Entrepreneurship and Small Business Management Report - [Course Name]

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various types of entrepreneurial ventures, including survival, lifestyle, managed growth, and aggressive growth ventures, analyzing their characteristics, similarities, and differences. The report then delves into the impact of micro and small businesses on the economy, presenting data and statistics on their contribution to job creation, productivity, and economic growth. Furthermore, it examines the importance of small businesses and start-ups in fostering social economic growth, including the effects of Brexit on the UK economy and the role of these businesses in driving innovation and competition. The report highlights the significance of small and medium enterprises (SMEs) in the UK, contributing to economic growth, job creation, and technological advancements. The report concludes by emphasizing the dynamic nature of entrepreneurial ventures and their impact on the economy.

Entrepreneurship and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types of entrepreneurial ventures............................................................................3
P2 Analysis of similarities and difference between entrepreneurial ventures.............................5
P3. Data and statistics for the impact of micro and small business on economy........................7
P4. Importance of small businesses and start-ups in the growth of social economy...................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
BIBLIOGRAPHY..........................................................................................................................12

INTRO DUCTION
Entrepreneurship can be defined an activity of setting
business by taking financial risk with a hope of making profit
out of it. It is a way to set up business by taking financial as
well as managerial risk. The study highlights the different types
of business such as micro, small and medium-sized business. It
also discusses the various characteristic, traits and skills of an
individual.
LO 1
P1 Different types of entrepreneurial ventures
An entrepreneur can be an individual that starts and
operate the business with proper planning and limited
resources. The entrepreneur usually introduces a new idea or
product in which it sees potential rather than business that is
already existing. These ventures are mostly targeted on getting
high returns with high uncertainties. They introduce their
capital by arranging funds and in a way risk their financial
security (Blackburn, 2016). The responsibility of arranging raw
materials, skilled employees as well as arranging funds. The
departments of marketing, sales and distribution are controlled
by the entrepreneur.
Enterprises are associated with entrepreneurial ventures
that are formed to earn profit and when they get successful it is
known as enterprising. The concept of entrepreneurship is very
easy to understand. It simply means an individual who bears all
the risk for the business and in return it takes all the profits
from the business as well. It beings new goods, services and
technology in the market.
To understand the concept better it is important to
understand the importance of entrepreneurship that is

innovation. An entrepreneur is the key source of bringing
innovation and variation in the economy. The innovation they
bring can be in the form of new idea, product, services or
technology. The other factor associated with entrepreneurship
is that it goes along with risk as it is managed by one person.
On the positive side it helps in exploring the opportunities and
give them competitive advantage.
The other factor is vision which drives the entrepreneur
to drive the business. It gives the outline to the business about
culture, risk etc. it helps in setting long and short term
objectives which helps the company in achieving goals. The
other factor that deals with entrepreneurship is organization in
which the entrepreneur enjoys all the decision-making and
manages and organizes the finance along with its employees
and resources.
The key ventures that an entrepreneur can engage in are of four
types which are :
Survival ventures – These entrepreneurs start a venture
to provide basic necessity to their families and themselves.
These type of business is may or may not be registered. It may
not have any premises, very fewer assets and only operates on
cash basis as cash is the main requirement of these type of
venture. This kind of business are often motivated by necessity
and operates in competitive, price based and undifferentiated
markets.
Lifestyle ventures – These ventures are relatively
provided stable income to the owner of the business. These are
based on workable models and work with management
approach. They usually have premises on a single location.
They have employees but do not seek for expansio9n and are
happy with the current income. It is difficult for these ventures
to achieve economies of scale.
Managed growth ventures – It has a workable business
model and seeks stable growth in future by launching new
products and services. They have staff, offices at new
locations, development of local brand. Ongoing reinvestment
leads to regional growth and development of business.
Aggressive growth venture – They are mostly
technology-based venture which involves strong innovation
and capabilities that leads tom growth and are funded by equity
capital. Their market focus is usually national or international,
and they often get involved in IPOs or acquisitions (Morselli,
2018).
Relation of ventures with typologies

