Entrepreneurship and Small Business Management

ENTERPRISE AND SMALL BUSINESS MANAGEMENT
INTRODUCTION
The entrepreneurship is an activity to set a
business and taking some financial risk to earn
some kind of profit. Small business management
involve the practise of coordination and
alignments of businesses (Drobyazko and et. Al.,
2019). This report will evaluate the different
type of entrepreneurial ventures and its relation
with the typology of entrepreneurship. The
similarities and difference are also explored in
this. Further the micro and macro small business
impacts on the economy are determined with the
importance of small business and start-up in the
growth of economy. Characteristic and skill of a
successful entrepreneur.
Different type of entrepreneurial
Entrepreneur: This is an individual who
operate and organise an effective business and
further take higher financial risk to perform its
activities (Dhahri and Omri, A., 2018).
Entrepreneurship: Refers to development and
managing the venture to earn profit with
numerous risk or it can be willingness of an
individual to start any new business.
Typology of entrepreneurship
Established company: An established company
is developed by an entrepreneur or more then
that who come together for producing some
unique commodity. Their task goes beyond the
survival stage in the market, and they want to
enhance their profit on regular basis in the
market. The established company are created
including the legal process. These businesses
have international recognition and having
successfully operating in the market. Asda stores
Ltd. Is a British established company having its
supermarket chain and the biggest retailer of
UK. The company has found in the 1949, and
they are supplying varieties of product in
different type of outlets. To enhance its product,
Similarities of different ventures
Creative idea: For managing any kind of venture a
creative mind set is must get success in that type of
business. When an individual does not have effective
creativity then they will lack behind in the market (Muscio
and Ramaciotti, 2019).
Funding from investor: Whether the business is small or
large the funds are always required to undertake all the
activities of the business effectively. Without funds the
business cannot able to perform its activities effectively
because there is different type of resources required
(Urbano and et. Al., 2019).
Creation of brand name: For all the types of ventures the
brand name is always required to identify it in the market
and develop a unique image in the market. All need to
choice something different in their name so that the
customer finds easy to identify the brand and its product
in the market.
Difference between entrepreneurial ventures
Basis Survival Managed
growth
Public sector
entrepreneurshi
p
Social enterprise
Annual
growth
rate
The survival
companies uses
to earn that
must through
which they can
sustain the
market so very
minimal amount
of growth they
have,
The growth is
effective
because they
are operating
on large area
and at least 20
% is required
to growth in
these firms.
The growth of
this companies
are higher
because they
work with
innovation.
This growth better
because they are
provided the
commodities to the
people who are in
need of it.
Rewards The survival
firms are not in
the market to
earn they are
just want to
survive or very
minimal amount
is earned with
this company.
Growth firm
are being more
rewarding
because more
profit is
earned by
them.
This are
government
controlled so less
amount of
rewards is
earned, and they
are more service
focused.
This is having
effective amount of
profit because of
large number of
customers.
Technol
ogy
investme
nt
Fewer uses of
technology by
this firm.
Try to adopt
the latest
technology
from the
market.
The public are
also had
favourable type
of technology.
The technology
which is effective
and reasonable in
price is being used.
Impact and importance in economy
All organization that are operating in external
environment have different impact on the growth and
success of economy. Small, medium and large enterprise
are various firms that are performing their respective task
in effective manner so that qualitative services can be
delivered to customers. The way SME has impact on
different level in society can be illustrated in detailed as
follows:
 Likewise, it has been identified that there are around

they are using different practises and approach
so that customers get aware of it.
Small size social venture: The small social
venture is basically those venture which are not
the government controlled. This type of venture
has three major models that are social business,
hybrid non-profitable business and social
ventures (Sutter, Bruton and Chen, 2019).
Auticon is a small social venture in the UK, this
is one of the information technology consulting
company. Its services are basically focussed on
quality of it and its management practises, the
company have employed around 200 members
and from them majority of people are autism
spectrum.
Large size social venture: A large scale social
venture is a firm which is established by a social
entrepreneur who is performing the activities.
This is also privately owned no government
control. There is big difference in the social
venture and public companies in the market.
This company also can earn the profits in the
market yet the focus of this company is to serve
the needed people of the society. The mainly
they are operating on the social issue which are
currently in the economy this can be related to
poverty, environment, education. National
Healthcare Services is one of the large size
social venture in UK. This organisation is
focussed on healthcare provide facilities of
healthcare to the people who cannot afford it.
High growth firms: This type of firms are
having higher level of growth and employment,
and they remain focussed with the customers.
The employees are highly engaged in this type
of firms because their main aim is to maximise
the profit. The company also work with higher
level of technology and tools. These firms need
to grow their business approximately twenty
percentages in every three years (Hsieh and Wu,
2019). Facebook is one of the high growth firm
5.7 million small and medium enterprises that is
making 99% of all businesses in United Kingdom. At
the same time it has lead in generating more
employment opportunities for people as there are
around 5.4 million micro business that accounts around
96% of total businesses of UK (What Are SMEs & Why
Are They So Important for the UK Economy?, 2021).
 Moreover, the small and medium size businesses have
contributed in employing around 16.3 million people
that is contributing in generation of 60% of job in
economy. So, overall 55% has been contributed by
SME in GDP and 65% of total employment in high
income countries. Thus, enhancing disposable income
and lifestyles to people to maximum extend.
 At the same time, it has been estimated that around
£2.3 trillion that is 52% of turnover has been generated
through SME thereby helping in fulfilling requirements
of customers in the best possible manner (UK Small
Business Statistics, 2021). So, it can be summarized
that three fifth of employment has been generated
because of SME and it has helped in generating half of
turnover in private sector of UK.
 SME are important for the economy as they helped in
providing qualitative products and services to
customers at lower price possible. At the same time,
they also hire local people for completing various task

which is having international customers all over
the world and majority of audience are
customers of Facebook. Facebook is a
multinational company is one of the biggest
social network services.
Type of Entrepreneurial venture
Survival firms: This type of firms uses to cut
the cost margin and serve the limited amount of
local customers their motive is to run business.
They create employment opportunities and try to
sustain in the market.
Managed growth firms: The managed firms are
having their record related to the growth with the
respective competitors (Toghraee and et. Al.,
2017). These firms are continuously growing
and enhance their performance which get
measured as enhancement for sales, number of
employment etc.
Public sector entrepreneurship: This type of
venture uses to developed with innovation
public. It also involves the generation and the
implementation of new thoughts in the public
sector. The main component in this
entrepreneurship are innovation which
transforming of status quo economical and
societal environment and the uncertainty of
things.
Social enterprise: This type of businesses have
a social objective which assist to serve the
primary purpose. This type of enterprise of focus
to provide quality of social services and the
profits which is incurred with this type of
companies are invested in social programs.
in the organization thereby it leads in generating
employment and revenue in the organization.
 Almost fifth of SME are operating its functions in
construction industry as compared to others that is
mining and Utilities sector. So, overall the SME has
contributed in growth and development of economy or
countries through enhancing GDP, employment and
many more (Number of small medium-enterprises
(SMEs) in the UK 2010-2020, by size, 2021).
CONCLUSION
From the above there are few things that can be concluded
that entrepreneur is individual that have capability to
undertake higher amount of risk with motivation to earn
higher profit margin. Small, large and medium are
different entrepreneur venture that have various scope,
growth and development in the economy. At the same
time operating with different purpose and objectives. At
last, it can be summarized that SME are important for
economy as they help in generating revenue, employment
and growth of economy.
PPT