Entrepreneurship and Small Business Management Report Analysis - UK

This report provides an in-depth analysis of entrepreneurship and small business management, focusing on the UK context. It begins by defining entrepreneurship and exploring different types of entrepreneurial ventures, including small-business, scalable, and social entrepreneurship, along with their interrelations. The report then delves into the similarities and differences between various entrepreneurial ventures. It assesses and interprets the impact of micro and small businesses on the UK economy, examining their nature and contributions. The report also highlights the characteristics, traits, and skills of successful entrepreneurs, as well as the factors that can either foster or hinder entrepreneurship. Overall, the report offers valuable insights into the entrepreneurial landscape and the significance of small businesses in driving economic growth and social development.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and its interrelation typology of
entrepreneurship .........................................................................................................................1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
TASK 2............................................................................................................................................5
P3 Assessing and interpreting the impact of micro and small businesses in economy...............5
P4 Contribution of small businesses and start-ups in growth of social economy.......................7
TASK 3............................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs ................................................9
P6 Aspects of entrepreneurial personality in reflecting entrepreneurial motivation and mind-
set..............................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Factors that foster or hinder entrepreneurship.....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is a capacity and ability to start a business unit with the hope of
achieving goals as well as profits. Entrepreneur is a person those take high risk in order to run
enterprise in an effective manner. They are creative in nature so that find out new working area
to solve social issues effectively. Through this person has able to full fill their dream to work for
their own objective as well as aim it provide high satisfaction in long period of time. In this
report select softwire firm to analyse the impact of entrepreneurship and small business
(Blackburn, Hart and Wainwright, 2013). It is established in the year of 2000 and now its have
around 130 workers have worked in their work place. Company has produce outstanding
software and provide specialists consultancy services to their clients in an effective ways. In this
assignment covers various type of entrepreneurship venture and similarities as well as difference
between entrepreneurial venture. Its also covers contribution of small business into society and
characteristic of entrepreneurs or many more.
TASK 1
P1 Different types of entrepreneurial ventures and its interrelation typology of entrepreneurship
Entrepreneur: Entrepreneurs is a person which have creative as well as high risk taker in
their nature. They are work for achieving their goals and aim effectively, for this people start
new enterprise to receive profits.
Entrepreneurial venture: It is a combination of risk factor, success, failure, ambiguity,
learning, embracing and many more. There are very big difference between small business unit
and entrepreneurial venture. The main difference in both is entrepreneur has creative as well as
high risk taker and can not run business only for profits, it operate for self satisfaction or for their
aim. But small organisation has work for earn profits with low risk in order to achieve goals in
an effective manner in limited period of time (Bridge and O'Neill, 2012). Here various different
kind of entrepreneur venture has explain as follows: Small-business Entrepreneurship: In United Kingdom several small business
entrepreneurial venture has run and contribute higher amount into nation economy
effectively. Approx 6 million has operated enterprise in this sector. For example, cafe, car
rent, travel agents, electricians, grocery store, carpenters etc. they are work for only
profits with low risk that is why earning should be also very less.
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 Scalable Entrepreneurship: In this, enterprise venture has invest their money into new
and creative ideas. They are formulated their vision and mission to implemented change
into work place which help to convert idea into reality in long period of time. In order to
carry out whole work into effective ways they are gather found by various investment
sources (Carsrud and Brännback, 2011). Social Entrepreneurship: They are realise and find out social issues in make innovative
ideas to remove it appropriately to increase comfort level of entire society. Accordingly
they are make product which have economic in price as well as easy to used. For
example, Unber owner Travis Kalanick has find out problem in hiring cab so that to
reduce complexity to rent a car into US. Through this, they are able to remove
community issues and earn lot of profits as well as sustainability in long period time.
 Large Scale Entrepreneurship: In this unit has established for gain higher profitability in
long period so that they are develop innovative and highly technical product to compete
competition effectively as well as spread market share to gain high profits with
sustainability.
Entire into typologies which has interrelated with each others, they have set their vision,
mission, goals, objective, nature and many more in order to perform work to shaping enterprises
into significant manner. So that there are several kind of typologies which has interlinked with
venture has detail below: Lifestyle Venture: Such kind of business has run for improve lifestyle people in the
nation through this they are build strong positive brand image in customer mind and earn
profits. Survival venture: Entrepreneurs has start business unit for their own survival in their life
as well as family so they they are run enterprise which has low risk factor, investment
and small in size (Chittithaworn and et. al., 2011). For example, internet cafe.
