Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It covers topics such as entrepreneurial ventures, differences and similarities among entrepreneurial ventures, data and statistical analysis of SMEs in the UK, characteristics traits and skills of successful entrepreneurs, and the impact of environment on entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Entrepreneurial ventures..............................................................................................................3
Differences and similarities among entrepreneurial ventures.....................................................5
LO2..................................................................................................................................................6
Data and statistical Analysis of SMEs in the UK........................................................................6
Importance of small business in the growth of social economy..................................................8
L03...................................................................................................................................................8
Characteristics traits and skills of successful entrepreneurs........................................................8
L04.................................................................................................................................................10
Impact of environment on Entrepreneurship.............................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refer to the deals to run the business, develop it and organize the business
enterprise despite to the all uncertainties in order the large profit making. It can be done by
making a new business with new plans. Those who take risk and exercise the process of
entrepreneurship are known as the entrepreneurs who shows the abilities of working different
and determinant for a start-up following all the risk and make the profit out of it. Entrepreneur
are always busy in developing new ideas and new innovation to do business rather than working
on the old ones.
Small and Medium seized enterprises are worked by the individual who desire to take the risk
and have a will to work and strive hard for the bigger organizations. The report will explain the
entrepreneurs and describe the entrepreneurship ventures and their similarities and the
differences in the working. Further it will explain the factors background and the experience of
the well-known entrepreneurs (Monitor,2016).
LO1
Entrepreneurial ventures
Entrepreneurship refers to the creation of a business or enterprise while establishing it
from scratch to grow and generate profit. The purpose of entrepreneurship is to initiate a social
change and bring innovation in products and services by bringing out solutions and transforming
the world. An entrepreneur is a person who creates the business and bears risks and enjoys
rewards. In generally, the individual is termed an innovator who creates new goods, services,
business procedures and ideas. Entrepreneurs play a significant role in the economy to utilise
their skills, providing local employment and contributing to tax (Parker, 2018).
Intrapreneurship on the other hand refers to the combination of entrepreneurial skills in
an organisational context where an employee takes up an innovation project for the organisation.
The difference between entrepreneurs and intrapreneurs is that an intrapreneur uses the funds and
resources of the organisation and is not completely independent. The entrepreneur establishes
and runs the firm from ground up, entire responsible for his business and is independent and
authoritative (Gawke, 2019).
Types of ventures
Private: Private enterprises are businesses which are owned and operated by an individual or
group of individuals and the government has no control over it. Such businesses are motivated to
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earn profits and grow their business. They can be sole traders, partnerships, vendors or large
companies and conglomerates. Examples: Tesco plc, Pentland group, JCB etc.
Public: Public sector enterprises consists of various organisations owned and managed by the
government of a country and can have either partial or whole ownership. The economic activities
of the country are carried out by these organisations (Jewkes, 2019). Examples: National Health
Service, Civil Aviation Authority etc.
Social: Social entrepreneurship refers to an organization which creates products or services to
bring out solutions for social needs and issues. The goal of such organizations is to make the
world better and not only to gain profits. They can be non-profit organizations or hybrid
companies. Example includes an organization- Safepoint Trust which redesigns medical tools
and introduces inexpensive items for underfunded clinics around the world.
Typologies of entrepreneurships
Lifestyle entrepreneurs: Such entrepreneurs establish businesses to further their individual goals
instead of focussing on acquiring wealth. Lifestyle entrepreneurs create business around their
own personal interest or hobby during their spare time. Such businesses are not intended for high
growth and generally have few employees. Examples: A small home baked goods seller or a
second-hand book store.
Internet based entrepreneurs: Such entrepreneurs run the business online and utilise the internet
and technology to support, manage and run their daily operations. The business activities such as
sale of products or services are conducted via a website or application. They can also be home-
based. Examples: iTunes, Amazon sellers, eBay etc.
High potential entrepreneurs: High potential entrepreneurs operate large companies and employ
around 20 to 500 workers. Such companies are fast-paced and undergo high growth rates. They
tend to introduced and develop innovations and latest technologies and therefore have good
funding chances. Examples include fast growing tech companies and large technology
companies like Facebook and Google.
Different sized entrepreneurships
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Micro: These are very small enterprises which employ around less than 10 people and the annual
turnover is less than £2 million. Examples include accounting services, photography, childcare,
housecleaning and catering etc.
