Entrepreneurship and Small Business: Impact and Analysis Report

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on the different types of entrepreneurial ventures, their typologies, and the similarities and differences between them. The study examines the impact of micro and small businesses on the UK economy, particularly within the Havering Council borough, highlighting their contributions to employment, innovation, and overall economic growth. It also explores the importance of small businesses and start-ups in the social economy, emphasizing job creation and diversity. Furthermore, the report delves into the traits, skills, and personality characteristics of successful entrepreneurs, discussing how background and experience can influence entrepreneurial endeavors. The report references statistical data to support its claims, providing a detailed overview of the subject matter.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Executive Summary
Entrepreneur is the person who has ability and willingness to establish a business and enjoying
rewards. Small business and start-up firms always contribute in economy development of nation.
They offer employment opportunity to society members and make them able to live a standard
life. Study highlights contribution of these firms in UK economy by taking assistance of
statistics. Study has highlighted three successful entrepreneurs Peter, Richard and Philip Green.
Report also includes different business ventures alone with their typologies. Furthermore, it
describes skills of entrepreneurs and their personality as well.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different types of entrepreneurial ventures............................................................................1
P2 similarities in different entrepreneur venture.........................................................................2
LO 2.................................................................................................................................................4
P3 Micro and small business impact on economy.......................................................................4
P4. Importance of small businesses and business start-ups to the growth of the social economy
.....................................................................................................................................................5
LO 3.................................................................................................................................................6
P5 Traits and skills of entrepreneur.............................................................................................6
P6 entrepreneurial personality reflect mind set and motivation of person..................................9
LO 4...............................................................................................................................................10
P7 Background and experience can hinder or faster entrepreneurship......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship means starting new business with innovative idea with the main motive to
earn profit (Kirzner, 2015). The study will examine different types entrepreneurial ventures.
Study will describe types of typologies in entrepreneurial ventures. It will explain similarities
between different types of ventures. Study will lay emphasis on Havering Council Borough. The
London Borough of Havering in East London, England, forms part of Outer London. The
principal town is Romford. Study will determine impact of small business on economy.
Furthermore, it will measure importance of small business and Business start-ups growth in
social economy. Assignment will emphases on characteristics of successful entrepreneur. In
addition, report will explain skills, traits and personality that reflects entrepreneurial venture.
The main objective of report is to discuss impact of micro and small business contribution to
Havering Council borough and on United Kingdom.
LO 1
P1 Different types of entrepreneurial ventures
Entrepreneur is a person who discovers new idea in business to earn profit by taking risk
and they start small business. Entrepreneurship means the combination of all five elements of
business that is land, labour, capital, machinery and organization with hope to earn profit by
taking huge risk with innovative idea is termed as entrepreneurship. Entrepreneurial venture opts
opportunities by generation of new idea, as their main motive is to grow and earn profit.
Enterprise is an organization run by entrepreneurs that has aim to earn profit (Venkataraman,
2019).
Types of Entrepreneurial Venture
Public Sector Entrepreneurship: Public sector entrepreneurship focuses on innovation in
public policy with economic wealth and make changes in policies to face uncertain situations.
Purpose of public companies is to provide quality products to consumer rather than earning more
profit. Legal structure of public firms is that public firms are run by board of directors not by its
shareholders, but shareholders have right to participate in annual general meeting of company.
(Kuratko, 2016).
Private Sector Entrepreneurship: Private enterprises are owned by individual it is free from
market and the profits are earned by individual and also been operated by individual only.
Purpose of private firms is to earn profit and to fulfil their personal motive. The legal structure of
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private firms is to firstly register with the registrar of companies, then get certificate of
incorporation, company name should end with the word limited (Parker, 2018). Tesco is the
private grocery store established in United Kingdom.
•Scalable: In this type of typology the enterprise objective is to earn profit with the help of young
ideas and grow business through innovating in technological areas.
