Unit 09: Entrepreneurship Small Business Management

Unit 09: Entrepreneurship
Small Business Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Types of entrepreneurial ventures and the typology of entrepreneurship.............................3
M1 Diverse range of entrepreneurial ventures.............................................................................4
D1 Scope, development and growth............................................................................................4
P2: Similarities and differences between entrepreneurial ventures.............................................5
TASK 2............................................................................................................................................6
P3 Small Medium – sized Business Entrepreneurship impact on United Kingdom economy....6
M2 Difference small, medium and large businesses...................................................................6
D2 Impact of small business on the economy.............................................................................7
P4 Importance of small businesses and business start-ups to the growth of the social economy7
TASK 3............................................................................................................................................9
P5 Traits and skills of successful entrepreneurs..........................................................................9
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.........................9
TASK 4...........................................................................................................................................9
P7 Person backgrounds and past experience hinder or foster entrepreneurship..........................9
M4 The link between entrepreneurial characteristics and influence...........................................9
D4 Positive and Negative impact.................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
An entrepreneur is a person who holds small business and run a small business. They
provide their services to earn profit and for the satisfying the needs of consumers.
Entrepreneurship the owners of the business will concentrating on designing or shaping a market
for their own products and services ( Saleem, 2017). It is beneficial for improving the living
standards and for bring change in the market.
In this study will conclude the types of entrepreneurial ventures and the typology. This
study will also include similarities and difference between entrepreneurial ventures (Burns and
Dewhurst, 2016). In this study will also discuss small medium sized business and its impact on
the economy of the UK. Also, in this study will summarised the importance of small and start-
ups business on the social economy. This study will also be explaining about traits and skills of
successful entrepreneurs, which make them different from other business person. Also, this study
will present that how personality of entrepreneurial reflect motivation and mindsets. And also,
discuss the background and experience of entrepreneurship.
TASK 1
P1: Types of entrepreneurial ventures and the typology of entrepreneurship
Micro Venture: Micro venture and business are those venture whose annual sales and assets are
less than $250,000 per year. In this type of business numbers of employees are five or less than
5, also including the owner of the business (Burns and et.al., 2017). Micro venture are small size
businesses and the operating costs of micro business and revenue are higher.
Small Venture: Small venture are those business in which the numbers of employees are 500 or
less than 500 and the assets of small venture are less than $1 million each year. In this type of
business, enterprises are run independently and the main object or target of this of business are
earn profit (Julien, 2018). Small ventures are generally impacted by the recruitment procedure
and the tax structure when it is to small venture payroll system.
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Medium Venture: Medium venture means a type of start- up business. This type of venture
future target is bringing some new change in the society and also have some new vision to
change the world. These types of venture collect money and take financial support from the
investors, venture capitalist etc.
Large Venture: Large venture are those business whose life cycle is for long time duration.
Also, these types of companies offer and serve those types of products and services who are
related with their core products (Ramadani, Ratten and Palalić 2018). These types of venture
bring new changes as per their customer taste, latest technologies, competition etc.
The typology may include
Serial entrepreneur: A serial entrepreneur a person who are start various types of new business
in short time period. Serial entrepreneur is a person who have new and different idea for starts
new business and continuously work on those ideas.
Social entrepreneur: Social entrepreneur is a person who start and run a business on the bases
of their novel knowledge (Volery and Mazzarol, 2015). Social entrepreneur has the ability to
solve issues and problems who are based on the community and society. These types of
entrepreneur have ability to take risk to make positive and profitable change within the society.
Female entrepreneur: Female entrepreneur means, those women who start their own business
and run their organization successfully. In this numbers of women entrepreneurs are included
such as Sofia Vergara, Angela Market, Debbie Fields etc.
M1 Diverse range of entrepreneurial ventures
In the public sectors large and medium-sized venture ratio is high. Because various public
sectors are completely depends upon the pubic so, the size of public sector is big. But in the
corporate sectors many entrepreneurs are base on small and micro size. Because in the small and
micro business public can not that much involve.
D1 Scope, development and growth
The scope of entrepreneurial venture is wide, and they can expand venture in area of the
market. Also, high ratio of scope, the venture developing at every sector of market and achieve
high level of growth.
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P2: Similarities and differences between entrepreneurial ventures
Similarities in different entrepreneur:
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Basis Micro Venture Small Venture Medium Venture Large Venture
Meaning Micro ventures
are very narrow
types of
business or
enterprises and
they have 5 or
less 5 numbers
of employees.
Small venture
are those types
of business
which have 500
employees in
the organization
and together run
a business
(Julien, 2018).