 Managed development venture: Entrepreneur those wants more fund to operate business
unit with innovative ideas. They has develop strategies in order to get finance form
market. So that their benefits should be definite in nature thus help to provide certain rate
of return of entire investment.
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Hence, it claimed that there are several kind of entrepreneurs has exist into country are
detail below: Serial Entrepreneur: This kind of person has start business with new ideas and
established which has provide profits. After that they have handover this enterprise to
other and work on other new innovative ideas in order to implemented their aim into
reality (Chrisman and et. al., 2012). From each one business unit they have learn
something new which enhance satisfaction as well as groom personality. Social Entrepreneur: They are find out opportunities in society and make enterprises
plan in order to improve comfortability of life. Through this, they are some time work for
non profits sector and build brand image at market place.
 Female entrepreneur: Female owner of the business unit has run company with high
dedication as compare to male person at market place. So that, firm those operated by
female has contribute around 51% of employment opportunities at United Kingdom.
P2 Similarities and Difference between entrepreneurial ventures
In current business environment lot of opportunities has exist for new start up's and
government of the nation has also make rule and regulation to promote entrepreneurship venture.
Through this, many kind of small enterprise has established and highly contribute into growth of
economy at United Kingdom. In UK, 65 % of total revenue has earn by small business unit and
it improve disposable capacity of citizen (Dennis Jr, 2011). There are several kind of
entrepreneurial venture as well as typologies, both has interrelated with each others and draw
valid outcome if person has effectively utilise this.
There are several similarities and difference in serial entrepreneur, intrapreneure and owner
manager has explain as follows:
Along with this, there are some similarities and differences between various entrepreneurial
ventures are as follows:
Ventures Similarities Difference
Small business v/s scale start-
ups
Both organization are operate
their business at small level
and also needs large amount of
finance for establishing their
Small business are started with
personal investment of owner.
Whereas, in scale start-up
business is funded with the
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business activities. The main
aim of these business ventures
is to generate profitability by
providing quality services to
its customers.
external investors for the
purpose of generating
maximum benefit.
Small business enterprise v/s
Large scale enterprise
The small and large scale
business produce goods and
services on the baits of fulfil
demands of consumers at
market place. Their main focus
is to gain competitive benefit.
Small type of business
organization start their
business with less finance and
capital. Small scale business
conduct its activities on small
scale. Under this risk is not
more involved. Whereas, large
business organization needs
huge amount of funds to start
their business activities at
marketplace. On the other
hand, large scale firms conduct
its business operations at
global level and in this chance
of risk is high involved.
Survival and Lifestyle The similarity among lifestyle
and survival entrepreneur is
that they both focus on earn
more profit in order to sustain
at market place.
Under survival venture,
entrepreneur run its business or
earn money for its survival. On
the other hand, the main focus
of lifestyle entrepreneur is to
make their life better and earn
money for live standard life.
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TASK 2
P3 Assessing and interpreting the impact of micro and small businesses in economy
Business Classification: In current business environment, there are various kind of
enterprise has work with different goals and objectives in limited period of time. Each one has
their own role and responsibility accordingly they are work in order to achieve market share and
long term sustainability. There are several type of business has detail below:
Micro Business: Business those has run at micro level has came under this section.
Mostly this kind of enterprise has run by single person and they have take all decision according
to their own thinking. In United Kingdom around 5.15 million individual has worked into this
sector in the year of 2015 with almost 95% increment. Contribution of micro sector into
economy of UK is 25 % of total revenue (Gorgievski, Ascalon and Stephan, 2011).
Small Business: In the entire world most of the business has run at small level because it
is easily to handle and make profits with taking higher risk. In United Kingdom approx 51% of
total enterprise has small in nature as well as they have highly contribute into economy as
compare to large organisation because number of little firm has very large. They are increase
employment opportunities, develop economy product, analyse nice segment demand, increase
participation of employees into company and many more.
Medium Size Business: In United Kingdom, number of medium organisation has work in
order to achieve market share and profits. The main objectives of this company has gain higher
market position and achieve economic of scale through which increase goodwill and brand value.
Medium institutions has want finance in order to run whole activities in an effective manner
(Goss, 2015). For this they are find out investor and receive fund to expend function area by this
enhance productivity and provide growth of economy of UK.