•Social: In this typology the entrepreneurship focuses on the social ethics that is to earn profit
with the mind set towards the welfare of the society. The innovative ideas should be beneficial to
the society (Read and et.al., 2016).
Typology of Entrepreneurship: It means examination of entrepreneurship with the categories
based on are as: business performance, on growth and innovation level, high tech firms with
higher innovation (Barringer, 2015)
 Lifestyle: In this type of typology the entrepreneur main focuses on the changing the
lifestyle of people as it mainly focuses on making daily activities easy with bringing
innovation in them. This type of typology adopted by private companies.
 High Growth Entrepreneurship: High growth companies are those companies which
brings innovative ideas in the fields of technology which has chance to grow very fast in
the market. The purpose of high growth entrepreneurship is to develop high technological
which are beneficial and help to grow. Legal structure of high growth firms is to register
them with registrar of company. Shares could should 50000 euro. For example Hilton
hotel has high growth (Burns, 2016).
 Survival Entrepreneurship: In this type of venture the organization main focuses on
survival and growth of the organization for long time to stay in market and meet their
financial obligations. Purpose of survival firm is to arrange finance and the owner is
liable for it. For example small stores and supermarkets (Storey, 2016).
 Managed Entrepreneurship: In management accounting the people who are new to start a
successful business which require skills to manage the entrepreneur as it includes
activity related to financing, budgeting, HRM, business planning, etc. Purpose is to
manage the operations of firm to work smoothly and steadily. For example Aldi company
is managed enterprise.
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P2 similarities in different entrepreneur venture
Similarities
 All the business has common objective of earning more profit. All the entrepreneurs
which are established has mind set of starting business with strong will power. All the
ventures needed to have will power.
 When new enterprise starts it needs finance or investors to fund their business. This is
required in all type of ventures.
 All the ventures require to have unique and constant innovation with the dynamic
environment (Nambisan, 2017).
 All these ventures have to face risks such as political, economic etc.
 All enterprises have to experience forces that influence their business. This happens in all
the ventures as the situation is similar in all of them.
DIFFERENCES BETWEEN ENTREPRENURIAL VENTURES:
Public Private Medium Large Lifestyle
Annual growth
rate
Average annual
growth its
objective is
social ethics
Private firms
annual growth
are normal .
Normal to meet
day to day
obligations
Greater then
20% growth
starts from 2-5
years.
10-15%
growth
starts
between 1-
2 years.
Managerial
focus
Focuses on
welfare of
society
Focuses on
earning profit
for own
purpose.
Selling whatever
they can sell.
Focus is on
increase of
scalability
Focus on
increment
in profit
Managerial sty
le
Managerial style
followed is
objectified style
Personal
strategic style is
used in private
firms (Cooper
and Folta, 2017)
Reactive style is
followed mainly
in survival
Style is strategic
and proactive
Managed
firm
follow
strategic
style
Technology Low use of
technology
Private firms
depends on
owner
Very low use of
technology
Higher use of
technology
Moderate
use of
technology
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Economic
motive
Social welfare is
main motive in
public firms
Motive is self
generated in
private firms
To sustain to
own and family
Wealth creation
is main motive
Wealth
creation is
motive of
managed
firms
LO 2
P3 Micro and small business impact on economy
Small business are privately owned corporations, sole proprietorships and partnerships
having less revenue then a medium size business. Small business have made a great impact on
the economy. Small business contributes in economic development in many ways like giving
people opportunities to achieve financial independence, encourage innovation, and create
employment opportunities (Lipset, 2018).
There were around 5.6 million small businesses at the start of 2018. Small businesses
accounted for 99.3% of all private sector businesses at the start of 2018 and 99.9% were small or
medium sized. This statistics how’s that small and medium scale industries plays a major role in
development of an economy. Small scale industries covers all the major markets in UK which
helps in developing employment opportunities. Total employment in small and medium scale
industries was 16.3 million, which was 60% of all private sector employment in UK. By offering
this much of employment opportunities, it plays a great impact on economy. Small and medium
scale businesses helped in economic growth by providing employment opportunities to people
who were not employable by larger corporations (Meyer and et.al., 2017).
