Entrepreneurial Ventures and Business Start-ups Report

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This report, prepared for the Federation of Small Business, examines entrepreneurial ventures and the associated regulations, particularly within the context of the British economy post-Brexit. It focuses on encouraging new entrepreneurs and analyzing small and micro businesses. The report is divided into two parts: the first explores the characteristics of different business ventures, their sizes, and their impact on the economy, including the role of community development. The second part delves into the traits of successful entrepreneurs, personality assessments, and the influence of experience, along with business personalization and future prospects. The report covers various types of entrepreneurial ventures, similarities between them, and their impact on employment and economic growth. It also touches upon corporate governance, the role of MSMEs, and the importance of small businesses in the United States. The report provides insights into the challenges and opportunities for new entrepreneurs and the significance of small businesses in the modern economy.
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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
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Executive Summary:
The following report is going focus on the entrepreneurial venture and the associated
regulations to it. In the British economic structure post Brexit period has witnessed sudden
decline in the economic flow for the business start-ups. The report has been designed in such
as way that the new entrepreneurs are highly encouraged to come up with new ideas. It
follows the theories related to the venture. There has been a thorough focus on small and
micro businesses. Through succinct elucidation of market structure and cohesive business
efforts, newly ventured businesses are analysed. The report is categorised into two different
segments. The first of it talks of gradual intervention of community development and the
impact of different sizes of businesses. The second portion of this report surrounds the
intellectual and psychological outcome of an individual where it actually captivates the basics
of investment and lead generation.
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Table of Contents
Introduction:...............................................................................................................................5
Part 1:.........................................................................................................................................6
P1. Similar Characteristic Traits between the Types of Business Ventures:.........................6
P2 Differences in the Size of Ventures..................................................................................8
P3 Impact of Micro and Small Businesses on Economy:....................................................10
P4 Importance of Small Business Start-ups on Social-Economy:.......................................11
M1& M2 Response to the Entrepreneurial Ventures...........................................................12
D1&D2 Presence of Entrepreneurial Structure....................................................................13
Part 2:.......................................................................................................................................14
P5 What Makes a Successful Entrepreneur?........................................................................14
P6 Assessing Entrepreneurial Personality............................................................................14
P7 Exemplification of the experience Influencing Entrepreneurs:......................................15
M3 & M4 Business Personalisation.....................................................................................16
D3 & D4 Commentary on Prospects....................................................................................16
Conclusion:..............................................................................................................................16
References:...............................................................................................................................17
Appendices:..........................................................................................................................20
Appendix 1...........................................................................................................................20
Appendix 2:..........................................................................................................................20
Appendix 3:..........................................................................................................................21
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Introduction:
As a senior persona of Federation of Small Business, there is a need to shoulder upon the
responsibility to take care of local business set-up. Entrepreneurship is defined as an activity
to set up a business where the risk and apprehension related to financial loss or profit is
incurred upon. An individual with the hope and ambition to become a successful entrepreneur
often steps back due to certain financial and familial issues. Hence, this report is being
structured keeping in mind how those individuals should take up the challenge to become an
entrepreneur on a small scale during the start up. It has accounted that the definition to
entrepreneurship is not only limited to ideating new business set-up, but it is also to conduct a
profound study of the creation of new business over the years. The aim of this report is to
produce a comprehensive line-up for the new starters so that they get motivated in order to
find out a way where they can invest taking up the risk.
It has been studied that many of the individuals lack comprehensive idea regarding the types
of business or entrepreneurships. Hence, this responsibility has been shouldered in the report
where detailed discussion on starting up a business or a business idea will be kept in vogue.
Study finds four basic types of entrepreneurial ventures. These are:
i) Entrepreneurship at a Small Scale, which is associated to small businesses
ii) Entrepreneurship that is Scalable
iii) Entrepreneurship at High Scale that has boundless life cycle
iv) Entrepreneurship Pertaining to Social Venture, which tends to find out solutions to
social issues (Refer to Appendix 1).
The other categories involve:
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a) Private Enterprises
b) Public Enterprises
c) Social Enterprises (Refer to Appendix 2).
It is a matter of fact that globalization with an unprecedented growth of the service sector,
small scale entrepreneurship is becoming a market in the 21st century. Most of the start-ups in
both UK and USA have been noticed to be categorized under small scale entrepreneurial
ventures.
As it has already been stated that the global market is witnessing a certain boom in small
businesses, the report agrees to this fact to a certain extent. Due growing market of the
consumers, small businesses have found their alley to embody success and profit. Moreover,
it does not involve greater number of investment thus minimising the risk of loss.
Part 1:
P1. Similar Characteristic Traits between the Types of Business Ventures:
Considering different categories of enterprises and entrepreneurial endeavours, it is often
stated that there are certain similarities and links among all of them. Building comprehensive
opinion and idea upon each of them would undoubtedly help the individuals or groups initiate
their businesses.
