The Role of Small Businesses and Startups

The provided document is an academic assignment that delves into the importance of small businesses and startups within the current economic landscape. It presents statistics on employment and turnover generated by these entities in the UK and EU, highlighting their significant contributions to local economies. Furthermore, it discusses various research studies on entrepreneurship education, product market access, and the growth of regions, providing insights into the dynamics of entrepreneurial ecosystems. The document also touches upon urban development and the role of small business communities in shaping local government policies. It emphasizes the need for engaged scholarship and relevance in contemporary entrepreneurship/small and medium-sized enterprise research.

Unit 9 Entrepreneurship and
Small Business Management
(level: 4)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of different entrepreneurial ventures..........................................................................1
P2. Some similarities and differentiation among entrepreneurial ventures................................2
P3 Impacts with statistics of small and micro business on the economy....................................5
P4. Major importance of SME's and start ups in growth and development of its social
economy,.....................................................................................................................................7
TASK 2............................................................................................................................................9
P5. Various skills, treats and characteristics of Jack Cohen and other successful entrepreneur.9
6. Reflection of various aspects in entrepreneurial personality on mindsets and motivation.. .11
P7 Background and experience can hinder or foster entrepreneurship.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship means set up a new business or company with using innovative ideas
and willpower. It can also refer to manage, organise and maintain a special business or venture
for earning money or profits (Abdullah, Hadi and Dana, 2018)In the entrepreneurship business,
the entrepreneur must have raw material, work force, finance, land or area and required plant-
machineries to conduct that business in the right way. Small business is independently operates
and owned by an individual or small group of persons with limited size. In this report,
description about types of different entrepreneurial ventures with their similarities and
differentiation among them. Furthermore, it covers the major importance of small businesses and
business start-ups to the growth of the social economy. Lastly, it also covers the entrepreneurial
personality of Jack Cohen or another entrepreneur. In this context, there is a company TESCO,
situated at UK.
TASK 1
P1. Types of different entrepreneurial ventures.
The entrepreneurship is being an innovative idea that includes many things for a
particular business and start it for earning more profits. It is an interest and evident situation to
increase the new ventures. It is a special tend to be featured because it produces money and make
better living standard of the entrepreneur (Bates, Bradford and Seamans, 2018). In other words,
ability and willingness to develop, manage and organise a new business organisation along with
some risks towards to achieve the goals and targets. In this entrepreneurship, there are producing
and delivering many products and services to the customers by using several types of
technologies. An entrepreneur wants to become successful and so for this reason he or she uses
various resources and raw material. There are some kinds of different entrepreneurial ventures :
 Large entrepreneurship venture – This type of ventures has many resources and operate
its business activities at big level. Normally it runs its operations at local level but some
times it becomes huge and work at national or international level (Bates, Bradford and
Seamans, 2018). Large ventures have many assets and proper funds that require in its
huge business operations. Large organisation have limited life cycles. Most grow through
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sustaining innovation, offering new products and services that are variants around their
main products.
 Small entrepreneurship venture – In today's scenario, there are most of business are start
as small level because it is a basic need of money and different resources (Du and
O’Connor, 2018). So for this reason every entrepreneur start with a small amount and
resources with minimum work force and its objective is get the break even point as soon
as possible.
 Trading entrepreneurship venture – It is an essential type of entrepreneurial venture and it
deals with more other existing business and operates its operational activities in order to
achieve maximum profits. It is maintaining its assets in the right way and use those for
compete the different market conditions. In its operations, the management team of such
type of businesses make new policies or strategies and maintain and improve its brand
image and goodwill.
 Private entrepreneurship venture – The private entrepreneurship, is owned and run by the
private authority for gain competitive advantages in its target market (Egbuta and Gilbert,
2018). Private authority may be an individual or group of persons. The main motive of
this type of businesses is get more profits and use it in own business expansion.
 Social entrepreneurship ventures – It is also a type of entrepreneurship that drive
transformation and social innovations in different fields including environmental, health,
education, enterprise development and many more. It pursues with poverty relief
objectives and target. The social entrepreneur work as a leader or pragmatic visionary
who focus on the combines the characteristics. It achieves large systematic, sustainable
change through an invention with several approaches.
 Public entrepreneurship ventures – this ventures are work in a big group or environment.
