Small Business and Entrepreneurship in UK Economy

Entrepreneurship and Small Business Management INTRODUCTION | 1 | TASK 11 P1 Different types of entrepreneurial ventures as well as typology of entrepreneurship 1 P2 Similarities as well as differences between entrepreneurial ventures3 TASK 26 P3 Relevant statics as well as data related with impact of small businesses on UK economy.6 P4 Importance of small businesses and start ups for growth and development of social economy7 TASK 38 P6 Entrepreneurial personality that reflect entrepreneurial motivation and mindset 9 TASK

Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures as well as typology of entrepreneurship...........1
P2 Similarities as well as differences between entrepreneurial ventures....................................3
TASK 2............................................................................................................................................6
P3 Relevant statics as well as data related with impact of small businesses on UK economy.. .6
P4 Importance of small businesses and start ups for growth and development of social
economy......................................................................................................................................7
TASK 3............................................................................................................................................8
P6 Entrepreneurial personality that reflect entrepreneurial motivation and mindset..................9
TASK 4..........................................................................................................................................10
P7 Background and experience can foster and hinder entrepreneurship..................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is a very important aspect of any society. If a society has to grow and
develop beyond a point, it has to make sure that it fosters entrepreneurial traits among
entrepreneurs and allows them to innovate and grow. An entrepreneur can help society in various
ways, like by innovating, and by setting up new factories and ventures which ensures a higher
employment for individuals in the longer run. The current report will throw some light on
various types of entrepreneur and entrepreneurial ventures that exist, the similarities as well as
differences between the same will also be discussed in detail (Blackburn, Hart and Wainwright,
2013). Joe Woods is guy who can be regarded as a successful entrepreneur and he has been
doing business from last few years. His IT firm has shown substantial growth. The current report
will also discuss his capabilities and what led to his success and growth of his IT business.
TASK 1
P1 Different types of entrepreneurial ventures as well as typology of entrepreneurship
A business can take any form therefore it has become important for individuals to make
sure that right kind of business form is chosen, which will help in developing and growing
business over period of time (Turcan, 2012). If proper business form is not chosen, then it will
pose many problems for the entrepreneurs in the future, therefore selection of right kind of
Entrepreneurial venture is extremely important. The various types of Entrepreneur and
entrepreneurial ventures that are available are discussed as follows:
Intrapreneur Entrepreneur Manager
An Intrapreneur is an
individual who holds a good
position within the company
and is responsible for carrying
out business activities of the
organisation. He takes risk like
an entrepreneur to take
organisation further, but he
himself does hold any stake in
An Entrepreneur is a person
who decides to take risk of his
capital, time and efforts to
launch a new venture and earn
profits. The success as well as
failure of the venture is borne
by the Entrepreneur himself.
A Manager is a person who is
a employee of the organisation,
but he have to take
organisation ahead by
managing it well, and he gets
paid a fixed salary for the
same. Thus, there is no sharing
in profits as such but a fixed
salary is being paid to the
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the company, but rather is a
employee of the organisation
who has been given liberty to
take necessary risk and
innovate in an effective
manner (Bridge and O'Neill,
2012).
manager to perform his duties.
Types of Entrepreneurial Venture
For the purpose of launching a new venture, there are various kinds of options which are
available within an individuals which are being discussed as follows: Small Business Enterprise: These types of venture is opened by people who are having
small to medium size capital with themselves and are ready to invest the same within a
venture, in an anticipation to earn higher level of profits in the longer run (Maritz and
Donovan, 2015). They try to offer goods and services to customers in the longer run and
earn a living for employees as well as for owners. The aim is not to become too big but
rather earning a daily living from the business for family members. The examples of such
kind of businesses are, Retail stores, bakeries, restaurants etc. Social Enterprises: These organisations does not exist for the purpose of making profits,
but rather to serve society in the longer run, The aim is not to make higher profits or
become large firm but to serve needy peoples of the society in an effective as well as
efficient manner. Large Enterprises: These are enterprises which are being owned by a large number of
shareholders and not merely by 2-3 people, thus the level of profits is also high and
company can become fairly large in size (Carland, Carland and Stewart, 2015). Scalable Enterprises: These are those organisations that want to obtain a big size and
tries to achieve the same by acquiring other firms or by improvising the current products
as well as services in the longer run. Thus business growth is the essential criteria for
such kinds of firms.
