Entrepreneurship and Small Business Management

This report discusses different types of entrepreneurial ventures, their impact on the economy, and the entrepreneurial mindset. It also features successful entrepreneurs like Richard Branson and Alan Sugar.

Entrepreneurship and small business management

PART 1
Entrepreneurship and small business management
Scalable start-up entrepreneurship: This type of entrepreneurship business is formed
with the innovative idea of entrepreneurs with a belief that this initiative can bring
changes into world. Some of the examples of scalable start-ups are Uber, Instagram,
and Facebook. Unique attribute of this venture is that, they recognise the missing
thing in market and come up with a solution to fill that gap. Scalable
entrepreneurship often receives funding from venture capitalist due to their
uniqueness and viability of ideas; and hire specialised workforce as they aspire for
rapid expansion and big profit returns (Cho, Moon and Bounkhong, 2019).
Social entrepreneurship: Social entrepreneurship is when an entrepreneur recognises
a specific problem in a society, which can be related to environment protection,
protecting human rights, women and child welfare or protection of animals; and
offers them a solution through tailored activities to create a social value. Prime
objective of such type of entrepreneurship is to make the positive impact in society
and make a better world. Entrepreneurs don’t seek to make profit or wealth for
success rather they make ethical practices such as conscious consumerism, and CSR
to dedicate them for a social cause.
P2 Explore the similarities and difference between entrepreneurial ventures
Similarities
One of the most common aspects among all these entrepreneurial ventures is that
they are established with the aim of delivering value through their business activities
(Biron and St-Jean, 2019). Small business like hairdresser or a small grocery shop in
the street is providing value through meeting basic necessities of a people’
Facebook, Microsoft or Uber are all creating value through proving unique solutions
to the customer’s problems, or companies like British Heart foundations, Oxfam are
creating value through working on a common cause and making a society better.
Value driven concept is inherent into the entrepreneurship which makes it unique
and special from other businesses.
TASK 1
P1: Types of entrepreneurial ventures
Entrepreneurship can be defined as the practice of ideation, establishing, launching and
running a small business with the intention to make profit through their innovation to change
world. People who look after theses business are called as entrepreneurs who posses set of
specific skills such as leadership, communication, technical, business management along with
ability to take risk and initiate (Al Hussaini, 2019). Like there are different businesses in the
same manner there are different types of entrepreneurship which are as mentioned below:
Small business entrepreneurship: These types of entrepreneurship represents a business in which
a person run and manager their own business such as hairdresser, small boutiques, consultants,
carpenters, plumbers etc. Majority of the business in the economy are small businesses which are
established to make profit in order to support their families and modest lifestyle. These
businesses lacks in innovation factor that is why they are incapable to attract venture capital and
are mostly funded by small loans taken from family and friends.
Large company entrepreneurship: These ventures are formed generally when small
entrepreneurial reached at its maturity stage and expanded its scalability due to high growth and
success in the market. Business firms which have a finite amount of life cycle fall under this
category. Because of advanced professional whose knowledge about how to sustain innovation
leads these companies towards growth and survive in market place. Products and services offered
by these companies are usually different variant around their core products as per the needs and
wants of target audience.