It is operates and run by many owners and they make control and maintain its business
activities (Farhat, Matusik and Robinson, 2018). It is different from others because in this
type of ventures, there are many owners and they work in a combination.
P2. Some similarities and differentiation among entrepreneurial ventures.
Each business venture is different from other one and there are many elements that make
differ it from others. There are three major type of entrepreneurship that are public, private and
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social entrepreneurial ventures. In this context, every business must have its own equipments and
resources that are used in expanding its business activities in order to achieve organisational
goals and targets. In addition to this the entrepreneurial start up is refers as the concept of starting
and operating new business by using various new ideas (Fotopoulos and Storey, 2018). Every
business ventures are different from others and it has its own sources, assets and liabilities.
Differentiation among the various ventures are as under :
Major differences :
Differentiation Base Public Social Private
Operations and
functions
The whole operational
activities conduct in
public ventures for the
growth and
development of nation
in which it is situated.
Its function is majorly
growth of the specific
community and
society (Goel, 2018).
It arranges its
operations in order to
sustain in society.
Private ventures works
for only private
growth and
development. Its
revenue is utilised
only for its expansion.
Objectives Its primary goal is
providing maximum
profits and
employment in the
country.
Social ventures have a
special aim is to do for
welfare of the
community. The profit
earned is not utilized
for personal use, it is
devoted all profits in
the welfare of the
community.
Private ventures are
those venture that have
major objective is
profit maximization
and expansion of this
organisation in order
to achieve more
profits.
Structure In the public ventures,
there are a big
infrastructure but it is
not in well condition.
Its infrastructure is not
so huge because it
only works for charity
and public welfare.
The private ventures
have very huge and
large infrastructures.
Control In this type of Possession and control Private ventures are in
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ventures, the control
and management is
maintained by the
legal body and
corporate.
of social ventures is in
control by the
individual or a group
of persons (Goldsby,
Kreiser and Hornsby,
2018). Sometimes it
may be in the hand of
governments.
the possession of
private authority and
controlled by a person
or group.
Ventures examples The Forestry
Commission
Microloan TESCO
Major similarities :
Basis of similarities Public Social Private
Job opportunities This type of ventures
provides several
employments and job
opportunities in the
country in which it
situates.
Social ventures also
renders many job
opportunities for
avoiding
unemployment.
It is main goal to
provide job
opportunities for the
accomplishment of its
operational activities.
Profit share Profits are normally
distributed in the
owners after the
settlement of all dues
and liabilities
(Kitching, 2018).
In social ventures, the
revenue or profits are
generally distributed
welfare and social
growth.
Private ventures
divided its profits in
between owners and
development of
business.
Strategies and
marketing plans
Marketing planning is
formulated in
accordance with its
The management team
of social ventures are
make its organisational
The major goal of
planning the marketing
strategies is to develop
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goal. Its strategies
make for the growth
and development of
the organisation.
strategies for
increasing its societal
welfare and growth.
the organisation and
enhance the profit and
sales revenue.
entrepreneur The public ventures
are owned and
operates by any male
or female person or
both.
Social ventures also
start by the male or
female personality or
by both in order to
achieve organisational
goals.
In this context, these
are also owned by the
male or female
entrepreneur or by
both. So it is also a
similarity.
P3 Impacts with statistics of small and micro business on the economy.
In the UK economy, there are many micro, small and medium enterprises that effect it
and the GDP also get effect. There are many factors that should consider by the marketers for
their organisational sustainable growth (Laukkanen and Tornikoski, 2018). In this context, there
are many statistics that show that there are many SME enterprises and it grows more and more
every year.
The SME's is refers as follows :
Small enterprise – Small business should not more than 50 employees as well as staff members
and turnover not goes across 10 million pounds in a particular financial year.
Micro enterprise - It is an essential type of entrepreneurial ventures and in such businesses, there
are not more than 10 people work in the organisation. There is also turnover limit that is
maximum 2.2 million pounds accepted in these criteria.
Medium enterprise – In this type of ventures, there are total staff members and employees
should be maximum 100 acceptable and turnover limits is 50 million pounds that should not
grow more.
