(PDF) Entrepreneurship & Small Business Management : Assignment

Entrepreneurship
and small business
management
Types of entrepreneurial ventures
Entrepreneur: These are the individual who runs and forms
their own business by using their innovative thinking and
capabilities. They provide their products and services to the
customers for earning profit and revenue. The business concept
is linked with the selling of products and services which are
purchased by the customers for fulfilling their needs and
requirements. Entrepreneurs setup their business for achieving
high profit and revenue. For achieving this high profit and
revenue, they contributes their maximum efforts for executing
the business functions in an effective and efficient manner
(Barringer, 2015). The high profit and revenue is possible
when the entrepreneurs develop suitable and effective plans and
strategies for gaining the success in the upcoming time period.
The business started by these entrepreneurs are called as the
ventures. These ventures consist of different size, scope and
purpose and runs by the single entrepreneur or group of
entrepreneurs. These small start-ups can achieve success and
growth in a short amount of time when the entrepreneurs of
such businesses have innovative ideas which varies with the
existing businesses. New and improved products and services
can easily grab the attention of the customers which also brings
the motivation in the individuals to enter in the market with
their innovative ideas and resources.

These different types of entrepreneurial ventures are discussed
below:
 Small business entrepreneurship: These businesses are
operated at a small scale independently by the
entrepreneurs. The revenue or profit generation of such
businesses relies on the industry in which they are
operating. The earning of these businesses is small due
to operating at low level. These businesses includes
Grocery stores, travel agencies, etc.
 Large company entrepreneurship: These businesses are
operated at large scale due to which they needs huge
amount of resources in order to smoothly run the
business operations (Baum, Frese and Baron, 2014).
These businesses provides new and improved products
to the consumers for their satisfaction as the trends and
demand of the consumers is dynamic in nature and
changes with time.
 Social entrepreneurship: These types of ventures are
formed for providing new and innovative products and
services to their customers. Through the new and
innovative products, these firms desires to satisfy the
needs and demands of their customers. These firms also
contributes to the growth and development of economy
in which their business operations are running.
Typologies of Entrepreneurship
These above discussed different types of ventures are
directly linked with the typologies of entrepreneurship which
is discussed below:
 Male: This typology of entrepreneurship states that
the male can operate the business operations
effectively rather than the females. This typology also
restricts the females to take any part in the decision-
making process of the organisation.
 Female: This typology states that the number of
females in the working sector is high than males. This
is because, females are more patient then their
counterparts due to which they can run the business
more smoothly.
 Managed growth: This typology states that the male
and female should work in equal ratio in an
organisation for accomplishing the desired success
and growth in predetermined time period (Bhachu,
2017). These should work mutually for taking the
better and improved decisions for the company.

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There are various similarities and difference between the different types of ventures which has been discussed below:
Differences
Basis Small business Large company Social entrepreneurship
Definition These are the small scale
businesses which also
needs small amount of
money and resources to
operate.
These businesses are developed for providing new
products which can fulfil their dynamic demand and
needs of the customers accordingly.
These businesses are formed for converting the innovative
ideas in the products and services which can meet the demand
of the society.
Objectives The objectives of such
businesses is to earn their
livelihood by providing
their products and services.
The objective of such firms is to meet the demand and
requirements of their customers for ensuring their
satisfaction.
Objectives of such business is to develop the economy in
which they are operating. These businesses work for the
social welfare instead of making money.
Characteri
stics
These needs small amount
of resources and
government interference
for effectively providing
their products and services.
It is a continuous process which changes with the
needs and demands of the customers as the customer
preferences are dynamic in nature.
These has the support from the government as they are
working for the welfare and development of the economy and
people.
Roles The role of such firms is to
use the existing resources
for earning profit.
The role of such firms is to help the customers in
getting the quality based products which can enhance
their level of satisfaction.
The role of such firms is to create awareness among the public
regarding the healthy and safety products.

