Entrepreneurship and Small Business Management

This report discusses the concept of entrepreneurship, the impact of micro and small businesses on the economy, and the characteristics of a successful entrepreneur. It also provides examples and evaluates the importance of business start-ups and small businesses in the UK. Find study material and solved assignments on entrepreneurship and small business management at Desklib.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Entrepreneurial ventures..............................................................................................................3
Differences and similarities and between different entrepreneurial ventures..............................4
LO2..................................................................................................................................................6
Impact of micro and small businesses on economy.....................................................................6
Importance of business start-ups and small businesses...............................................................8
LO3..................................................................................................................................................9
Characteristics, traits and skills of successful entrepreneur........................................................9
Entrepreneurial personality Reflect motivation and mindset....................................................12
LO4................................................................................................................................................13
Background and experience of individual that hinder and foster entrepreneurship..................13

CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is a feature that exists inside an entrepreneur. Entrepreneur is a person
who mostly finds business opportunities in various market segments, and then open its new
enterprise to generate huge profit in the market. There are different types of entrepreneurial
ventures are existing in the market. In this modern world, it is too important task for an
entrepreneur to offer those product and service in the market that still has not offered by any
other company. There are businesses plays very excellent role in the economic growth of the
United Kingdom. This report discusses concept of entrepreneurship. Some main roles of micro
and small businesses in economic growth of country also has been discussed within this report.
At the ending stage of report, some prime skills and characteristics of a successful entrepreneur
also have been mentioned.
LO1
Entrepreneurial ventures
There are different entrepreneurial ventures exist within the market like; small, large and
social. Features of these entrepreneurial ventures have been discussed below;
Small Profit Ventures: A small profit venture mostly operates daily operations at the regional
and national level (Marabelli and Galliers, 2017). Small profit ventures not able to generate great
employment opportunities in various market segments. There is Prufrock coffee is one of the
best examples of small profit business in the United Kingdom. Most small profit ventures started
by entrepreneurs who has just quality of running a company. Upper management within small
profit ventures believe in employing technology within workplace to generate excellent profit.
High Growth Ventures: High growth ventures runs their operations at the large scale in the
market. Most high growth ventures are capable to run operations internationally. The Marks and
Spencer is an excellent example of large venture, because this company provides its products and
services different countries. High growth ventures mostly started by entrepreneurs who has
enthusiastic to achieve high success. These ventures are capable to generate effective
employment opportunities, because their business operations spread at the large scale within the
market, and that’s why these high growth ventures are required many employees in their daily
operations for achieving final goal.
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Lifestyle Ventures: These ventures mostly have started by those people who has
entrepreneurship lifestyle. This type of entrepreneurs always like to do thing which has based on
business and venture. These ventures also have capabilities to generate huge profit.
Social Ventures: Generate high profit within market is not the prime objective of an
entrepreneur who runs a social venture or organisation, because a social organisation operates for
the social welfare. The children’s society is an excellent example of social organisation. Charity
and donation are main sources of earning to a social venture.
Typology of Entrepreneurship
Entrepreneurial ventures relate with typology of entrepreneurship. Various types of
entrepreneurship have been mentioned below;
 Innovative: High growth entrepreneurship includes entrepreneurs who are able for
generating very high profit in the market (Howarth and Roberts, 2018). Generally, high
growth ventures relate with high growth type of entrepreneurship, because only large
ventures are capable to generate high profit within the market.
 Scalable: Scalable entrepreneurship involves entrepreneurs who come with an exclusive
idea to gain very profit in the market. High growth and small profit and lifestyle, these all
ventures relate with this type of entrepreneurship. Reason is, both ventures are capable to
implement unique ideas within their daily operations.
 Survivor: Survivor entrepreneurship has included entrepreneurs who operates their
operations just work in social welfare, that’s why only social ventures relates with
survivor entrepreneurship. The prime goal of survivor entrepreneurs is to make a happy
and healthy environment within the society.
Differences and similarities and between different entrepreneurial ventures
Some key similarities and differences between various entrepreneurial ventures has been
mentioned below;
SIMILARITIES
Fund
Every entrepreneurial venture is required a specific fund to run its daily operations. A
venture can’t achieve its goals without fund (Akhtar and et.al., 2018). There are all small profit,
high growth and social ventures has used some potential funding sources to achieve appropriate
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fund. There are fund gives opportunity to these ventures to convert their different decision into
actions.
Brand Image
All small profit, high growth and lifestyle ventures are always taking some productive
steps for making their great brand image within the market. Every venture always responsible for
maintaining a positive image in the different market segments, because this thing provides great
results in the market. Top-level management within every venture mostly avoid to run such
operations in the market which can negatively affect its brand image.
