ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT - Detailed Report

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining and differentiating various types of entrepreneurial ventures, including private limited companies, sole proprietorships, limited liability partnerships, corporations, public limited companies, and social enterprises. The report then explores the similarities and dissimilarities between these ventures, highlighting their contributions to the economy and employment. Statistical data is presented to illustrate the impact of micro and small businesses on the economy, including their contributions to tax revenue and local economic development. Furthermore, the report delves into the characteristics and skills that distinguish successful entrepreneurs from other managers, as well as the motivational factors and mindsets that drive entrepreneurial success. Finally, it examines the role of background and experience in shaping entrepreneurial outcomes. The report offers valuable insights into the dynamic landscape of entrepreneurship and the critical role of small businesses in economic growth.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types of ventures of entrepreneurship....................................................................1
P2 Similarities and Dissimilarity................................................................................................2
P3 Statistical data for the micro as well as small business impact on the economy...................3
P4 Small scale start-up in development of social economy........................................................4
P5 Characteristics as well as skills of entrepreneurs which are different from other managers. 5
P6 Motivation and mind set of successful entrepreneurs............................................................8
P7 Background and experiences.................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small and medium enterprise are mid sized enterprise in which the operation is small and
also the size of employees are small with small amount of mode of operation is small in which
they focus on earning small. (Runyan. and Covin, 2019). There is high growth potential in the
small and medium enterprise. Management of the small and medium enterprise is must in order
to get better results. In the study different types of ventures will be studied and what are
similarities and dissimilarities are discussed in detail. Statistical data is used for the objective of
doing intense analysis of the contribution of small and medium enterprises and also large
enterprises in social as well economic development. The characteristics and skill which makes a
businessman successful are discussed in detail and motivational factors which keeps the
entrepreneurs motivated and staff focused towards work are studied in detail. Background and
experience also plays a major role as a helping hand towards the development of a business is
studied in detail in the study.
P1 Different types of ventures of entrepreneurship.
Entrepreneurship includes doing business in order to earn profit and the entreprenuer is
the person who used to do business who is the owner of the business.
There are different types of ventures for entrepreneurship and are as follows:
Private limited
Private limited companies are the companies which is having majority of the
shareholdings of the private shareholders the holding of the government is less. They are owned
and managed by the separate owner which is separate from the Private limited companies are the
companies in are focused on making profits (Daneshjoovash. and Hosseini, 2019). Private
limited companies are more effective as the money earned by such companies are invested
towards the growth and development of the company and due to which the business can invest on
better infrastructure and providing quality services to its stakeholders such as government by
paying tax, employees by paying dividend and manager by paying better salaries and better
promotion. The scope of the public company is wide as private limited company is having high
growth potential in the market if right strategies are used at right time.
Sole proprietorship
Sole proprietorship is a business which is owned as well as managed by a single person.
Under this venture there is no restriction between the person owning the business and the
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business. The capital investment is small and also the employee size is small (Fu. and et.al.,
2019). There is broad scope of this sector as this sector has high earning per person.
Limited liability Partnership
This is a partnership in which the liability of the partners are limited by the amount
invested by the partner. To sign such type of partnership the partnership is required to be sign. In
the partnership there are small numbers of partners and also the profit sharing between them is
limited. The scope of Partnership is wide as It will merge two or more ideas in single platform.
Corporation
Corporation a large company or group of company in which there is a large operation in
the business. There aim is to make money employing large number of employees. The liability is
limited by the amount invested by the investor or share holders. As the owner is separate from
the business. There is a wide scope of Corporation but corporation needs patients among the
investor as it will take time to grow such as large empire.
Public limited company
Public limited company is the company which is fully owned and operated by the
government. The majority of shareholdings are of the government. The aim of such companies is
not to make profit but indulge themselves in social activities in order to do betterment for the
society. The decision are taken by the government in the public sector in which the government
takes decision to build bridge, park, roads etc. The budget for the development is also of the
government in which management is done as per the budget by the government. There is a wide
scope of the Public limited company as the risk is shared by the government and also the
investment is of the government.
