Entrepreneurship and Small Business Management in UK Assignment Solved

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT
Executive summary
This report is based on entrepreneurship and management of small business. In this
report, different entrepreneurial ventures and typologies are discussed along with similarities and

differences in these ventures. Beside this, impact of SMEs on economy of UK and contribution
of start-ups in social economy is discussed, other than that different skills, traits and
characteristic of entrepreneur are included and role of background & education in creating a
successful entrepreneur is carried out.
This report will help in understanding about different ventures like small, large or social
businesses. Also, different statistics and facts of SME will benefits in understanding the role and
contribution of SMEs in generating a strong economy in UK. With proper background and
eduction a person can became a successful businessman.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation with entrepreneurial typology
................................................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................2
TASK 2............................................................................................................................................4
P3 Interpret and assesses data and statistics to illustrate impact of small and micro businesses
on economy............................................................................................................................4
P4 Importance of small businesses and starts-ups to growth of social economy...................5
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
(Covered in PPT)....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is defined as the process of running and managing a new business
venture so that high revenues and good profit can be achieved. These profit and revenue benefits
an individual to lead a healthy and happy life. Entrepreneurs are those persons which generates
new ideas to create services and products in a more efficient way (Barringer, 2015). This
assignment is written in context with entrepreneurship and management associated with small
businesses. This assignment will cover various types of entrepreneurial ventures and types of
entrepreneurship. Beside this, differences and similarities in entrepreneurial ventures are
discussed. Also, statistics and data is mentioned to acknowledge the impact of SMEs on UK.
Beside this, importance of small businesses and starts-ups in UK economy is discussed.
Characteristics, skills and trait of entrepreneur along with their mindset and motivation is
discussed. At last, role of experience and background in hindering or fostering entrepreneurship
is discussed.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with entrepreneurial typology
Entrepreneur is an individual which owns, runs and manage a business with appropriate
plan and limited resources. Different rewards and risks related with business are bear by
entrepreneur only. Entrepreneurial ventures are those business firms which mainly focus on
innovation so that high opportunities can be attained. There are various entrepreneurial ventures
that have different type, size, scope and characteristics. Small business are those entrepreneurial
ventures which require less capital, man power and other business resources. As these businesses
operates at small level but posses high operational strength, they are capable to earn high
revenues and profit margins. (Bridge and O'Neill, 2012). In case of scope, these are narrow
businesses and their size is small. These businesses are managed under partnership or
proprietorship and have less than 50 employees. Net revenue of these businesses is around 2
million pounds. For ex, Clarasys.
Large business are that kind of business ventures which are operated at high level and
offer numerous services and goods to their customers. In case of scope, size, operation or
activities, these businesses have no limitations and have wider scope. As these businesses offer
high quality products to their consumers, these organisations enjoys high revenues and
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profitability. To manage these businesses, heavy investment and skilled labour is required. Some
of these businesses also operates at global level. For example, ALDI, TESCO, M&S etc. Social
enterprises business organisations are run and managed to offer development and welfare to
individuals at local and national level. Main aim of these organisations is to satisfy the desires
and needs of common people. These organisations have high scope and manage business
operations with the help of government. These organisation are not work with profit motive and
highly contribute towards infrastructural development and social economy of UK. For example,
Oxfam, save the children etc.
Typologies of entrepreneurship
There are various typologies of entrepreneurship and some of these typologies are
defined in this topic. Lifestyle Enterprise are operated to fulfil the needs and desires of local
people in genuine rates. These businesses offer large number of job opportunities to common
people due to which unemployment rates also decreases. Due to this, living standard of people
increases and they do not face financial issues. This typology came under social business
ventures and managed to provide welfare to people at local and regional level (Burns and
Dewhurst, 2016). In Growth firms business operations are managed with the objective to earn
high profits and revenues. Entrepreneur running these businesses generate new ideas so that
productivity of company can increase in a considerable manner. Due to these concepts and ideas,
desires of people are fulfilled properly. These firms can either be a small business or large
business.
P2 Similarities and differences between entrepreneurial ventures
Above discussed entrepreneurial ventures posses some differences and similarities that
are discussed beneath:
Differences in various entrepreneurial ventures
Basis Small business Large company Social entrepreneurship
Scale These businesses are
operated at small level
and need less investment
These kind of
businesses are operated
at large scale. To
These businesses operates
at regional and local level.
Here, investment and
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and finance to run
business operations.
manage these businesses
high capital and funds
are needed.
funds are arranged by
government.
Purpose Purpose of these
businesses is to earn
livelihood (Dees, 2017).
Their main purpose is to
earn high profits so that
competitive advantage
within market can be
enjoyed.
Purpose to operate these
businesses is to offer
welfare and support to
citizens in UK.
Characteristics These organisations
needed limited
investment and business
resources. And, these
companies faces less
government intervention.
This kind of business
need heavy capital and
resources to manage
business activities. As
they operate at global
level, government
intervention is high.
To manage business
operations, funds are
invested by government
and these companies
began as governmental
organisations.
Similarities between various entrepreneurial businesses
Basis Small business Large business Social enterprise
Meeting needs These businesses are
started to satisfy
personal needs like high
revenues as well as
requirement of local
customers.
These companies work so
that demands and
expectations of
consumers can be
fulfilled in a proper
manner.
Demands and needs of
local people are given
consideration so that
they can live a good life.
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Society
upliftment
It offer job opportunities
to people at local level
due to which they have
disposable income.
These business provides
job opportunities to
individuals at national
and international level. It
will helps them in living a
good life.
These businesses offers
good quality services
and products to people
so that they can live a
comfortable life.
TASK 2
P3 Interpret and assesses data and statistics to illustrate impact of small and micro businesses on
economy
Small and micro businesses have a major role in the growth and development of UK
economy. These companies offer taxes to the national government which benefits in
infrastructural development at national level. Majorly, there are three kind of businesses which
are discussed properly. Small scale organisations hire less than 50 employees to perform their
business operations. Their total revenue is less than 5 million. These businesses influence social
and economic development at small scale and offer employment opportunities to people at local
level. Medium scale These businesses hire employees between 50 to 250. Their total revenue is
more than 5 million but less than 22 million pounds. Medium firms offer job opportunities to
people at national level. Large scale organisations operates at high level and hire 250 people or
more than that . They earn revenue high than 22 million pounds. These companies impacts the
economic development as they offer job to people at national and international level.
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(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Impact of SME on economy
SME have a direct impact on local economy in UK as they offer good products and
services to the people. They meet the needs of citizens in a desired manner. These business
generates huge employment opportunities so that people can earn good living standard. From
above discussed graph, it is shown that SMEs contribute in 60% employment generation. SME
have a positive influence on regional economy due to high employment offers. This helps in
reducing unemployment and poverty due to which people lives a healthy life. Due to taxes pay
by them, government imitated infrastructural projects to provide welfare to people. Near about
99% businesses in UK are operating at small scale and provide huge economic support. At
national level, these SMEs are paying taxes which is used by government to provide better life
to UK individuals. Employment generated by these SMEs is around 16 million which is equal to
60% of total private sector employment (The Role of Start-ups and Small Businesses in Today’s
Economy).
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Illustration 1: Role of Start-ups and Small Businesses