Medium
ventures are
some large and
big than micro
and small
venture. They
are generally
type of start up
business with
clear vision.
Large venture or
business are those
entrepreneurships
who are establish
in the market
from the long
time and have
great image in the
business market.
Size The size of
micro venture
is very narrow.
Size of small
venture is
bigger than
micro venture
but smaller than
medium
venture.
The size of
medium venture
is bigger than
small venture
but they are
small than large
venture (Mugler,
2017).
Large venture size
bigger than all of
three types of
venture.
Objectives The main
objective of
medium
venture is run
business in the
market.
The main
objective of this
business is
earning profit.
The target and
major objective
of the medium
venture is not
only earning
profit but also
bring some
change in the
society and
world ( Saleem,
2017).
The main
objectives of the
business are
earning profit and
also design
products and
services as per
customer interest
and also
competing with
competitors.

All the entrepreneur target is earning profit. They all are establish for making profit and
provide services to the customers (Degravel, Wilkin and Zhou, 2016). Also, the major
similarities in those entrepreneurs is that they all are facing some types of competition in their
market and try hard to sustain in the market. All the venture is start from medium position and
grab large market share, and establish their business strongly in the market. They all are also
participating the act ivies which are based on social welfare.
TASK 2
P3 Small Medium – sized Business Entrepreneurship impact on United Kingdom economy
Small business is making positive impact on the United Kingdom economy. Small and
medium- sized business is participating in 98% private sector businesses of UK (Doern, 2016).
With the help of small and medium- sized business entrepreneurship, UK get very innovation
idea for successfully drive private sectors business in the country. In UK 98% business are run in
private sectors and those business are contributing £1.9 trillion each year in the United Kingdom
Economy. In UK 5.8 million small sized businesses are start in 2019. If this ratio is compared
with the previous year than it is increasing by 3.5% which means +200,000 business are establish
in the UK, that are contributing the economy of country (Mugler, 2017). With the help of SME’s
business economy of UK is become much stronger than last previous years.
SME’s and UK Economy
In 2019, total numbers of small and medium sized business are 5.82 million and the total
business is from the SME’s is 99.3%, which is profitable for economy of United Kingdom.
SME’s of UK have 3/5 part of the employment and also have half turnover of UK private
business sector (Hornsby and et.al., 2018). UK SME’s business are also get impacted after the
implication of Brexit in the country. Just because of Brexit 19% business of SME’s is goes
down. Also, small medium-sized business tries or plan to leave UK market after the implication
of Brexit.
M2 Difference small, medium and large businesses
On the bases of above calculation data, small, medium and large business are make deep
impact on the economy of the country. After the development of small, large and medium
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business the economic condition of United Kingdom, are improved and it is increasing by high
level of ratio. Just because of all these types of ventures country is in profitable situation.
D2 Impact of small business on the economy
Small business very important at all level of economy such as local, regional, national.
Just because of small business establishment local market become stronger by the economy side
and it is support regional market for enhancing their economy. The both sectors are helping to
enhancing the national economy condition of country.
P4 Importance of small businesses and business start-ups to the growth of the social economy
Opportunity and Threats of Brexit:
Opportunity Threats
Brexit also brings some opportunities for UK.
According to Brexit, it is cost saving (Doern,
2016). And after the Brexit UK also place in
the world. Because EU members faith that it is
help UK to re- establish in the world.
The major threat of Brexit is that it is reduce
the attraction of UK market. Before the
impaction of Brexit Nissan wants to invest in
UK market but after the Brexit UK economy
lose this chance.
Difference between Small Business and Start-ups business:
Bases Small Business Start-Ups Business
Innovation In the types of small business
there is no focus on any kind of
innovation.
But business like are start-ups
generally runs upon the new
innovation and ideas (Turner
and Gianiodis, 2018. The main
targets of start-ups are creating
something new which attract
customers.
Scope The scope of small business is
narrow (Yan and Yan, 2016).
They are put limitation on the
business growth and also serve
The scope start-ups business is
wide and they serve their
services at large market share.
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their services at the limited
circles of customers.
Growth Small business growth rate is
high and also earn profit. Small
business expand in the certain
area.
Start-ups and innovation of the
star-ups business also grow and
also grow in the short time
period. It is completely
depending upon the innovation.
Small business and start -ups are very much important and play significant role in the UK
economy. They are important in UK several ways these are:
Improvement in Turnover: This is very important for enhancing the turnover of UK country.
