Entrepreneurship and Small Business Analysis Report, UK Context

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and its role in economic development, then delves into various types of entrepreneurial ventures, including non-profit, large-scale, small-scale, serial, and social ventures. The report compares and contrasts these venture types, highlighting their similarities and differences. It then explores the impact of micro and small businesses on the economy, emphasizing their contribution to employment and GDP growth, while also addressing market gaps and demographic targeting. Additionally, the report discusses the qualities of a successful entrepreneur and how background and experience influence business outcomes. The report concludes with a summary of the key findings and insights into the dynamic landscape of entrepreneurship in the UK, including the importance of small businesses in fostering social and economic growth.

Entrepreneurship and small
business management

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
PART 1............................................................................................................................................1
P1 types of entrepreneurial ventures......................................................................................1
P2 Similarities and difference in ventures..............................................................................2
P3 Impact of micro and small business on economy.............................................................5
P4 Importance of small business on growth of social economy............................................7
Part 2...............................................................................................................................................7
P5 Explanation about the qualities that makes a successful entrepreneur..............................7
P6 Aspects of entrepreneurial identity mirror his entrepreneurial inspiration and attitude. . .9
P7 Background and experience can thwart or cultivate business........................................10
CONCLUSION............................................................................................................................11
REFERENCES.............................................................................................................................12

INTRODUCTION
Entrepreneurship can be defined as capacity and willingness of individual to develop a
business venture and make profit (Drucker, 2014). Entrepreneur takes risk; implement innovative
ideas in order to sustain in the market for longer duration. Small businesses are the essential
players that contribute well in economic development of nation. Present study will discuss types
of entrepreneurship ventures and their topology. Furthermore, it will define similarities and
difference in different types of ventures. Study will illustrate impact of micro business have on
the economy. In addition, importance of small business on growth of social economy will be
explained. Furthermore, report will explain impact of small business on UK economic condition
and will give evidence for the same. It will also explain qualities that makes a successful
entrepreneur. In addition it will describe impact on background and experience on overall
success of entrepreneur.
PART 1
P1 types of entrepreneurial ventures
Entrepreneurs are individuals who do something better in order to establish the new
business and make profit. They concentrate on needs and demands of the market, performance of
existing companies and find new ways through which they can match with these requirements.
There are various kinds of entrepreneurship ventures (Abreu and Grinevich, 2013). These are
explained as below:
Non-profit entrepreneurial ventures
These are such business units those which conduct their operations for the welfare of
society. These entities work for improving life of individuals rather than making profit. They just
earn money to recover the cost so that operation can be run in effective manner. NHS is the non-
profit organization which is providing amazing health and social care services to the population.
It is continuously working for improving their life (Business and entrepreneurship skills and
experience, 2017). These ventures look at the needs of people and implement innovative ideas
through which these needs can be fulfilled.
Large scale entrepreneurial ventures
These are other types of ventures those which conduct their operations at large scale.
They are global organization those which have international presence. Their main agenda is to
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earn profit and sustain in the market for longer duration (Drucker, 2014). This may be private or
public depends upon the structure of business. Global firms identify needs of consumers and
provide those goods and services accordingly. They offer them amazing discounts so that people
get attracted towards them and company can earn profit. Tesco, Sainsbury etc. are good example
of global or large scale organization. Their topology is to make profit and satisfy needs of
consumers (Abreu and Grinevich, 2013).
Small scale entrepreneurial ventures
These are other types of ventures. These entities perform in the market well and
contribute to the economy growth as well. All these ventures conduct their operations at small
scale. They have limited financial resources and utilize these resources in effective manner.
Their aim is to make profit in order to sustain in the market for longer duration. They conduct
market research in order to identify needs of consumers (Business and entrepreneurship skills
and experience, 2017). Furthermore, these ventures implement innovative ideas through which
these firms can meet with the needs of consumers. They work at limited areas so that overall goal
of the venture can be accomplished.
Serial entrepreneurial ventures
This is the type of venture in which business owner monitor day to day activities. They
always focus on unique way to carry out operation but effective functioning of daily operations.
This helps the business in earning more profit and sustaining in the market for longer duration
(Drucker, 2014).
Social entrepreneurial ventures
These are another type of ventures those which run the business for improving social
condition of the society. They look at the basic needs of people and provide them innovative
products so that they can live a healthy life.
P2 Similarities and difference in ventures
Micro business enterprise is analysed as those ventures which employs less than 10
employees and having a balance sheet or less than certain amount.
Small medium enterprise are termed as medium sized enterprise which have their operations at
national level and exists in different industries having many power of less than 250 employees.
In UK, SME represents almost 99% of private sector venture in UK (Down, 2010).