Apart from these differences, there are several similarities also
which are discussed below:
 These ventures are formed for meeting the needs and
requirements of the customers for ensuring their
satisfaction.
 These ventures are formed for providing new and
innovative products and service which can satisfy the
demands of their targeted people (Bridge and O'Neill,
2012).
 These ventures are formed by the entrepreneurs for
converting their innovative ideas into business.
 These ventures has common aim of gaining growth and
success in the market within the pre-determined period
of time.
Interpretation and assessment of relevant data
Micro and small business are the backbone of UK economy.
They plays a major role in the development and growth of
UK's economy. These both provides their maximum
contribution in the growth of economy by increasing the job
opportunities, tax revenue etc. which will also positively
impact the UK. These positively impact the economy of a
nation in which they are operating. Small and micro business
organisations contributes to the development and growth of
the economy as well as to enhance the national income on the
country (Carsrud and Brännback, 2011). These business
enterprises are performing their business functions and
operations in an country for overcoming the issues such as
decreased national income, fluctuation in inflation and
deflation rate etc. Successful businesses are helpful for
making a economy more stronger. Small business operates at
low level due to which they get less affected by the economic
issues. Whereas economic changes highly affect the large
organisations or businesses due to operating at big scale.
Small and micro businesses are also helpful for a country in
determining the solutions of issues of economy. The SME's
are doing their business with less resources, workers and
ideas but still they assist an economy in growing faster.
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This impact can be understood by the following graphs:
Illustration 1: Average profits of the SMEs in different sectors
in UK from 2015 to 2017
Impact of micro and small business on the UK economy
From the above shown graph it is clear that the among the
wholesale &retail, hotel & restaurants, high level of profit is found in
manufacturing sector. Make it work is a global consultancy firm which is
generating high amount of profit and revenue which also provides tax
revenue to the government of UK (Small Business Statistics, 2018).
Turnover: Turnover of small business firms is also a
leading factor which contributes to the UK economy. From the
above graph, it is evident that the average turnover of micro and
small business in UK was £1.6 trillion and it is increasing every
year.
Employment generation: SME firms of UK generate
huge amount of employment opportunities for the people living
in UK. The new business require labour or employees which is
necessary for running the business. These SME's provides job to
the potential employees which solves the problem of
unemployment in the country. Also these firms pay taxes which
is enhancing the national income.
Infrastructure development: Small and micro business
are helpful in the growth and development of a country's
economy as they contributes in increasing the national income.
This increased income can be used by the legal authorities of
UK for the development of infrastructure such as schools, roads
and bridges (Chrisman and et. al., 2012).
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High flow of cash: Small and micro business are also helpful in
increasing the cash flow in a country. This because when any
business launches in a country then it will circulate more
amount of money or cash for the country. This cash then can be
utilised by the government for strengthening the economy or
development of the infrastructure of a country.
Illustration 2: Impact of micro and small business on economy
From the above chart, it is clear that the small and micro
organisations are increasing the job employment in the
country. Through these increased job opportunities, the
economic growth and development can develop faster. Small
business are contributing 40% in the employment
enhancement of UK which is a positive impact of these
businesses (Impact of micro and small business on economy,
2018).

Importance of small businesses and business start
ups to the growth of social economy
Social economy consist of various firms, organisations,
associations, Start-ups etc. These are very helpful for the
growth of social economy. The government needs to support
these small businesses and start-ups so that these can deal with
the economic changes and challenges. These business
contributes in increasing the revenues of the country so that the
government can develop the economy. Small scale and start up
businesses are less effected by the economic changes due to
operating at low scale. The government of any country needs to
develop their social economy for resolving the issues and
problems which are adversely impacting the country. Small and
start up businesses provides job opportunities to the local
people which is also important for the country in developing
their country (Dees, 2017). Small and micro businesses plays
an essential role in the development and growth of social as
they provides numerous advantages to the economy in which
they are working. These advantages includes increased jobs, tax
revenue to the government etc. The importance of small
business in the growth of social economy is given below:
Job opportunities: When the small and micro businesses are
opened in a country, they needs human resources for running
their business. Due to this, job opportunities in that particular
region increases as the employees are required by these firms.
This is beneficial for the social economy as the life standard
of people will also increase when they are provided with the
Jobs. Also these firms pay tax which increases the national
income and ultimately support the economy at all levels.
Increasing awareness: The SME's and start-ups can
face problems in running their business due to the less
awareness among the public. When people are aware of these
businesses, then their sales and profit will increase which will
also increase the tax revenue of the government (Dennis Jr,
2011). Due to the increase in revenue, government can use
the money for the development of local, national or regional
economy.