Entrepreneurship and Small Business Management: Southwark Analysis

This report provides an overview of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures, particularly within the London Borough of Southwark. It examines the similarities and differences between small, scalable, large, and social enterprises, highlighting their objectives, capital requirements, and operational scale. The report further analyzes the impact of small businesses on the economy, using UK data and statistics to demonstrate their significant contribution to employment, GDP, and overall economic growth. It emphasizes the role of SMEs in creating jobs, increasing productivity, and fostering economic balance. The report concludes that small businesses are vital for economic development by providing opportunities at the local level and promoting financial inclusion for weaker sections of society.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
A1) Types of entrepreneurial ventures ..................................................................................3
A2) Similarities and difference between different types of entrepreneurial ventures ...........4
B1) Impact of small businesses on economy with reference to relevant data and statistics. .6
B2) Importance of small businesses in growth of economy...................................................8
TASK 2 ...........................................................................................................................................9
Covered in PPT.......................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Entrepreneurship can be defined as the process of creating and developing a business
with the aim of making profit and also includes bearing and taking all possible risk. It is the
responsibility of entrepreneur to bear all the risk and overcome it to earn profit therefore to
reduce the chances of higher loss they prefers to start with a small or medium sized business
entrepreneur. Therefore in every economy role of small business is increasing. For this
assignment London Borough of Southwark situated in south London is taken to show the
various types of entrepreneurial ventures and also to examine their similarities and differences
( Davis and Bendickson, 2021). This report also includes the impact of small business on growth
of economy through relevant data and statistics and also discloses the importance of small
business in improving the growth rate of an economy (Mayr, 2021).
TASK 1
A1) Types of entrepreneurial ventures
In every economy different types of entrepreneurial venture are there providing options to
entrepreneur to select or choose the best suitable one according to their personality, abilities and
surrounding. It is mainly divides into two main sector i.e. private and public.
Private Sector – In this sector of economy, organisation and business are controlled and
run by private individual or group of individuals whose main aim is to earn profit.
Public sector - organisations or firms in this sector are owned and managed by
government authorities which include central, state and local government bodies. Main aim of
this sector is to provide public services like police, army, education, health and care, public
transport, etc. therefore main focus of organisation belongs to this sector is not earning profit
where as they aim at providing social service (Kuratko and Morris, 2018).
These two broad category of economic sector I.e., private and public sector which are
further divided into many types of entrepreneurial ventures some of them are discussed below:
Small business entrepreneurship – This type of entrepreneurship are managed and
controlled by single individual or engage very minimum number of members or employees.
They require very few resources and thus makes only optimum level of profit enough for living
and supporting their families.

Scalable Start-up Entrepreneurship – This type of entrepreneurship is mainly having a
vision to change the world and make it a better place to live. They aim at hiring the best
employees with maximum level of creativity and innovation (McDowell andet.al., 2018).
Large Company Entrepreneurship – This types of entrepreneurial ventures are the
organisations having maximum amount of resources and other assets to operate at large level.
They aim at providing maximum number of products and make use of new techniques to meet
and fulfil the needs of customer to earn huge amount of profits.
Social Entrepreneurship – The main focus of social entrepreneurship is at providing
products or services for social welfare. They do not work for earning profit but make efforts for
creating equality and balance is the society (Julien, 2018).
Typology of entrepreneurship
Typology basically represents the different group of people categorised on the basis of
certain similar characteristics, abilities and behaviour. Entrepreneurs are also divided into
various typology on the basis of different characteristic and traits, some of them are explained
below:
Male Entrepreneurship – Theses entrepreneurship are operated and managed by male
entrepreneurs who are characterised as more bold and risk taker. They enjoy dealing in large
firms and industries with more risk and thus earn more profit. The main interest of these types of
entrepreneurs includes information technology sector. Manufacturing or construction firms, etc
(Mmbaga , 2020).
Female Entrepreneurship – Female entrepreneurs are more conservative and likes to
avoid unnecessary risk and thus mainly deals in small business thus they are able to earn only
sufficient amount of profit. They are more socially responsible and develop good and healthy
relationship with all stakeholders.
A2) Similarities and difference between different types of entrepreneurial ventures
Every entrepreneurial ventures is having its characteristics, vision and aim. Some of these
are common for all and some are different. Following are the similarities between Small, scalable
, large and social enterprises(Naranjo-Valencia and et.al., 2018).
 The main motive of all the organisation of small, large, scalable and social ventures is to
effectively run their businesses for a long period of time through maintaining proper cost
effectiveness.