Another similarity which is observed from above discussion is that, innovation is the core part
of these business ventures which makes them sustain and flourish into market place. Unlike
other ventures, entrepreneurship ventures take innovative approach and think out of the box to
add value into their products and services to enrich customer experience and increasing their
satisfaction level. Entrepreneurs, because of their ability to sustain on innovation take the
business to new heights and bring revolution around world. For instance: With the concept of
Amazon Pantry, people around the world can make shopping of daily essential without being
stepping out from home. Additionally, Uber came forward to provide one stop solution for
easy availability of cabs and taxis in busy streets (Fiore, Sansone and Paolucci, 2019).
Differences - One of the most obvious distinctions among these ventures is their objective of
existence and long term vision. For example, small business entrepreneurship barely makes
profit but makes sufficient earning to support their modest lifestyle and living of family and
self. Whereas, large entrepreneurship exists to earn high amount of profit and seeks growth
expansion along with delivering to the customers through their business solutions. Whereas,
social entrepreneurship ventures are created primarily to make a positive impact over society
and contribute towards social work rather than making profit. Another distinction is amount of
capital needed to support the business activities and minimum working capital. Small business
does not require much amount to start business whereas scalable requires huge amount of time,
money and efforts to come up with a unique solution (Kawamorita and et. al., 2020). Apart
from these scalable entrepreneurship receives support from venture capitalist or large
institutions, whereas, small business entrepreneurship is financed by family owned money and
loan from relatives or friends.
M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector
Both public and corporate sectors is filled with various kinds of organization that is small,
medium and large. Small scale businesses impact corporate sector in a way that they provide
new businesses to be set-up within the industry. Medium scale industries impacts both private
and public sector in a way that it enhances these sector by making growth of organizations and
bringing huge investments. Large sector impacts both private and public sector in a way that it
helps in providing sustainability within them. Entrepreneurs helps both corporate and public
sector to search for innovative ideas and new ways to do business.
Task 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
business impact on the economy
Small business and entrepreneurship plays a major role in enhancing the standard of living
and development of an economy. As per the report of 2018, there were approximately 5.5
million small businesses in UK employing 0-9 employees and these businesses provides
approximately 33% of the overall employment and generates more than 21% of the total
turnover around entire United Kingdom. Generation of employment at greater scale makes
direct contribution towards the economic development as people have income to spent,
thus UK government promotes small business through credit and loan schemes.
P4 Explain the importance of small business and business start-ups to the growth of the
social economy
Social economy is regarded as the third sectors of the mixed economies capitalist which is
distinct from private and public sectors. Social economy is formed with rich and distinct
types of enterprises and organisation such as cooperatives, mutual, social enterprises,
foundations, associations and paritarians working voluntarily who share common values
and objective, with a no profit making intention. Below mentioned are the significance of
small business and start-up for the growth of social economy:
 Creates local employment: Small business is the largest creation of employment
in the small geographical areas where they operate and contribute to the economic
growth by bringing innovative business solutions. People get opportunity to work
and earn income to support their living and thus increasing the standard of living
of people in a community (Dana and Anderson, 2021).
 Adapting to climatic conditions: Small businesses are often consumer oriented
and keeps the interest of society as their first priority as they understand their
need and aimed at preserving the natural resources and society where they
operate. Small business are recognised due to their ability to easily adapt to the
climatic conditions and making efforts towards making minimal impact over
people and planet through their business activities.

• Development of infrastructure: Small business with their business activities generate
sales revenue and in turn give money to the community where they operate in form of taxes
and including property tax. Thriving small businesses makes more revenue, thus generate
more revenue for government which is further used in the development of infrastructure and
other facilities (Muhammad Auwal and et. al., 2020).
• Development of small business to corporations: When business thrive and meet the
customer’s expectations they are more likely to convert into big corporations, extending
operations beyond the local community. However, these small businesses do not leave the
community and continuing benefitting the community where they were established.
Headquarters of big corporations in local community remains a huge source of employment
generation and strengthen the local economies through further developments. M2. Evaluate
the difference small, medium & large businesses applying relevant data
The graph below depicts the private sector in the country United Kingdom, which is currently
being discussed. The importance of such sectors in the development of the nation's economy
cannot be overstated. The following statistics shows that small business entities are large in
number as compare to medium and large size organisation. On the other hand, turnover of big
companies are large as compared to small and medium one. Employment opportunities are
approx. 48% in small. 14% in small and 53% in large organisation. Small entities have large
scope to employment which is beneficial for people. As it offers so many opportunities for
employment.
When the consumers are purchase from local small businesses, then they are giving
mo0ney back to their community. The small businesses and business start-ups generate
high amount of revenue that means they pay higher percentage of taxes. These taxes are
helps in improving the GDP. Small businesses and business start-ups pays many taxes to
government like GST, property taxes, income taxes etc. It helps in increasing the tax
bases. D2. Assessment of small business and its impact on the economy.
Conclusion
From the above mentioned report it is concluded that small business and entrepreneurship
contribute majorly towards the development of a nation and contribution towards
economy. Government of UK are taking necessary measures to promote and support the
small business as they make a significant impact on economy and create wealth for the
nation. Furthermore, in this report it has also been analysed different types of
entrepreneurship ventures and details of funding for establishing the enterprises.
References:
Books and Journals
Al Hussaini, A.N., 2019. EXPLORING THE RELATIONSHIP BETWEEN
ENTREPRENEURSHIP DEVELOPMENT AND FINANCIAL MANAGEMENT
EXPERTISE AMONG THE STUDENTS: A STUDY FROM KUWAIT. Academy of
Entrepreneurship Journal, 25, pp.1-17.
Biron, D. and St-Jean, É., 2019. A scoping study of entrepreneurship among seniors:
overview of the literature and avenues for future research. Handbook of Research on
Elderly Entrepreneurship, pp.17-41.
Cho, E., Moon, Z.K. and Bounkhong, T., 2019. A qualitative study on motivators and
barriers affecting entrepreneurship among Latinas. Gender in Management: An
International Journal.
Dana, L.P. and Anderson, R.B., 2021. Indigenous entrepreneurship as a function of
cultural perceptions of opportunity. In World encyclopedia of entrepreneurship. Edward
Elgar Publishing.

