Entrepreneurship and Small Business Management

In addition to this, it also explains importance of start-ups and small business which help entrepreneurs to become successful.These entrepreneurs have different characteristic as well skills traits which make them different from other entrepreneurs. Entrepreneurs is defined as those people who are owner as well as they are the one who invent new ideas in order to get effective results (Barr and et.al., 2018).

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship..................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures......................6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...........................................................................................................8
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy.....................................................................................................................10
TASK 2..........................................................................................................................................11
Covered in PPT.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is defined as process of starting a new business which is majorly small
business with the motive of earning profit (Ács, Autio and Szerb, 2014). In other words, people
who create entrepreneurship are majorly known as entrepreneur. They are those people who are
risk taker, innovative, invent new techniques and other advance skills. This document is
affiliated with the business of Redbridge which is a London Borough. There are various kind of
small scale business are operating here such as food, travel and others. This report will be
discussed about different type of entrepreneurial ventures such as public, private and social.
Along with this, similarities and difference between these ventures. In addition to this, it also
explains importance of start-ups and small business which help entrepreneurs to become
successful. These entrepreneurs have different characteristic as well skills traits which make
them different from other entrepreneurs. There were many factors such as family background,
financial status, culture, religion and other sectors which either foster or hinder people to become
successful entrepreneur.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Enterprise is define as small business which is launched with the motive of earning profit
as well as to do social practices. These enterprise can be small business, non profit organisation
and many more organisation.
Entrepreneurs is defined as those people who are owner as well as they are the one who
invent new ideas in order to get effective results (Barr and et.al., 2018). Where as interpreneur
themselves raise funds in order run their enterprise as well as for execution of plans. They play
important role in an organisation and funds are raised in order to ideas presented by
intertpreneur.
Difference between Entrepreneur and Intrapreneur:
Basis Entrepreneur Intrapreneur
Meaning It is define as those people
who are owner as well as they
They are the employee present
innovative ideas in their task

are the one who invent new
ideas in order to get effective
results (Barr and et.al., 2018).
within an organisation and are
paid for their work.
Finance They themselves raise funds in
order run their enterprise as
well as for execution of plans.
They plays important role in
an organisation and funds are
raised in order to ideas
presented by intrapreneur.
Activities that are linked to entrepreneurship are as follows:
 Networking: It is very important for an entrepreneur to make connection with people
who can help them in making their business successful (Blackburn, Hart and
Wainwright, 2013). Along with this, it will also help in various ideas and views which
can assist in performing their strategies more effective. Therefore, the more people an
entrepreneur is connected, the more and better result they will achieve.
 Study of human behaviour:It is essential for an entrepreneur to understand human
behaviour, psychology, motivation and many more. If an entrepreneur start
understanding human behaviour it will be easy for them to determine their needs and
demands through which they can produce products and services accordingly.
Different type of entrepreneurial venture:
 Public Enterprise:It is define as those enterprise which are owned and controlled by
government. Along with this, these enterprises management as well as activities is
managed by government. In addition to this, there main objective is provide public
services to societies or poor people. For example: British Broadcasting Corporation, The
Royal Park and many more. BBC is largest broad band which provide broadcasting
services to people.
 Private Enterprise: It refers to those enterprise which is manages and controlled by
individuals or large multinational companies. They can be sole proprietor, partnership
and so on (Bosma and et. al., 2012). Along with this, these enterprise are established with
the motive of earning profit. In addition to these such enterprises are partially owned by
the government. For example: Pepsi Co, Tesla and many more. The main objectives is

maximizing profit at marketplace. TESCO is private organisation which is not governed
through central government.
 Social enterprise:It states that these enterprises are indulge in societies activities and
focus more on fulfilling their needs and preferences. Along with this, these enterprises
perform their strategies in order to improve their financial problem, environmental well
being and so on. The main aim is attaining community mission or particular public. For
example: Cafedirect, One to Watch and many more. Oxfam is regarded as perfect
example of non profit organisation that work for people to provide them social services in
order to support education of child.
 Small entrepreneurial venture: This is defined as ventures which is smaller in size and
capital investment is also less than others. It consists of very few members of staff for
work performance. For instance, travel agents, hair dressers and others. For running their
business, local people are recruited for work performance.
 Large entrepreneurial venture: It is defined as venture which is large in size and
acquire more market share. It possess limited life cycle and performing different
activities such as innovation, new products and services for satisfying consumer's
requirements. For instance, NHS is regarded as large organisation which focus on
providing health care services to public.
Typology of entrepreneur:
 Lifestyle Typology: It refers to those typologies in which enterprise produce their
products as per latest trend and fashion and according to customer demand. Under this
typology is it important for an enterprise to satisfy their customers in order to sustain at
marketplace for long period of time.
 Survival Typology:It is define as those typology whose main objective is to earn high
margin of profits by providing quality of goods and services to their competitors (Bridge
and O'Neill, 2012). Along with this, by satisfying customers it helps them to build strong
consumer base due to which there chances to retain in market gets high.
 Growth Firms: This is formed through earning of more revenue and profits. The
entrepreneur falling in this always focus on developing new and creative ideas for
achieving competitive market.
Relation of typology to entrepreneurship:

