Small Business and Entrepreneurship Analysis

The provided document is an extensive collection of research articles and papers related to small business and entrepreneurship. It includes studies on factors affecting business success, sustainable development, and entrepreneurship policies. The document also touches upon the impact of Brexit on small businesses and the contribution of SMEs to the UK economy.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and how they relate to the typology of entrepreneurship.
.....................................................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.............................................3
TASK 2............................................................................................................................................5
P3 Micro and small businesses impact on the economy.............................................................5
P4 Small businesses and business start –ups contribution to the growth of the social economy
after ‘Brexit'................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Determine the characteristics, traits and skills of two successful entrepreneurs which
differentiate them........................................................................................................................7
P6 Entrepreneurial motivation and mindset................................................................................8
TASK 4............................................................................................................................................9
P7 Examine how background and experience can hinder or foster entrepreneurship................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
An entrepreneur is an individual who has an idea to establish a product and services for
the people. They have the capability to convert their concept into a realistic object which has
some value to the user and the entrepreneur. As they can sale goods to earn benefit and the user
will get the satisfaction against the money they invested. Every large business organization was
once a small firm that was established from an idea of an individual. There are various small
businesses which contributes an important portion in the economy of the country. Hence, this
report comprises of different types of entrepreneurial ventures and typology, similarities and
differences between them, impact of micro and small businesses. It also incorporates the
importance of Brexit, characteristics, traits and skills of two successful entrepreneurs. The report
is also consists of entrepreneurial personality, their motivation and mindset. Moreover, it also
covers such ways that can foster the entrepreneurship (Ackermann, 2012).
TASK 1
P1 Types of entrepreneurial ventures and how they relate to the typology of entrepreneurship.
There are various small and large firms which contributes shares a large amount with the
economy of the nation. Entrepreneurship is an effective term that generates profit and revenue
with a conceptual planning and strategies to sustain in the marketplace. There are various kinds
of entrepreneur ventures that have different purpose to run their organization and that mentioned
as below -
Small Business Entrepreneurship : This types of entrepreneurs starts their business
with a limited resources and effective planning. They works as an individual personality to run
their business and they are responsible for risks and gaining profit. Small business entrepreneurs
can be anyone who run their own firm such as grocery stores, hairstylist, consultants, travel
agents, internet commerce store fronts, woodworker, etc. The main purpose of small business
entrepreneurship is to feed their family and gradually enhance the profitability. They does not
plan to acquire any other company because they are focused on their own work (Blackburn, Hart
and Wainwright, 2013).
Scalable Start-up Entrepreneurship : It is a newly emerged firm which seeks to growth
in the marketplace. The entrepreneurs have a vision that can change the surroundings. They
attracts the investors to invest in their start – up with their innovative thoughts. To reach towards
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success they put the best possible input that can assist them to reach out towards the goals. The
entrepreneurs hires talented individuals who can show their perceptive in front of the investors in
such fascinating way so that they can be impressed and invests in the business. For an example,
Facebook, Twitter, Skype begin with a vision and they reached on perch to achieve the goal
(Bridge and O'Neill, 2012).
Large Company Entrepreneurship : These companies follows a life cycle because they
wanted to stay for a long run. In order to sustain the marketplace they innovates the products and
services and they also offers some new products to satisfy the market needs. These companies
are getting affected by the customer tastes, preferences, new technologies, legislations, and
competition. So to run a business in an effective way it needs to innovate the products with an
distinct approach. The existing large companies often acquires the innovative companies to make
their products different from others. In order to innovate the goods it adopts a complex business
model that can satisfies the customers.
Social Entrepreneurship : They are the innovators who are concentrated to develop
such products and services for the society. The entrepreneurs emphasizes on the social needs and
problems and their main aim is to provide solutions to them. They does not run their business to
earn profit rather they care for the well being of society and make it a better place to live. They
does not work to take market share or earn money but they put efforts to enhance the satisfaction
of the human beings. The social entrepreneurship can work as non – profit and not for profit
organization such as “Community waste collection” in Peru.
Typology of entrepreneurship
These entrepreneurial ventures relates with the different kind of entrepreneurship
typology at some extent. Therefore, it can be define as -
Serial entrepreneur typology – This type of entrepreneurs are those who come up with
an idea and starts a firm. At the initial level it begins with a concept and expand it further by
assigning responsibilities of the company to others. The entrepreneurs establishes various
companies with innovative ideas which is a good thing for the business (Bruton, Ahlstrom and
Li, 2010). But at the same time it can be risky because the one loses focus from its idea and the
firm started to decline and demolishes. In order to get the success entrepreneurs needs to be
concentrated on the functioning so that the company can run in an effective manner. It can be
often seen with scalable start up as they initiate with an idea and starts a company and the
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entrepreneurs again take a step to develop the new concept. That's why their organization fails to
conduct a business successfully.