The combined annual turnover of small and medium scale industries was £2.0 trillion, it
was 52% of all private sector turnover. It is being clearly showing that more than half of the
business is being generated by small scale business in UK. Small and medium scale businesses
contribute to local economies by bringing growth and innovation to the community in which the
business is established (Kazanjian and et.al., 2017).
Small and medium scale businesses are more likely to employ less skilled workers and
individuals with no prior work experience. This practice benefits the economy in two ways that
is small firms employ workers who may have difficulty in securing jobs, thereby reducing the
duration of frictional unemployment among these individuals, secondly, the employment of these
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workers raise there productivity by giving them on job training and work experience. Small and
medium scale Industries contributes a lot towards local government through taxes, which helps
the economy financially. When consumers patronize local small businesses, they are essentially
giving money back to their local community (Kirzner, 2015). There are over 7000 businesses
based in havering. The main commercial hub of borough is Romford, with a small district of
mainly office development close to railway station. New industrial development is encouraged in
the south of the borough has been encouraged by the London development agency
(Venkataraman, 2019).
P4. Importance of small businesses and business start-ups to the growth of the social economy
Small and medium scale businesses contribute to local economies by bringing growth and
innovation to the community in which the business is established. Many small scale businesses
also possess the ability to respond and adapt quickly to changing economic climates. Small and
medium scale businesses plays a major role in the area where unemployment rate is too high.
Establishing a small and medium scale business gives owner a competitive advantage over
others. Small and medium businesses plays a vital role because they provide financial prosperity,
but they also provide fulfilment and riches in diverse ways (Barringer, 2015). It improves the
growth of social economy of country in many ways like :-
 Creation of employment: Small and medium scale businesses create a large percentage of
new jobs. Small firms tend to be more labour intensive rather than more capital intensive.
In an economy jobs are being created on the birth and expansion of small business. It
plays a major role in growth of social economy of Borough.
 Innovation: One of the major element in growth of social economy is innovation.
Innovation leads to higher productivity, means that the same input generates a greater
output. As productivity rises, more goods and services are being produced which means
growth in social economy (Nambisan, 2017). Like for example Captify is a data
processing company which has grown past in recent years.
 Engage significant number of people including from disadvantaged groups: Small scale
businesses engages significant number of people from disadvantaged groups. These
people don't get much chances, while small and medium businesses provide them
employment opportunities.
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 Leading the way on diversity: Small scale businesses helps in employing people with no
experience. Here the people earn some experience and they are being able to apply in
large scale businesses as large scale businesses hire only experienced workforce. Small
scale businesses provide employment to not experienced people (Cooper and Folta,
2017).
 Meeting social purpose: Small and medium scale industries plays a significant role in
fulfilling social responsibilities like ethical business practices, direct philanthropic giving,
environmental sustainability initiatives and economic responsibility.
 Local improvement: The small business impact on local economy growth also takes the
form of sales tax collection. Local businesses charge sales tax based on their location and
can be the backbone of special taxation districts focused on unique projects, such as side-
walk and lighting projects to improve historic shopping districts and attracts additional
customers (Lipset, 2018)
LO 3
P5 Traits and skills of entrepreneur
Richard Branson a young age entrepreneur is a British investor, magnate and author .
Skills that made him a success are ;
 Delegate and small stuff: Being bold and thinking out of the box keeping a bigger
picture in mind rather than being trapped by regular projects. Branson prioritised their
tasks ,that helped them in dealing with decisions that were having greater impact on their
business. This is the skill which has made them different from business managers.
