Report: Entrepreneurship Ventures and Small Business Management

This report delves into the multifaceted world of entrepreneurship and small business management. It begins by defining entrepreneurship and its role in transforming business problems into solvable concepts. The report explores various types of entrepreneurial ventures, including small businesses, large companies, and scalable startups, and relates them to different typologies of entrepreneurship, such as survival enterprises, aggressive growth firms, and social enterprises. It examines the similarities and differences between these ventures, analyzing aspects like annual growth, organizational structure, and exit strategies. The report also presents data and statistics illustrating the impact of micro and macro businesses on the UK economy, highlighting the importance of startups and small businesses in fostering social and economic growth. Furthermore, it identifies the characteristics, skills, and traits of successful entrepreneurs, differentiating them from managers, and analyzes the entrepreneurial personality, mindset, and motivation. Finally, the report assesses how background and experience can impact entrepreneurship, both positively and negatively, concluding with a comprehensive overview of the key findings.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship.....................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................4
TASK 2............................................................................................................................................5
P3 Interpret and access relevant data & statistics to illustrate impact of micro and macro
business on economy..............................................................................................................5
P4 Importance of small business and business starts-ups to growth of social economy........9
TASK 3..........................................................................................................................................11
P5 Characteristics, skills and traits of successful entrepreneurs to differentiate them from
managers...............................................................................................................................11
P6 Aspects of entrepreneurial personality reflecting entrepreneurial mindset and motivation13
TASK 4..........................................................................................................................................14
P7 Impact of background and experience in fostering & hindering entrepreneurship.........14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship is defined as setting up and managing a business so that high
profitability and living standard can be earned. It assists in transforming business related
problems into simple concepts that can be solved in an easy manner. An entrepreneur is an
individual which set up and manages a business so that high revenues and profit margins can be
achieved. It will benefits the business owner in sustaining a standardised life (Akehurst, Simarro
and Mas‐Tur, 2012). This report is based on Entrepreneurship and management of small scale
businesses. This assignment will cover various kinds of entrepreneurial ventures and their
relation with entrepreneurship typologies. Also, differences and similarities between different
ventures is discussed. Data and statistics to illustrate the impact of small & micro businesses on
UK economy is discussed. Importance of start-ups and small businesses in social economy along
with characteristics, skills and trait of successful entrepreneur is mentioned. At last, Aspects of
entrepreneurial personality and impact of experience & background in fostering and hindering
entrepreneurship is carried out.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with typology of
entrepreneurship
Entrepreneurs are those persons which exercises different initiatives of business venture
so that benefits and opportunities can be attained in an advantageous manner. Entrepreneur aims
to supply their services & products to customers so that high revenue and profitability can be
attained. This will benefits them in living their life without facing any financial issues.
Entrepreneurship: It is referred to the procedure of launching, running and designing a
new business that is usually a small business. It is defined as a willingness and capacity to
manage, organise and develop a new business venture along with taking risks so that high
profitability can be attained.
Entrepreneurial venture: It is referred to an organisation that places opportunities and
innovation as its basics so that high social or economic value can be produced. Usually these
ventures are of two kind i.e. big businesses and small & medium businesses. Due to their unique
idea, these organisations are capable to achieve high returns and profit for their work.
1

Enterprise: It is defined as a company or business which is owned and managed to earn
high profitability. It is concerned with entrepreneurial ventures and there are different forms of
legal enterprises like partnership, sole proprietorship, professional company, corporation etc.
Different ventures carried out by entrepreneurs have their own purposes and these
ventures are segmented on the basis of their purpose, size, service and scope. In this regard,
entrepreneurial activity is an important aspect which is mentioned below:
Entrepreneurial activity
It is a procedure in which business organisations perform economic activities so that high
value can be generated for their products & services. These activities are concerned with
identification of new concepts and ideas that will benefits in increasing the development and
growth of ventures. These ideas are transformed into reality so that needs of customers can be
satisfied in a proper manner and organisation can achieve desired outcomes & objectives.
Different kind of ventures
Small business: These business ventures posses less amount of workforce, operations,
size and capital so that high amount of revenue and profitability can be attained in return of
services or products provided to customers. Scope and size of these business organisations are
narrow as they operates and work at small scale (Bakeman and Hanson, 2012). Their services or
products are provided to niche market and usually these businesses works under sole
proprietorship and partnership. These companies have less than 50 workers and their net worth is
around 2 million pounds. Some organisations operating at small scale are Clarasys and orion
electrotech limited and travelodge. For example, businesses such as Clarasys are run and
managed with the aim of acquiring high profit and comfortable livelihood. By this, owner of
company will be able to lead a healthy and happy life.
Large company: In this kind of business venture, organisations operate at big level and
provide wide range of products or services to their customers. These business ventures face no
limits in their business in terms of scope, size, business operations and activities. These business
firms offer services & products to their consumers at large scale. For example, to run and
manage business, these business organisations like M&S are required high amount of funds and
investments. As these organisations adapt changes and operates from several years, they sustain
a strong presence in marketplace. Some other examples are ALDI, TESCO, NHS etc.
2