Part 2
Richard Branson and Alan Sugar are two successful entrepreneurs who trace back their origin from United Kingdom and recognised
all across the globe due to their successful business ventures and their entrepreneurial traits and attributes. The further mentioned
report includes different types of ventures which are considered as entrepreneurial and associated with the typologies of
entrepreneurship, impact of small business on economy, assessment of the aspects about the entrepreneurial mindset, and different
background of entrepreneurs which hinder or foster entrepreneurship.
With the rapid changes taking place in the business environment and volatility within an economy has increased the demand of the
entrepreneurial skills and knowledge within large enterprise to survive in this competitive environment and make business grow and
profitable in a long run (Zamrudi and Yulianti, 2020).

Passion: Success entrepreneur like Richard Branson are great enthusiast and passionate about their work and business they do. It was
the passion of Richard Branson that kept him motivate towards his long term vision to become successful entrepreneur and lead the
industry. It becomes difficult to work with dedication for long hours and hard work towards common goal if an entrepreneur does not
love what is does (Terán-Yépez and et. al., 2020).
Innovative and creative: Alan Sugar is known for his ability to keep thinking and that too thinking out of the box which always keep
him always unique and ahead of his competitors. Successful entrepreneur like Alan, always step out from their comfort zone to give a
boost to their creativity and to get better results as no best idea occur sitting in closed box or comfort zone.
Risk taking: Real identity of the successful entrepreneurs is their ability and audacity to take huge risk which makes them different
from other managers and in most of the cases hard work pays off and they attain success. Richard Branson took huge risk while

launching Virgin Atlantic as he was in direct competition with leading and established brand British Airways (Zamrudi and Yulianti,
2020).

It is the personality of a entrepreneurs which makes them different from other and keep them focused and motivated which is a key
success of the entrepreneurial ventures. Below mentioned are the few personality traits which defines and reflect their level of
motivation and ability to think creatively (Cho, Moon and Bounkhong, 2019).

Curiosity intensifies the capability of entrepreneurs to look the things from different perspective. Richard Branson was curious about
doing business; it was his curiosity which allowed him to learn from great achievers and examine how they made accomplishments
and lived their lives. Curiosity keeps the entrepreneurs motivated and focused towards their long term vision (Fiore, Sansone and
Paolucci, 2019).
Optimism:
Alan Sugar with his visionary personality succeeded in persuading employees towards.

For instance, Alan Sugar had a good education in his early life which made him a successful entrepreneur. Another factor is family
background which foster entrepreneurship, for instance grandfather of Richard Branson was a high court justice who supported his
endeavours and dreams in early stages which made him successful entrepreneurship. Furthermore, economic conditions of a nation
also foster or hinder entrepreneurship, for instance, stable and good economic conditions of a nation provides adequate funds to
support business, resources, infrastructure, labour and capital which make entrepreneurs necessary support to grow and flourish.

Furthermore, in this report it has also been analysed different types of entrepreneurship ventures and details of funding for establishing
the enterprises. Apart from this it has also been analysed that successful entrepreneurs are determined by the characteristics traits and
personality character

Terán-Yépez, E., and et. al., 2020. Sustainable entrepreneurship: Review of its evolution and new trends. Journal of Cleaner
Production, 252, p.119742.
Zamrudi, Z. and Yulianti, F., 2020. Sculpting Factors of Entrepreneurship among University Students in Indonesia. Entrepreneurial
Business and Economics Review, 8(1), pp.33-49.