Entrepreneurship and Small Business Management - Assignment Sample

Entrepreneurship and Small Business
Management

Table of Contents

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business at
initial level. This report will give the details the different types of entrepreneurial venture and
how their relation with different typologies and shows the differences and similarities between
various entrepreneurial ventures. The study will interpret data and statistics to illustrates small
and micro business and their impact on UK economy. Further the report describes the
importance of small business and new start ups to the growth of social economy and the report
also identify the traits and skills of a successful entrepreneur which differentiate from other
businessman. And the study also shows how entrepreneurial personality affects the motivation
and mindsets of the entrepreneur. Summary will also shows the historical background of
entrepreneur which hinder or foster the entrepreneurship.
LO1
P1 Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship.
Entrepreneur venture provides services to mid stage and early stage companies.
There are different types of entrepreneurial ventures such as-
Large growth venture
Large growth of venture are focused on innovation and offering new products which are
not produced by any other companies. Large companies focus on aggressive expansion and
wider risk. The purpose of this venture is to earn large amount of profit. Shell is the large
growth venture in UK(Burns and Dewhurst eds., 2016).
Survival growth venture
These venture are not formally registered and has no premises, no bank account and work
with very few assets. And survival venture operates on cash basis or barter basis. The purpose of
this business is to earn minimum amount of profit on daily basis so that they can survive.
Middle growth venture
These types of venture have a workable business model which seeks a stable growth over
certain period of time. The purpose of these venture is to provide reinvestment in the businesses.
These venture not earn large profit. It earns normal profit by providing products at reasonable
prices. Verdant Leisure is the middle growth venture in UK (Mugler, 2017).
Public venture
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Public venture is created for the welfare of public. The purpose of this venture is to
provide quality products at reasonable prices. For example, Aviva.
Private venture
Private venture is created by the private companies to earn large amount of profit by the
private companies. The purpose of this venture is to earn huge profit by offering high price
products. Private venture in UK is John Louis.
There are various typologies which are followed by different ventures are as follows-
Scalable typology
Scalable enterprises are institutions which can deal with increased market demands.
Scalable enterprise maintains or increase its profit margin as when sales volume increases.
Scalable typology is followed by large growth ventures.
Social typology
Social typology can be of social goals as well as business goals. Social typology can be
non profit organisations. Social typology meets the basic needs of people by providing income
generation opportunities (Karadag, 2015 ).
Lifestyle typology
Lifestyle companies are created by the entrepreneur primarily and the main aim is to
sustain a particular level of income. The aim of the lifestyle typology is to increase the life style
of the people or maintain a minimum level of standards. The lifestyle typology is commonly
used by survival venture.
P2 Differences and similarities between different entrepreneurial ventures
Large growth
venture
Survival
growth
venture
Middle growth
venture
Public venture Private
venture
Objective The objective
of this venture
is to offer high
quality
products at
The objective
of this venture
is to do
business with
minimum
The objective
is to provide
investment
which assist
moderate
The objective
of public
venture is to
sell the quality
products to
The objective
of private
venture is to
earn high
amount of
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high prices. profitability. business
growth.
public in
reasonable
prices. And
this venture
has social
objective also.
profit by
selling high
quality
products.
Market size The market
size of the
large growth
venture is
limited. As all
buyers don't
prefer to pay
high prices for
products
(Staniewski,
2016 ).
The market
size for
survival
growth
venture is not
large as
business
operates in
limited area so
its customers
are also
limited.
The size of
market in
middle growth
venture is
large as its
purpose is to
provide
investment to
business and
provides
moderate
growth.
The market
size of public
venture is
large as large
amount of
people prefers
quality
products in
reasonable
prices.
The market
size for the
private venture
is not very
large as all
buyers are not
interested to
pay high
prices for
products.
Economic
motives
The motive of
this venture is
to create good
wealth in the
market.
The motive of
this venture is
to sustain in
the market.
The motive is
to create brand
image in the
market.
The aim is to
earn
reasonable
profit.
The aim to
earn high
profit and
wealth
creation.
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Management
skills
T
The skills
business has
are planning
skills,
innovation and
negotiations
skills.
The venture
has Production
and selling
skills.
The venture
has delegating
and leveraging
skills.
The business
has leadership
skills, decision
making and
problem
solving skills.
Private
venture has
selection skill,
supervision
skills and
motivation
skills.
Structure The venture
has functional
structure.
The structure
of this venture
is very small.
The business
has centralised
and functional
structure.
The structure
of public
venture is
average and
market based.
The structure
of business is
very large and
centralised.
There are similarities between all type of ventures ie, large growth, middle growth,
survival growth, public and private growth ventures. All ventures requires finance to carry out
trade operations (Karadag, 2015). As without the availability of funds business tasks cannot be
carried out.
Customer satisfaction is another similarity between all types of ventures. It is necessary for a
venture to satisfy their customers. Business cannot conducts its operations long until its
customers are satisfied.
LO2
P3 Impact of micro and small scale business on the economy.
Small business in UK is the known as the vbackbone of the country's economy. They
keep on progressing daily contributing in the progression of the country. In UK 16.3 Million
people are employed which is the total of 60% of total employment in UK. The total turnover of
UK is based on 52% of various private sector turnover contributing £2.0 trillion. The small
companies Tgenerated 99.3% total all those companies which are not owned by the government
and 99.9% small and middle sized business where the overall business population includes 3.4 M
sole proprietorship (59% of total), 1.9 M companies (34%) and 4,05,000 ordinary partnership
(7%).
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 Employment
Majority of small scale businesses are not employers then to they are responsible in generating
huge employment in UK. A total of approx. 16.3 Million people are employed (Karadag, 2015 ).
Thus, it is considered that small and middle scale businesses are the major employer of the youth
of UK resulting in the betterment of their standard of living and improving the quality of life.
 Growth
The SME is showing devastating outputs when comes to evaluation of economic growth. The
small scale manufactures are mostly responsible for the growth of the overall economy.
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Illustration 1: Source : UK SME Data, Stats & Charts
(Source: What is the Actual Impact of Small Business on the Economy, 2019)

