Entrepreneurship and Small Business Management

This document discusses entrepreneurship and small business management. It covers different types of entrepreneurial ventures, their relation to typology of entrepreneurship, and the similarities and differences between them. It also explores the impact of micro and small businesses on the economy and the importance of small businesses and start-ups in the social economy. The document provides insights into the characteristics and skills of successful entrepreneurs and examines how background and experience can hinder or foster entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different ventures and how it is relate with typology of entrepreneurship............................1
P2 Similarities and differences between entrepreneurial ventures..............................................2
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate understanding
towards public and private sector................................................................................................4
D1 Critically examine scope, development and growth of entrepreneurship ventures...............5
LO 2.................................................................................................................................................5
P3 Interpret and assess relevant data and statistics to demonstrate how micro and small
business impact on economy.......................................................................................................5
P4 Importance of small businesses and start-ups to make growth of social economy................8
M2 Evaluate differences small, medium and large businesses that make to the economy with
applying relevant data and statistics............................................................................................9
D2 Critically examine how small businesses which can impact on different levels of the
economy.......................................................................................................................................9
PART 2............................................................................................................................................9
LO 3.................................................................................................................................................9
P5 Demonstrate characteristics traits and skills of successful entrepreneurs that can be
differentiate from other business managers.................................................................................9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set...............................................................................................................................10
M3 Explore and examine different lines of argument that are related with entrepreneurial
characteristics............................................................................................................................11
D3 Analyse characteristics traits. Skills and motivational drivers of successful entrepreneurs
which supporting with example.................................................................................................11

LO 4...............................................................................................................................................12
P7 Using example, how background and experience which can hinder and foster
entrepreneurship........................................................................................................................12
M4 Analysis link between entrepreneurial characteristics which influence personal
background and experience to successful entrepreneurs...........................................................12
D4 Critically evaluate how background and experience which influence entrepreneurs in
positive and negative term.........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship businesses is very important which provide several opportunities for
different entrepreneurs that create meaningful results. In this regard, they are foster local
economies that support with support of different communities. It improve standards of living that
create wealth which is related to make desired results (Yadav and Unni, 2016).
In the present study, different case discussed in which successful entrepreneurs work in
UK. Furthermore, start-up businesses run with more effective operations and functions that
assists to make desired results in the organisation. Different entrepreneurial ventures successfully
worked to increase their profitability with several kinds of products selling in UK.
With respect to focus on the present study, it covers different kinds of entrepreneurial
ventures that are successfully run their operations and functions with typology of
entrepreneurship businesses. Furthermore, it includes data and statistics which shows that how
micro and small businesses grow economy in positive manner. Moreover, start-up businesses
importance considered within the organisation that is successfully develop results in systematic
manner. In addition to this, it demonstrate differences in small, medium and large businesses to
make economy effective with applying relevant information and statistics. At last.
Characteristics traits and skills of successful entrepreneurs explained which is useful to make
desired results in the organisation.
PART 1
LO 1
P1 Different ventures and how it is relate with typology of entrepreneurship
Entrepreneurship is successful process in which entrepreneurs develop, launch and run
their business with taking financial risks. In other words, it is willingness to launch new
enterprise that is more important for economic development to expand global marketplace. The
person who takes entrepreneurship that is known as entrepreneurs.
Types of entrepreneurship Small business entrepreneurship: In today’s time majority of the organisation are
generally small enterprises. Therefore, all companies that small enterprises in which
majority of non-governmental workers. In this kind of small business entrepreneurship
grocery, electricians, plumbers, carpenters, etc. (Laukkanen and Tornikoski, 2018).
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 Scalable start-up entrepreneurship: With this regard, entrepreneurship business start
their company with believing on vision which can make changes in the whole world. In
addition to this, in this of business ventures capitalists and they hire the best staff
members (Read, Sarasvathy and Wiltbank, 2016). Finding scalable business is
accomplish goal. Funding from venture capitalists is needed for grow business in
successful manner. Main example of this kind of businesses are online shopping
businesses, Facebook, Instagram, etc. Large company entrepreneurship: Large companies develop their successful operations
and functions with sustaining innovation and offering new products as well. In this
consideration, new products are developed with meeting customer needs and develop
advanced technology in it. Mainly, this kind of the organisations partnering with buying
innovative products with companies. Main example of the large company is Google,
Microsoft, Samsung, etc. (What is entrepreneurship? Types and importance, 2019).