DIFFERENCES
Basis High Growth
Venture
Small
ProfitVentures
Lifestyle Ventures
Scope High growth ventures
mostly run their
activities at the large
scale within the
market. A high
growth venture
always has very big
scope as compare to
various other
ventures (Hillary,
2017). Most high
growth ventures
always capable to
operate their
operations
internationally.
Small profit ventures
mostly have less
scope in the
comparison of large
ventures. Most small
profit ventures run
their business
activities at the
regional and national
level. There are only
few small profit
ventures exists in the
UK which operate
their operations
internationally.
A lifestyle venture
mostly operates its
operations at large
scale within the
market. These
ventures expand
services on the basis
of fund inflow.
Shareholders Most businesses or
companies which
comes under high
growth venture
Most small profit
ventures are not
selling their shares
publicly. Reason is,
Lifestyle
organisations and
ventures always have
shareholders
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category always sells
their shares publicly.
There are people
within market can
easily buy shares of
high growth ventures,
because most high
growth ventures are
selling shares
publicly to generate
huge fund.
many times upper
management and
owners of small
profit ventures
provides shares to
only their close
people. For example;
friends and family
members etc.
involvement on the
basis of interest of
owner or upper
management, because
the aim of these
businesses is to do
activities relating to
business.
LO2
Impact of micro and small businesses on economy
There are micro and SMEs are playing an excellent role in the UK’s economic system,
because currently this country can easily grow its economy with the help of these businesses and
ventures (Ribeiro-Soriano, 2017). Nowadays, the UK is one of the richest countries in the world
just because of its different micro and SMEs. Without these all ventures, the country never
maintains its great reputation in all over the world. There are some major data has been
mentioned below which can show the great contribution of micro and SMEs in economic growth
of the United Kingdom.
Currently 5.9 million ventures or businesses operates in the UK, in which there are 5.82
businesses are only small and micro. It means, nowadays number of small ventures or businesses
is very higher in this country (Essential Facts You Should Know about SMEs in the UK, 2019).
These 5.82 million ventures are 99.9% of the total ventures of the country.
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Figure 1: The contribution of micro and SMEs or ventures in the UK’s economic growth.
Source: Essential Facts You Should Know about SMEs in the UK, 2019
These micro and SMEs have offered excellent employment opportunities to 16.9 million
people of the UK. So, 60% employment of the total employment percentage have generated by
only the small ventures or businesses within the country. On the other hand, these businesses
have generated £2.2 trillion turnover in the previous financial year, in which that turnover was
52% of all businesses’ turnover. This contribution of different micro and small ventures very
positively affects economic system of the UK.
Micro and SMEs within the UK has very positively affected its different levels of
economy, like; local, regional, national and international. These businesses or ventures offers
their services at each level of economy. Currently most local people within the United Kingdom
can easily fulfil their various needs with the help of these ventures and businesses, that’s why
local government of this country always need to encourage and motivate its existing youth to
become an entrepreneur, because with the support of this step the local government can easily
increase number of businesses and ventures in this country (Hughes and et.al., 2018). On the
other side, micro and SMEs are giving opportunity to the United Kingdom for making this
country more powerful at the international level.
EVALUATION
It is very important task to the UK’s government to increase number of businesses in
country, because when businesses increase in the country, then these businesses or ventures can
produce great employment opportunities across the United Kingdom. This is the main reason
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that, government of the country should always promote micro, small and medium sized
businesses.
Importance of business start-ups and small businesses
There are different business start-ups and small-businesses plays an effective role in the
United Kingdom’s social economy growth. Development of social economy is too necessary task
to local government of the any country, in this situation government of the UK also responsible
for growing its social economy. However, currently the UK’s government need for putting its
great efforts to develop its social economy, because present small ventures and business start-ups
are playing an effective role to develop the social economy of the United Kingdom. There are
some major factors has been discussed below which can show the importance of small
businesses and business start-ups.
Motivates youth
Small businesses and business start-ups motivate to youth for starting or opening more
new ventures or start-ups in the UK. This factor of business start-ups and small businesses is
very effective in growing social economy of this country. Basically, when youth starts new start-
ups and businesses, then youth will indirectly produce great employment opportunities as well
(Zahra and Wright, 2016). Currently this is the best contribution of various business start-ups and
small businesses within the social development of the United Kingdom.
Generates employment
Business start-ups and small businesses has offered great employment opportunities to
many local people of the UK. Nowadays many of people in this country are fully depending on
these small businesses and new start-ups to get an appropriate. Generally, when any country has
less unemployment, in this situation that country will be easily grown its social economy.
