Entrepreneurship and SMEs: Challenges and Opportunities

The assignment discusses various aspects of entrepreneurship and small and medium-sized enterprises (SMEs) in the United Kingdom. It begins with an introduction to entrepreneurship, highlighting its importance in driving economic growth and innovation. The text then delves into the concept of social entrepreneurship, providing examples such as Steve Jobs and Walt Disney, who used their entrepreneurial skills to create successful businesses that also made a positive impact on society.

ENTREPRENEURSHIP AND
SMALL BUSINESSES
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.............................................2
TASK 2............................................................................................................................................4
P3 Assessing and interpreting relevant data and statistics to illustrate impact of micro and
small business on economy.........................................................................................................4
P4 Importance of small business and start-ups on social economy after 'Brexit'.......................7
TASK 3..........................................................................................................................................10
P5 Determining characteristics, traits and skills of two successful entrepreneurs....................10
P6. Assessing aspects of entrepreneurial personality reflects entrepreneurial motivation and
mind-set.....................................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Examining how background and experience can hinder or foster entrepreneurship...........12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ILLUSTRATION INDEX
Illustration 1: Private sector business in UK....................................................................................5
Illustration 2: SMEs Performance....................................................................................................7
Illustration 3: Impact of Brexit on SMEs.........................................................................................8
Illustration 4: The Brexit Cost in United Kingdom.........................................................................9
Illustration 5: GDP Global Growth Forecast...................................................................................9

INTRODUCTION
Overall capacity and willingness in order to develop, manage and organize a business
venture successfully in market is known as Entrepreneurship. And this whole process is done by
an entrepreneur. Small business consists of few employees working for an organization and has
low sales rate. Businesses that are established by entrepreneur is approx 99% of all the private
sector enterprise. Present report will talk about different types of entrepreneurial ventures and
their relation with typology of entrepreneurship and what are the similarities and differences
between them. It will also explain about the importance of small business and startups on social
economy after 'Brexit'. Determining characteristics, traits and skills of two successful
entrepreneurs and examining how background and experience can hinder or foster
entrepreneurship is also discussed in this study.
TASK 1
P1. Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship
Entrepreneurship can be defined as a process of starting any new business or the study on
how to create a good business. Entrepreneur helps in building good background to start an
effective business. There are so many steps that are included in setting up of an entrepreneurial
venture successfully. Although the importance of entrepreneurship and interest in it is
continuously increasing and growing (Acs, Szerb and Lloyd, 2017). In United Kingdom, these
are very important in providing jobs and helps in creating wealth. There are various types of
entrepreneurial ventures based on their activity, which is explained below:
 Small Business Entrepreneurship: This is the most common type of entrepreneurial
venture which is being easily seen in United Kingdom. In small businesses, it basically
includes ventures like, travel agency, grocery stores, consultants, hair dresser, internet
commerce store fronts, etc. These type of businesses are generally independently owned
by an individual or group of people (Jaskiewicz, Combs and Rau, 2015). Main objective
of small business is to grow into a big enterprise and earn a good profit from it. These are
funded mainly by taking micro loans or bank loans.
 Scale-able Start up Entrepreneurship: In this type of entrepreneurial ventures focus is
on the growth of company and to generate a good revenue. Startups are those business in
which an individual or group of people start a small business with some unique and
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innovative ideas which is totally different from the existing business and also focused on
their potential customers (Höglund, Holmgren Caicedo and Mårtensson, 2018). Aim of
such type businesses is to generate a good wealth for founders and investors through an
IPO or acquisition. This process is also helpful in finding new market opportunities
which is useful in growing the economy of country.
 Large Company Entrepreneurship: These types of entrepreneurial ventures are very
old businesses that has been established successfully in the market. They are basically
very large companies which has approx. 500 staff members working there. These are
basically corporate offices. The main objective of such type of ventures is to maximize
sales and increase customers and sales (Parker, 2018). Large companies are mainly
significant employer in the economy. They get capital from their revenues such as tax
credit and subsidiaries.
 Social Entrepreneurship: In this type of entrepreneurial venture, they are basically
working for resolving the issues related to global health. The main objectives behind this
business is to make the country a better place for living. They try to come up with some
new and innovative ideas which can be useful for them in enhancing their overall
performances which can result in better outcome (Dees, 2017).