 Social entrepreneurship: Social entrepreneurship is the organisation in which
entrepreneurs creates services and products to solve social issues and problems. Main aim
of this type of entrepreneurs is to make world better and not earning profit. This
businesses can be non-profit or hybrid (Ramadani, Gerguri-Rashit and Fayolle, eds.,
2015). For instance, Marc Koska which is work to redevelop medical tools.
Typology of entrepreneurship Lifestyle entrepreneurship: In this aspect of entrepreneurship, entrepreneurs set up their
goals with aim to increase income at particular level (Wang and Liu, eds., 2016).
Therefore, lifestyle entrepreneurs related with professional blogging, journalists, etc. Profit venture entrepreneurship: In this kind of business, entrepreneurs have motive to
earn profitability. Therefore, they invest money with several staff members to bring more
financial profitability (Laukkanen and Tornikoski, 2018).
 Corporate sector entrepreneurship: Corporate entrepreneurship develop their operations
and functions with several kind of economic activity for serving several individual
(Yadav and Unni, 2016). In this aspect, Tesco is successful corporate sector
entrepreneurship business in UK.
P2 Similarities and differences between entrepreneurial ventures
Differences and similarities between different entrepreneurial ventures
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Basis Small
entrepreneurial
venture
Scalable start-
up
entrepreneurial
venture
Large
entrepreneurial
venture
Social
entrepreneuria
l venture
Goals
and
objective
s
Small entrepreneurial
ventures not
considered any
structured goal
because they are
working for small
amount of profit.
In this kind of
ventures have
aim to provide
innovative
products that are
constantly
develop to
accomplish
profitability
from several
investors.
In these kind of
business require to
sustain within the
market with selling
new products and
services with using
different marketing
strategies
(Laukkanen and
Tornikoski, 2018).
They are
working with
aim to
demonstrate
quality in
products to
make service
better.
Risks In this business very
low amount of
investment has been
considered so that risk
is very low. However,
there is majority of
competition exist with
same size of
organisation.
Due to high risk
in financial
investment, there
is a lot pressure
on business.
Hence, they earn
more from their
enterprise.
In this business,
risk is medium
because large
enterprise manage
their sales with
high volume to
create own brand
value (Ramadani,
Gerguri-Rashit and
Fayolle, eds.,
2015).
Risks is not
large because,
they are getting
support from
government. In
addition to this,
public also
make support
which is
essential for
social
enterprise.
Employe
es
There are not more
than 50 employees
work.
Staff members
depends on
requirement of
the company.
More than 1000
staff members
work in this kind of
entrepreneurial
Employee’s
requirements
depends on size
of the
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venture. enterprise.
Similarities
Kind of
business
This is
entrepreneurship
business so that they
work for new
products and services.
They are also
work to provide
innovative
products and
services to
customers.
In this business,
new products and
services developed
that is important to
increase
profitability of the
organisation.
They are also
working to
solve social
issues and
problems with
demonstrate
effective
products and
services
(Laukkanen and
Tornikoski,
2018).
Motive Small
entrepreneurship
business has motive
to develop business in
different areas (Jones
and et.al, 2018).
They are also
work to increase
effectiveness in
the organisation.
They work to
develop operations
of the business in
positive manner.
Social
entrepreneurial
ventures have
motive to
increase their
own
sustainability in
different areas
of the world.
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate understanding towards
public and private sector
Public sector businesses is directly controlled by government in which higher investment is
needed as compare to private businesses. On establishment of this type of business, it is essential
for them to emphasis on social development and welfare. Hence, quality of products and services
depends on the customer’s needs. In addition to this, in corporate sector individual owned their
business with taking more effective products and services so that profitability will be increased.
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With this regard, sustainable development program run to focus on competitors with earning
competitive advantages (Yadav and Unni, 2016).
D1 Critically examine scope, development and growth of entrepreneurship ventures
In order to consist views of Read, Sarasvathy and Wiltbank, (2016), every business has a
different mission, vision, and objectives. Therefore, it affects to the venture’s scope,
development, and growth. If businesses develop their products they are easily meet with
customer demand successfully. Hence, it will assist to sustain for a long time that helps to
generate profitability. Entrepreneurial ventures required to focus on development by getting
more investment. However, Wang and Liu, eds., (2016) critically argued that there is more scope
of entrepreneurial ventures because with the help of increasing communication different types of
enterprises will easily work to fulfil their customers’ requirements. Sustainable strategies also
followed to make more growth in the business. On the other hand, Jones and et.al, (2018)
critically examine that growth of the organisation successfully develop functions within the
organisation.
