Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
1

Contents
LIST OF FIGURES..........................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
LO1..............................................................................................................................................................5
P1.............................................................................................................................................................5
P2.............................................................................................................................................................6
M1...........................................................................................................................................................8
LO2..............................................................................................................................................................9
P3.............................................................................................................................................................9
P4...........................................................................................................................................................11
M2.........................................................................................................................................................12
LO3............................................................................................................................................................13
P5...........................................................................................................................................................13
P6...........................................................................................................................................................15
M3.........................................................................................................................................................16
LO4............................................................................................................................................................17
P7...........................................................................................................................................................17
M4.........................................................................................................................................................18
CONCLUSION.............................................................................................................................................19
REFERENCES..............................................................................................................................................20
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LIST OF FIGURES
Figure 1: Barrington James Logo..................................................................................................................4
Figure 2: Private Sector Businesses in UK....................................................................................................9
Figure 3: Adoption of Digital Technology by SME......................................................................................10
Figure 4: UK Social Security Rates..............................................................................................................11
Figure 5: Economic Growth of UK..............................................................................................................12
3

INTRODUCTION
Entrepreneurship refers to the process through which an individual initiates a business with an
innovative idea (Kuratko, 2016). Entrepreneurs drive the innovative idea into a successful venture by
carrying a new organization by taking wide risks and generating employment.
Barrington James is a recruitment firm which is based in London and provides recruitment services to
organizations. Formed in the year 2002, the firm has been providing efficient candidates to the business
organizations through understanding their needs and the type of workforce needed in the areas of
Pharma, Medical and Healthcare Industries (Barrington James, 2019).
Figure 1: Barrington James Logo
[Source: Barrington James, 2019]
Through this report, various types of entrepreneurship ventures have been studied and the role of
entrepreneurial ventures in the public and private sector has been determined. Through this report, the
impact of small and medium enterprises in the economy has been studied and through relevant data
and statistics, their various aspects have been studied. This report also assisted in understanding the
different traits and characteristics held by the entrepreneurs of Barrington James, a UK based
recruitment firm and different personalities of its entrepreneurs has affected the business of the firm.
This report also helped in developing an understanding of how the background of the entrepreneurs can
influence entrepreneurship in Barrington James.
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LO1
P1
Entrepreneurship ventures are those organizations that have been started by entrepreneurs through
which they provide an innovative product or service to the customers (Kirzner, 2015). There is a high risk
attached to these businesses as a new product/service is being provided investing in various resources.
Intrapreneur: An Intrapreneur is an individual who has the characteristics of an entrepreneur which he
practices within the organizational boundaries of the firm (Gawke et al., 2017). Within the firm, an
Intrapreneur develops innovative ideas and brings out creative solutions to
Following are different types of entrepreneurship ventures:
 Serial Entrepreneurship
Serial entrepreneurship is a business venture which is started by an entrepreneur through
developing an innovative idea but later the delegates the responsibility of carrying the business
to someone else (Parker, 2014). For instance, Sir Richard Branson, the founder of Virgin Atlantic.
 Social Entrepreneurship
Social entrepreneurship refers to the business that has been set up by an entrepreneur not for
the purpose of generation of profits but for the welfare and development of the society (Sastre‐
Castillo et al., 2015). For instance, Bill Drayton, the founder of Ashoka: Innovators for the Public.
 Female Entrepreneurship
Female entrepreneurship refers to the business that is being started and operated by a woman
or a group of women and is one of the most evolving entrepreneurship in the world (McAdam,
2013). For example, JK Rowling, author of the best-selling book series Harry Potter.
 Public Entrepreneurship
Public entrepreneurship refers to the characteristics of entrepreneurship inhibited by the public
sector organizations of a country through which they can implement innovative ideas for the
development of the society. For example, the BBC, one of the largest broadcasts corporation.
 Private Entrepreneurship
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Private entrepreneurship refers to setting up of innovative businesses by individuals where the
operation of the venture is privately held and no external interference is held (Kuratko, 2016).
For instance, Steve Jobs, founder of Apple Inc.
6

P2
With the different types of entrepreneurial ventures that have been established across the globe, there
are various similarities and differences among them, which have been represented in the following
table:
Entrepreneurship Ventures Similarities Differences
Serial entrepreneurship These businesses are started
through a single innovative idea
which has been transformed into a
successful venture. For example,
Donald Trump has established
numerous ventures while delegating
the responsibility of management to
others.
The key difference that this
entrepreneurship venture holds is
that its operations are not carried
by the entrepreneur after its
formation and the responsibility is
delegated to someone else
(Parker, 2014).
Social entrepreneurship These entrepreneurs take high risks
for the establishment of their
ventures as the return factor is
unstable. For example, Blake
Mycoskie founded his organization
in 2006 to assist the sick and injured
children by providing them with
shoes and thus return held by him
has high risk.
One of the major difference in this
entrepreneurship is that is not
formed for gaining profits unlike
other types of entrepreneurship
ventures (Sastre Castillo et al.,‐
2015).
Female entrepreneurship These firms are also typical
entrepreneurship ventures where
potential successful ideas are
implemented through business
organizations driven by women
(McAdam, 2013).
The major difference in this
entrepreneurship is that it is
formed and operated completely
by women, unlike other
entrepreneurship firms which
have a combined workforce in its
formation. Cher Wang, the
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founder of HTC Corporation, has
established her huge network of
HTC smartphones across the
globe.
Public entrepreneurship This type of entrepreneurship is
practiced in public firms so that
society can be developed and
benefitted by providing innovative
products and services (Hjorth,
2013).
One of the main differences that
public entrepreneurship holds is
that its management is held by the
state or government of the
country unlike other which
operate independently. For
example, the BBC is held and
managed by the government of
the UK while using the
characteristics of
entrepreneurship to train and
develop technology and
production talents.
Private entrepreneurship Similar to all types of
entrepreneurship, this
entrepreneurship also is established
with a creative idea and tolerates
heavy risk while its establishment.
For instance, Robin Kleven, founding
partner of the Accelerator Group,
initiated his firm through a creative
idea in investments sector.
Private entrepreneurship is
different from other types of
entrepreneurship as it is privately
owned and developed by
restricted individuals and does not
entertain the interference of any
other organization or people
(Kirzner, 2015).
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M1
Public sector entrepreneurship refers to the practice of entrepreneurship by the public sector of a
nation through which the enterprises adopt innovative and creative action plans for the development of
society. Through the practice of entrepreneurship in the public sector, the firms are encouraged to lead
to sustainable development and growth in the economy is directed through either innovative new
products or services or by improving the existing ones. Unlike private organizations, one of the major
drawbacks that are faced by public entrepreneurship ventures is the lack of gaining sufficient profits
through their businesses (Klein et al., 2013).
Private sector entrepreneurship refers to the practice of entrepreneurship by the private sector of a
nation through which innovative ideas are imposed for maximizing profits and expansion of the
business. Corporates have been implementing the concept of entrepreneurship so that they can
compete with the increasing competition in the market and provide creative solutions to the problems
faced by the people in the society (Wennekers and van Stel, 2017). Private organizations are focused on
increasing their profitability and unlike public sectors, are less concerned for the welfare of the society.
In various entrepreneurship ventures, a combination of private as well as public entrepreneurship is
being initiated so that the benefit of both the sectors can be provided to the society. Through public
entrepreneurship, organizations are able to assess the needs and want of the society and with the
assistance of entrepreneurship; they are able to provide accurate solutions to their problems (Storey,
2016). However, one of the major drawbacks of the public sector is recovered by combining it with the
private sector as the profitability is maintained along with providing solutions to the people. Through
developing a venture with has a combination of both public as well as the private sector would benefit
the society as a whole and would lead to the economic growth of the nation.
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LO2
P3
Micro and small businesses are those firms which have a very small business which is being operated by
a limited number of employees and have very low turnovers (Liedholm and Mead, 2013). Over the
years, the concept of micro and small business has been rapidly increasing and impacting the economies
of nations worldwide. It has been found that the majority of the businesses that are being conducted in
the economy of the UK are micro and small businesses and have been gaining their funding’s through
external sources. By the start of the year 2018, about 5.6 million small businesses have been noted in
the UK economy (Office of National Statistics, 2017).
Figure 2: Private Sector Businesses in the UK
[Source: Office of National Statistics, 2017]
Due to the establishment of these businesses, the flow of money in the economy of the UK has been
increased. With the establishment of these small enterprises, employment rates have been increasing
the high employment opportunities are being created in the private sector. It has been found that all the
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small enterprises combined have contributed to 52% of the total turnover of the private sector of the UK
economy (Office of National Statistics, 2017).
Various statistics have also been representing that with the establishment of these enterprises, the
government of the UK has been able to make use of higher digital technology. With the implementation
of higher digital technology by the small businesses of the UK, the standard of living has rapidly
increased (Parliament.uk, 2018). With the rise in the revenue generated by the micro and small
enterprises of UK, the government has also been able to develop higher revenues in the form of taxes
and foreign exchange gains through receiving funds from external sources. The use of technology by
these firms has also increased resulting in increased efficiency and productivity.
Figure 3: Adoption of Digital Technology by SME.
[Source: Parliament.uk, 2018]
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P4
Small businesses hold very huge importance in the growth of the social economy of a nation. Different
areas of the economy have been affected by the rise in small businesses in the UK. The employment rate
in the United Kingdom has been increased rapidly by providing about 1.8 million people in the past 5
years. These enterprises have been providing a high rate of employment in the country and the increase
in their establishments have been benefitted the local economies (Hillary, 2017).
Another major impact that small enterprises have made is in maintaining the social security rate for
employees. Social security rate is being decided by law through which revenue is generated through tax
rates and is invested on the social security of elderly aged, survivors and disabled people. Due to the
positive impact of small and micro businesses in the UK economy, the government has been able to
maintain the social security rate at 12% over so many years (Trading Economics, 2018).
Figure 4: UK Social Security Rates
[Source: Trading Economics, 2018]
Micro and small businesses have also contributed to the local economy of the UK by the economic and
social development of society. Of the numerous organizations that have been established, most of them
were manufacturing firms. Due to their private ownership of organizations, the small enterprises were
able to cope up with the challenges created in the changing economy of the UK.
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