There are small business in private sector is 99.3 % at the starting of 2017. There are 16.1
million employment from SME's sector in UK. Total turnover was £1.9 trillion that is
approximate 51 % of all private sectors in UK. In SME, there are 5.7 million businesses in
private sector at the starting of 2017 and employment is increasing with 3 %. These SME's are
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more than in the southern England than the other UK. In this context, there are some data and
statistics are as given below :
Such data or statistics shows the percentage of total employment generates by the SME's
in UK country. In authorized statistics SMEs can presently only be identified by job employment
size as enterprises with increase than 250 persons employed. It is a big category and it is
encompasses with several ownership structures and number of staff member at each level of UK
economy.
There are many small organisations that play an important role in the growth of their
economic environment (Murphy, Abdulai and Thomas, 2018). The major essential and foremost
factor is it create many jobs in UK or across the world. The other benefit is comes from the small
businesses and start ups because it positively imparts to the growth of invention and revenue
generation.
Further, these data shows percentage of turnover, employment and businesses from small,
medium and large entrepreneurship in UK.
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Illustration 1: Employment in UK by SME's
(Source - Statistics on small and medium-sized enterprises, 2018)

In last three years, 60 % of SME enterprises are provides big funding and in these
businesses, it includes government grants and subsidies and also business start up loans. Start ups
and small businesses lean to turn to governments and banks to adopt business start up grants and
loans.
P4. Major importance of SME's and start ups in growth and development of its social economy,
Many SMEs and start ups are pursuit and operates its business for the growth and
development of economy and these businesses are essential for create innovation and progress.
All SMEs combined profits are almost half of total private sector profits that is approximate 47
% and reach at £1.8 trillion in a year (.Nabi, Walmsley and Neame, 2018). There government
release many policies and strategies that helpful in these businesses and it gets full financial
supports. Government backed there business loans that should also be more profitable and
programs like start up pedal or setup for promoted many other businesses. This type of strategy
create more realistic and apply for different types of businesses for grants and loans. In the UK,
the vast bulk of business concern employ fewer than 10 people, accounting for 33% of
occupation and 19% of sales or output, according to an informing paper in the House of
Commons collection that was published in May 2015. In addition to this, the people of all other
sized businesses have either enhanced only amount or destroyed in number. SME businesses are
too much helpful in economic health and it increases value of economy as well as GDP. In UK,
7
Illustration 2: Turnover, Employment and Business from SME's
(Source - Role of Startups and Small Businesses in Today’s Economy, 2018 )

the government always follow tax breaks strategy and it is use in encouraging employment,
research as well as various developments. It offers support, free advice and different networking
opportunities.
The small businesses and start ups are the main backbone of UK economy. It driving
growth, creating jobs and opening different types of new markets. These businesses also helpful
in encouraging competition and it can bring fresh innovation and ideas that challenge the status
quo (Raco and Moreira de Souza, 2018). The Small business owners have long said that if the
UK articulation development in this country, its impact will be felt more panoramic and it is here
because small businesses require support. The research shows that 55 % of SMEs grow in last
five years and increase profits of all nation. The UK is one of fifth largest economy across the
global and its total GDP was 2.849 trillion dollars in 2015 as well as it is got ninth rank in the
exporting its thing to the other countries. UK is the fastest growing economy in G7. In the
growth context, there are some major elements that are shows the importance of SMEs in UK
economy : Profits and income – SME businesses are a huge source in creating jobs and
employments. It is a sector that could generate many types of jobs in order to reduce the
unemployment (Shelton and Minniti, 2018). It performs a significant role in the
proportion of UKs annual turnover. These business generates more income and provide
profits for its owner. Catering the niche and limited market – In SME's, there are many businesses that
produce and sell many products at huge level in their respective target market. For this
reason, it reduces their product and services prices in order to sustain in market segment.
Such organisation are also uses the best quality raw material at very low cost and this will
support to the improvement the revenue. They also capable to sell these goods and
outputs into small market segments with their personal clients. Job creation and employment – It is seen as the big impact of SMEs in the UK economy
because of its scale and size for providing jobs and various employments. In this country,
the department of business provides many informations about the job creation and
according to it the SMEs rendered 15.6 million employment that is approximate 60 % of
total employment in private sector (Simmons, Wiklund and Sunny, 2018). There are also
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a prediction about new jobs and employments that is SMEs provide approximates 250000
new jobs across the country. The balance of payments – It is a crucial and important factor in the UK economy and it
is refers as how much is being spent by end users and different companies on imported
products as well as services (Stuetzer Audretsch and Potter, 2018). According to an
independent study, the SMEs sells its 54 % turnover across the country and charge 68 %
from those products and services. It will lead to the balance of payments. Innovations and creativeness – The businesses that fall down in this category are created
well position and introduces as well as develop innovations. So for this reason, there are
many new ideas and creations in such businesses (Trehan, Higgins, and Jones, 2018). A
start up business run and develop a vast range of environmentally genial cosmetics in
simple packaging. This can allow to the various businesses for its enhancement. Responding flexible to challenges and conflicts – In the each SME business, there is a
small chain and structure for maintaining the control in that particular business. In the
organisation, its management team also set different techniques for establishing and
operating whole operations.