 Thinking ability and innovation: For the success of business entrepreneurs have to
think and act differently from other. Leadership style may be charismatic or
autocratic ,but one which is ideal is chosen. Branson innovative skills helped him to gain
the position (Meyer and et.al., 2017). Business managers do not have this skill.
 Learning throughout the life: Branson's key skill was to learn from each and every
circumstance . Succeeding people are not the most intelligent people but are adaptive to
the current changes with time. This one attribute is missing in business managers.
 Balancing work life for longevity: Constant work without break makes mind and body
unproductive. Take strategic breaks, give time to refuel it ,sharpen mind and return more
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strongly, these are some reasons behind his active personality and innovative thinking
(Kazanjian and et.al., 2017)
 Making time productive: Lack of funds, fear , procrastination are the barriers of
innovative ideas ,which every one has to overcome. Have the ability and courage to act
and execute those ideas. Branson too faced many failures and setbacks but he continued
which made him a success today (Kirzner, 2015)
Characteristics
Exceptional Optimism
Serial entrepreneur look successful but they encounters a number of setbacks . What makes
difference is they dont consider these setbacks as permanent ones. Exceptional optimism help to
keep balance in hard times. This make them different from business managers.
Desire of continuous innovation
Innovation is one of the the key to success , but one time innovation is not sufficient.
They have to be in continuous innovation to for their growth and success.
Self- reliance
Being an entrepreneur is no doubt a difficult task . They must have the will in embracing
the hard work and taking bad with good (Parker, 2018).
High pain threshold
Uncertainty and risk are the daily life of an entrepreneur, they have to make themselves
strong and tolerant towards uncertainties of business.
PETER JONES
He is another successful entrepreneur
Characteristics
 Ability to take risk: Capacity of taking risk and having the courage is the most essential
part for an entrepreneurs. In the beginning risk of failure is the most considerable thing.
 Vision: Entrepreneur are required to have a clear vision . Vision of future is important
thing as it decides where the business is to be driven (Nambisan, 2017).
 Leadership: Human resources are the most important assets of an enterprise, and a leader
provides a direction to their efforts. Leadership helps in achieving the desired results
otherwise everyone would be working independently without any direction.
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 Open minded: An entrepreneur should see every situation as business opportunity, that
can turn out to be beneficial for the organisation.
 Well informed: skills and ideas of entrepreneur should be unique and different. Being
well informed about the market conditions and current scenarios (Cooper and Folta,
2017).
 Innovation: Generation of new ideas ,launching new products , innovation can be in any
form doing the existing work in completely different and economical manner. This
attribute is missing in business managers.
Skills
Team automation
Collaboration is key point at Peter as they are having lose team structure. Operational
people are working for automation for focusing on interesting things. A single person does not
have the skills to handle the whole project all alone.
Cascading OKR to individual level
Peter spends at least 2 months in year for updating its business plan . And brings out
objectives and key results for each quarter, teams choose their quarterly objectives to ensure they
achieve their vision and objectives in coming 12 months (Parker, 2018).
Keeping things simple
Main objective of Peter is growth and margin expansion across the group. It is easier to
cascade big overarching objectives in teams and individuals as they are understandable.
Not to repeat the objectives enough
Peter does updation monthly and also shares his board report with team. Geckoboard
dashboard are being used by them for having their matrices on the walls
Remain involved in local tech community
For the sustainable growth of a business one must hire excellence from the beginning.
For this purpose they have to build network. Lot of conferences and socials are done by Peter to
bring brand awareness (Burns, 2016).
Summarising the difference between an entrepreneur and business manager
Entrepreneur and managers have a different standing in the company. Entrepreneur is
having the vision and converts that into a business. A manager does not bear all the risks like the
owners who have to bear all risks associated with the business. Entrepreneurs focus on starting
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and expanding the business while the managers deals with smooth functioning. By nature
entrepreneur is risk taker while manager is risk averse (Parker, 2018).