Small: Small enterprises employ less than 50 people and the annual turnover is under £10
million. The operating cost and revenue are higher and have a tougher funding and tax structure.
Medium: Medium enterprises employ less than 250 employees and the annual turnover is not
more than £50 million. Examples include small manufacturers, transport companies, recruitment
service providers or small holiday parks like Verdant Leisure, England (Brown, Liñares-Zegarra
and Wilson, 2017).
Large: These are large corporations and companies who employ more than 250 workers and
annual turnover is more than £50 million. Examples: Marks & Spencer’s, Asda, Cadbury etc.
Differences and similarities among entrepreneurial ventures
Differences
Public enterprises Private enterprises Social enterprises
Objective is Social welfare. Objective is profit
maximisation.
Objective is social welfare and
business growth through
innovative ways.
Owned and managed by the
government
Owned and operated by
individuals or a group of
individuals
Owned and managed by
individuals, community
members etc.
The source of funds is tax
contribution of the citizens,
capital is arranged by central
government.
Funding is done through
business loans, owner’s capital,
investments and IPOs
Funding is through socially
responsible investing (SRI),
CSR funds, owner’s capital,
grants, subsidised bank loans.
Area of operations includes
basic and public utility sectors.
Area of operations is extended
to every business activity
except government matters like
national security.
Operates for social and
community development areas
and can extend too any area of
need.
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Similarities among different types of entrepreneurships and ventures are: they operate to provide
utilities, innovative products, goods and services to the people. Their aim is to grow and expand
their business activities to maximise their reach, increase customers, develop and earn profits
(Marume, Jubenkanda and Namusi, 2016).
LO2
Data and statistical Analysis of SMEs in the UK
Total number of businesses in the UK as on 2020: 5.9 million
Number of Small businesses: 5.82 million
Number of Medium businesses: 35,600
Number of Large businesses: 7,700
Registration for PAYE and VAT:
Registered: 2.6 million enterprises (45% of the total private sector businesses operating in UK)
Unregistered: 3.2 million businesses
Analysis on the basis of Employment and Turnover
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Figure 1: Employment and Turnover Percentage of SMEs in the UK
Source: UK Government, 2020
The number of small businesses operating in UK is the highest around 5.82 million. They
account to around 99.3% of the total business enterprises operating in UK. Yet they provide
employment to 47.8% of people and have a turnover of approximately 36.8%. Medium
enterprises are around 35,600 in number and account for 0.6% of the total businesses. Such
enterprises provide employment to 12.6% of the population and have an annual turnover of
15,4% in total. Large enterprises on the other hand account for only 0.1% of total businesses that
is 7,700 but provide employment to 39.5% of the population and have a high turnover of 47.8%
in total. Therefore, it is noteworthy that large enterprises are important in UK economy because
they have a major impact on the growth of the economy in spite of being small in numbers.
Small enterprises should aim at achieving more in terms of revenue and Medium enterprises
should check on their innovations and operating expenses in order to generate more profit as well
as aim at employing more people.
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Importance of small business in the growth of social economy
Employment opportunities: - Small businesses and other SMEs helps in providing the
employment opportunities for the local people and by inducing the growth and innovation to the
society where the company and business gets established. SMEs help in giving more
opportunities to those who doesn’t get chance from the large organization, SMEs give working
environment to the community to employee people who may not get employment in the bigger
organizations. There are many bigger organizations who gets dependent on the small business
and SME by outsourcing functions within the same community (Belás,2016).
Tax contribution: - All the consumer prefer for a local business as the money will be given to
the society in term of taxes. A business man with successful business with high revenue return
from the business will required to pay the tax and essential to pay high tax including different tax
as the property tax and business tax. All these taxes are used to develop the local communities in
the society as the police stations, fire stations schools etc. An SME with great return in the
business and enhance more property and paying tax can help more in the tax to the society. Small
business is being charged on the bases of the locations which helps in the economy growth.
Adapting to changes: - Business need to change according to the economic climates and the
same goes with the SME in the market as they need to change according to the change in the
climate change in economy. This reflect as the business is a customer-oriented thing which
function according to the needs of the society. There are customers who only rely more on the
small business and prefer to support them and increase the strength of the local business and
economy (Wynn,2017).
