Entrepreneurship, SMEs, and Social Economy Analysis Report

This report provides an executive summary and detailed analysis of entrepreneurial ventures, categorizing them based on scale and function, and connecting them to entrepreneurship typology. It differentiates between survival, social, and public ventures, highlighting their organizational st...Read More

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

EXECUTIVE SUMMARY
This report highlights the different type of the entrepreneur ventures on the basis of the scale
and the function and their link with the entrepreneurship topology. After that report highlights
the Differences and the Similarities in between the different entrepreneur venture. Further this
report highlights the impact of the SMEs and Micro business on the UK economy by
understanding what are the thing which has been contributed by the SMEs in both the positive
and negative aspect. This report also explains the development of the social economy which has
been brought by the SMEs and the Start-up.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LO 1.................................................................................................................................................4
P1 Explain different type of the Venture................................................................................4
P2 Explain the similarities and difference in different Venture.............................................5
LO 2.................................................................................................................................................7
P3 Explain the impact of the SMEs on the UK economy......................................................7
P4 Explain the impact of the SMEs on the Social economy..................................................9
LO 3...............................................................................................................................................10
LO 4...............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship refers to the activity of establishing a new business by taking financial risk
and the major objective behind taking such risk is to maximize the profits. It can also be defined
as the willingness of the person to start and manage a new venture. Entrepreneur is the person
that take risk of staring a new venture for maximizing the revenue and responsible for launching
the new product or service. SMEs and the micro business can be defined as such type of business
which are having less than 250 employees in the organization. This report highlights the range of
venture ans the different type of entrepreneurship typology. Further this report highlights
similarity and difference in between them and also explains the impact of small businesses on the
economy of the UK .
LO 1
P1 Explain different type of the Venture
Entrepreneur: Entrepreneur is a person or the individual who commenced the business on
the basis of the innovative idea. Entrepreneur is the one who used to bear all the risk of the
business activity
Entrepreneurship: Entrepreneurship is the process of designing launching and and
running a new business. The people who creates these business are known as a entrepreneur.
Entrepreneur Venture: Entrepreneur venture is a business entity or the new start-up of
the entrepreneur to earn the maximum return out of it. Generally new venture is established on
the basis of the creativity idea possess by the entrepreneur. Different type of the entrepreneur
venture are as follows:
Different type of the Entrepreneur venture and Entrepreneur Typology
Survival venture: Survival enterprise is the venture which used to run the sole motive of
earning that much of the profit that organization is able to meet the financial obligation. This
type of the venture generally used to engage with the long term goal of staying in the market for
a longer period of the time. Generally the typology which is shown by this entrepreneur venture
is that they used to operate on the small scale. Their is a very good amount of the growth
opportunity available for the Survival firm as they used to take decision after seeing the viability
of the decision. Level of scope for this type of the venture is very less as there are good amount

of the competition available for this type of the business. Small restaurant or mobile stores are
the example of Survival venture.
Social Venture: It is the venture which has been established by the entrepreneur with the
sole motive of serving and solving the problem of the customer which is facing by the consumer
in the market the problem includes the social and economic problem. This venture can be the
profit earning or non-profit earning venture. The main motive of this venture generally is not to
earn the profit the main motive is to serve the consumer of the economy by solving their
problem. Big example of the Social venture is Hertfordshire Independent Living in UK.
Generally, the funding of this type of the venture is done by the contribution of number of big
NGO and also with the help of the social welfare fund (Ateljevic and Page, 2017). Typology
which is shown by this type of the venture is Scalable.
Public Venture: Entrepreneur venture which are owned and control by the government of
the country are known as a public venture. The sole motive of the business is to serve the
community of the country rather than making profit. Generally this type of the venture used to
show the large scale entrepreneurship typology. NHS is the biggest Public venture in UK (Doern,
2016).
P2 Explain the similarities and difference in different Venture
DIFFERENCES
Basis Survival Venture Social Venture Public Venture
Organisation
Structure
As this firm used to
work on the small scale
and number of the
employee are also less in
the organization they
generally does not
specify the type of the
organizational structure
but some of the
organization uses
Hertfordshire
Independent Living
generally uses Divisional
structure as a main
organizational structure
in which organization is
having many different
division based at a
different location and all
of them used to work
NHS generally uses
Matrix structure in the
organization in which
NHS uses both Functional
and divisional structure
together in the
organization.

Functional structure in
which there may be a
marketing department, a
sales department and a
production department.
together with the sole
motive of achieving
organizational goal.
Source of
finance
Generally Survival
venture invest own fund
to start the business or
takes the help of the
bank loan or angel
investor.
The Capital of the
Hertfordshire
Independent Living in
UK is issued by the way
of the contribution from
the different NGO or by
the way of different
donation.
NHS is funded by the
capital from the different
welfare fund of the public
sector.
Reward The profit earn by the
organization is the main
reward for the
organization.
Customer satisfaction is
the reward for the
Hertfordshire
Independent.
The main reward for the
organization is to satisfy
the need of the community
in the country.
Exit
approach
Liquidation is the most
common exit approach
used by the Survival
venture..
Generally this firm used
to not shut down their
operation, they generally
used to cut down their
operation.
Merger and Acquisition
are the exit approach
which are used by Public
sector venture.
SIMILARITIES
There are many similarities in all the venture such as
 All the three venture is set up on the basis of the creative idea and used to continuously
innovate their operation to serve the consumer. For example any small restaurant as a
survival firm always used to bring new taste or sauce in the market to attract the
customer, NHS generally used to adopt new technology on continues basis to serve the
consumer of the country.

 All the venture irrespective of their scale has to sustain the competition in the market as
Survival venture has to serve against the big organization in the market. NHS has to serve
the competition with the other private hospital in UK.
LO 2
P3 Explain the impact of the SMEs on the UK economy
Small and Micro Business:
SMEs and the micro business can be defined as such type of business which are having
less than 250 employees in the organization. SMEs and the micro business are identified as for-
profit enterprises that are independently owned and operated but do not dominate their industry
or local market.
SMEs and the micro business in the UK can be called as a live blood or the life line for the
UK economy as on them the economy of the UK is over depended as SMEs and Micro business
in the UK contribute the 99.3 percent of the total private sector in the UK. There were total of 5.6
million SMEs and Micro business in UK at the starting of the year 2018.
Employment: It is one of the biggest benefit which is brought by the SMEs and micro
business to the economy of the UK is that SMEs and the Micro business used to provide the
employment to the unemployed employee in the economy as it helps the economy in reducing
the wastage of the Human resources in the economy as this is the biggest problem of any
economy in the today's scenario (McMullen, 2019). SMEs and the micro business is account for
60 percent of the private sector that is 16.3 million jobs in UK. employment as a result the
Unemployment rate in the UK is 3.8 percent which is too good when compare to other country,
as In the developing country like India the Unemployment rate is 7 percent which is just double
of the UK.

Competition: It is the another big impact which is brought by the SMEs and the Micro
business in the economy as the number of the SMEs are increasing in the market the competition
is also increasing which is forcing or influencing the other big competitor in the market in bring
the best quality of the product so that they get the competitive advantage which eventually result
in consumer consuming the best quality of the product which means that the lifestyle of the
consumer in the economy is increase which influence the economy in the positive manner.
SMEs has not only impacted one region of the UK. SMEs has their impact all over the
UK as when compare the impact of the SMEs in between London and whole UK then it has been
found that there are 1563 adult out of 10000 in London region which looks to Launch SMEs
which is too high as compare to the whole UK as there are only 1059 Business per 10000
resident in UK. South East, South West and East of England are other region which are having
good amount of the SMEs as compare to the other.

Their are many sector in real who have attracted the interest of the adult in the market to
open the SMEs in that sector. Retailer sector is the one who have attracted the most number of
the SMEs as out of all the SMEs which are opened in UK 74 percent are opened in the Retailer
sector and 18 percent are opened in the construction sector.
Illustration 1: Number of UK businesses in the private sector by number of employees (2000-
2018)

P4 Explain the impact of the SMEs on the Social economy
Social economy is the economy which looks at the sociality of the country or the
individual or can be said the economy which is built with the in cooperation of the income,
status, race and Health of the individual in the country. There is a very good hand of the SMEs in
Illustration 2: Median Profit of SME’s With a Turnover of Less Than £25m, By Sector

improving and developing the social economy in the UK. Some of the benefit which is brought
by the SMEs to the social economy is as follows:
Innovation and Creativity:
It is the big two things which is brought by the SMEs and Micro business for the economy as all
the SMEs and the Micro business are set up with the new idea in the mind which can satisfy the
need of the consumer in the better way which help the business in establishing them self in the
market which eventually earns them a good profit which eventually result in good contribution
by their end in the economy (Staniewski, 2016). Out of all the profit in the Private sector 52
percent is of a SMEs and the Micro business. The revenue of the SMEs in the last year was a 2.0
trillion which is a really a big amount
Poverty: As the SMEs has provided the employment to the number of the individual in
the economy it has eventually helps the economy in reducing the poverty in the economy as it
helped the business in providing the work to the unemployed worker in the country. As the
poverty is the biggest issue for every economy the presence of that amount of the SMEs in the
UK has helped the business in defending the problem very successfully. The poverty rate in the
UK is 6.5% which is phenomenon as it is at the lowest side in the world as there are few
countries who will be having the poverty rate less than it (Poverty in World. 2018).
Optimum Utilization of The Natural Resources: As all the SMEs requires the variety
of the natural resources to run the business, it has helped the economy in investing their natural
resources which has eventually reduce the wastage of the natural resources for the country as the

usage of the Natural resources by the SMEs and micro business has resulted in the optimum
utilization of the resources for the economy (Volery and Mazzarol, 2015).
SMEs not only impacted the economy in the positive manner it has also impacted the
economy in the negative aspect also as the employment which was created by the SMEs in the
economy was created on the temporary basis as the almost 60 percent of the SMEs which was
co-operated used to close in the first year itself which means that the economy of the UK has to
face the problem of the unemployment again.
SMEs has also created the burden on the economy as the SMEs and micro business
which used to be close in the first year was most of the time is funded by the bank and the non-
operation of the venture result in the bankruptcy of the entrepreneur which eventually result in
creating the burden of the debit on the economy of the UK (SMEs And Micro Business Impact.
2018).
LO 3

LO 4

CONCLUSION
After going through above report it has been summarised that there are many different type
of the entrepreneur venture and there are many similarity and the difference which is shared by
them. It has been also summarized that SMEs have been very crucial part in the economy of the
UK and played a very crucial role in the development of the social economy of the UK.