P4 Importance of small businesses and starts-ups to growth of social economy
Start-ups and small businesses offer high growth to social economy. In context with UK,
their importance are mentioned below:
SME generates job opportunities to people so that they can earn a healthy livelihood.
Due to this, people in UK have disposable income and unemployment rate of nation decreases.
Due to more employment, poverty in UK will be less and society will be able to sustain a
comfortable life. Small businesses and start-ups hire both skilled and unskilled people according
to the work and capabilities. Due to this, living standard of society as a whole enhances and
people posses high purchasing power. This will help people in living a life with improved living
standard. These business assists in economic growth of nation, due to which condition of
society improves. Without small businesses, unemployment rate in UK will be high. These
business innovate new ideas due to which people in UK enjoy high quality goods and services in
genuine prices (Julien, 2018).
TASK 3
(Covered in PPT)
TASK 4
(Covered in PPT)
CONCLUSION
From the above report, it is concluded that there are different of entrepreneurial ventures
present in industry that are differ from each other on various aspect like their size & scope,
investment etc. Along with this typologies of an entrepreneur is also included that relates with
entrepreneurial venture. In developed countries small and micro business perform as backbone
for the industry by providing employment to the society and increasing monetary transaction in a
country. Several characteristics, traits are discussed that reflect the personality and mind set of
entrepreneurs such as passion and leadership skill that differ them from an individual.
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REFERENCES
Books and Journals
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new frontiers.
Journal of Small Business Management. 49(1). pp.55-70.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.eck,
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship.
CRC Press.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
Journal of Management. 26(4). pp.582-595.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
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>
UK small business statistics. 2018. [Online]. Available through:<https://www.fsb.org.uk/media-
centre/small-business-statistics>
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