Currently the UK develops its social economy with the help of its present business start-ups and
small businesses. In this modern world, unemployment is very big issue within different
countries, in which these all small businesses and business start-ups are highly contributing in
decreasing unemployment level within the UK.
Promotes innovation
Nowadays many small businesses and business start-ups are innovating different products
and services within the United Kingdom. In this situation, this country is capable to gain great
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foreign exchange by innovation factor of business start-ups and small businesses (Idris and
Saridakis, 2018). In this dynamic world, innovation is too necessary for a company or business,
because when businesses and starts-ups within a country develops various innovative products
and services, then that particular country will be able to earn great foreign exchange through
selling those innovative products and services internationally.
EVALUATION
Currently many of people within the UK fully depends on existing business start-ups and
small businesses to get employment. Without these businesses or ventures, the UK can’t improve
or develop its social economic system (Davis and Walsh, 2016). Currently the UK is one of the
richest countries in all over the world just because of its all Business start-ups and small
businesses. These businesses are too effectively contributing in the GDP of the United Kingdom
as well.
LO3
Characteristics, traits and skills of successful entrepreneur
Entrepreneurs have capabilities and skill to incorporate various risks to run and operate
business for earning maximum amount of profit margin. Entrepreneur are essential for growth
and expansion of economy as they planned to established an enterprise that will exchange goods
and services in return for getting specific price thus it contributed towards addition to GDP of
particular economy. There are various skills, trait and characteristics that are present in
successful entrepreneur which are explained below:
Persistence: When an individual puts the continuous efforts towards achieving specific
objectives by performing various task and activities. Persistence helps an entrepreneur to easily
accept various change of external environment and helps firm to gain competitive advantages.
Therefore it can be stated that persistence is most important and essential personality trait for a
successful entrepreneur to grow its business. For examples: Chay and Tessa both face various
challenges while running their respective business but due to their consistency and strong
determination to work hard has helped in achievement of company goals (TOP 30 INSPIRING
UK ENTREPRENEURS, 2019).
Vision: One of the characteristics of successful entrepreneur is that it has strong vision and
mission that helps it to stay motivated and dedicated to work hard and effectively for growth and
success of enterprise. Both Tessa Clarke and Chay Blyth have a strong vision to start a business
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and satisfied needs of customers in effective manner to earn specific amount of profitability.
Strong vision has helped in long term growth and survival of companies in highly competitive
market and contributed towards better operation of enterprise.
Motivation: It is most common skills that is found in every successful entrepreneurs that have
contributed toward operation of business. As positive and motivated entrepreneur can easily
inspired large number of individual to work hard or effective so that common goals can be
attained and company can earn more profitability (Sarason, 2018). Successful entrepreneur
through effective motivation characteristics is able to induce employees and customers to
perform as per its specification so that particular goals can be attained. For example Tessa and
Chay successful entrepreneur of United Kingdom are always motivated and influence or have
positive synergy that helps in facing situation or challenges of organisation for smooth operation
of business.
Communication skills: It is one of the most important and essential skills that are present in
entrepreneur in order to share its innovative idea and view to stakeholder and investors so that
sufficient capital can be arranged for smooth operation of business.It helps in influencing
employees and other individual to effectively implement particular plan and contributed towards
achievement of common objectives. Chay have good communication skill that helps in making
employees happy and satisfied and informed customers about innovative idea thus build strong
brand image. At the same time Tessa Clarke also communicating its idea to save wastage of food
helps in raising sales volume and profitability of company through making more and more
people aware about different products and services.
Risk taking ability: Successful entrepreneur have ability to bear specific amount of risk so that
sufficient profit can be enjoyed. Individual is highly informed about associated risk with
particular business so it decided to bear certain amount of risk for growth and expansion of
business in competitive market (Kowalik, Danik and Sikora 2017). Chay by establishing
business of challenges business have take huge amount of risk but due to confidence and strong
determination about its unique ideas has helped in making it one of the successful entrepreneur
of UK. Tessa has also bear high financial risk as it also have introduced new ideas to make
optimum utilisation of food for health and well-being of individual.
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Creative: Successful entrepreneur have special quality to think innovative and creative idea to
satisfied needs and wants of different individual. Both chay and Tessa have find new and
creative method to satisfy needs of customers so that maximum profitability can be gained.
Goal oriented: Entrepreneur are highly focused to their respective goals that helps them to stay
positive and faced different challenges so that best outcome can be gained. Chay and Tessa have
continuously put their best efforts and planned way so that specific goals can be achieved within
limited time frame.
