Small Business Management and Entrepreneurship

This assignment is a comprehensive review of small business management and entrepreneurship, including key statistics, literature reviews, and online resources. It covers various aspects such as small business performance, entrepreneur characteristics, and the impact of Brexit on small businesses. The assignment also references several academic sources and provides a summary of SME Performance Review 2018.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................4
P2: Explore the similarities and differences between entrepreneurial ventures. .......................5
TASK 2............................................................................................................................................7
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.............................................................................................7
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy. ..........................................................................................................................8
TASK 3............................................................................................................................................8
Covered in PPT...........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship and small business management is a chain of activities that helps to
enhance entrepreneurial skills set by a process. Entrepreneurship is core of every business and
each organisation started with small business that is inspired by an entrepreneur. Economy is
very volatile, to remain enough competitive in business environment there is need of knowledge
and skills to differentiate from other businesses. Entrepreneurial skill set is very important for
each and every organisation, large or small, to survive in competitive environment there is need
to innovative thinking which is essential. Products and services are not new in itself but with
help of entrepreneurial skills they have to add up some values to give advance things to society.
This report is based on different entrepreneurial ventures with similarities and differences in
these ventures. Further it elaborates effects of micro and small businesses on economy and
contribution of start-ups in development of society.
TASK 1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurial venture is an important term for organisation that's core value is
innovation and wide opportunities to deliver economic and social values to society in better
manner. Every organisation's main goal is to earn profit besides to build a strong image in market
that helps to exist for long time period (Blackburn, Hart and Wainwright, 2013). There are
many types of ventures that are set up by different types of entrepreneurs to achieve their
objectives and goals. So entrepreneurs have large contribution in economy to give employment
opportunities and improving standard of living of people.
Entrepreneur is an individual who brings innovation and creative ideas to start a business
or an organisation (Bridge and O'Neill, 2012). They work to convert an idea into reality by
taking risks in order to satisfy future needs of consumers. There are various types of
entrepreneurial ventures that are set up by entrepreneurs that are as follows:

Small business entrepreneurs:
In small business entrepreneurs includes hairdressers, consultants and agents, commerce
store fronts and plumbers, electricians etc. they run their business in limited resources on small
basis. It is basically owned and operated by one person and individual is solely responsible for
all its profits and liabilities. There are approximately 6.5 million organisation run in UK as a
small business units (Carsrud and Brännback, 2011). Their employees are local people and
family members. Their main motive to earn money so that they are enable to feed their family
members and also make profit. For example an individual have to by opening new business in
small level can give large no. of opportunities by providing employment to others. They can
also contributes in economy.
Scalable entrepreneurship:
Scalable type of entrepreneurs come in market with strong vision and mission with
motive of change the world. They bring lot of funds from venture capitalist and attract lots of
investors towards them. In scalable entrepreneurship it provides new products and services to
customers with motive of change their lifestyles. For example scalable entrepreneurs work for
satisfying better needs of consumers by identifying their problems and give solution with
enlarge market share.
Large company entrepreneurship:
Large company entrepreneurship have long life cycle of products and bring innovation
that gives them sustainability. These have finite life cycle. They provide new products and
services with new and technological advancement in organisation. For example it is very
beneficial for them to produce innovative products and by launching new products so that they
can completet their product line. They have new opportunities with new competitors that create
pressure for disruptive innovation. Large size of organisation make difficult to adopt disruptive
innovation (Carsrud and Brännback, 2011).
Social entrepreneurship:
Social entrepreneurs are different kind of innovators that creates new products and
services for satisfying social needs in different way. Their sole motive is to make the world a
better place of living by solving problems of consumers (Chittithaworn and et. al., 2011). For
example these types of entrepreneurs work with motive of social needs of consumers so that they
can satisfy their wants in proper way and complete product line in better way.