P2 Similarities and differences between entrepreneurial ventures
There are basically four different types of entrepreneurial ventures that are present in
business sector, i.e., Small Business, Scalable Start-up, Large Company and Social
Entrepreneurship. Each entrepreneurial ventures have some similarities and difference based on
their functions, which is explained below:
Basis Scalable Start-up
Entrepreneurship
Large
Entrepreneurship
Small businesses
Entrepreneurship
Social
Entrepreneurship
Goals or
objectives
Main objective of
these start up is to
create new and
innovative business
and to explore their
Their main aim is to
generate a good
revenue from the
business which they
can use in investing
Their main aim is to
make a good profit
and grow their
business in industry
effectively.
This type of
entrepreneurial
ventures basically
works for betterment
of country and its
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experiences. in their business
activities in order to
increase its overall
performances.
Main objective of
these small business
enterprises is to
grow their business
in industry and
attract more
customers to buy
their services
(Meyer, Neck and
Meeks, 2017).
people living there.
Aim behind this
business enterprise is
to increase the
outcome of
sustainability in
United Kingdom.
Funding These are basically
personally funded
business.
Capital providers of
large company
entrepreneurship are
their subsidiaries and
tax credits along with
their own revenues.
Capital providers
for this business are
bank loans,
personal findings,
etc.
Depending upon their
business size they
have different capital
providers.
Types In this venture, it can
include, any kind of
business like, mobile
shop, gift shop, food
stalls, etc.
In such
entrepreneurial
venture, they have
very large number of
employees working
there as compared to
other ventures. These
are basically
corporate business
whose objective is to
maintain a good
reputation in the
industry
(Scarborough, 2016).
These are those
businesses which
are run and
operated
independently by an
individual or group
of people.
Businesses that are
included in this
entrepreneurial
venture are, small
restaurant, a retail
shop, grocery store,
etc. in order to
Types of businesses
that included in this
venture are working
in various sectors, for
example, education,
health, welfare, etc.
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generate a good
revenue.
Purpose These startups are
generally operated by
youngsters as they are
more advanced and
creative which is very
useful to get good
ideas for the business
(Antoncic and et.al.,
2015).
These are basically
new and innovative
ideas that is entirely
different from the rest
of the types of
entrepreneurial
ventures.
Their main purpose is
to earn a good
revenue from the
business.
Small business
enterprise mainly
focus in improving
their business to
generate a good
profit.
Reason behind
working in these
sectors is to enhance
living standards of
people in country
(Dorling, 2016).
These enterprises are
basically directed by
social workers.
TASK 2
P3 Assessing and interpreting relevant data and statistics to illustrate impact of micro and small
business on economy
Small and medium sized enterprise (SMEs) are regarded as an important aspect in the
economy of country. Contribution of these SMEs can be done by three ways, such as, they help
in providing financial independence to the people, helps in generating employment opportunities
and by encouraging innovation in citizens. Small businesses are the United Kingdom's greatest
advantage and they contribute in economy in various ways. These businesses might be small but
their impact is certainly anything but. They help in generating a good amount of revenue which
can contribute in the social economy of the country. Small businesses generate a broad variety of
new employment opportunities (Breugst and et.al., 2012).
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There is a huge impact of micro and small business on economy in various ways which is
explained below:
 Economic Growth: SMEs plays a crucial role in the growth of economic as it helps in
giving job opportunist to unemployed people which can assist them in earning a good
amount for themselves. They also help in promoting the use of local resources that are
available in country for the business which is very important in giving employment to
local people as well. From the above graph it is clear that, turnover in 2017 in UK was
very high which resulted in the high economic growth.
 Impact on Industry: United Kingdom is composed of two main form of industry that is
retail and manufacturing. Almost every three businesses out of ten falls into this category.
Further, Wholesale, retail and Repair accounted for 15% of all SMEs employment and
over one-third of SME turnover in the UK private sector. Thus, it can be interpreted how
much SME contributes in the growth and development of United Kingdom (Burns and
Dewhurst, 2016). Impact of micro and small business on UK has a huge impact on
industry as it can be interpreted from graph it has contributed a lot in the business.