Social enterprise
These are such companies that work on volunteer bases and work to improve social
wellbeing of person. There is no specify legal structure of these firm, just volunteers work in
group and they form a firm called social firm. There is beneficiary who get benefit from it,
unincorporated association is there in which companies generate low income. There is no need to
hire employees because people work on volunteer bases.
Typologies
Lifestyle enterprises is the main typology in which owner always think to generate level
of income to business so that they can sustain in market for longer duration. This typology is
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adopted by public companies because they always want to work in market for longer duration
and want to get reasonable profit.
Scalable typology is the business in which companies work on innovative ideas and try to
get more profit. Private companies have this kind of typologies. this helps these firms in gaining
competitive advantage in the market.
P2 Similarities and Dissimilarity.
There are various similarities and dissimilarity between the ventures and the same are as
follows:
Public enterprises Corporate enterprises
This organization is wholly or partially being
owned by states.
This can include joint stock companies, limited
liability partnership
These type of enterprises are placed between
ownership of public
These type of business entities are dependent
on their own owners.
Public and corporate enterprises both of these organizations work for the welfare of their
employees. There main aim and objective is to increase consumer experience and achieve their
goals and objectives.
Public sector Private Sector
This type of sector is owned by government These type of enterprises are owned by
individual owners
They work in order to fulfil the needs of public These type of company work for their own
profit motive.
Both public and private sector are involved in following organizational structure, so that they can
analyse needs and demands of employees. Both sectors are also being involved in motivating
their employees so that efficiency of workers is also enhanced.
Similarities
The thing which is in common between corporation, partnership, private company and
sole proprietorship is they are all focused towards the earning of profits. They all contribute to
the economy of the country (Muñoz. And et.al., 2019). They provide employment to employees
which help them to earn their livelihood. The chances of growth of all the sector is immense, in
which they can grow at a tremendous rate by investing the money earned by them in the business.
Apart from sole proprietorship the liability of all these sectors are limited to the amount invested
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by them in the company. All these sectors are paying taxes which is contributing towards the
development of the economy. The economy is also developing because of rise in the rate of
production and consumption of the customers. They follow the budget which is prepared as per
the need of the business in which different sectors are invested by the limit of the budget. The
thing in common between all these ventures as they all share culture for the organization which is
followed in order to achieve the aims and objectives of the company. All the organizations
focuses on increasing sales by using advance technology using in marketing such as digital
marketing. All of these ventures focuses on reducing cost and increasing the productivity of the
company.
Dissimilarities
There are various dissimilarity such as public company is having majority of the share
holdings of the government whereas the in the private sector the majority of the share holding is
of the person who is separate from the company or private persons. The investment level also
varies company to company. The Corporation is having high investment budget, and they used to
invest in the market huge amount of funds but if it is compared with the other ventures then the
amount as well as budget is low.
The amount of taxes paid by the private sector is low whereas the amount of taxes paid by
corporation is high. Main aim of public sector is to do social welfare whereas other sectors
believes in making profits (Zaborova. and Markova, 2019). Operation of the corporation is huge
in which the there are different segments and even the segments are so big which are greater than
the public or private sector. There are large number of employees which used to contribute to the
corporation on large scale whereas the other sector are having fewer employees and the size of
the employees are so less that if all of them put together then also it will be less than compared to
the corporation. The Corporates pays higher salaries to the employees and also the revenue
generation of them are very high. The balances sheet and the financial performance of the
company also consisting of large numbers.
Criteria Small companies Medium companies Micro business
Number of employees It can hire less than 50
employees.
It hires 0-249
employees
It hire less than 6
employees
Turnover 6.5 million turnover 50 million turn over Less than 6.5 million
turnover
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All these firms small, medium and micro work to generate profit and sustain in market for
longer duration.
P3 Statistical data for the micro as well as small business impact on the economy.
