can hinder or foster entrepreneurship. It concludes by emphasizing the crucial role of entrepreneurs in driving social and economic growth, particularly in the post-Brexit era.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................1
2. Similarities and differences between entrepreneurial ventures..........................................3
3. How micro and small businesses impact on economy.......................................................5
4. How important small businesses and business start –ups will contribute to the growth of the
social economy after ‘Brexit’.................................................................................................7
5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers...................................................................8
6. How background and experience can hinder or foster entrepreneurship.........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
In UK, small and medium sized organisations basically consist of approximate 95%
businesses in numerous distinct countries. These established small sized businesses are called as
entrepreneurial venture (Blackburn, Hart and Wainwright, 2013). In other term, entrepreneurship
can be refer to the procedure of planning, designing, launching and operating a new idea i.e.
often refer to small business. The individual who initiate or establish the business ideas are called
entrepreneur. These ventures play significant role in the country’s economy as these provide
employment opportunities and enhance overall GDP etc. This report will analyse numerous
aspects of entrepreneurial ventures and distinct typologies associated with these. This will also
demonstrate influence of micro, small and medium sized business in UK on the economy of
nation as well as society. The decision making of an entrepreneur are highly influenced by some
determinants such as family, experience and background of individual which will also be
assessed in the report for a better understanding over this.
MAIN BODY
1. Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
Entrepreneurship is the procedure of designing, running and launching the new business
that is started at the initial level. An individual who create and develop those businesses are
known as entrepreneurs. Entrepreneurial venture can be defined as the combination of failure,
risk, success and ambiguity; embracing and learning from this (Bridge and O'Neill, 2012). There
are numerous differences between a small business organisation and entrepreneurial venture that
develop a key distinction between both of these terms. SMEs often are related with products and
services that are already established whereas an entrepreneur is the person who sets their
undertakings of business along with financial risks in order to make positive outcome of it. These
ventures influence the economies and communities in significant way that creates cascading
influence on the commercial sector and creation of employment opportunities. Initially, this is
essential to understand the basic types of entrepreneurial venture before assessing the impact of
it i.e. briefly discussed below:
Small-business Entrepreneurship: As per the current market scenario, numerous sort of
small size ventures are being established within UK. Such companies approx. covers more than 6
million enterprises that are introduced in order to earn survival and small money (Carsrud and
Brännback, 2011). This consists of ventures including internet cafe owner, barber, travel agents,
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electrician, grocery stores, carpenter etc. These entrepreneurs put their financial assets at stake to
maximise their benefits.
Scalable Entrepreneurship: These are one of those ventures which are developed for
investing in the innovative ideas of business. They create a specific goals and vision to make
change in the existing structure or idea. For performing operation, this sort of enterprise manages
funds from investors which are willing to invest in the business ideas.
Social Entrepreneurship: This sort of business enterprise seeks the social benefits and
performs operation and delivers service to benefits their communities despite of maximising
benefits. They create only those services and products which are helpful for people who need the
improvement and are in miserable condition.
Large Scale Entrepreneurship: This sort of business are arranged or coordinated to gain
benefits in competitive marketplace. Such kind of enterprises focus over benefits enhancement
and creating broad market space.
Whole typologies of entrepreneurial venture are associated with the entrepreneur who
determines the nature, purpose and mission of performing idea in market. Hence, here are
discussed some of typologies that demonstrated different ventures and are associated with them:
Lifestyle Venture: These businesses render immediate business outcomes and profits. In
this, entrepreneur often operates activities by their own (Chittithaworn and et. al., 2011).
Survival Venture: These ventures are structured with the aim of managing their living.
Basically, these refer to the small scale enterprise including grocery stores, cafe, barber store etc.
Managed Growth: These are often created for the monetary benefits. These people invest
in those ventures which ensure them benefits and free from risk.
Social Entrepreneur: Under this, individual perform the business practices for social
benefits. Beside of aiming of maximisation of benefits, these focus on social welfare and services
community to its betterment.
