Small Business and Entrepreneurship in UK Social Economy

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of entrepreneurial ventures and their relation with typology of entrepreneurship......1
P2. Similarities and differences between entrepreneurial ventures.............................................3
TASK 2............................................................................................................................................6
P3. Statistical data evidences on how micro and small businesses impact on UK’s economy.. .6
P4. Contribution of small businesses and start-ups to the growth of social economy after
Brexit............................................................................................................................................9
TASK 3..........................................................................................................................................11
P5. Mini research to determine characteristics, traits and skills of two successful
entrepreneurs, which differentiate them from other business managers ...................................11
P6. Aspects of entrepreneurial personality that reflect entrepreneurial motivation and mind-set
....................................................................................................................................................13
TASK 4..........................................................................................................................................14
P7. Background and experience which may hinder or foster entrepreneurship........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneur is an individual who owns a small business, manages employees and tolerates
risks with an aim of earning profits and meeting customer’s needs. Entrepreneurship is the
process of planning, introducing and operating a new small business (Zelekha, Yaakobi and
Avnimelech, 2018). Small businesses are independently or privately owned as well as operated
firms, which have limited size, employees and revenue depending on the industry. The report on
entrepreneurship and small business management explores and illustrates range of
entrepreneurial ventures and assesses impact of small business on UK’s economy. It will also
study and determine the main aspects of entrepreneurial mind-sets and different environments
that foster or hinder entrepreneurship.
TASK 1
P1. Types of entrepreneurial ventures and their relation with typology of entrepreneurship
The typology of entrepreneurs based on previous occupational backgrounds ( Ryu and
Kim, 2018). Thus, It defines the capacity and willingness to develop, organise and manage the
business venture on it risk so that profitability can be enhanced. He is the individual person who
works as to undertakes the creation, organisation, ownership and risk of business. Thus, the
typologies has been discussed in below contexted manner as-
Scalable start up entrepreneurship: These are the measurable start ups that are been set
by an entrepreneur with a vision and mission statement of providing high quality services to
their customers. They have a good approach of investors and venture capitalists that will help in
generations a good amount of revenue for a nation. They operate within a cluster and attract
almost all the risk factors as well as good amount of benefits that will help in effective expansion
of business operations. The profit or revenue generated by them is utilized for expansion purpose
by the firm.
Large business / established companies / Scalable enterprises: These are large
businesses, which are setup with the motive of earning huge profits by way of creating long-term
goals with proper planning. This kind of entrepreneurship consists of several owners and
shareholders or investors and funds for operating business is obtained through venture capital,
angel funding, bank loans etc. It is a recognized firm or entrepreneurship that employs more than
1

500 people with the goal of generating substantial revenue and profit for company and its
shareholders (Rana and Nipa, 2019).
Small business entrepreneurship: This is an independently owned and managed for
profit enterprise with a goal of growing into a long-term business that is profitable and
sustainable (Nikolaou, Tasopoulou and Tsagarakis, 2018 ). It is a start-up commercial enterprise,
which comprises of small firms that hire family members or local employees for operating
business activities with fewer resources and investment. Street food vendors, Restaurants, Retail
stores, Construction firms, Agriculture etc. are some examples of such kind of entrepreneurship.
Social entrepreneurship: they are known as the voluntary firm and thus, improves the
overall operations and action plans within an organisation that works for the betterment and
goodwill of people. Their major aim is to improve living condition of their customers. The
profit generated is been used to carry out more extensive research and develop high quality
products.
Typology of entrepreneurship
Social good organizations / businesses: It is a business built on innovative solutions and
desires to make the world a better place with a goal to maximize impact in a sustainable way.
This kind of entrepreneurial venture is setup with the aim of providing services to improve the
lives and solve health as well as social issues. NGO’s, Non-profit organizations etc. are such
kind of entrepreneurship (Frederick, O'Connor and Kuratko, 2018). Capital is generated through
donations, charities and investments done by individuals or organizations that would like to
contribute towards the society.
Serial entrepreneurship: These free enterprise's comes up with new ideas and starts
businesses ad success is measured by the duration over the operations. This is an opposition to
an entrepreneur who starts single business and runs daily operations of it until retirement.
Female entrepreneurship: This is the process where women organizes all factors of
production, bears risks and provide employment to others in the society. Female
entrepreneurship makes significant contributions to the economic growth and to poverty
reduction.
Conclusion
Hence, It can be concluded that types of entrepreneurial ventures and entrepreneurship is
closely related as it helps to drive out the operations which are been taken in consideration by
2

the firm. The good approaches works as to set up suitable entrepreneurial venture and expand
their business operations. Thus, it can be concluded that entrepreneurial practices are very
diversifying and becomes more complex at the astounding rate.
P2. Similarities and differences between entrepreneurial ventures
Similarities between entrepreneurial ventures:
 Entrepreneurial ventures are established with a purpose of generating profits by
performing business activities such as providing good and services to customers.
 Every business involves risks, which are inevitable (Aquino, Lück and Schänzel, 2018).
 Process of raising funds or capital are almost similar in every entrepreneurial ventures
which usually consists of personal savings, bank loans, government grants, borrowings
from financial institutions, family or friends etc.
 The main success behind every business enterprise is its talented and skilled employees
who works towards success and achieving goals of the business.
 All entrepreneurs have capabilities and skills to setup their respective business
organization by implementing the acquired knowledge, competencies and experiences.
Difference between entrepreneurial ventures:
Basis of
compariso
n
Micro
entrepreneurship
Small
entrepreneurship
Medium
entrepreneurship
Large
entrepreneurship
Meaning It is a small
business started
with a minor
amount of
capital, which is
specialized in
rendering goods
and services for
their local areas.
This is a firm,
which is owned
and managed
solely by an
individual, which
has a limited size
and revenue with
an annual
turnover of more
than 75crores.
This type of
business is seen
as small and
medium sized
business, which
have an annual
turnover not
exceeding 50
million
(Ahmadian and
Abdolmaleki,
2018).
Large
entrepreneurship
is an organization
or business,
which is set up
with defined
goals and has an
annual turnover
more than 1.5
billion.
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Scope It is a low
income generated
entrepreneurial
venture with very
little possibility
(Ahmadian and
Abdolmaleki,
2018 Aquino,
Lück and
Schänzel, 2018
Frederick,
O'Connor and
Kuratko, 2018).
Small
entrepreneurship
ventures have
low or moderate
scope as
entrepreneurs
may earn high
revenues and
profits in future.
It has a fair scope
of growth as the
business already
generates good
amounts of
profits, which
can be used for
developments.
These
entrepreneurial
ventures have a
huge scope of
advancement and
can expand at the
same time while
earning enormous
profits.
Goals Micro
entrepreneurship
have short term
goals due to
which less
planning is
required.
These enterprises
have short to
medium goals or
plans according
to the necessities.
Medium
entrepreneurial
ventures makes
long-term goals
with proper
planning.
Large enterprises
have long-term
goals or targets,
which are formed
through accurate
strategic
planning.
Profits These enterprises
earn ample
profits, which is
enough to
support a living
for the
entrepreneur.
These ventures
produces
moderate amount
of profits through
revenues.
Medium
entrepreneurial
ventures makes
reasonable
amounts of
profits.
Large enterprises
generates huge
profits, which are
distributed among
the shareholders
proportionally
(Spigel and
Harrison, 2018).
Risks Due to small or
limited business
operations, the
Small
entrepreneurship
involves low or
Medium
entrepreneurial
ventures
Large
entrepreneurial
ventures consists
4