Entrepreneurship and Small Business Management

This report discusses the definitions of entrepreneurial activity and social economy, the differences between serial, intrapreneurs, and owner managers, the impact of micro and small size organizations on the UK economy, and the significant contributions made by small organizations to the social economy.

unit 9 Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Definitions of entrepreneurial activity and social economy...................................................1
2. The differences between the serial, intrapreneurs and owner manager..................................2
3. Impact of micro and small size organisations on UK economy ............................................3
4. Lifestyle and growth firms......................................................................................................5
5. Explain two significant contributions made by small organisation to the social economy....6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is considered as creating or extraction of the value. It is also considered
as the change that may consider other value than merely economic ones (Parker, 2018).
Entrepreneurship is develop or created by an entrepreneur who is an individual that create new
business unit by taking risk in order to enjoying success or rewards. The entrepreneur is
generally considered as innovator as well as source of new services, goods, ideas, thoughts and
process. The respective report is based on evaluation large and small entrepreneurial and it
impact on the economy of nation. Topics include in respective report are definition of
entrepreneurial activity as well as social economy and it also include difference between serial,
intrapreneurs and owner manager. Moreover it also include current statistics in order to
determine impact of micro and small size companies on United Kingdom economy as well as it
also include evaluation of different among lifestyle and growth firm on the basis of source of
funding and other aspects. This report also include example of small and local voluntary
organization as well as it also consider significant contribution of small organization to social
economy.
1. Definitions of entrepreneurial activity and social economy.
Entrepreneur activities can be describe as the practices that needs to be performed and
conducted by entrepreneur in order to successfully and effectively attain desired goals.
Entrepreneur refer as the person who creates a new business and carry out different task which
is significant providing better and accurate products and services to customers. Entrepreneur is
responsible conducting different practices and have to bear most of the risk while conducting
business practices (Venkataraman, 2019). This person have right to enjoy most of the rewards
and profits that is attain by successfully implementation of business activities. Entrepreneurial
activities consist of identifying customers needs, developing products or services, consideration
of innovation as well as performing different practices in order to provide its products and
services to customers. Entrepreneur is define as the individual who can organize, manage as
well as assume different risk factor that can have impact on business activities and
performance. Through this entrepreneur will be able to effectively and efficiently conduct
business activities as well as attain desired goals and objectives.
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Social economy can refer as the economy which is developed and formed because of
rich diversity of enterprises as well as other organisation. This includes cooperatives, mutuals,
foundations, social enterprise, association and so on. Social economy can be describe as the
branch of economic as well as social science which is directly focuses on the relationship
between economics as well as social behaviour (Quarter, Mook and Armstrong, 2017). This is
significant for determining and examining the impact of social norms, ethics, moral, emerging
sentiments of population along with the other social philosophies which will have influence
over the behaviour of consumer along with this shape public buying trends. There are different
factors of social economics that will have direct impact over economic system of the nation as
well as influence the potential of society to purchase new and different products. Social
economy is majorly concerned with the interrelationship between social process as well as
economic activities with in the society.
2. The differences between the serial, intrapreneurs and owner manager
Serial Entrepreneurship- The serial entrepreneur basically represent an individuals or
type of entrepreneur who used to continuously come up with new and more innovative ideas wit
the main aim and motto of starting a new and more profit business in a continuous way.
Intrapreneurs- These are the individuals and people who act as an entrepreneur within a
specific company or firm who takes maximum initiatives to pursue and deliver innovative
product and services (Morris and Kuratko, 2020).
Owner- manager- It basically represent an individual who act as both owner and manager
of an orgnisation or business firm. Thus, owner manager is mainly taken as a owner and
employees of an enterprise who have authority to act on behalf of company and also comprises
of management of all other business operations and individuals.
The main difference between serial, intrapreneurs and owner manager is provided below with
the help of following table:
Basis Serial entrepreneurs Intrapreneurs Owner-managers
Job status They are having the
status of owner of the
company.
They are not the owner but
the most prominent and
important individuals who
have freedom and
They act as both
owner and employees
of the firm responsible
for all operations and
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authority to do and
implement innovation
(Park and LiPuma, 2020).
management of the
company.
Risk High Risk taker in order
to come up with new
project and ideas in a
continuous way.
Moderate Risk Taker who
avoid risky projects until
there are on lower level of
risk.
Have more
conservative nature
and take low risk.
Primary
Motive
To create more money
and profits through
innovative ideas and
establishment of
profitable business in a
continuous way
(Schjoedt, 2020).
They aim at taking
initiative and innovative
ideas for leading and
directing business towards
enhanced growth.
Aim at performing the
role and jobs of both
manager and owner
with enhanced level of
authority.
3. Impact of micro and small size organisations on UK economy
A Micro Business typically the which comprises of one to ten employees and have an
annual turnover of less than $2 million. On the other hand the Small size orgnisation comprise of
one that employees less than 250 individuals and require small sums of money and finance for its
launch (Zhao and et. al., 2020). Thus, both Micro and small size orgnisation plays a vital role in
enhancing growth and progress of rate of economy through providing better employment
opportunity and also contributes in GDP to ensure better impact in economy. Apart from this,
enhanced level of innovation and creativity is also facilities by micro and small sized companies
which lead positive impact on economy of UK through enhancing start-up and innovation rate.
Following statistical facts and graphs are showing the positive impact and vital role of micro and
small size organisations on UK economy :
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Figure 1: Proportion of employment, turnover and business in various sector of UK, 2018
Interpretation
On the basis of above graph it can be evaluated that small business are important for
economy of UK as they accounts for around 48% of total employment along with 33 % of
turnover and 99.3% part of private business sector (UK SME Data, Stats & Charts. 2020).
