Entrepreneurship Research and UK Economy

This assignment provides a comprehensive overview of entrepreneurship research, including topics such as strategic entrepreneurship, international entrepreneurship, social entrepreneurship, and sustainable entrepreneurship. It also delves into the significance of small businesses in the UK economy, highlighting their contributions to the country's GDP and importance post-Brexit. The document includes various references and sources, offering insights into entrepreneurship education, research methodologies, and the role of entrepreneurship in shaping the UK economy.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Present a various kind of entrepreneurial venture and its linkage with typology of
entrepreneurship..........................................................................................................................1
P2 Illustrate similarities and dissimilarities between various types of entrepreneurial ventures.
.....................................................................................................................................................2
P3 Impact of micro and small business on economy..................................................................4
P4 Contribution of small businesses and start ups on economy after Brexit..............................5
P6. The entrepreneurial personality reflect entrepreneurial motivation and mindset.................8
P7. Background and experience can hinder or foster entrepreneurship......................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship can be defined as ability of an individual to take and bear risks for the
purpose of economic gains. Person who performs entrepreneurship is called an entrepreneur
which undertakes this in order to earn more profits. Reason behind undertaken such endeavours
is to pursue self employment which implies to become self dependent and sole owner of profit
earned. (BaronTang, 2011) This report basically focuses on Entrepreneurship and small business
management, in which various types of entrepreneurial ventures and their relations from
different typologies has been described. Main motive of this project is to know scope of
entrepreneurship and barriers come in way of entrepreneurship so that they can be reduced.
This basically has been depicted with the help of story of 2 different successful
entrepreneurs in which their traits and characteristics has been defined and later on based on that
research,it has been examined that how background and experience can hinder and foster growth.
TASK 1
P1 Present a various kind of entrepreneurial venture and its linkage with typology of
entrepreneurship
Entrepreneur : It is person who undertakes business and ownership of the firm with the
objective of making a profit. They are the person who identifies an opportunity in the market and
provide a product and service to satisfy that need of the customer.
Entrepreneurship : It is the process undertaken by an entrepreneur to start and operate
own new businesses. The capacity and willingness of generating ,organising ,developing a
business venture with the risk in order to make long term profit. (Drucker, 2014)
Entrepreneurial venture : It is defined as an organisation under which innovation and
creativity take place in order to add value in the product for the benefit of the customer.
Originator of entrepreneurial venture always want to innovate , grow and develop.
Different kinds of entrepreneurial are described below :
Social entrepreneurship : An individual who work for providing cheaper and qualitative
product and services is social entrepreneur. They want to provide the commodity which can
solve the needs and wants of the society. With their business they want to create a better society
which has no discrimination and injustice due to different earning capacity.

Large scale entrepreneurship : They started their business with large amount of money
and resources such as infrastructure, techniques and human resources. These enterprise have the
capability to make changes in their working according to customer needs and wants. Large
companies are the one who have very strong base in respect of skills and capabilities due to
which they able to bring innovation and new products which differentiating from their
competitors.
Small scale entrepreneurship : These are the entrepreneur who start their business with
a small amount and resources such as land and labour. Small scale entrepreneur grocery stores,
plumber ,electrician, hairdresser, general stores, tour and travel firms and many more. They
started their firm in order to give their life right direction.
Typology of entrepreneurship are described below :
Female entrepreneur : These are individual who have feminist value , attitude which they use
in achieving business goal. They always concern how will they get involved in the
welfare of the women. To make this dream successful they get attached to various
programs and schemes. (GeorgeBock2011)
Male entrepreneur : They are individual who does not believe in building relationship at work
as they consider professional life and personal life should be separate. Their aim is to
take the organisation at such place where there competitors are not present.
Lifestyle entrepreneur : They are the one who started a business firm in order to satisfy their
dream or passion. Lifestyle entrepreneur want to earn more and more profit so that they
can make changes in their standard of living.
Serial entrepreneur : A serial entrepreneur have various ideas in their mind which they
continuously used in order to bring new businesses into reality. These are the
entrepreneur who started a new business only after getting success in the previous idea.
P2 Illustrate similarities and dissimilarities between various types of entrepreneurial ventures.
Compare serial entrepreneur and lifestyle entrepreneur
Basis Serial entrepreneur Lifestyle entrepreneur
Similarities It require huge amount of
money as the entrepreneur to
Whereas lifestyle entrepreneur
also needed large amount as
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switching form one idea to
another to bring it into
existence. (Hittalet, 2011)
the business start up cost.
Dissimilarities  They are person who
comes with various
type of innovative idea
and use one idea to
create a business than
gave responsibility to
some other business
person in order bring
more ideas into
existence.