Scalable starts-up entrepreneurship: In these business ventures, entrepreneurs owns and
manage business by thinking that their ideas and concepts can change the world. These business
get funding from venture capitalists and they prefer to hire skilled & capable employees. These
starts-ups make only small proportion of business because of outsize returns and risk capital.
Typologies of entrepreneurship
Above mentioned entrepreneurial ventures include different kind of typologies that are
related with business development and effectiveness. In this regard, some business typologies are
mentioned below:
Survival Enterprise: These kind of business organisations are formed to improve the
living standard of ourself and local people where company is managing and operating. These
organisations offer job opportunities to local residents as well as provide services or products to
the people so that firm can attain good revenues and profits. This typology falls under scalable
ventures which are developed with the aim of spending a comfortable life. For example, Lyle's
restaurant which is a local restaurant operating in UK.
Aggressive growth firms: These companies are created and run so that high profits and
revenues can be earned by business persons. Entrepreneurs operating these businesses try to
innovate new concepts and ideas so that overall productivity of company can be enhanced. These
new ideas are transformed into reality so that needs and expectations of people can be fulfilled in
a proper manner. These business typologies fall under the group of large and small business
ventures. For example, Rowlinson Knitwear,TESCO, M&S etc.
Social enterprises: These kind of ventures are created for the welfare and development of
individuals & society. These organisations formulates new concepts that can be implemented in
society for growth and development. These kind of businesses have huge scope as they provide
opportunities and benefits to common people so that they can sustain a healthy and prosperous
life. These kind of business organisations do not aim to generate high profits and contribute in
developing infrastructure of regions where they are working. For example, Save the children is
such kind of business organisation (Barringer, 2015).
Different typologies and entrepreneurial ventures are linked with one another as they
offer maximum efforts which will benefits in improving living standard of UK citizens. Also,
3

both concepts aims to provides possible contribution toward the growth and development of
economy where business operations are run and ,managed (Bennett, 2014).
Different kind of entrepreneurs
Serial entrepreneur: This is an individual that continuously introduce new concepts and
ideas so that a new business can be set up in a proper manner. In contrast with typical
entrepreneurs that only posses single idea and start business accordingly, these individuals
adopts a idea, set a business and give its responsibility to other person so that they can focus on a
new idea.
Intrepreneurs: These people are those entrepreneurs which works within a company.
These individual prefers to think and work like entrepreneurs. This is the reason they grab
various opportunities and implement them in business so that high growth can be attained by
organisation where they are working.
Manager-owner: It is a person which develop and manage a business firm so that
personal goals and aims can be achieved in a proper manner. In this situation, firm is primary
income source and requires high efforts and time of manager/owner of company. Most of the
activities of businesses are managed by a single person only.
P2 Similarities and differences between entrepreneurial ventures
These entrepreneurial ventures have some differences and similarities which are
mentioned below:
Differences between different entrepreneurial ventures
Basis Survival firms Managed growth Social Enterprises
Annual growth These business have
less focus on growth
and their main aim is to
survive within market
place.
These businesses are
initiated with the aim of
achieving good profits
and growth
These kind of business
ventures are started with
the aim of satisfying needs
and desire of society due
to which they don't have
profit motives.
Organisational
structure
Entrepreneurs
associated with these
These companies have
a proper organisational
These organisations works
under government and
4

businesses do not have
any organisational
structure.
structure due to which
work and activities are
performed in an
organised manner.
follows structure
formulated by government
officials.
Source of
Finance
Business entrepreneurs
of these kinds allocate
and manage their
financial resources by
their own
These organisation
manage their funds by
taking loan from banks,
crowd funds and other
financial institutions
These business
entrepreneurs gets money
and funds from
government. Fund raising,
charity etc.
Exit Strategy These businesses are
carried out for survival.
Hence, business
owners have no exit
plans.
This type of
organisations have to
consider different
regulations and rules
while exiting from
market.
They have well
formulated exit plans due
to which these businesses
can easily exit from
market as per their
situation.
Time Horizon Survival firm have no
specific time horizon,.
These businesses
operates as per
customers and market
demand.
These firms have a
proper time schedule
such as morning and
nigh shifts so that a
distinction between
professional and
personal life can be
maintained.
These businesses have no
limits to working hours.
They perform their
activities during day time,
in evening or at night.
Beside this, there are some similarities in these above mentioned entrepreneurs. These
similarities are discussed below:
Creative ideas: Different entrepreneurial ventures are introduced in market because they
posses unique concepts and ideas. Due to these unique and creative concepts, they are able to
satisfy the needs and demands of customers better than their rival companies which assist them
in getting an higher competitive edge over them in the market.
5

