This document provides an overview of entrepreneurship and small business management. It discusses the types of entrepreneurial ventures, differences and similarities between them, and the impact of micro and small entrepreneur businesses on the economy. It also explores the characteristic traits and skills of an entrepreneur.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Entrepreneurship and Small Business Management
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
EXECUTIVE SUMMARY Small, medium and micro enterprises have put huge impact on the UK economy. It has provided job opportunities to people and also been engaged in enhancing the lifestyle of people living over there. There are various skills and traits of entrepreneurs that has differentiated them from business managers. Traits such as honesty and integrity, communication and decision making have foster the growth of entrepreneurs.
INTRODUCTION Entrepreneurship isaction which creates a new business where group of peoplesand individuals stay and work together and take step into making the world better place. To build a better world where everyone feel good. Entrepreneurship is setting business on your own and starts a business where there is no other boss and they work instead of working for someone else. Under this entrepreneurship there is new term which introduce entrepreneur is an individual who Is the one started the enterprise and one who had creative idea to do something new, innovative and who is always willing to take risk. There are various Enterpriseincludes small business, medium business and large business. Entrepreneurship always focuses on the goals of achieving profits in the competitive markets beyond the emotions of the entrepreneur. Entrepreneur is the individual who is always ready to take risk and generates creative ideas and innovation which leads them towards the bright future. A small size businesses are not always focused on profit generation they work as small business. This report also the brief study about the roles and responsibility of entrepreneur and nature and techniques of small business and what are the tools and techniques they follow for surviving there enterprises in the market. Report will highlight the various types of entrepreneurial venture TASK 1 P1.Types of entrepreneurial ventures TherearefewtypesofentrepreneurshipwhichareSmall,mediumandlarge entrepreneurship plays an important role in the contribution of the economy in different levels of the economy like local, regional and national it will increase the growth of economy and help the country to increase gross rate on domestic product in these levels. Largecompanyentrepreneurship:large-scaleentrepreneurshipalwaysgivespecial importance on the success and the growth which helps them to earn more revenue and profitabilityaslongterminthebusinessenvironment(VoleryandMazzarol2015).the developing the new ideas, techniques, innovation for achieving the profits of the company, due theentranceofglobalizationanddigitalisationfaceslotsofproblemsforlargescale entrepreneurship. Social Entrepreneurship:for the social, culture and environmental issues which is taken by the start-up companies and entrepreneurs . Social entrepreneurship is a approach which help the
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
startups and new ventures by individuals and group of peopledevelop a creative plan and innovateidea.Socialentrepreneurarethose peopleswho work for non- profit andthis entrepreneurship typically measures performance and they work for the society and return for the societytheyalwayslookfortheinnovativeideaswhichcanhelpthesociety.Social entrepreneurship is followed by different ventures these ventures help in determining the legal rights and taxable amount of the Angel Cars in the UK these ventures are sole proprietorship, general partnership, LLC, LLP, limited partnership and corporation. Typology of entrepreneurship Lifestyle entrepreneurship: Under this type of enterprise or venture entrepreneur establishes their business for the purpose of their lifestyle not for the basic profit basis. This kind of ventures always more focused on the quality of the product and services and provides to its end users which are customers as they believe in increasing the lining of the standards of the populations. Speculative Ventures :The entrepreneurs of this venturestats withthe aim to show the competitors and investors the efficiency and the innovative ideas and there way to take risk generates which will increase the profitability ofthe venture there will be many speculators who will be analyzing the potential of the venture and will approach the entrepreneur to purchase the concept and make profits from it by their own. Types of entrepreneurial ventures MICRO ENTERPRISES:this enterprise generally called as small business where there are only or fewer people like 9 man and woman works for a specific goal with creative idea and having a balance sheet or turnover less than certain amount of 2 million US$(Hatten 2015). In the small scale entrepreneurship UK has a different facts and figure where they provide free advertising services to the business from 2002 by which they can give platforms to more and more new idea and it gives employment and helps in growth. 99.3% business of the UK are running and coveringby the small businesses . Small business are less than 4% and there is 10 to 49 employed in every company of the small business. There are various small businesses in the UK these are Angel cars, D L consultants, meet yoga coaching, DCTV, Red bus bistro and archipelago, the bowler and may more in the small scale business.
