Entrepreneurship and Small Business Management

This assignment report explores different range of business ventures, assesses the impact of SMEs on the economy, discusses the skills and traits of entrepreneurs, and more. It focuses on the subject of Entrepreneurship and Small Business Management.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT
Table of Contents

INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explore about different range of business ventures that can be considered entrepreneurial 4
P2 Mention similarity and differences in ventures of entrepreneurship ....................................4
TASK 2............................................................................................................................................4
P3 Assess and interpret about relevant statistics and data to show impact of SMEs on
economy .....................................................................................................................................4
P4 Discuss the importance of SMEs in growth of social economy ...........................................4
TASK 3............................................................................................................................................4
P5 Mention the skills, characteristics and traits of entrepreneurs that differentiate them from
managers.....................................................................................................................................4
P6 Mention how aspects of entrepreneurs personality reflects about entrepreneurial mindset
and motivation ............................................................................................................................4
TASK 4............................................................................................................................................4
P7 Discuss how background and experience of a person can foster or hinder entrepreneurship
.....................................................................................................................................................4
CONCLUSION................................................................................................................................4

INTRODUCTION
Entrepreneurship is defined as the procedure to establish a new organisation and bearing
all the risks associated with it so that maximised revenues can be earned. In general terms, it is
an activity in which production and investment opportunities are seek so that business venture
can be managed in a profitable manner (Bakeman and Hanson, 2012). This assignment report is
based on New London Cafe which is a UK based local business offering breakfasts, burgers and
organic coffees to their customers. This cafe is present in London, UK and operates at very small
level. This report is going to mention about distinct range and types of business ventures along
with their typology. Also, differences in these ventures will be carried out. Interpretation and
statistics are discussed to mention impact of SME on business and social economy. Also,
information about different characteristics and traits of entrepreneur, entrepreneurial personality
is mentioned. At last, role of experience and background in hindering or fostering
entrepreneurship is discussed.
TASK 1
P1 Explore about different range of business ventures that can be considered entrepreneurial
Entrepreneurship is described as the willingness of an individual to start, run and manage
a new business so that high revenues and profits can be earned. These businesses are prone to
more risks due to their unpredictable nature. Ventures of entrepreneurship can either be small,
medium or large sized (Bridge and O'Neill, 2012). Activities involved in these businesses all a
business person to earn decent revenues so that standardised life can be earned. Various type of
business ventures in this respect are stated below:
Different type of business venture
Small business: These businesses require less amount of money, equipment and
workforce to manage their business. Due to this, size and scope of these businesses is limited and
they operates at local level only. These firms offer services or products at genuine price and
employs less than 50 employee. They works either on individual or partnership basis. Income of
these businesses is around 2 million pounds on annual basis. For example, New London Cafe,
Rowlinson Knitwear.
Large businesses: These type of business needs heavy investment, workers and
resources to perform their business operations. Their size and scope is wide and these businesses

operate only at large scale. These firms provide branded and standardised products to their
customers which are moderately and highly priced. These firms operate at global level. For
instance, Zara, H&M, Ford motors.
Social enterprise: This type of enterprises are opened up to provide services and welfare
to needy people. These companies operates at both local and national level with the aim to
provide basic amenities to the residents of a place. Due to this, their size depends upon their
business activities and their scope is large (Burrows, 2015 ). They do not earn profits and their
revenues are invested in providing good life to needy people. For example, OXFAM, Save The
Children etc.
Entrepreneurial typologies
Business ventures associated with entrepreneurship involves various typologies which are
stated below:
 Lifestyle enterprises: These businesses are run and set up by business persons with the
motive of earning specific level of income. These firms have limited potential to grow
and their scalability is less due to their business motives of earning particular income.
These firms can either be a small business or social business depending on its activities.
For example, Trouva.
 Growth enterprises: These businesses are operated to earn high profits and sales so that
a luxuries life can be spend without any financial worries. Growth firm are either small or
large in size but their main aim is to gain competitive advantage over rivals. This will
helps them in sustaining strong presence in marketplace. For example, New London Cafe
and M&S (Epifanova and et. al., 2015).
P2 Mention similarity and differences in different ventures of entrepreneurship
Business ventures either of small size, large size or a social enterprises have some
similarities and differences among them. These similarities denotes their willingness to succeed
their business and their differences states about their different aims and objectives. Information
in this context is stated below:
Similarities in different business ventures
 Meeting the requirements of people: Main aim of different business ventures is to fulfil
the needs and demands of people. Small businesses, large businesses and social

