Analysis of Entrepreneurship and Small Business Management

The provided document is an analysis of entrepreneurship and small business management based on several research papers and studies. It covers topics such as entrepreneurship education, entrepreneurial intentions, and the role of customer knowledge development in starting informal business ventures. The assignment also explores the relationship between entrepreneurship education and entrepreneurial intentions, and discusses the context of Islamic entrepreneurship and business principles. A bibliography of relevant sources is included.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1 ............................................................................................................................ 3
P1 Various entrepreneurship ventures and their relation to the typology of
entrepreneurship......................................................................................................3
P2 Similarities as well as differences between various business concerns.............5
TASK 2.............................................................................................................................6
P3 Interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy........................................................6
P4. Explanation about importance of small businesses and their contribution to
Brexit........................................................................................................................7
TASK 3.............................................................................................................................9
Covered in PPT....................................................................................................... 9
TASK 4.............................................................................................................................9
Covered in PPT....................................................................................................... 9
CONCLUSION................................................................................................................. 9
REFERENCES ...........................................................................................................................10

INTRODUCTION
Entrepreneurship refers to a process which is related to designing and launching
business activities that help in running a new firm. It will help a individual in pursuing its
own vision in a competitive business environment. An entrepreneur is expected to give
more emphasis on creating something new for its business, which leads in enhancing
its overall performance (Schaper and et. al., 2014). The enterprises of Redbridge(Ilford,
London) are operating their business activities in clothing, restaurants, housing and
others. In this present report, different types of entrepreneurship ventures have been
mentioned along with their relation with various types of entrepreneurship, similarities
and difference between entrepreneurship ventures, the impact of macro and small
business on economy and importance of small business and start-ups on improving
growth of a social economy has been discussed. In addition to this, this report also
contains traits of an entrepreneur which differentiates them from other managers.
Lastly, how the aspect of entrepreneurial personality reflect its motivation and mindset
and various examples of background and experience that hinder or foster
entrepreneurship has also been discussed.
TASK 1
P1 Various entrepreneurship ventures and their relation to the typology of
entrepreneurship
Entrepreneurship is an ability to manage business operations by monitoring risk
involves in order to maximise profitability. There are different types of entrepreneurship
ventures which are discussed below as:
(a) Small business entrepreneurship
This venture of entrepreneurship is managed, controlled and owned by single
person. It includes grocery stores, carpenters, plumbers, electricians etc. They generally
hire local persons or their family members in order to operate their operations effectively
(Burns and Dewhurst, 2016). Most of the small business entrepreneurship is profitable
as it involves less cost of production as compared to other businesses.
(b) Scalable start-up entrepreneurship

In this venture of entrepreneurship, entrepreneurs develops creative and
innovative ideas with a motive to change the business world. They generally looks for
investors, who can invest in their business and take some amount from the profits. In
this context, they hire fresh talents in their organisation in order to gain competitive
advantage is a business environment.
(c) Large company entrepreneurship
Unlike small and start-up entrepreneurship, large company entrepreneurship
focuses on offering new products on a large scale to their potential customers. In this
regard, existing companies acquires innovative companies in order to create new
innovative product in a business environment.
(d) Social entrepreneurship
This entrepreneurship ventures focuses on providing products and services to
their customers in order to solve social needs and issues (Burns, 2016). Their main
motive is to make the world a better place by achieving societal aims and objectives.
In context to entrepreneurship, typology is a term that is used for classification on
the basis of type like structure, form, style etc. There are also some typology related to
entrepreneurship ventures which are discussed below as:
(a) Survival ventures: This entrepreneurship venture is established with a
motive to satisfy needs and wants of entrepreneurs and their families. They have no
relation with banks or other companies. They operate their business operations in a
global market with basic assets as they only wants to satisfy their financial needs. All
the micro-business are covered in this type of typology.
(b) Lifestyle ventures: In this entrepreneurship venture, entrepreneurs operates
their business activities in order to improve their lifestyle. They focuses more on life
rewards rather than making profits. These ventures consist of less numbers of
employees as compared to other entrepreneurship ventures. In this entrepreneurship
typology includes all small enterprises.
(c) Managed growth ventures: This entrepreneurship ventures focuses more
on enhancing overall growth by shifting to new markets, producing innovative products

