Entrepreneurship: Types, Impact of Small Business Post-Brexit Report

This report provides a comprehensive analysis of entrepreneurial ventures, categorizing them into small, micro, medium, and large enterprises, and examining their respective characteristics, risks, and goals. It explores the impact of these ventures on the UK economy, supported by statistical data, and assesses the role of small businesses in the growth of the social economy post-Brexit. The report delves into the determination of successful entrepreneurs' traits and skills, differentiating them from traditional business managers, and provides examples of how background and experience can both foster and hinder entrepreneurial endeavors. The document highlights the similarities and differences between various entrepreneurial models, emphasizing their contribution to job creation, innovation, and economic diversification. The report underscores the importance of SMEs as the backbone of the UK economy. The report is available on Desklib, a platform providing AI-based study tools and resources for students.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Types entrepreneurial ventures and their relationship to entrepreneurial typology...........1
2. Similarities and differences between different entrepreneurial ventures...........................3
3. Micro and small business impact on economy through statistical data..............................5
4. Importance of small businesses in growth of social economy after Brexit........................7
5. Determination of successful entrepreneurs’ characteristics, skills and traits and their
differences from other business managers.............................................................................8
6. Examples of how background and experience hinders entrepreneurship........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
An individual that has the potential and willingness to organise and manage a business
organisation through constant development is said to be entrepreneurship. They study and create
a new business and operate functions for the purpose of earning profits while bearing in mind all
risks associated with it (Parker, 2018). It has a key role in economy as people are running
business with skill and competence by bringing new ideas and innovations. This assignment will
cover different types of ventures that are entrepreneurial, analyse their similarities and
differences as well as assessment of small business' impact on the economy will be done. It will
determine key aspects of entrepreneurial mind-sets as well as assess two successful entrepreneurs
and their differences at various levels of economy. Finally, examination of different
environments that can foster or hinder entrepreneurship will be done by researching backgrounds
and experiences.
MAIN BODY
1. Types entrepreneurial ventures and their relationship to entrepreneurial typology
There are various types of entrepreneurial ventures that can be developed by
entrepreneurs, who are ready to face risks and earn profits. These include:
Small or Local Business Entrepreneurship:
Small business entrepreneurial venture is for individuals those who want to run their own
business by recruiting family members or friends to work with them. This helps them to earn
profits that for covering their expenses. Funding is generally done by personal savings or loans
from families or small business banks (Schwens and et.al., 2018). Examples of this this
entrepreneurship includes grocery stores, electricians, consultants or agents. They are set up only
at local areas in respective towns or cities. These organisations do not have managers that create
different strategies and generally aim at short term goals for achievement of their targets. For
example, Black Penny is a small restaurant situated in UK.
Micro Entrepreneurship:
Micro entrepreneurship consists of independent persons that work with full autonomy.
They prefer managing their business by themselves or with few workers. There is no intention of
hiring employees and operations can commence quickly. They do not need any business plans or
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skills and measurement of their growth through tools and techniques is not required. For
example, Le Salon in UK is a micro entrepreneurial venture.
Medium Entrepreneurship:
Medium entrepreneurial ventures are developed by individuals that aim at earning
mediums profits for themselves. They are usually funded through personal savings or bank loans
and operate at state or national level. These organisations have low risk present and goals are
generally short term. There are managers in this entrepreneurship that create and handle various
business activities of organisation. Employees are hired from the local towns in which business
operates. For example, Qbic is a medium entrepreneurial venture in UK.
Typology of entrepreneurship
Social Entrepreneurship:
Social entrepreneurial venture is developed by people that have innovations and ideas for
creating solutions for society's needs and problems. This organisation develops products and
services so that they can make the world a better place for citizens to live in. These include non-
profit, for profit companies and hybrid organisations. They collect funds through investments,
charities or donations from public. Entrepreneurs generally start up in a particular city and
expand with time. They have goals that do not benefit themselves but rather the people who are
underprivileged.
Scalable start-up Entrepreneurship:
Scalable start up entrepreneurial venture are organisations that are created and developed
by entrepreneurs those who have a vision for changing the world. Funds are received through
financial investors or venture capitalists those are interested in their ideas (Acs and et.al., 2018).
