Entrepreneurship and Small Business Management in UK (Doc)

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship.....................................................................................................................1
P2. Explore the similarities and differences between entrepreneurial ventures.....................3
Similarities between private, public and social enterprises.............................................................4
TASK2.............................................................................................................................................4
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.........................................................................................4
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................7
TASK 3 and TASK 4.......................................................................................................................7
Covered in PPT.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is considered as the structure of initiating a new business or operating a
enterprise through an individuals who enter with creative products into competitive market area.
Mainly, this is the capability of people to improve as well as perform another venture through
facing risk for earning profitability into market (Burns, 2016). An entrepreneur is generally self
employed, inspired as well as has few aim to accomplish its goals in effectual way. The main
objectives of this report is to know about the management of entrepreneurship and small business
of UK. The purpose of this report is to analyse the various kinds of entrepreneurial ventures and
its similarities and differences. Moreover, presentation of relevant statistics which depicts value
of SME's business. Apart from this, experiences and background of successful entrepreneurs
that obstruct or foster them for becoming successful are also mentioned in this report.
TASK 1
P1. Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
Entrepreneurship is the procedures to develop, introduce as well as operate new venture
that is frequently at first a small enterprise. The individuals who formed these ventures are
considered as the entrepreneurs. Enterprise is considered as the firm or capability to think about
new as well as efficacious things to perform or operate.
Difference between entrepreneurs and intrapreneurs
intrapreneurs is refers as an employees of the firm to whom the remuneration is paid as
per the success of the business unit for that they recruited or accountable where as entrepreneur
is an individual who bear a considerable amount of risk in order to run the enterprise.
Various activities that are linked to entrepreneurship
The activities that are related to entrepreneurship are finding as well as exploiting new
products, procedures etc., expanding economic activity, brain storming for another enterprise,
strategizing the next market move and many more.
Examples of various ventures undertaken through entrepreneurs
There are various types of entrepreneurial ventures that are explained below:
 Small entrepreneurial ventures: These are that ventures which are small in size as well
as do not required more capital (Fatoki, 201). It have few numbers of staff. For example:
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orion tech limited, travel agents, hair dressers and others. They mostly recruit the local
people as well as operate in order sustain into competitive market.
 Large entrepreneurial venture: These are that ventures which are leading rapidly as
well as acquire more market share. They has limited life cycle and lead by performing
innovation, facilitating new goods or services for satisfying the requirements of
consumers. For example: National Healthcare Services (NHS) is a large firm that provide
health services to the public and are affiliated with health and social care in Northern
Ireland.
 Social enterprise: These are those ventures which are incorporated through few certain
people in order to develop the society. Moreover, they are also, supported through
government of particular country as its aim is to uplift the societal standards. The aim of
this enterprises is to attain a specific public or community mission. For example: Oxfam
is the best non-profit firm that works for social services such as support the child
education and many others.
 Public enterprise: These are the business that are fully or partially owned through state
as well as controlled by public authority (Gabadeen and Raimi, 2012). Few public
company are placed within the ownership of public as for societal reasons. The objective
of this is to promote self-reliance into strategic sectors of national economy. For
example: telecommunication, national audit commission and so on. National audit
commission is an independent parliamentary body within UK that is controlled through
public bodies.
 Private enterprise: These are the business that is owned or operated through people or
commercial firms as well as not by official company or central government. The main
aim of this is profit maximisation. For example: SME's such as food leisure, retail,
hospitality and many more. Retail private firm like Tesco, it is not govern through
central government.
Typologies of entrepreneurship
 Growth firms: Typology is formed for gaining profit or revenue. Entrepreneurs of these
ventures always try to develop creative ideas in order to achieve success into competitive
market. These ideas are formed through business person for grabbing the attention of
clients towards its products that will aids to grow and sustain into marketplace.
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 Lifestyle firms: These typology is formed for developing the living standard of certain
are individuals where they are operating its activities (Kuckertz, 2013). It performs as per
the workable business model as well as try to maintain competitiveness within local
marketplace.
The relation of entrepreneurship typology with entrepreneurial venture
Various entrepreneurial venture Examples Relation with
Small and private entrepreneurial
venture
Such as corner shop, grocery shop,
hair dressers, plumber, and so on.
Growth typology is
related with the
small and private
entrepreneurial
venture as both are
focused create new
ideas in order to
become successful in
market.
Large entrepreneurial venture It is the profit motive firm such as
NHS, IBM and others.