Expansion in growth: - Expansion of the small business in the larger company can help in the
development of the economy and community development. Heir are many examples of small
business which get expanded over the time period and are a successful in the market with good
brand names, and they even help in the growth of the business perspective and even the society
perspective by providing taxes and giving employments & development in communities.
L03
Characteristics traits and skills of successful entrepreneurs
A successful entrepreneur shows certain skills, traits and characteristics that are
differentiate from other manager of businesses. Examples of some entrepreneurs Peter Jones,
J.K. Rowling and Simon Cowell.
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J.K Rowling she is the author of famous book name Harry Potter series, the author is
always been motivated for working hard and was keen on learning, the struggle of the Autor can
be seen as the 12 book publisher have reject the work of the author and still she become one of
the best public book seller. Peter ones is a businessman and TV personality and is been visionary
since its childhood & with creative ideas of running a billion-dollar business and always keen to
learning & dedicated to working. Simon TV personality and an entrepreneur who has been
dropped out of the collage to pursue the musical career, the major skills that all these
entrepreneurs are: -
Characteristics Traits of Entrepreneur: -
Future-oriented: -
As an entrepreneur its always to think of the forward and focus in keep moving, they
always tend to look for future. Entrepreneur are a goal-oriented and they are highly dedicated to
their needs as they understand the importance of the goals and understanding of the needs of
themselves. J.K Rowling, Peter jones and Simon all are always focused to their future which help
them in finding the success whether it took time and still they keep on going towards their goals
and worked hard for the future in understanding the need.
Creative: -
Every entrepreneur begins working with a ideas, to become one of the successful
business person, every entrepreneur thinks of innovations and new idea in doing things which are
different from others and a different perception towards any particular thing. Creative thinking
and ideas help an entrepreneur to be out of the box from all others and it help in become the
success as the different solutions and new ways of doing things help in achieving targets. J.K
Rowling is that author who think of Harry potter series which is totally different to understand
for so many publisher for so many time and at last it become one of the best book series in the
world wide platform and the credit goes to all the creative thinking of J.K Rowling
(Struckell,2019).
Passionate: -
It one of the most important factor and characteristic of a personality in doing something and
kept doing to achieve something. Without passion it is impossible for an entrepreneur and also a
normal person to achieve something in life. Entrepreneur need to be passionate as they work on
new ideas and working on new ideas need to required a lot of passions because entrepreneur are
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different in thinking and it take time for people to understand the thinking of the entrepreneur
and understanding the innovative idea of them and for that the passions need to require to
achieve the result in an entrepreneur. J.K. Rowling have waited for a long time and got rejected
from 10 book publisher but she was still passionate and at last she successes (Imam
Agung,2018).
Motivation: -
Passion kept an entrepreneur in keep doing the work as they are passion for their idea,
they put a lot of time and hours to get the result and for that they kept themselves motivated and
they are their own best motivation and are independent towards their work. If an entrepreneur
doesn’t get motivated its hard for him to work in the business as the idea need motivation and
passions both to work accordingly.
Decision: -
Decisive nature of the entrepreneur is important as to work on new think need to be quick
regarding the decision and to work on the best of the decisions and make the working fast. Fast
decision and quick analyse is important for the entrepreneur to understand the situation fast to
understand the situation fast. Decisive shows that they never miss any opportunities they get in
the day to day work. Peter jones have always decisive to their decisions and focused in analysing
the quick to the situations and worked accordingly, as a TV personality in many occasions they
required to be quick in their working and decision and as an decisive person its helped them to
understand the best to the situation.
L04
Impact of environment on Entrepreneurship
Entrepreneurs tend to be those who utilise the best use of the resources in working and they
are the individuals who perform all the work and process of the company to make it worthy to
get the result in the return according to the needs. They go with all the dangerous and problems
while performing on the idea and decision which give a rapid to their path of extreme result.
Entrepreneur are greatly affected with the past experience of person’s life. They have life
experience of different people which help them in reach a position and stability of success. The
success story of few entrepreneur who are well known for their work: -
Peter Jones: -
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Peter Jones is a child with a dream to be one of the biggest business man with
multimillionaire money, He is from a very poor family. He followed his father’s footprint & ran
a small business in the UK. Peter was in a good school and done his school and completed his
graduation from good collage, after that he went for the classes in English and joined it. He also
learnt to play Tennis as he likes playing sports in his free time and while playing the game, he
started giving coaching of tennis to players which help him in doing the business as being a
coach help him understanding the business strategies (Burns,2016).