Similarities between the Types of Entrepreneurial Ventures
Each of the types of enterprises has distinctive business traits. However, there are certain
fields where they can be brought together. Social enterprise denotes activities pertaining to
social ventures. Social enterprises set a mission to earn profit by providing service to debar
social issues. For instance, an agency providing paid services to restrict substance abuse, or
an organisation providing paid aid for school enrolments or providing service to build up a
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place for the aged people are categorized under social entrepreneurial structure. Here they
earn money so as to consider profit. On top of that they are providing services that are
socially vibrant and helpful. On the other hand public entrepreneurs are more dependent on
the huge responsibility to provide service to the people. It becomes a regulative activity for
the public entrepreneurs. Public enterprise is an organisation, which is partly or as a whole
owned by the state. It is generally controlled through the authority entitled to serve public. In
the United Kingdom public enterprises significantly belong to the service sector. They
include broadcasting services, media services, science and research development services and
many more. Private enterprise, by its name is known to be owned by individuals. The major
motif of the private enterprises is to maximise profit through extending business goals and
carrying out the objective related to it.
The similarities between the types of enterprises are strictly covered through the features
related to organisational management, management associated to performance and concepts
pertained to behavioural patterns. As a matter of fact it has to be taken into certain
consideration that the basic business features of all of the entrepreneurial types are to some
extent similar. The micro differences vary according to the scale and size of the business.
According to O’connor (2017) in his book The Fiscal Crisis of the State has succinctly
mentioned the common traits between different business sectors. It has been studied that the
price determination process for a unit of product (that may be goods or services) in all of the
enterprises is aimed to bring profit to the organisations so that the summed up amount is
further invested for the development of it. However, the public enterprises are more inclined
to ensure fewer profit margins so as to avoid public agitation. In the third world economy, the
public sector is highly motivated to serve the public with products considering the least price
of them.
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The other similarity lies upon the structure of governing body, which is in most of the
enterprises hierarchical. There are very few organisations that do not follow hierarchical
governing body structure. It is also known as the corporate governance. Corporate
governance plays a crucial role in determining the structured of an enterprise. Following
diagram denotes the corporate governance in general:
Figure 1: Corporate Governance
(Source: Brown, 2017)
The aforementioned diagram clearly indicated general similarities of corporate governance in
all of the sectors. This hierarchical distribution of governing body in any organisation is a
regulation process.
P2 Differences in the Size of Ventures
Scale or size of business is based upon the amount of investment, number of organisational
members, financial turnovers and market presence. However the differences between the
sizes of the ventures primarily depend upon the validity of the initiatives. The presence of
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micro enterprises is felt everywhere in the market. They are mostly shops, parlours, small
restaurants where 10 to 15 members work together providing service or goods to the
customers.
On the other hand, the validity of the small business or enterprise is felt more than that of the
micro one. Usually small numbers of workers are employed in small business. Small
enterprises are generally owned independently and the volume of sales is more than that of
the micro enterprises but less than that of the medium enterprises. Once in a while called a
private venture, a little undertaking is a business that utilizes few labourers and does not have
lofty dimensions of offers. In terms that are specialised, critics often claim that worked
organization that is constrained in measure and in the earnings that are dependent upon the
performance related to business. These endeavours are generally exclusive sole associations
or privately owned organisations. Little endeavours are found in vogue in almost all the
industries. They can drive from accommodation stores to little coordinating plants. It can be a
neighbourhood shops selling breads that makes use of 10 or more individuals or an
assembling unit that utilizes 50 individuals. Extra sorts of little scale endeavours incorporates
exclusive eateries, law offices, motels, dry-cleaning shops, designing and engineering firms.
Little ventures likewise shift as far as size, incomes and administrative approval.
Categorisation of medium scale ventures is comprised of undertakings which utilize less than
250 people. These ventures rise up out of the gradual development of effective independent
growth. As an organization gains more income, it begins keeping aside the capital required
for structures, hardware and enrolment of more workers (Brown, 2017). This in the long run
makes a scaffold between private venture and huge organizations (Refer to Appendix 3).
The following table depicts the growth of market:
More than 500 employees Less than 400 employees Less Than 50 employees
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27% 34% 39%
These enterprises are, in a group called MSMEs. For a new start-up MSME has the greater
opportunity than the other size of entrepreneurial ventures.
