Entrepreneurship and Small Business Management (SME'S)

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

INTRODUCTION
Entrepreneurs are those individuals which invent new concepts and ideas into reality
which will helps in fulfilling the needs and demands of clients in a proper manner. These people
are considered as backbone of a nation and economy as they also benefit in providing numerous
job and income opportunities to common people (Dimov, 2011). By this, people in UK are able
to earn an indispose income. This report will cover different kind of entrepreneurial ventures and
their typologies along with deviation & sameness in business ventures. Other than it, statistics
and facts are mentioned about SMEs on the basis of economy. Beside this, advantages of new
and small business in context with social economy is mentioned. Other than this, characteristics
and attribute related with prospering businessperson are mentioned along with aspects that
reflects mind-set and motivation of entrepreneurs. At last, role of background and education in
hindering or fostering entrepreneurship is discussed.
Task 1
P1
Entrepreneurs are the people which starts a new enterprise by offering products or
services to the customers as per their choice. These are the firms that are established by the
businessperson so that high amount of income can be generated to live a standardised life.
Entrepreneurial activity is referred as the procedure in which an organisation generates profits by
performing economic operations and activities. These activities benefits in exploration of unique
and new ideas so that high growth can be sustained through venture (Heinonen,Hytti, and
Stenholm, 2011). There are different kind of entrepreneurial ventures which have their own size,
purpose, service and scope which are mentioned below:
Different type of ventures
Small business: These kind of businesses organisations need limited number of
operation, size, employees and capital to operate their business. These business ventures are run
to offer good services and products to the customers. Extent and size of the concerned work is
narrow as their operations are performed on small level only. Small businesses are formed under
sole proprietorship or partnership. Purpose behind these businesses is to earn livelihood that is up
to 2 million pounds and employ less than 50 workers. For example, Orion electrotech and
clarasys.

Large company: These businesses operates at a high level and due to this they require
unlimited employees, capital and have wide scope & size. Products and services are produced at
high quantity so that maximum number of customers can be satisfied in global context. These
ventures have achieved a strong position in market due to their high experience of business
operation. For instance, Marks &Spencer, Tesco, H&M etc.
Social organisations: These kind of business organisations are developed for the sake
and well being of society. Businesses associated with social organisations create new ideas that
can benefits the society in betterment and growth. These organisations possess high scope as
they offer wide opportunities to local people in sustaining a good life (Short, and et. al., 2010).
These businesses do not posses any aim to earn high returns and profit margins. For example,
Oxfam, save the children etc.
Typologies of entrepreneurship
Entrepreneurship ventures includes various classification which is associated with the
development of business so that attention of clients can be grabbed in appropriate manner. Some
typologies in this context are listed below:
Lifestyle Enterprise: These companies are run and managed so that living standard of
common people can be improved where the organisation is operating. These firms provide
employment opportunities to the local people so that they can spend a healthy and comfortable
life. These businesses came under social ventures.
Growth firms: These kind of organisations come into existence to earn high revenues and
profits. These business entrepreneurs introduce new concepts so that high profits and
productivity can be achieved. These different ideas are generated so that demands of customers
can be satisfied in a desired way. These firms are can be a small business or large business
organisation.
P2
The difference & similarities among different entrepreneurial ventures are mentioned
follows:
Differences
Basis Small business Large company Social entrepreneurship

Scale These are known as
small scale business
because they are
managed at small scale
by investing limited
money.
These business
organisations operate at
large level due to which
they require high
investment and funds.
These business firms
operates their business
at local level so that
needs and demands of
local people can be
served in a proper
manner.
Purpose Main purpose of small
business is to spend a
healthy and comfortable
life (Renko, Shrader,
and Simon, 2012).
These businesses are
developed with the
objective of earning
huge money by new
ideas.
These organisations are
formed for uplifting
local people to give
them improved living
standard.
Characteristics These business requires
limited resources to run
business and
government interference
is quite low.
Such businesses require
large number of
resources like money,
employees etc. Also
government intervention
is more due to complex
business operations.
Money needed by these
companies are given by
government due to this
they became
governmental
organisations.
Similarities
Basis Small business Large business Social enterprise
Meeting the needs These business came
into existence for
fulfilling requirements
and needs of local
people.
These companies works
to satisfy the needs of
clients but at global
context.
These businesses are
formed to provide
support to common
people so that needs and
demands can be
satisfied easily.
Society upliftment These company
provides earning
opportunities to local
These firms offer job
opportunities to people
at national and
These firms offer
products and job
benefits so that people

people which results in
healthy life.
international level due to
which those people are
able to live a
comfortable life.
& society as a whole
can sustain a
comfortable living.
P3
Businesses and other entrepreneurial ventures plays a major role in economic
development. They provide their contribution to a nation by helping in developing infrastructure,
building, school, roads etc.
Small: These kind of companies employs few workers which are less than 50 in numbers
to earn revenues low than 5 million pounds. These organisations have less impact on economic
development as revenues and profits are earned by them at low scale.
Medium: These business organisations employs above than 50 workers but they are less
than 250 in number and possess revenue between £5m to £22m. They also influence economic
development due to more employment opportunities and fulfilling need of people as per their
demands in a proper manner (Vaghely, and Julien, 2010).
Large: These organisation operates their business at high level and employs more than
250 workers. these companies earn a revenue more than 22m pounds. Such company heavily
influences the economic development of a nation as they offer employment chances to a high
number of people both at domestic and international level.