Some ventures have a path as they start from lifestyle
and then goes to managed growth venture. Some ventures start
from survival and goes to lifestyle. However, these ventures
show different types of business entities rather than showing
development stages. Companies create identities which are
aligned with the characteristics of the category of venture in
which they fall. Based on identity theory, common identities
are emerged for an individual and this help in establishing
common points between the business and individual. These
dimensio9ns are experience of the individual, engaging in
social interactions etc. A female individual who creates a
venture may see themselves some entrepreneur. The identity
that emerges in an entrepreneurial building lifestyle venture
can differ from high growth venture. For example- traits
associated with entrepreneurial identity such as taking risk,
seeking for new opportunities are likely to be in more amount
in high growth ventures (Porfírio, 2016).
The venture outcomes also impact on entrepreneurial
identity's launching a new product, failure to generate cash
flows impact on entrepreneur's state of mind and can lead to
changes in the role. Moreover, as the identity emerges it affects
leaning and choices of behaviour.
P2 Analysis of similarities and difference between
entrepreneurial ventures
DIFFERENCE BETWEEN DIFFERENT
ENTREPRENEURIAL VENTURES
Annual rate of growth and time horizon
 Survival firm has nominal growth and day to day
working.
 The growth lifestyle ventures are less than 5 % and
need weekly and monthly operations.
 Growth of managed growth ventures is between 10
and 15 percent and time horizon in 1 to 2 years.
 The growth of aggressive entrepreneurial ventures is
around 20 percent and take 2 to 5 years
Focus of management
 Survival firm focuses on selling whatever it has to
offer to its customers.
 Lifestyle ventures focuses on managing working
model.
 Managed growth ventures focus on increasing growth
by making strategies.
 Aggressive entrepreneurial ventures focus on
scalability

Style of management
 Survival ventures have reactive
 Lifestyle ventures mostly tactical
 Managed growth ventures have strategic management
style
 Aggressive entrepreneurial ventures have strategic as
well as proactive style of management.
Investment on technology
 Survival ventures: None
 Lifestyle ventures: Limited
 Managed growth ventures: Moderate
 Aggressive entrepreneurial ventures: High
Approach to exit
 Survival ventures: Simply shut down
 Lifestyle ventures: Shut down sell and transfer the
business
 Managed growth ventures: Sell, merge and then
transfer Aggressive entrepreneurial ventures: Sell merge and
then go public through IPO.
Structure
 Survival ventures: No specific structure
 Lifestyle ventures: Basic simple tall structure
 Managed growth ventures: Functional as well as
centralized structure.
 Aggressive entrepreneurial ventures: Product and
market-based structure.
Economic motives
 Survival ventures: To sustain the family and self
 Lifestyle ventures: To create substitution of income
 Managed growth ventures: To create wealth and
corporate reputation
 Aggressive entrepreneurial ventures: To create
capital
Emphasis on reward
 Survival ventures: Weekly income
 Lifestyle ventures: Bonus and salary to employees
 Managed growth ventures: Salary as well as
incentives and equity
 Aggressive entrepreneurial ventures: Equity and
capital gain
SIMILARITIES BETWEEN DIFFERENT
ENTREPRENEURIAL VENTURES

The similarities between all these ventures is that the first
and foremost priority is to earn money. The purposes may be
different but the objective is similar. The other similarity is that
the owners are the sole responsible person to take decisions
regarding utilisation and arrangement of funds, resources,
employees etc. which creates burden for the entrepreneur
(Morselli, 2018). The other similar factor is risk as all these
ventures involves risk and only their frequency varies.
Moreover, the other similarity is that all these ventures have
entrepreneurs that are motivated, may be by different reasons
but are drives to achieve success through motivation.
P3. Data and statistics for the impact of micro and small
business on economy
Small, micro and medium business and their nature:
Micro enterprises are those enterprises where the
business unit has a minimal number of employees. The micro
enterprises usually require a small amount of capital. A
microenterprise requires about less than 10 people. Small
business is community based means the small business focuses
on satisfying the needs and demands of community. These
businesses usually target small business (Hillary, 2017).
Small enterprises are those where the company does not
have a high volume of sales. Small business are independently
owned business enterprises. These enterprises include
corporations, partnerships and owned sole proprietorships. The
small enterprises usually deal with small number of services
and products.
Medium enterprises which include about 250 persons in
a business unit. It acts as a bridge between big and small
enterprises.
Private company are this company which does not offer
it shares for sale to the public and it operates under less
restriction than the public company. Whereas sole

