This document discusses the concepts of entrepreneurship and small business management. It covers different types of entrepreneurial ventures, their impact on the economy, characteristics of successful entrepreneurship, and the role of small businesses in the growth of the social economy.
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Unit 9 - Entrepreneurship and Small Business Management
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 Types of entrepreneurial ventures...............................................................................................3 LO2..................................................................................................................................................9 P3. Impact of micro and small business over economy...............................................................9 P4: Role of small business and start up in growth of social economy.......................................10 LO3................................................................................................................................................12 P5. Characteristics, traits and skills of successful entrepreneurship..........................................12 P6. Reflection of entrepreneurial personality over motivation and mindset of entrepreneurs. .14 LO4................................................................................................................................................15 P7. Background and experience hinder and poster entrepreneurship.......................................15 CONCLUSION..............................................................................................................................16 REFERENCES................................................................................................................................1
INTRODUCTION Entrepreneurship is defined as a process to set up a new businesses venture which also involve design, draft, structure and establishing new business organisation. The concept of entrepreneurship is all about converting an idea into a successful business setup. Henceforth, this report will emphasis over different types of entrepreneurship venture and the relation of venture withdifferenttypologyofentrepreneurship.Allthesimilaritiesanddifferencesbetween entrepreneurship ventures will also project in this report. Impacts of micro and small business will also project with the help of relevant data. This report will also project about the importance of small business and business start up in the growth process of economy will demonstrate in this report.Furthermore,thisreportwillalsoprojectthecharacteristicsofsuccessful entrepreneurship. Aspects of entrepreneur personality that drives the entrepreneur motivation will also highlight in this report. Influence of background and experience of entrepreneurs over the decision-making process of entrepreneurs will also indicate in this report. LO1 Types of entrepreneurial ventures Entrepreneurial venture refers to an institution that is developed in order to serve needs of people by bring innovation and ideas by optimum utilizing available opportunities in the industry. Whereas entrepreneur is the person that plans to start a business by taking in risk in order to earn high profit margin by selling products and services (Saleh, and Hudaya, 2019). There are various types of entrepreneur ventures such as Simon and Booby Arora are two enterpreneur that planed to start a new enterprise of bargain homewares chain in order to earn large profit margin. Social Enterprises:It is company that is established to provide social benefits to people by operating various function in the society. Such companies objectives is not to earn profit but rather than render products and services for uplifting standard of living of people. Thus, Social enterprise promote growth and development of society by provide products and service free of cost for welfare of people (Vinod, 2020). Therefore, among one such examples of social enterprise is Health and Social care Finalist that was established in 2004 in order to provide support to older and disabled people in UK through franchise. These enterprises have minimum market share , resource that are provided by member of company and not run in order to earn profit.
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Scalable Entrepreneurial venture:Such enterprise are started by innovative and highly creative entrepreneur that have vision to grow and expand its business in long run. They raise capital from venture capitalist in order to get advantages of their high knowledge and experience in particular industry. Business is started with a motive to expand and grow rapidly by bring continuous innovation and ideas.Such enterprise have limited resource and market share in initial stage but grow rapidly because of innovation that helps in expansion of market share in the industry. For examples: Cocoon is the smartest enterprise that is using patent technology to provide internet connection for security of home through system without wires and sensors set up. Thus, it is expands and growing its profitability, market share and sales volume on large scale. Large company Entrepreneurial venture:This enterprise employees large number of people within firm and have huge amount of capital, resource and market share. Company can easily raise its capital because of strong brand image and high profit margin. Large enterprise operates its business across nation in order to increase its profitability and market share and to get competitive position by maintaining quality of products and services render to customers. Thus, there main objectives is to provide qualitative and standard of products and services in order to retention customers satisfaction and loyalty (Yusoff and et.al., 2019). For example: Tesco is one of the leading company in UK having 68,00 shops across nation with wide varieties of products and services in order to meet customer's satisfaction. Tesco is third largest retailer in the world in terms of revenue generated by company and it contributes to 28.4% market share in UK. Small Business entrepreneurial venture:Such enterprise are established by people in order to earn living for its family members. Enterprise is established with minimum amount of capital and resource to meet customer's requirement. Thus, it sales products and services at lower price by reducing its profit margin and decreasing its cost of production in order to increases sales of company. For example: Davison Canners LTD is food production company that provide tasty and delicious filling and jams to its customers. The way relate to the typology of entrepreneurship Survival firms:Companies that are established in order to survive in market by offering products at lower cost to increase it sales volume. Small enterprise are included in such typology as they operate in order to sustain and survive in market.
