Analysis of Entrepreneurship and Small Businesses in the UK Economy

This report provides a comprehensive overview of entrepreneurship and small businesses, focusing on the UK context. It begins by defining entrepreneurship and exploring different types of entrepreneurial ventures, including small-business enterprises, scalable start-ups, large ventures, and social entrepreneurship, along with their typologies. The report then examines the similarities and differences between various venture types, such as private and social enterprises, and the impact of micro and small businesses on the economy, including their local impact and contribution to employment and GDP. It delves into the skills, characteristics, and traits of entrepreneurs, exploring how these attributes affect their mindset and encourage entrepreneurial behavior. The report also discusses the influence of personal background and experience on successful entrepreneurs and highlights the differences between public and private sector entrepreneurship. The findings emphasize the importance of small businesses and start-ups for the growth of the social economy and their impact on the UK's economic landscape. The report also includes a comparison between intrapreneurs and entrepreneurs.

Entrepreneurship and
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Types of entrepreneurial ventures and typologies............................................................3
P2 Similarities and differences between entrepreneurial ventures.........................................5
M1 Understanding of entrepreneurship in both public and private sector.............................7
P3 Impact micro and small business have on the economy...................................................8
P4 Importance that small businesses and business start-ups on the growth of the social
economy...............................................................................................................................11
M2 Differences that small, medium and large businesses make to the economy, applying
relevant data and statistics....................................................................................................12
PART 2..........................................................................................................................................13
P5 Skills, characteristics and traits of entrepreneurs............................................................13
P6 Entrepreneurial attribute effect their mind-set and encouragement................................14
M3 Different lines of argument relating to entrepreneurial characteristics.........................15
P7 Influences of personal background and experience to specific successful entrepreneurs15
M4 Link between entrepreneurial characteristics and background and experience influences 16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Entrepreneurship refer to the planning, functioning and launching procedure that help in
operating the new business which is often small companies. The person who are often engaged in
operating such entrepreneurial activities are known as entrepreneur. United Kingdom is enlisted
one of the most entrepreneurial country in entire Europe. This assignment is prepared over the
Federation of Small Business in United Kingdom that represents entire medium and small sized
business (Alsos, Carter and Ljunggren eds., 2011). This report is seeking for the major types of
entrepreneurial venture as well as typologies along with their influence on the regional, local,
international and national economical influence on United Kingdom economy. This report will
also evaluate different entrepreneurship skills as well as role of background on the activities of
business.
PART 1
P1 Types of entrepreneurial ventures and typologies
An entrepreneur refer to the individual who operate and functions the limited business
resources and successful organisational activities through maintaining the probable danger.
These are the entities which start a venture considering the failure and organisation success
probability and administrate their whole enterprise by themselves (TYPES OF
ENTREPRENEURSHIP, 2017). As FSB carry out and track entire records of small businesses of
United Kingdom.
Difference between Intrapreneur and Entrepreneur:
Basis Intrapreneur Entrepreneur
Definition This can be termed to the
worker who is liable for
demonstrating numerous
innovation in service,
products, procedure etc.
Entrepreneur can be termed as
the individual who determine
numerous business concepts
and aspects which are often
new.
Risk Employed by organisation. Borne through oneself.
Works for Developing a leading market
position.
Alter and reconfigure existing
framework and culture of
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organisation.
Techniques Recuperative Spontaneous
Resources Organisation render more
resources.
Own resources and practices
are optimised.
Capital Financed through enterprise.
company.
Self emerged
Enterprise Existing One Newly Established
Dependency Dependent Independent
Here are mentioned some of the basic types of entrepreneurial venture i.e. discussed as below:
Small-business enterprise: These business organisation are formed and functioned by a
person with the purpose of earning their living and reaching their basic requirement. This consist
of salon business, barber, grocery stores etc. the major financial funds are often gained through
family, friend or bank loan etc.
Scalable entrepreneurial start-up: Such business are often introduced to gain the
increment and more revenues. Silicon Valley fund investor are usually form such business
enterprises. The major role of these activities are to cater change in the working system who hire
hard working employee for reaching their purpose.
Large Venture Enterprise: These elements often contain limited life-cycle that develop
more disruptive innovation for sustaining and reaching to the targetted outcome. Modification in
legislative, competitors and taste, company create more innovation in their commodities.