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Small business enterprise which is also analysed as venture is started by one single individuals
by making investment of personal capital and regulating operations at regional or national level.
Public Private Sector Non-profit
A public
sector
entrepreneur is a
very challenging
venture it can be
very dynamic in
environment.
Private organisational venture will be very
challenging due to the nature of operational
challenges
This type of
vebture will be
challenging due to
the requirements of
engaging people to
vontunatirly make
contributions
High
demand of
manpower-
Public
firms require
huge people in
workplace so.
On other hand private firms employees large team
of staff members. They expand their business
across the world thus; they require many people to
work in the organization.
They do not need
much people, they
can hire employees
as per requirement
of current
situation.
Operation
al challenges
Public
firms have to face
operational
challenges
As private firm always work to improve
operational efficiency level of entity thus, they face
challenges of financial issues etc.
Non profit firm
have operational
issue of poor
monitoring
because these
volunteers work in
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because these
firms do not
prefer to make
technological
changes
frequently.
different locations
thus, it is difficult
to monitor their
performance.
Difference
Public –
will be very large
Same or It can work as
medium size of
large firm.
Public firms have to face huge challenges because changes in legal norms, economic
condition impact on these firms to great extent. On other hand private firms always makes
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contingency plan in order to sustain in the market for longer duration. They do not have to be
depended on government to make decision. Thus, these firms always follow rules and
regulations but make plan so that they do not have to face challenges. Private firms require more
people as compare to non profit firm.
Entrepreneurs are analysed as those individuals who generate new ideas and concepts for
establishment of business operation for different purpose.
In present context, there are various differences between these enterprises which are mentioned
below:
Basis Non-profits
organization
Small
scale entrepreneur
Large scale
Meaning Also considered social
entrepreneurialventures
which are established
by individuals or
organization in order to
resolve social issues
and providing support
to local communities in
UK. These business
ventures also provide
aims at reducing the
problems of people by
increasing growth
opportunities and
development.
These are other types of
ventures. These entities
perform in the market
well and contribute to
the economy growth as
well. All these ventures
conduct their operations
at small scale. They
have limited financial
resources and utilize
these resources in
effective manner. Small
scales ventures are also
considered as sole
proprietorship as it is
established by single
person at own risk and
investment (Lee-Ross
and Lashley, 2010).
These are usually
International business
ventures which are
established by
individuals or
entrepreneurs and
organization in order
to maximize
profitability along
with fulfilment of
requirements of
people in country.
These ventures
concentrate on
increasing
opportunities of
growth and also
towards development
of new products and
service to meet the
customers’
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established with new
business ideas and
concepts.
requirements.
Purpose Resolving issues of
individuals living in
poor and
underdeveloped
communities which are
facing various
economic issues,
financial management
(Sahut and Peris-Ortiz,
2014).
Main purpose of small
scale ventures is to
maximize profits and
achieve high market
share in industry.
These ventures
established with the
purpose of expansion
at international level,
maximizing
profitability and
development of new
products and service
to meet the
customers’
requirements.
Investments These business ventures
usually get investment
in the form of donation
and rewards from other
organization or
government.
These ventures get
investments from
owner’s capital,
financial institution,
crowd funding and
angel investors etc. they
are not able to issue
their share and
securities.
Usually generate
financial resources by
issue of share,
debentures and other
securities in market.
They are also
established by
partnerships.
Growth share These ventures
provided their
contribution towards
growth and
development of local
communities and
people.
Small scale venture also
generate profits but they
have their limited share
in providing growth
economy of country.
Large scale venture
are mainly
responsible towards
providing growth and
development to
country by generating
high revenue and
contribution towards
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GDP.
Similarities between these ventures
Serial venture Small venture Social venture Large scale
Provide contribution
towards development
and growth of country
Entrepreneurs in small
scale enterprise are
mainly responsible
towards growth and
development of
country.
Growth and
development of
country and local
communities is the
purpose of
establishing small
scale ventures.
By generating high
revenue and
recognition , large
scale venture tends to
provide major support
in development of
economy.
These ventures are
established with the
purpose of generating
profits and increasing
employment
opportunities for
people continuously.
Increase in these
venture will also
create employment
forpeople and also
provide promotion to
establishment of own
business ventures
(Neck and Greene,
2011).
High employment
opportunities have
been generated by
social ventures in
order to reduce
problem of
unemployment from
societies.
Large scale
organization employs
large population of
staff at different levels
and with expansion of
business they will also
generate high
employment
opportunities for
people.
