Entrepreneurship and Small Business Management

This report discusses concepts of entrepreneurship, major role of small businesses in economic growth, and the impact and importance of micro and small businesses in the United Kingdom.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Entrepreneurial Ventures.......................................................................................................3
P2: Similarities and Differences Between Ventures....................................................................4
LO2..................................................................................................................................................6
P3: Impact of Micro and Small Businesses.................................................................................6
P4: Importance of Small Businesses and Business Start-ups......................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is a quality which always holds by an entrepreneur. There is
entrepreneur is a person who sees a business opportunity in the market, and then start their
enterprise to gain effective returns. Currently various types of entrepreneurial ventures are
running by the different types of entrepreneurs. These all businesses or ventures plays very great
role in economic growth of any country. This report discusses concepts of entrepreneurship.
Major role of small businesses in economic growth also has discussed in this report.
LO1
P1: Entrepreneurial Ventures
Currently there are various entrepreneurial ventures existing in the market. Some major
entrepreneurial ventures have been discussed below;
Public Ventures: Public ventures are running their business operations at the large scale. For
example; British Petroleum. This is the finest example of public ventures in the United Kingdom.
These ventures always have capacity to earn very high profit in the market (Niosi, 2018). Most
public ventures are always able to run their operations at the international level.
Private Ventures: Private venture always runs their business operations at the regional or
national level. These ventures are not able to generate huge employment opportunities. For
example; Iceland company. It is a private retail venture in the United Kingdom.
Social Ventures: The aim behind running social ventures is not to earn high profit, because
social ventures always operate for working in social welfare. For example; the children’s society.
It is a charity organisation in the UK. There charity, donation are major sources of earning to
social ventures.
Typology of Entrepreneurship
Different entrepreneurial ventures are completely relating with typology of
entrepreneurship;

High Growth: High growth entrepreneurship includes such entrepreneurs which has ability to
achieve very high growth in the market. High growth entrepreneurship is always capable to find
different business opportunities in the market (McNally, Honig and Martin, 2018). There are
public ventures comes under this type of entrepreneurship, because only these ventures are able
to achieve high growth.
Scalable: Scalable entrepreneurship includes such entrepreneurs which always come with a
unique idea to gain huge profit in market. There are public and private both ventures relating this
entrepreneurship, because bot ventures have ability implement some unique ideas in business
operations.
Survivor: Survivor entrepreneurship includes such entrepreneur who run their ventures only for
working in social welfare. There are only social ventures relating to this type of
entrepreneurship, because social welfare not work for earning profit.
P2: Similarities and Differences Between Ventures
There are various similarities and differences existing between different entrepreneurial
ventures.
Similarities
Brand Image: There are public, private and social, each venture wants to improve its brand
image or goodwill in different market segments. These all ventures run various activities in the
market to achieve excellent brand image in market.
Human Resource: Each venture always has required human resource to run each operation in
proper manner. A venture can’t achieve its decided target on time without human resource.
People or employees are always handling different activities in various ventures.
Fund: All ventures has highly required a specific fund to run their different operations in the
market. Without fund, a venture is not able to achieve their objectives (Kedah and et.al., 2019).
These ventures use various finding sources to fulfil their financial needs.
Differences
Basis Public Ventures Private Ventures Social Ventures

Shareholders Businesses or
companies which
comes under public
ventures always sells
shares publically.
Companies within
private ventures not
sells their shares
publically. But many
times owners of
private venture offers
their shares to close
people, like; family
members, friends etc.
Social ventures
always has zero
involvement of
shareholders, because
these ventures not
work for earning
huge profit.
Technology Public ventures
always need to
implement high
technology in their
business environment
to boost their
performance in
market.
Private ventures also
have required to
implement
technology, but not
high technology as
public ventures.
Most social ventures
not highly use
technology, because
these ventures no
need to produce
various products and
services. These
ventures use only
small technological
gadgets, like; smart
phone, calculator,
personal computer
etc.
Size Public ventures
always has large size,
because most public
ventures runs their
operations in the
international market.
Private ventures not
have large size as
public ventures
(Boohene and
Agyapong, 2017).
Reason is, these
ventures runs their
operation only within
Most social ventures
always have
minimum size,
because these
operated by a group
of people in small
town, city, or region
etc. Currently only