Social Entrepreneurship: Aiming to the betterment of social issues and miseries, these
entrepreneurs functions their operations of business. These are often profit-oriented, hybrid
whose purpose is to reduce the social issues and menace.
In the market, there are numerous typologies of enterprise that is interlinked with the
above mentioned enterprise in which some are discussed as below: Survival Venture: These enterprises are interlinked with the entrepreneur of small
business that are focused over the surviving and learning aims. These organisation are not
properly licensed, or located at certain place.
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 Lifestyle Venture: These entrepreneur believes in the evolution and growth as per the
market condition according which they modify their objectives, structure and strategies.
It include the large number of worker. Serial Venture: These entities discover or focus over new invention or revolutionary
method, idea, or operational activities in order to create a drastic change in the whole
market system (Awogbenle and Iwuamadi, 2010).
 Female Venture: For the purpose of empowering worker and supporting their morals and
values, these entrepreneurs communicate their creative invention. These represents
equality for women and justice in the society.
P2 Similarities and differences between entrepreneurial ventures
Difference between private and social enterprise
Comparison Basis Social Enterprise Private Enterprise
Definition Non-governmental enterprises
introduced through ordinary
citizens that are dependent as well.
Introduced for gaining more
benefits and merchandising their
services and products.
Operations Area Big Can be modest and large
Objectives Social welfare and improvement. Earning more benefits from the
services and products.
Here are mentioned some other practices and activities which have mentioned in the above
mentioned report which is discussed below:
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Venture Similarities Difference
Social & Small
Entrepreneurial
1. Both of these venture aim to
meet the targetted outcome in
better manner.
2. The main focus of such entities
are merchandising their
commodities within the
marketplace (Bruton, Ahlstrom
and Li, 2010).
1. Social entrepreneurs focus over
more social benefits and support
to society where on the other
hand, small entrepreneur focus
over the meeting the maximum
advantages.
2. Main motive of social
entrepreneurial venture is to
resolve the miserable issues from
society in order to create a better
place to live. Where small
business motives are often gain
more benefits to make their own
lives more convenient and better.
3. The major focus or objectives
of social entrepreneurial venture is
to serve the required people. On
the other side, small business
person work over their own
serving to live the life's luxuries.
Scalable & Large
Entrepreneur
1. Scalable as well as large
entrepreneurs focus over the
perception and structure to direct
their working style of trading in
market.
2. Both of the business ventures
aims over gaining maximum
benefits out of whole implemented
activities.
1.Scalable ventures consist of
limited resources and financial
asset where large companies
involve large amount of benefits
and unlimited loss.
2. Scalable entrepreneurial
venture aid in establishing their
idea and sustain in market where
large organisation seek for more
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funds, sponsors and investors etc.
Serial & Lifestyle
Venture
1. Both of the entrepreneurial
ventures aims over the carrying
different concept in business.
2. Both employ more hard working
and bright worker able to
implement their targetted plan
(Desai, 2013).
1. Lifestyle ventures do not
initiate for consolidate with small
business entities where serial
ventures look for the expansion of
business and sponsors for
evolving business.
2. Lifestyle entrepreneurial
Venture produce more human
comfort commodities on their
other side serial ventures believes
in more different concept or
business plan.
Male & Female
Entrepreneurial
1. Male and female entrepreneur
perform their best for reaching
their set outcome in ideal way.
2. It consist of equal skills and
knowledge level.
1. Male entrepreneur are less
sensitive in comparison to female
entrepreneur which impact their
decision making methods.
2. Female entrepreneur are more
dedicated and hard working in
comparison of male entrepreneur
while working or performing any
activities.
M1 Understanding of entrepreneurship in both public and private sector
As per the above mentioned report, it can be claimed that there are diverged range of
ventures and typologies in the entrepreneurial field. This is fundamental for an entrepreneur to
consider the major aspects of those ventures in order to develop and sustain in the competitive
business industry. These enterprises are more similar to each other on various basics where on
the other hand, it is distinct on various elements. Hence, both are different when it is implied to
private and public sector. Public sector entrepreneurship generate greater prosperity of economic
through transforming a economical status-quo environment into one which is conductive in
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regard of economic units involving in innovative practices in the uncertainty face. Private sector
can helps in investment which is critical to meet their basic essential of market. Hence, both of
these areas accept the term in distinct manner.
P3 Impact micro and small business have on the economy
Small Business: This includes the association, sole companies, partnership business etc.
who follows their purpose to meet their targetted result. These types of entities consist of 10-
2500 workers for operating their business.