 Societal impact: Start-ups have become a social movement in United Kingdom as
maximum individual are engaged in stating their own start up, which has a huge impact
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Illustration 1: Private sector business in UK
(Source: Business statistics, 2017)

on the economic growth of United Kingdom. Overseas demand will play an important
role in delivering a balanced economic recovery through encouraging UK exports. Above
graph concluded that due to increase in the business it helps in the improvement of
societal status of the people.
 Job creation: This is the most important impact of SMEs on economic growth of United
Kingdom. This helps in creating job opportunity in large extent which is very
advantageous for UK in increasing their economy. They are also important for the
exponential growth of the country as well as its contributes in giving employment to the
people who are not getting jobs due to any reason (Sarasvathy and Venkataraman, 2011).
So it is very crucial to have these small and medium businesses to improve the economy
of United Kingdom. From the graph, it is clear that it has helped to create job as they
have increased the employment rate in United Kingdom.
Small, medium and large business has a huge impact on the economy of the country.
They helped the country in the growth of economy as it helps in giving job opportunist to
unemployed people. Small businesses have great impact on different levels of the economy in
terms of local, national and international context. In local term they can help in increasing the
economy by establishing new businesses which can assists them in earning a good revenue.
Nationally and internationally they help in increased GDP.
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P4 Importance of small business and start-ups on social economy after 'Brexit'
Brexit was a term which came into existence when Britain voted to leave the European
Union, which has a huge impact on the small business and startups in United Kingdom. Due to
Brexit these micro and small business have huge impact on them. Brexit has a huge significant
negative effect on the United Kingdom economy. For example, there are approximately 5.7 M
Small Medium-sized Enterprises (SMEs) that is operating in United Kingdom which has direct
impact of Brexit on them. Small and medium enterprises also account for 73% of all net private
sector job creation in the United Kingdom (Welter and et.al., 2017). Therefore, how Small
Medium-sized Enterprises respond to uncertainty arising from Brexit has significant implications
for economy.
There is a huge importance of small business and startups on social economy after
'Brexit' in United Kingdom as it helps in creating a huge scope of future as well in small
businesses. The Center for Economic Policy Research calculates that, the Brexit vote has already
cost UK economy £300 million. Same as startups, they also contribute in increasing the
7
Illustration 2: SMEs Performance
(Source: SME Performance Review, 2018)

economic growth as it gives chance to young entrepreneurs to start their own business, earn a
money and improve their life standards as well (Drucker, 2014). The UK government has set
aside £3 billion over next two years to prepare for Brexit. Other than these, there are more
advantages Brexit which is explained below:
 United Kingdom street shopper has gained a lot of economic growth after this Brexit
effect.
 Sustainability and stability are two factors that will define behavior of the UK’s
successful SMEs after effect of this process.
 After this process of Brexit, all startups and small and medium enterprises has worked
really hard to establish their business successfully (Brexit: What We Now Know, 2018).
From above statistics it can be predicted that there was a huge impact of Brexit on
business activities of startups and small and medium enterprises in United Kingdom.
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Illustration 3: Impact of Brexit on SMEs
(Source: Brexit’s impact on small businesses, 2018)

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Illustration 4: The Brexit Cost in United Kingdom
(Source: Brexit What we know, 2018)
Illustration 5: GDP Global Growth Forecast
(Source: Brexit What we know, 2018)

TASK 3
P5 Determining characteristics, traits and skills of two successful entrepreneurs
An entrepreneur comes in all form and size depending upon their background, work,
education and experience. It requires lot of efforts to become an entrepreneur. Some are born
with these traits and some puts efforts to become one. Two successful entrepreneur are as
follows-
Walt Disney
He was a gifted animator who began to create animated videos and cartoons in their
studio. He created Mickey Mouse, media channels, movies and many amusement parks. His
company became the largest animator and media company in world (Schwens and et.al., 2018). Honesty- He was an honest and best sales man who had integrity and power to tolerate
risk. His best sales technique was his honesty. Enthusiasm-He was very enthusiastic about his products. He always motivated and
encouraged his employees. This made him different from all other entrepreneurs. Inspiration-He had ability to inspire others. He always motivated his employees to work
and focus on dreams and make efforts to convert them into reality. This will give high
level of satisfaction. He knew capabilities of each and every employee and never
expected more than what they give (Hobolt, 2016). Focused-He was dedicated and focused on products, aims and objective. He was very
courageous aimed to reach goals and objective which are right in front. He never stopped
and kept on working. Determined- He was devoted and determined towards his work. He kept on learning new
things and never let failures turn away his way. He learned from his failure and took them
in positive manner.