P3 Impact of Micro and Small Businesses on Economy:
For local entrepreneurial ventures both micro and small businesses play significant roles. It is
a matter of fact that both the businesses are unable to generate as much large amount of
money as the larger corporations. The reason behind this is the absence of many of the
critical components used the latter (Dees, 2017). However, it can be contradicted that micro
and small businesses offer greater employment opportunity for the local communities. The
employment can be both dependent and independent. Many of the small and micro
enterprises are run parallel to the large corporations. For instance coffee shops or restaurants
near the corporations are considered to be small and micro ventures- depending on the
employee strength. They both have satisfactory economic growth in local, regional, national
and global market. For instance franchise owner of a branded coffee shop can earn adequate
amount of money and his or her business comes under small enterprises. According to Brown
(2017), small and micro business in the United States have generated more than 60% of
employment to the people across the country. Almost 44% of the total payroll in the United
States is paid to the employees in small and micro businesses. According to the data retrieved
from the SBA (Small Business Association, USA), it can be affirmed that more than 99% of
the employer firms in the country belong to the discussed business sector. Privately owned
small and micro initiatives include associated economies by improvement and advancement
to the associations where the enterprise is built up. Independent mission likewise help
sanction fiscal expansion by giving production odds to folks who are devoid of being
employable by better-quality unions. Private enterprises have a predisposition to pull in
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ability that create new items or actualize new answers for existing thoughts. Bigger institute
additionally regularly advantage from private companies inside a similar neighbourhood
group, the same number of substantial enterprises rely upon independent companies for the
culmination of different big business works through the process of outsourcing. The growth
of small businesses in the Small Business Bulletin by SBA has been structured through a
diagram. It says, from 2004 to 2015, the market of small businesses has witnessed significant
growth. So far the share of jobs is concerned, 27% of the small enterprises comprise more
than 500 employees whereas 34% of the businesses comprise 50 to 400 employees and 39%
of the firms have provided employment to 50 or less number of employees in the United
States. The following pie graph denotes the distribution of the number of employees working
in the small business firms in the country.
27%
34%
39%
Bulletin of Small Business
More than 500 employees
50-400 employees
50 or Less Employees
Figure 2: Bulletin of Small Business
(Source: Sba.gov., 2018)
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P4 Importance of Small Business Start-ups on Social-Economy:
As discussed above, small businesses provide ample opportunity for employment of the
community and neighbourhood. Globalisation has caused influx of millions of people in the
global cities like London, New York, Sydney and so on. However, most of the immigrants
for the purpose of employment get a scope in the larger industries with higher employment
rate and higher pay-scale. However, the small businesses through providing employment to
the local people cause community development and bonding. It also helps empowering the
relationship between the buyer and the seller. Since both the stakeholders belong to same
neighbourhood, familiarity grows thus helping in the development of the business. According
to Quarter, Mook and Ryan (2012), social-economy is greatly influenced by small business
start-ups. Before understanding the impact of the small business upon social economy, there
is a need to build a conceptual idea of social economy. Social economy, according to
Hodgson (2017), is a diverse system where the presence of varieties of enterprises and
organisations comprising foundations, cooperative sectors, mutual, social enterprises and so
on, cumulate their values, which are common in nature. Their objective and primacy is
captivated through capitalisation of investment and ensure an effective earning thus
influencing social development. The most important impact that a small business start-up can
have upon the social economy is its direct influence upon the community and their overall
development. As a matter of fact, the owners of small businesses are integral part of the
neighbourhood and community. Together they enjoy football matches or Wimbledon Open.
In Europe the coffee shops are the abode for sports fans where they gather to cheer for their
favourites during World Cup or major European leagues (Bouchard, 2013). It strengthens
their bonding with the local community (Burns, 2016). They keep coming to the restaurants
because they are accustomed with the environment. They prefer their selective local salons
because they have already built up familiarity with the staff working there.
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M1& M2 Response to the Entrepreneurial Ventures
Having discussed different types and sizes of entrepreneurial ventures, it can be affirmed that
differences in entrepreneurial ventures can be studied through the impact on social and
economic structure. Primarily an individual aiming at starting up a business has to study the
characteristic traits of the businesses. Any kind of superficial understanding will lead to
failure conduct the business. This portion of the report tends to respond to a range of
entrepreneurial ventures. in most of the cases an individual plans to set up his or her business
in his or her own neighbourhood so as to gain attention from the target audience or potential
customers.
D1&D2 Presence of Entrepreneurial Structure
Presence and strength of capital investment would determine one’s entrepreneurial strategies.
The choice of sector, whether the one should go for investing in public sectors to maintain a
share in public enterprises, or to invest as an independent private entrepreneur. In terms of
discussing the differences in the impact of the small, large and medium business upon the
economy a standard economic market needs to be taken into consideration. An extending
offer of moderate sized organizations affected financial development, particularly in higher
wage EU nations (Edel, 2017). It probably demonstrates a critical number of developing
firms in an economy, climbing from the little size segment.
An expansion in the offer of small scale undertakings and substantial organizations
negatively affected monetary development; particularly in bring down salary EU nations. The
creators characterized smaller scale endeavours as ventures with one to nine workers and
huge undertakings as those with in excess of 250 heads.
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