SMALL BUSINESSES NATURE
Here are categorized the nature of small business has explain as follows: Shoestring budget: Group with less number of person has work together in order to
achieve goals and objectives in given time frame. They have low finance to operate
business activities so that is why they deal with SME sector with limited resources. Intensive Labour: Small business unit has highly depend on worker because most of the
task has physical that is why they are develop strategies in order to satisfy all employees.
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Through this, firm has run their works appropriately to achieve goals in limited period of
time.
 Indigenous technology: In present world, various company has work on technology so
that they can not depend of employees as compare to machine or engineering science for
operate enterprise effectively.
After Brexit, government of UK has want to make rule and regulation for promotion
small businesses in economy. Through this, authorities has increase opportunities of employment
as well as eduction in which living standard of citizen has improve in long period of time.
Struggling by economical crisis in United Kingdom, authorise body has has appreciating
participation of people into start up's by offering them financial help at low interest rate (Jones
and Rowley, 2011). Thus, help to enhance growth of the country economy and long term
sustainability of small scale firms. Here, explain impact of small business into different level of
economy in detail: Local Impact: Small enterprise has strong influence on local economy, in this they are
provide employment opportunities to local people, contribute profits in the form of CSR
fund, increase living standard, improve per person income, education level, professional
skills and many more. National Impact: Many small business has operated in United Kingdom and they are
contribute approx 196 billion accordingly to CEBR report in the year of 2017. In London,
several small firm has run and their contribution in economy is 76 % of total country.
Around 534035 enterprise with 24 % of total employment people has forecasted for year
2020 in this sector. Through this activities, government of UK has receive more monitory
support resulted economy will be richer as compare to before.
 Regional Impact: Small business unit has worked in manufacturing sector through this
they are develop economic product and attract large number of customers toward
organisation in order to gain higher profitability (Karlan and Valdivia, 2011). this has
consider as clients chaise and make services according to full fill their demand in an
effective ways.
Henceforth, it affirm that various kind of business unit has contribute into different level
of nation. Government of UK has support small institutions and start ups in order to gain high
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growth opportunities. By this, increase employment level, living standard and many more thus
shape final outcome in economical form has positive.
P4 Contribution of small businesses and start-ups in growth of social economy
Brexit: When UK has withdrawal their participation form EU country then they are focus
on small business unit because through this they are promote growth of economy. It is a most
effective as well as strong agreement of the nation that have taken for development of county
because due to EU contract various other company has entire into UK market and make
superiority of brand in resulted some other home brands has reduce their image form industry
which create negative effect on nation growth and home firm long term sustainability at market
place. Brexit has reduce per person income so that it directly effect country economic system for
long period of time (Neck and Greene, 2011).
The process of breach the contract with EU has start form 29th march 2017 and at the end
of 23rd June 2016 by referendum government of UK and they invoked new article or law with
the name of 50 article of treaty of EU. It is very debatable topic in United Kingdom because it
create positive as well as negative impact of nation economy so that each one people has their
own opinion and review on same issues. So that, new in the year of 2018, so many benefits has
came by this agreement and several small business unit has run with profits as well as highly
contribute into UK economy.
Different between start-ups and small business:
Here are mentioned several major variation as well as contribution of such business unit
in the growth of UK economy detail below:
Small-business Start – ups
 It was initiated with the aim of surviving
of own as well as their family by using
innovative idea of working.
 They are provide various traditional
product and services to their clients at
market place.
 Small enterprise has less scalable in
examination of start-ups in United
 They are develop innovative as well
as creative ideas to complete task
effectively.
 Start ups has established with the aim
of reducing social issues in
appropriate manner.
 This follow the framework of scalable
enterprises in UK.
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Kingdom (Schaper and et. al., 2014).
 It has run by private owner with
centralise decision making power.
 Less number of employees has worked
into this organisation with the aim of
achieving common goals.
 Firm has develop innovative ideas by
seeking opportunities at market place
by delivery something different
practical application.
Small Business Impact on social economy of United Kingdom:
Social and economic evolution: Small business has economical power of UK after
Brexit, so that it contribute in society by provide employment opportunities, eduction level by
offering training into firm to student and many more. More then 5 million organisation has work
under this sector in order to gain profits.
Development on social security: By increase capabilities of small business, stable per
person income has increase and which provide social security to the nation. This assisted country
economy by offer proper income that deprive due to heath issue of citizen of the nation as well
as retirement program (Storey, 2016).