High grow firms:Such firm motive is to grow and expands its business by entering into new market or introducing new products to meet customers needs. Large enterprise are part of high grow firm as they continuous expand and grow in market. High tech firms:Scalable enterprise are included in high tech company as they are established to expand its market share by bring continuous innovation and new ideas in business. Social firms:Social enterprise are part of social firms as they run and operates its function in order to provide social benefit to people living in the society. Similarities between entrepreneurial ventures SimilaritiesSocial EnterpriseScalable Entrepreneurial venture Largecompany Entrepreneurial venture
ObjectivesSocialbusinessis established and run in order to meet demand and needs of people in effectively manner for upliftmentofsociety (Janani, Ravichandran and Sujeetha, 2016). Health and Social care Finalist objectives is to provide social services to customers. It is also established to provide innovation and creativeproductsand services to customer in ordertofullfil customers requirement. Cocoonisascalable enterprise that operates itsbusinesstomeets customer's requirementby continuousinnovation and creativity. Large organization are also run and operated to maximize its sales andprofitmarginby satisfyingneedsof customer'sinan effective manner. Tescoislarge organization that focus is to provide standard andqualitative products to customer's.
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RiskSocial enterprise are startedbyindividual by incorporate various associatedriskwith business.Health and SocialcareFinalist also established risk of lesscapitalandhigh competition. Scalableenterprise also have to bear high risk due to continuous changein technologies.Cocoon by incorporating high risk is able to grow. Largeenterprisealso take high risk in order toexpanditsmarket share such as Tesco. Differences between entrepreneurial ventures DifferencesSocial EnterpriseScalable Entrepreneurial venture Largecompany Entrepreneurial venture
SizeSocial enterprise have limitedsizeof operationasitis established to provide social services. SocialcareFinalist have limited resource andcapitalserve people of UK only. Scalableenterprise havemoremarket share as compared to socialenterprise (Kamle,2017). Cocoon is continuous expanditsmarket share and profitability inUKaswellother countries. Ithaslargemarket share,employeesand resourcefor achievementof companygoals.Such asTescoisoneof leadingcompanyin UKmarketandhas manystoresacross various nation.
Number of employeesNumber of employees arelesssuchasin SocialcareFinalist thereareonly10 employees to perform variousfunctionof company. Initnumberof employeesare between 50-250 within firm.Cocoonhave morethan50 employeesthatare highskilledand knowledgable. Large enterprise have employeesmorethan 500tomeetfirm objectives. Tesco have 45,0000employees workingtogetherfor common goals. LO2 P3. Impact of micro and small business over economy Micro Business: Micro business are considered as all such business ventures that comprises with not more than10 humanresourcesandalsoconsistthesalesturnovernotmorethan€2million (Andersson, 2018). All the business organisation cope up with both the characteristics are considered as micro businesses. For example business organisations like Boss Brewing Company of UK is considered as a micro business organisation. Micro Business Contribution in UK economy Micro businesses is a crucial aspect of UK economy. As per the research conducted by Merchant Savy which reveals that UK has over 5.7 million business set-ups. As per the research 99.3% of business set-ups are considered as small and micro size business organisations. AS the presence of micro businesses across the UK that also leads to major contribution in economy of UK with the support of micro business houses. Among such 99.3% business organisations comprises with micro and small businesses 96% are considered as micro business organisations. Micro businesses consider the contribution of around 21% in the economy of UK that project the influence of micro businesses over the economic growth of UK. Presence of micro businesses can be witnessed in the entire UK such as North East total business setups comprises with 27% as a micro business houses. North west involves 24.9% micro businesses (Bosma, Sanders and Stam, 2018). Other part of UK such as Yorkshire and The Humbler involves 23.3% micro businesses.EastMidlandsarewitnessingaround24.6%businessesasmicrobusiness organisations. West Midlands has 24.8% and East of England are witnessing 23.7% business
