Entrepreneurship and Small Business Management Report - UK Business

This report provides a comprehensive overview of entrepreneurship and small business management, focusing on the UK business environment. It begins by defining entrepreneurship and exploring various types of entrepreneurial ventures, including small businesses, large enterprises, scalable startups, and social enterprises, and categorizing them based on typologies such as survival and lifestyle ventures. The report then analyzes the similarities and differences between these ventures, highlighting aspects such as financial conditions, operational scales, and target markets. Furthermore, it examines the significant impact of micro and small businesses on the UK economy, supported by relevant data and statistics. The report also delves into the characteristics, traits, and skills essential for entrepreneurial success, as well as how an individual's background and experience can influence their performance. The report concludes with an analysis of the different ways background and experience can hamper the performance of entrepreneurship. This report provides valuable insights into the multifaceted world of entrepreneurship and small business, specifically within the UK context.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION.......................................................................................................................3
TASK 1........................................................................................................................................3
P1 Different types of entrepreneurial ventures and manner in which they relate to typology
of entrepreneurship.................................................................................................................3
P2 Similarities and difference in between entrepreneurial ventures......................................5
TASK 2........................................................................................................................................7
P3 Interpret relevant data and statistics to illustrate how micro and small business impact
on the economy.......................................................................................................................7
P4 Explain small business and business start ups to growth of the social economy..............8
TASK 3........................................................................................................................................8
P5 Characteristic traits and skills of successful entrepreneurs...............................................8
P6 Aspects entrepreneurial personality...................................................................................9
TASK 4......................................................................................................................................10
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship...................................................................................................................10
CONCLUSION.........................................................................................................................11
REFERENCES..........................................................................................................................13

INTRODUCTION
The method of implementing some innovative, new and unique ideas in different
operations and functioning of an organisation, so that they can improve their performance and
functionality at market place is known as entrepreneurship. Along with this, the person which
use to think different and out of the box, so that they can they can produce and provide some
unique products to their customers are known as entrepreneur. Along with this, these
innovative and unique ideas help them in starting a new business, which have power to attract
ample number of people towards them, and provide products and services to them. In this
report, a study will take place on various type of entrepreneurial ventures, which use to
perform their operations at business environment of UK, along with that it will help them in
detailing about typologies used for categorising them. Along with this, a study will take place
on similarities and difference between these entrepreneurial ventures (Bennett, 2014). Also, a
discussion will take place on benefits of small and micro businesses in context of economy of
nation and also for society of nation. In the last, a study will take place on skills and
competencies required by an individual, so that they can become a successful entrepreneur,
and also how background of an individual affect their performance and success will get
discussed.
TASK 1
P1 Different types of entrepreneurial ventures and manner in which they relate to typology of
entrepreneurship.
“An innovation or initiative does not have any value till entrepreneur convert into
effective service or product that customer wish to purchase”- Jim Clifton.
Entrepreneurship is an activity, which is performed by an individual, where they use to
implement some unique and also innovative ideas in their operations and functions, so that
they can make some changes in their performance and functionality. This all help them in
making improvement and also help them in gaining some competitive advancement along
with increase in profitability. Also, a person which use to think different, unique and out of the
box, so that they can make appropriate changes and also can start a new venture are known as
entrepreneurs. This all help an individual and entrepreneur to produce and provide products
and services which are very much unique and also can ease the daily life of an individual, so
that they can get attracted towards them. Also, this will help entrepreneur in serving huge
number of customers, so that they can gain huge profits and high revenue (Burns and
Dewhurst, 2016). There are ample number of organisations which use to perform their

operations in business environment of UK, and also they are classified according to their size.
Some of these are as follow :-
1. Small business entrepreneurship : These are the type of entrepreneurship which use
to perform their operations at very small level and also have very limited sources for
performing their operations. These resources include, man power, as the number of
employees, working with them are very few and also some of them do no have
employees, only family members use to perform their operations. Along with this, they
generally do not have any type of relationship with banks and if some have, then they
are not very good or big. There are huge number of small and micro entrepreneurship
which use to perform their operation in business environment of UK.
2. Large business entrepreneurship : This is just opposite to small and micro business
entrepreneurship (Burns, 2016). As they use to perform their operations at very huge
level and also, they use to provide their products and services at global level. They
have huge number of resources, which they can use for performing their operations
like, man power and finance. As the number of employees working with them is very
big and also they have to huge financial resources which they can spend for increasing
their business at global level. The relationship between an organisation and bank is
very strong in this and also, most of the major transactions use to take place via bank.
3. Scalable start up entrepreneurship : These are the type of entrepreneurship where
different operations and functions performed by an entrepreneur is to increase their
sustainability at market place. These type of entrepreneurship use to produce different
and unique products, so that they can serve huge number of customers and solve their
needs of daily life issues. This help customers in easing their work of daily life at very
easy level. Along with this, these entrepreneurship use to have contact with huge
number of customers and try to make unique and new products, so that they can solve
issues which society is facing.
4. Social company entrepreneurship : These are the entrepreneurial venture, which have
main focus on serving people, and producing new and unique products. Also, they use
to make analysis of different social issues, so that they can make an innovative product
and service which can help them in solving that issues. Along with this, they are made
up by grouping of people which have potential to do some thing for society and for it's
welfare.
Also, for categorising these entrepreneurial ventures, the factor which is used is
typologies. As in this the process of categorising will take place on size of them and also with
functions performed by them. Some of these are as follow :-