MEDIUM ENTERPRISES:medium-sized enterprises are those businesses which deal with other company at some size which usually showed by the numbers or looking at the numbers of the business is known as medium enterprises(Gibson 2017). Statistics of united kingdom shows that the medium scale business of the government of UK 0.6% businesses of the UK are under the medium-sized businesses. These type ofmedium size business include 50 to 249 employees which help in generating profitability in per year This will increase the medium scale business which depends on increase in profit margins from this it will increase the size of the business. Medium scale business growth depends on the entrepreneur and the creativity and innovative idea'sproblem solving ideas and communication skill of the entrepreneurs. Medium enterprises also help in the growth of the country and plays a vital role in the GDP and will decrease the unemployment. Medium scale business need more capital as compared then small scale enterprise. Medium size business also expand their business to the national level by transportation this will bring growth in economy and increases the profitability of the businesses. For example of the medium enterprise are captify, smith brothers,john good shipping, checkout.com, giacom many more in united kingdom running successfully. LARGE ENTERPRISES:these are the business which are established and working in the industry from more than 30-5- years. Large scale businesses runs there businesses in various industry and enjoying the high profit margin. Large business enterprises of United kingdom like TESCO, Amazon, Marks and Spencer, Unilever Vodafone has large production and supply over local, regional, and national and at the international level as well and it will also increase the growth rate of the UK and these large scale business plays a vital role in the employment. As theygivemoreandmoreemploymenttotheunemployed(ZeyenandBeckmann2018.). Unilever have $50.982 billion revenue in the UK and it has the most successful business, Vodafone plays an important role in the contribution of GDP in economy of the UK as because it has the 9thposition in the list of highest generating profit and revenues. Revenue of Vodafone is over 446.571 billion. P 2 Differences and Similarities between Entrepreneurial Ventures Similarities Micro, medium and large enterprises have a similar and focus on the profit generation.
They all micro, medium and large enterprise pay respect to their cost and their strategies. Satisfaction of all three are same they always aimed towards the customer's satisfaction and large, medium and micro all the entrepreneur of these enterprises are customer centric. All entrepreneurs are customer driven. They all work for customers satisfaction and they spot the need of the customer and innovate new in the market. They all innovators and risk taker they all three never feel shy and never get afraid of taking risks. All the enterprises has tendency to increase their sales and build their productivity by using different marketing strategy according to their industry and products and services. Differences BasisMicro enterprisesMedium enterprisesLarge enterprises Growth rateLow,astheyhavelow investment and low number of customer, that is why they low growth rate Moderate, Dependence on the right strategies at the medium level of enterprise will grow rapid andgrow annually as well. Highastheymake largeandhigh investmentpolicies and they also invest in hightendencythey surely growth as high rate of profit. Managerial focus Theydonothavehigh number of staff so they do not focus on the managerial strategies(Järvi 2015). They appoint others who take care ofemployees and staff to increase the workefficiencyand effective workforce of the enterprise. Theyworkwiththe hierarchy as they are largeenterprisesso they good amount of staffandemployees delegationtodivide theirworkloadto
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
increasethe productivityofthe enterprises. Time Horizon They do not concern for the longtermenterprisesand only focuses on the customer satisfactionandrevenue generation. There life span of business islongtermedandalso tendencytobuildthe quality of the products to reachtheexpectationof the customers. Theyalreadyhave longtermedlifeand they always focus on longlifeofthe enterprise as company investedthelarge amount of funds in to increasetheproduct potential and long run in the market. InnovationLimitedModerateproactive P 3 Impact of Micro and Small Entrepreneur Businesses on Economy. At the start of 2019 there were 5.82 million small business with 1 to 49 employees having 99.3%of the total business. SME's account for 99.9% of the business population. Small and medium enterprises have a very large impact on UK economy as they contribute 47% in overall growth of UK(Staniewski 2016). SME is a major factor in giving employment to the population which increases the per capita income and also living standard of the economy. As small industry plays a vital role in the economy of the united kingdom as they help in increasing GDP and national income of the country. SME account for three fifths of the employment and around half turnover in the UK in private sectors. Total employment under the and around half of the turnover was estimated by the UK government at £2.2 trillion (52%). UK's government also emphasized on starting their own enterprises by giving them start-up loans and also free investments. The UK private sector business population is made up of 3.5 millionsole proprietorship's (59% of the total), 2.0 million actively trading companies (34%) and 405,000 ordinary partnerships which is (7%) in the UK 2019.