There are various types of typologies that are as follows:
sceptical entrepreneur:
These types of entrepreneurs by observing others opportunities and their success plan to
start their own business and they relate with scalable entrepreneurship that have large no. of
funds to start their business. For example these entrepreneurs by observing needs of world can
better satisfy their wants in so that they can expand their product line.
Research entrepreneur:
That type of entrepreneurs find the new opportunities and research about some subjects
and after find opportunities in them start their business. It is relate with sociable entrepreneur
who find solution of society. For example these types of entrepreneurs by identifying solution of
their problems in better way to get loyalty of consumers.
Academic entrepreneur:
Academic entrepreneurs are university scientist, professors, PHD students that set up as
business to commercialise their research. For example Julian Birkinshaw professor of London
business school, Emer Dooley professor of University of Washington.
Public entrepreneurs:
They build something from nothing by financial and human talent. For example Oprah
winfrey, walt dinsney, Andrew carnegie etc..
Private entrepreneurs:
Individuals that conduct business without incorporation of legal entity registered as
private entrepreneurs. J. K. Rowling, Benjamin Franklin etc..
Social:
Social entrepreneur is one who start up company for solution of social, cultural and
environmental issues. For example Bill Drayton, Rachel Brathen etc..
corporate:
corporate entrepreneurs used to develop new businesses, services with products in an
existing organisation to develop value. For example John Paul DeJoria, Andrew Carnegie etc..
Entrepreneurial ventures are very important for organisation as well for individual
development because it gives vast opportunities by providing employment opportunities. On
other hand it by developing new products and services in an innovative way by lessen for small

and local business enterprises that impacts negatively on economic growth and enhancement. In
public sector enterprises they focus on welfare of society and on other hand in private sector
entrepreneurship they focus on giving best in organisational and individual benefit to gain profit
and gain large market share.
P2: Explore the similarities and differences between entrepreneurial ventures.
There are various types of similarities and differences in entrepreneurial ventures that
give important insights about their objectives and goals ( Chrisman and et. al., 2012).
Social entrepreneurship Large scale company entrepreneurship
similarities similarities
 Social entrepreneurship contributes in
welfare of society by providing goods
and services
 Social entrepreneurship work for
satisfying needs and wants of
consumers.
 Large scale entrepreneurship also
devote lot of investment in CSR
activities which ultimately contributes
in society welfare.
 Large organisation is also work for
satisfying needs and wants of
consumers.
Differences Differences

 Social entrepreneurship have main aim
to improve standard of living of society
by offering their products and services.
Its main aim to make the world a
better place.
 In that entrepreneurship price are set
according to expenditure capabilities of
segment of customers.
 This venture work for reduction in
poverty and unemployment issues.
 Large scale entrepreneurship's main aim
is to give innovative products that
satisfy future needs and demands of
consumers.In large scale company
entrepreneurship they set prices
according to innovation they provide
different from their competitors.
 It works for satisfying human wants and
needs in better manner along with
earning high profits.
Small business entrepreneurs Scalable entrepreneurs
Similarities similarities
 Small business entrepreneurs work to
earn profit by satisfying their needs and
wants of consumers.
 They gives their contribution in
economic development.
 Scalable business entrepreneurs also
work for gain huge profit by satisfying
wants and needs of consumers.
 It also contributes in raising standard of
people and also improve economic
condition.
Differences Differences
 Main motive behind existence of small
business is to earn money so that they
can feed their family members .
 Their employees are local people and
their family members.
 Motive of scalable entrepreneurs is to
change world from their innovation and
creative products and services.
 In that type of venture, they recruit
people from different spheres and
skilled workforce that give their
contribution.
Difference and similarities between public and private entrepreneurship:

Difference Public entrepreneurship Private entrepreneurship
Public entrepreneurship is
developed by local, national
and regional authority to
support self developed
entrepreneurs to support
through development
networks.
On other hand private
entrepreneurship is one which
work with new idea and their
main motive is to earn profit.
Public entrepreneurs are
government or public actors
that works on system to
resolve social and ethical
problems.
Private entrepreneurs are
private agents that work for
self motive and earn for earn
money.
Similarities:
similarities Public entrepreneurship Private entrepreneurship
Public entrepreneurship main
focus is to solve the problems
and issues of masses by
accessing their needs.
On other hand private
entrepreneurship focuses on
satisfying wants of consumer
by earning huge profit. Their
main focus is to earn profit.
Small businesses are backbone of UK economy that brings growth and helps in open up
new market and give job opportunities that contributes a lot. They works seedbeds for innovation
and bring fresh ideas that become challenging as an status quo. Small business is responsible for
99.3% in private sector businesses in 2018 and 99.9% in small and medium sized businesses that
ultimately contributes in turnover of small medium business enterprise was £2.0 trillion in all
private sector enterprise.