 Share of business – The vast majority is comprises by the SMEs businesses for the
compositional in UK. There are a record that 5.4 million businesses in 2015 in private
sector and these businesses are increases of 146000 since 2000.
TASK 2
P5. Various skills, treats and characteristics of Jack Cohen and other successful entrepreneur.
The Jack Cohen was a successful entrepreneur and the founder of TESCO stores. He was
born in 6th October 1898 at London, United Kingdom and died in 24th march 1979 and his full
name is Jacob Edward Kohen. He was the second son and last of five living children of Avroam
Kohen, a garment worker and immigrant Russian Jew. He takes a building on rent that situated at
an arcade in Tooting, and then make an open-fronted store at Dartford which joint storage space
with a retail outlet (Wynn and Jones, 2018). In 1932, TESCO Stores Ltd was registered, and the
first shops opened under the TESCO name that is come from Beckon tree and Burnt Oak. In
1939 Sir Jack had possessed a hundred stores in the London UK. Major skills, treats and
characteristics of sir Jack and other successful entrepreneur are as follows : Skills :
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 Discipline – A successful entrepreneur always live in discipline in his or her
behaviour and he or she focused on making batter work for that particular business. In
this context, sir Jack was well disciplined and eliminate the distractions or hindrances
to his goals (Abdullah, Hadi and Dana, 2018). The successful entrepreneurs have
always overarching new techniques and outline the plan of action to execute them.
Successful entrepreneurs are controlled enough to take various steps in their day to
day program toward the achievement of their goals and objectives.
 Self confidence – It is an essential skill that a successful entrepreneur never ask
questions for his or her accomplishment of his or her work. They are well confident in
their work and have sufficient knowledge for making their business success.
 Open minded – All entrepreneur always realize and ready for different situations can
comes in their business (Bates, Bradford and Seamans, 2018). Their Ideas are
perpetually being return about work flow and efficiency, people skills and possible
new organisation.
 Communication – It is a special skill that have been in every successful entrepreneur
and in present days it is necessary for maintaining better business environment. In this
context, Sir Jack have sufficient communication in their knowledge that is full
utilised by him.
 Leadership – It is also necessarily quality or skill that have in the successful
entrepreneur because they use this type of skills and lead their team member in their
business. Treats :
 They invest in themselves grooming – In the treat of a successful entrepreneur, it is
main for everyone that is described as each entrepreneur must have invested for their
knowledge and grooming (.Bates, Bradford and Seamans, 2018). Here invest means
they work for themselves and increase their skills.
 Understand the customer needs and wants – Every successful entrepreneur have
sufficient knowledge about the needs and wants of their target customer so that he or
she would be able to fulfilment of those needs. Characteristics :
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 Competitive – The entrepreneur have this type of characteristic that use in their
business and grow it in order to achieve competitive advantages. In this context, the
successful entrepreneur will highlight their own company’s course evidence of
success. The Jack Cohen was a competitive in his nature.
 Strong work ethics – To become a successful entrepreneur it is compulsory that they
work with proper ethics and do not carry any mistake (Du and O’Connor, 2018). In
addition to this, their mind is consistently on their work either they are on the work or
not. Sir Jack also has this type of characteristic in their passion.