businesses performs their business activities at national or international level so that
requirements of customers can be fulfilled without any compromise.
 Provide employment opportunities: Another similarity in different ventures of business
is that they provide job opportunities to people either at local, regional or national level.
Due to these businesses, employment ratio in UK is high and people living there spends
an independent life (Erasmus, Strydom and Rudansky-Kloppers, 2016).
Differences among business ventures
Basis Small business Large company Social
entrepreneurship
Scale and
purpose
They operates at small
scale and their main
purpose is to earn
specific amount so that
standardised life can be
enjoyed (Galloway,
Kapasi and Sang,
2015).
These firms operate at
high scale and their
purpose is to achieve
maximised profits to
became market leader in
their respective field.
These firms can either
operate at low or high
scale, depending on
their ability to serve
customers. Purpose of
these businesses is to
provide help and
services to common
people.
Characteristics These firms require
limited funds and
resources to operate
their business.
These companies need
large amount of finances
and expensive
equipments to perform
their business.
These firms are funded
by government due to
which they do not face
shortage of funds while
running business.
TASK 2
P3 Assess and interpret about relevant statistics and data to show impact of SMEs on economy
SMEs plays a vital role in stabilising the economy of UK. After Brexit, government
provide high support to these companies so that they can run their business activities in a
comfortable manner. Different sized businesses are mentioned below:

Particular Number of Employees Total Assets Annual Sales
Micro Enterprise <12 ≤ £2.5 m ≤ £2 m
Small Enterprises <60 ≤ £12m ≤ £09 m
Medium Enterprises <280 ≤ £55 m ≤ £47 m
 Micro business: These companies operate at small level and posses very limited scope.
These companies employs less than 12 employees and perform business activities to earn
genuine profits and income so that a comfortable life can be spend. For example, New
London Cafe.
 Small business: These organisations have less limited growth and scope but their size is
bigger than small businesses. These businesses employs around 60 workers and their
annual income is approx 9 million pounds. Main aim of these business is to expand their
business to earn high revenues. For example, Rowlinson Knitwear (Heinonen, Hytti and
Stenholm, 2011).
 Medium business: These firms are of average size and employs workers more than 60
and less than 280. They earn revenues up to 47 million pounds and operates different
branches within a nation. These companies are struggling hard to became large scale
businesses.
 Large business: These organisations needs heavy investment and large number of
workforce to manage their business. More than 280 workers work in these companies and
annual income of these companies is more than 50 million pounds. Aim of these
companies is to sustain strong presence in global manner. For example, M&S.
Important statistics of SMEs
 In 2019, there are approx 5.8 millions of small business in UK where growth rate of
private sector is 3.5% as compared to previous year results.
 SMEs accounts for 99.3% of total businesses which are operating in UK.
 Small and medium sized enterprises provide employment to around 16.6 million people
and their annual turnover is 2.2 trillion pounds.

Impact of SMEs on economy of UK at regional, national and international level
Illustration 1: Role of start-up and small business in UK
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
 Local impact: These firms provide job opportunities to local people due to which they
are able to earn good income and spend their livelihood in a comfortable manner. These
bushiness benefits people of a locality to remain unaffected from changing economic
environment of a region.
 Regional impact: These businesses have considerable impact on the regional economy
of UK. SMEs provide employment to 60% of UK population which allow them to spend
their income on different commodities without any financial pressure. 47% of total
turnover is earned by SMEs by performing their activities (Henry, Foss and Ahl, 2016).
 National impact: After Brexit, large businesses faces a heavy set back and due to the
presence of SMEs, economy in UK stabilises itself. This shows the impact of SMEs on
UK and its economy. These firms provide job opportunities and product or services to
people at national level due to which employment rate of overall country is high. Taxes