Serial Entrepreneur: These people are those who continuously established business and
trade in market. In exchange of monetary assets, they trade their creative ideas to individual who
invest in the same.
Female entrepreneur: These entrepreneurs work in context of empowerment of female
in the competitive world and create change with their creative and innovative idea.
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Male Entrepreneur: These entrepreneurs work to attain certain target allotted to them.
These use better decision making and risk taking nature to prosper (Chrisman and et. al., 2012).
.
2. Similarities and differences between entrepreneurial ventures
Entrepreneurship can refer to the capacity and willingness to develop, coordinate and
manage a business venture with probability of benefits and risk equally. These individuals are
often innovative and more risk-taking which is core part of the economy of country as these
benefits competitive global marketplace. The above mentioned types are basically different from
each other but consist of some similarities as well. Here are mentioned few of those:
SIMILARITIES Lifestyle Ventures Social Entrepreneurs
 These entrepreneurial
ventures do not focus on
benefits and adventures.
 These organisations start their
business from establishing
small ventures (Wheelen and
Hunger, 2011).
 These venture are initiated in
order to facilitate the society
and community to make it
better place.
 Such enterprise often
manufactures services and
products to provide benefits t
needed people to improve
their condition in society.
DIFFERENCES Lifestyle Ventures Social Entrepreneurs
 These organisations seek for
enlargement of business at the
same time focus on quality
and lifestyle.
 Such enterprises are more
passionate and these do not
follow any business plan or
strategy.
 Such enterprise does not
establish business at certain
 These ventures does not seek
for benefits but work for the
betterment and will of other
people who needed
assistance.
 These people formulate a
proper plan, budget and
strategy to meet outcome
within minimum resources.
 These organisations basically
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place and are mobile which
operate their work where they
desire.
 The key purpose of these
enterprises is emphasising on
the attribute and lifestyle
beside of gaining benefits.
put their foundation at certain
place to reduce the social
issues from the area business
(Dennis Jr, 2011).
 These aims over maximising
their benefits so they can
manage more funds to
perform their standard target.
SIMILARITIES Female Entrepreneurs Male Entrepreneurs
 Female entrepreneur are
more concertinaed and
more dedicated
relatively while working
(Welter, 20111).
 These are creative and
more innovative in
nature while operating
their operations and
practices at work.
 Male entrepreneur are
also concertinaed toward
their work when it
comes to office
 Male work with more
passion, creativity and
dedication at work
which makes them good
entrepreneur..
DIFFERENCES Female Entrepreneurs Male Entrepreneurs
 This is stated that
female entrepreneur are
more sensible and
emotional while taking
decisions
 These entrepreneurs are
more focus on quality
service and social
contribution.
 They are quick and
convenient while
undertaking even tough
decision.
 Core focus of these
entrepreneurs is
economical
development and
decrease in the overall
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 These are conservative
and tied to ethics and
ritual comparatively.
 These entrepreneurs
mainly aim over
creating better relations
with workers and
consumer beside of
achieving core target.
cost for benefit of
organisation and oneself
(Drucker, 2014).
 These are more risk-
taking when it comes to
undertaking the core
business judgements.
 These are basically task-
oriented beside of
quality oriented like
female entrepreneur.
3. How micro and small businesses impact on economy
Business Categorises: In marketplace, there are different sort of functions and practices
which are performed for attaining targets in UK marketplace (Storey, 2016). Hence, these
companies, in order to easy identification are classified into different types on the basis of size in
which few are mentioned as below: Micro Business: It can be define as companies that are owned by single owner along with 5
worker employed under it. Cause of the capability of mobility and flexibility, numerous
individual of every age can function this sort of business. In United Kingdom, there are
more than 5.15 million micro businesses which were established after 2015 i.e. increasing
constantly. These influence the basic structure of market and help in creating opportunity to
the economy. Small Organisation: These sorts of enterprise are independently established and operated
for the benefits of individual or earn living. In UK, 95% organisations are small sized which
consist of 5-500 worker depending on the manufactured industry and products. UK after
recession has been benefited largely by SMEs as this aid in providing job opportunity to
society thaat improves economical condition as well (Fassin, Van Rossem and Buelens,
2011).