LO 2
P3 Interpret and assess relevant data and statistics to demonstrate how micro and small business
impact on economy
Turnover
In UK economy, small and micro businesses take important part which is more effective
for growth of the country. In this consideration, one of the important metrics that helps to spring
mind is turnover that assists to measure economic contribution. Small and medium sized
enterprises combined their turnover of around £2.0 trillion in year 2018. There is 52% of private
sector’s turnover which create positive impact on economy of UK.
Employment
Majority of the businesses are not employers but different sole traders who work
independently small businesses contribute large participation in job creation in UK. Small
businesses are generally employ over 16.3 million people in UK where more than 60%
employees work in private sector employment.
Growth
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In order to demonstrate growth of small businesses, in UK there is high record. In this
consideration, 50% of SME enterprises stated that they expand their operations to make positive
results in the country.
Figure 1 Small businesses contribution in term of turnover, employment and growth
Source: (The role of small businesses in the UK economy, 2019)
From the above picture, it has been analyse that in UK economy majority contribution
considered by manufacturing businesses which is 32%. In this regard, professional and scientific
organisation consist 14%. Accommodation and food services is very less that is -25%.
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Figure 2 UK SME Data, Stats & Charts
Source: ()
According from the research, it has been analyse that in business department in which
energy & industrial strategy implement which is start in 2018 with massive 99.9% of 5.7 million
enterprises within the UK that are small or medium size organisations. These SMEs, demonstrate
which have up 250 staff members in UK which 16.3 million people working over there. As
mentioned previously in 2018 there are more than 5.7 million enterprises within the UK. This
figure continuously increased day by day so that it consist more private jobs for employees.
From the graph, it has been analysed that 99.9% of all UK businesses classed in SME in which
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0-249 staff members work over there. 0.6% are medium sized enterprises where 520-259
employees work here.
P4 Importance of small businesses and start-ups to make growth of social economy
Small and start-up businesses contribute major part in growth of the social economy. In
this consideration, small firms are more important in rural areas and large cities as well because
economic benefits of shopping continuously developed. In villages and town, small enterprises
only business which can survive with serving and reduced population. It helps to provide unique
and personal experience so that small businesses develop several kinds of employment
opportunities to serve better in large corporations (Thorgren and Wincent, 2015). Employing local workers: Small organisation contribute in local economies with more
employing workers. It brings more growth and innovations in community where
businesses are successfully established. It also assists to stimulate growth with dealing in
larger corporations. Small enterprises also tend with invention of new products with
implement new solution with existing ideas. Many of larger corporations depends on
completion in different functions of organisation (Ramadani, Gerguri-Rashit and Fayolle,
eds., 2015). Adapting with changing climates: In UK, small businesses also process with respond
quickly to make changes in economic climates. This is because of they are customer
oriented and understand needs of community easily. Many local customers are also
remain loyal so that in economic crisis they can further strengthen local economies. Contribute to local government with taxes: Moreover, small business is also important to
contribute their part to local government with taxes. In this consideration, when
customers thriving to small businesses they can also improve taxes for government
(Laukkanen and Tornikoski, 2018). As a result, it can be stated that small business is
backbone of taxation department. This is because, they focused on unique projects to
improve and attract additional customers.
 Grow small business to large corporation: Small businesses also look to grow in
national and international marketplace. With national and international marketplace,
growing large businesses often remain in the community that stimulate the local economy
(Read, Sarasvathy and Wiltbank, 2016).
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M2 Evaluate differences small, medium and large businesses that make to the economy with
applying relevant data and statistics
In UK, there are several small, medium and large organisation contribute participation in
developing positive operations and functions. In this regard, larger part of every industry
contribute in economy of UK. This is because, large organisation earn more revenue with
providing quality of products and services with positive brand value. Many of the larger
businesses in UK develop their operations in different nations which make desired results to earn
foreign currency. Along with this, larger organisation considered different kinds of operational
activities that assists to employ higher candidates to increase CSR activities in the business. On
the other hand, other small and medium sized enterprises work to develop innovative products to
gain more customer attraction (Rae and Wang eds., 2015).
D2 Critically examine how small businesses which can impact on different levels of the
economy
In UK, small businesses work to develop economy stability in the country. With this regard,
at regional level, they compete with other businesses to deal in quality products and services.
Therefore, demand of customers can be easily fulfilled (Ács, Szerb and Autio, 2016).