and by employing new employees in order to achieve stability in growth. In this
entrepreneurship typology includes all the medium sized enterprises.
(b) Aggressive growth ventures: This entrepreneurship ventures are
established at a global level in order enhance their overall growth in a business
environment. They gives emphasis on producing innovative products in order to achieve
exponential growth. In this entrepreneurship typology includes all large business
enterprises.
P2 Similarities as well as differences between various business concerns.
Types of enterprises Similarities Difference
Small vs large
business enterprises
Both large and small
enterprises operate their
business activities in order to
satisfy their needs and
requirement in a business
environment (Mariotti and
Glackin, 2015).
Large business enterprises
involves huge investments
as they want to achieve
exponential growth. On the
other hand, small business
enterprises are established
with a less investment as
they are running their
business operations within
local areas.
Social vs scalable
enterprises
Both social and scalable
enterprise works for providing
best in quality products and
services to their customers.
Social enterprises operate
their business activities with
a motive to satisfy social
needs. On the other hand,
scalable enterprises operate
their business activities with
a motive to make the world a
better place (Sahut and
Peris-Ortiz, 2014).
Lifestyle and survival
entrepreneurial
Both lifestyle and survival
works for earning good amount
Lifestyle entrepreneurial
ventures focuses more on

ventures of money in order to satisfy
their personal needs and
requirement.
life rewards than making
profits. On the other hand,
survival entrepreneurial
ventures works to satisfy
needs of entrepreneurs and
their families.
TASK 2
P3 Interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy
In the modern era, micro and small business organisations generally function
with the motive of providing large benefits to people along with deriving maximum
profitability and revenue from operations across the world. These businesses can be
broadly categorised into small, medium and large enterprises on the basis of certain
criteria explained below:-
Small: These are those business organisations where the number of personnels
does not exceed more than 50 workers. Small business entities emphasize upon
providing services in local areas as often it is observed that these enterprises face
challenge while borrowing money for investment from various financial sources. The
revenue of these companies is less than £5.6m in contrast to other organisations
located in Redbridge.
Medium: These enterprises employ staff between 50 to 249 persons. The
resources available and procured by them are less when compared to large scale
enterprises. In terms of revenue, their figures lie between £5.6m and £22.8m. Medium
business ventures have a higher scope of growth as compared to other small scale
business ventures.
Large: These are those organisations where the number of employees is not
less than 5000 employees at any point of time. The figures of their annual turnover
reflects around £1.36b. Large scale enterprises play an essential role in giving a boost

to the economy of country. Also these business concerns are known for their
sustainable growth and employing large number of people.
Impact of Micro and Small Business Enterprises
Micro and small business organisations are considered to be the backbone of
economy of a country due to the rapid increase in quantum of such entities across the
world. Such enterprises largely give an economic boost to the country by delivering
goods and providing services of consumer use. There are various micro and small
business enterprises in Redbridge, which are giving strong competition to other
business entities in a business market. Also, it is imperative to understand that these
organisations are a large source of employment opportunities as they engage in hiring
such employees which may not be too skilled or experienced. These individuals would
otherwise face difficulties as large entities mainly focus upon hiring competent and
skilled personnel to increase the chances of survival and sustainability of business in
long duration of time.
As per the results of a survey, not less than 5.7 million private sector enterprises
have incorporated their business in the year 2017 and been successfully continuing to
operate the same. A significant increase of 3% has been observed in business activities
since 2016. When statistical data is considered of small business organisations, the
economy has accounted for 99.3% from the beginning of 2017. Besides this, total
number of employees in SMEs were about 13.1 million which is around 60% in United
Kingdom. Therefore, combined annual sales and revenue figures of SMEs operating in
Redbridge in UK has been nearly £1.9 trillion which is around 51% of total turnover of
all private sector enterprises in UK.
P4. Explanation about importance of small businesses and their contribution to Brexit.
“Brexit” refers to the situation in which United Kingdom had left European Union.
On 23rd June 2016 almost 50% citizens has voted in favour of withdrawal and it has
been advocated by Eurosceptics. In this context, 29th March 2019 will possibly the date
on which United Kingdom is completely separated from European Union. The time
between withdrawal date is taken by both United Kingdom and European Union in order
to complete the negotiation process.