 To provide maximum level of customer satisfaction to increase their productivity through
attracting more customers.
 All organisation aim at creating and developing new ideas and innovation to provide best
quality product to their customers which also provide competitive advantages to them
( Guerrero and Urbano 2019).
The table given below is showing the difference between Small business entrepreneurship, Large
Company Entrepreneurship, Social Entrepreneurship and Scalable Start-up Entrepreneurship
Basis Small size Large size Social Scalable
Meaning They mainly
operates at
regional or local
level and mainly
deals in some
particular product
or services.
They mainly deals
in large number of
operations and
provide multiple
products and
operates at high
level or at global
level
(Panagiotakopoulo
s 2020).
Social enterprises
mainly operates to
provide social
services.
Scalable mainly
focuses on creating
new innovation or
product and
always operated at
a particular
location in groups.
Objective Main objective of
small enterprises
is to earn
adequate amount
of profit to meet
their basic
requirements and
livelihood.
Large size firms
always aim at
expanding their
business to earn
maximum amount
of profit through
increasing their
productivity and
sales.
Social is working
with the target of
providing social
welfare and focus
on weaker section
of society with
aim of creating
equality in the
society.
Scalable aim at
creating most
innovative and
superior product
with the aim of
earning high
profits.
Capital Only limited
amount of
For operating at
national or global
The capital and
other resources of
Scalable
organisation

resources and
capital is required
to run a small
business. It also
employ a limited
number of
employees
ranging from 0 to
50 in UK.
level large sum of
money and other
resources are
required. Further
large number of
employees and
assets are required
for future
expansion or
growth.
social enterprises
are meet through
charity and
donation of its
members as they
operates for
benefits of society
and not for
personal benefits.
employ creative
and innovative
resources to
produce advance
and more
improved products
, but still their
capital requirement
is limited as they
work in limited
location (Pages,
2019)
B1) Impact of small businesses on economy with reference to relevant data and statistics
Small business plays a very crucial and vital role in growth of an economy, they are
known as engine of economic growth and development as it provides ample job opportunities
and also ensure equality and proper balance and flow of money across different sector of
economy (Gast, 2018). At national level it helps in increasing gross domestic product through
increasing productivity and at local level it helps in providing job opportunity to local people.
Every country is having different criteria for categorising an enterprise as small business, in UK
as per companies act of 1985, SME should not employ more than 50 employees and turnover
should not exceed £5.6 million (UK Small Business Statistics, 2019). Despite of its small size
they account for 99.3% of all private sector businesses at the start of 2016, total employment in
SME was 15.7 million that is more than 60% of all private sector employment in UK.

(Source : Statistics showing share of small business enterprise in UK's economy, 2016)
The above bar graph is showing the importance and role of SME in UK's economy through
comparing employment, turnover and business level of small, medium and large organisation.
SME's combined turnover constitutes more than half of the private sector turnover in UK
reaching an annual total of £1.8 trillion. From the above graph it is shown that 99.3% of
employment is in small business contributing to 33% of turnover and having 48% of overall
businesses (UK Small Business Statistics, 2019).
Illustration 1: Statistics showing share of small business enterprise in UK's economy, 2016

(Source : Share of enterprises of different sectors of UK, 2018)
The above statistical graph is showing share of enterprises of different sectors of UK.
There were around 5.6 million small business at the starting of 2018. The combined annual
turnover of SME was £2.0 trillion which contributes 52% of all private sector turnover (Essential
Facts about SME's in the UK, 2019.).
From the above data and statistical information this can be easily concluded that in
today's era small business a playing a very important role in generating employment and also
crates better opportunities for financial weaker sections of society and also contributes to GDP
(gross domestic product) (Fu and et. al., 2019).
B2) Importance of small businesses in growth of economy
SME's are important for overall growth of nation, it not only focus on big cities but also
provide equal opportunity at local level where as large organisation only provide opportunities to
rich section and they are mainly located in big metro cities. In UK small business not only helps
in increasing overall performance of economy but it also crates more employment opportunity at
small district level or in Borough. Thus, it aim at providing more opportunities to small business
for reducing number of disclosure and to promote more small business. The most important role
of small business in growth of economy includes following points (Dana, 2021).
Creation of employment – Small businesses provides more opportunities for new
innovation and it the risk and resources required is also low. Thus individuals belongs to weaker
sections find it easy and most suitable for earning their livelihood. 60% of private jobs of
Illustration 2: Share of enterprises of different sectors of UK, 2018