P 4 Importance of SME in Growth of Social Economy SMEs has recognized as an important means of economic growth. SMEs evolves around the united kingdom's boundaries and now plays an important role for the UK government by creating jobs in the market and by economic growth of any nation by giving contribution in gross domestic productand in national income. SMEs sector reduce poverty and generate income for the public. It also facilitates nation's wealth thus resulting in national development. Small and medium enterprise have very major role in contributing the economy of UK as it helped the economy in growing rapidly in past few years this help to increase the efficiency of the country and also created many employment opportunities. TheSME are the backbone the economy it helps the population to gain the living standards and also help them to spend their income according to them because SME provide a large market with variety of products with different price range according to the suitability of the individual(Mugler 2017). SME business is very close to customers as they reach directly to the customer, they're closer to their customers. They're more flexible and get more into business. SME business are able to detect better and take the advantage in the right time of small niches. SME have easy to link the staff to the company as they have small area and small premises to deal with employees. SME provide links between other business that they know everyone knows each other better. SME's are now becoming more and more present in the united kingdom economies. SME have also contributed in converting the competition in positive manner which will help the in contributing in the economy as SME is absent in the market then there will be monopoly of large enterprises which will exploit the customers and will maximize their profits which will not increase the growth of the economy. Task 2 P 5 Characteristic Traits and Skills of Entrepreneur Entrepreneur is an individual who works for the society first and who have an idea, an innovative idea to create something different which no one ever except that thing or thought off. Entrepreneur refers to an individual who establish and operates a business taking higher financial risk any type of risk for his or her idea(Schaper 2016.). A successful entrepreneur should keep different characteristic traits like given below. Entrepreneur is a person who is innovative the first and foremost characteristic of an entrepreneur is innovative, entrepreneur thinks beyond the box and made his innovations into an idea. Entrepreneur is always an open minded guy who realize every event, action and situation in
a business opportunity. Workflows and efficiency creates ideas with different mind alertness. Entrepreneur is risk: taker entrepreneur always ready to take any type of risk which gives entrepreneur ideas to new platform or built his skills and potential to the new business. Entrepreneur is a creative person who bring all creativeness in his or her idea and with his innovative idea entrepreneur can do something big. Strategic orientation: entrepreneur creates ideas and convert into strategy accordingly to perceptive of opportunity and refers to growth in market. While manager utilizes current resources and obtains strategy for business development. Strategic orientation: A successful and effective entrepreneur develop innovative and creative ideas and makes strategies accordingly in order to gain opportunities. On the other hand, a manager makes use of current resources and develop strategies for its business growth. In addition, in the context of an entrepreneur, it can be said that he/she has an effective communication skills which help him out in influencing customers and selling products of its company. He/she is time punctual which makes him/her able to complete important tasks on the time. So, it can be said that passion, time management and communication skills is the key of his/her success (Schaper 2016). Some characteristics and traits of experience includes imagination, complexity, insightfulness, originality, cleverness, planning, self-discipline, ambition, control, energy and hard work. (Schaper 2016). Skills which make differ to an entrepreneur from a manager Strategic orientation:The main characteristic and skill which makes an entrepreneur differ from a business manager is innovation and creativity. Innovation and creativity helps the company and himself in making working environment productive. On the other hand, manager does not bring innovative ideas in working environment as he/she uses current resources and manage business activities. Management structure:Other skill of an entrepreneur is an effective organizational structure of managingemployees.Itusesastructurewhereallemployeesfromdifferentlevelfeel comfortable and can communicate openly with an entrepreneur. It improves their relationship. Whereas, manager follows hierarchical structure according to which employees are not allowed to communicate directly with each other and with the manager. Responsibilities:In the context of responsibility it can be said that a successful entrepreneur take responsibility of making its organization successful and also help employees in their career.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Whereas, manager has responsibility of managing human resources and overseeing all functions whether employees are performing tasks or not. They do not guide employees. Risk taker:Employees are those persons who are involved in taking risk. They are the person who are engaged in taking all type of risk. In this these individuals are known as risk taker. Entrepreneurs work hard so that they can overcome all obstacles which are being faced by them. Thus, this can support them in achieving their business goals and objectives. As it has been analyzed that no business can earn if there owners are not involved in taking risk. While business managers do not have this trait. They are engaged in doing only that work which is being asked to them. Creative and innovative:Entrepreneurs are people who are creative and innovative. They make sure that new ideas are being implemented so that organization is able to grow. In this entrepreneursalsomotivateemployeestobringout newideasso thattheycanhavea competitive idea. Implementing new idea in an organization also requires lot of courage which is notavailableinbusinessmanagers.Sothismakesentrepreneurdifferentfrombusiness