Entrepreneurial
Ventures
Examples Sector Relation to the typology of
entrepreneurship
Public Enterprise British
Broadcasting
Corporation
Public This venture is related to growth
topology in order to grow and increase
market share.
Private Enterprise TESCO Private This venture is connected with lifestyle
topology for fulfilling requirements of
consumers.
Social enterprise Oxfam Social It is related with survival topology for
fulfilling society need and demand.
Small entrepreneurial
venture
Travel agents, hair
dresses
Private This venture is related with survival
topology as they are established in
order to fulfils their basic need.
Large entrepreneurial
venture
NHS Private
and
Public
It is related with growth topology as
they provide services to people and
focus on achieving maximum gain and
profits.
P2 Explore the similarities and differences between entrepreneurial ventures
Every entrepreneurial has some similarities as well as differences between them. The
similarities between private as well as public enterprise is explained below:
Similarities between private and public enterprise:
 Focus on customer:Both public and private enterprise mainly focus on their customers.
Along with this, the existence of these enterprises depend on their customer base. They
make sure to fulfil needs of their customers.
 Opportunities for employees: Another similarity between public and private enterprise
is about opportunities of employees (Charman, Petersen and Govender, 2014). No matter
in what enterprise an employee work, it depends on their skills and abilities. A well
skilled and talented employee gets an opportunity to explore themselves in new fields.

 Open to change: Public and private enterprise has a similarity of open to change which
means that these enterprises adopt themselves as per dynamic environment. Along with
this, they also make effective use advance technologies, strategies in order to achieve
their goals and objective in effective manner.
Therefore, above similarities between public and private sector implies that they there are
some which both enterprise give priorities and they are reason for their existence at marketplace
for long period.
Difference between Private and Public Enterprise:
Basis Private Enterprise Public Enterprise
Meaning Private enterprises are those
firms or companies which are
owned, managed and controlled
by individuals and groups private
without any interference of
Government (Choi and
Majumdar2014). The whole
ownership is in the hands of the
private owner.
Public enterprises are those firms
which are owned, managed and
controlled by the Government
whether it is central, state or local
Government. All the activities are
performed according to their rules
and regulations that are framed by
Government.
Motive The main motive of this
enterprise is to earn profit.
Public enterprise motive is to
provide services and products
only for the welfare of general
public as well as also fulfil their
needs and prefernces.
Source of funds In private enterprise, funds are
arranged from many individuals
either in form of issuing shares
and debentures or by taking loan
In this enterprise, funding is done
only by Government. It is the
responsibility of appropriate
Government to fund all the
activities of these enterprises by
public revenues like tax, duty,
penalty etc.

Benefits Private enterprises provide
different benefits like good salary
packages, competitive
environment, incentives etc.
Public enterprises provides job
security, retirement benefits,
allowances, perquisites etc.
Interference In private enterprise, there is less
or nil interference of the
government in any activity
(Chrisman and et. al., 2012).
Owner of the enterprise can only
take decision related to company.
Public enterprises are fully
acquired or controlled by the
government. All decisions are
taken by the government
associates regarding each and
every activity.
Intention of formation Private enterprise is formed with
the intention of personal interest.
Public enterprise is formed with
intention of social interest.
Regional imbalances This enterprise develops the
regional imbalances in growth of
industries due to his own rules
and motives (Decker and et. al.,
2014).
This enterprise prevents the
regional imbalanced growth of
industries.
Choice of industries It undertake only consumer
goods industries where profit
earning is high.
It undertakes all sort of industries.
Objectives The main objectives is earning
maximum profits.
The main objectives is enhancing
economic growth rate.
Structure It has less departments. It has more departments.
Size It has small as well as large size. It carry large size.
Example TESCO British Board Casting
Communication.