TASK 2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
There are different types of organisation that directly and indirectly contributes in
development of economy ( Dennis , W. J, 2011). Organisation by achieving goals and objectives
raise standard of people and satisfy wants of consumers and give contribution in GDP of
economy.
There are different types of businesses that contributes in economic development of UK
that are as follows:
Micro businesses:
Micro enterprise are those which employs people nine or fewer than nine and they have
balance sheet over a certain amount. There are certain benefits of micro businesses that are
decision making, flexibility in operations and less conflicts are major considerations of micro
businesses. There are approximately 5.20 billion business organisations that work as a micro
business organisations in UK (Drucker, 2014).
Small businesses:
Small-business are privately owned firms in which corporations, partnership and sole
proprietorship are included. It has low revenue in comparison to regular sized business or firm
and have less employees. It independently operate in an arena that is reason more than half of
business work in that field in UK.
Medium size businesses:
According to Companies act 2006 medium sized businesses in which employees up to
250 are available. It may be family owned business and managed business in which ownership
separated from management. Financial structure of medium size business is articulated and
manage short term cash flows in business.
UK economy faces crisis after Brexit, its economy become unstable due to changes in
environment and in its other factors. With help of small businesses and other organisation it get
support to manage different crisis and drawbacks that impacts on every sphere of economy
(Fassin, Van Rossem and Buelens, 2011). it impacts on economic stability and give
empowerment to come up with drawbacks present in economy has been observed that micro and
small businesses grab a large market share of in economy. SMEs contributes in contributes

economy will increase 11% from 2015 to 2020 by contributing £196 billion. In London large no.
of SME that have contribution of £149 billion in 2015 and it rise £164 billion by 2020. so it
contributes in economic development and enhancement.
Interpretation:
From the above mentioned graph it has been summarised that in Micro 18.9% people are
employed, 23.4% in small business and 29.2 in medium small business.
Illustration 1: Brexit’s impact on small businesses: the experts may be spot on after all 2019
Source:( Brexit’s impact on small businesses, 2019)

Interpretation:
From the above graph it has summarised that between 30 to 39 age people in small
business is 14.7 and 7.5 in medium business. In 40-49 age people in small business are 26.1 and
27.3 in medium. People of 50-64 age 47.4 in small-business and 51.0 in medium businesses. 65+
age group is 11.8 in small and 14.2 in medium are concerned with it.
Illustration 2: Archived — Key Small Business Statistics
Source:Archived — Key Small Business Statistics June 2016)
Illustration 3: Small Businesses

Interpretation:
From above graph it has been summarised that in micro 87.6 in GLLEP and 88.2 in UK
and 0 to 4 in 73.7 in GLEEP and 75.6 in UK and 5 to 9 in GLEEP is 13.9 and 12.7 in UK. Small
in 10.3 in GLEEP and 9.7 in UK. In medium 1.7 in GLEEP and 1.7 in UK. In large 0.4 in
GLEEP and in UK its .4.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy
Small businesses and start-ups helps to give economic stability and growth to economy in
market. It provides a lot of employment opportunities to masses and economic viability to
country also (George and Bock, 2011). It helps to increase in per capita income and gives a lot
of contribution in UK economy.
Small businesses impact on social economy of UK:
There are large no. of opportunities provide by start-ups and small businesses and it
contributes a lot in enhancement of social economy of UK that are as follows:
Social and economic evolution:
Small business enterprises seemed as power of UK economy that give in economic
stability. In UK there are about 5.5 million small businesses. They help to develop 15.5 million
opportunities in that country that it is big indicator of economic prosperity in country.
Social secularity:
Small business enterprise help to give income stability to both industries and people and
it also a revenue generation source.
Taxes and income:
it helps in economic stability and helps in growth of social economy is business.
(Gorgievski, Ascalon and Stephan, 2011).

Interpretation:
from the above graph it has been summarised that small business have 87.7%, in medium
is 7.7% and 4.6% in large business.
Illustration 4: Archived — Key Small Business Statistics
Source: (Key Small Business Statistics - June 2016)

Interpretation:
from above graph it has been summarised that in 2011 small businesses have 4.7 and 3.0
in medium and 8.8 in large. In 2012 4.4 in small, 3.1 in medium and 8.8 in large. In 2013 in
small 3.9 and 2.7 in medium and 9.0 in large.
Illustration 5: Archived — Key Small Business Statistics -
Sources: Key Small Business Statistics June 2016

Interpretation:
From above graph it has been summarised that SMEs in UK sometimes increases and in
European union it sometimes decreases.
TASK 3
Covered in PPT
CONCLUSION
From the above report it has been concluded that small and medium enterprises helps in
development that contributes in economic development and advancement. Entrepreneurial
Illustration 6: SME Performance Review
Sources:( SME Performance Review 2018)

venture and its different typologies helps to understand that there are lots of opportunities before
an individual to enhance employment opportunities to society. Further it contributes in economic
development of masses by contributing by increase their living standard and gives stability to
them .
REFERENCES
Books and journals:
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Archived — Key Small Business Statistics - June 2016
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