Entrepreneurship and Small Business Management

This project explores the concepts of entrepreneurship and small business management, analyzing different types of entrepreneurial ventures and their impact on the economy. It examines the scope, development, and growth of entrepreneurial ventures, highlighting the contribution of small businesses to economic growth and social development. The project also investigates the traits, skills, and motivational drivers of successful entrepreneurs, highlighting the factors that influence their success.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1(a)........................................................................................................................................1
TASK 1(b).......................................................................................................................................6
TASK 2............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business
which is often a small business. The entrepreneurs have the capacity and willingness to develop,
organise and manage the business venture along with any of its risks in order to earn and make
profit. The enterprises of Redbridge, it is a district of Ilford in London are defined in the report.
This report based on the entrepreneurship of the entrepreneur which is going to start its business
at Stamford. In this report critically examining about the scope, development and growth of the
entrepreneurial ventures in Redbridge. The impact of small business are defined that how they
effected the economy and the importance of small businesses to economy and the growth of the
social economy. The traits, skills and motivational derives are also described of successful
British entrepreneurs. The background and experience are also explained that influences them
positively and negatively.
TASK 1(a)
Introduction
Entrepreneurship is the process of designing, launching and running a new business
which is often a small business. It is defined as an act starting and running own business or a
tendency to be creative. It is a process in which an individual undertakes the creation,
organisation or risk of a business. The entrepreneurs have the capacity and willingness to
develop, organise and manage the business venture along with any of its risks in order to earn
and make profit. In this task covered the scope, development and growth of entrepreneurial
ventures in Redbridge and the impact of the small businesses that impacted the economy or the
growth of the social economy (Akehurst, Simarro and Mas‐Tur, 2012).
Different types of entrepreneurial ventures
Life style Enterprises
It is a type of business which is set and run by its founder primarily with the aim of
sustaining a particular level of income and it support the owner's income and personal
requirements rather than maximizing revenue. The main purpose of this business is to create a
sustainable and pleasant work balance with in the business. Various kind of business are running
in Redbridge such as clothing, restaurants, housing and others. Construction is already a
developed and growthful business there which are helpful to provide development in the social
1

and country economy. The employment are also provided by that kind of business which are
helpful to growth of the society and changing the lifestyle of them.
Growth firms
These are that kind of firms whose business generates significant positive cash flows or
earnings that increased at significantly faster than overall economy. In these firms, there are no
hard and fast rules of defining growth, they have help in increased annual revenues by more than
the industry average over a sustainable period (Blackburn, Hart and Wainwright, 2013). These
firms are already achieving growth, for providing the scope, growth and development of the
Redbridge businesses, these kind of firms offering website to develop villages, town and
business of others. The growth of these firms help in the development social economy. They
generate employment so there care high scope to develop their business.
Social enterprises
It is a type of business that trade to intentionally tackle social problems which are related
to society and culture, improve communities, provide employment and training to people. Social
enterprises have social aims such as job creation, training and ethical value. They work for
enterprise orientation and social ownership. There are various kind of small business such as
restaurants, fitness and others which are helpful for the growth and development of the economy
and provide a scope of the society in from of employment. They develop the living style the
people and provide a chance of growth and there are high scope of future.
Private and public sector enterprises
Private Sector Public Sector
These kind of organisation are done business
with the intention of making profit and they are
the part of a country's economy system. These
organisations are run by an individuals if the
business is small and in case of large business,
there might be many thousands of owners
involved.
These are the organisations that are owned by
the government of that country in which the
business operate. They work for the society
welfare and employment of people. They
operate their business with harming the society
and culture (Bridge and O'Neill, 2012).
There are some other organisation of private and public sector which are divided in to
profit and non-profit enterprises.
Profit and non-profit enterprises
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Profit Enterprise Non Profit Enterprise
A business which is operate with the motive of
earning profit and whose primary goal is
making money, is profit enterprise.
A business business which focus a goal such as
helping the community and is concerned with
money only as much as that is necessary to run
the business of the organisation.
NGOs( Non-governmental organisation)
It is a citizen based association that operates independently of government and serve
some social or political purpose. NGOs perform various services and humanitarian functions that
are perform for the society. They are non-profit organisation and organised on a local, national
and international level.
Small, medium and large business enterprises
Micro enterprise Small Enterprise Medium Enterprise Large Enterprise
In this business, there
are less than 10
employees and is
started the business
with a small amount of
capital.
A small business is
defined as that does
not have annual
turnover more than £5-
10 £million and
there are no more than
50 employees.
In this enterprise, there
are not more than 101-
500 employees and
annual revenue should
be £10 million-£1
billion (Burns and
Dewhurst, 2016).
The number of
employees should be
more over 1000 and
annual revenue should
be over £1 billion.
Scope, Growth and development and Comparison of different types of enterprises
The comparison of different types of enterprises are defined here on the basis of nature,
scope, growth and development or funding.
Basis Micro
Enterprise
Small Enterprise Medium
Enterprise
Large Enterprise
Meaning This kind of
business are
started by an
individuals by
own fund. The
staff headcount is
In small
enterprise there
are 50 employees
with a turnover of
less than EUR 10
million (Burns,
Medium sized
enterprises have
staff of less than
250 employees
and their turnover
of less than EUR
In this type of
business, there are
more over 1000
employees and
turnover moreover
3