Effect on taxes and revenues: Around 51 % of total revenue of taxation has came form
small scale organisation in United Kingdom due to high economical employment opportunities
that has enhance per person income of citizen of nation. If it is aggregated as well as balanced
then government of the country has capable to accumulated data or information with taxation
amount effectively. There are direct relationship between revenue as well as taxation resulted
when revenue increase simultaneously taxation amount has also rise with same proportion in
given time frame.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Entrepreneur is a person who has run their business with innovative ideas in order to
achieve goals and objectives in limited period of time. They have good management skills that is
why firm has completing their task effectively. When carried out entrepreneur success in present
scenario, one have surpass in more easy ways for starting and managing enterprise and reach
large number of clients at market place (Unger and et. al., 2011). It has a fundamental of
organisation that have run by entrepreneur, it produce product at economy prices to attract large
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population toward firm goods and services in an effective ways. Management of the company
has develop strategies to achieve aim in significant manner in given time frame. Some important
characteristics of successful entrepreneur has risk taker, high involvement in work, effective time
management capabilities, creative thinker, opportunities seeker, goal oriented, focus and many
more. There are various personality traits of entrepreneurial people like highly motivated,
learning seeker, positive perception about problem because they find out possibilities from this,
positive attitude etc.
For example, Softwire has established with aim of provide better software to their clients
in order to solve the issue of management of various information as well as other topic. It has
established in the year of 2000 with 3 people but now in the year of 2018 they have approx 300
employees that has worked under this unit in order to achieve common goals in limited period of
time effectively (Welter, 2011). For another example, Apple has introduce by Steve jobs, they
have highly focus toward their objectives that is why when their company face losses they still
work on that by believing in ourselves.
Statement “Whether leaders are made or born” still very debatable in current market
because lot of favoured as well as unfavoured argument has present by various people in order to
provide their opinion. So that, is not clearly says that one point of given statement is correct.
Entrepreneurship is a combination of leadership as well as management traits which has formally
stimulated by several external elements and mindset of customers at market place. So that, in
entrepreneur some skills of leadership has came through leadership and some learn by effective
management practices with in an organisation (Wheelen and Hunger, 2011). Administration of
the company has organising training program in order to enhance employees skills and
capabilities which help to increase productivity and performance resulted achieve goals in
limited period of time effectively.
P6 Aspects of entrepreneurial personality in reflecting entrepreneurial motivation and mind-set
This is a entrepreneurial personality of the people has essential for employees at work
place to increase profitability and sustainability in long period of time. Management of firm has
conducting training program which help to run entire crucial practices of enterprise in order to
attract large number of customers toward their goods and services. Hence, they want proper
personality traits which help to contribute into nation economy in appropriate manner.
Government of United Kingdom has start start ups training program for student to enhance their
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skills and knowledge by this student are able to start small business by analyse opportunities at
market place. Entrepreneur has unique in their nature as compare to other people on the basis of
personality traits, skills, capabilities etc. that make them more efficient to achieve success in long
run. These traits has make people more unique which help out to take advantages of innovative
working capabilities to gain profits appropriately (Zott, Amit and Massa, 2011). Each one
individual has different personality traits so that there are some fix attributes which has available
into most of entrepreneurs in the world has describe by OCEAN big five model, detail
explanation of this method are as follows:
Openness: People who are ready to learn now things at market place in order to increase
their knowledge as well as capabilities. Openness of express their feeling thoughts in front of
many person has build confidence as well as help them to take right decision effectively in right
time.
Conscientiousness: This concept covers various feature like high control over work and
their behaviours, goal oriented, thoughtfulness, focused, particular and many more. These all
personality traits has make people successful and able to achieve objectives in limited period of
time effectively. There mind is make full of conscientiousness about their work.
Extraversion: They are share their opinion with others with any hesitation thus build
confidence which help to achieve goals and objectives in given time frame. Some traits of
extraversion has excitability, talkativeness, sociability, high emotional expressiveness,
assertiveness and many more.
Agreeableness: In this, individuals which consist several feature like trust, pro – social,
kindness, altruism, affection and many more. These all characteristic of human being has has
very effective in nature thus help to attract people with their thought and opinion (Carsrud and
Brännback, 2011). Through this, they are capable to gain high market share and profitability in
long period of time.
Neuroticism: This can be defined by sadness, instability, emotion, moodiness, anxiety,
mood swings, irritability and many more. These all help to make neuroticism factor into
entrepreneur which help to achieve goals in limited period of time effectively.
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