Social entrepreneurs : A social entrepreneur is an individual who works for a noble
cause and have the potential to solve community issues. They have the courage to take risk and
put efforts to bring a positive change in the society. These kind of entrepreneurs establishes
social entrepreneurship ventures without considering the monetary benefits (Burns, 2010). For an
example educational programs and orphanage which takes care the education and well being of
children.
Female entrepreneurs : Feminist entrepreneur is a person who applies feminist values
and approaches to reach out the goal. They also inspires the girls to improve their life and
wellbeing by themselves. There are various feminine entrepreneurs who are famous and at the
peak of their career such as Oprah Winfrey, Kylie Jenner and Marian Ilitch.
P2 Similarities and differences between entrepreneurial ventures.
There are some similarities and differences between the entrepreneurial ventures because
they have different purposes to came in inception. Hence, similarities and differences between
lifestyle ventures or business and serial entrepreneurs are mentioned below -
Similarities
Lifestyle ventures Serial entrepreneurs ventures
 High investments : The lifestyle
ventures seeks to earn high revenue.
Therefore, they have the ability to
invest in the business to cut down the
competition and maintain a position in
the market (Chittithaworn and et. al.,
2011).
 Maintaining lifestyle : These ventures
are established to maintain the lifestyles
of a team members such as a husband
and wife team rather getting profit.
 Serial entrepreneurship ventures also
begins with an idea. Therefore, they put
efforts to change the vision of investors
by showing them that they can change
the world. In order to do so they put
high investments in the start- ups.
 As they have innovative approach,
they moves towards another idea to
maintain their innovative skills which
can give them a better opportunities in
life.
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Differences
Lifestyle ventures Serial entrepreneurs ventures
 Lifestyles ventures seeks for the
investors who can support their
business such as personal funds, small
bank loans or lending from friends and
family (Cowling, Liu and Ledger,
2012).
 In lifestyles business the owner retains
the entire ownership of business. It
usually distributes controls and
responsibilities among the team
members.
 They seeks to angel investors which
can invest a high amount in their
business and they can innovate the
products and services to gain profit.
 It has much more complex structure
than lifestyle ventures because various
employees are involved in it. For an
example, the actual owner moves to
shape a new innovation after giving
responsibilities to someone else and
they can also involve other people in
the organisational activities. So there
will be huge matrix structure in a serial
start-up.
Similarities
Female entrepreneur businesses Male entrepreneur businesses
 There are various women entrepreneurs
in the world who are successfully
running business organizations such as
Sheryl Sandberg (Board member of
Facebook), Susan Wojcicki (Senior
Vice President at Google) and so on.
 Women are multitalented because they
have the ability to manage several
things at one time as Angela Merkel.
Sheis the first women leader of
 They are also working to increase the
revenue of the organisation in
successfully (Dennis,. 2011).
 They have the ability to cop up in the
tough situation and lead the
organisational activities.
 Men has the capabilities to manage
various things and take innovative steps
for the better future of company.
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Germany who empowered the economy
of European country.
Differences
Female entrepreneur businesses Male entrepreneur businesses
 They takes time to start a business
because they plan the strategies.
 They have lack of experience to begin a
company (Down, 2010).
 On the other hand, the male started
planning for a business in the early age
and that's why they begins the firm in
early.
 Men have a lot of working experience
and that's why they understands
functions and operations within an
organisation.
TASK 2
P3 Micro and small businesses impact on the economy.
The micro and small businesses makes a huge impact on the economy of the country. As
they are running for various purposes for their own but it also increases the revenue of the nation.
There are micro and small firms which establishes by the entrepreneur to gain profit and fulfil
the need of their family. Thus, it develops with a single objective to accomplish their needs.
Micro business : A business which have less than 10 employees in the firm comes is a
micro business. According to this criteria approximately 95.49% businesses has a great
contribution in economy of the United Kingdom. For an example, a person can sale street food
item with only people to fulfil their needs (Fassin, Rossem and Buelens, 2011).
