Impact of Small Business on UK Economy

Entrepreneurship and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Types of entrepreneurial ventures and there relation with typology of entrepreneurship.....1
Entrepreneur: Entrepreneur is a person having innovating ideas and putting those ideas into
reality by identifying the need of that creation in business world(Scarborough, 2016).............1
P2 Similarities and differences between entrepreneurial ventures.............................................2
LO2..................................................................................................................................................5
P3 Impact of small business on UK economy............................................................................5
P4 Impact of small business in social economy..........................................................................6
LO3..................................................................................................................................................7
P5 Characteristics and skills of successful entrepreneurs and difference between a business
manager and a entrepreneur........................................................................................................7
P6 aspect of the entrepreneurial personality reflect on entrepreneurial motivation and mindset
.....................................................................................................................................................9
LO4................................................................................................................................................11
P7 How background and experience can hinder or foster entrepreneurship.............................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to a large company when started an small business led by an
entrepreneur. Every small business need an entrepreneur to start and survive in market. Small
business usually deal with established products and services for limited growth expectation,
while entrepreneur focus on innovation and offering for high growth in market and to have
returns. This study will lay about who Entrepreneurs are and what entrepreneurship means. It
also tells about types of entrepreneurial ventures and there relation with entrepreneurship. It will
include three types of Ventures:- Survival firms, high growth firm and Aggressive firm. These
ventures are further related to Different typologies of the business. Micro and small businesses
impact the economy, so this study is also been done by assessing relevant data and statistics.
Further importance of small businesses and startups in growth of social economy has been
studied(Burns, 2016).
LO1
P1 Types of entrepreneurial ventures and there relation with typology of entrepreneurship.
Entrepreneur: Entrepreneur is a person having innovating ideas and putting those ideas into
reality by identifying the need of that creation in business world(Scarborough, 2016).
Entrepreneurship: When people who are imaginative are putting these ideas into reality that is,
processing it into a design and launching it further in market to run a new business. This whole
process is known as Entrepreneurship(Burns and Dewhurst, 2016).
Entrepreneurial venture: An organisation that take innovation in hand to create opportunity
which will result to economic growth and socialism.
Enterprise: It refers to an undertaking which is particularly difficult to handle and risky in
case(Julien, 2018).
Types of Entrepreneurial Venture:-
 Survival Firms: Firms which reinvests profits, expands its business operations and
growth strategies for long term pay-offs. This may include cost cutting in business,
Focusing on profit margins and set different schemes to save cash. For example Booz and
Company's industry in UK is a survival firm(Storey, 2016).
 High growth firms: Firms which are growing in market at a good speed then its broader
economy. There is an increment in there annual revenues as compare to there average
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over a sustained period. HGF limited is an example of High growth firm in UK as it is
second in rank out of 100 trade mark filers in UK(Cole, 2018).
 Aggressive growth firms: It is an investment objective to have high capital gain
potential with help of mutual fund investment or among growth shares that are stock of
companies which company expect to grow at a faster rate in the stock market. Example of
such firm in UK is Bain and company(Cole, 2018).
Typologies of Entrepreneurship :-
 Lifestyle Firms : These are the ventures that provide a rational life to the founders of the
firm preferably not to sustain any risks that will come with the high growth of the firm.
These firms are attractive in eyes of investors, but these firms are completely dependable
on founders skills, personality and energy they put to exercise their personal
talent((Venkataraman, 2019).
 Scalable enterprise: These are enterprises which have potential to multiply there
revenue with the minimum incremental cost. Basically investors are in search of such
startups which are ascendible. This can be done by building solid foundation and with
strategic planning to focus on core strength of the business(Ribeiro-Soriano, 2017).
 Social enterprise: It is a commercial organisation which has some social objectives that
distribute its primary purpose. They maximise profits by keeping in mind that it will be a
benefit to society and our environment. Entrepreneur of such enterprise are valuing the
society and they think what they taking from society have to be returned with good
practices(Burch and et.al., 2016).
P2 Similarities and differences between entrepreneurial ventures.
Similarities between entrepreneurial ventures:-
 Strong-willed entrepreneur:- Survival firms, High Growth firms and Aggressive
growth firms are ventures where entrepreneur who are having strong will power to take
their business at that level where there growth is high in market.
 Funding from some venture capitalist or investor:- In all three types of ventures the
business is in search of such investors who are keen to invest in startups which are
ascendible because every venture is in need of funding.
 Creative idea:- Every venture irrespective of type whether it is Survival firms, High
growth firms or Aggressive firms, is in search of new ideas to create need in market for
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