Because small and start- ups business contributing in UK economy £2.0 trillion in 2018. Also,
just because of SME’s UK most of sectors are privatize and they are aggressively participating to
enhancing ratio of UK economy (Ramadani, Ratten and Palalić 2018). Just because of high
contribution of small and start-ups business UK economy is continuously grow.
Employment: In UK SME’s are also contributing for creating employment in the country.
According small and start-ups business individual can work freely and also receive employment
for surviving. Small and start-ups business providing 16.3% million peoples employments and is
60% of private sectors. With the help of this type of contribution country people are getting
employment and that’s how they are also participating for making economy of country stronger.
Growth: When will taking about the growth of the business, SME’s are doing good. With the
help of SME’s business plan UK peoples are getting employments, and also 50% of SME’s are
trying to expand their business operations (Volery and Mazzarol, 2015). Just because of this
manufacturing business owners are become more confident and the business of manufacturing is
improving by the 32%.
Expansion of Economy: Small and start-ups business are also helpful for enhancing and
expansion of UK economy. Just because of employment rate, new business and start ups the
economy of country are become stronger (Turner and Gianiodis, 2018). Because flow of money
is enhancing in the country. Also, because of small and start-ups business new business and
industries are establish in the country and they are also contributing economy of the country.
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TASK 3
P5 Traits and skills of successful entrepreneurs
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
P5 and P6 cover in ppt.
TASK 4
P7 Person backgrounds and past experience hinder or foster entrepreneurship
Various reason and things can hinder and foster entrepreneurship. Growth and decline of
entrepreneurship are depends upon the various factors that is background of family, cast, race,
religion, creed and many aspects (Burns and Dewhurst, 2016). Also impacted by person own
characteristics, traits and skills (Yan and Yan, 2016). Because every person has different
personality and that personality play significant role to become a successful entrepreneur. If
person have quality and skills, they can become entrepreneur but if they have not having those
types of qualities, skills and personality it become hinder and barrier for them.
For becoming an entrepreneur individual tries various things, brings various changes in
the personality and also in the society. This quality of person very much helpful for becoming
successful entrepreneur (Burns and et.al., 2017). Person has to be facing various types of
problem for becoming successful entrepreneur such as financial, societal, market, environmental
etc. Person have to be facing all of these types of problems and barriers to become successful.
Individual also enhance their qualities and capabilities to improve their personality. Individual
brings changes like in their skills, traits, qualities which foster person towards their target. Make
them motivated towards the goal and remain their mindsets positive.
M4 The link between entrepreneurial characteristics and influence
Entrepreneurial characteristics such as honesty is influencing the clear and calm
behaviour of the person. Because in these types of business honesty is very important and with
the help of honesty entrepreneur improve themselves and influence other as well.
D4 Positive and Negative impact
The most important factors that will affect or impacted the entrepreneurship is the
experience of person in which person grows up. Entrepreneurship can be affected by the nation
culture, if the national culture is not supporting and person have bad impression about national
culture. For an example entrepreneurship also impacted by the education types, if person will not
get good education from the family or school, college it can be hindered the entrepreneurship.
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CONCLUSION
From the bases of above study, it has been concluded that how entrepreneurship small
business are important in UK economy. In this study has been discussed entrepreneurial ventures
which includes small venture, micro ventures, medium and large ventures. And also discussed
typologies such are serial, social and female entrepreneurs. In this study has been also concluded
the similarities and difference between entrepreneur venture and also show the opportunities and
threats of Brexit. Above study also summarised the impact of small business and start-ups
business on the social economy. This study has been discussed the traits and skills of Richard
Branson and Peter Jones. And also, in this study will show the reflect on motivation and mindset
through the Big 5 Personality Trait theory. In the end of the report has been concluded the
background and experience of entrepreneurship with examples.
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REFERENCES
Books and journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P and et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management. 55. pp.27-
42.2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Ramadani, V., Ratten, V. and Palalić, R., 2018. Special Issue on Family Entrepreneurship in
Transition and Emerging Economies.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small Business
Journal. International Small Business Journal. 33(4). pp.374-396.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-175.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management. 56(1).
pp.131-149.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal. 12(4). pp.1053-1077.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International Small Business Journal. 34(3). pp.276-302.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).Schaper, M. ed.,
2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC Press.
Hornsby, J.S and et.al., 2018. Entrepreneurship everywhere: across campus, across communities,
and across borders. Journal of Small Business Management, 56(1), pp.4-10.
Degravel, D., Wilkin, C.L. and Zhou, X., 2016. The'fluid paradigm': the impact of national
culture on small business management. Journal for International Business and
Entrepreneurship Development. 9(1). pp.62-87.
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