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ventures as micro business houses. London is also involved 21.1% micro business organisations. As the micro business organisations consider an effective presence all over UK that contributed around 20.4% in the UK economy (Vyas and Saha, 2017). As per the record's employment generation is also a huge aspects of the micro businesses. In UK out of the population 17.3% people are getting employment with the support of micro business organisations. Apart from all the positive impacts of micro businesses in the UK economy many of the micro business houses has engaged with unethical business practices like selling unhealthy products in order to expand the profitability. Micro business houses consist with limited resources that also restricts the business strategies of micro business organisation in a limited scope. Small Business: Small business organisations are defined as all such business setups that has a sales turnover less than £6.5million as per the latest profit statements of the organisations and also consist the man power of up to 50 employees. Based on the applied conditions business organisations are segregated between small and medium business organisations. Contribution of Small businesses in UK economy:Small scale business houses is also an important aspect of UK economy. More than 99% of UK business ventures are considered as small and medium size businesses. Among such 99.3% small businesses are considered as 3% that also specifies about an effective number. As per the recent statistics small business has contributed a sales turnover of 629,163 £millions that specifies a huge number of sales (De Bruin and Mataira, 2018). Uk economy derives around 47% from small and medium size business ventures that also a huge source of employment creation and growth in UK. Such a huge contribution in economy has also reduces the unemployment in UK.SMEs are mostly depends upon innovation and creative business ideas in order to grow the business due to lack of resources. Small and medium sixze business play effective role in the economic growth of the United Kingdom as they contribute effectively in the GDP. By easrning heavy returns small business and medium size business also contributes in the tax revenue of the UK government. Taxation is the key elements that improves the government stability to meet the needs of the society. Small and medium size busineses not just contribute in the economic growth of United Kingdom but alos in the social growth of the people in United Kingdom. P4: Role of small business and start up in growth of social economy Social Economy
It refers relation between the economic system and cultural behaviour of people. Social economy concerns a group in which economical schemes is controlling, ordering, assuring benefits and provide equivalent opportunities to human being in the society. Social economy is the group of various social subjective which are categorized in conjunctive society, monetary resource , earnings and voluntary(Quarter, Mook, and Armstrong, 2017). It supported to the non-profit sector and any surplus or profit earn are invest within the organization. Four pillars of social economy-Mutual societies, foundations economy, charity and association are four pillars of social economy. These all the below here- Mutual-Mutual are monitory sources that could financial support to the small society peoples. It provides leaving human being and non-life insurance religious service to the people. The purpose of mutual societies is to fulfil the customer requirement and provide return to customer on its capital which capital they are invested in to mutual societies. Example of mutual societies are Schroders is mutual fund organization. Foundations- Foundation economy provide the goods and product service which are necessary to keep every citizen safe. It must give satisfaction to the everybody. The foundation economy concept offers the opportunity to forward job declination and cut down the outflow of money from society. Charity- A charity refers the particular amount that are voluntary given for help for those people who actually need(Almeida, and Cunha, 2018). Charity arises the capital in order to assist for hapless and sick people. Charity provide benefit to other people. For example, British heart foundations is aim is to find out who fight against heart disease to research them and provide heart treatment. Association-Association refer to the relation between two beings who are working together for common goals and objective of company these are connected with same idea, feelings and images. For example, British hospitality association is an organization that provide restaurants and food service. Importance of start up on growth of social economy Start-up is essential for economic growth if organization think good idea start-up running. Start-up may be small or may be big. It creates more jobs for improving economic growth. For using good technology people organization improve their production, even also boosts the social economy growth. It provides good better living, standard to the social culture. Start-up can