1. Survival venture : This is a typology, where organisations are categorised which use
to operate their operations and functions, so that they can sustain at market place and
also can increase their sustainability to long term period (Drucker, 2014). As it can be
said that, the main aim and objectives of them behind performing their operations is to
increase their sustainability instead of earning high profits. Mainly small and micro
businesses are categorised under this heading.
2. Life style venture : In this typology, the organisations that are categorised are those
which are very big in size and use to perform their operations at global level. As the
main focus of them is on increasing their productivity and also on improving their
profitability, so that they can grow and develop their business and resources of them
(Julien, 2018). Also, the aim of them is to serve ample number of customers, so that
they can make contact with huge number of customers and also can attain huge
amount of profits.
There are different types of entrepreneurial ventures on the basis of business which are listed
below -
 Based on the use of technology- Technical entrepreneurs are entrepreneurs who use
science and technology in their business. Non-technical entrepreneurs. The priorities
of them enterprises are not science and technologies.
 Based on ownership.- Private entrepreneur is one who as an individual person
establishes a business. State entrepreneur is When a commercial or industrial
enterprise is run by public or government. Joint venture entrepreneurs are when a
private entrepreneur and government co-managing a business.
 Based on gender - Men entrepreneurs when business is owned, managed and control
by men. And female entrepreneurs are when enterprise is owned and controlled at
least of 51% of capital by woman.
 Based on size of enterprise - Small-scale entrepreneur who has invested in to business
up to Rs 1.00 crore. Medium- scale entrepreneur who has invested in to business
above Rs 1.00 crorebut below Rs 5.00 crore. Large -scale entrepreneur who has
invested in to business more then Rs 5.00 crore.
P2 Similarities and difference in between entrepreneurial ventures.
Types of
enterprises
Similarities Differences
Small v/s Large  The goal and objectives  Th main difference between

Business enterprise of both large and small
businesses is to serve
ample number of
customers, so that they
can attain huge
profitability. As this will
help them in growing
and developing their
business in different
business environments.
 Also, they both use to
implement several
innovative ideas in their
operations, so that they
can produce some
products effectively and
also can fulfil the needs
of their customers.
both large and small
businesses is that, the
financial conditions of them.
Large have huge number of
sources and finance to
perform their operations at
huge level. Where as, small
have low finance with them,
and have limited resources
with them.
 Also, another difference
between both is of level
where they use to perform
their operations. As small
use to provide their products
and services at national and
local level. Where as, large
use to provide their products
at global level.
Social v/s Scalable
Enterprise
 Both of the organisations
use to make some
innovative and unique
products, which they can
provide to customers, so
that some social issue
can get solved which are
faced by them.
 Along with this, their
main motive is to serve
ample number of
customers and provide
them some innovative
products, so that they
can solve issues which
 Main difference between
social and scalable
organisations is that, scalable
use to produce unique and
innovative products so that
they can attract ample
number of customers and
gain some profits, where as
social use to provide these
products and services to
solve problems faced by
society (Mazzarol, 2014).
 Also, social organisations
use to produce ample
number of unique and

society is facing. innovative products, so that
they can provide solution for
the problems faced by
society, where as scalable
use to serve ample number
of customers, so that they
can increase effectiveness in
their productivity.
Lifestyle and survival
Entrepreneurial
Venture
 The main objective of
both lifestyle and
survival organisations is
to deal with ample
number of customers, so
that they can attain huge
profit, which help them
in growing their business
and also lead them to
increase their
sustainability for long
term at market.
 The major difference among
both of these is, survival
organisations use to operate
their functions, so that they
can survive at market place
for long time period. Where
as, lifestyle use to produce
products, which help them in
attain huge amount of
profitability.
TASK 2
P3 Interpret relevant data and statistics to illustrate how micro and small business impact on
the economy.
Small business
“People belonging to small business are the one whose values and aim can not be
measured or calculated in terms of profit and loss statements” Linda McMahon.
The business organisations which use to perform their operations at very low level and
use to serve only national and local customers are known as small and micro businesses. As
they use to pose huge benefits to economy of nation and also help them in their growth and
development. UK is said to be one of the best nation of the world which is best for any type of
business to perform their activities and gain some benefits from them (Mugler, 2017). As the
business environment provided by UK to small and micro businesses, lead them to produce
and sell and also perform their other activities, so that they can attain their goals and