Entrepreneurial Typologies
2

Life style Ventures –These types of ventures basically provides a support to the entrepreneur and
his life style. The venture is opened by an entrepreneur for the purpose of running the business
on his own norms in an effective as well as efficient way. The entrepreneur usually work alone in
this kind of venture.
Survival Ventures – These ventures are not formed for the purpose of growing large
business or earning high profits, but rather formed for the purpose of supplementing the wage of
family and earning daily bread from the business. For example, Retail shops etc.
Managed Growth Ventures: These are organisations, which is managed in an effective
manner by the manager and he knows exactly how to take company forward and attain larger
profits in the longer run (Yoon and et. al., 2015). The aim is not make any wastage of the cash
and make the best possible use of the same in future.
P2 Similarities as well as differences between entrepreneurial ventures
There are various types of business venture that exist within an organisation and United
Kingdom is not an exception. The different types of ventures are their which is based on the risk
taking capacity as well as needs of the individual (Barbieri, 2013). The similarities as well as
differences between the same can be laid down as follows:
Types of
Enterprises
Similarities Differences
Life Style and a
serial Venture
 The similarity is that both of
these organisations work in
large number at the same time
in an effective manner.
 The role of both serial
entrepreneurial venture and
lifestyle venture is to gain a
higher level of advantages
from different sorts of
business limits in an effective
way (Carraher and Paridon,
2015).
 The character of both the
enterprise is different, serial
venture aims at conducting
business on a regular basis,
with an aim to grow and
develop business in future,
whereas lifestyle venture is
aimed at maintaining a
same level of income and
not beyond a point.
 Serial Entrepreneur looks
for profits in the longer run,
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on the other hand, Lifestyle
entrepreneur aims at
achieving higher level of
adventure through their
venture and not just thriving
for profits only.
Type of enterprise Similarities Differences
Small v/s large
business enterprises
 The similarity between the
two organisation is that they
both provide goods and
services to fulfil the ultimate
needs as well as demands of
individuals in the longer run.
The aim is to make profits
while providing the same
(Austin, Stevenson and Wei-
Skillern, 2012).
 Customer retention is the
ultimate goal of both the firms
in order to sustain in the
market and earn profits on a
consistent basis in the market.
Clients retention can take
place when their needs and
demands will be fulfilled in
and effective manner.
 Small business usually
operates on domestic
boundaries and does not
operate on international
level. Large businesses have
their operations spread in
various nations around the
world in the longer run with
the ultimate aim to earn
higher profits (Fassin, Van
Rossem and Buelens, 2011).
 Small Firms can be operated
with comparatively small
capital and does not require
large pool of resources for
the purpose of conducting
their business operations.
Large business organisation
requires comparatively a
higher amount of resources
and funds for its operations
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in the longer run.
 Small organisation is usually
owned and managed by
fewer individuals as opposed
to large organisations which
is operated as well as
managed by a larger number
of people.
Social v/s scalable business
enterprise
 Both social and
scalable business aims
at providing goods as
well as services to the
society in the longer
run. The society gets
served by activities of
both the organisations.
 The needs of clients are
ascertained, then
necessary amendments
are made within the
operations, so that they
can be effectively
served (Defourny and
Nyssens, 2010).
 A social enterprise is
aimed at providing goods
and services with no
anticipation to earn profits
from the same, the aim is
to serve society in the
longer run. However,
Scalable business
organisation operates to
become big over period of
time and earn higher
amount of profits by
providing goods and
services in an effective as
well as efficient manner
(Williams and Snow,
2012).
 The ultimate aim of a
social enterprise is to serve
society and make this
world a better place to live,
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on the opposite side
scaleable entrepreneurship
consist of using resources
of society and make profits
over period of time.
TASK 2
P3 Relevant statics as well as data related with impact of small businesses on UK economy.
The impact of small as well as medium business on the economy of UK cannot be
undermined. United Kingdom has been providing various assistance to SME Businesses for the
purpose of growing and developing these businesses and generating higher level of employment
in the longer run (Naudé, 2014). The different types of SME enterprises are discussed as follows:
Small enterprises Medium Enterprises Micro Enterprises
If the turnover of an
organisation is less then 10
million pound and number of
employees is less then 50, it is
regarded as small enterprises.
These are organisations, which
does not have a revenue
exceeding 50 million pounds
and is having an employee
base of less then 250
employees (Salamzadeh and
et. al., 2014).