given by these firms are used by UK government for infrastructural development (Role of
Start-up and small business).
P4 Discuss the importance of SMEs in growth of social economy
Advantages of small and medium enterprises to the overall growth of social economy in
UK is discussed below:
 Job creation: SMEs helps in creating jobs and employment for the residents of a nation
due to which people in UK are able to earn disposable income. These firms operates at
local and regional level due to which individual residing at a place do not face difficulty
in getting job with good salary. This is the reason employment rate in UK is high.
 Increased living standard: Due to working of SMEs, people in UK are earning
disposable income. This allow them to enjoy a good living standard without
compromising with their needs and requirements (Hodges and et. al., 2015).
 High economic growth: SMEs are significant in attaining economic growth of UK. By
innovating new services or products, these companies earn high revenues due to which
they pay more taxes to government. These taxes are used by government in opening up
school, colleges and for other infrastructural activities.
TASK 3
P5 Mention the skills, characteristics and traits of entrepreneurs that differentiate them from
managers
There are number of successful entrepreneurs which are having some common skills and
characteristics with the help of which they achieve huge success in business world. Orpah
Winfrey, Alan Sugar and Alfie Deyes are more successful entrepreneurs who has an ability and
sufficient skills to create new and innovative ideas which can bring their respective business
ahead than their competitors. Here are some shared entrepreneurial skills, traits and
characteristics:
Skills:
 Decision making: Orpah Winfrey, Alan Sugar and Alfie Deyes are having a good
decision making skills which help their respective businesses to achieve huge
sustainability in competitive business world. Taking corrective actions to deal with

complexities of business environment facilitate them to make their business more
successful. Problem solving: There are number of issues which can be faced by an organisation
while operating their respective businesses. These issues include conflicts among
employees, changing customers’ needs and preferences etc. Orpah Winfrey and other
entrepreneurs are having such skill which assist them to resolve these kinds of issues that
brings complexities in growth of their businesses and achieve further growth and success
(Malecki, 2018).
Traits:
 Confident: Orpah Winfrey, Alfie Deyes and Alan Sugar are more confident about their
idea and the decision they made for future growth and success. This will result positively
and makes their respective businesses more successful. Disciplined: Sugar, Alfie Deyes and Winfrey are more disciplined and keeps their
personal and professional life separate. Following pre-determined rules and regulations
without facing any interruptions makes these entrepreneurs more successful.
Characteristics:
 Passionate: Alan Sugar, Alfie Deyes and Orpah Winfrey set their target and goals
before entering into market and put their maximum efforts to achieve the same within
limited time period. This characteristic of being passionate towards goals makes easy for
them to achieve growth and success in business profession (Ramadani, Gerguri-Rashiti
and Fayolle, 2015).
 Risk taking: It is an essential skill that must be present in an individual which makes
them more successful in market within less time period. Market contains lots of
complexities which brings the sustainability of entrepreneur’s business into danger thus
taking risk with using their past experiences will help in getting fruitful result in near
future. Winfrey, Alan Sugar and Deyes are such entrepreneurs who are not afraid to take
risk and took decision on the basis of their past experiences and knowledge which makes
positive impact on their sustainability and profitability of business.

Differentiation of characteristics of successful entrepreneurs with business manager:
Characteristics/skills Entrepreneur Business managers
Strategic vision Entrepreneurs have a clear
vision of bringing new and
innovative products which are
never introduced earlier in the
market. For example, Orpah
Winfrey has a clear vision to
execute their business idea in
market which results positively
on their business
sustainability.
Manager is a follower of
vision set by top authority due
to which they only responsible
to make plans and strategies to
manage resources to achieve
desired division within pre-
determined time frame (Rauch
and Hulsink, 2015).
Communication An entrepreneur is responsible
to communicate their new and
innovative ideas to their
investors and customers. This
requires an effective
communication skill through
which they can influence
interested parties to their
business in positive manner.
The manager also must have a
communication skill which
needed in communicating
company’s vision, mission and
strategies to their employees in
understandable manner.
Allotment of roles and
responsibilities to workforce
requires this kind of skill to be
present in a manager.
Critical thinking Entrepreneur generates new
and innovative ideas which
help them in differentiating its
business than their rivals in
market. Entrepreneur creates
new ideas which makes them
Manager mainly focuses on
maintaining healthy work
environment which brings
motivation among staff to
work hard and contribute more
towards company’s goals and