objectives is effective manner. Also this help them in growing themselves and also avail them
opportunities which they can grab, so that they can increase their market share along with
their profitability. As UK is a nation which have huge number of small and mincro businesses
which use to perform their operations and also use to serve ample number of customers. This
all has helped UK by improving their economic conditions, so that they can grow and develop
themselves. As small and micro business use to provide their products and services at very
low cost, so that they are able to generate huge revenue by their performance. This all help
nation in getting huge funds in the form of tax, which help them in improving their economic
conditions and also help them in developing themselves.
Illustration 1: Impact of Economy on UK, 2018
(Source: Impact of Economy on UK, 2018)
From the above graph it has been clear that, in UK, small and micro businesses use to
perform their operations at very huge number. As, there are about 4.1 million small and micro
businesses use to perform their operations in business environment of UK, and they use to
make contribution of about 87 percent of total economy generated by Britain (Obeng, Robson,
and Haugh, 2014). Also they have increased GDP of UK by about 0.6 percent. Along with
this, they use to pose huge impact over them and also help society of nation to grow. As they
use provide ample number of job opportunities which youngsters of society can grab, so that
they can get job and fulfil their daily needs.
According to Companies act 2006 section 382 and 465 of UK a SME has a main
purpose for accounting requirements. On this basis a small company is one with the turnover
of less than 6.5 mil. Balance and balance sheet total do not exceed 3.26 mil GBP and up to 50
employees. A medium-sized company has average business turnover up to 25.9 million GBP.
And the balance sheet total does not exceed 12.9 million, and not more then 250 employees.
The definitions are given below (Recommendation 2003/361/EC adopted on 1st January 2005)
with the Euro values converted into Sterling at the rate applicable when this text was drafted

(June 2010).
Category Headcount Turnover Balance sheet
total
Medium <250 £ 41 mill £ 35.2 mill
Small <50 £ 8.2 mill £ 8.2 mill
Micro <10 £ 1.7 mill £ 1.7 mill
https://www.ucl.ac.uk/procurement/suppliers/smes
P4 Explain small business and business start ups to growth of the social economy.
Brexit was the step taken by Britain to take an exit from European Union. As this all
lead the Britain in facing issues, problems and challenges related to business performed in
their nation, along with decrease in economy of nation. As, it become very tough for
organisation to survive and perform their business in business environment of them. This all
help the nation to make their flow towards small and micro businesses, as government of UK
make several rules and regulation for them, so that they can attract ample number of small and
micro businesses to perform their operations (Sahut and Peris-Ortiz, 2014). This has helped
nation in generating huge amount of revenue and also help them in improving their economic
conditions, so that nation can grow and develop themselves. Along with economy, small and
micro businesses has also helped society of nation to grow themselves. As use to provide
ample number of job opportunities to youngsters of society, so that they can get jobs and
improve their life style and living standards. Also, small and micro businesses have very low
funds, therefore, they try to hire employees which can work for them at very low cost. For
this, they use to hire employees which are uneducated and also belongs to lower society of
nation. As this help them in getting employees at very low cost which have ability to perform
their tasks in effective manner. Also, this all help those youngsters of society in getting jobs,
which are not able to work due to lack of educations and also due to lack of socialism. After
getting job, they are able to earn some money, so that they can improve their living standards
and also can fulfil their daily needs. This all help nation by increasing the number of jobs, so
that ample number of capable persons get job.
TASK 3
P5 Characteristic traits and skills of successful entrepreneurs.
To being a successful entrepreneur, it is very much important for an individual to have