 They wish to earn large
amount of profit so that
it can support in
bringing new business
in external
environment.
 They does not remain
with their business
physically and
mentally, when their
company needed to
understand the core
idea or in adverse
situation.
 It was started by an
individual for making
changes in their
lifestyle not earning
profit. (Jones, Coviello
and Tang, 2011)
 These entrepreneur
always remain with
their company in order
to support them in the
adverse situation.
 They want to earn
money so that it help
them in making
changes in the life.
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Compare female entrepreneur and male entrepreneur
Basis Male entrepreneur Female entrepreneur
Similarities  Men entrepreneur also
manage all the things
involve in the
production of goods
and delivering of
services.
 Women entrepreneur
arrange all factors of
production, take risk
and work for the
welfare of society
people.
Dissimilarities  Male entrepreneur
indicate towards the
male who start,
organise and carry their
own business. (Karlan,
Valdivia, 2011)
 They always want to
achieve the desired
result from any tactics
and the method.
 Male entrepreneur
always adopt financial
risk in their working.
 Female entrepreneur
indicate towards female
or group of females
who organise and
manage their business
venture
 They perform the work
for the achievement of
their target through
using correct way and
techniques.
 Sometime, Female
entrepreneur hesitate to
take financial risk ion
their business.
P3 Impact of micro and small business on economy
Small and micro businesses can be said as backbone of economy because they are the one
who provides and generate employment opportunities on a wide range to mass and providing
new markets to people. They are expected to make new innovations in traditions and bring fresh
ideas to implement there. Micro business owners are from variety of backgrounds and have their
own reasons to pursue self-employment opportunities. Actually, they give people the opportunity

to achieve financial assistance, encourage innovation and create or build employment
opportunities. Small and micro businesses are critical to economic growth as they are succeeded
in building up new opportunities to people as keep motivating them to innovate, boost up their
morale and make confident them.
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Economic Growth: Small and micro businesses contribute by bringing growth and
innovation in economies in which they exist. They believe in attracting people who have talents
to innovate and grow. On the other hand, large sized businesses can also have major benefits
from micro businesses as they have to depend on small businesses for completion of various
business functions such as small business can pool talents through outsourcing. (Kirzner, 2015)
This can give direct benefit to economies in form of valued talents which can bring larger
innovations with higher profits. Small businesses are good for UK of which they represent 99.9
per cent of businesses. (The importance of small businesses in the UK economy, 2018).
Small and micro businesses tend to respond and adapt easily to changing and dynamic
environments because they are more customer oriented as compared to larger businesses. In fact,
in phase of economic crisis, many customers remain loyal to them as consumers know that micro
businesses will always take care of them. One more benefit for small and micro businesses is that
as they earn lesser comparatively and hence they have less earnings to lose in phase of economic
crisis. Since small businesses demands new innovations in working systems so it contributes to
economy in larger because today's era is of new ways of doing tasks. This can be categorized on
the basis of; there are 99.9 % of small businesses in UK economy. Total employment of small
businesses is 16.1 million. Turnover of Small businesses is 1.9 trillion.
P4 Contribution of small businesses and start ups on economy after Brexit
Brexit: Brexit stands for Britain Exit. Basically, Brexit referred to the situation in which
UK has withdrawn from European Union
There is larger contributions of small businesses and start ups over economy because they
create and bring growth and employment opportunities to economy by adding new innovations
in businesses. Because start ups which are having high innovations with them, they have growth
rates in 3 major areas; product, process and wider innovation. They are continuing to grow in UK
even after Brexit. Brexit was the big decision for UK economy as they decided to leave
European Union (Kuratko, 2016). That had given advantage to UK in form of they can prohibit
free flow of people form European Union and that was the reason that people of UK had voted
for Brexit. Because after that UK followed tax rules without following European Union
guidelines.
Irrespective of industry, expansion and size, UK small businesses and start ups has been
affected by Brexit. Small and micro businesses make up 99.9 businesses in the UK. Impacts was
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firstly, after Brexit UK's economy was changing rapidly. As a result, infrastructure of UK was
increasing day by day with increased FDI. Since it brought new innovations in UK economy,
standard of living of people was also raising.