managers. Enthusiastic:All entrepreneurs are enthusiastic in which they try to do new things. They work hard to achieve their goals and objectives. They do not feel tired when they are working. They work 24*7 to reach to heights which they are thinking of. Also they motivate others to perform better. This also help entrepreneur in building up bond with other employees which is very useful for them. While business managers do not do this. P 6 Asses how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind set. According to Schumpeter (2011) the entrepreneur is an actor that has the ability to drive and carry out innovations. The entrepreneur is a dynamic actor that has the will to change. In order to implement successful ideas, the entrepreneurs must collaborate with the employees of the organisation. The prime motivation for entrepreneur is not profit but rather the phase between having an idea and realizing the idea as the main motive (Zeyen and Beckmann, 2018). The personality level of prevalence in the framework is having the analysis as the big five which is also having the consideration of fiver factor of personality The apothecary has its development
over the five decades ago which is helpful in having the research over personality which is been considered to be growing in development of foundation. This model has been identified and being famous for analysis te characteristic of entrepreneur model of personality. This model has the implication as it has been translated to various languages in order to have development of understanding which dost ends its reversibility just as theory. The fivepersonality traits of the entrepreneurial mindset or the Big Five Model of personality defined through the five different traits are explained below: 1. Openness to experience -it is about having the experience which is been described as the depth along with complexity in an individualist mental health and experiences. This can be recognized as the intellectual along with proper development of imagination. Togetherness to experiences have the major concern over willingness to individual to have willingness in order to have try over different things which is been considered as the most time being vulnerable and out of box thinking. The common traits to openness to experience includes imagination, complexity, insightfulness, originality, cleverness and varied interest. 2.Conscientiousness – it is a personality trait where one person wants to do others work. Conscientiousness is a trait that can be described as the tendency to control impulses and act in socially acceptable ways, behaviours that facilitate goal directed behaviour. The common traits to Conscientiousness to experience includes planning, self – discipline, ambition, control, energy and hard work. 3.Extroversion – Is a personality factor which characterised by the direction of individual and interest outside of all, which is a fun-loving personality. The common traits to Extroversion to experience includes fun loving nature, friendliness, talkativeness and outgoing nature. 4. Agreeableness is a personality trait that it is a grouping of personality.This is having the dealing in an individual proper level of ability in term of emotional thanksgiving along with temperamentoverdifferentsituationwhichcanbefacedduringthelifetimesourcesof development. 5. Neuroticism – one of the super traits in the big five models of personality It encompasses one's emotional stability and general temper. The major common traits which have been experiences in
this traits is all about the neuroticism which have inclusion of lack in confidence along with self- criticism. A perfect personality can reflect motivation and give motivation to others an entrepreneur is the person who have different and attractive personality which reflects the mindset and vision which inspires others to do more. Personality have the major description of the as it shapes the hosues the level of positive relationship with lifetime experience for development of and individual lifetime experience. (Rey-Martí, Porcar and Mas-Tur, 2015). Sir Richard Branson born in July 1950, he is British busines investor, author and philanthropist. He was the founder of Virgin Group in the 1970s, which control in companies which is more than 400 companies in various fields. He became an entrepreneur at a very young age. At his youngageheopenedachainofrecordssore,“virginrecords”laterknownas“virgin megastores”. J.K. Rowling British $1 billion most famous for authority the immensely popular Harry Potter series books, which later became as a most successful and popular movies Peter Jones born on 18 March 1966, is a British entrepreneur along with businessman and reality television personality with interest in mobiles phones, television, (Dana 2015.). P7 , how background and experience can hinder or foster entrepreneurship. An Individual to become an entrepreneur needs to be creative and innovative and must always ready to take risk. Then only they can establish the successful business. The background and personal experience of individual can highly affect enterprise and can help enterprise to grow. The supportive background lead an individual to develop great enthusiasm in themselves. If an entrepreneur doesn't get appropriate support from their friends or families then they can be motivated due to that. The individual can not work with their full efficiency so that they can get their desired result what they want to achieve. The performance of entrepreneur can be greatly affected by performance of entrepreneur. Individual with bad experience can have threat to start the business along with good experience they have a motivation to take risk in entrepreneur and work forward. They can be influenced by culture, economic, education and technological development. By which an entrepreneur can get consistent and strong growth. If they don't have sufficient support from their family.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Jack ma is from Hangzhou in China. He was born on October 15, 1964. He got 12 rejection including KFC before hired as teacher. He doesn't have any knowledge related to computer and coding. First thing which is searched by him on internet is beer and he didn't fine name of China there then further he decided to establish his own company. But with effective leadership and management skills he had got success further and had developed the successful business ahead.