If the turnover of the company
does not exceed 2 million
pound and the number of
employees does not exceed 10,
it is regarded as micro
enterprises within United
Kingdom.
The small and medium enterprises sector plays a very crucial role in the development and
growth of overall economy in the longer run. Thus it is highly important that government of UK
makes necessary policies as well as procedures to develop the SME Sector in an effective
manner so that necessary employment can be generated and there will be less pressure on the
government to take care of employment within the economy (Decker and et. al., 2014). As per
the forum of Private business, The SME Sector has provided around 15.4 million jobs within the
nation, contributing a whooping 34% of the overall employment. This has given a positive effect
on the GDP of UK in the longer run and it is estimated that it will result in higher profits of small
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and medium size firms because of lot of assistance that is being provided to the companies
(Delgado, Porter and Stern, 2010).
There is a need from the side of government of United Kingdom to implement necessary
policies regarding taxation and rebates to encourage overall growth of these SME Sectors going
forward. It is also important that right kind of political supervision is done by the concerned
political administration, in order to boost overall growth in SME Sector.
P4 Importance of small businesses and start ups for growth and development of social economy
Small business: These are businesses which are running on small scale and is growing
quite rapidly. The role of the business in overall economy is quite big. These are established
business with a specific number of employees and turnover beyond a point.
Start-Up's: These are fresh ventures which are being opened up by an individual for the
purpose of doing business and earning profits (Dal and Davy, 2016). The start ups is opened up
by usually a small capital, even 100 dollars or pounds, and can be effective put to work to earn
more money.
BREXIT: BREXIT is a term used for the exit of Britain from the European union. The
government of United Kingdom has decided to make a way out of European union in order to
have separate affairs of their country, also it does not wanted to compromise on various benefits
that it has to give to citizens of other member countries, like a specified number of employment
to people, Easy Visa rules for member countries etc. Their are various impact of Brexit on the
growth as well as development of the economy. The SME sector has taken a negative hit of
Brexit because people are not able to sell their products to neighbour countries on the prices
which was there at the time UK being in Britain. Due to the adverse affect on SME sector there
is a impact on employment and thus overall growth of United Kingdom. This has made it more
difficult for an individual residing in UK to have a lasting employment under the belt with no
uncertainty (Say and Patrickson, 2012). This has impacted the overall standard of living of
individuals with Britain. The level of income has gone down and reduced the profitability of
businesses to quite an extent. Thus it can be said that small and medium economy is the spine of
SME businesses in the longer run and government shall put special focus on the same to build a
better economic environment within the country (George and Bock, 2011).
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TASK 3
P5 Characteristics as well as traits of successful entrepreneurs.
There are certain features as well as characteristics that makes a person different from
other. These different characteristics helps an individual to develop business opportunities and
do business in an effective manner in the longer run. The two entrepreneurs that has been
considered for the purpose of assessing the level of success they have achieved are Oprah
Winfrey and Mark Zuckerberg.
Oprah Winfrey: Oprah Winfrey is regarded as the most successful women in the television
industry (Okeke and Yong, 2016). She is a newscaster and an anchor. She is famous for hosting
various shows and interviews of famous people on her shows. She has a total net worth of around
3.1 billion USD. This has made her one of the richest women in United States. She is regarded as
multitalented Women because of having business interest in a media company, along with that
hosting shows on an international level etc. Hence all these are also a part of his multi facet
character (Schaper and et. al., 2014).
Mark Zuckerberg: Mark Zuckerberg is a Harvard Graduate, who decided to open up a social
media website that enables it to disrupt the social networking market and gain an extraordinary
share within the market in an effective as well as efficient manner. He backed his strength in his
initial days, and despite all the difficulties he is able to make his organisation grow and prosper.
Characteristics of Successful Entrepreneur:
Driven: The successful Entrepreneur would be driven with instinct to become successful and
create an organisation that would make a difference in the life of people. He shall be driven with
positive attitude to become successful.
Risk taking ability: An entrepreneur must be having the ability to effectively take necessary risk
that will enable an individual to innovate as well as develop business in the longer run. Risk
taking is inevitable part of any business and thus it is necessary to conduct business effectively
(Hall, Daneke and Lenox, 2010).
Planning: He shall know how to plan things in an effective manner, Necessary strategies are
needed to be framed to run as well as grow business over period of time. Planing also helps in
effectively leading and motivating employees.
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Creativity: Mark Zuckerberg can be regarded as an epic example of efficient creativity, He has
been able to effectively innovate a social media platform which has become enormous success in
the longer run.