Economy is the state in which the production and the consumption of goods and services
are done in order to increase the UK economy. If the there are higher consumption of goods and
services then the UK economy will grow at higher rate and if the production and consumption is
low then this will lead to lower development of the economy (Hashmi, 2019). The supply of
money also plays a major role in growth and development of the UK economy in which if there
is high supply of money then the rate of the economy development will be low and if there is low
supply of money then this will lead to lower development of economy. The statistical data
presented in the Guardian says that there is around 40% of the corporates taxes which are
collected from the small businesses. The amount of taxes collected from the large businesses
which is corporates are 60% which is a large number (UK economic Development, 2019). Year
on year the number is increasing and due to which the tax collection is increasing. The tax
collection is helping the company in investing the amount collected in the development of the
economy. Local economy is contributed more by the local business as per the analysis it is found
that the amount of tax and social contribution of the local companies are higher which is around
70% and rest lies with the big sectors (Ratten, 2019). All these companies also helps in
developing the regional economy by contributing towards various cultural programs which
attracts the local residents and the same are ready to invest in the programs.
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(Figure 1Essential Facts You Should Know about SMEs in the UK, 2019)
Small business generate employment in the area which helps the economy to grow as the
company will give money for the work done by the employees and the money will be invested in
the purchasing of goods and services. This will lead to increase in the demand and which will
ultimately result in increasing production and consumption of goods and service and the same
will help in development of the economy. Even in the bad condition of the economy which may
be due to bad whether conditions or other factors the small sector business used to grow at same
rate. This is because they are having small scale of operation, and they change as per the demand
in the market which can be due to change in the climate or change in the taste of customers.
Small businesses are having higher chances that they can grow there business in large
corporation. There are various examples of the small business which expanded their operation
when they were nothing. There is always a higher chances of growth of the small scale industry
to grow in the market. The growing industry contributes to the economy the highest. The same
will help first in the development of the local economy and then help in the development of the
national economy when they grow up.
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(Figure 2Essential Facts You Should Know about SMEs in the UK, 2019)
P4 Small scale start-up in development of social economy.
Small scale start up plays a major role in the development of the social economy. The
social economy is focused towards how the social behaviour is related to the economy of the
nation or region. Contribution is high of the non-profit organizations in the society (Gaddefors.
and Anderson, 2019). CSR activities done also contributes a major part to the society.
Difference between micro small and large enterprises.
Social contribution has level in which at national level it is higher and at regional level it
is lower than the national and at the local level it is lower than the national as well as regional
level. As per the data gathered from The Sunday times it is found that the contribution of small
enterprises in UK was around 200000 ponds. Medium enterprises contributed around 500000
ponds and the large enterprises contributed around 500000 ponds (Economic contribution, 2019).
The major area of contribution was towards the development of the park for playing and
recreational activities. The large organization contributed in the highest amount which resulted in
development of society. This also helped in branding of the business in which the sales of the
large companies increased by higher number due to social contribution. Even at international
level the contribution of the MNC is great and the highest among all the industries. As per the
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report it is found that the due to international operational level and high revenue generation MNC
used to contribute 1000000 ponds in a year towards the social economic development.
Socio economic development has resulted in economic development by increasing the life
expectancy of the society in which the same has resulted in increasing the life old aged people by
60% and due to which the social economic development has increased. The literacy rate of the
students have also improved in which the organizations have targeted the lower income group
society (Iftikhar, Justice. and Audretsch, 2020). They are becoming rich by earning handsome
pay and it is just because of quality education. Government provide subsidies for the social
economic contribution which helps in reducing the tax pay. Due to reduction in tax pay the profit
if the companies can be increased and the increased salary can be invested in growth of the
society. It is good to go for the business which are of small and medium category. Even it is good
to go for large businesses if there is high amount of investments are available.
P5 Characteristics as well as skills of entrepreneurs which are different from other managers.
There are various characteristics of successful entrepreneur and the same are discussed
below for the study Richard Branson and Peter Johns.
Characteristics of Richard Branson
Disciplined
Successful business man used to be determined and Richard Branson is disciplined
towards the work in which he used make daily plan for the work and the plan is followed on
regular basis with regular follow ups (Hua. and Lu, 2019). This makes Richard different from
other managers which not declined and do not make any schedule for the work.
Self starter
Self starter are the one who used to do all the things by themselves. Richard started
business without the support of others. He invested all his money which he earned with the
struggle. Richard did not follow any permission, but he takes all his decision by himself. This
makes him different from other managers as they are lazy and pessimistic towards the approach.