Creating a brand name: Major motive behind these businesses is to satisfy the needs of
customers in a proper manner. Target and goals of these entrepreneurs is to bring new services
or products into market so that company can sustain a good brand image. For example, goal of
organisations like TESCO and NHS is to have a good brand image so that more number of
customers can acknowledge their services or products.
Sustain against large business: Small and big ventures which are described above has
vision to sustaining a strong place in market so that advantage over large scale companies can be
achieved. Due to this advantage, they will be able to achieve organisational goals in an
appropriate manner which also assist the firm in achieving high growth and market share in the
market place for a long period of time.
Drive forces: Businesses which are mentioned above have common objectives and aims
and they wishes to develop at smaller time period. The main driving forces which drive these
ventures are energy, impetus or power. Also the driving forces includes the updated technology,
skilled workers which provides their contribution for the development of new ideas so that
companies can maintain their market share and sustainability for the long run.
TASK 2
P3 Interpret and access relevant data & statistics to illustrate impact of micro and macro business
on economy
Micro, medium and small businesses are three business sectors which help government in
UK in enhancing living condition of people overall condition of UK. These companies are run,
owned and manage by their owners so that comfortable livelihood and better living conditions
can be enjoyed (Bhachu, 2017). These organisation offer job opportunities to million of people
and helps in developing infrastructure of UK by paying taxes.
Micro business: These companies are small in size and operates at small scale. These
firms have less staff usually less than 12 employees. Main target of these business is to achieve
high profitability by offering good quality services or products to their clients. As people became
self-employed, these businesses have positive influence on UK and its citizens. They have
revenue of less than 2 million pounds
Small business: These business organisations are bigger than micro business
organisations. Employees working in these organisations are less than 60 in number. Main target
6

of these organisations is enhanced sales and growth. They have revenue less than 5 million
pounds.
Large business: These kind of organisations operates at high level having and employees
more than 250 people and earn revenues high than £22m. These companies heavily influences
economic development as job opportunities are given to million of people because of business
operations at global and national level (Bridge and O'Neill, 2012).
(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Interpretation of bar graph and Impact of SME on UK economy is mentioned below:
Local impact: These businesses are able to impact local economy in a direct manner as
they offer services or products to local people so that their needs and preferences can be attained
desirably. Small and micro businesses are run after analysing the desires and needs of local
people. This analysis help companies in identifying purchasing power of local residents and offer
them job opportunities. This benefits local people in satisfying their needs and earning money so
that high living standard can be enjoyed by them. As per above illustrated picture, small business
contribute in 48% employment generation and around 99% in stabilising business. Employee
7
Illustration 1: Role of Start-ups and Small Businesses

turnover rate in this sector is 33% (The Role of Start-ups and Small Businesses in Today’s
Economy).
Regional impact: These businesses also impact regional economy as employment
opportunities are given to people which resolves the issue of poverty and unemployment at
regional level. It has a positive impact on economy as high employment rate will help
organisations to have workforce skills in abundance. Due to SME's regional income also
improves that can be utilised to perform development works (Carsrud and Brännback, 2011) .
National impact: SME also influence economy at national level. This is because their
business operations are performed without using high investment. These companies also
emphasize on innovative ideas and concepts due to which their overall productivity is high.
SME's employ more than 16 million people which shows that it has positive impact on UK
economy (The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Small and Micro businesses Contribution in growth of UK
Particular Number of Employees Total Assets Annual Sales
Micro Enterprise <12 ≤ £2.5 m ≤ £2 m
Small Enterprises <60 ≤ £12m ≤ £09 m
Medium Enterprises <280 ≤ £55 m ≤ £47 m
( Source: UK Small Business Statistics, 2017)
Statistical data defining affect of SME on UK:
 At present, there are more than 6 million small organisations that are working in UK.
This denotes that around 70% of people are dependent on these businesses as they
provide wide employment opportunities.
 Micro sized business consists of 95% of share in market that is near about 5.5 million.
This venture generates around 32% of opportunities in employing UK citizens which
improve their living standard (Dees, 2017).
 Big organization contributes 0.13% in UK that shows approx 40% of employment
opportunities are given by these firm. Hence, large organizations offer help to
government in UK by incrementing job opportunities for people so that high capital can
be earned (UK small business statistics).
8

According to the above mentioned graph, it is interpreted that small organisations are
giving more assistance to UK government as they have in reducing poverty and unemployment
rates in UK. Various types of business ventures employees people in UK as per their capabilities
and skills due to which employment rate in UK is high. Output per person for small businesses is
40 where as their management score is around 0.52. in case of large businesses, output per
person is near about 62 and their management score is around 0.80 which is quite high.
9

Illustration 2: SME profit, 2019
Source: (SME Profit, 2019)
From above shown graph, it can be said that in last quarter of 2016 i.e. Q4, there were
around 18000 SMEs that has make around 8000 pounds profit. Medium scale businesses
employees around 50 to 250 workers and they earns a profitability of 200,000 pounds.
P4 Importance of small business and business starts-ups to growth of social economy
Social economy is formed by wide varieties of organizations like mutual, foundations,
associations, cooperatives, paritarian institutions and social enterprise. All of these companies
have common features and value like democratic governance, open and voluntary membership,
social objective over capital etc. Small businesses are considered as the backbone of a nation as
they provide revenues, job opportunities and contribution in infrastructural development. In
order to sustain a healthy living standard, every individual require a good source of income.
These small and micro businesses, provide numerous job opportunities to these citizens in UK.
These business also impact social economy of country. In this regard, there importance is
mentioned below:
10