support to charity socio economy by giving time, by donating their skill, by donating gifts and become a organ donor it can raise the social fund by giving some part of profit, they can donate blood and can to save the life or any people of economy. For example, start up business club is a start-up firm it is an investment firm that provide seed capital. Importance of small businesses on growth of social economy Small business is a backbone of social economy they fulfil the demand of people. It provides employment opportunities to people these are not employable small business help them (Ribeiro-Soriano, 2017) .They make the market more competing and help people to acquire earnings. Small business can be supporting the community, donate in local charities and do everything for them they can give their support in growth of social economy. For example, of small organization is cafe pod coffee co. Produce of coffee drink. LO3 P5. Characteristics, traits and skills of successful entrepreneurship UK has effective entrepreneurship culture that has also improved the economic growth of the country. Entrepreneurs play an effective role in the economic growth of the country as they cater the business services in the affordable price range. Entrepreneurship is all about converting an idea into a successful business model that also involve innovation and creativity as a part of business practices. Among all successful entrepreneurs of UK Simon and Boby Arora are also among two successful entrepreneurs. Characteristic, skills and traits of successful entrepreneurs Vision:Entrepreneurscarrythespecificvisioninordertoconductbusinessoperations. Entrepreneursset a propervision before conductingany activityrelatedto thebusiness organisation. Based on the set vision entrepreneurs plan all business operations and activities. Vision is the crucial elements involve in entrepreneurship work practice as it drives the motivationofentrepreneursinordertobuildthesuccessfulbusinessventures(Estrin, Mickiewicz and Stephan, 2016). Most of the time entrepreneurs link their vision with any social aspects and put efforts to solve such social aspects with the business plan. For example entrepreneurs of UK Bobby Arora and Simon also built a successful business venture with the vision of catering the best quality aviation, soft drinks, soft toys and software. Leadership:Entrepreneurs are considered as the future leader of the society and corporate sector. Leadership is among the major skills and ability entrepreneurs must possess in order to
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build a successful business organisation. Entrepreneur drives the business operations with the support of leadership quality that enables successful entrepreneurs to understand and assess the situation and take the most appropriate business decision.For example entrepreneurs Bobby Arora and Simon has build a successful business set up call B&M and the leadership skills and qualities of both the entrepreneurs play crucial role in establishing a huge business set up. Dynamic Communication:Dynamic communication is also a crucial skill or trait of the p[personality of successful entrepreneurs across the globe. Communication is a crucial aspect of business organisation as it enables smooth operational activities. Entrepreneur has a dynamic personality which also reflect in the communication skills of successful entrepreneurs (Holt and Goulding,2016).Theyalwaystrytomotivatetheemployee'soforganisationwhile communicating on any business aspects. Entrepreneurs also carry the specific sense of humour that enables successful entrepreneurs to make conversation more interesting. For example entrepreneurs Bobby Arora and Simon are known for their dynamic communication skills that supports both of them in dealing effectively with all the stakeholders of the organisation. Persistence:Persistenceis also a crucial personalitytrait entrepreneursposses. To be a successfulentrepreneuritiscrucialtoputconsistenteffortsinconductingoperation's. Entrepreneurs face plenty of failures in order to build a successful business venture due to lack of resources, experience and other relatable aspects that resist the business idea of entrepreneurs. Apart from all the failures entrepreneurs always put consistent efforts in order to build the successful business set up. Motivation:Entrepreneurs always looks motivated apart from all the associated challenges with the business set up. Motivation plays a key role in getting successful in any field. Corporate sector is very competitive sector and in order to sustain and grow in the sector it is crucial to be motivated all the time and also to motivate other stakeholders associated with the business. For example Entrepreneurs Bobby Arora and Simon always looks motivated in any complex situation associated with the business operations that drives both the entrepreneurs to deal effectively in all the complex situation. Independence:Entrepreneurs are among such leaders who start from the scratch. To be independent is also a major personality trait and ability successful entrepreneurs possess. IN any situation entrepreneurs never give up and also they fight independently without any support. This quality of entrepreneurs make them the successful business leaders.
