Entrepreneurship & Small Business Management – PDF

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types of entrepreneurial venture and how they can have relatively typology of
entrepreneurship..........................................................................................................................1
P2 similarities in different entrepreneur venture.........................................................................2
M2 How small, medium and large business make to economy..................................................4
D1 examining the scope, development and growth of entrepreneurship ventures......................5
LO2..................................................................................................................................................6
P3 Micro and small business impact on economy.......................................................................6
P4. Importance of small businesses and business start-ups to the growth of the social economy
.....................................................................................................................................................8
M4 diverse range of entrepreneurial ventures............................................................................9
D4 how background and experiences influences entrepreneurs, both positively and negatively9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The entrepreneurship and small business management now days is the most evolving and
developing business with very creative mind holding a different level of risk. It the field where
creative ideas have business development to start their business at the certain moment of time.
There type of development of small business created a greater degree of flexibility in level of
income and interested generated in development of business. In this report the various type of
small business entrepreneur will be discussed. There are various similarities and difference
between entrepreneur ventures. The impact of micro and small business entrepreneur on
economy of country and how it is differentiated from other business managers. The report will
discuss the experience which hinder and poster on entrepreneurship. There are many decisions
regarding development of business.
LO1
P1 Different types of entrepreneurial venture and how they can have relatively typology of
entrepreneurship.
Entrepreneur is a person who has its own business development for the meeting the demand of
its customer. The entrepreneurship is the business development process in which the
entrepreneur will develop its own market for its product(Saleem, M.A., 2017)
. The major part of development of small business organization is development of market
strategies by creating policy and procedure to guide market(Venkataraman, 2019.)
Both entrepreneur and intrapreneur share the similar kind of quality and most of the time
used interchangeably. As entrepreneur is the person who bears a large level of risk as to operates
the successful operation and management as to earn the rewards and return(Zacca, Dayan and
Ahrens, 2015). On the other hand intrapreneur is a business employee who have been paid for
the success in business unit as be responsible for the task he has been hired. The basic difference
between the entrepreneur and intrapreneur is that the former is one who take the initiative and
risk for development of business and latter is hired to develop business within the limits of
company.
There are different of business actives that are needed for development of business in target
market. Some major activities are-
11 Planning for product development is done by entrepreneur as to launch successfully
product in market so that the more achievement in targeting.
1

11 Brain storming for target the market and pricing strategies as to develop the product with
different strategies so that the maximum output can be generated with minimum output.11 Networking is an important part as variety of network will help to analysis the demand
forecasting of goods produced and sell in market.
There are different type of ventures into the sector entrepreneurship in economy. The
making enterprise are the public company, private company and voluntary company (Volery and
Mazzarol, 2015).
There are following example of the public company is government owned company as there
main aim is provided a variety of quality goods as there aim is to serve citizen of country rather
than profit maximization(Zahra and Wright, 2016) The privately owned small business are term
as is the private company. There main of this type of company is having profit maximization
rather than welfare of citizen. The company which works for social benefit and ethics of society
as to have the profit but with development of society.
There is more more of the SME sector in account having more than 99.99% of business
population having this much of non employing population developing there own business. As per
estimation there is 5.5 million of private sector business in UK. In this there are 1.3 million of
these had employees and no employee in 4.2 million. In 76% of there business didn't employee
aside from the owner. Almost 99.3% of total business population there were were 5.5 million
small business.
P2 similarities in different entrepreneur venture
Similarities
There is the requirement of will power so development of any business as the aim of very
different entrepreneurial venture is earning profit. There is need of strong will power
establishment has to achieve their common objective of earning profit(Runyan and Covin, 2019)
 All the ventures need the capitalist as there is basic needs of finance for development of
organization . The funds are required all the ventures.
 For the success in dynamic environment there is requirement of unique and constant
innovation of idea.
2