Traits of a successful Entrepreneur
 An Entrepreneur always want to win. Whatever task he or she takes in hand should result
in victory. Only this can lead to higher level of growth as well as higher opportunities to
the firm in the future (Sarasvathy and Venkataraman, 2011).
 An entrepreneur shall be energetic enough to face all the problems and at the same time
find the solutions of the same in an effective way.
 Leadership quality is also one of the most important quality that an individual must be
having in order to successfully become an entrepreneur (Kirzner, 2015).
The current case talks about Joe Woods who has been able to launch and run a successful
IT business. Thus he can be regarded as a successful entrepreneur. Some of the traits that he
possessed, which made it possible for him to run business efficiently are calmness, dedication,
leadership, and focus etc.
P6 Entrepreneurial personality that reflect entrepreneurial motivation and mindset
Entrepreneurial Personality plays a effective role in the overall development and growth
of the organisation, thus it is essential that right kind of personality is developed by an individual
in order to motivate and lead people in an effective way. If the teams will be getting right kind of
leadership as well as motivation, this will increase the chances of becoming a successful
enterprise in the future (Anosike, 2017). Both Oprah Winfrey and Mark Zuckerberg has
exceptional personality they both had the ability to motivate their teams and lead them in a
manner that necessary tasks can be accomplished. The traits can be examined with the help of
big five models, which are being laid down as follows: Openness to experience: This basically means the capability of an individual to
appreciate various innovative ideas, adventure as well as art. It reflects whether an
individual is open to take new experiences as it comes or not. This plays a vital role in
the overall success of an individual. Joe woods has an indisputable openness to variety of
experiences, which made him successful enough to run a business (Kuratko, 2016).
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 Conscientiousness: This means that an individual shall be self disciplined in order to be
successful, he shall be having a planned behaviour towards things instead of spontaneous
reactions. Extraversion: It means than an individual shall be having the character to be positive
and he should be a motivator as well as good speaker to make his team work in an
effective way. These kinds of people usually have a dominant nature. Agreeableness: If an individual can co-operate on certain issues easily and at the same
time have a proper relationship with employees then this means that individual do
possess agreeableness (Martin, McNally and Kay, 2013).
 Emotional Stability: The individual shall have the emotional stability as well to
understand its team and members in an effective manner.
TASK 4
P7 Background and experience can foster and hinder entrepreneurship
The background of an individual plays a very crucial role in the overall success and
growth of the person as well as of the entrepreneurship. Mark Zuckerberg belonged to a humble
background and his father was against his business ambitions and they have not supported mark
for the same (Viswanathan and et. al., 2014). But eventually Zuckerberg, followed his dreams,
which made him successful in the longer run. Background of an individual plays a very crucial
role in the growth and development of an entrepreneur and his venture. Thus, it can be said that
the family and personal background of an individual like the culture followed, education
obtained, circle in which upbringing has taken place etc. can place a significant impact in the
growth and development of business (Neck and Greene, 2011).
The business person that has been talked about in the present case is Joe woods, his
experience was very modest still he has possessed the capacity to think past box and has done
fundamental diligent work to accomplish what he did today. He has likewise experienced a
portion of the different legitimate clashes which has hindered his development in the IT Business
and also the sector. These contentions were related with lawful issues faced by his venture and
different regulations etc.
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CONCLUSION
From the above given discussion it has been analysed that it is essential for each
individual to effectively manage their organisational operations and functions in respect to long
run of business operation. There is a real distinction between an entrepreneur and manager, The
entrepreneur is a risk taker, while a manager is not. No economy can survive without adequate
support from Small and medium enterprises, it makes it possible for economy to grow and
prosper because of large scale employment provided by these organisations. It is also important
to make sure that UK government shall make policies for the upliftment and development of the
SME sector in the longer run. The success of an entrepreneur is dependent on various factors like
the traits as well as the skills posses by him. Small and medium size business organisations are
effective for the growth and development of economy. The major focused area of small as well
as medium size enterprises is to maximising their business operations in respect to attaining
higher competitive edge within the market place. Small size business or start-up's contributes a
huge amount in growth of social economy by providing opportunities to people as it create value
in growth of overall economy. Each individual has their own set of attitude and their behaviour is
based on their norms. Different kind of characteristic like Driven, Risk taking ability, Planning,
Creativity etc. helps an individual to become a successful entrepreneur.
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