Small Business and Entrepreneurship

This report explores the various types of entrepreneurial ventures in the UK, including micro, small, medium, and large enterprises. It analyzes their similarities and differences, their impact on the economy, and the role of government support in their development and growth.

SMALL BUSINESS AND
ENTREPRENURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
REFERENCES................................................................................................................................2

1
SMALL BUSINESS AND ENTREPRENURSHIP
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Bradley, S.W. and Klein, P., 2016. Institutions, economic freedom, and entrepreneurship: The contribution of
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Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
CONCLUSION
The above Report has described different types of entrepreneurial ventures, similarities and differences between them
and scope, development of entrepreneurial ventures. The Report further explained the impact of micro and small
business on the economy of U.K., importance of small business on growth of social economy, impact of small business
in growth of social economy of U.K.
Importance of small businesses to the growth of social economy.
Social economy- Social economy consists of wide range of enterprises such as mutual, foundations, social
enterprises, small medium size enterprises etc. All these enterprises share similar values. Social economy
describes the relationship between behavior of customers in society and economy.
The small business plays an important role in the growth and development of social economy of U.K. Social
enterprises like small and medium size enterprises are responsible for creating job opportunities in the
country. Small business contributes more than 5.6% to the employment in U.K. Social enterprises are
performing well and helps in development of social economy. Small business is working with other
organizations for providing jobs to the peoples. In year 2017, small business has generated revenue more than
£450 million.
Social economy of U.K. is showing continuous growth because small business is performing their activities to
achieve objectives related with society and environment. Enterprises helps in meeting the demands of society.
The social enterprises help in strengthening the skills of employees working in these enterprises and they help
in developing local economy and also contribute for the economic development of U.K. In last four years,
M2) Differences small, medium and large businesses make to the economy,
Small and medium size business in U.K. Have less than 250 employees. Government of U.K. Is providing
funds to more than 60% of the total small and medium size business in the country.
The role of small medium and large business in the development of U.K. economy cannot be underestimated.
In U.K. Small business has accounted for 99% of the total business in private sector. They are providing
employment to more than 15.7 million peoples of the country. That accounts for 60% of the total employment
in U.K. Small and medium size business has contributed a lot to the innovation and develops new ways of
doing business in U.K. Through extensive research and development activity. These enterprises help in
improving the productivity of business due to which it has resulted in economic development of country at
different levels.
D2) How small businesses have an impact on different levels of the economy.
There are different ways in which entrepreneurs are contributing to the economic growth of U.K.
Entrepreneurs enters in the market with innovative product or service that helps in improving the standard of
living of the peoples. Entrepreneurship helps in removing the conflicts at regional level that leads to
improvement in less developed areas of the country such as public. transportation, education etc.
Entrepreneurs helps in reducing the impact of economic power of few peoples in U.K. Entrepreneurs in U.K.
helps in proper distribution of wealth in the country.
Entrepreneurship provides various opportunities to the employees of U.K. They contribute to the gross
domestic product of U.K. At interactional level, entrepreneurs contribute in the exports of U.K. Entrepreneur
helps to promote the quality of communities of U.K. and improves the deficit in balance of payment of the
country.
Similarities and differences between entrepreneurial ventures
Similarities between micro small medium enterprises are as follows-
•All the types of entrepreneurial ventures requires a new idea to start a venture.
•Micro small medium and large enterprises require funds for operating the business whether less amount or large amount.
• All types of entrepreneurial ventures require workers for performing various functions.
HEADING MICRO SMALL MEDIUMLARGE
Number of workers Micro enterprises requires less than 10 employees’ Small enterprises employs up to 50
employee’s Medium enterprise requires less than 250 employees It requires more than 250 employees
Amount of capital in case of manufacturing industry funds require up to £27,687. In service sector up to £11,075.
In case of manufacturing industry funds require more than
£27,692 and less than £ 5,53,756. In service industry funds require more than £11,073 and less than £2,21,538 In case of