 All the ventures have to face the environment risk such as political, environmental etc.
DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES:
Public Private Medium Large
Annual growth
rate Providing the
quality product
according to social
ethics. Is average
growth rate.
Average growth rate
is normal in private
companies. It will
increase with
particular
development in
product.
It is simple to meet
day to day
obligation.
After 2-5 years the
growth rate more
than 20%
Managerial
focus
Properly focuses on
development of
social welfare.
Along taking
consideration of
social ethics.
Main aim is to focus
on profit
maximization of
company.
there selling is to
have what they
want to sell.
They more
interested to
increase the
scalability of
company.
Managerial sty
le
Objectified style
have been followed
for managerial
purpose.
Different
managerial style
according to
situation is used.
Extreme reactive
method of
managerial style is
followed.
Proactive and
strategics style is
been followed by
company.
Technology Technology level is
low as due to
backwardness of
government
interventions.
It depends on the
owner of company
what type of
technology he wants
to use(Hatten,
2015).
Technology level
is low due barriers
in development
and lack of
finances.
Technology level is
high as they need to
work at the higher
scale to meet there
vision and mission.
Economic
motive
Main motive of
public company is
to earn profit with
There are self
generated motives
in private
Sustainable
development of
company.
Wealth
maximization is
major motive
3

social welfare. companies as to
earn profit is major
motive.
requirement.
M2 How small, medium and large business make to economy
There are different type of entrepreneurial venture in the economy such as the private and public
company. There are the different scope and different objective for the development of company.
The public company is government owned company that has to provide quality of product to
customer according to social ethics for the development of company. Whereas the main aim of
private company is profit maximization of company. There public company pay more emphasis
on the sustainable development of society whereas the private company will try to expand the
business to the higher extend. The structure of public owned company is hierarchy structure as
the information use to how from the top-level of management to lower level of management. The
most of public companies want to achieve the profit margin but with completion of social ethics.
Where the private run to flat structure as they want to increase the efficiency and effectiveness of
employees to increase productivity.
4

In 2016 there were 5.5 million private sector business at least as there were increase of 97000
and almost 2.0 million from 2010. there is almost 1% increase that is 14000 since 2015 and non
employing business in decrease of 2% is 84000.
D1 examining the scope, development and growth of entrepreneurship ventures.
The private companies have the wide scope of development and growth opportunities in
economy of country as the main aim of company is profit maximization and the company is
using flat structure in organization as this includes the efficiency and effectiveness of employee
to increase the productivity(Goss, 2015). This will contribute in development of company the in
increase the scalability level or to increaser the amount of investment in company through
product development and differentiation. Whereas the public company have less scope as
compare to private company s there are many barriers in development of public company. The
public company pay more focus on sustainable development of company along with social ethics
.
There in SME and economy.
All the private sector od buiness of strat 2016 as the small business acoounted for 99.3% of samll
and mediuym size business.
Figure 1: Contribution of different sized businesses to total population, employment and
turnover, at start of 2016
5

LO2
P3 Micro and small business impact on economy
Small business are privately owned corporation, partnership and sole proprietorship have
medium less size business have the less revenue. There is impact of small business on economy.
Small business has the major contribution in economic development in many ways like by giving
them he employment opportunities and achieve financial independence and encouraging
innovation.
There is more than 5.6 million small business the start of 2018. There are 99.3% all private
sector business small business and 99.9% were small and medium sized. According to small and
medium industries play an important role in the development of an economy. The small-scale
industries paly a major market of UK which helps in developing the growth opportunities. Small
and medium enterprise consist of 16.3 million which is 60% of total employment in employment
in private sector employment. Small and medium enterprise provide the employment to people
who is not hired by the larger corporation(Fayolle and Gailly, 2015). The small and medium
enterprise ply an important role in the development of people and management of the market.
6