Threat of Brexit on United Kingdom: Brexit is a quite important topic which
will create difficulty for UK government as they are not able to take decisions with
freedom. It also effects economic growth of a country in a negative manner. In this
context, it is essential for United Kingdom to make efficient policies in order to promote
small enterprises and start-ups. The difference between small enterprise and start-ups
is discussed below as:
Basis Small Start-ups
Definition Small enterprises are
established at a smaller
scale with less number
employees. These
enterprises are privately
owned and do not have
high sales volume (Ratten,
2014). The revenue of
these companies is less
than £5.6m in contrast to
other organisations located
in Redbridge.
Start-ups are scalable
business enterprise owned
by individuals and
entrepreneurs in order to
make a viable business
model.
Growth rate The growth rate of small
enterprise is less as
compared other enterprises
because there are large
number of competitors in a
business environment. Also
it has been observed that
these business concerns
face an issue related to
funding.
Start-ups have faster growth
rate because of their main
motive is to use innovative
and creative ideas in their
business operations in order
to provide best in quality
products and services to
their potential customers.
Ways of financing Small enterprises are On the other hand, the main

established at a smaller
level with limited turnover
so they can only take
finance from their friends,
family and banks.
motive behind start-ups is to
make the world a better
place by creative and
innovative ideas. They can
take finance from angle
investors and venture
capitalist, which involves
huge risks.
As per the above mentioned scenario, it has been analysed that both small
enterprises and start-ups plays a vital role in improving economic condition of a nation.
It also helps citizen of United Kingdom in getting products and services that satisfy their
needs and requirement. There are various factors which stats that small and start-ups
contributes towards economic growth, which are discussed below as:
(a) Reduction in poverty: The small enterprise and start-ups increases job
opportunities for citizens of United Kingdom, which leads in engaging them in doing
something productive in accordance with their skills and knowledge. In this regard, this
will help people of Redbridge in reducing their poverty level.
(b) Wealth distribution: In this context, small and scalable enterprise also helps
United Kingdom in an appropriate distribution of money as it increases chances for
peoples to earn money (Dees, 2017).
(c) Infrastructure: Small enterprise and start-ups pay taxes to UK government,
which are further used by them in developing road, bridges, schools etc. This will help
small enterprise and start-ups in achieving their societal aims and objectives.
As per the above mentioned report, it has been analysed that small enterprise
and start-up help UK government in improving their economic condition.

TASK 3
Covered in PPT
TASK 4
Covered in PPT
CONCLUSION
From the above mentioned report it has been concluded that entrepreneurship is
an essential function where different entrepreneurs function differently. As per this
report, it has been assessed that every entrepreneurial business entity differs from other
in its area of operations and style of working. Large business concerns in today's world
work with a profit earning motive whereas social business entities deal in providing
goods and services that makes lives of people better and comfortable. Furthermore, it
has been assessed that an individual should have ample amount of skills for successful
business operations. Also, entrepreneurs should imbibe certain qualities which will help
in being a successful entrepreneur. Lastly, this report also says that background and
experience form an essential part of an individuals personality and promotes growth.

REFERENCES
Books & Journals
Schaper and et. al., 2014. Entrepreneurship and small business.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management.
Pearson.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and
entrepreneurship. Small Business Economics. 42(4). pp.663-668.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on
entrepreneurial attitudes and intention: Hysteresis and persistence. Journal of
Small Business Management. 53(1). pp.75-93.
Ratten, V., 2014. Future research directions for collective entrepreneurship in
developing countries: a small and medium-sized enterprise
perspective. International Journal of Entrepreneurship and Small
Business. 22(2). pp.266-274.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
education, entrepreneurial self‐efficacy, and entrepreneurial intentions. Journal
of Small Business Management. 53(4). pp.970-985.
Baum, J. R., Frese, M. and Baron, R. A., 2014. Entrepreneurship as an area of
psychology study: An introduction. In The psychology of entrepreneurship (pp.
33-50). Psychology Press.
Ratten, V., 2016. Female entrepreneurship and the role of customer knowledge
development, innovation outcome expectations and culture on intentions to start
informal business ventures. International Journal of Entrepreneurship and Small
Business. 27(2-3). pp.262-272.
Bae and et. al., 2014. The Relationship between Entrepreneurship Education and
Entrepreneurial Intentions: A Meta–Analytic Review. Entrepreneurship theory
and practice. 38(2). pp.217-254.
Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market
economies: Contemporary issues and perspectives. International Small
Business Journal. 32(2). pp.113-116.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and
entrepreneurship field: A bibliometric investigation of articles published in the
International Small Business Journal. International Small Business
Journal. 33(4). pp.374-396.
Ramadani and et. al., 2015. The context of Islamic entrepreneurship and business:
Concept, principles and perspectives. International Journal of Business and
Globalisation. 15(3). pp.244-261.
Online

Ocean five factor model. 2018. [Online]. Available Through : <[Online]. Available
Through : <https://www.mindtools.com/pages/article/newLDR_41.html>.