Independent: Tessa does not have any background of entrepreneur despite that she decided to
take steps to start and established business so that wants of customer’s can be fulfilled. Chay also
have taken independent decision to bear specific amount of risk in order to earn maximum
profitability. Therefore successful entrepreneur have characteristics to take first move advantages
or bear risk and enjoy profit and take decision independently.
Inquisitive: Entrepreneur have curiosity to learn new things, or they are eager to learn idea or
trend that they can use to start and operate business smoothly. Tessa have inquisitive mindset so
she was ready to learn new method of doing particular thing so that best result can be get. Chay
have similar mindset that has motivated him to have knowledge of recent trends and learn new
things to run business.
Difference between entrepreneurship and business manager
Characteristics, skills and traits Entrepreneur business Manager Decision making
Entrepreneurs have special skills to take accurate and timely decision for growth and expansion
of business.
Manager uses similar approached in order to take specific decision for effective management of
enterprise.
Risk taking Successful entrepreneur have ability to bear huge amount of risk so that company
can gain competitive advantages. Whereas manager take minimum amount of risk that is
essential for effective operation of business. Vision Entrepreneurs have a skill to create strong
vision and mission for organisation. On the other hand, manager is responsible for implementing
vision through forming various strategies to influenced individual to work hard. Independence
Entrepreneur can freely or independently operate its function as it is owner of organisation.
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Managers have to follow instruction of entrepreneur or top authority while performing its task
therefore it is not independent.
Entrepreneurial personality Reflect motivation and mindset
Entrepreneurial have strong and attractive personality that helps in influencing maximum
number of individual to perform task in specific manner so that bets outcome can be gained. It
can also be stated that entrepreneurial personality reflects mindset and motivation that helps it to
effective operate business and take number of risk for accomplishment of desired objectives.
Such as:
Stay Focused towards its goals: Successful entrepreneur stay focused towards particular goals
and objectives such as they always tries to find new and innovative idea to cater needs and
preference of individual and expand company operation. Stay focused toward particular goals
helped in growth and sustainability of organisation in competitive market (Kimball and Lussier,
2020). Chay and Tessa through continuous focusing on better satisfaction of customers needs
and grow of organisation has contributed towards achievement of goals. They are not diverted by
struggle or challenges that they have faced while running business that have promoted in
enhancing sales volume and profitability.
Clear Intent or strong vision: Positive attitude and strong synergy of entrepreneur helped it to
stay motivated and positive to make continuous efforts for achievement of specific objectives. In
initial stage of business various challenges are faced by entrepreneur like limited resource,
insufficient capital to perform various functions or number of competitors in market. Such as
Chay Blyth and Tessa despite of many failures stay strong and committed with clear intent to go
forward in business or achieve particular vision in order to earn profit and market share. They
now who effective the idea is and the way they can achieve particular goals that motivated them
to faced different challenges and work hard for specific purpose.
Confidence and innovative idea: Entrepreneur personality represents strong confidence of
individual towards its new and creative idea that helps in to take various risk in order to
effectively implement particular plan. It see every single challenges as an opportunity or
innovative idea to meet needs and preference of different individual that live in particular
society. Such as chay through identifying challenges of sailing is able to take correct decision to
start a business of challenged business and earn profit (Manesh and Rialp-Criado, 2019). On the
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other hand Tessa through identifying that people are facing challenged in preservation of food
and environment resources is able to develop creative idea to cover large market area.
Takes Responsibilities: It can be analysed thatentrepreneur takes sole responsibilities for
effective operation of business organisation. Chay positive attitude and continuous efforts state
that it hav strong mindset to take specific responsibilities for performing specific task so that
particular goals can be achieved (Chay Blyth, 2019). Tessa and Chay have worked overnight in
order to perform different task so that company can earn sufficient profit margin. Both have
taken full responsibilities to bear associated risk, challenges and enjoy profit that has contributed
in become one of successful leader of UK.
LO4
Background and experience of individual that hinder and foster entrepreneurship
It can be stated that background and experienced of individual are main causes of hinder
and foster of entrepreneurship that can be explained through example of two successful
entrepreneur of UK – Tessa and Chay. Tessa belong to family that have poor financial condition
as his father was a farmer so she from her childhood has seen her father doing food production.
Therefore since childhood she learn known the importance of food and money in life of
individual that motivated and inspire to think innovative idea to distributed surplus food products
to those who does not have enough resources. Tessa have faced various challenges in personal
life in childhood that has helped in creation of positive attitude towards problem that is faced
while running business (Tessa Clarke, 2019). Despite there was no family background of
entrepreneur and good financial condition Tessa was able to establish business due to confidence
and strong determination in idea. So, it has helped in development or establishment of new
business and overall success of enterprise.
