Entrepreneurship and Small Business Impact

The assignment analyzes how entrepreneurship and small businesses contribute to employment, community welfare, and profit options for entrepreneurs. It highlights the critical impact of enterprises on overall economic growth and concludes that government support is essential for promoting prosperity and business growth.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Entrepreneurial ventures and their relation with typology .........................................................1
Comparison between different entrepreneurial ventures ...........................................................2
Scope, growth and development of entrepreneurial ventures ....................................................2
TASK 2............................................................................................................................................3
Impact of small business on different levels of economy ..........................................................3
Comparing the impact of medium, large and small business on economy ................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Entrepreneurial activities are defined as the process to create the economic ventures
which is capable to generate profits by making initiatives and mitigating risks (Storey, 2016).
The report will discuss the types of entrepreneurial ventures and their development within
Redbridge London Borough council. It will also analyse the role of small businesses on
economy.
TASK 1
A. Entrepreneurial ventures and their relation with typology
According to Aparicio, Urbano and Audretsch, (2016), entrepreneurship is defined as the
capability to manage and develop business ventures through innovations and creation of value.
Enterprise explore the opportunities where investments can be turned into profits and services by
minimizing the failure risks. The entrepreneurs are different from intrapreneurs who works
within a large organisation and assure to bring innovation for improving the quality of services.
Contrary to this entrepreneurs manages and set up their own start ups or business with by their
own initiative and resources.
The entrepreneurship involves more risks as compare to the intrapreneurship because in
later the risks are bear by organisation instead of an individual as in case of entrepreneurship.
The entrepreneur ventures aims at innovations and profitability. The key venture typologies
which can be used by Redbridge council are lifestyle ventures, survival ventures, aggressive and
managed growth ventures. Lifestyle ventures are aimed at making stable profits by minimizing
the risks while the survival ventures are considered as necessity to survive within market
(Bjørnskov and Foss, 2016).
For instance for many retailers like Marks & Spencer, Tesco it becomes vital to explore
their service via online platform so that they can survive within competition. These ventures can
vary in size and create employment and growth opportunities for borough along with the profits
for the entrepreneur. For instance One of the most dominating entrepreneurial activity which
assures the success of enterprise is the ability to predict the risks and future trends for growth.
For instance entrepreneurs identify the needs of market and introduces the new products and
service which can generate values (What is Entrepreneurship? Entrepreneur Definition and
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Meaning. 2018). Similarly these professionals regularly monitor the market trends and needs and
make purchasing and selling decisions on the basis of those needs (Chell and et.al., 2016).
Comparison between different entrepreneurial ventures
Entrepreneurial ventures can be classified as social, private and public ventures. They can
be compared as below:
Private ventures: This type of enterprises are set up with the objective of making huge profits by
exploring business opportunities. They are solely organised by the individual entrepreneurs or by
the joint ventures of groups or organisations. For instance the Sainsbury UK is the supermarket
chain and is completely regulated by the private authorities. The size of this type of ventures can
vary. It may be small, medium or large. Within this structure the surplus and strategies are
controlled by entrepreneur only.
Public venture: Another type of entrepreneur venture is public which is financed and supported
by the government. The key objective of these ventures is to enhance the public welfare by
providing them quality services and products (Acs and et.al., 2018). For example entrepreneurs
who desires to establish the health care start ups can get support from the National Health service
(NHS). Usually these ventures are medium or large sized because with government support they
aim to provide services to public with suitable balancing with their profit goals.
Social ventures: The social enterprises have completely different objectives than the other two
types. These ventures can also vary in various size and does not aims for achieving profit. The
objective of social enterprises is to focus on social, environmental and cultural issues which can
improve the community welfare. This type of venture helps entrepreneurs to have more
innovative and realistic application of business strategies. For instance the old age care homes or
the charity organisations who helps to eliminate the poverty among people are examples of such
ventures.
Scope, growth and development of entrepreneurial ventures
With the growing population and unemployment the entrepreneurs can be considered as
the an effective way to enhance the employment opportunities as well as the net productivity.
Instead of following the regular methods of seeking the employment majority of young groups
are using innovative approaches and entrepreneurship (Stuetzer and et.al., 2018). With the
concept of entrepreneurship it is possible for the individuals and communities to earn huge
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profits as well as to serve the communities by means of public or social enterprise. Many types
of social and public entrepreneurship projects provides employment opportunities to people.
When such new initiatives will be opened within Redbridge council then local
communities will be able to have earning opportunities. It is also possible that initially the start
ups may not have sufficient funds to expand the project at large level but gradually with the
support of government agencies and local communities the entrepreneurs can grow their business
from small to large size organisation (Burns, 2016). The emergence of globalisation and digital
technology trends have encouraged the vast growth opportunities for the new entrepreneurs. The
improved leadership approach, management support and entrepreneur skills can help new
initiatives to grow effectively among highly competitive large sized organisations. Further to
sustain the growth it is also vital for the SMEs to conduct detailed market research and needs of
the local communities of their operational region.
For instance when Marks & Spencer initiated its business in UK its started with only a
limited range of products and within few locations of UK only. However with increasing role of
technology currently Marks & Spencer is not limited to UK instead its stores are available in
different parts of world as well. Thus with the era of digital technology the entrepreneurs are
getting huge support in terms of knowledge, technology and resources. It assures that currently
there are wide opportunities for the new initiatives and entrepreneurs can explore the huge
profits by using existing resources (Hatten, 2015).
B. Impact of small business on different levels of economy
Despite the low turnover of small enterprises as compare to large and medium enterprise
the SMEs can be considered as the backbone for the development of national economy.
According to Taylor., (2015) almost 99% business is small or medium sized thus the major
proportion of the economic value is originated from these SMEs. Hence these small
organisations can be considered as of great importance for the national economy. From regional
as well as national economy perspective the huge employment opportunities are provided by
these small enterprises.
As per the 2016 statistics the 60% of total employment in private sector is provided by
SMEs which accounts for 15.7 million jobs. Despite of small size these organisations are
providing jobs to millions of people (Business population estimates for the UK and regions.
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2016). The development of SMEs is also helpful for the growth of regional economy. Since these
enterprises explores the regional resources the local dealers and suppliers also gets benefits from
the new business opportunities. The advanced technology and high quality of services and
innovations are also making it possible for the SME to participate in export activities. However
as compare to the large enterprises SMEs have a very small proportion of the export material.
The SMEs represent only 3% of the export sales out of its total manufacturing (Trading up: The
benefits of exporting for small firms. 2017). The networking and technology advancements are
providing great options to SMEs so that they can increase their contribution in international
markets.
Comparing the impact of medium, large and small business on economy
In terms of employment the small business are leading medium and large companies.
Though their turnover is less than large size organisations but their employment rate is more than
other two organisations.
(Source: Business population estimates for the UK and regions, 2016)
Contrary to the medium and large enterprise SMEs also have great impact on socio economy. It
is quite complex to manage and deal with the social issues and drawbacks by complex structure
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Illustration 1: Comparison of small, medium and large enterprises