Steve Jobs
A successful and great achiever of all time is the co-founder of Apple. The company
gives a great challenge to Microsoft (Drucker, 2014). His invention of iPhone, iPad and iPod are
products which helped him to become successful.
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 Focused-He was highly focused and worked on various projects for betterment of
company. When he returned to company in 1990, he made people to focus more on small
product line. His aim was to identify needs and then put efforts to reach them. Adaptability-He learned most of his lessons by adapting changes. He managed to handle
changes and used his personal and professional skills to become a better person. He was a
powerful admirer and perfectionist. Goal oriented- Apple became successful because of Jobs strong vision. To become
successful, there is a need for strong vision for company. Constant planning is required
for reaching profits (Smith and Stevens, 2010). Innovative- He was very innovative. He has power to look what future will look and
innovate accordingly. Like, he created an atmosphere which was beyond anyone's
imagination to make them feel motivated.
 Learn from mistakes- He believes that to become successful a person has to learn from
mistakes. He was highly committed and made full efforts to complete his work on time.
He was passionate and enthusiastic from beginning and continue with this zeal
throughout his life.
Characteristic traits, skills and motivational drivers of successful entrepreneur, for
example, Walt Disney and Steve Jobs. They have so many qualities and skills which has helped
them in becoming successful entrepreneur in their life. They have various skills, for example,
Steve Jobs and Walt Disney were focused, hard working, innovative, creative, etc. which is must
in any entrepreneur.
P6. Assessing aspects of entrepreneurial personality reflects entrepreneurial motivation and
mind-set
To become successful, an entrepreneur has to follow some motivation and mindsets. The
way they work makes them unique and successful. They are goal oriented and make efforts to
achieve those goals and objectives. Steve Jobs and Walt Disney were dedicated towards their
work despite of many failures and obstacles which has helped them to become successful
entrepreneurs. He has ability to distinguish between right and wrong. His ideas and innovation
helps to make new products and services. An entrepreneur feels motivated when he achieves
what he has dreamed off. An entrepreneurial mindset includes his attitude, behavior and skills
which are required for starting a business and become successful. An entrepreneur should be
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self-dependent, self-reliant and self-directed. Profits do not drive a person but making dreams
turn into reality with their innovative minds is primary motivation of every entrepreneur
(Kuratko, 2016). Some common mindset and motivation factors which every entrepreneur have
them in common are listed below. Initiative and self-direction Most of the entrepreneurs are curious about their work. They
are calm and active which is the most common thing seen in every entrepreneur. They
involve everyone in decision making but do what they think is right. They take initiative
to start new business with their ideas and innovation. Just like Steve Jobs and Walt
Disney, they started what they feel is right for them. Risk-taking They are risk taker and have great passion towards work. Their commitment
towards work helps to bring business to another level. They never hesitate in his work
and accepts rejection and take them in positive manner. For example, Walt Disney has
taken a risk to start his own company without thinking of the future outcome. But he was
confident in his work which made him a successful entrepreneur. Flexible and adaptable They are flexible to adapt changes in economy and society. They
do pre planning to face unexpected situations and challenges from the market. They make
strategies to face changing demands. Creative and innovative They are creative heads. They try to expand their business with
new ideas and converting the old one into more creative form.
 Thinker and problem solver They always see positive aspect of every situation. They
have effective leadership qualities. He is the one who motivates and guides his
employees.
Walt Disney and Steve Jobs were highly motivated and dedicated towards their work.
They used their innovative skills to capture a share in market. Both were highly focused towards
their work and converted their ideas into dreams.