On the other hand Chay was first person to sail nonstop across worldwide on 59 foot
boat named as British steel. He has joined army at age of 18 in British army parachute regiment
thus from at this stage he started its career in sailing. So, all such experienced and background
has helped him to become successful entrepreneur of UK by deciding to start new business of
challenges business that will break down all barrier of adventure sports (Yang, 2018). Thus it can
be stated that experience as Scottish yachtsman and rower have foster in development of
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entrepreneurship. Chay interest in sailing has motivated him to start a business so that people that
have ability to bear challenges can take active part in business and contributed in enhancing
profitability of organisation.
Tania boller has faced various problem during pregnancy so her previous experienced has
motivated her to find innovates ideas to have solution of such problem. Therefore, she found a
technology that state the way little technology can helps women to bear pain. From there she
started making lifestyles products for women and able to become one of the successful
entrepreneurs.
Jeeny costa is another successful entrepreneur of UK that have worked for effective utilisation of
resource or waste food products. She has poor financial position as her father was farmer that
spend whole day to produce food and vegetable for other people and her mother used to make
chutney, jams and ketchup form surplus food products. So, her background, experience and
previous knowledge have contributed toward becoming successful entrepreneur of UK.
CONCLUSION
It can be concluded there are various types of entrepreneurial ventures presents in the
market which completely relates with typology of entrepreneurship. Nowadays micro, small and
medium-sized ventures are giving very high contribution in the UK’s economic growth. This
country is able to generate huge foreign exchange with the help of its various businesses and
ventures. On the other side, these businesses generate great employment opportunities also to
people of this country, and these ventures are positively affecting to the UK’s social economy as
well. At the end stage of report, some prime skills and characteristics also has discussed above
which can motivate to new entrepreneurs for becoming a successful entrepreneur their personal
life. An entrepreneur always needs to maintained positive mindset for gaining high success.
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REFERENCES
Books and Journals
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top management tangible competencies, relationship‐based business networks and
environmental sustainability. British Journal of Management. 29(1). pp.43-62.
Davis, A. and Walsh, C., 2016. The Role of the State in the Financialisation of the UK
Economy. Political Studies. 64(3). pp.666-682.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Howarth, C. and Roberts, B. M., 2018. The role of the UK Green Deal in shaping pro-
environmental behaviours: Insights from two case studies. Sustainability. 10(6). p.2107.
Hughes, M., and et.al., 2018. Family firm configurations for high performance: The role of
entrepreneurship and ambidexterity. British journal of management. 29(4). pp.595-612.
Idris, B. and Saridakis, G., 2018. Local formal interpersonal networks and SMEs
internationalisation: Empirical evidence from the UK. International Business Review.
27(3). pp.610-624.
Kimball, D.C. and Lussier, R.N., 2020. Entrepreneurship Skills for New Ventures. Routledge.
Kowalik, I., Danik, L. and Sikora, T., 2017. Entrepreneurial orientation elements in the Polish
international new ventures. Baltic Journal of Management.
Manesh, S .M. Z .E. and Rialp-Criado, A., 2019. International ecopreneurs: The case of eco-
entrepreneurial new ventures in the renewable energy industry. Journal of International
Entrepreneurship, 17(1). pp.103-126.
Marabelli, M. and Galliers, R. D., 2017. A reflection on information systems strategizing: the
role of power and everyday practices. Information Systems Journal. 27(3). pp.347-366.
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Sarason, Y. A., 2018. Social ventures: exploring entrepreneurial exit strategies with a
structuration lens. International Journal of Social Entrepreneurship and
Innovation, 5(1). pp.1-10.
Yang, M., 2018. Entrepreneurial marketing of international new ventures: a decision-making
perspective and propositions. International Journal of Export Marketing. 2(3). pp.231-
248.
Zahra, S. A. and Wright, M., 2016. Understanding the social role of entrepreneurship. Journal of
Management Studies. 53(4). pp.610-629.
Online
Chay Blyth, 2019, [Online]. Available Through:<
https://archive.theoceanrace.com/en/legends/61_Chay-Blyth.html>.
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
Tessa Clarke, 2019, [Online]. Available Through:< https://uk.linkedin.com/in/tecook>.
TOP 30 INSPIRING UK ENTREPRENEURS, 2019 [Online]. Available Through:<
https://www.businessleader.co.uk/top-30-inspiring-uk-entrepreneurs/64508/>.
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