Whereas medium business are having 14% part in turnover and 12 % of employment. On
contrary large enterprise are only having 0.1% participation in business with 40% employment
and 53% turnover. Thus, it can be said that small business are becoming more crucial and
important for economy of UK that accounts for 99.3% of total business.
Figure 2: Private Sector Business In the UK by Business Size / No Of Employees 2019, 2019.
Interpretation
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On the basis of above chart an analysis can be made that companies with no employees
(freelancers, contractors, self employed etc) are increasing at a faster rate in UK as compared
with other company sizes over 2019 which is reflecting a positive impact of micro and small
business on the economy of UK. Further, it has been also reflected that the 99.9% of the total
UK businesses are classed as y the SMEs (0-249 employees), 0.6% is uphold by the medium-
sized businesses (50-259 employees, Less than 4% are small businesses (10-49 employees) and
More than 95% are micro-businesses (0-9 employees) which is reflecting the role and
importance of micro and small business in the growth of economy of UK by providing enhanced
employment opportunity and leading better productivity and turnover (UK Small Business
Statistics, 2019.).
4. Lifestyle and growth firms
Lifestyle Firm- These firms are mainly characterised as the one which set up by an
individual to meet their basic needs thus, are better and different from traditional entrepreneurs
and focus on survival and maintaining a better work life balance (Park and LiPuma, 2020).
Growth Firms- It mainly comprises off growth minded model of business which aim at
fast growth and enhanced productivity in a fast way by the means of enhanced expansion and
production which makes truly big impact on the world.
Difference between Lifestyle and growth firms
Basis Lifestyle Firm Growth Firm
Reason of set up The main reason of setting up
a lifestyle firm by an
individual is to meet their day
to day expenses and for
survival of their family to earn
enough money to have a good
work life balance.
The main reason and aim of
setting up a growth firm is to
grow their companies as fast
as possible with a growth
minded business model that
emphasis only on enhanced
expansion and productivity
(Morris and Kuratko, 2020).
Sources of funding The financial needs of a
lifestyle firm is limited thus,
they are self funded and use of
internal sources of funds like
The financial needs of growth
firm are quite high thus, funds
are accrued from external
sources which consists of
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retained earnings and personal
sources of funds is made to
meet monetary expenses and
financial need of the business.
Bank loan, venture capitalist,
etc.
5. Explain two significant contributions made by small organisation to the social economy.
Small and local voluntary organisation can be describe as the business that have less them
50 employees and it is providing its products and services to local customer. For example Airdri
company. This is UK based organisation that is providing its different types of products and
services to customers of UK. The major product of Airdri organisation is hand dryer and it is
providing high quality products to customers. There are large number of small and local
voluntary organisation that is significant for enhancing economic system of nation. This will lead
to have major impact on overall nation capability as well as enhance economic potential (Burns,
2016). Small business and local voluntary will lead to have significant contribution on social
economic of the nation. Significant contribution of small and local voluntary organisation to
social economy are mention below -
 Employing local workers – Small and voluntary organisation will lead to provide more
support to social economic of the nation. Through the contribution of small business there
will be increase employment to local worker. This is effective for providing better and
effective working opportunities to employees that will lead to their overall growth and
development. It is very important that more employment opportunities is provided to
citizens as this is significant for providing better working area as well as improve
potential of people to purchase new things. This will lead to provide more better and
accurate opportunities to citizens and improve their living standards.
 Contribution to local government with taxes – small and voluntary business lead to
contribution large amount of taxes to local government. This is very important in order
to successfully and effectively social economy of the nation and improve overall growth
of nation (Nambisan, 2017). Through local business will provide taxes to local
government through its functioning. Small and voluntary business are considered to be
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more effective in order to enhance social economic rates of the country as this will lead to
bring innovation to the community.
CONCLUSION
Through the evaluation of above mentioned topics it can be summarised that in current
time every nation is promoting entrepreneurial firm and entrepreneur as they help in enhancing
economy conduction of nation by generating employment opportunities at local, national and
international level. There are different types of manager such as serial, intrapreneurs and owner
manager as well as their work and aim of conducting business is also different. Through the
evaluation it is also determined that micro and small size companies impact on the United
Kingdom economy in positive manner as they provide employment, improve leaving standard
and so on. Moreover, there are different types of firm in which entrepreneur can conduct
business like lifestyle and growth as well as there are several small and local voluntary firm
which impact on the social economy.
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REFERENCES
Books and Journals
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal ideas
for the next twenty-five years of advances. Emerald Publishing Limited.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice, 41(6), pp.1029-1055.
Quarter, J., Mook, L. and Armstrong, A., 2017. Understanding the social economy: A Canadian
perspective. University of Toronto Press.
Spear, R., Defourny, J. and Laville, J.L. eds., 2018. Tackling social exclusion in Europe: The
contribution of the social economy. Routledge.
Morris, M. H. and Kuratko, D. F., 2020. Venture types: what entrepreneurs actually create. In
What do Entrepreneurs Create?. Edward Elgar Publishing.
Park, S. and LiPuma, J. A., 2020. New venture internationalization: The role of venture capital
types and reputation. Journal of World Business. 55(1). p.101025.
Schjoedt, L., 2020. Exploring differences between novice and repeat entrepreneurs: does stress
mediate the effects of work-and-family conflict on entrepreneurs’ satisfaction?. Small
Business Economics, pp.1-22.
Zhao, W. and et. al., 2020. Entrepreneurial alertness and business model innovation: the role of
entrepreneurial learning and risk perception. International Entrepreneurship and
Management Journal, pp.1-26.
Online:
UK SME Data, Stats & Charts. 2020. [Online] Available Through:<
https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/ >.
UK Small Business Statistics. 2019. [Online]. Available Through: <https://www.fsb.org.uk/uk-
small-business-statistics.html>
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