Employees are generally bright and highly competent. Risk is very high in this entrepreneurship
but can prove to be very profitable if successfully operated and can expand diversely for future
growth and development.
Large Entrepreneurship:
Large entrepreneurial ventures are developed by entrepreneurs that aim at growing
through sustainable strategies and innovation by creating products and services that fulfil needs
of customers as well as attract new ones. Funding is done through investments, loans from banks
or government grants (Laukkanen and Tornikoski, 2018). These are big companies that operate
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at national and international levels. Their goal is to generate high profits that can be distributed
to their shareholders or partners. This entrepreneurship has high risks and profitability as well.
Hence, there are entrepreneurial ventures present in private as well as public sectors.
Medium and small companies are in the public sector due to their presence in various areas and
social organisations as well. Micro organisations are private as a single entrepreneur operates it
to support their livelihood. The entrepreneur decides whether they want to stay in private or
public sector.
2. Similarities and differences between different entrepreneurial ventures
All the ventures are run with a common objective of earning profits at every level of their
commercial activities. But in spite of this they also possess lot of differences among their
commercial practices. The differences of such entrepreneurial business are as follows:
Basis Small
Entrepreneurshi
p
Micro
Entrepreneurship
Medium
Entrepreneurship
Large
Entrepreneurshi
p
Size These are set up
locally, in a
different towns or
cities (Cooper and
Folta, 2017). It
runs business
operations at a
small scale.
These are very
small organisations
that work to
provide services for
citizens in a town.
These are medium
in size and
generally present
nationally. They are
many branches
across the state.
Large
entrepreneurial
ventures are big
in size and run
operations
globally (Storey,
2016). They keep
expanding in
different
countries.
Risk The risk in this
entrepreneurship
is low as
operations are
limited.
There is very little
risk in these
organisation as
there is less
business operations
Medium
entrepreneurship
has moderate to
high risk as it runs
on a national scale.
Large
entrepreneurship
has very high
amounts of risk
because business
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. operations are
done
internationally.
Goals They have
medium to long
term goals to earn
enough profits to
cover their
expenses and
savings.
They do not have
fixed goals and do
not aim for a
particular target.
They have medium
to long term goals
for earning good
amounts of profits.
They have long
term goals for
earning high
revenues and
profits.
Investment Investments are
generally done
through savings,
loans from family
or small banks.
Investments are
done through
personal savings,
government
subsidies or loans
from institutes .
Investors fund
capital to this
venture or loans and
credit are taken
(Bae and et.al.,
2014).
Government
grants, loans and
bootstrapping is
done to invest in
large
organisations.
Employees These
organisations
have a medium
number of
employees as
there are a few
departments that
need
management.
There are little to
no employees in
this entrepreneurial
venture as
entrepreneurs
prefer to work
independently
(Fayolle and
Gailly, 2015).
There are medium
to high number of
employees as there
are many
departments present
for executing
business activities.
Number of
employees are
very high in this
entrepreneurship
as international
operations
require large
amount of
workers.
The similarities in these entrepreneurial ventures are:
 Small and micro entrepreneurship run on a local level, generally in a particular city or
town. They have less amount of employees.
 Micro, small and medium entrepreneurship all aim to sell products and services in return
for revenue.
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 They all have to make investments in order to commence business operations through
personal savings or loans.
 Medium and small entrepreneurship have long term goals (Naudé, 2014). They aim to
generate good profits through high revenues.
 Small and medium entrepreneurship have moderate to high risks.
3. Micro and small business impact on economy through statistical data
UK's economy is growing at a quick pace and has many small and micro businesses
present. SMEs are considered as the backbone of their economy and there are 5.7 million
enterprises in the country. They are mostly private sector firms and employ about 60% citizens
of UK and created more than 2 million jobs opportunities till 2010. Small entrepreneurship is
located in urban areas and are generally owned by families. Brexit was a major hindrance for
these enterprises as they limited international trading with some companies (Jaskiewicz, Combs
and Rau, 2015). They are the economic powerhouse that have the highest growth rate of 20%.