less than 10
employees with a
turnover of less
than EUR 2
million.
2016). 50 million. EUR 1 billion.
Objectives These enterprises
generate large
scale employment
with relatively
low investment
and improve the
level of living of
people in the
country.
To increase the
income of the
poor people by
self-employment
by using
indigenous
resources and
technology.
Promoting
competitiveness
and productivity
in the business
and enabling
environment for
promotion and
development
(Drucker, 2014).
These firms set
objectives
according their
business such as
long term and
short term. The
main objective of
these enterprises
are profit
maximization and
doing work for the
society.
Scope There are a large
scope of these
kinds of
enterprises
because they
generate
employment in
the country.
These business
are also provide
employability in
the country and
contributing in
the country's
economy. So they
have big scope in
future in the
industry.
This type of
companies have
large scope in the
future
development
because consumer
are aware with
them (Fayolle,
2013).
For example,
M&S is a
company and
operate its
business
worldwide so
there are a big
scope of growth.
Growth &
development
These companies
start their
business with a
The growth and
development of
these companies
For example,
Walmart operate
its business
M&S, a large
company and
known by its
4

small scale so the
growth and
development of
them cannot be
defined.
are depend on the
good work and
skilled
employees.
internationally
and achieve
growth in 6its
business.
customers and
provide better
quality product so
they grow their
business and
develop it.
Sources of funding of various types of enterprises
There are various kind of funding source for different enterprises and these are as
following:
Bank loans- It is a popular source of funding for many start-ups. There are some
limitation and criteria for providing loan for different types of enterprises. Banks can provide the
loans according the size of the company and in maximum amount they can provide loans
£10000-£25000.
Venture capital- It invest between £350,000-£100 million into start-ups and growing
business. Venture capitalists not only provide funding but can offer expertise and mentorship to
help develop the business. They provide funding according the needs of the firms.
Angel Investors- They are wealthy individuals who provide funding in exchange for a
share of equity in the business. They offer valuable advice and guidance which they have
through the industry experience (Goss, 2015).
Support from the borough
Redbridge, a borough that has lots of small businesses and help in enterprises by
providing various great opportunities for start a business. Creating excitement about Redbridge
as a business location, it provide opportunities for entrepreneurship or develop a competitive
package of business support for early stage businesses. By providing important source for the
business such as labour and employees or other this borough help in establishment, growth and
development of enterprises.
Difficulties facing by the enterprises
There are various kind of difficulties which are facing by the each enterprises. In micro
business, these business are start with less funds and lack of funds and uncertainty of future are a
problem for this business. Small business face difficulties of cash flow, profitability,
productivity, customers, regulations, research & development and funds. Medium sized
5