Creative
Richard is a creative person who was having the idea of Virgin. This idea never came in
the mind of the other entrepreneurs. Creativity helped Richard by creating sound market plan and
also helped in targeting people. This makes the different from the other managers because they
not every try to learn something new.
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Determined
Richard is determined towards the work and used to see defeat as an opportunity for
success. When other manager used to procrastinate work Richard used to see this as an
opportunity for success. Determination is the key for Richard in which when other managers
used to refuse the work Richard used to accept the work.
Skills of Richard Branson
Time management skills
Richard Branson effectively manages time in which he used to manage his personal life
and professional life equally (Link. and Sarala, 2019). Other managers do not used to manage
time effective and always used to say I don't have due to this they used to lose valuable
customers.
Strategic management skills
Strategy is the key for success and if strategies are not made for the business then the
business ca suffer losses. Richard is having skills to manage business. In which he used to
manage business by effectively planning for the customer acquisition. Under the plan he used to
focus on the aims and objectives oh the company and includes the steps to achieve the plan.
Whereas other managers fails to include the strategy.
Communication skills
Communication and effective delivering of the message is also necessary due to which
what the owner wants to convey successfully reaches the reviver is must. Richard is having the
quality to effectively deliver the message in which he uses upgraded tool for conveying message.
The other managers used to lack in this quality and due to which it leads to delay in
communication.
Characteristics of Peter Jones
Open minded
Peter is open-minded and this helps his finding no hesitation in discussing on any topic.
He used to discuss see everything around and used find ways of how things can be done better.
Open minded has helped him to gain better ways of doing work (Hiebl, Duller. and Neubauer,
2019). The other businessman feels lazy and they fears that if they used to tell something about
the business for gaining knowledge then this will lead to stealing of the customers.
Competitive
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Peter is more competitive, he used to remain silent and used to do competition analysis in
which what the other companies are better at is find out and the reason for which they are better
is implemented in the present company. This helps him to grow in the industry whereas the other
manager used to feels lazy for doing competition analysis, and they used to think that they are
best.
Passion
Peter is having the passion for doing business and achieving the target. Peter lovers his
work and believes in doing long time-work which makes him different form others who used to
come late in the office and used to make no productive work.
Skills of Peter Jones
Financial management skills
Financial management skills of Peter is superb in which he used to invest in the project
which used to give him higher return. In the financial management he used to find the
information about the financial companies and chooses the best company where he can invest.
The other manager are not good at managing the finance due to which the cost of borrowing
capital used to increase consistently.
Marketing management skills
Marketing management skills of Peter is awesome in which he uses advance technology
for doing marketing (Fotopoulos. and Storey, 2019). The advance technology helps him to save
cost and effectively achieving targets. The other managers uses traditional approach of marketing
is not cost friendly and also a lot of effort is required in it.
Networking skills
The networking skills of Peter is very good in which he used to create network wherever
he goes. This helps him to go branding of the product with ease. The other managers lack in this
quality, and they used to hesitate while talking to other.
P6 Motivation and mind set of successful entrepreneurs.
OCEAN model is the best model in which what are the motivating factors are taken in the
study which helped them succeed in the company.
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Openness to experience
Richard and Peter are open-minded and the same help them to have willingness to try
something new (Meshram. and Rawani, 2019). Openness in mind help them to learn and grow
which motivates them to take risk and taking risk helps them to achieve better results and give
competitive advantage.
Conscientiousness
Self discipline helps Richard and Peter to get motivation in which they used to make the
target and used to follow the targets with self-discipline. Lack in Conscientiousness leads to lack
of reliability about whether the person will be able to complete the task or not.
Extraversion
Richard and Peter used to enjoy the work and engaging with people in which they used to
make friends and used to talk about their hobbies and their approaches. This helps them know
how they can improve the performance. This motivates them to known more about various
business.
Agreeableness
Agreeableness people used to have optimistic approach towards the work, and they used
to see beauty in the nature (Bharucha, 2019). Successful businessman used to be trustworthy
people on which people can trust. The trustworthiness helps the company to grow as more
customer trust them and are ready to invest in the business. This motivates Richard and Peter to
make new contacts to whom they can show the service.