 Medium-sized: Such sort of companies is often well introduced and has a better track which
facilitate lender and investor create their decision related to finance. It includes 100-999
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employees that majorly provide employment opportunities and contribute crucial role in the
GDP of nation.
After the recession and Brexit, UK has largely been influenced by small size business
enterprise as this has supported the economy in more positive manner. Struggling from crisis
condition, the nation has covered their critical condition of economy through supporting small
enterprises their economical development over start-ups and small businesses which influence on
the distinct part of United Kingdom which are mentioned as below:
Local Impact: Small enterprises impacted strongly on the nation’s local enterprises and
business as these are rendering core job opportunities to the UK people after Brexit. It has
majorly assisted in improvement of standard of living of country. This has stimulated their trends
and emphasise purchasing power which was affected due to Brexit.
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Illustrati
on 1: Impact of UK economy, 2018
(Source: Impact of UK economy, 2018)

Figure 1: UK employment
Source 1: UK employment, 2018
The above graph represents that fall in the employment opportunities in United Kingdom
which has drastically been improved after the emergence of small and medium sized business.
This is expected to increase by 1.75% in 2019-2020 as per the professional (George and Bock,
2011). Hence, this can be seen coherently that these activities in economy not only enhance
work opportunities but raised GDP indirectly.
Regional Impact: Small enterprises have great impact over commodities manufacturing
along with cost shaping of their products and services. These often influence the choice of
consumer, trends in market and structure of service deliveries.
National and International Impact: It affects the country significantly as SMEs and
medium sized companies has created economy development by creating drastic evolution in the
employment opportunities at local level. Through this, cash-inflow among market increased that
has supported the market condition and shares sensex of organisation. These activities
internationally influence the GDP of nation and created a unique recognition of enterprise at
international market as well.
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Therefore, this can affirm from numerous consequence analysis that United Kingdom’s
growth overall has been supported by the emergence of small, medium and micro sized business.
For promoting these, UK govt. even have provided special subsidies to people to create such
venture or business as these shapes the growth of economy in indispensable way.
4. How important small businesses and business start –ups will contribute to the growth of the
social economy after ‘Brexit’
Brexit: It is UK withdrawal prospective from the European Nation. This is considered as
one of major agreement among economists and brand consensus in existing economic research in
which Brexit is more likely to reduce per income capita of UK in medium and long term. The
process begins from 29.03.17. By 23.06.16, in referendum, state of UK published article which
was article 50: treaty on European Union. It was an arguable condition and carried out distinct
judgments which were taking through their prime minister. Thus, the commercial industry of UK
was majorly influenced through this contract.
Through the assistance of micro, small and medium sized business organisation, UK has
supported its falling economy at vast level and managed its GDP within determined period of
time. These enterprises not only influenced the economy of United Kingdom but also affected
the social structure and procedure at wider level after Brexit. Here are discussed some of that
major impact discussed as below:
Economic and Social Evolution: Small business organisation can be described as the
economical strength of UK. It can be observed that after Brexit, when UK’s purchasing power of
people fallen (Gorgievski, Ascalon and Stephan, 2011). The nation has established more than 5
million organisation which helped in increasing their per income capita and purchasing power of
individual. These are also liable for developing approx. 15.2 million opportunities of
employment in United Kingdom affecting the overall segment positively.
Social Security Improvement: It is another significant element which aid in stability in
income promotion in United Kingdom’s economy. It has helped nation by delivering proper
inflow of capital and preventing crisis. This has thus influenced the economy and increased the
social economical security
Revenues and Taxes Influence: Start-ups and small businesses impact on the revenues
and taxes in UK cause of economical employment as these help in generating major income
source of the country. If there will be balanced and aggregate income in company, people of UK
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will more be able to pay taxes and revenues of overall economy will be increased. Hence, after
Brexit more than 75% people are paying their taxes which have enhanced the economical
condition of UK again in international market.