manufacturing industry investment more than £5,53,859 and less than £11,07,719. In service sector more than £2,21,626
and less than £5,54,128 _
Example Cafe, ice-cream parlor Law firms Food processing industry Auto mobile industry
HEADING SERIAL ENTREPRENEURSHIP INTRAPRENEURSHIP MANAGER
Meaning An entrepreneur who continuously come up with new ideas and play an important role in functioning of the
business. An intrapreneur helps the business through promoting new products. And helps in product development.
The person who is responsible for conducting all the managerial functions.
Takes all the risks related with business
Takes moderate risk
All the risk is borne by the company
M1) Diverse range of entrepreneurial ventures.
There are different categories of entrepreneurial ventures they are as follows-
Serial entrepreneurship- Entrepreneur is the person who has an innovative idea and invest in various types of resources
such as human resource, fixed assets etc. Entrepreneur bears all the risk related with new venture and receives all the
rewards. Serial entrepreneur helps the business in product innovation, developing new business model etc. Entrepreneur
starts business with an objective of earning huge amount of profits.
Intrapreneurship- An intrapreneur focuses on solving particular problems that are happening in the company and not
focuses on whole business. Specific issues can be like increasing the productivity of the enterprise, they have ability to
visualize the level of competition and make efforts for success of the business.
Manager- Managers are responsible for managing human resource of the enterprise. They are responsible for performing
managerial functions. Managers have authority to make organizational changes. Entrepreneurs in public sector of U.K. are
of different types such as executive entrepreneurs, bureaucratic entrepreneurs etc. They help to create value for society,
they like taking moderate risk. Private sector entrepreneurs in U.K. focuses on external factors to make changes in the
business. They take big risk related with enterprise.
D1) The scope, development and growth of entrepreneurial ventures.
Entrepreneur always assumes full responsibility of taking risk for earning profits. Despite the economic crisis in year 2009
in U.K. entrepreneurs have managed to contribute their efforts for the success of business during recession. The
government of U.K. has provided full support for the growth of enterprises. Government helps the entrepreneurs to start
their business in London, provide funds for international trade, provide necessary help for facing economic as well as
financial challenges. Government has implemented various measures for development of entrepreneurship in U.K. such as
providing loans to small business, providing guarantee to lenders, grant funds for development of business etc.
Entrepreneurs have faced many difficulties during the recession, government has developed various schemes to support
small and medium enterprises.
Different types of entrepreneurial ventures.
There are various types of entrepreneurial ventures they are as follows-
An entrepreneur is a person who establish a new business. Entrepreneur is responsible for all the gains and
losses of the entrepreneurial venture.
Small Enterprise-
A small enterprise is operated at a small level. They have a smaller number of employees and does not
generate large volume of sales. Small businesses are generally owned by private individuals, corporations or
by sole proprietor. There are various types of small business such as grocery stores, carpenters etc.
Micro Enterprise-
Micro enterprise is the business that employs few numbers of employees. It employs less than 10 workers
and requires less amount of funds. Example- bakery etc.
Medium Enterprise-
These enterprises are operated at scale more than micro enterprise but less than large scale enterprise. It
employs more than 100 but less than 1000 employees.
Large Enterprise-
These enterprises require large amount of capital, more employees etc. Example of large-scale enterprises
are auto mobile industry, iron industry etc.
Typology-
Social-
Social enterprise refers to a business that implements various strategies for providing solutions for the
problems related with environment, society and culture.
Scalable-
Scalable enterprise refers to starting a new venture and entrepreneur make efforts for taking the business at
higher level.
Serial-
Serial enterprise refers to an enterprise in which entrepreneur continuously generate new ideas and plays an
important role in success of enterprise.
INTRODUCTION
Entrepreneurship refers to a process of starting a new venture. It can be described as a willingness of entrepreneur to take
risk to earn profit in the business. There are various features of entrepreneurship such as starting a new business involves
high degree of risk. Entrepreneur should be able to take risk in order to earn profit. There must be a new idea for starting
the business such as a new product. Entrepreneur should have a vision and strong leadership quality.
The person who take risk for starting a new venture is called entrepreneur. Small business is operated by an entrepreneur
at small level. There are different types of small business such as private corporations, sole proprietorship, partnership etc.
Example of small business are grocery stores, small scale manufacturing etc.