Neuroticism
Richard and Peter have the high tolerance for the stress in which they used to take big
mistake casually. This motivates them to have stability in the emotion. Also this helps in
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managing stress and helps them in taking effective decision. They used to remain calm and which
helps them taking effective decision even in the difficult times.
Mindset
Richard and Peter used to have strong mind set, and they do not used fear to take risk.
They use optimistic approach towards the work. Man with strong mind set used to take time
while thinking (Ji. and et.al., 2019). They do not take decision wildly but wisely which helps
them to make a bright future for the company. They do no like to listen the haters as they know it
is waste of time. Strong mindset people used to meditate daily and used to workout daily which
helps them focus towards the work and work with more dedication and with more passion
P7 Background and experiences.
Richard Branson
Richard Branson is British magnet investor, author and philanthropist. From his
childhood Branson wants to an successful entrepreneur (Moreira. and et.al., 2019). He started its
first business at the age of 16 it was a magazine called student later on in 1970 he started virgin
group under which there are 400 companies of various fields. In 1980 Branson virgin group
become instantly famous as a brand and in 2004 he started virgin Atlantic ans expanded virgin
record music label. In march 2000 Branson was awarded for his work in retail music and
transport . In 2007 he was placed under 100 most influential people in the world.
Branson was born in London black heath. He has two younger sister there name was eve
Branson she is a ballet dancer and air hostess and other sister name was Edward James Branson
ans she is a barrister (Moreira. and et.al., 2019). His grandfather name was sir George Arthur
Harwich Branson he was a judge of high court of justice and also privy councillor. Branson
completed its schooling form Stancliffe school a prep school and later on he attends cliff view
school in Sussex. In 1973 his third great grand father sir John Edward Branson left England for
India later on John Edward father harry Wilkins Branson joined him in madras on the show
finding your roots (Jimenez-Castillo. and Hoy, 2019). Branson mother also was an entrepreneur
she is a most successful venture in building and selling wooden tissue boxes and waste paper
bins. n 2004 he started a business for space tourism by the name Virgin Galactic, he introduced
it with a space port and space ship. Along the way Branson met with many leading entrepreneurs
and with the help of them and his own brilliance he has studied and overseen many companies
Peter Jones
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Peter Jones is a British entrepreneur born in 18 march 1966. He is a businessman and
reality television personality and also have interest in television, mobile phones, media, leisure,
retail and property. He is the only person who invented top two television shows of BBC channel
that is dragons den and American inventor. He is also appointed as a commander of the order of
the British empire in the 2009 (Kraus. and et.al., 2019). Peter Jones spend its childhood life in
maidenhead and aster that he completed his schooling from Guysborough school and Windsor
boys school. At the age of 16 years he invented its personal computers, in of the interview of
peter Jones of times of India he said that his computer business was failed when he was twenties.
After the failure of computer business he have to sell his home and car and had to moved back
with his parents And after that he joined Siemens Nixonian. Peter Jones also do many shows like
in the sixth series of hustle and ITV2's celebrity juice in may 2010, never mind the buzz cocks,
the magician in 2011, Jones also participated and two times star in a reasonably priced car
segment of top gear (Harel, Schwartz. and Kaufmann, 2019). Peter Jones live with his wife Tara
and also have three children there name is naturalist, Isabella, Tallulah, and they are living in
England beacons-field district and his first car is alpha Romeo alfalfa. Peter continues to have
many interests across a broad range of businesses that employ over 1,000 people. generating
sales upwards of $370 million
CONCLUSION
As per the study it is concluded that analysis of the business is important because it will
help the company to achieve the objectives and help in finding out ways to the clients which will
help them in selecting the best segment for the business. Each type of business has its own
advantages and disadvantages. The motive of each type of business is different. Some have the
motive of making profit. Some believes in social welfare and doing better to the society. There
are various similarities in the business which can help the business to easily switch-over if the
business expands in the future. It is dominant to use statistical data for the study as the same will
help in gathering the information due to which the growth of thee company took place. If the
business person is successful then the same possess some qualities and characteristics without
which the businessman can not become successful. Motivation and mindset makes a businessman
fearless and the same never thinks of quieting up and moving on towards the work.
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