proprietorship is a type of business which is operated by a
single person and is responsible for its own debts. Partnerships
is business in which there are multiple owners of a business
unit (Pratono and Mahmood, 2015).
SME has created a remarkable growth in the economy
of the country. SME's contribute in the increase in job
opportunities, growth in productivity, increase in economic
growth and has also play a role in introducing new innovation
in the country. The small business create a job in the country.
Small businesses also contribute to the economy of the country.
It make about 99.3 % among all the private sector business and
about 99.9% from small and medium-sized business. About
15.7 million employment was there in SME's and about 60 %
employment in UK is generated by the private sector.
Start-ups in the small business also create a positive
impact on the growth of innovation in the country. The
combined turnover of small and medium-sized business is
about 2.0 trillion euro as recorded in 2018. In every sector
small business account for about 99.5 %.
4 areas of economy that create an impact on SME and data.
According to a research, the SME has contributed in the
increase in level of productivity in the UK, The UK economy
has faced a decline after 2008 in comparison to other G8
economies but now the sign of revival has been observed in the
country. The SME covers about the largest part of the UK
economy.
P4. Importance of small businesses and start-ups in the growth
of social economy
Brexit: The voting is done in order to decide that
whether UK should remain with the European Union or should
leave the Union. It is abbreviation for the word Britain and
Exit. The uncertainty which is caused by the Brexit is creating
a huge risk to the European union economy.
Since 2016 the economy of Britain has been
continuously underperforming. The Britain is losing about 2.5
percent of gross domestic product. The reason behind this is

weaker investment. According to governor of Bank of England,
Britain is losing about 1.5 percent of GDP in comparison to
expectation from the central bank. As a result of Brexit the
labour market is face a huge unemployment in the market. The
low labour market and low investment can create a huge
impact on the overall efficiency of economy in the country.
Contribution to growth of economy
The start-up and small business create a high influence
on different countries. Small business is important for the
world as it creates a job opportunities and play an important
role in the growth of economy. The small business creates a
competition in the market. For example small business offer
products at cheaper price as they do not have to indulge in
shipping activity thus gives the competition to the existing big
business. The small business has diversity anyone can start the
small business. Therefore, as large diversity is there in the
economy the more the economy is ready to fight with the tough
conditions.
The start-ups also create a huge job opportunities.
Entrepreneurs attract the investors in order to invest in their
own resources. Start-ups plays an important role in introducing
innovation and technologies in the country or world which
helps in improving the standard of living. Small business and
start-ups contribute in keeping the economy of a country
strong. It also contributes in the increase in GDP of a country.
The start-ups create a revenue domestically.
Improve in UK economic growth after Brexit. Small
business and start up will help in improving the economy in
UK because the start-ups are capable of adapting the change in
the economy. Star-ups and small business will create a job and
employment which will help in improving the economy of a
country. It will bring new innovations in the country. The
export of good and services by the small businesses and start-
ups will also help in improving the figures in BOP of the
country (Read, Sarasvathy, Dew, and Wiltbank, 2016).

CONCLUSION
The report helps in understanding the concept of
entrepreneur and entrepreneurialism. There are various types of
entrepreneurial ventures. The business can be of various types
such as small, micro and medium-sized business. The small
business as well as start-up is gaining the large share in the
market.

REFERENCES
Books and journal
Blackburn, R.A., 2016. Government, SMEs and entrepreneurship development: Policy, practice
and challenges. Routledge.
Sekliuckiene, J. and Kisielius, E., 2015. Development of social entrepreneurship initiatives: a
theoretical framework. Procedia-Social and Behavioral Sciences. 213. pp.1015-1019.
Morselli, D., 2018. How do Italian vocational teachers educate for a sense of initiative and
entrepreneurship? Development and initial application of the SIE
questionnaire. Education+ Training. 60(7/8). pp.800-818.
Porfírio, J.A., Carrilho, T. and Mónico, L.S., 2016. Entrepreneurship in different contexts in
cultural and creative industries. Journal of Business Research. 69(11). pp.5117-5123.

BIBLIOGRAPHY
https://smallbusiness.co.uk/smes-driving-employment-levels-2539643/
https://www.british-business-bank.co.uk/research/small-business-finance-markets-report-2019/