All the above qualities and skills reflect the successful entrepreneurs across the globe. Difference between entrepreneurship and business manager Characteristics,skillsand traits EntrepreneursBusiness Manager VisionEntrepreneurs carry the vision ofestablishingasuccessful business venture. Businessmanagercarrythe vision of improving the growth potential of already established business organisation. LeadershipLeadership play a key role in establishingasuccessful businesssetupfor entrepreneurs. Business manager also needs leadershipskillsbutnotas compare to entrepreneurs. Dynamic communicationEntrepreneurs carry the more dynamiccommunication technique as they involve in all aspects of business operation's. Managers are not known for dynamic communication skills theyfollowthenormal communication channels used in organization. PersistencePersistenceapproachof entrepreneurs towards business makethemasuccessful corporate entity. Managerarealsopersistent enough,buttheyfollowthe same operational approaches. IndependenceEntrepreneurs are independent as they don't carry the major supportfromanyentity (Mustapha,Sorooshianand Azizan, 2016). Manager are not considered as independentastheyget support from senior authorities in organisation. P6. Reflection of entrepreneurial personality over motivation and mindset of entrepreneurs Entrepreneurship personality is considered as different aspects of characteristics of entrepreneurs, personality traits, abilities, attitude, motives and values that gives shape to
entrepreneurship business. All the factors related to the character of entrepreneur are reflected as the personality of entrepreneurs. Impacts of entrepreneurship personality on motivation Personality of entrepreneurs impacts in the following ways over motivation and mindset of entrepreneurs. Take Responsibilities:Entrepreneurs are sole entity of their business organisation so it is important for entrepreneurs to take entire responsibilities of all the business operations. Taking responsibilities also reflect about the entrepreneurs motivation and confidence level (Nabi and et.al., 2017). Due to high motivation level in personality entrepreneurs carry the characteristics of never give up attitude. For example entrepreneurs Bobby Arora and Simon always look keen towards taking responsibilities of all the business operation's and decision-making process. Taking responsibilities is a key approaches utilised by both the entrepreneurs which make them more successful in the business. Clear Intent:Entrepreneurs are highly motivated which also drives the entrepreneurs to have a clear intent in respect to business operation's. Clear intent also enables entrepreneurs to have a clear thought process and vision. Both the entrepreneurs Bobby Arora and Simon use clear intent while taking any business decision.Entrepreneurship mostly operate business operations based ontheintents.Boththeentreprenursconsistedclearintentfromthebeginningofthe entrepreneurship journey which also guided them to drive the business operation's effectively. Stay Focused:Entrepreneurs look always stay focused towards whatever strategies and policy they frame to conduct business operation's (Pattanaik, 2017). Due to high motivation and confidence the mind set of entrepreneurs always remain focused towards achieving all the goals. Stay focus in regard to achieving goals and objective sof business play a key role in achieving business targets. Entrepreneurs Booby Arora had a focused personality from the initial stage of the business. Keep Going Attitude:Entrepreneurs carry the attitude of keep going which is also due to high motivationlevelentrepreneurspossess.Thisisacrucialapproachofdoingbusiness entrepreneurs use in order to achieve all business objectives. Both the entrepreneurs Bobby Arora and Simon use the approach of keep going which also enable them to improve the growth potential of B&M venture.Keep going attitude of Boby Arora was the reason behind the success.
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Bobby Arora faced multiple failures in the career at the initial stages of the business which make them more focused toward achieving the business objectives. LO4 P7. Background and experience hinder and poster entrepreneurship EntrepreneursBobbyAroraisamongthehighlysuccessfulentrepreneurs.They established a successful business venture call B&M. Booby Arora is a self-made business icons as he do not belongs to rich family (Rey-Martí, Ribeiro-Soriano and Palacios-Marqués, 2016). Background of Bobby Arora drive him to take suitable decisions that can attract the target customersinaviation,softdrink,softtoysandsoftwaremarket.Thebiggestaspectof entrepreneurship business as entrepreneurs face plenty of failures like in trading in order to build a successful business organisation that also enables entrepreneurs to experience all aspects of business sector.Background and experience of Booby Arora supported in retailing supported him to assess about the needs of target customer effectively. Retailing background of Booby Arora also drives him to identify the future need of the sector and launch products apparently. Booby Arora do not belongs to rich background which also supported him to adders the social needs. Entrepreneurship is all about fulfilling the needs of the society with the services. Experience of the entrepreneurs play huge role in improving the growth opportunities for the entrepreneurship business. Entrepreneurs Simon utilised the personal experience in all his entrepreneurship journey. It has improved the decision making of the entrepreneurs. Experience of the entrepreneurs has enabled him to understand the needs of society. Entrepreneurs Simon belongs to poor family which drives him to understand the needs of local people. Furthr in the entrepreneurship journey he channelized all the experience to improve the outcomes of the business. Background of the Simon also improved the communications kill which has also supported the entrepreneur throughout the journey of entrepreneurship. CONCLUSION This report concludes about different entrepreneurship venture such as social enterprises, scalable enterprises, large company and small business entrepreneurship. This report also concludes about the similarities and differences between entrepreneurship ventures. Potential of micro and small business in the economic growth of UK has also concluded with the aspects like among all business organisations 99.3% business houses in UK are considered as small and micro business houses. Pillars of social economy like mutuals, foundations, charities has
discussed in this report. Different aspects of personality of successful entrepreneurs has also concluded based on the visions, leadership and other factors. Personality aspects of entrepreneurs that made them successful are also concluded in this report.
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