of large enterprises. However since SMEs entrepreneurs are well aware of the local economy,
needs and cultural and social trends they can best serve the social issues in the region. The public
ventures are the best example for such type of objective (Taylor., 2015). The community health
in several areas of Redbridge council is improved by the joint ventures supported by NHS. The
small size of business also make it possible for the entrepreneurs to have better understanding of
the social concern.
TASK 2
Covered in PPT
CONCLUSION
From the above discussion it can be concluded that entrepreneurship can be used in
different ventures and sectors. These initiatives enhances the employment, community welfare as
well as the profit options to the entrepreneurs. It has been also analysed from the above study
that enterprises are not only significant from the benefits of individuals or groups but they also
have critical impact on overall growth of economy. Thus it can be concluded that government
and local authorities must support and encourage such entrepreneurs so that more prosperity and
business growth can be achieved.
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REFERENCES
Books and Journals
Acs, Z.J. and et.al., 2018. Entrepreneurship, institutional economics, and economic growth: an
ecosystem perspective. Small Business Economics. 51(2). pp.501-514.
Aparicio, S., Urbano, D. and Audretsch, D., 2016. Institutional factors, opportunity
entrepreneurship and economic growth: Panel data evidence. Technological Forecasting
and Social Change. 102. pp.45-61.
Bjørnskov, C. and Foss, N.J., 2016. Institutions, entrepreneurship, and economic growth: what
do we know and what do we still need to know?. Academy of Management
Perspectives. 30(3). pp.292-315.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chell, E. and et.al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics. 133(4). pp.619-625.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
Stuetzer, M. and et.al., 2018. Entrepreneurship culture, knowledge spillovers and the growth of
regions. Regional Studies. 52(5). pp.608-618.
Online
Business population estimates for the UK and regions. 2016. [Online]. Accessed through
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/559219/bpe_2016_statistical_release.pdf>
Taylor., D., 2015. SME's XL contribution to the UK economy. [Online]. Accessed through
<https://www.clearbooks.co.uk/blog/smes-xl-contribution-to-the-uk-economy/>
Trading up: The benefits of exporting for small firms. 2017. [Online]. Accessed through
<https://www.theigc.org/reader/trading-benefits-exporting-small-firms/>

What is Entrepreneurship? Entrepreneur Definition and Meaning. 2018. [Online]. Accessed
through <https://www.oberlo.in/blog/what-is-entrepreneurship>
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