(Source: Small business, 2018)
Small scale businesses also generate innovative methods which are very flexible in
context with changing situations in marketplace. This assists in improving the overall
performance of company in a proper manner. In the year of 2018, around 5.8 million small and
medium sized businesses operates their operations in UK. Under this, they employee from 0 to
249 employees for work.
Illustration 1: Small business

(Source: Role of Start-ups and Small Businesses on Economy, 2018)
In accordance with this graph, we can summarised that SMEs have a bigger share in
economic and financial development of UK. In accordance with the above stated figures, it is
acknowledged that in UK around 99.3% businesses are operating at small level whereas 0.6%
businesses are operating at medium level. These businesses offers employment opportunities to
around 60% of UK population.
Impact of SME on economy
Local impact: SME organisations have a direct impact on the local economy by offering
their products and services so that requirements of people can be satisfied in a proper manner.
These type of companies came into existence after acknowledging the needs of population.
Because of these businesses, local people get job opportunities due to which they spend their life
in buying those products and services which is required by them to live a good life.
Regional impact: SME also influences regional economy due to wide job opportunities
to population at regional level for eliminating the problems like unemployment and poverty.
This positively influences UK economy as due to high employment rate business operations can
Illustration 2: Role of Start-ups and Small Businesses on Economy,2018

be performed in a desired manner. This will help in developing regional area due to payment of
taxes due to which infrastructural development also takes place.
National impact: SME also influence economy at national level as they carry out their
business activities in national context. Companies also adopt innovative ideas and concepts in to
enhance the revenues & productivity of fir. This enhanced profit will benefit the nation in
increasing revenues of government. 99.9% in UK came under SMEs, this shows their importance
in providing job and income security to the residents of UK at national level (The Role of Start-
ups and Small Businesses in Today’s Economy, 2018).
P4
Importance associated with the small businesses and start-ups in social economy of United
Kingdom is mentioned below:
Job creation: Private venture and start-up plays an essential role in producing new job or
business openings which helps these organizations in earning desired profits and efficiency.
These organizations give jobs to local and national population so as to improve their current
abilities, capacities and way of living. Through these improved standards, people can create new
opportunities so that high growth can be achieved. Due to this unemployment will decrease and
economic condition of UK will improve in a considerable manner.
Enhanced living standard: Both small and medium sized companies are significant for
nation so as to increasing the living way of local individuals. This is achieved by offering high
quality goods and services as per the requirements of clients. This will satisfy the necessities of
individuals so that they can increase their living way as well (Wang, YEllinger, and Jim Wu,
2013).
Economic growth: Both of medium and small businesses are significant for the
economic growth as it makes open doors for people through new concepts and innovative ideas.
These companies earn sufficient revenues which can improve the growth rate of economy.
Additionally, these medium firms and small companies are helpful for creating standardised
items and services to people due to which economic growth in UK takes place.
From above discussed line, it tends to be concluded that the SMEs are extremely valuable
for a nation as they give imaginative thoughts and ideas which can be utilized for improving the
life of the people living in a country. These businesses additionally give work opportunities to
individuals which is useful for them in earning wage to life comfortable life.

Task 3
P5
To became a renowned entrepreneur, an individual requires specific skills, traits and
characteristic which differentiate them from another people. Oprah winfrey and J.K. Rowling are
two successful entrepreneurs which have received worldwide recognition and acceptance due to
their skills and hard work. These two ladies have earned huge success and growth due to passion
and willingness to achieve goals. In this context skills, characteristics and traits that are needed
to be a successful business person are mentioned below:
Characteristic Passion: This is a vital characteristic which an entrepreneur must have to accomplish
targets and goals in a timely manner. By using this characteristic, Winfrey and Rowling is
able to focus on their work that results them in huge success. Without passion,
completing work in a timely and proper manner is not possible for a person. Managers
don’t have passion similar to entrepreneurs as managers lose their patience and passion in
complex situations (Bakeman, and Hanson, 2012). Self-efficacy and hard work: It is another vital characteristic which allow Rowling and
Winfrey to achieve desired success. With the help of hard work, these entrepreneurs were
able to perform well in complex and hard situations. Without self-belief and hard work, it
is not possible for a person to deliver their best performance. This characteristic is not
posed by manager as they belief in intelligence not hard work.
Skills Innovative thinking: This skill is essential for a person so that they can introduce new
concepts and ideas for solving their issues and problems at organisation. By using this
skill, Winfrey and Rowling can solve their organizational problems in a proper manner.
Managers do not have this skill of innovation as they perform work directed by
management of company. Leadership: This skill is very important to be a successful entrepreneur as this benefits
the workforce in an organisation to achieve their goals and aims in a proper manner.
These leadership skills are incorporated in Rowling and Winfrey due to which they are
able to guide their workforce in a proper manner. Manager help employees in performing