6. Reflection of various aspects in entrepreneurial personality on mindsets and motivation.
Reflection is refers as different personality theory and behaviours that are needed in an
entrepreneurial nature. Identifying the several personality treats, there is a model that use in this
aspect. This model is too much useful and help in find this treats (Egbuta and Gilbert, 2018). It
will help to the owner of that business and use in operational activities. In this context, the Jack
Cohen or another successful entrepreneur have perfect personality and this can reflect their mind
set and motivation. There are some elements that use in this process, are as under : Agreeableness – It is a type of personality that should be in the successful entrepreneur in
order to help his or her business. It is refers as friendly nature and warm for the
organisational activities. Every entrepreneur must be in tactful nature to become
successful and achieve desired targets and goals. Neurotic-ism – The entrepreneur have this treat and capable to maintain all business
related activities. It is referred to the capability for controlling the organisation (Farhat,
Matusik and Robinson, 2018x). In this context, Sir Jack Cohen has a neurotic-ism in his
nature and he got achieved success in his business. Extroversion – This personality treat is an important tool in various personality treat and
it states as sociability and talkative nature of the successful entrepreneur. An owner of
new business have this treat in his or her behaviour and get success in his or her business
with effectively.
 Openness – Openness is a special treat in standard personality treats and it is too much
helpful in accomplishment of business goals and objectives. The owner of TESCO, Jack
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Cohen was an open minded person and he used this treat in his operational activities of
TESCO.
P7 Background and experience can hinder or foster entrepreneurship
Experience and background is very important part of every successful entrepreneur that
has specific role in his life. A successful entrepreneur are try to achieve their goals and
objectives while they have skills and knowledge to easily understands the need and requirement
of business. Family back ground is playing important role in his life because most of the
entrepreneur has learned some business knowledges by family (Farhat, Matusik and Robinson,
2018). There are the important part of each and very successful entrepreneur. For Example- Jack
Edward is very popular entrepreneur that has established their own company is known as
TESCO. This is the fastest growing organization that has expands their business all over the
world. This is the great person and becoming every famous personality. They have start their
career at initial level and nowadays, he becoming very successful entrepreneur in the world.
They always putting their new ideas for growth and development. They face many problems in
his life but never disappointed. They always increase their business in day by day.
There is another successful entrepreneur that has mark Zuckerberg. He is also very great
person. They also start their career in the initial level and finding the investors to invest some
money. They face many challenging issues and problem in his life (Fotopoulos and Storey,
2018). They have capabilities to achieve their goals and objective. They are always innovative
new ideas that would be implementing on the business development. For growth and
development, it is very important to know that the successful entrepreneur has focus to their
goals and objectives. A successful entrepreneur has highly skilled peoples to easily understand
the requirement of business. This is important role in his life. Without family support, it never
imagines the growth and development. According to their experience, they face many problems
and also finding the actual solutions of issues. This entrepreneur is very supportive nature and
always encourage to their employee towards the growth and development. They are use modern
technology to expands their business all over the world. Time to time provides the best services
to their customer so that they attract towards their services. They have always maintained the
positive attitudes towards the employee which are very beneficial for development as well as
organization. They motivate or influence to their employee and also maintain their relationship
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between them. These are the important things that reflect the experience and family background
of successful entrepreneur.
CONCLUSION
In this report, various types of entrepreneurial ventures are described. In these types a
person can choose any business to start with innovative idea. Furthermore, various differences
and similarities also described to apply for suitability to choosing a particular entrepreneurial
venture. Further, there are discussion about SMEs and its importance in UK economy with
proper data and statistics. Lastly, it refereed different skills and characteristics of Jack Cohen,
founder of TESCO company. An entrepreneur can uses some personality treats and become
successful.
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REFERENCES
Books and Journals:
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successful business: a decompositional analysis. International Journal of Entrepreneurship
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Du, K. and O’Connor, A., 2018. Entrepreneurship and advancing national level economic
efficiency. Small Business Economics, 50(1), pp.91-111.
Egbuta, I.C. and Gilbert, L.L., 2018. Problems Financing Small Business Enterprises in the
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Goel, R.K., 2018. Foreign direct investment and entrepreneurship: gender differences across
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Kitching, J., 2018. Critical realism as a supporting philosophy for entrepreneurship and small
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Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
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Murphy, L., Abdulai, A.F. and Thomas, B.C., 2018. Financial Entrepreneurship in Three
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Simmons, S.A., Wiklund, J. and Sunny, S.A., 2018. Gender gaps and reentry into entrepreneurial
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Stuetzer, M., Audretsch, D.B. and Potter, J., 2018. Entrepreneurship culture, knowledge
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Trehan, K., Higgins, D. and Jones, O., 2018. Engaged scholarship: Questioning relevance and
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Wynn, M. and Jones, P., 2018. Context and entrepreneurship in Knowledge Transfer
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