Employees are less than 10 persons and they have regular tax breaks so that they are able to
retain some profits. They contribute to 33% of employment opportunities.
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Illustration 1: SMEs Employees
Source: (Brexit’s impact on small businesses: the experts may be spot on after all, 2018)

Small and micro entrepreneurial ventures in UK use innovations and are export
orientated. 55% of these however, do not survive for more than 5 years and 61% face struggles
in growing. But these organisations have significantly helped the county to generate a total of
47% revenue which had led to growth in economy and GDP. Their gross annual value added will
reach to £1.15 Billion with the utilisation of proper innovative techniques. This will increase
productivity in overall economy (Cooper and Folta, 2017). UK's SMEs have only 1 in every 5
organisations that export products and services, but there is a chance for starting exports among
of 9-12% of them. Although they are inclined to growth, they directly lead to development of
country's economy.
It was observed in 2016 that 135 social entrepreneurship had a revenue of £450 million
with 46.5% organisations generating more than £1 million. England has a total of 15.4% small
and micro enterprises. They have provided jobs to over 10,000 people and this has helped their
social economy to drastically grow. This has led to creation of jobs, developing skills and
strengthening employability. Local economies have diversified as well which overall contributes
to the wider economy of UK (Welter and et.al., 2017). Moreover, there has been an increase of
2.2 million micro and small entrepreneurship since 2000. These consist of sole proprietorships
which are 60%, companies are 33% and partnerships are 7%. The sustained growth is increased
to a positive 64% since 2000 and there are 99.5% of SMEs present in every industry.
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Illustration 2: SMEs Percentage
Source: (Brexit’s impact on small businesses: the experts may be spot on after all, 2018)
4. Importance of small businesses in growth of social economy after Brexit
Brexit has huge impact on the economy of UK. It was the separation of Britain and
European Union. Many organisations were shut down due to this change which cause
fluctuations in the industry. Small businesses were affected as well but most of them have still
managed to continue business operations and are successfully growing. Social economy has seen
a high rate of growth due to these businesses and there has been a decrease in shutting down of
organisations. But there has been a decline in foreign trade. Initially, small businesses were
severely affected which impacted the UK economy (Mugger, 2017). They were concerned about
the obstacles that they will have to face after Brexit, but these entrepreneurships have proved to
be very beneficial for the economic growth and development as they come up with new ideas
that attracts customers.
Social economy can be impacted by small businesses and start-ups, with regard to their
growth and development. Even though they do not generate high revenues, they are present in
large numbers and their contribution is high towards growth of economies. Local economy is
benefited by them as they provide employment opportunities to the citizens of UK. Small
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enterprises optimally utilise resources, as well as protect their environment because they do not
use factories that emit pollution. They are considered to be customer- oriented and their primary
goal is to fulfil their desires. Recession period was a hard time for small entrepreneurial ventures
as their revenue generation was at an all-time low and could not sustain their livelihood as well
(The small business myth, 2017). But presently, they are the top contributors towards economic
growth and export of goods and services.
Small organisations help in community development as they provide a place where
employees can train themselves and learn about new things which leads to the overall growth of
economy. This increase the standard of living as well. Company provides large organisations
with raw materials that are required them in order to manufacture their products and services.
Big companies are dependent on them as they provide the resources required to start production.
Small organisations have helped UK in creating many new employment opportunities, which has
led to an increase in GDP as well (Welter and et.al., 2017). There are many small entrepreneurial
ventures which have evolved in the country, and sell diverse products and services which gives
the society more variety. They have given tough competition in the industry by providing good
quality raw materials at cheaper rates which has helped in development of economy.
5. Determination of successful entrepreneurs’ characteristics, skills and traits and their
differences from other business managers
Entrepreneurs are those individuals that have a vision and mind-set of running a business
and possess characteristics and skills that help them to be successful. These include Jeff Bezos,
founder of Amazon, the leading online shopping website. He has recently been named the
world's richest man. Peter Jones is the investor of BBC television shows. He has many successful
series that are telecast by BBC. He is also the commander of The Order of British Empire.