Lifestyle
entrepreneurship
typology is related
with the large
entrepreneurship as
it is focused to
develop the living
standards of people
though providing
effective products
and services to
customers.
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P2. Explore the similarities and differences between entrepreneurial ventures.
The differences among public, private and social enterprises are mentioned below:
BASIS Private enterprises Public enterprises Social enterprises
Objectives Its objective is to obtain
more profitability
(Maresch and et.al.,
2016).
Its objective is to enhances
as well as accelerate the
economic growth rate.
It objective is to
operate for society
welfare instead of
gaining profitability.
Roles Its roles is to facilitates
employment into
developing country,
provide critical products
or services as well as
contributes to revenues
of tax etc.
The key role of public
enterprise is to enhance the
local job supply.
The role of social
enterprise is to
improve the living
standards of society.
Characteristics Its characteristics are no
participation through
government, controlled
by owned and many
more.
It have well-defined
characteristics like
ownership as well as
control of government etc.
Its main characteristics
are they have
enterprise orientation,
societal aims,
ownerships and others.
Example Firm like Tesco, it is not
govern through central
government and its aim
is to earn profit.
British telecommunication
is the uk public enterprise
that provide mobile
services, broadband and
others.
Oxfam is the best non-
profit firm that works
for social services such
as support the child
education and many
others.
Differences among micro, small and medium.
BASIS Micro Small Medium
Meaning It is an business which This is an business that This is considered as
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have approx £1
million turnover.
generally produce the
turnover in between
£1 million to £ 20
million.
an enterprises whose
turnover is between
£20 million - ££300
million.
Example Spaza shops and
shebeens
For example: orion
tech limited, travel
agents, hair dressers
and others
Example: Walker &
dunlop
Similarities between private, public and social enterprises Customer services oriented: All the enterprises are very much consumers oriented. All
have different customer base but their activities are related to consumer focused. They
give importance to its clients as it measure its potential for assuring effective consumer
services (Meyer and et.al., 201). Opportunities for staff growth: All three enterprises facilitates opportunities for career
growth. They support the staff growth which leads towards their satisfaction as well as
retention.
 Open to change: With technology as well as personnel are changing day by day, this is
great to view that all three are open to change. It is fact that for modification in respect of
technology, changing is the path through which the enterprise grow. So, the openness to
modify is essential for organisational development.
Similarities among micro, small and medium enterprises
 All the enterprises generate employment and help s in economic growth.
 Also, all are focused to sustain into competitive market for the longer duration.
TASK2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro business are refers as the firms whose annual sales as well as assets valued is less
than $ 250000/ year and have some staff involving owners. It is considered as the sub category
of small business and formed into a variety of industries. Where as small enterprise are generally
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the privately owned firms, partnership which have more workers in comparison to micro and less
annual revenue than common sized company.
Impact of SME's upon economy Local impact: Both micro and small ventures possess effects directly upon local economy
as this operates its activities at local market place. As per the analysis, these company
gives employment opportunities for local individuals of society for making them
comfortable as well as allow them to live its life without any complexities. Regional impact: SME's posses effects upon localised economy as it facilitate
employment opportunities for regional public in order to remove unemployment from
this level (Nakara, Benmoussa and Jaouen, 2012.). Moreover, its also, affects positively
upon regional economy as it has efficacious as well as proficient staff who facilitate its
more contribution into organisational wealth that indirectly helpful for the regional
economy enhancement.
 National impact: SME's has impact upon national economy as its presence is huge into
United Kingdom as well as about 15 million individuals are employed through these
businesses that states optimistic effects of that company upon country's economic
enhancement. These enterprise are formed depending upon the creative ideas because of
which they can grow into market place anytime (Ogundele, Akingbade and Akinlabi,
2012). By considering these growth they can facilitate more tax responsibilities that will
automatically more towards economic improvement in all over country.
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Interpretation: According to the above graph, it have been analysed that the percentage
of micro business is 18.9 and small is 23.4% which is more than the micro enterprises.
Moreover, medium is 29.2% that is greater than small business. As the business is the growing
their impacts is also more upon economy.
As per the above data, this have been analysed that SME's plays a crucial role into United
Kingdom economy. Within respective country, this is find that there are about 5.7 million SME's
that involves private firm 99% and are accountable for innovative employment opportunities
within UK because this includes 60% of whole private firms jobs. Due to this it is considered as
the backbone of respective country economy. SME's are developing around 2 million
employment since year 2010 as well as responsible for 73% of gross private firms employments.