a region or country
etc.
few social ventures
are capable to run
their operation at the
international level.
LO2
P3: Impact of Micro and Small Businesses
Micro and small businesses currently plays very great role in the United Kingdom,
because this country is able to grow their economic conditions through these businesses.
Currently 5.9 million businesses are running in the UK, in which 5.82 are only small
businesses. It means, currently number of small businesses is very high in this country (Essential
Facts You Should Know about SMEs in the UK, 2019). These 5.82 million businesses are 99.9%
of total businesses in the United Kingdom.
These micro and small businesses have provided employment opportunities to 16.9
million people in this country. In short, 60% jobs of total job percentage have been offered by
small business in this country. These small businesses have generated £2.2 trillion turnover in
the last financial year, which was 52% of all businesses’ turnover. This contribution is very high
which are currently providing y small businesses in UK’s economic growth.
Figure 1: Contribution of businesses in the economic growth of the United Kingdom

Source: Essential Facts You Should Know about SMEs in the UK, 2019
Evaluation
According to findings, currently lots of people within the United Kingdom depends on
micro and small businesses for their employment purposes. Without these businesses, this
country is not capable to improve its economic conditions. Currently UK is one of the richest
countries in the world because of these micro, small, medium and large sized businesses. These
businesses or ventures are effectively contributing in the UK’s GDP as well.
P4: Importance of Small Businesses and Business Start-ups
Currently small businesses and business start-ups are playing very important role in the
growth of social economy of the United Kingdom. Some major importance of these businesses
and start-ups has been discussed below;
Provides Employment Opportunities: Business start-ups and small businesses always provides
great employment opportunities to local people of the United Kingdom (Bridge, 2016). Currently
lots of people within this country has depended on these businesses to fulfil their job needs.
Promotes Innovation: Currently many small businesses and start-ups are innovating different
products and services in this country. The UK is able to gain huge foreign exchange through this
factor of small businesses and start-ups.
Encourage Youth: Small businesses and business start-ups always encourages and motivates
existing youth to start more businesses in this country. This factor of small businesses and start-
up is too favourable for growing social economy of the United Kingdom.
Evaluation
Small businesses of the UK are putting very positive impact on different levels of
economy, like; local, regional, national and international. These businesses are providing their
services at each level of economy. Currently local people in this country are able to fulfil their
lots of needs through these businesses. Local government of the United Kingdom should

motivate youth to become an entrepreneur, because this step of government will increase
businesses in this country.
CONCLUSION
It can be concluded there are various types of entrepreneurial ventures are existing in the
market which completely relating with typology of entrepreneurship. On the other side, currently
micro, small and medium sized businesses are giving great contribution in economic growth of
the United Kingdom.

REFERENCES
Books & Journals
Boohene, R. and Agyapong, D., 2017. Centre for Entrepreneurship and Small Enterprises
Development, University of Cape Coast (Ghana). In Entrepreneurship Centres. (pp.
125-139). Palgrave Macmillan, Cham.
Bridge, S., 2016. The search for entrepreneurship: Finding more questions than answers. Taylor
& Francis.
Kedah, Z., and et.al., 2019. Effects of business Jihad on entrepreneurs' motivation and
performance. International Journal of Entrepreneurship and Small Business. 38(3).
pp.277-293.
McNally, J. J., Honig, B. and Martin, B. C., 2018. A preliminary exploration of the development
of wisdom in entrepreneurship education. McNally, J., Honig, B., & Martin, B.(2018). A
Preliminary Exploration of the Development of Wisdom in Entrepreneurship Education.
REGEPE-Revista de Empreendedorismo e Gestão de Pequenas Empresas. 7(1). pp.01-
34.
Niosi, J., 2018. Entrepreneurship: a short literature review. Int. J. Entrepreneurship and Small
Business. 35(3). p.257.
Online
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through: <
https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk >.