Entrepreneurship and Small Business Management: UK Economic Impact

This report provides a comprehensive overview of entrepreneurship and small business management, focusing on the UK economy. It examines different types of entrepreneurial ventures, highlighting their similarities and differences, and analyzes the impact of micro and small businesses on the UK economy, emphasizing their role in reducing unemployment and enhancing the standard of living. The report also discusses the traits, skills, and characteristics of successful entrepreneurs, using examples such as J.K. Rowling and Alan Sugar, and concludes by examining the backgrounds and experiences that foster entrepreneurship. This detailed analysis is valuable for students and researchers interested in understanding the dynamics of entrepreneurship and its impact on economic development, and similar resources can be found on Desklib.

Entrepreneurship and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1.Different types of entrepreneurial ventures and explaining how they relate to the typology
of entrepreneurship......................................................................................................................1
P2. Similarities and difference in between all the venture..........................................................2
P3. Impact of micro and small business on the economy of United Kingdom...........................4
P4. Importance of small business and businesses start-ups to the growth of the social
economy......................................................................................................................................5
P5. Traits, Skills and Characteristics of a Successful Entrepreneur...........................................6
P6. Reflection of aspects of entrepreneurial personalities on motivation and mindsets.............6
P7. Examine the background and experience that hinder and foster entrepreneurship...............8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is a term which refers to an individual starts a business by taking
financial risk in the hope of earning profit. Entrepreneur is an individual who takes advantages of
opportunities in the marketplace. It is the capableness and willingness to create, organize and
manage a business venture. In this assessment, the report will make us understand about the
entrepreneurship and small business management as well as its characterise and traits to become
a successful entrepreneur. The study describes the types of entrepreneurship ventures and there
similarities with different kinds of entrepreneurship. The report will also examine the impact of
small businesses of the development and the growth of economy and its importance of small
businesses in the evolution and maturation of the economy of nation. The different
characteristics, skills and traits of a successful entrepreneur is also discussed in this report.
Furthermore, this assessment also comes to examine the background and experience of two
different entrepreneurs.
P1.Different types of entrepreneurial ventures and explaining how they relate to the typology of
entrepreneurship.
Private Entrepreneurship- Private undertakings are those businesses which is control
and manage by the single person or a group of individual. The main intention of private
undertakings is to earned more profit by increasing the sale and expand its business. The risk and
profit both is born by the individual or group of person (Amato and et.al, 2017). Large amount of
people are employed by private ventures.
Public Entrepreneurship- Public undertakings are those businesses which is control and
manage by the government of the nation. The entire working function is control and manage by
legal authority of the nation. In order to provide employment to large number of people, public
enterprise has large amount of contribution even the main intention of public undertakings is to
provide employment to people.
Social Entrepreneurship- Social undertakings are those business which has main
purpose to do welfare for community rather than earning profit. The profit earned by these
undertakings are utilized for the betterment of society. There are many social enterprises
operating in UK. Cawthrone Children;s Centre, CASA and OSEP are the social undertakings

working in UK for the development and betterment of society and have the greatest impact on
the economy.
Small Entrepreneurship- Small and micro businesses are those undertakings which have
small amount of capital and investment. The functional activities are also not so large, it is
limited. Resources for operation is also limited. For example- a general store, a small cycle store,
medical store and various other small undertakings falls in the category of small
entrepreneurship (Irene, 2017).
Large Entrepreneurship- Large undertakings are those businesses which have immense
amount of fund is invested in order to start the business. The functional and operational activities
both are in large extend. The infrastructure, capital, assets and liabilities are very vast and huge.
Scalable Entrepreneurship- Scalable undertakings are those businesses which start its
business with the purpose of earning profit by establishing the structured enterprise or
organization. It can be run by an individual or a group of people.
P2. Similarities and difference in between all the venture.
As we discuss above, there are different kinds of entrepreneurship which have different
vision and mission with various functional activities, strategies and plans. But there are some
similarities as well.
Basis of Differences Private Public Social
Purpose The purpose of private
enterprises are to earn
profit by maximizing
the sales.
The main purpose of
public enterprises are
to provide
employment to large
amount of people.
The purpose of social
enterprises are to do
welfare for community
rather than earning and
maximizing profit.
Ownership The private enterprises
are owned and control
by an individual or
may be group of
individual.
The public enterprises
are owned and control
by legal authority of
country, i.e
government.
The social enterprises
are owned and control
by government or a
single person or may
be from group of
people.

Infrastructure Huge amount of
infrastructure is
needed in private
enterprises.
The infrastructure of
public enterprises are
also in huge amount
but it is not in well
mannered.
The infrastructure of
social enterprises are
depends on its size.
Mostly it maintains
and expands its
infrastructure by
charity fund, donations
(Castrogiovanni,
2018).
Function Mostly private
enterprises are
operated and functions
in urbanization of the
nation.
Public enterprises are
operated and
functioned in the
betterment and
development of urban
and rural both areas.
The operations and
function of social
enterprise is for the
betterment and
development of
people.
Example ALDI, TESCO. The Government
Statistical Services,
The Highways
Agency, HM Treasury.
CASA, OSEP,
Cawthrone Children;s
Center.
Basis of Similarities Private Public Social
Profit Profit earning is the
main purpose of
private enterprises.
Public enterprises also
earned profit but the
profit earned is used
for the welfare of
people of nation.
Social enterprises also
earned profit but it
they use the earned
profit for the
betterment of the
society or community.
Employment Large amount of Public sector has the Social enterprises also

employment is
generated by Private
enterprises.
main intention is to
provide employment
to many people.
provide employment
to the society.
Entrepreneur Can be run by both
male and female
entrepreneurs (Fayolle
and et.al, 2017).
Similarly, it is also run
by both male and
female entrepreneurs.
It is also same as both
these enterprises.
P3. Impact of micro and small business on the economy of United Kingdom.
Small and micro enterprises are the heart of UK economy. Micro and small businesses
has large impact on the economy of UK. There are different kinds of small and micro enterprises
which are as follows-
Micro enterprise- The micro enterprises start there business with less than or under $5000
and people employed in the micro enterprises are less than 10 workers and the output is about
$26,84,942
Small scale business- The small enterprises starts their business with less than or under
$10000 and people employed is less than 50 workers and output is about $90,907 (Schenk,
2017).
Medium scale business- The medium scale enterprises starts their business with less than
or under $20000 and people employed in medium scale is less than 50 workers and output is
about $6,71,17,500.
Economic power of small scale business in UK- There are number of small, medium
scale undertakings working in UK. As per the survey, the record states that about 33% of people
are employed by small scale business and about 20% of output is contributed by small scale
undertakings.
The contribution of small and medium scale undertakings are adorable. They are called as
Heart and backbone of the economy. There are about £5.7 million businesses are operating in

UK. On an average, small and medium enterprises are about £5.2 million. The major part of the
economy is contributed by small and medium enterprises.
The total employed person in UK is about £16 million from which about £9.40 million
people are employed by small and medium scale enterprises which shows that more than half
people are employed by small businesses.
The Gross value added by small scale businesses in UK is about £630 billion by all the
industries out of which £330 million is contributed by small scale businesses.
The Gross Annual output of UK economy is about £1.5 million from which £85 million
is contributed by small scale industries.
From the above all information, it was stated that there are small scale undertakings plays a
prominent role in the development and growth of UK economy. They are contributing large
amount of share to the economy.
P4. Importance of small business and businesses start-ups to the growth of the social economy.
Small businesses and businesses start-ups plays a crucial role in the development and
growth of economy of UK. UK is getting large amount of advantages by small enterprises. Small
scale enterprises always come up with new and creative innovation so in the area of innovation,
small scale are working greatly.
Here are some importance of small scale businesses and new start-ups-
Decrease unemployment- Small scale enterprise has a great role in controlling the
unemployment. They are increasing employment in UK at great extend. From the above data it
was determines that more than half of people of UK is employed by small scale businesses. On
the other hand, with the increasing globalization, people are taking advantages of opportunities
and opening their new start-ups which helps in reducing the level of unemployment (McKeown,
2017).
Enhance the standard of living- Generally, small scale enterprises start open their
businesses in rural and remote areas. With the opening of businesses in backward areas, small
scale business helps in enhancing the standard of living of people. As we know that in the areas
of innovation and creation, small scale has immense level of contribution which in turn improve
and increase the purchasing power of people living in rural areas.

Increase in innovation and creation- In the area of creation and innovation, small scale
industries has immense level of contribution. The always come up with new and innovative
products which attracts many people. Furthermore, with increasing competition small scale
businesses have focus on non-stop innovations so that more and more good and services can be
avail to customers which lead to rise in the economy of UK as well raise the purchasing power of
consumers.
Maintains effective and healthy relationship- Small scale industries maintain or build
effective and healthy relationship with people like customers, suppliers and there employees.
Communication and interaction play key roles in the development and growth of economy.
P5. Traits, Skills and Characteristics of a Successful Entrepreneur.
In UK, there are number of entrepreneurs who are leading in the world. J.K Rowling and
Alan Sugar are one of the top-pest entrepreneurs in UK. They are leading in the world only
because of their skills, characteristic and traits. Their skills and characteristics makes them
different from others.
Following are the skills, traits and characterise of a successful entrepreneur-
Innovation- the innovations and creative ideas of a successful entrepreneur is adorable
and it is wholly different from others, The ideas and innovations helps many people to change
the standard of living of people. The innovative and creative ideas of J.K Rowling and Alan
Sugar is largely affected the standard of living of people as they are highly innovative and
creative.
Self-Confidence- It is the state of mind of people. Confidence plays a crucial role in
running the business. The growth and development of the company needs effective level of self-
confidence. J.K Rowling and Alan Sugar has high level of self confidence which in turn helps
them to take effective decisions for company.
Passionate- To become the successful entrepreneur it is very important to have passion
about their work to achieve the goals. This attribute will not only assist in up-rising the work
quality but also aids businessman to execute the expectable objectives and goals. J.K Rowling
and Alan Sugar are very much passionate towards their work which makes them a complete and
a booming entrepreneur (Struwig, and Lillah, 2017).

Motivation- Motivation is the heart and soul of every business. In order to make the work
done from employees and overcome the troubles and issues coming in the business, Motivation
is a key factor. Without motivation, one cannot achieve the target and goals. J.K Rowling and
Alan Sugar are highly motivated person and they also motivate others in the organization.
P6. Reflection of aspects of entrepreneurial personalities on motivation and mindsets.
The big five personality theory and model will be apply to determine the personality of
entrepreneur, J.K Rowling and Alan Sugar. There are five types of personalities traits that posses
by an entrepreneur. There many professionals make use of this model to examine the
personalities of an individual,
Extraversion- It determines the excitability, sociability, assertiveness and large amount
of emotional expressiveness (Laukkanen and Tornikoski, 2018). A person tends to be more
social, posses high degree of extraversion. High degree of extraversion person makes their
energy through societal interaction. Person who makes their energy by themselves has low
degree of extraversion. J.K Rowling generally interact with people to get innovative ideas but
Alan Sugar was introvert, he uses to less interact with people.
Agreeableness- Love, kindness, affection are included in this personality traits. This
helps to make interest in other people and care bout them. To run the organisation it is very
essential to have love affectionate atmosphere as because without love and affection, employees
takes their work as burden. J.K Rowling and Alan Sugar both shows love and kindness to their
employees in the organization.
Openness- Imagination and insight is included in this personality. Entrepreneur who
posses broad range of interest in other people and who seems to be more creative posses high
degree of openness. In order to become the successful entrepreneur, it is very important to have
openness in their personalities. J.K Rowling and Alan Sugar are more innovative and creative
and high degree of openness.
Conscientiousness- A successful entrepreneur is one who has high degree of
thoughtfulness with better motivation control and goal oriented behaviour. In this type of
personality of entrepreneur consume more time in readying and executing important project first.
This of entrepreneur pay attending in detail and enjoy setting agenda. J.K Rowling and Alan
Suga both are consciousness as they enjoy making agenda and execute the crucial work first.

Neuroticism- Sadness, moodiness and emotional instability is included in this personality
traits. More emotional and unstable in a person shows high degree of neuroticism. More
stableness in emotion in a person shows low degree of neuroticism (Mamabolo, Kerrin and Kele,
2017). J.K Rowling and Alan Sugar both manage and control their emotions as per the
situations.
P7. Examine the background and experience that hinder and foster entrepreneurship.
It is not an easy task to become a successful entrepreneur because there are ample
amounts of issues, troubles and problems faced by them while working to achieve the
organizational goals. They bear pains themselves when every one leave their hands. The
successfulness of the entrepreneur is not examined by their heights they reach but it is examined
by their failures. J.K Rowling and Alan Sugar both has faced many troubles and issues is regard
to their backgrounds. They have quality to overcome the situations and problems in order to
achieve the success. With the assist of their risk taking and evaluating and passionate quality
they accomplish their targeted goal and become the leaders. They are now leading Information
and Technology Sectors but earlier they foster their development and growth effectively and
efficiency. Family background partially hinder and partially foster their growth and
development. Thus, it shows that J.K Rowling and Alan Sugar faced so many problems and
issues and they handle them with efficiency and now they are leading in the world (Mahadea,
and Kaseeram, 2018).
CONCLUSION
From the above report, it is understood that small scale industries and new start ups plays
efficient and effective roles in the development and growth of UK economy. This report also
identified various kinds of entrepreneurial ventures. The differences and similarity is also discuss
in this report. Five traits of personality traits is also examined in this report.

REFERENCES
Books and Journals
Mamabolo, M.A., Kerrin, M. and Kele, T., 2017. Entrepreneurship management skills
requirements in an emerging economy: A South African outlook. The Southern African
Journal of Entrepreneurship and Small Business Management, 9(1), pp.1-10.
Amato, C and et.al, 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management, 55(S1),
pp.27-42.
Castrogiovanni, G.J., 2018. Guest editor’s introduction: so what is entrepreneurship
research?. International Entrepreneurship and Management Journal, pp.1-3.
Fayolle, A and et.al, 2017. Entrepreneurship in Family Firms, Business Families, and Family
Business Groups.
Irene, B.N., 2017. Women entrepreneurship in South Africa: Understanding the role of
competencies in business success. The Southern African Journal of Entrepreneurship and
Small Business Management, 9(1), pp.1-9.
Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research.
Mahadea, D. and Kaseeram, I., 2018. Impact of unemployment and income on entrepreneurship in
post-apartheid South Africa: 1994–2015. The Southern African Journal of
Entrepreneurship and Small Business Management, 10(1), p.9.
McKeown, T., 2017. From entrepreneurship to small-to-medium enterprises: Exploring the
challenge and the opportunities. Journal of Management and Organization, 23(2), p.165.
Schenk, H.W.E., 2017. The prevalence and focus of formalised Human Resource Management
practices in a sample of SMEs in the marketing and retail sector of South Africa. The
Retail and Marketing Review, 13(2), pp.40-54.
Struwig, F.M.W. and Lillah, R., 2017. South African small and medium-sized enterprise owners’
intention to implement an environmental management system. The Southern African
Journal of Entrepreneurship and Small Business Management, 9(1), pp.1-8.