Influence on Poverty and Other Determinants: Emerging poverty line after Brexit has
been demised by providing proper employment in country that becomes only possible due to new
start-ups and small business organisation (Goss, 2015). This helped in demonstrating the issues
among society and aid in managing economical condition of society through delivering
alternative option of income.
Hence, this can comprehend that start-ups and small businesses not only have influenced
the economy of UK in positive way but also affected nation’s social condition through
supporting individuals of society.
5. Determine the characteristics, traits and skills of two successful entrepreneurs, which
differentiate them from other business managers
An entrepreneur can be defined as the concept that excels to confinement of business
management. The individual consist of numerous unique skills and characteristics that make
them different than a common person and general manager. Not whole entrepreneur are
developed from common blue-print. There is numerous business men who has performed their
operation in effective manner but entrepreneur that have performed the action in significant
manner will be known in entire world. In the chose report, Richard Branson and Mark Zukerberg
have taken as example of two successful entrepreneurs whose traits and skills are mentioned as
below:
Richard Branson: He is an English investor, business magnet, philanthropist and author who are
founder of Virgin Group. Here are mentioned some traits and skills of him:
Skills: Leadership Skills: Richard Branson was popular for his leadership skills and his attitude
of Think Differently (Zott, Amit and Massa, 2011). This entrepreneur stimulated each
and every individual working in the organisation to perform the operations in more
significant manner. The leadership skill use by company manager in maintaining and
leading their employees towards right direction. Positive Culture: Qualification and a positive culture which an entrepreneur provides to
one’s workplace make them different from a manager. An organisation manager work is
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to develop and create positive environment where all workers are adjust easily and
perform good work for reach their company goals. Richard Branson was popular for their
positive personality and decision making skills which he have opted in negative
consequences.
Characteristics: Innovative: A company manager have innovate in nature which help firm in developing
new and unique type of products which attract large number of customers. Richard
Branson always believed in creative ideas and innovative skills in regard to carry out
better outcome. Such as this, an entrepreneur is more likely innovative who come up with
different and better ideas beside of already existing in marketplace. Visionary: The firm manager is visionary in character so this will assist them in follow
the future goals and targets in better manner with the help of their employees. This is
essential for an entrepreneur to be visionary as they provide vision to the organisation.
Such as Richard Branson who initiated his business with nothing to Virgin group.
Mark Zukerberg: Known as the founder of Facebook, the individuals are changed the
way people communicate by providing more convenient, interactive and sharing platform to
communicate (Jones and Rowley, 2011). Here are mentioned some of his traits and skills:
Characteristics: Team Working: It is analysed that company manager work is to motivate their workers to
perform team working which assist them in getting desired goals in minimum time
period. Mark Zuckerberg operates operations as a team and work for team and
organisation which makes him a good leader and a better entrepreneur. Encouraging: An organisation manager always encourage their employees for reaching
with potential targets and goals. Always encourage their worker to perform best and
innovative relatively which makes him unique.
Skills: Critical Thinking: A firm manager have creative thinking skill which assist them in
implementing new ideas and thoughts for their welfare. Mark has give priorities to one’s
thinking in order to understand the basic vision and best interest of the topic.
 Problem Solving: The company manager have problems solving skill which can be used
by them in resolving major issue which create conflicts among employees. Zuckerberg
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always focused over issues and resolve them whether it is minor or major problem of
enterprise.
Hence, this can affirm from the above notion that this is the traits and skills of an
individual which makes them a good entrepreneur as like Richard Branson and Mark Zukerberg.