proper skills, approaches and competencies, so that they can perform their work in effective
manner, for achieving their goals and objectives in appropriate way (Scarborough, 2016).
Therefore, to being a successful entrepreneur, it is very much important for an individual to
make study of traits and skills of some successful entrepreneur. As this will help them in
gaining knowledge about the skills which are needed by them in different conditions. Peter
David Jones is one of the most famous entrepreneur of UK, as skills and characteristic of
them are very much helpful for them in becoming successful. Some of their skills and
characteristic are explained below :-
Peter David Jones : He was born on 18th March, 1966 and is one of the most famous
and reputed entrepreneur of UK. He has started an enterprise where they use to teach
youngsters about the skill, competencies, characteristic and traits which is needed by an
individual, so that they can become a successful entrepreneur in their future.
Characteristic of Peter David Jones :-
1. Passionate : As, Peter David Jones is very much passionate for their work and also use
to give their best to work, which they are performing (Schaper, 2016). This all help
them in getting best results from the work and task they have performed, along with
this, it help them in making effective strategies, so that they can achieve their goals
and objectives. While, on the other hand, business managers are less passionate in
comparison to entrepreneurs as the business is not owned by them and works as a
employee only in company.
Skills of Peter David Jones :-
1. Confident : As the main skill of them is that, they use to show confidence on their
employees, which help them in giving chance to their employees, and where those
employees can show that yes they are also able to do work. Along with this, he use to
show confidence on the risky decisions taken by them, so that they can achieve
something different and out of the box also. On the other hand, it has been further
analysed that confidence level of business managers is less. This is because, they are
only the managers and they does not own authority to take decisions at their own
level. This ultimately reduces their confidence level which makes them different from
entrepreneurs.
Peter David Jones
Traits 1. Innovation: Idea given by Peter David Jones was very innovative as started
business with interests in mobile phones, media, television, retail, property, etc. he

is the the last remaining original investor of BBC two television show Dragon's
Den.
Skills 2. Motivator
3. Communication
Characteris
tics
4. Team-Player
5. Problem Solving
P6 Aspects entrepreneurial personality.
It is very much important for an individual to have proper skills, so that they can
perform their tasks in effective manner and also become successful in their life. To being a
successful entrepreneur it is very much important for an individual to have some common
skills, which can help them in easing their work. Some of these skills are given beneath :-
1. Opennesses : For each and every individual, it is very much important for them to
have proper skills and competencies, so that they can make improvement in their
performance. For this it is very much important for them to have a mind set, which
help them in learning new things, which they can implement in their working and
make improvement in it.
2. Conscientiousness : This is the skill, which is very much important for an individual,
as in this they have to make proper analysis of benefits which they will get by
implementing new and some innovative idea in their functionality.
3. Extraversion : This skill help an individual in making appropriate interaction with
other, so that they can share their thoughts and information with each other (Shaw,
2014). As this will help that individual in making improvements in their skills, which
can help them in attaining their goals and objectives.
4. Agreeableness : Along with all these, it is very much important for an individual to
have skills which help them in influencing other person. As this will help them in
influencing their employees on the decision taken by them, so that employees can
work in appropriate manner and also help in achieving their goals and objectives.
Personality that indicates motivational drivers includes need for power, internal locus
of control, need for innovation, required for achievement, need for risk taking, need for
charity. It can be said that all of these influences personality of entrepreneur. This also affects
their performance which could be positive or negative.

TASK 4
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship.
Background as well as experience of entrepreneur holds an effective position in their
career growth. Both of them might work influential factor or could result as obstacle for
company. It can be said that if an individual hold strong family background then it would be
easier for them to sustain longer at market place or become successful soon. On the other
hand, if the past experience of the entrepreneur is not worthy or less effective then it will
become major barrier in their growth. It can be said that if this experience is of different
background or non related work then it will not support entrepreneur in their work. With
reference to present chosen entrepreneur that is Peter Jones, it can be said that both the
experiences and family background have helped in their growth and success.
1. Education: Education is considered as the most important thing in the life of
every learner. This is because, it helps them in understanding what things are
right and what are wrong in their career. In addition to this, it also helps them
in understanding what are the suitable options for them which are available at
market place and could also help them out in enhancing their knowledge on
various topics (Volery and Mazzarol, 2015). With reference to the chosen
entrepreneur, it has been analysed that he was educated enough for starting up
his career in business line. Better educational background have helped this
entrepreneur in taking better business related decisions and achieving their
long as well as short term goals. For instance: Peter David was educated
enough. High educational background have helped the entrepreneur in
performing their work in effective manner as they educated enough to take
right decisions.
2. Family: Family is seen as the first teacher of person from whom they learn
every small and big things which support them in overall life. It can be said
that family learning contributes an entrepreneur in taking major business
decisions that are helpful in becoming successful in life. In context of Peter
Jones, it can be said that family background of this entrepreneur was not
financial good as his father was small business man. Thus, the entrepreneur
was not having any financial support from family member. But, at the same
time it can be said that father of Peter was himself a business man (Zaridis and
Mousiolis, 2014). This works as the boosting factor for this entrepreneur as the