Entrepreneurship and Small Business Management: A Report

Desklib provides solved assignments and past papers to help students succeed.

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................................3
LO1..............................................................................................................................................................4
P1.............................................................................................................................................................4
P2.............................................................................................................................................................6
LO2..............................................................................................................................................................8
P3.............................................................................................................................................................8
P4...........................................................................................................................................................10
LO3............................................................................................................................................................12
P5...........................................................................................................................................................12
P6...........................................................................................................................................................14
LO4............................................................................................................................................................16
P7...........................................................................................................................................................16
CONCLUSIONS...........................................................................................................................................17
REFERENCES..............................................................................................................................................18
2

INTRODUCTION
In today's era, there have been many sets of variations which have been applied towards the various
fields and the sections of the society in order to generate the most effective set of services with
reference to an ability to achieve the maximum profit. In terms of the marketing and the business
environment where the many types of techniques and policies which have been applied with the aim of
meeting the changing demands of the people, In the business environment, there are many new and
attractive types of ventures which have been established in order to generate the effective amount of
the profit, where the types of ventures are selected by the businessman on the basis of the financial
conditions which are defined in an organization. In the UK, the major focus is done on the start-up
ventures which have been increasing in the number in the past few years. The company named as
Toyota was started as the start-up business by Kiichiro Toyoda, who was the Japanese entrepreneur, as
the result of which the company has been recognized among the most popular automobile industry of
the world(Abe et al., 2015).
The term entrepreneurship serves as an important element for generating effective growth and the
development of the company. It defines the capability to implement the various procedures and
method in an effective way resulting towards the increase of growth and development of the company,
where the small business entrepreneurs are identified as the way of regulating the progress within an
organization by the set of the people in order to apply the best possible set of techniques towards the
structure and the functioning an organization in the condition of having inaccurate human resources
and low financial conditions, thus leading towards rthe4 effective of techniques which generates the
maximum profit with respect to an organization.
3

LO1
P1
According to the rapid changing environment of the business, there have been many different types of
entrepreneurs which have been defined in terms of the changes observed in the structure and the
business policies, including the introduction of the small research in reference towards the many set of
rules and regulations leading towards the development of the effective set of the procedures and
techniques which contribute in generating the most suitable procedures as per the need of the
company. The research also contributes towards the accurate understanding and implementation of the
various set of services defined in Toyota Company (Artinger and Powell, 2016).
Defining the best set of facilities and opportunities, the entrepreneurs have been classified on various
categories as per the aims and objectives of business depending upon the structure, scope and the size
of the business, the entrepreneurship can be broadly classified as the following:
Public Entrepreneurship
Such type of entrepreneurship is also called political entrepreneurship in which the group of the people
is involved towards the development and growth of an organization, it also deals with the set of the
public values which are necessary to be defined in the field of development and growth.
Independent Entrepreneurship
As per the name it has been defined as the type of entrepreneurship where the economic values are not
dependent upon the structure of an organization, which results towards the upcoming of the effective
set of decisions with respect to the development of an organization. This type of entrepreneurship
provides the way of thinking in an innovative and the4 creative way with an aim to define the most
accurate set of procedures and techniques in an organization (Audretsch et al., 2016).
Social Entrepreneurship
It has been defined as the type of the entrepreneurship which includes the set of the values and the
opportunities with respect to the social environment defined by an organization, which focuses upon
the delivery of the effective and the successful delivery of the products and the services towards the
customers as per the demands and the needs of the customers at the defined financial structure.
4

The types of entrepreneurship which are defined in terms of the ventures are:
Survival Ventures
These types of venture is dependent upon the barter and the cash system of a business environment
without including the active participation of finance in terms of the business activities, where such type
of ventures are not formally registered, instead these types of ventures are used to generate an
effective way of profit generation in an organization leading towards the activation of the business
activities (Banerjee et al., 2017).
Lifestyle Ventures
These are the types of ventures which mainly focus towards the set of procedures and methods
developed in an organization as per the lifestyle of the people defined towards the location and the area
where a business has been established, such type of ventures aims to manufacture the products and
services as per the requirement of the people.
Managed growth ventures
In order to deal effectively with various types of services and the procedures defined in an organization,
towards the growth and development of an organization, these types of ventures serve effective
towards the growth and the development of organization providing the support towards the entire
economy of the country.
Aggressive growth ventures
These are defined as the type of ventures which deals with the involvement of the technical equipments
with the motive to enhance the4 growth and the progress of an organization, by creating the various set
of opportunities towards the international and national business environment, leading towards the
increase in establishing the brand image of the company by providing the best set of services and
products t5o the customers (Burns, 2016).
5

P2
As per the defined set of surveys, there are major number of entrepreneurs which have been developed
and defined in terms of the providing the specialized set of resources as per the requirement and the
demands provided by the customers, with an aim of generating the set of values in such a way that the
effective set of procedures are generated with reference the growth and development of an
organization in terms of generating a large amount of profit in an organization, where the similarities
and differences in terms of various different enterprises have been provided as follows:
CATEGORY/ BASIS PUBLIC ENTERPRISES PRIVATE ENTERPRISES SOCIAL ENTERPRISES
DEFINE ROLES The type of enterprise
which includes the set
of the products and
services which have
been generated for
defining the profit of
people, instead of
focusing towards the
profit generation
capacity of an
organization.
This has been defined
as the type of an
enterprise which deals
upon achieving the
target of profit
generation with
reference to an
organization by defining
the set of products as
per the demands of the
customers.
The type of enterprise
which focuses towards
the development and
growth of the society
instead of defining the
set of profit generation
capacities (Cowling, et
al. 2015).
CHARACTERISTICS The characteristic
feature of such type of
enterprises serves
effective in terms of
providing support
towards the start-ups,
leading towards the
development and
growth of the overall
improvement of the
economic conditions of
the country.
As the name suggests
the characteristic
feature in this
enterprise serves to
provide the effective
profit generation
capacity in an
organization leading
towards the growth and
development of an
organization with the
motive to achieve the
Such type of enterprise
can be classified as
profitable or non-
profitable enterprise
depending upon the
accomplishment of the
targets and goals
defined in an
organization (Glass,
2015)
6

