Characteristics of Successful Entrepreneurs

SMALL BUSINESS
ENTREPRENURSHIP

Contents
SMALL BUSINESS ENTREPRENURSHIP.....................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
P1. Various type of entrepreneurial ventures and relation to their typology...............................3
P2. Similarities and difference between entrepreneurial ventures...............................................4
P3: Impact of small and micro businesses on UK Economy: -...................................................6
P4: Importance of small businesses to the growth of UK Economy:-.........................................7
Part 2................................................................................................................................................9
Covered in PPT............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business, which
is often initially a small business. The people who create these businesses are called
entrepreneurs. Report will highlight London Borough and the company who are listed in it.
The London boroughs are the 32 local authority districts that make up Greater London; each is
governed by a London borough council. Present study will lay emphasis on the various types
entrepreneurial ventures. It will also highlight the impact of small and micro business on UK
economy. Report will also focus on the similarities and difference between the entrepreneurial
ventures. It will also highlight the impact of SME on national, regional and local level.
Part 1.
P1. Various type of entrepreneurial ventures and relation to their typology.
Types of entrepreneurial ventures
Micro enterprise is generally defined as a small business having a balance sheet or
turnover less than a certain amount and have simpler financial reporting requirements. Micro
enterprises must meet any of the following two criteria. Total number of employees should be 10
or less. Turnover of 632,000 pounds or less & gross assets of 316,000 pounds or less.
For example: small barber shop, grocery store etc.
Small enterprise is defined as a small business meeting any of the two criteria It should
have up to 50 employees. Turnover more than 632,000 pounds but less than 25 million pounds &
gross assets less than 12.5 million pounds. For example: Confectionery, Restaurant etc
Medium sized enterprise meeting any of the two criteria it should have up to 250
employees. Turnover should be less than 25 million pounds & Gross assets of less than 12.5
million pounds
For example: Call center, hotel etc.
Large enterprise is an enterprise that checks at least one of the following two conditions
it should have more than 250 employees. Turnover more than 25 million pounds & gross assets
of more than 12.5 million pounds. For example: Factory, Broadcasting house.
Typology of Entrepreneurial Venture

Survival firms: Survival firms are the firms which are in state of being familiar with
recession and entrepreneur keep their firm afloat by postponing spending, hiring and long term
goal is to focus on staying alive another day. These firms focuses on cutting costs, laying off
employers, tightening profit margins and saving cash. Mostly micro & small enterprise fall in
this category that have recently started their operations.
Lifestyle firms: These firms are created with the purpose of altering the personal
lifestyle of the entrepreneur and not for the sole purpose of making profits. A lifestyle
entrepreneur focuses more on the life rewards provided to people that enjoy and have passion for
what they are doing. These enterprises are not meant for profit motive alone these are the firms
which are created for self-satisfaction by the entrepreneur and can outgrow to medium and large
scale enterprise.
Aggressive growth firms: Entrepreneur of these firms adopts strategies which involves
active programs to expand into new markets and stimulate new opportunities. New product
development is vigorously pursued and offensive marketing warfare strategies are common for
additional market share. In this profits are reinvested, operations are expanded and growth
strategies are brain stormed with long term payoffs. Mostly medium and large scale enterprises
fall in this category when earning maximum profits, the firms try to gain new markets (Welter
and et.al., 2017).
Social enterprise: A social enterprise is a commercial organization that has specific
social objectives that serve its primary purpose. Social enterprise seeks to maximize profits while
maximizing benefits to society and environment. Profits are principally used to fund social
programs.
P2. Similarities and difference between entrepreneurial ventures
Micro enterprise Small enter-
prise
Medium sized Large enter-
prise
Number of em-
ployees
Maximum num-
ber of employees
are 10 or less
More than 10
and less than
50
It can have up
to 250 employ-
ees
It can have
more than 250
employees
Turnover 632,000 pounds
or less
more than
632,000
less than 25
million pounds
more than 25
million pounds