How different aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mind-set:
An entrepreneur is distinct from the business manager on the grounds of their roles, traits,
and mindset and motivation level. It is the entrepreneur who come up with better ideas and plan
for the country and makes the market more creative. This is essential for individual to have some
certain personality to be a good entrepreneur as this shapes their decision making, their ideas and
the way of working (Karlan and Valdivia, 2011). These unique qualities and traits make them
different from general manager who work within an organisation. After studying the skills and
traits of Richard Branson and Mark Zukerberg, this is coherent that a manager where avoid risky
decision, entrepreneur always tries something new whether it is hazardous in order to create
something innovative. Through using Big Five Model, one can understand the basic
characteristics of entrepreneur which is mentioned as below: Openness: it is one of the fundamental characteristics that represent the imagination and
direct to a broad interest range. These people are often more adventurous and innovative in
nature. Conscientiousness: The following dimension include standard feature including
thoughtfulness, high control level and target-oriented behaviour. Such individuals are
basically focus on conscientiousness description and are more mindful. Extraversion: It is the traits which consist of excitability, sociability, assertiveness, higher
expressive of emotion and talkativeness at high level. Agreeableness: These determinants consist of personality traits that include attributes like
affection, trusts, altruism, kindness and numerous pro-social behaviour (Neck and Greene,
2011).
 Neuroticism: It can be traited by sadness, moodiness and emotional instability; people who
are full of these characteristics consist of irritability, sadness, anxiety, mood swings and
other negative attributes.
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After studying Mark Zukerberg and Richard Branson’s traits and skills, this is confirmed
that their experiences and abilities make them distinct from the manager of a business
organisation. Where Richard Branson is conscientiousness in nature and open-minded, Mark
Zukerberg is extraversion with agreeableness trait that has influenced their decision making to
the extent due to which this are considered as one of the popular entrepreneurs.
6. How background and experience can hinder or foster entrepreneurship.
Numerous factors affect the decision making and critical thinking of an entrepreneur on
which basis they are different. Here are mentioned some of those factors with example of chosen
entrepreneur:
Background: Background of individual shapes their thoughts and views in more
significant manner. This frames their basic traits and helps them in taking suitable judgments in
context of an organisation (Schaper and et. al., 2014). For example of Mark Zukerberg, he has
done his mother was psychiatrist and father was dentist. Among the educated parents, Zukerberg
become more educated and aware children that identified the opportunities and developed the
application of interaction in his early colleges days which later become most effective social
media site. Hence, this can be claimed that background affects their knowledge and decision
making.
Knowledge and Experience: Life experience and working experience both aid an
entrepreneur in being professional and help them in achieving their business objectives. Without
proper experience, knowledge is just piece of information which never has been executed. But
having proper knowledge is also another essential element. For example of Richard Branson lack
at grades in higher schools but due to his supportive parents and his experience of different
journeys which did in his life, he come up with Virgin Group idea that has more than 400
branches. On the other hand, Mark Zuckerberg is studied in psychology and computer science in
the college years. His parents is support him in further studies and he has various experiences of
life at the time of struggle.
This can be summarise that these elements contour an individual in the shape of
entrepreneur hence these are essential to undertake as well.
CONCLUSION
This can summon from the above discussed report that an entrepreneur play crucial role
in the economy and society by providing and delivering distinct innovation and idea to perform
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work in market. Entrepreneurial activities not only enable a company in refraining more
competitive but also assist in creating more economic improvement and resolve the societal
problems. There are different types of entrepreneurial ventures such as small-scale business,
large, scalable entrepreneurial venture etc. which are related with different typologies. These are
distinct on the grounds of their size and manner of performing a function. There are several sort
of business such as micro, medium or small size organisation which play vital role in the
economy. UK has mainly supported by these businesses after the Brexit and recession which
now have created a better economic and competitive market. Report also states that numerous
factors influence the entrepreneur mind-set and their decision making such as the background of
family, their experience and education. The term entrepreneur is vastly different from the
business manager as the manager is only responsible for managing firm where an entrepreneur
risks their resource and financial assets. Henceforth, these are indispensable part of a country that
serves a lot to the economy and society in various ways.
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