enterprises face problems of financial management, monitoring performance and technology.
Large business face difficulties of Exploding data, Customer service, maintaining reputation and
competencies or recruiting the right talent (Grant, Trautrims and Wong, 2017J).
Help and contribution to the development of business enterprises
In Redbridge, for starting the business by each kind of enterprises such as micro, small,
medium and large, the government of UK make various government policy for providing fund
for these kind of business. The small businesses of Stamford town help and contribute in the
development of the economy and create an economic growth with the stable tax based. These
businesses help in the economy of the country by providing employment and resolve the
problem that are faced by the people of Stamford. The government set some funding criteria
according the size of the company so that they can run their business by taking loan under these
policies and help the local people of the town by providing them employment. This small town
thriving various small businesses which are helpful for the development and growth of the city
and economy. This is a small borough, so there are some problem are faced by entrepreneur
related to resources such as labour, need raw material and others which are needed to start or run
and enterprise.
Conclusion
In this task, it is concluded about the entrepreneurship and entrepreneur venture. The life
style, growth firms, social enterprise, private and public are defined clearly. All kind of
enterprises such as micro, small, medium and large are described with their scope, growth &
development and various kinds of sources which are provide them to run their business. The
difficulties are also defined which are faced by these enterprises during their business. The help
and contribution which are provided by the government and others are also explained in this task.
Difference between private, public and social enterprises
Bases Private Public Social
Objectives The main objective of
private enterprises to
earn profits, reporting
financial data with
clarity, selecting the
proper organisational
The main objective of
public sector
enterprises to
accelerate and
maximize the rate of
economic growth and
The objective of social
enterprise is to achieve
a particular public or
community mission
and deliver quality
services to the
6

structure to limit
liability and to protect
company policies like,
marketing plans form
the competition.
Example, Tesco is a
private enterprise in
nature whose main
objective is to generate
huge profits.
increasing
opportunities of
employment.
Example, United
Kingdom Atomic
Energy Authority, is a
public organisation.
economical backward
people and provide
employment to them.
Example, Oxfam is a
social enterprise.
Structure Tesco follow
hierarchical
organisational
structure.
United Kingdom
Atomic Energy
Authority follow
hierarchical structure.
Oxfam follow
hierarchical structure.
Size In Tesco, there are
476,000 employees do
work and the net
income is £54 million
and number of shops is
6553.
In United Kingdom
Atomic Energy
Authority, there are
more than 41000
employees and net
income of the
company is £6716.
Oxfam consists over 20
charity trusts and have
more than 1200 stores
in various countries
with over 20,000
volunteers working
within it.
Similarities between private, public and social enterprises
Bases Private Public Social
7

Employment Tesco is private in
nature. It provides job
opportunities for the
peoples according their
qualification.
United Kingdom Atomic
Energy Authority also
provide employment
opportunities and
selected people according
their set criteria and
parameters.
Oxfam provide
employment to the
local and needed
people to remove
poverty and manage
their living standard.
CSR Tesco invest few percent
of amount of its profit in
CSR activities.
United Kingdom Atomic
Energy Authority also
organise corporate social
responsibility programs.
Oxfam do its al
activities and work for
the development of the
society.
Government
interference
The interfere of
government actives are
occur in Tesco in
different ways such as
loans, investments and
others.
United Kingdom Atomic
Energy Authority also
face government interfere
in various form because
it is a government
organisation.
In Oxfam, government
also interfere in
various way such by
making policies for
social enterprises and
others.
TASK 1(b)
Introduction
Small business are which are started by individuals to earn money and profit or providing
employment or job to other people at a small scale. The employment is a relation between two
entities which based on pay, if a person do work in an organisation or company, the company
pay him for his work and that pay can be in terms of money. In this task discuss about small
business of the town, and examine the contribution of these business to the economy of the town.
In this explained about small business that how they have impacted on the economy making
reference to relevant data and statistics. The importance of small businesses to economy and the
growth of the social economy are defined by using the data and statistics.
Small business
A business which is operate by privately and small groups of people. This business is
defined as that there are more than 50 employees and the annual turnover of more than £6.5
8