Philip Green
He is successful British businessmen who has become the great entrepreneur.
Skills of Philip Green
 Communication: He has strong interaction abilities, that has helped him to build relations
and retain the skilled people with him for longer duration.
 Interpersonal skill: He is able to understand emptions of others easily and make correct
decisions in each situation.
Characteristics
 He always behaves Positive, this ability of him has helped him in remaining motivated
and he learn from each failure which has made him successful.
 Decision making ability is another great feature of Philip, he evaluate situations and make
correct judgements.
P6 entrepreneurial personality reflect mind set and motivation of person
Its a rare capability and imperative for the entrepreneur to realize an idea. Branson and
Peter not only got the ideas but were also capable in executing them. Motivational structures and
personality traits bear a great importance in understanding the mind-set of entrepreneurs.
The Big Five model may be used for investigating the personality traits of self employed, which
is also known as OCEAN model. There are five broad dimensions for describing human
personality (Venkataraman, 2019). Five factors which are considered are;
Openness to experience
Branson, Philip Green and jones got excellent ideas and were very active in
understanding and grasping things. When compared with others they turned out to be more
creative and were more aware about their feelings. Jones was an actor which gave him an extra
hike in his business ,started new production house business which was again a success raised him
to a new level, apart he founded many other businesses like wines, enterprise academy (Storey,
2016).
Conscientiousness
Branson, Philip Green and Jones were always prepared for the uncertainties, and more
attentive towards things in details. Branson put too much emphasis on work out. Dutiful
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action ,self discipline and striving to achieve goals and objectives beyond the limits. They used it
for controlling , directing and regulating their impulses. Branson and Jones were not having high
conscientiousness as it depicts planned behaviour not the spontaneous (Cooper and Folta, 2017).
Extraversion
Having the ability in developing social networks, being energetic and the leadership skills
are the extraversions of Branson, Philip Green and Jones. They perceived various conferences
for engaging with the outside world. Being extroverts they were having good interaction skills
and were more action oriented and enthusiastic. They possessed good social skills which helped
them to create a wide business platform. Weakness of social engagement affects the business as
they fail to express their ideas and notions to the outside world. Though Branson was shy, he was
active towards overcoming his fears (Meyer and et.al., 2017).
Agreeableness
Agreeableness is one of the key factors for success of the Branson, Philip Green and
Jones ,cooperation with the team is an important aspect for the overall growth of the business. It
reflects concerns of individuals for the social harmony. They possessed an optimistic view for
human nature. These entrepreneur were regarded as trustworthy, generous and helpful. Being a
social trait they focused more on qualitative aspect of dealing with team members. It also depicts
that they were having transformational leadership skills unlike transactional skills (Kazanjian
and et.al., 2017)
Neuroticism
Branson and Philip Green is one of the best example for Neuroticism which deals with
stress tolerance ,being positive ,confident, and tendency of experiencing
anger ,anxiety ,depression commonly known as emotional instability. Neuroticism is a
temperament trait. Branson and Jones were emotionally very strong and stable and had the stress
management skills . Emotional instability can highly affect the business . Branson and jones
faced many setbacks and failures but they however managed to survive during the tough times
and didn’t dropped their ultimate aim of achieving success (Kuratko, 2016).
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LO 4
P7 Background and experience can hinder or faster entrepreneurship
Peter David Jones
Education history
Peter David Jones is a successful entrepreneur and businessman. He has struggled a lot
and is being successful after some failures of his business. In the age of 16 years, he set up a
business in which he made personal computers under the name of his own brand. He got inspired
from the film cocktail of tom cruise and opened a bar in his mid-twenties. He had a loss of
around £200,000 when he sell it to IBM. When he was in his twenties his computer business was
failed, he had to sold his 3 bedroom house in bray and his cars, he had to move back to his
parents. After this he joined siemens nixdorf.