goals and objectives
defined in an
organization.
DEFINING ON THE BASIS OF SIZE VENTURES
On defining the set of the enterprises based on their sizes, they have been majorly classified as Public,
Private and Social business enterprise, which are defined as:
1. PUBLIC ENTERPRISES-
These types of enterprises are classified at the public level where the major concentration has
been done upon the type of enterprises established by the Government authorities, by defining
the set of policies and rules depending upon the allowances of the benefits, which contributes
towards the development and growth of the country’s economy.
2. PRIVATE ENTERPRISES-
This type of enterprises mainly focuses on generating a high amount of profit in an organization,
which mostly includes the enterprises belonging towards the small and medium-size classified
as private organizations.
3. SOCIAL BUSINESS ENTERPRISES-
This type of enterprise differ from the public and private enterprises, as such type of enterprises
majorly focuses towards the development and growth in terms of the social values by utilizing
the various resources in an effective manner, such type of enterprises work in order to establish
high level of success and effective profit generations (Dimitratos et al., 2014).
7

LO2
P3
As per the case study of the Toyota Motors to establish the business in terms of providing the facility of
cash payment in terms of debit/credit card in terms of vendors, where the Toyota company has been
classified as the successful entrepreneur by defining the best suitable set of ideas with reference for
increasing the profit generation capacity in an organization, where the company named as Toyota has
increased its profit generation ability from 574.2bn yen to 682.6bn yen, defining the jump of 18.87%.
With the rapid changing world, there have been many changes observed towards the various fields of
growing industries in terms of dealing with the new set of technologies and techniques being
implemented as per the demands of the type of products and services defined (Eijdenberg et al., 2015).
According to the latest survey, there have been more than 3500 start-ups all over the UK, which also
contributes towards the development of the economy of the country, wherein the year 2017 197,000 to
2.2 million private business captured over 5.7 million businesses. It has been observed that the
contribution towards the economy of the country has been provided by 95% of SMEs, by defining the
set of the new techniques defined over the business organization, leading towards the reduction in
terms of the rate of unemployment. Despite of this, as per the latest research 99% small and medium-
sized business have acquired the maximum market of UK, where the set of small entrepreneurs have
contributed majorly towards the development and growth of the country in terms of defining the
economic growth, which serves as an important asset for determining the overall economic growth of
the country (Fernández-Mesa and Alegre, 2015).
Company Category Staff headcount Turnover Balance sheet total
Medium- Sized <260 ≤€ 45m ≤€ 50m
Small <80 ≤€ 11m ≤€ 25m
Micro <20 ≤€ 3m ≤€ 10 m
Figure 1: Classification of Small, Medium and Micro Company
(Source: Fernández-Mesa and Alegre, 2015)
8

In the UK, SMEs have served to be defined as the major factor of contribution towards the achievement
and growth of an organization in terms of dealing effectively with the population of the UK.
Figure 2: Rate of Employment in the UK
(Source: Dimitratos et al., 2014)
The small and medium-sized business serves to be the helping hand towards the way of enhancing the
overall economic conditions of UK, where the majority of the enterprises belonging towards the
background of small enterprises provided the huge number of opportunities in terms of dealing with the
employment services towards unemployed people. The large difference in terms of the increase in the
rate of employment in terms of dealing with the population can be elaborated and understood in the
following diagram:
9

Figure: Number of Increase in Business Population in UK private Sector
(Source: Wolz et al., 2016)
P4
In terms of defining the economic growth of the country, the SMEs have played a vital role towards the
increase in the overall economic rate of the country, where the business enterprises have been
classified into various different types such as voluntary, public and private organizations, varying in
terms of structure and size in terms of defining the varying set of objectives and goals. The set of
organizations belonging towards the public organizations are controlled by the government bodies and
authorities with an aim to provide the effective set of products and services as per the requirement of
the people instead of defining the strategies related to the profit generation capacity in an organization
(Eijdenberg et al., 2015).
The main aim and motive of the public organizations is to deliver the set of services to the people in
terms of the affordable set of prices, whereas Private Organization has been defined as the type of an
enterprise which deals upon achieving the target of profit generation with reference to an organization
by defining the set of products as per the demands of the customers and Social Organizations, focuses
on the development and growth of the society instead of defining the set of profit generation capacities
(Fernández-Mesa and Alegre, 2015).
10

Figure:
Contribution of
Small Size Business for
Start- up Business
(Source: Giaoutzi
et al., 2016)
In order to maintain
the smooth
functioning of these organizations in UK market, the government of UK has implemented the various set
of policies and laws over the business organizations in order to establish the equal and transparent
behavior towards the development and growth of an organization. Among the various set of laws and
policies defined towards the accurate and smooth functioning of the organizations, the most important
and famous law defined by the government of UK is named as Brexit, which has been applied over the
various set of business organizations, which contributes towards the development and growth of the
business, this type of law has been classified under the various sectors of the business organizations. As
per the survey of year 2017, the business of employment was calculated to be 1.3 million as that of the
11

business defined of unemployment, where the technological development has played a major role
towards the progress and development of the SMEs in the UK, by creating the set of opportunities
towards the local people in terms acting as the bridge towards the rise of development in terms of the
career (Goffee and Scase, 2015).
12