P3 Impact of micro and small business on economy
Creativity is mainly analysed as the ability in order to think and develop unique business
ideas that provide support in accomplishment of various business objectives. Micro business
enterprise is analysed as those ventures which employs less than 10 employees and having a
balance sheet or less than certain amount. Small medium enterprise is termed as medium sized
enterprise which have their operations at national level and exists in different industries having
many power of less than 250 employees (Stokes, Wilson and Wilson, 2010). These small
business enterprises are identified as back bone of UK economy, driving growth, opening new
markets, creating jobs therefore their influence is vital. Innovation is analysed key for success of
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these enterprises because they usually accept change very fast in comparison with large scale
enterprise. SMEs are a very important part of the economy, as they represent around 99 % of all
enterprises and employ an increasing number of persons.
There is influence have been provided by these enterprises which are mentioned below:
 Increase in employment: Micro and small venture are increasing continuously by
establishment of business with new ideas of developing innovative products and service.
These ventures have provided contribution of 33% to overall 870000 jobs in present
year.These are defined as firms which have fewer than 10 employees but these companies
have made up of 4.6 Million enterprises in UK.
Figure 1Statistical data
(Source: Statistics on small and medium-sized enterprises, 2017)
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 GDP growth: Development of small business ventures and micro enterprises have
generated revenue and provided contribution towards growth of GDP index. These
enterprises are providing services to more than 500 million customers in UK.
Gaps in services
Large organization always offer amazing high quality services but small size firms are
unable to meet with these standards. There is gap between services of both these entities. But as
these small businesses charge less money so they offer such value to the consumers.
Demographic or target market- needs /demand and supply
They offers products to consumers at affo9rdable rates thus, they target lower income
group of people. This helps these firms in performing well in economic slowdown condition as
well.
Innovation and creativity
Small size organizations are more creative, they implements small innovative ideas that
can be better for them in managing their business well. But as compare to large organization they
do not make big innovation because of availability of lack of resources. But small creative ideas
help them in attracting people towards the organization.
P4 Importance of small business on growth of social economy
There are is major important of small business enterprise and start-ups in social economy
as they are established by individuals living local communities within UK. Below given are the
point which determines significance of Small business ventures in economy:
Resolving social issues: Small venture also plays important role in resolving issues of people
such as employment, rights, health care facilities and basic requirements. Various voluntary
enterprises like Oxfam, Age UK etc (Acs and et.al. 2011). was established by entrepreneurs at
small level and then moved towards growth. These ventures are also responsible towards
creating health working environment in country.
Innovation: It is analysed key for small venture to sustain their business in competitive global
market. They continuously adopt changes to attain recognition of target customers and getting
high market share in comparison with competitors. They are also responsible for fulfilment of
continuous changing requirement of people by developing new and unique products.
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Challenges: Attainment of financial capitals is reflected to be maintask for various small
businesses. Due to this, maximumnumbers of these corporations based on alternative leaders and
credit firms to achievecapital.
Small size firms are self depended they do not have to be depended on other exports.
Thus, if government makes changes in trading laws then also these firms can perform same.
Small size organizations are helpful in development of local communities because they help
them in raising their standard of leaving and leaving a healthy life.
Part 2
P5 Explanation about the qualities that makes a successful entrepreneur
Thomas Eddison was the genuine trailblazer and business pioneer. Business people need
abilities and characteristics with the goal that individual can begin a business and can run it
viably. Numerous business people have demonstrated that element can be begun with great
aptitudes and learning of individual. Richard Branson is its considerable case (Akhtar, Lodhi and
Khan, 2015) Beginning Virgin firm was at first test for the individual however aptitudes of
individual have bolstered the individual in setting up the firm effectively. Stamp Zuckerberg is
another case of fruitful business visionaries who have created Facebook application. It was
inventive plan to make association with mass group of onlookers. Abilities and characteristics of
Thomas Eddison are as following:
Planner: He was the great organizer and he could design exercises appropriately (Allio 2006).
At the season of beginning once again business it is basic to take a gander at the market
circumstance and assets and plan exercises in powerful way with the goal that new firm can be
built up adequately. Agent is in charge of overseeing exercises and executing design
appropriately with the goal that general target of the firm can be expert.
Motivation skill and positive behaviour Entrepreneur needs inspiration abilities and individual
must act positive in every circumstance. These back the individual in discovering openings hotel
each condition. Thomas Eddison is the colossal case of inspiration. He generally carries on
positive and attempt to transform dangers into circumstances.
Open minded: Another normal for business person is that individual is liberal individual. They
should be prepared to acknowledge difficulties and change over hazard into circumstances.
Individual guarantees that workers get most extreme advantage and it offers items to shoppers
that can fulfil their necessities. Along these lines, business visionary thinks for the two
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