Furthermore, businesses are also focusing to hire staff members with less amount of salary
because of lack of finance. It is reducing unemployment. On the other hand, at national level
organisation can be easily expanded operations in several areas to increase revenue and
profitability which enable to provide higher taxes as well. At global and international level
products and services sold in different nation to earn foreign currency to contribute growth of the
nation (Wang and Liu, eds., 2016).
PART 2
LO 3
P5 Demonstrate characteristics traits and skills of successful entrepreneurs that can be
differentiate from other business managers
In order demonstrate different characteristics, traits and skills of successful entrepreneurs,
it can be stated that business operations increase growth. With setting up enterprise, different
process needs which considered by an entrepreneur to complete needs in which lack of capital is
first demonstrate (Blackburn, 2016). Entrepreneurial mind set also refers as the specific state in
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which several opportunities with setting innovations. In this consideration, Elizabeth Gooch is
seventh most successful female entrepreneur within the UK. She is founder of EG solution which
is small company that is selling operations management software which assists to generate
innovative results at workplace (Ramadani, Gerguri-Rashit and Fayolle, eds., 2015). It is only
company where return on investment is based on results that are delivered. However, Tom
Mercer who is successful entrepreneur with Bain and Co. in the city of London. He take
successful plan to open more stalls and extend company beyond the London with selling Ocado
which is leading UK internet retailer. Elizabeth also develop alternative investment market
instead of approaching venture capitalists and control the organisation in successful manner. She
possess characteristic traits as a successful entrepreneur is long goals and vision so that
organisation effectiveness will be develop successfully in the business (Gërguri‐Rashiti,
Ramadani and Ratten, 2017). As compare to this, Tom possess good management skills that is
related with different kinds of resources such as financial and human.
In order to demonstrate skills of successful entrepreneurs is that communication skills
which possess by Elizabeth to interact among different range of people such as customers,
suppliers, employees, etc. Beside this, leadership skills also needed to create path for staff
members to attain desired goal (Walsh and Cunningham, 2016). It is essential to complete tasks
to make successful results. Tom’s distinctively colourful carts are developed in which 25 people
working for him. In addition to this, leadership skills that is needed to make perfect path to attain
goals. Furthermore, in 1993 software called operational intelligence which was launched in first
year so that £600,000 invested in it. Elizabeth also met with Rodney Baker-Bates who is CEO of
prudential financial services. Things are also dramatically changed. On the basis of consultancy
work, she changed strategic planning of business to develop it (Kuzmina, 2017). On the other
hand, Tom Mercer particularly seemed with colourful carts that are common sights around the
stations in London. Tom now plans to open more stalls and extend their organisation with selling
through Ocado which is leading UK internet retailer.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set
The entrepreneurial personality of each and every individual is more important than helps to
set business and motivate people to deal with different problems and issues. In this regard, fewer
risks associated with it (Cueto, Mayor, and Suárez, 2015). Entrepreneurial personality also
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involves characteristics that help each individual that helps to generate new ideas and implement
it to increase revenue. These kinds of ideas required to meet with demand and work constantly to
increase sustainability (Ramadani, Gerguri-Rashit and Fayolle, eds., 2015). Elizabeth and Tom
both are successful entrepreneurs who take several risks to accomplish their own mission. In this
regard, sales and revenue increases which make more profits and identify opportunities to
generate effective results.
Entrepreneurs required to assess different opportunities that assist to increase sales in
business operations with managing risks associated with it. Ultimately, it will aid in managing
transparency and achieve goals. Furthermore, Tom also takes different risks and possesses
capabilities that need to be a focus on accomplishing targets in a systematic manner. With this
consideration, continuously changes are made in business strategies by Tom so that he got the
perfect achievement of goals and objectives (Kuratko and Morris, 2018).
M3 Explore and examine different lines of argument that are related with entrepreneurial
characteristics
Characteristics of successful entrepreneurs possess different kinds of similarities with
different characteristics of successful leaders. In this regard, successful entrepreneurs such as
Elizabeth and Tom deal with different risks that are helpful to make plans to achieve goals. They
both are dealing with several people who handle business in a successful manner. With this
consideration, the plan is needed to deal with different kinds of resources that show the path to
perform good management skills that manage the whole organization and solve conflicts as well
(Rusu and Lucian, 2015). On the other hand, Blackburn, (2016) argued that Elizabeth is
successful entrepreneur who possess quality of passionate towards her work. Her capabilities
helps to solve conflicts among different staff members. With taking entrepreneurial
characteristics of Tom, it can be stated that he was not passionate as Elizabeth.