After this he set up his new venture phones international group in April 1998. After this
venture his growth was started. In the summer of 2005, he collapsed with a company and he was
now on a way towards success (Kirzner, 2015). Jones founded his other businesses in 2004 and
2008, including wine4business.com. It was an online retailer specialising in the sale of wine and
champagne to corporate clients and Celsius, he started a recruitment business too aiming mostly
in biotechnologists.
Family background
He is separated from his first wife Caroline, with whom he had two children. After
separation he might gone through a emotional period which motivated him towards his success.
After the separation, he was a successful person and was one of the topmost entrepreneurs. He is
last remaining original investor on the BBC Two television show Dragons' Den and on American
television series American Inventor (Burns, 2016).
RICHARD CHARLES BRANSON
Richard Branson is a British business magnate, investor, author and philanthropist.
Richard earned lot of success in his life, but with success he has some failures too. At the age of
16, he had his first business venture a magazine called student. He desired to become a
entrepreneur at a very young age. He set up a mail order record business, he further opened a
chain of record stores, Virgin Records, which was later known as virgin megastores in the year
1972. Branson's virgin brand grew rapidly during the 1980's. He started business of music labels
and airlines (Cooper and Folta, 2017).
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Branson's failed business ventures were virgin cola, virgin clothing, virgin publishing and
virgin brides. Branson married in 1972 with Kristen Tomassi and divorced in 1979. He was in a
touch with his second wife from 1976 and he married her in 1989. Branson released his
autobiography which was titled as losing my virginity. It was a bestseller of a time. It was a
successful autobiography which was emotionally being a great book (Lipset, 2018).
Branson wrote a article which was titled as My Friend, Steve Fossett. It was being written
for his fellow adventurer Steve, for whom Branson was saddened by the disappearance of him.
He thereafter ordained as a minister by the universal Life Church Monastery. These both are best
examples whose background and experience hindered and faster entrepreneurship.
Philip Green
He belongs from middle class family, his father is the property developer. He has
completed his education in boarding school, this things has made him more discipline in his life.
He understood the value of money and implemented this thing in his career as well. His family
was educated and supported. This thing has encouraged him to do well and never bother about
complex things or failure.
He had a working experience of longer duration, many times he got stuck but he has
learnt from his life and have applied it in each decision which has made him able to fulfil his
dreams.
CONCLUSION
From the above study we concluded that entrepreneurial ventures require innovative idea to
start a business. Entrepreneurial ventures include different types of ventures and different types
of typologies defined with entrepreneurial ventures. Entrepreneur chooses different venture
according to their suitability. Entrepreneurial ventures show similar characteristics with each
type also shows different characteristics from other ventures. Small scale business are helpful as
they generate employment and produces unique products like handicrafts, handmade items, etc.
Entrepreneurial venture needs skilled personality in entrepreneurship without skills the
entrepreneur will not be able to work and achieve its goal. It requires good leading personality,
management skills, innovative and creative mind, etc.
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REFERENCES
Books and Journals
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Cooper, A. and Folta, T.. 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship. pp.348-367.
Kazanjian, R.K. and et.al., 2017. Implementing strategies for corporate entrepreneurship: A
knowledge‐based perspective. Strategic entrepreneurship: Creating a new mindset.
pp.173-199.
Kirzner, I. M.. 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F.. 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lipset, S.M.. 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Meyer, G.D. and et.al., 2017. The entrepreneurship‐strategic management interface. Strategic
entrepreneurship: Creating a new mindset. pp.17-44.
Nambisan, S.. 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice. 41(6). pp.1029-1055.
Parker, S.C.. 2018. The economics of entrepreneurship. Cambridge University Press.
Read, S. and et.al., 2016. Effectual entrepreneurship. Routledge.
Storey, D.J. ed.. 2016. Entrepreneurship and new firm. Routledge.
Venkataraman, S.. 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
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https://www.huffpost.com/entry/small-businesses-can-make_b_13127000>
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