United kingdom hiring more than 14424000 employees are hold by or belong to small
ventures.
Increase in productivity- Small businesses increasing the production level of an
economy by providing equal chance of establishing and doing businesses to local people. This
will ultimately increase the gross domestic product (GDP) and thus contribute in the growth and
development of economy (Atkinson and Lind, 2018)
Creates balance and equality in economy – Small business measures proper flow of
money across all sectors of economy. It also provide flexibility in business operation as it is very
adaptable and changes can be easily implemented because of its small size, thus helps in keeping
a balance between demand and supply and also helps in reducing poverty by providing job
opportunity to local people (Baporikar,2021).
TASK 2
Covered in PPT
CONCLUSION
From the above assignment it can be summarised that there are many types of
entrepreneurial venture in an economy having certain similarities and differences on the basis of
their objective, size and nature. Small business plays a very vital role in growth of an economy
through reducing problem of unemployment and increasing productivity.

REFERENCE
Books and Journals
Atkinson, R.D. and Lind, M., 2018. Big is beautiful: Debunking the myth of small business. MIT
Press.
Baporikar, N., 2021. Financial Literacy as Strategy for Enhancing Financial Inclusion of Small
Entrepreneurs. International Journal of Public Sociology and Sociotherapy (IJPSS), 1(2), pp.1-
14.
Dana, L.P. ed., 2021. World encyclopedia of entrepreneurship. Edward Elgar Publishing.
Gast, J., Filser, M., Rigtering, J.C., Harms, R., Kraus, S. and Chang, M.L., 2018. Socioemotional
wealth and innovativeness in small‐and medium‐sized family enterprises: A configuration
approach. Journal of Small Business Management, 56, pp.53-67.
Guerrero, M. and Urbano, D., 2019. A research agenda for entrepreneurship and innovation: the
role of entrepreneurial universities. In A research agenda for entrepreneurship and innovation.
Edward Elgar Publishing.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D.F. and Morris, M.H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management, 56(1), pp.11-23.
Mayr, S., Mitter, C., Kücher, A. and Duller, C., 2021. Entrepreneur characteristics and
differences in reasons for business failure: evidence from bankrupt Austrian SMEs. Journal of
Small Business & Entrepreneurship, 33(5), pp.539-558.
McDowell, W.C., Peake, W.O., Coder, L. and Harris, M.L., 2018. Building small firm
performance through intellectual capital development: Exploring innovation as the “black
box”. Journal of business research, 88, pp.321-327.
Mmbaga, N.A., Mathias, B.D., Williams, D.W. and Cardon, M.S., 2020. A review of and future
agenda for research on identity in entrepreneurship. Journal of Business Venturing, 35(6),
p.106049.
Naranjo-Valencia, J.C., Calderón-Hernández, G., Jiménez-Jiménez, D. and Sanz-Valle, R., 2018.
Entrepreneurship and innovation: Evidence in colombian SMEs. In Handbook of Research on
Intrapreneurship and Organizational Sustainability in SMEs (pp. 294-316). IGI Global.
Panagiotakopoulos, A., 2020. Exploring the link between management training and
organizational performance in the small business context. Journal of Workplace Learning.

Davis, P.E. and Bendickson, J.S., 2021. Strategic antecedents of innovation: Variance between
small and large firms. Journal of Small Business Management, 59(1), pp.47-72.
Online
Essential Facts about SME's in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
Southwark council. 2019. [Online]. Available Through: <https://www.southwark.gov.uk/>.
UK Small Business Statistics. 2019. [Online]. Available Through:
<https://www.fsb.org.uk/media-centre/small-business-statistics>.