D3 Analyse characteristics traits. Skills and motivational drivers of successful entrepreneurs
which supporting with example
Elizabeth successfully set up EG solution which progressed very fast and contributes
towards the growth of the business with traits and skills. She is passionate about her work and
makes successful growth of the organization in different areas of the world. Furthermore, she is
famous for her strategy which perseveres to learn more with attitude. Moreover, Tom is also
looking for exchanging and receiving feedback by offering different kinds of innovative
11

products. These products help to make him successful entrepreneurs (Audretsch, Hege and
Veith, 2015). Elizabeth and Tom possess different characteristics traits such as new ideas which
assists to take risks as well. With motivation they can also accomplish their goals that are
effective to manage significant advantages. Furthermore, there are certain skills that helps to
entrepreneur such as communication skills, leadership skills and management skills as well.
Hence, they are achieve success easily.
LO 4
P7 Using example, how background and experience which can hinder and foster
entrepreneurship
Tom Mercer graduate person from Cambridge University who was a management
consultant in the city of London. He majorly spent his days to set up successful business ideas
that are particularly seemed to stick with him. There are a lot of options for lunch and dinner but
there is a few healthy breakfasts. With the help of actual and smooth oats, positive results got in
different food items (Yadav and Unni, 2016). This type of hinder and foster entrepreneurship
program helps him to make successful results which can be effective to maintain effectiveness in
entrepreneurship business.
On the other hand, Elizabeth also a successful entrepreneur who focuses on EG solutions.
With the help of different selling operations management software, she helps and fosters
entrepreneurship programs in operational performances and efficiency. She was born and
educated in England. In early age, she was a natural female entrepreneur. She possesses a
positive vision and grows successful to make more creativity in a positive manner (Laukkanen
and Tornikoski, 2018).
M4 Analysis link between entrepreneurial characteristics which influence personal background
and experience to successful entrepreneurs
Elizabeth was a successful entrepreneur who has a clear mission, vision and objective to
make positive results in the business. By taking EG solutions, she was influenced by her personal
background which helps her to deal as a successful entrepreneur. She also had earned business
experience so that successful business development with Consultancy Company. On the basis of
providing development support, women entrepreneurs get positive results. Besides this, Tom
Mercer develop his personal interest in the computer so that he had made a successful program to
12

get successful results. As per his characteristics his background make him successful
entrepreneur (Jones and et.al., 2018). According to this, it can be stated that entrepreneurial
characteristics is effective to attain positive outcomes.
D4 Critically evaluate how background and experience which influence entrepreneurs in positive
and negative term
Background and experience helps each individual that affect entrepreneurship in different
aspects. With this regard, Elizabeth and Tom motivated to solve issues and problems in a
continuous manner which assists to solve different problems and issues. They are getting more
effective and efficient which assists to run their business in a systematic manner. From an early
age, they want to become entrepreneurs so that they create a positive impact on their successful
outcomes (Thorgren and Wincent, 2015). As compare to Elizabeth, Kuratko and Morris, (2018)
argued that background of Tom influence him to get successful results but he failed some times.
Therefore, it create negative impact.
CONCLUSION
From the present report, it can be summarised that successful entrepreneurship businesses
get more effectiveness with increasing more revenue and growth as well. In this consideration,
report concluded about different kinds of entrepreneurial ventures. This entrepreneurial ventures
helps to make positive results in economy. There are several businesses exists such as micro,
medium and large businesses. Furthermore, it articulated regarding contribution of micro and
small business in UK economy that is useful to contribute desired results in systematic manner.
Moreover, it demonstrated contribution towards larger part in creation of value which would be
helpful to make significant advantages. At last, it summarised towards different entrepreneurs
those are successful and make their contribution in development of country.
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REFERENCES
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Blackburn, R.A., 2016. Government, SMEs and entrepreneurship development: Policy, practice
and challenges. Routledge.
Cueto, B., Mayor, M. and Suárez, P., 2015. Entrepreneurship and unemployment in Spain: a
regional analysis. Applied Economics Letters, 22(15), pp.1230-1235.
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the transition economies context. Thunderbird International Business Review, 59(1),
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Online
The role of small businesses in the UK economy. 2019. [Online] Available through: <
https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-economy>
What is entrepreneurship? Types and importance. 2019. [Online] Available through:
<https://www.feedough.com/what-is-entrepreneurship-types-importance/>.
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