P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Micro and small business has a positive impact on economy of UK as these sectors have
provided employment opportunities to individuals. Along with this, entrance of these sectors has
increase in growth of economy (Ciravegna, Majano and Zhan, 2014). These sectors are not
affected by any economic changes in the country as compared to large scale companies. In
addition to this, they are able to build strong customer base as well as gain their trust so that they
spread brand awareness in order to reach wide range of consumers. Therefore, they also make
effective use of advance technologies, modified strategies which help them to improve quality of
their products and services. Along with this, they are able to retain existing customers as well as
acquire consumers which help them to expand their business worldwide.
Illustration 1: Brexit’s impact on small businesses: the experts may be spot on after
all
(Source: Brexit’s impact on small businesses: the experts may be spot on after all,
2019)

From the above graphical information, it can be analysed that the business whose interest
rate is 14.8%, there are no employees and they are running by only one individual for their own
survival. The business which are operated at micro level consist 1-9 employee for running the
business of the company and earning profit. The growth of these kind of business are 18.9% and
they make they contribution in the economic growth and provide job opportunities to local
people. Small scale businesses considered 10-19 employees who make contribution in running
the business and attaining success of the company. The growth rate of these firms are 23.4% and
they are making contribution by creating employment opportunities and generate favourable
impact on the economy of the nation. To run medium size business, there are 50-249 employees
are required to make their participation. The motive of these kind of firms to earn profit and
generate employment.
Small and micro business which are run in Redbridge, create positive impact on the
economy of UK. They crate favourable impact by providing job option to the people of locality
and use new technologies in their business which help in increasing the productivity of the firm.
It help making positive impact on economy of the country and make growth in it.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social economy is define as as a sector which is formed by rich heterogeneity of mutuals,
enterprises, associations and so on (Drucker, 2014). The importance of small business and
business start-ups has a great impact on the growth of social economy. This is because any
individual who wants to start their own business either do start-ups of establish business on small
scale. These sectors help an individual to grow and develop through which they get opportunities
in order to become a successful entrepreneur. The importance of small business and start-up are
as follows:
 Growth of Economy: Start-ups as well as small business is one of the important part for
the growth of economy. It is because it provides several employment opportunities that
directly impact it economic growth. Along with this, entrepreneur of small business and
start-ups majorly come up with innovative ideas, advance technologies, effective
strategies and many more. All these helps in enhancing development of economy.
 Employment of Local workers: These business provides job opportunities to local
workers of their country so that these individuals can show their skill and talent which

will contribute in growth and development of small business and start-ups. In addition to
this, they will also get opportunities to learn new skills as well as gain knowledge
regarding their work. Along with this, there are major large scale companies who are
dependent on these small business to perform their function in the form of outsourcing.
 Change in economic climates: Small business and start-ups majorly adopt themselves
quickly as per the dynamic environment (Fassin, Van Rossem and Buelens, 2011). Along
with this, they also able to build strong customer base as well as gain their trust due to
which they are retain their loyal customers through they are able to determine needs and
demand as per the current period. In addition to this, during economic change these
business do not have lose large revenue as compared to large companies.
 Local government contribution: It implies that in small business and start-up, there is a
contribution to local government in terms of taxes. This is because if there is any
complain of customers from small business regarding their product, they are providing
them their money back. This is a situation where they generate high revenue due to which
these businesses has to pay high amount of taxes to government.
Hence, it is implied that these factors have a great importance of start-ups and small
business which greatly impact the social economy in terms of economic growth, GDP and many
more (George and Bock, 2011). Along with this these sectors are able to generate strong
customer base which helps them in their growth and expansion.
Importance of small Business to the growth of social economy- Small businesses that
are operating in Redbridge borough make their contribution in UK economy. They make their
participation by providing job opportunities, make increment in the number of new market and
running growth of the social economy. There are various small size and micro business are
operated and run in UK and they help in making improvement in the living standards of the local
people of the town.
Importance of start ups business to the growth of social economy- these kind of
business are important to make changes in technologies of the companies and when the company
use innovative techniques and technologies then it help in making improvement in the
production and productivity of the organisation. It create favourable impact on the social
economy of the nation. In current era, start up business are set and established by educated
organisations and institutions so they make focus on make promotion of research and

development or knowledge of the innovators. With this they develop new ideas and establish
new business which help in providing employment and making improvement in their lifestyle.
TASK 2
Covered in PPT
CONCLUSION
Hence it can be concluded from the above report, with the help of entrepreneur ventures,
it becomes easy for person in which sector they have to establish their business. Along with this,
they can also differentiate as well as identify similarities in order to know which sector is better.
There are entrepreneurs who consist of advance characteristic traits as well as skills which set
and example in front of audience. In addition to this, before launching any business it is
necessary to clear that whether is a small business or a start up as they carry their own
importance. Thus, there are some factors such as family, relatives, education and other sectors
which becomes hurdle for an individual to become entrepreneur. But a successful entrepreneur is
a person who took these hurdles as their opportunities.

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