Jeff Bezos' characteristics and skills are as follows:
Power Driven:
Jeff Bezos is known for being power driven. He works through analysing various media
organisations as well as invest in different companies. He buys out his competitors in the
industry so that competitive risks can be reduced (Cooper and Folta, 2017). He is different from
other entrepreneurs as they are not power driven as he is. They simply work to achieve their
goals through traditional methods and do not try new things.
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Persuasive:
Jeff Bezos has the ability to be persuasive while discussing ideas with his employees. He
is loyal towards individuals and tries to make connections with them. Other entrepreneurs are not
able to completely persuade their workers when making decisions.
Analyser:
Jeff Bezos says that it is important to analyse every detail of work before taking any
decisions. He takes actions on the basis of facts rather than emotions (The 4 traits that make
Amazon’s Jeff Bezos such an unusual tech leader, 2017). On the other hand, entrepreneurs differ
from him as they are unable to keep their emotions aside while addressing situations.
Adventurous:
It is important for successful entrepreneurs to be adventurous so that they are able to
experience new things and gain knowledge about different places (Jaskiewicz, Combs and Rau,
2015). Jeff Bezos is different from other entrepreneurs as he makes sure that he regularly goes on
adventures and takes his employees with him as well.
Learner:
He is a great learner and can grasp things easily. Jeff Bezos is open to new ideas and
curious about learning different topics that allows him to increase his knowledge. While other
entrepreneurs do not give much importance to opinions that are not related to their field.
The characteristics and skills are of Peter Jones are as follows:
Intuitive:
Peter Jones trusts his intuition and instincts. He says that it can protect oneself from
taking wrong decisions and help in providing guidance towards correct areas (Peter's top 10
rules to build a successful business, 2018). He is different from other entrepreneurs, as they do
not listen to their instincts and take rash, unthoughtful decisions that leads to poor business
solutions.
Committed:
Peter Jones commits himself to decisions that he takes and works hard to achieve goals.
He sticks to one option and makes a commitment of fulfilling that target along with his
employees. It makes him different from other entrepreneurs as they only create plans and goals
for workers to follow. They do not show huge commitment towards their business.
Visionary:
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An entrepreneur with a vision can lead ways to success. Peter Jones is visionary as he
knows what goals he has to achieve and way to do so. He shares it with this staff so that they all
can get a picture of targets that have to be met (Jaskiewicz, Combs and Rau, 2015). This makes
him different as most entrepreneurs do not provide visions to their employees.
Caring:
Peter Jones has a trait of being caring and maintaining both personal and business
relationships with individuals. He treats everyone with dignity and respect as they are the reason
why his organisation is successful (Cooper and Folta, 2017). Other entrepreneurs do care for
their employees or partners, which makes them not succeed as much in their business.
Proper timing:
Peter Jones states that timings of business decisions should be proper because changes
always occur in the industry and everyone has to be prepared for any situation that may arise
(Fayolle and Gailly, 2015). He is different from other entrepreneurs as they do not anticipate
change and later suffer in their business.
Peter Jones and Jeff Bezos are committed and power driven when they work, which
makes them different from other entrepreneurs and makes them successful. While Bezos is
adventurous and a great learner, Peter Jones is caring towards his employees and customers. He
works in such a way that they are able to manage his timings. These characteristics aid them
towards achieving their goals. Their personality helps in motivating themselves as well as
employees to perform in such a way that they are able to succeed.
6. Examples of how background and experience hinders entrepreneurship
There are many situations that can cause hindrances in entrepreneurship. Many
entrepreneurs may have dealt with experiences in the past that might have made it difficult for
them to succeed in their business. The various factors that can affect entrepreneurship are:
Family Background:
The family background of an entrepreneur can make or break them and plays an
important role in building their business. If they have a supporting family that provide them with
resources and have faith in their work, they are most likely to foster their entrepreneurship
(Fayolle and Gailly, 2015). But if their family does not encourage and support them, it may
cause hindrances in their business.
Education:
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