Opportunity for SME growth post Brexit is higher and hence given proper investment. It
was estimated that there will be more supply chains added to UK economy and it will create
more than 500,000 lakh jobs by 2025. for example, in car industry suppliers of UK will capture a
bigger market share and that will reduce trade deficit of UK. One more contributions of small
businesses and start ups is that it has been forecasted that they are going to hit 217 billion to UK
economy by 2020 (Lopez-Gomez C., 2018). Research has been conducted and was found that
UK economy will grow by 11 per cent from 2015 to 2020 (SME contributions forecast to hit
£217 billion to UK economy, 2018). It was recognized that there is a major contribution of small
businesses and start ups in success of UK economy and industry. As there was new innovations
in markets, they created employment opportunities for people who was not employed by larger
corporations. But start ups always seek for creativity and hence pool talents from talented and
skilled people. As part of this, it resulted in social development as they teach new things and
ways hence raised standard of living. After Brexit, it was forecasted that SME's contributions
will hit UK economy to new heights. As in, Leeds and Manchester are forecasted to be grow by
15 per cent. Impacts of start ups on social economy are:
 Reduction in poverty: Poverty will be reduced to some extent when start ups will
start employing people.
 Wealth Distribution: Wealth distribution will start to improve.
 Infrastructure.
 Social Amenities.
Professional and administrative services such as legal and accountancy firms, will foster
growth of small businesses and start ups. Apart from this, wholesale, retail, public
administration, education and health, are also playing crucial role in driving development of
SME's. (Neck, Greene, 2011)
P5. The characteristics, traits and skills of two successful entrepreneurs and their differentiation
from other business managers
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Entrepreneur is an individual set up a small business with innovative ideas taking
financial risk with a hope for profit. Some most known entrepreneurs in the world are Steve
Jobs, Henry Ford, Jeff Bezos and many more. (Parker, 2018)
Henry Ford: Henry Ford was an American business magnet, founder of Ford Motor Company,
as well as sponsor of development of assembly line technique of mass production and known as
captain of industry for so long. He was born in Greenfield township, Michigan in July, 1863 and
completed his journey of life in April, 1947.
Jeff Bezos: Jeffrey Preston Bezos is an American technology business person, investor, and
philanthropist, and best known as founder, chairman and CEO of Amazon. Jeff was born in
January, 1964 in Albuquerque, New Mexico. He raised in Texas and founded Amazon in late
1994 in New York city. The company was started from online book store and currently expanded
as the world's largest online sales company as well as biggest provider of cloud infrastructure
services globally (Santos, 2012).
Characteristics of successful entrepreneur:
Criticism: Henry and Jeff Bezos both welcome and stay prepared to take criticism and
accept them openly to differentiate themselves from competitors which also improve customer
satisfaction. Other business managers do not accept criticism openly.
Self-Belief- Henry truly believed in his concept and product, which pushes his
passion to next level and encourages him, whereas Jeff any ways believe in his idea as well as
services he was dealing in. other business managers believe only in success of product.
Dream big: Henry Ford and Jeff Bezos always have big plan and beyond the reality
vision, and dream to fulfil it by ignoring errors and complications. CEO's dream for overall
organisation's success and growth whereas managers do not dream for the organisation they only
demand success.
Risk taking: Ford and Bezos welcomes risk as white-out taking risk they would
never become successful. Risk is a path way to beyond the reality visions. Entrepreneurs
welcome risks whereas business managers avoid risks.
Traits of successful entrepreneur:
Encourage feedback- Jeff and Henry play adaptable to feedback and criticisms. They
listen their users feedback and adopt necessary improvements. This is done to improve customer
satisfaction and expand market share. Employees and customers both are welcome to give
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suggestions and feedback for improvement whereas a business manager do not take feedback so
openly.
Value their employees: A whole organisation contribute in its success and growth from
the top level to lower level of members. A successful entrepreneur knows that a single person is
unable to run a successful business (Sarasvathy Venkataraman, 2011). Thus to become
successful CEOs Henry Ford and Jeff Bezos both have trust and believe for their employees as
well as product of their company. A business manager do not easily trust their employees.
Zeal: Every entrepreneur have some passion to something different and hope for its profit
too. Being a successful entrepreneur Henry and Jeff struggled to change their planning into
success whereas managers make the work done from others to earn success for organisation.
(Schaper, et.al, 2014)
Skills of successful entrepreneur:
Critical thinking- Entrepreneurs like Henry and Jeff are great innovators as well as their
level of critical thinking during routine problems and issues is appreciative. Generally managers
are not critical thinkers and challenge acceptors.
Interpersonal Skills: To stand differentiated and successful entrepreneur like Henry and
Jeff, effective interpersonal and communication skills act as a key to success. These skills help to
encourage employees and customers. The managers do not interact to encourage, they only
assign work.
Problem-solving: Henry Ford and Jeff Bezos have open minds and different perceptions
towards problem or obstacles. They passionately follow their dreams and solve problems
occurring into it. Managers avoid problems in business.
P6. The entrepreneurial personality reflect entrepreneurial motivation and mindset.