different from others. For
example, Alan Sugar firstly
invented the first
manufacturing venture was
underway in 1970.
objectives. It increases the
loyalty and commitment of
employees with an
organisation (Renko, Shrader
and Simon, 2012).
P6 Mention how aspects of entrepreneurs personality reflects about entrepreneurial mindset and
motivation
To became a successful entrepreneur, a person is needed some skills, characteristics and
traits. These aspects benefits a person in increasing their mindset and capabilities. To define the
entrepreneurial motivation of business persons, OCEAN model is stated below:
 Openness: This factor is linked with the innovative ideas and thoughts of a person which
helps them in over-passing other people. Openness helps Winfrey, Sugar and Deyes in
communicating their ideas and other decisions with other employees of company in a
clear manner. Due to this, they are able to gain high productivity and tackle
organizational challenges in a proper manner.
 Conscientiousness: This is concerned with the dependability and adaptability so that
organizational goals can be attained efficiently. If entrepreneurs like Orpah Winfrey,
Alfie Deyes and Alan Sugar will not have this aspect then their effectiveness while
performing work will reduce (Short and et. al., 2010).
 Extroversion: It denotes that entrepreneurs are required to be confident, lively, social
and more intractable so that they can generate new ideas to complex situations while
communicating with different people. This will help concerned entrepreneurs in
sustaining strong relation with their staff members.
 Agreeableness: This shows that entrepreneurs like Alan Sugar, Alfie Deyes and Orpah
Winfrey must have the quality to agree with other people and their opinions. This will
allow them to understand the perspective of other people more clearly and appropriate
working environment will be maintained at their workplace.
 Neuroticism: This aspect is concerned with stress, dread, desire, jealousy, nervousness
and other elements that can disrupt working environment of a company. Entrepreneurs

such as Orpah Winfrey, Alan Sugar and Alfie Deyes are needed to avoid such aspects so
that they can guide and train their workforce in confident manner.
TASK 4
P7 Discuss how background and experience of a person can foster or hinder entrepreneurship
Background and experience of an individual helps them in either becoming a successful
entrepreneur or hinders their capability to manage business efficiently. Background and
experience of selected local, national and international entrepreneur is mentioned below:
Alan Sugar (National entrepreneur)
Background and experience: Alan sugar is a Britain based Magnate, political advisor,
politician and media personality which started his career in 1968 and expand his businesses at a
market leader in UK. Sugar belongs to a Jewish family where his father works as a tailor. His
financial background was weak due to which Sugar was forced to work part time at grocery
store. At age of 16, sugar also worked for Minister of Education to earn money. These hardships
make him confident and passionate due to which sugar has a good political career. He became a
celebrity and author with net income of 1.04 billion pounds in 2015 (Vaghely and Julien, 2010).
Alfie Deyes (Local entrepreneur)
Background and experience: At the age of 23 years, this entrepreneur build an online
empire by launching a YouTube channel named “Pointless Blog” in 2009. in 2014, his first book
named Pointless book was published. Childhood and financial status of Deyes was good, due to
which Deyes do not face much hardships and completed his education from varndean school and
college in London. Appropriate learning and growth environment benefits Deyes in becoming
successful at this little age.
Orpah Winfrey
Background and experience: Winfrey is an American actress, media executive, talk
show host, philanthropist and television producer which has a net worth of 270 Crores USD.
Orpah was born in a poor family and raised by her unmarried mother. Her mother was a
housemaid and her biological father was a coal miner turned council man. She spends 6 years of
her life in rural poverty. In childhood, she was molested by her relatives and became pregnant at
age of 14 years. Her child died due to premature birth. She decided to suicide many times but she
gain courage to sort out her life. These hardships motivate her to achieve more in life and she

won a beauty pageant at the age of 17. later on she stated her career in media and television and
works in some films also. These difficulties hinder her way to became successful but her
confidence and trust in herself helps her in overcoming all these challenges and becoming a
global success (Walsh and Cunningham, 2016).
CONCLUSION
As per this given report, it can be said that entrepreneurship is associated with opening up
a new business with a special motive. Different kind of entrepreneurial ventures are small
business, large business and social businesses. These firms have some similarities and
differences in them. SMEs impact Social economy of UK in a positive manner. Different
characteristics like passion, versatility differentiate entrepreneurs from business managers. Good
background and experiences fosters entrepreneurship in a person.

REFERENCES
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Online
UK Small Business Statistics, 2019. [Online]. Avaialble through: <https://www.fsb.org.uk/media-
centre/small-business-statistics/>
Role of Start-up and small business. 2017.[online]. Available through:<https://www.market-
inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-uk/>