 Industry
The small and medium size businesses in UK resulted in then mutual benefit of overall economy
of the country by maintaining its economic health. Around 99.5% business in every sector is
withdrawn by Small and Medium Scale Businesses.
 Turnover
The turnover contribution of the year 2018 in SME's is £2.0 Trillion. The private small and
middle sized business contribute 52% of total turnover. The effective contribution of such great
figures of the SME will lead to the productivity of the total economy raising the turnover
capacity of the economy (Laukkanen and Tornikoski, 2018).
 Export
The small and middle scale industries are the major contributes of export of the UK nation. The
total contribution in the country's economy by this business activity results in the 26% of total
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Illustration 2: Source : The role of small businesses in the UK economy
(Source: Essential Facts You Should Know about SMEs in the UK, 2019)

export which help in earning the foreign currency and even employ lot of people working for the
type of firm.
P4 Importance of small businesses and start-ups to the growth of social economy.
Social economy is created by huge diversity of organizations and enterprises including
associations, foundations, mutuals, cooperatives and institutes sharing common features and
values like social objectiv and individual objectives, open membership, democratic governance,
combination of interest and responsibility, autonomous management and sustainable
development. The growth of socio economy is reliable on small business and start-ups in
following ways -
 Employment of local workers
The implementation of small businessenterprises is to promotes the growth and innovations to
the community in the area of business establishment. The operation of small businesses in local
areas will promote the employment opportunities for individual who are not hired by the large
corporations. Several of the large businesses are also dependent on the working of the small
businesses as SME are responsible for completing of several business function through
outsourcing.
 Adaptation of changing climate
Small businesses adapt and respond quickly to the changing environments as they are proved to
be customer oriented and asses the needs of community (Karadag, 2015 ). As at times of
financial crises the consumers stay loyal to the local businesses that result in the strengthen of
local economies. And at times of crises the small businesses fear of losing less than they earn
limited amount of revenue.
 Taxes to local government
Small and mid sized businesses tend to give the money back to the government as at times of
generation of high incomes they are accountable to pay taxes which will be further used in
developing the local societies. The small business result in generation of sales tax and thus
overall contribute in the betterment of social economy.
 Diversity
Small business enterprises are more flexible in the working environment resulting in diverse
form, culture, function and potential than that of the large enterprises and corporations. The
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greater is the diversity in an economy the easier it is stated for the economy to face those tough
conditions and thus resulting in strengthen the overall social economy.
LO3
P5 Characteristic traits and skills of successful entrepreneur that differentiate from other business
manager
(Covered in PPT)
P6 Aspect of entrepreneurial personality reflects entrepreneurial motivation & mind-set
(Covered in PPT)
P7 Impact of background and experience on entrepreneurship.
(Covered in PPT)
CONCLUSION
From the above study it is concluded that the micro and small organisations play a vital
role in the growth of the economy as they are responsible for generating employment and growth
for the nation. The small scale industry also contributes in the overall turnover and bring the
nation to a better state. Also, the new business are helpful in the advancement social economy
generating employment to the locals as well as generating of taxes for the local government; and
the impact of background and past experience of Richard Branson as his grandfather was a
judge of high court and influenced in making right decision and his mother was entrepreneur and
motivated him in giving different ideas to do different types of businesses and take validated
risks. The experience of mother motivated him in becoming successful entrepreneur.
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REFRENCES
Online
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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>
What is the Actual Impact of Small Business on the Economy, 2019. [Online]. Availabe through
<https://www.thebalancesmb.com/small-business-impact-on-the-economy-4175064>
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