Small business : The employees should be less than 100 in a small scale organization. It
contributes around 99.3% in the economy because they are small businesses which offers such
services to the people in a most frequent way. For an instance, boutique which designs apparels
for the people with a few human resources.
Characteristics of businesses - These organizations can established in various forms such as -
Sole proprietorship : It is running by a single person in order to gain profit. This can be
small book store which is own by a person who is responsible for risk and profit. In order to run
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a small firm it does not need any legal formalities. This is one of the biggest advantage of sole
traders that they do need to follow any legal procedure when they wanted to exit from the
market. It has one more benefit is that it does not need to share the profit with others.
Private sector organization : These organizations are owned by an individual or a group
of people to gain profit. These organizations provides wide variety of services to the people and
generates income. This can be a hospital, restaurant or anything else which is offering services to
the people without any government interference (Hall, Daneke and Lenox, 2010).
Impact on economy
These small and micro businesses may not captures the attention like large companies but
they are the backbone of the UK economy. According to the “Department for Business
Innovations and Skills” 5.2 million private sector organizations raised in 2014. It was that first
time when the business organization exceed by 5 million. This was the record annual increase
from the past year. This boom in business industry offered various employment opportunities to
the country.
In the succeeding years the business industry again hiked with 5.5 million private sector
business which was more than 2015. During the recession these small and micro business
maintains the sustainability of the economy. In that time there was less employment but people
moved to entrepreneurship so that earn money. Thus, small and micro business are the centre
part of the economy. Small and micro businesses are core reason of growth because they adopt
innovation to enhance the visibility which increases their sales (Ligthelm, 2010).
P4 Small businesses and business start –ups contribution to the growth of the social economy
after ‘Brexit'.
'Brexit' is a combined term that refers to “the United Kingdom leaving the European
Union”. Hence, the word formed by Britain and exit. It was a biggest political movement in the
worldwide history. In which everyone voted to leave EU or stay in the European Union so the
referendum held on 23 June, 2016 and leave won by almost 51.9% to 48.1% (Brexit: All you
need to know about the UK leaving the EU, 2018). After the referendum the economy of both
nations was struggling for the stability. The high street brands were boosting the economic
growth since the referendum but after the Brexit the business was started to decline. At that time
it was quite impossible to evolve the high street retailers again because of the online shopping
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websites. This gives a chance to the small and medium size enterprises so that they can support
the economy.
The UK encouraged SMEs to be established and run their business effectively because
small and medium business are the lifeblood of the nation. As they contributes to maintain the
economy of the country. The government of the UK assists to the small and medium
entrepreneurs to develop their business to sales their products and services to the people. So that
they can work as the backbone of the nations. It gives the opportunities to several business owner
s to run a restaurant, boutique, online shopping websites etc. to provide customer satisfaction.
These SME was grown up 0.5 percent 0.2 percent after Brexit which was more than the large
firm that was struggling to sustain the marketplace (UK economy growth and the impact on small
businesses after Brexit, 2016). Thus, these are the biggest source to generate employment
opportunities when GDP were declining. It was offering the job to offer customer services and
to generate income. In the initial state of 2016 there was approximately 342,927 new start-ups
were registered by Companies House. It was also a recorded growth of start-ups when almost 70
new firms get registered within an hour and this was a huge impact in the half of the year. The
most important factor was that there was a cut down in the solvency with 3.6 percent for the past
two years.
TASK 3
P5 Determine the characteristics, traits and skills of two successful entrepreneurs which
differentiate them
The entrepreneurs has some characteristics, traits and skills which make them a
successful businessman. As they are the genius minds that courageously started a business
achieve prosperity. The skills and traits what entrepreneurs have is not inherited by their
ancestors but because of their mindset and optimistic vision changes the world. The biggest
example is set by Bill Gates who has such determination to convert his vision in the realistic
world is commendable. His vision was clear and he attains the goals because of the prioritization
habits. Bill Gates divides his work on priority basis which is a effective tool of time
management. It is essential to manage the time so that the commitments can be fulfilled and
there is a less possibilities of failure if a person accomplishes his task in a systematic way. This
is the core reason of success for Microsoft and Bill Gates (Nga and Shamuganathan, 2010).
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One of the successful entrepreneur is Mark Zuckerberg who take the risk to launch a
social media website while there were already several websites were running. There was a time
when Orkut, Myspace, hi5 going good but Zuckerberg suddenly released a new website and it
was revolution in the social media website. He does not even bothered that there are already a
number of website working good and it will be risk to make a position among them. But his risk
taking decision and confidence not only made his launch successful rather he diminishes the
virtue of existing sites (Preuss, 2011).