their work but do not lead them. This differentiate entrepreneurs from managers
(Berglund, Johannisson. and Schwartz, 2012).
Traits
 Confident: It is an essential trait that is needed by an entrepreneur to take accurate and
timely decisions. Both Winfrey and J.K. Rowling are very confident while taking
important decisions for their firms and innovating new ideas to perform business
activities. Due to this, they are able to attain desired outcomes in a proper manner. This
differentiate them from mangers as they take decisions while bearing risk in mind.
Disciplined: It is a necessary trait for an entrepreneur to achieve high success for their
business venture as through this, entrepreneurs can maintain a good balance between
their professional and personal life. Both Rowling and Winfrey have this trait due to
which they feel focused in achieving their goals without any distractions.
P6
An individual can became a successful entrepreneur if having several traits, skills and
characteristics. These attributes encourages their mindset to achieve something big which makes
them more successful among others. To reflect their entrepreneurial motivation, OCEAN model
can be effectively used which contains different five aspects that must be present in a successful
entrepreneur:
Openness: This elements is related with the emption, adventure and ideas that brings an
entrepreneur ahead than others. This aspects reflects the curiosity and creativity which makes
easy for them to make an effective and profitable decision for their businesses. Apart from this,
this will also help in gaining new things and tackling challenges that may comes from their rivals
iin competitive world (Bridge,and O'Neill, 2012).
Conscientiousness: It is related with the adaptability and dependability. This expresses
the business visionaries should remain concentrated on their objectives rather to include in the
other ineffective exercises so as to achieve their objectives successfully.
Extroversion: This expresses the business visionaries should remain lively, confident,
garrulous and social so as to impact the representatives and different people. Through these, the
business people can likewise keep up great relations with the staff which help them in holding
the labourers.

Agreeableness: This expresses the business people should be agreeable and dependable
so as to organize with their representatives and other individuals. Through this, they can keep up
the trust among the workers which prompts better relations. Through this, the business people
can take the recommendations and thoughts from labourers with respect to the working and
enhancements (Epifanova and et. al., 2015).
Neuroticism: This is related with nervousness, dread, stress, disappointment, desire and
jealousy and so forth in which business people respond adversely to arbitrary circumstance. The
business visionaries ought to dodge such components so as to treat their workers equivalent.
Through keeping away from these components, business people can keep up great and sound
workplace at the work environment.
Task 4
P7
Entrepreneurs manages their business operations to earn high profits and revenues. Due to
right background, experience and education, it became easy for a person to achieve desired
success and results. In this context, background of Oprah Winfrey and J.K. Rowling is discussed
below:
Oprah Winfrey
Background and experience: Oprah Winfrey is an African American which is a renowned media
executive, television producer, talk show host, and a philanthropist. She take birth in Mississippi
to an unmarried mother. Her mother was maid and biological father was a coal miner earlier and
then turned into a barber but another person Noah Robinson claims to be her father. Oprah
Winfrey was very poor and she never had enough food to feed herself. Oprah had three half-
siblings and she was molested by her cousin. She was not given proper love and education, due
to which she faced so many difficulties in earning a stable livelihood. At the age of 13 she ran
from home and got pregnant but her son died due to premature birth. She felt very alone and try
to end her life due to all these circumstances but she chooses to live a good life and studied
communication. She do different jobs and won beauty pageant. After all these hardships she
becam a successful show host and earn success (Hall, and Wagner, 2012).
J.K. Rowling

Background and experience: She is a British based novelist, philanthropist, producer and an
entrepreneur. She is well famous for Harry potter series. She was born to Peter James Rowling
which was an aircraft engineer and her mother was a science technician. Her teenage days were
not happy as her mother has multiple Sclerosis. Due to which she faced very hardships and her
life was quite miserable. After getting so many rejections, she faced a success by the publications
of Harry potter (Kelley, Singer, Sand Herrington, 2012).
Due to these hardships both entrepreneurs were able to achieve high success and growth
as they learn how to pass the complex situations in a proper manner.
Conclusion
From the above summarised assignment report, it is concluded, entrepreneurs are those
persons that converts ideas into reality to earn high revenues and profits. There are various
entrepreneurial ventures like large, social and small which have varying typologies. These start-
ups and small companies benefits a nation in offering job and revenues to the residents of a
nation or region. There are various traits, characteristics and skills like confidence, passion etc.
which differentiate managers and common people from entrepreneurs. Education and
background of a person can foster or hinder entrepreneurship in a considerable manner.
.

REFERENCES
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Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
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businesses-in-the-uk>.
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