Conclusion From the above study, it has been summarized that various small and medium sized organization are involved in bringing out new and innovative products and services. They have also engaged in creating employee opportunities for large number of people. This has supportedvariousorganizationingrowingandachievingbusinessobjectives. Entrepreneurs are also considered as risk takers, in this they are involved in taking high amount of risk. They are also considered as different from business managers.
REFERENCES Books and journals Baldacchino 2015.Entrepreneurship in small island states and territories. Routledge. Brush and Greene 2015. Women's entrepreneurship.Wiley Encyclopedia of Management. pp.1- 5. Burnsand Dewhurst 2016.Small business and entrepreneurship. Macmillan International Higher Education. Burns 2016.Entrepreneurship and small business. Palgrave Macmillan Limited. Cole 2018. Bank credit, trade credit or no credit: Evidence from the Surveys of Small Business Finances.Trade Credit or No Credit: Evidence from the Surveys of Small Business Finances(July 31, 2018). Dana 2015. Indigenous entrepreneurship: an emerging field of research.International Journal of Business and Globalisation.14(2). pp.158-169. Doern 2016. Entrepreneurship and crisis management: The experiences of small businesses during the London 2011 riots.International Small Business Journal.34(3). pp.276-302. Gibson 2017. Teaching entrepreneurship and/or small business management: shifts in content tensions in Australian Universities. InUnited States Association for Small Business and EntMugler2017repreneurship.ConferenceProceedings(p.716).UnitedStates Association for Small Business and Entrepreneurship. Hatten 2015.Small business management: Entrepreneurship and beyond. Nelson Education. Järvi 2015. Production of entrepreneurship in small business activities of students.Journal of Small Business and EnterpriRamadaniRatten and Palalić 2018se Development.22(1). pp.180-191. Julien P.A 2018.The state of the art in small business and entrepreneurship. Routledge. Kuratko and Morris 2018. Examining the future trajectory of entrepreneurship.Journal of Small Business Management.56(1). pp.11-23. Mugler2017.TheclimateforentrepreneurshipinEuropeancountriesintransition.The blackwell handbook of entrepreneurship. pp.150-175. Ramadani Ratten and Palalić 2018. Special Issue on Family Entrepreneurship in Transition and Emerging Economies.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Ratten 2016. Femaleentrepreneurship and the role of customer knowledge development, innovation outcome expectations and culture on intentions to start informal business ventures.International Journal of Entrepreneurship and Small Business.27(2-3). pp.262- 272. Schaper 2016.Making ecopreneurs: Developing sustainable entrepreneurship. CRC Press. Staniewski2016.Thecontributionofbusinessexperienceandknowledgetosuccessful entrepreneurship.Journal of Business Research.69(11). pp.5147-5152. Volery and Mazzarol 2015. The evolution of the small business and entrepreneurship field: A bibliometricinvestigatZeyenandBeckmann2018.ionofarticlespublishedinthe InternationalSmallBusinessJournal.InternationalSmallBusinessJournal.33(4). pp.374-396. Yan and Yan 2016. Individual entrepreneurship, collective entrepreneurship and innovation in small business: an empirical study.International Entrepreneurship and Management Journal.12(4). pp.1053-1077. Zeyen and Beckmann 2018. Exploring the global potential of social entrepreneurship and small business social responsibility for tackling societal value creation. InResearch Handbook on Small Business Social Responsibility. Edward Elgar Publishing.