million and the balance in business sheet total of more than £3.26 million and there are various
food businesses set up in Redbridge. In Redbridge various small business are operates such as
meal business, clothing business and others. For example, in Redbridge, there are various small
business operate such as restaurants business, hotels, library hubs and others. For example, there
are 4.9 million small businesses in the UK which employed 24.3 million people and had a
combined turnover of £3300 billion. These business contribute in different types in the economy
of this town. The factors of contribution are as following:
Employment- It is a relation between two parties, mostly based on a contract where the
money is paid for the work which may be a corporation, for profit and non-profit organisation. In
Stamford, the small business provide employment to unemployed people and develop the life
style of them. A business of food are started there which are providing employment of the people
of Redbridge and contribute in the economy of the society and country.
Income generation- By providing employment, they provide source of income to others
and by manufacturing good quality products and services they gain profit or generate income for
the company. They start their business by investing money of £3million. The company is
working as an income generator for both company and employees. Stamford is tourist attraction
place where every year various tourist such as 10,000 come to visit this place so it also help in
the income generation of the business.
Contributing to the welfare of the society and environment- This small businesses
operate its business without harming the environment and society. By providing better quality
products and services or provide employment to people they do work for the welfare of the
society. It provide a little part 8% of its profit to the social work and provide employment to the
people and doing CSR activities such as education programme or provide 2% of its profit in this
work. It organise other social and environmental wale-fare program such as plantation or others.
Creativity and innovation- It is easy to do innovation and making creativity with the
products and services in small business because there are not high risk. By identifying
customers’ needs and demands they do innovation in its products and fulfil their needs. By
showing innovation and creativity in food business the firms can earn more profit and increase
the business or its economy. There are various tourists come from different-different places for
visiting. So they can offer product according them showing creativity and innovation or increase
the profit and economy of the business.
9

Importance of small business and business start ups
Small businesses and start up contribute to local economies by bringing growth and
innovation to the community in which the business is established. Small business and start ups
open new markets and create jobs this way they contribute in the social economy's growth. By -
providing employment opportunities to people who may not be employable by large corporations
and mange the living standard of the peoples. In UK, nearly 27million small business and help in
the employment of local people which increase the social economic growth of the UK. These
businesses generate revenue about 50 percent of UK GDP and create jobs that help in increasing
growth. Small business contribute £241 billion to the economy and 19% increment from the
£202 billion in 2016 (SME growth and contribution in UK economy, 2018).
Growth of small businesses in that area
The small business of Redbridge town achieve growth in its business because the people
of that town go outside for searching employment. So these businesses can provide job and work
to them. There were 5.6 million small businesses at the start at 2018 in the UK and the growth
increased 0.5% in the comparison of last year. These small businesses accounted for 99.3% of all
private sector businesses and 99.9% were small or medium-sized. These small businesses was
provide 16.3 million and 60% of all private sector employment in the UK and the annual
turnover of SMEs was £2trillion which was 52% of all private sector turnover. The overall
business population includes main legal forms, there are 3.4million sole proprietorship, 1.9
million companies and 7% ordinary partnerships. Some problems create barriers in growth of
these enterprises such as labour not become enough resources some entrepreneur do not start the
business.
Comparison of Small, medium and large businesses
Small Business Medium Business Large Business
Within this business, there
should be 50 employees and
turnover more than £6.5.
In this business, 250
employees should be there and
turn over more than EUR 50
million.
More than 1000 employees
should be there and turnover
EUR 1 billion.
The equity of the business held
by the founder and family.
Mostly held by the family and
few with public.
The equity held by mostly
public investor.
10

The decision are taken by
owner related to business.
Decision making process done
by owner, CEO and some key
leaders.
The decision making
distributed by organisational
hierarchy.
Inn this business, there are
limited personnel development
opportunities.
There are personal
development limited ton key
employees.
There are multiple career paths
and programs.
There are small number of
customers and based on local
market.
It is limited customer base and
limited to geographical or
industry niche.
There are divers e market and
international customers.
In this business, there are little
external input mostly from
friends and network.
There little customer inputs
but little large than small
business and sources are same
friends, network and trusted
professionals.
There are significant external
inputs from network &
consultants and they have
separate governance structure.
The source of funds are friends
and family.
Funds are get through
government under their
business policies.
The source of funding, are
banks, ventures, non financial
institutions and others.
11