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Micro Business: This sort of companies are formed on initial level which contain large
worker amount with time. They are able to meet fair benefit amount along with achieving the
determined outcome.
Medium-sized Business: In these companies, more than 300 worker worker who operate
the entire worker. It contain large amount of income and return of investment from operated
activities.
Nature & Traits of Sole, Partnership as well as Private Business
Private: these entities are often owned by private owner which are formed for the
individual's personal activities or living (Djankov and et. al., 2010). This contain approximate 50
worker or more which is being operated and functioned by that individual or owner.
Sole Business: These types of businesses or enterprises are owned by single owner who
is solely responsible for their liabilities and benefits along with the company's debts. He is liable
for the decision making and operation of companies. The major drawback of this types of
company is one person is unable to manage the huge responsibilities of company.
Corporation: These business companies are build under the legislative structure in which
two or more than two business partner or shareholder are included. These are often large in size
which pay large tax amount and help the nation in their economy through rendering a big part.
Hence, as per the report it can affirm that in past few year, more than 660000 start-ups
has been established and approximate £300m loan has been given by banks. Here are mentioned
some of the major impact of small business and start-ups on the United Kingdom's economy that
is mentioned as below:
 Local Impact: After the introduction of Brexit, UK has faced various issues due to
recession period. This includes financial crisis and unemployment in the country.
Government later provided subsidies plan to the individual who are performing or
planning to start a new business. This has helped the local economical status of United
Kingdom through rendering more than 65% of their part in employment of nation. Also
there are more than 92% economical part is rendered by small business through getting
taxes (Drucker, 2014). This also rendered the exchange of capital in the nation and helped
in increasing the GDP rate in local market. Such small business enterprises are rendering
more than £43 million Euros annual turnover in UK.
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 Regional Impact: Micro and Small business companies has major influence on the
market or economy of United Kingdom. Regional market and economical status has
greatly influenced after the initiation of small business enterprises in the country. This
has shaped the new trends and marketing style of business in United Kingdom. Along
with this, it has rendered support ideas and new framework of business to the regional
market. This has helped in performing the whole country together in the peak time when
they were e suffering from the issues of recession and crisis. More than 11, 000 people in
UK have started their new ventures in last few year as per the study.
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Illustration 1: Annual SME turnover in UK
Source 1: Annual SME turnover in UK, 2018

 International and National Business: Micro business and Start-ups has changed the
economical situation of United Kingdom drastically. This has helped the nation through
rendering job to their youth which is more than 25 million people (Fayolle, 2013). This
has increased their market position and standard of living of each individual at the
international level. This has enhanced the GDP rate to 0.2% presenting the report that UK
is performing way better after recession. Thus, small business and micro enterprises
shapes whole economy of a nation so as UK's.
P4 Importance that small businesses and business start-ups on the growth of the social economy
Small business enterprise has great impact of the market of United Kingdom as this has
rendered more opportunities of work and job to the nation. There are various different use and
impact of these entities in UK business world depending on different factors. Here are mentioned
some of them:
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Illustration 2: Growth of UK start-ups
Source 1: Growth of UK start-ups, 2018

 Economical Factor Impact: Through rendering more innovative ideas and activities in
the market, organisations like small business and micro enterprises of UK has changed
the economical structure of country. This has improved the level of United Kingdom's
economy up-to 80% through supporting various job opportunities. Decreasing unemployment: After the Brexit, nation has faced various unemployment
and drastic fall in the standard of living of country which has raised due to the small
business and start-ups. This has supported the nation through rendering more than 65% of
job of their entire employment activities. This has helped in uplifting overall standard of
living of the country improving the level of nation among international countries.
 Supporting government through income tax: Government has been facilitated huge
amount from micro and small business enterprises as the number of jobs and business has
increased in the market of United Kingdom.
These are the causes why this is essential to have start-ups and small business in a
country which not only support the country's economy but improve the society as well.
M2 Differences that small, medium and large businesses make to the economy, applying relevant
data and statistics
This can be explained after evaluating the major data over the issues and major changes
incur within the economical environment of United Kingdom after the engagement of more
small business enterprises that this types of business has increased the positioning of working
environment. SME, medium and start-ups are the focal elements which helps in shaping
organisational policy in the European Unions and UK business sector. These are most important
sector of economy of nation that represents more than 99% of their organisation employing
individual's increasing number.
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