Peter started selling computer as a business but got a loss in the business and then he shifted to
do the business of restaurant and in that he got a £200,000 loss in that business and all his wealth
went into the drain. The financial stability went so bad that he started working for other
companies and worked in mobile service company. The enterprises worked a lot in few years and
gained a lot of profit in the market which helped Peter to achieve the result he always wanted and
after that he started a charitable trust which help the business student in achieving their dream.
JK Rowling: -
J.K. Rowling was always surrounded with a lot of books throughout life and she wrote
her first book at the age of 6 with the tittle name Rabbit, she used to write a lot of stories and she
always tell the stories to her sister Dianne. At the age 9 she moved to Forest of Dean and spend
her childhood there. Schooling of J.K. Rowling is being done from government assistance
school, while growing up she was desperate for writing but the family was not supporting the
author. Their issues with authors writing are that they thought it will cost them a lot in the
financial terms and the teenage life of the Rowling is been very difficult.
But after schooling she finally joined the collage and get the graduation degree
successfully. She did her research work with Amnesty International but the work she did does
not suits her as she was busy thinking about the stories and character’s name. One day she was
travelling to London from Manchester, the thought came about the Harry potter. She worked on
it and it took around 5 years of her in plotting the 7-book series to the author. She always tried to
work in adult novels but unable to complete it. After her mother died when she was just 25 the
life becomes sad to her. When she got fed up with the secretory work, she moved to Portugal to
teach the English to students out there. In 1995 she wrote the first book of Harry potter and after
getting reject from many publishers one publishes company decided to accept it and made 500
copies of it. In 1990 the book was sold in 300,000 copies were sold.
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After getting the success of this she wrote the remaining and despite of having difficulties
throughout the life she didn’t give up and kept working and that passion help her in winning the
goals and she became first entrepreneur to sold so many copies of a book and become a milliner
(Rowling,2019).
CONCLUSION
The report explains the ventures and the entrepreneur’s skills and traits, it describes the
impact of the SMEs on economy and the mind sets of SMEs. Further in report it is discussed in
the entrepreneurs of the UK. The report critically evaluates impacts of the background &
experiences of the journeys of the entrepreneurs along the experience they faced throw-out the
life. The two examples also explain the dedication and the passion of the people in the life
towards their goals and the understanding of the needs of SMEs.
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REFERENCES
Books and Journals
Belás, J. and Ključnikov, A., 2016. The Most Important Attributes of Entrepreneurs. Case Study
of the Environment of Czech SMEs. International journal of
entrepreneurial knowledge, 4(1), pp.104-111.
Brown, R., Liñares-Zegarra, J. and Wilson, J., 2017. What happens if the rules change? Brexit,
uncertainty and UK small and medium-sized enterprises (No. 18-009).
Working Paper.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Gawke, J., 2019. Intrapreneurship: A psychological perspective.
Imam Agung, A., Mukhadis, A. and Sutadji, E., 2018. Embedding Entrepreneurs in Improving
The Skills Of Entrepreneurs of Technology-Based Vocational School In
Indonesia. MS&E. 336(1). p.012043.
Jewkes, J., 2019. Public and Private Enterprise: The Lindsay Memorial Lectures Given at the
University of Keele 1964. Routledge.
Marume, S.B.M., Jubenkanda, R.R. and Namusi, C.W., 2016. Similarities and differences
between public administration and business administration.
Monitor, G.E., 2016. Global entrepreneurship monitor. Empreendedorismo no Brasil (Relatório
Nacional). Curitiba: Instituto Brasileiro de Qualidade e Produtividade,
Paraná.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Rowling, J.K., 2019. Harry Potter. The 100 Greatest Literary Characters, p.183.
Struckell, E.M., 2019. Millennials: A Generation of Un-Entrepreneurs. Journal of Business
Diversity. 19(2).
Ubfal and et.al., 2019. The Impact of Soft-Skills Training for Entrepreneurs in
Jamaica. Available at SSRN 3374406.
Wynn, M. and Jones, P., 2017. Knowledge Transfer Partnerships and the entrepreneurial
university. Industry and Higher Education. 31(4). pp.267-278.
Online
Business population estimates for the UK and regions, UK government, 2020, Available through:
< https://www.gov.uk/>
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