Trends in the business population
there is the growth between the years of 2016.
as there is increase in the business population by 2.0 million that is 59 percent. Rte rate of
average growth in business population was around 3%. there id the high rate of increase of 7%
between 2003 and 2004 and between 2004 and 2005 there were little growth.
 further information on trends is in Figure 3 and Table B in this release.
It was 52% of all private sector development of company consist of £2.0 trillion is the combined
annual turnover. In the state of UK the small and medium enterprise is holding the he maximum
part of market as it contribute the maximum level of growth and development to local economies
by giving growth and innovation which the business has established.
In the small and medium enterprise usually hired the less skilled people with no prior experience
and the development of opportunities. Due to small and medium enterprise the there is the job
security in unskilled labour in the economy so the Development which securing jobs which helps
in reduction in frictional unemployment.
M3 different lines of argument relating to entrepreneurial characteristics
7

The employment is having the skilled experience have the training in job and work experience
raising the productivity. The local government is been supported by the development of the small
and medium enterprise is giving taxes for the development(Cumming and Zahra, 2016). The
local community is getting back the money when there is the establishment of local business in
their market. more than 7000 business are on Havering for the growth and development
opportunities of the small and medium enterprise. The main commercial hub of borough is
Romford, with a small district of mainly office development close to railway station. New
industrial development is encouraged in the south of the borough has been encouraged by the
London development agency.
P4. Importance of small businesses and business start-ups to the growth of the social economy
Small and medium price enterprise are mainly contributing in the development of growth band
innovation of local economies by bringing prosperity to the business when established. The
changes in the economic climate can be easily responds and have the have the habit of
adaptability by the small and medium enterprise(Burns and Dewhurst eds, 2016). Small and
medium enterprise paly a important role in the growth where the unemployment rate is very
8

much high in the terms of unemployment. The propensity is being developed by small and
medium enterprises as they also provide fulfilment of riches in diverse number of ways. In may
ways the social economy od the county have been improved.
 Creation of employment: Small and medium scale businesses creates large percentage of
new rank jobs. Small firms tend to have more labour intensive as compare to capital
intensive. In an economy jobs there has been the continuous birth and growth and
expansion of small business. It plays a vital role in growth of social economy of Borough.
 Innovation has been the major Port in the growth of small and medium
entrepeise .Innovation leads to higher productivity, means at the sam level same input
generates a greater output. As productivity raise to height, more goods and services are
being produced which turns out to be growth in social economy (Nambisan, 2017). Like
for example Captify is a data processing company
M4 diverse range of entrepreneurial ventures
Its Engages the significant number of peoples including from disadvantaged groups: Small scale
businesses engages just a important number of people between the disadvantaged groups. These
people don't get much opportunity, while small and medium businesses provide them
employment opportunities. Leading the way with diversity: Small scale businesses helps in
giving employment employing people with no work experience. Here the people earn some
experiences and they are having the ability to apply at the large scale of management having the
ability to say theat the development and growth opportunities of the process of business
exhaustions
D4 how background and experiences influences entrepreneurs, both positively and negatively
Leading the way with diversity: Small scale businesses helps in giving employment employing
people with no work experience. Here the people earn some experiences and they are having the
ability to apply at the large scale of management having the ability to say that the development
and growth opportunities of the process of business orhaostion.they are being able to apply in
large scale businesses as large scale businesses hire only experienced workforce. Small scale
businesses provide employment to not experienced people(Brush and Greene, 2015). Meeting
social purpose: Small and medium scale industries plays a significant role in fulfilling social
responsibilities like ethical business practices, direct philanthropic giving, environmental
sustainability initiatives and economic responsibility.
9

Conclusion
Its Engages the significant number of peoples including from disadvantaged groups: Small
scale businesses engages just a important number of people between the disadvantaged groups.
These people don't get much opportunity, while small and medium businesses provide them
employment opportunities It was 52% of all private sector development of company consist of
£2.0 trillion is the combined annual turnover. In the state of UK the small and medium enterprise
is holding the he maximum part of market as it contribute the maximum level of growth and
development to local economies by giving growth and innovation which the business has
established
10

11

12

13