TASK 4
P7 Examining how background and experience can hinder or foster entrepreneurship
It is very important to have a good background and experience to have a successful
business. These can give them positive as well as negative impact on them. So it is very essential
to analyze their business effectively. There are various factors which can foster entrepreneurship
to some extent. These factors are explained below:
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Background of Steve Jobs: Steve Jobs was an American entrepreneur. He was the chairman,
chief executive officer (CEO), and a co-founder of Apple Inc.] (Steve Jobs Biography, 2018). He
was very hard working and dedicated towards his work which made him the most successful
entrepreneur in world.
Background of Walt Disney: Walt Disney was a successful entrepreneur of his time. He has
learned drawing and photography which has helped him in becoming what he is, a successful
producer of Walt Disney Company. His family has supported him a lot (Walt
Disney Biography, 2018). He has worked in so many places. His skills and experience
has guided him a lot to make his career bright.
 Family Background: This has a huge impact on the entrepreneurship as it helps them in
giving support to start have a successful business. Family support also provides some
great ideas which they can implement in their business to improve its overall
performance and can earn a good revenue from it. These are the people who comes in the
bad times in their business to encourage them. They also help them in giving financial
support as well (Wang and Altinay, 2012).
 Personal Experience: This is the essential factors which plays an important role in
fostering their business. These helps them a lot in managing their work and organize
them properly. Implementing the knowledge and experience into their own business can
give them a huge positive response which can also help in improving their enterprise.
 Focused and passionate: This is the most important factor which can help the
entrepreneur to make their business successful in the market. Steve Jobs and Walt Disney
are very focused and passionate in their work which helped them to become successful.
 Educational Background: Entrepreneurs with specialized knowledge and skills are
valuable for people around them. However, it is important to gain required and needed
knowledge through proper education so that specialization could be gained. Steve Jobs
and Walt Disney got a huge help from educational knowledge which they have used in
their business.
 Creative and innovative: This is the most crucial part for any entrepreneur to be very
creative and innovative which can help them in making improvement in their business.
Steve Jobs and Walt Disney were very creative which helped them in making their
company to become successful.
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 Enthusiasm and Determined: For every entrepreneur, being enthusiastic and
determined plays an important role in successfully establishing their business in market.
Steve Jobs and Walt Disney are very hard working which helped them a lot in becoming
successful entrepreneur.
Other than these factors, there are various other elements as well which can hinder
entrepreneurship, which can include:
 Lack of resources: It is very difficult for any business to have all the required and
necessary resources available to them. This can create a huge problem in successfully
running their business.
 Lack of Knowledge: This can also be an important factor which can affect
entrepreneurship a lot. If they do not have proper or complete knowledge of their
business it is very difficult to have a good and successful business (Storey and Greene,
2010). So it's very crucial to have fine knowledge of all the areas which is related to their
business activity.
There are so many entrepreneurs who have successfully managed their business on the
basis of their background and experience. For example, Steve Jobs has used his intelligence to
bring some innovative ideas which he has implemented in his company to generate a good
revenue. Walt Disney has used his drawing skills which helped him a lot to make his company
become successful in no time.
CONCLUSION
From above report it can be concluded that entrepreneurship plays a very important role
in enhancing economic growth of United Kingdom. Entrepreneur emerges from different forms
of entrepreneurial ventures and through their innovative outlook they create great opportunities
for development and promotion of economy of UK. Moreover, these small and medium
enterprise has a huge impact on developing and promoting social and economic growth of
country by creating stability, job opportunities and generates revenue to the society. This report
has explained about different types of entrepreneurial ventures and what are the similarities and
differences between each ventures. It also discussed about the impact of micro and small
business on economy and also determined characteristics, traits and skills of two successful
entrepreneurs and factors which can hinder or foster entrepreneurship is explained in the last
section of this study.
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REFERENCES
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Online:
Brexit: What We Now Know. 2018. [Online]. Available through:
<https://institute.global/news/brexit-what-we-now-know>
Steve Jobs Biography. 2018. [Online]. Available through:
<https://www.imdb.com/name/nm0423418/bio>
Walt Disney Biography. 2018. [Online]. Available through:
<https://www.biography.com/people/walt-disney-9275533>
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