 Within United Kingdom, there is about 5 million SME's that include 60% of private jobs.
 SME's are accountable for the respective economy growth through developing around 2
million employment opportunities into respective nation.
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Illustration 1: Impact of SMEs on economy.
Source: Brexit’s impact on small businesses: the experts may be spot on after all.

According to the above information, it has been analysed that SME'S has great effects
upon respective country economy through developing several employment opportunities. These
enterprise are considered as the one of the effective reasons for respective nation economic
growth.
 Small enterprises accounted for 99.3% of whole private business at initial of year 2016 as
well as 99.9% are SME's.
 Overall jobs into SME's was about 15.7 million, 60% of whole jobs into private sector
within UK.
 The interrelated annual turnover of small and medium size was around £1.8 trillion, 47%
of private sector turnover into United Kingdom.
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Illustration 2: The Role of Start-ups and Small Businesses in Today’s Economy
(Source: The Role of Start-ups and Small Businesses in Today’s Economy.
2018)

P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Start up as well as small business are refers as the backbone of country as it produce
revenue as well as job opportunities for their people. These are supported through respective
company government in context of subsidy loans or start up as these provide more employment
opportunities, enhance the living standard and so on. Some significance of these enterprises into
economy are discussed below:
 Develop standard of living: Both small enterprise as well as start up are essential for
country as they support people who are living in society for enhancing its standard of
living by facilitating the effective goods at reasonable cost. It will not only accomplish
the requirements of local people but also increase its living standards.
 Economic Development: Both enterprises plays crucial role into economic development
of country as it formed job opportunities for local people that enhance the rate of per
capita of the nation. Moreover, it also utilises less natural resources like energy and
others which states its contribution into economic development of country.
The differences between medium and large business:
Medium business Large business
 It is managed through owners as well as
professionals.
 It is focused upon consumer base
market.
 It is managed through professional
management.
 They mainly concentrates upon diverse
marketplace with drive customers.
The SME's is leading speedy that concentrates upon growing economy. According to the
research from business studies department, there is start of 99.9% of 5.7 million company into
United Kingdom are small and medium enterprises. It aids to enhance business as wll as
facilitate employment opportunity within marketplace. They have facilitated 60% of private
industry within UK that is total of 16.3 million. All the figures have enhance from last data.
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TASK 3 and TASK 4
Covered in PPT
CONCLUSION
From the above report it have been concluded that entrepreneurship plays crucial role in
improving enterprise by themselves into competitive market area. This considered as the
capability of brining creative products according to the consumers requirements for sustaining
for long period. Also, there are specific enterprise which are helpful in operating ventures in
effective way. An entrepreneur required to has specific characteristics traits and skills which are
significant and make them different from another business manager.
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REFERENCES
Books and Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Fatoki, O., 2014. The entrepreneurial intention of undergraduate students in South Africa: The
influences of entrepreneurship education and previous work experience. Mediterranean
Journal of Social Sciences. 5(7). p.294.
Gabadeen, W. O. and Raimi, L., 2012. Management of entrepreneurship education in Nigerian
higher institutions: Issues, challenges and way forward. Abuja International Journal Of
Education And Management Sciences (ABIJEMS). 2. pp.1-26.
Kuckertz, A., 2013. Entrepreneurship education–status quo and prospective
developments. Journal of entrepreneurship education. 16. pp.59-71.
Maresch, D. and et.al., 2016. The impact of entrepreneurship education on the entrepreneurial
intention of students in science and engineering versus business studies university
programs. Technological forecasting and social change. 104. pp.172-179.
Meyer, M. and et.al., 2014. Origin and emergence of entrepreneurship as a research
field. Scientometrics. 98(1). pp.473-485.
Nakara, W. A., Benmoussa, F. Z. and Jaouen, A., 2012. Entrepreneurship and social media
marketing: evidence from French small business. International Journal of
Entrepreneurship and Small Business. 16(4). pp.386-405.
Ogundele, O. J. K., Akingbade, W. A. and Akinlabi, H. B., 2012. Entrepreneurship training and
education as strategic tools for poverty alleviation in Nigeria. American International
Journal of Contemporary Research. 2(1). pp.148-156.
Ramadani, V. and et.al., 2015. The context of Islamic entrepreneurship and business: Concept,
principles and perspectives. International Journal of Business and Globalisation. 15(3).
pp.244-261.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Sullivan, D. M. and Meek, W. R., 2012. Gender and entrepreneurship: a review and process
model. Journal of Managerial Psychology. 27(5). pp.428-458.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
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