Entrepreneurial personality is made up of many qualities like decision making, long term
vision, risk taking, communication and much more to run own business successfully. In
motivating and encouraging innovative mindsets these qualities of a successful entrepreneur play
a great role as following:
The entrepreneurial personalities promote and support innovation and innovative
mindsets to bring a difference in world. A successful entrepreneurial personalities also support
innovative ideas and new minds by giving vision to them for not to make money but to make
meaning with their ideas. Successful entrepreneurs always carries passion and zeal for their
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interests and ideas, no matter how much would it take to get succeeded. Entrepreneurs learn
from their mistakes and failures. These mistakes may disappoint them but do not harm their
passion to get successful. The entrepreneurial qualities like taking feedback and critics positively
will help entrepreneurs to become successful amongst their followers and customers, as it
increases customer satisfaction and help to serve them with better quality (Scarborough, 2016).
To become a successful entrepreneur, and to encourage more innovative mindsets, a person must
believe in their plan and dream big for their success. They must focus to fulfil their dreams to set
a successful business with innovative ideas. To become a successful entrepreneur, effective
entrepreneurial skills are advantageous as it helps in motivation of new entrepreneurs as well as
employees and customers of the company. Thus to motivate and encourage new entrepreneur
these skills and qualities of successful personalities plays a great role. (Schaltegger, Wagner,
2011)
P7. Background and experience can hinder or foster entrepreneurship.
Sara Treleaven Blakely, is an American businesswoman and a founder of spanx, an
American Apparel. She has also worked with Disney group for around three months and she
joined a sales company where she performs door to door sales of fax machines. Sara got
positively influenced with her bad experience in hot summers as she has to wear her uniform
with seamed foot while wearing open-toed shoes, and forced to wear pantyhose to make her
body look firm and also eliminate panty lines. Thus she invented spanx and lead this business to
extended level. With this practical example it can be identified that experience contributes
positively to fostering of entrepreneurship in an individual. On the other hand when an
entrepreneur enters into market with less practical knowledge and information and their initial
experience is bad in market, it influence them negatively and they may leave their idea or
business opportunities (Wiklundetal, 2011).
Walt Disney, a famous cartoonist and successful entrepreneur in animation industry was
positively affected by his many failures and accepted them as challenge for him. These failure
experiences of Walt Disney made him more determined and guided him to people who changed
the world gain success in his dreams. On contrary, those entrepreneurs who face a failure or get
unsuccessful due to lack of information, knowledge or market experience may become
disappointed and leave that task or field. This is may happen due to less of education, financial
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issues or poor family inheritance. Thus it creates low motivation and less risk taking in them
which force them to leave their idea of entrepreneurship.
CONCLUSION
From the above discussion, is has been concluded that Entrepreneurship is very crucial
for economic growth and development. This study is all about importance of entrepreneurship in
which that has been explained with the help of practical examples and research to examine
different types of entrepreneurial ventures with their similarities and differences. Furthermore,
research has been conducted to illustrate in how many ways micro and small business can impact
on economy, after Brexit. This whole study focuses on importance of entrepreneurship and small
business so that innovations can be made in organizations.
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REFERENCES
Books and Journals-
Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing, 26(1), pp.49-60.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice, 35(1), pp.83-111.
Hitt, M. A and et. al., 2011. Strategic entrepreneurship: creating value for individuals,
organizations, and society. Academy of management perspectives, 25(2), pp.57-75.
Jones, M. V., Coviello, N. and Tang, Y. K., 2011. International entrepreneurship research (1989–
2009): a domain ontology and thematic analysis. Journal of business venturing, 26(6),
pp.632-659.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics, 93(2), pp.510-
527.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management, 49(1), pp.55-70.
Parker, S. C., 2018. The economics of entrepreneurship. Cambridge University Press.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics,
111(3), pp.335-351.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice, 35(1), pp.113-135.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment, 20(4),
pp.222-237.
Schaper, M. T and et. al., 2014. Entrepreneurship and small business.
Wiklund, J and et. al., 2011. The future of entrepreneurship research. Entrepreneurship Theory
and Practice, 35(1), pp.1-9.
Online
SME contributions forecast to hit £217 billion to UK economy. 2018. [Online]. Available
through:<https://smallbusiness.co.uk/sme-contributions-forecast-217billion-2534943/>
Lopez-Gomez C., 2018. The UK’s post-Brexit economy hinges on small businesses and
innovation. [Online]. Available through:<https://theconversation.com/the-uks-post-
brexit-economy-hinges-on-small-businesses-and-innovation-80649>

The importance of small businesses in the UK economy. 2018. [Online]. Available
through:<https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-
economy-2492626>
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