Jack Ma is an live example of believing in own self because an entrepreneur faces so
many ups and downs to begin business. But he strongly believe in himselves and rejected all the
30 job offers. After that he established Alibaba which is giant in Chinese industry and because of
that he owes a position among top hundered entrepreneurs of the world.
Resilience is the one more attribute of entrepreneurs because they should not stuck at one
place even after getting failure. If they will stay at place then it will be impossible for them to get
the success. So it is crucial to learn from their failure and keep up the spirit to continue perform
their task. Walt Disney has this quality to continue pursue their work and work hard to achieve
success and today he is known as the father of cartoon characters. Although he fails many times
but he never give up and keep going on his path to get success.
P6 Entrepreneurial motivation and mindset.
There are five dimensions of entrepreneurial personality which describes an entrepreneur
in better way. These dimensions are known as openness, conscientiousness, extraversion and
agreeableness. These dimensions are essential for every entrepreneur in order to achieve the
target. As they are motivated with these factors and their mindset is also constructive because of
these elements which boosts the entrepreneurs. These dimensions can be mentioned as -
Openness – It refers to a person who is curious to enhance the skills and learn new
things. This also includes originality, intellectual and creativity of an individual that means a
person shapes their original idea such as Sergey Brin and Larry page invented Google. They
have flexibility to learn new things that can enhance efficiency of business (Schaltegger and
Wagner, 2011).
Conscientiousness – In this dimension a person is defined as organized, systematic,
punctual, achievement – oriented and reliable. As a person needs to be perform well for the
organization because a systematic approach is required to attain success. If a person does not
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follow a systematic approach then they can loose their ambitions. So they should have a
conscientiousness to attain the goal. For an example, Steve Jobs who was an organized
personality and he was also achievement oriented that's why he became successful.
Extraversion – An entrepreneur should be outgoing, talkative, sociable and enjoyable
because it is important in order to get the feedback from people. They can praise a person or give
a feedback to improve which is essential for a business. Mark Zuckerberg is an outgoing person
who is developing new ideas for the Facebook user and sustain in the market. Extraversion has a
significance because if entrepreneurs does not try new concepts to make effective changes out of
their comfort zone then they can be diminish (Schaper and et. al., 2014).
TASK 4
P7 Examine how background and experience can hinder or foster entrepreneurship.
An entrepreneur plans to starts a firm at that time several challenges occurs in their way.
In order to cop up with these challenges and problems they should have the skills which can
overcome their hurdles. These skills and traits can be learned throughout the life that gives the
spirit to stand and cross the barriers which affects their growth. Thus, an entrepreneur can learn
these things from their education and surroundings such as school, college, beliefs, family and
friends. These are the elements which gives them an experience throughout their life as school
education motivates them to focus on their task to achieve success.
For an example, a family plays an important role in every individual's life and teaches
cultural values as being a family member. Similarly, when a person become an entrepreneur they
also establishes some culture values for their employees so that the workers will feel to be a part
of their organization. They coordinates with entire operations of the organisation to reach on the
top. An individual is motivated to attain the task with a passion so that they will be able to
follow their ambition with a zest and zeal (Shane, 2012).
An individual become an entrepreneur because of these factor which he belongs from
their early age and that is how there vision and concepts to attain the task shapes. Whether it is a
situations of taking risk for the investments and an entrepreneur take the risk to be successful or
lose the opportunity.
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CONCLUSION
The above report summarizes that entrepreneurship is a crucial factor of a country
because it increases the economy. An entrepreneur can establish various kinds of businesses such
as social, large, start up and small scale firm which is beneficial for them not in because of the
money. The entrepreneur has the ability to take risk and generate profit by taking appropriate
decisions. Further the report also underpins SME which is e core of the UK economy that affect
after Brexit and gives a new growth to the nation.
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REFERENCES
Books and Journals
Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science
& Business Media.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Bruton, G.D., Ahlstrom, D. and Li, H.L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Chittithaworn, C., and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5). pp.439-
448.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4).
pp.222-237.
Schaper, M.T. and et. al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
20.
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<https://www.clearbooks.co.uk/blog/smes-xl-contribution-to-the-uk-economy/>
UK economy growth and the impact on small businesses after Brexit, 2016. [Online]. Available
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Brexit: All you need to know about the UK leaving the EU, 2018. [Online]. Available through
<https://www.bbc.com/news/uk-politics-32810887>
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