From the above graph, it has been analysed that micro and small business create
employment for the country and help in increasing social economic growth. These businesses are
contributing more than 40% in the employment enhancement of UK that create a positive impact
on the economy of the country. Data and facts to illustrate the manner in which micro and small
businesses posses impact on the economy of UK are stated beneath:
Small and Micro businesses Contribution in growth of UK
Particular Number of Employees Total Assets Annual Sales
Micro Enterprise <12 ≤ £2.5 m ≤ £2 m
Small Enterprises <60 ≤ £12m ≤ £09 m
Medium Enterprises <280 ≤ £55 m ≤ £47 m
( Source: UK Small Business Statistics, 2017)
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Statical data stating the impact on economy of UK is mentioned below:
 In United Kingdom, approx 5.9 million small firms are successfully operating the year of
2017.
 Due to these businesses, employment opportunities have increased by 25-30%.
 These micro businesses posses 95% shares in marketplace which is around 5.5 million.
Due to this, opportunities for people have considerably enhanced and they are enjoying a
independent and standardised lifestyle.
 Total turnover of both small and medium sized businesses is around 2.0 trillion pounds
that is near about 52% of total revenue incurred by private sector firms.
 Around 23% of SME's are dealing in quarrying, mining, utilities and construction sector.
 Near about 17 million people are employed under these small and medium sized business
which are around 60% of total population residing in UK.
Merits of these businesses on the economy of UK is that these businesses results in
providing wide job opportunities to the people in UK due to which the issues and problems faced
due to Brexit have been reduced to a great extent. Another advantage of these businesses to UK
is of infrastructure development. This is because as market is stabilizing due to these businesses,
government is getting taxes and custom duties. Revenue form these aspects are used by
government to create and develop infrastructure and other governmental places which provide
welfare to people.
Impact of SME's on UK economy
Local impact- In the economy of UK, SME's creates 60%-70% of overall employment
opportunities to the peoples. These enterprises account around 95% of organisations and there
scale of production make a positive impact on economy as it make contribution in discharging
maximum tax. These enterprises helps at local level by generating various employment
opportunities for youths and up coming generation and manage the living standard of the local
people. These businesses are providing 64% employment every year and support the market.
Regional impact- Currently, there are more than 5million SME's in UK and operating in
economy of the UK. By adopting latest and new technologies or ideas these organisations
contribute and put their efforts to fulfil needs and requirements of different market segments.
National and international impact- Start ups and small business both plays an important
role at national and international level of UK economy. According to the statics, these businesses
13

provide over 67% of UK's employment in which direct employment to 25 million people and
indirect emplacement to 1.6 million people that make contribute more than 50% of nations GDP
(Role of SME's in the UK Economy, 2012).
Contribution of Small businesses in social economy of UK:
After Brexit, People and government in UK have faced many different situations and
conditions. After withdrawing for European Union, most of the large organisations got impacted
and some of them were closed down. Due to which people become jobless and their income
reduces. This was a stressful situation for people as society was widely impacted from the Britain
exit. In that situation, many small businesses were opened up due to which people have resolved
their income and revenue issues. With the opening of these firms, those people which were not
financially stable to open up their own business got working opportunities due to which people
became independent of gevernment and manage to earn their livelihood.
Conclusion
In this task, it is concluded that the small business of Redbridge help and contribute in the
economy of the town by providing employment and doing work for the welfare of the society
such as providing employment, generating government and council revenue, by generating
income and creativity or innovation in the products and services. The growth and the
development of the small businesses in the context of town are also defined. The comparison of
small, medium and large businesses are explained in the task.
TASK 2
(Covered in PPT)
CONCLUSION
This assignment is based on the small business of entrepreneurs and in this report
concluded about the various types of entrepreneurial ventures and examine the scope,
development and growth of them. The impact of micro and small business on the economy are
explained in the assignment that how they they effect the business start ups to the growth of the
social economy. The characteristics traits, skills and motivational drivers are explained which
make them differentiate from other business managers. The background and the experience of
14

them are also described which influence them both positively and negatively towards their
setting goals.
15

REFERENCES
Books and Journals
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Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development.20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship
& Regional Development.25(7-8). pp.692-701.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
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management: principles anNational and international impact of SMEd practices for
sustainable operations and management. Kogan Page Publishers.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
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Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
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entrepreneurship as a field of research. Academy of Management Review.37(1). pp.10-
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Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
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Online
Entrepreneurship. 2018. [Online]. Available Through :
<https://www.shopify.in/encyclopedia/entrepreneurship>.
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<https://medium.com/@BitPopulous/sme-growth-and-contribution-in-the-uks-economy-
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<https://thoughteconomics.com/the-role-of-smes-in-the-uk-economy/>.