Entrepreneurship and Small Business Management Report

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Entrepreneurship and Small Business Management
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Table of Contents
Introduction................................................................................................................................3
Task 1 - Group Presentation.......................................................................................................4
Conclusion................................................................................................................................11
Task 2.......................................................................................................................................12
Task 3.......................................................................................................................................17
Reference list............................................................................................................................24
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Introduction
An entrepreneur has to apply innovative idea in their business to ensure success. The
Entrepreneurs need to have the ability to deal with risk factors associated with the business.
This study will highlight the concept of entrepreneur by providing examples of entrepreneurs
of UK. Various entrepreneurial ventures will be investigated here along with an explanation
of entrepreneurship typology. In addition to that, the activities of an entrepreneur will be
mentioned here. The scope of entrepreneurial ventures will be analysed here by giving real
life examples. Data related to the development of UK entrepreneurial ventures will also be
presented in this study.
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Task 1 - Group Presentation
1. Define what the concept of an entrepreneur is, and provide some examples of
different entrepreneurs in business.
As commented by Burns (2011), an individual establishes and runs a business can be known
as an entrepreneur. A good business idea needs to be developed and implemented by the
Entrepreneurs so that they can be able to compete in the existing market. It is the
responsibility of the entrepreneurs to motivate and influence the workforce in order to fulfill
the aim of their business.
For example, Peter Jones is one of the famous entrepreneurs of UK. Peter Jones is the owner
of portfolio business from publishing to telecom business (bbc.co.uk, 2019). The
entrepreneur has utilized own business skills to develop the business and achieve success.
Duncan Bannatyne is another entrepreneur of UK having interest in health and hotel
businesses. The individual has worked with several charities as well as established a hospital.
2. Identify the types of entrepreneurial ventures and investigate the similarities and
differences between entrepreneurial ventures.
Joint venture, Start-up Venture, Franchise, New development, High Growth Venture and
Public-private partnership are the different types of entrepreneurial ventures.
The similarities among these ventures are:
 All of the ventures need to take risks of their business
 The owners of these ventures have to accept new ideas for the development of
products and services to fulfil customers’ expectations
Differences among the identified ventures:
In case of Joint venture, two or more than two organisations start doing business together.
They share the business cost with each other as well as the risk factors associated with their
business.
On the other hand, if any organisation purchases an existing business then it is called as
Acquisition. The risk of this venture is comparatively lower than the other ventures as the
organisation only buys the business with good financial condition as well as effective brand
image in the market.
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In context of Franchise venture, it can be seen that the company allows to use its brand
image to the other organisation for selling the products in new market.
As commented by Mariotti and Glackin (2012), new Ventures can be known as start-up
business. The size of this business is comparatively small than the other businesses.
Public-private partnership is done by the private organisations of Government. The
employees of the public and private sector work together to accomplish the project work.
In case of new development, a new project is added with the existing business. R&D
department of the organisations play the major role in development of the product or service
to meet the expectations of the target customers.
In case of Lifestyle venture, the individuals are involved in sustaining the lifestyle by
providing effective services to the target consumers. The business activities are equally
divided among the employees to ensure that the customers are getting their expected services.
Smaller Profit Venture focuses on developing a sustainable business instead of concentrating
on making high amount of profit (Down, 2010). The target market of this venture is also
small. The management of this type of venture follows Hierarchical structure and does not
allow the staffs to participate in decision-making process.
The owners of High Growth Venture are committed to make large amount of profit and
generate high business revenue by offering high quality of products to the target market. This
type of venture adopts functional structure so that the staffs can be allocated with the tasks
based on their skills.
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3. Explain the concept of entrepreneurship typology, and correlate the different types
of entrepreneurs to different types of entrepreneurial ventures. Illustrate your answer
with examples.
Introduction
Entrepreneurship can be divided into several parts. This portion of the report will outline
different types of entrepreneurship and ventures with the interrelationship of the
entrepreneurs and the ventures.
Different types of entrepreneurs will be explained below:
Corporate Entrepreneurship
It is a method of developing a new products and businesses for a business firm. The key
requirement of corporate entrepreneurship is growth and innovation of the business (Silva
and Poza, 2016). It applies a new process in the business by innovating new business and
products.
Individual Entrepreneurship
Entrepreneurship that is managed by individual and the property owned by the individual is
called individual entrepreneurship. In this type of entrepreneurship, only the decision of the
entrepreneur is enough for the entire business.
Private Entrepreneurship
A business unit, which is managed and established by private individuals for the
governments, is called private entrepreneurship.
Public Entrepreneurs
Public entrepreneurship means injecting entrepreneurial idea within a public organisation.
The public entrepreneurs generally start business by collaboration and networking. It
increases the profitability of entire organisation.
Social Entrepreneurs
It means establishing a business by finding the social problems to achieve some change in the
society (Day and Mody, 2017). It all depends on the market research and proper
implementation is important in this entrepreneurship.
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Different types of ventures will be explained below:
Start-up Venture
This type of venture is the beginning of a business. These ventures are small and funded
initially. The group of founders does key operation of these ventures.
Acquisition Venture
It is a type of venture when an administration takes over another business firm. Later it
becomes one company.
Franchise
In this venture, one party provides the right to other party to use the trademark of the first
company. The owner company takes a part of profitability against it.
New development
Main objective of these ventures are to provide development to the small and medium sized
ventures.
Joint Venture
A commercial organisation that is acquired by two or more than two parties is called joint
venture. In this venture, all the parties start venture by pooling resources for achieving a
specific goal.
Public private partnership
In this venture, a government organisation makes a partnership with a large private
organisation for some specific project to complete.
Correlation of the different types of entrepreneurs to different types of entrepreneurial
ventures
Individual entrepreneurs are the best fit for start-up venture as the group of individuals
establishes the start-up venture. Private and public entrepreneurship is most related with the
public private partnership and the private entrepreneurship can be related to the joint
ventures, acquisition and franchise. Social entrepreneurship can be done in the start-up
venture and in the joint venture as well.
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Conclusion
From the above portion of the report, it can be concluded that all the entrepreneurships are
related to the different types of ventures. The suitable entrepreneurs with the specific ventures
have been described in the report.
4. Can entrepreneurship exist in a public sector? Discuss the range of entrepreneurial
activities, utilizing real-life examples, of successful entrepreneurship in the public
sector.
Entrepreneurs can exist in the public sector as per the typology and the different types and
ranges that provide profit to the company (Hayter et al., 2018). These can be assessed as per
the typology, which was prevalent in the entrepreneurial range and natures. The public sector
range of entrepreneurial activities, make the inclusion of measures that are adopted in the
context of providing authorities to the growth of the business. A public sector entrepreneur is
subjected to make the use of profits, which provide better opportunities, to the employees
working in the company. Hence, the entrepreneurship can be in operation in the public sector
for the organization.
The work of an entrepreneur is to design and strategize new ventures and deals and sell them
into public domains. The entrepreneurs possess a social mindset and are embedded with
accountabilities and responsibilities, which help them in their day-to-day activities. The
public sector entrepreneurs make the use of a range of activities such as providing operations
and other development activities for their growth. An example of a real life
entrepreneur is Elon Musk who is a technology expert, who has been helpful and affluent in
their business dealings. Therefore, this is the imperative nature of the public sector
entrepreneurs in the company.
5. Examine, with reference to real life examples, what is the scope of new
entrepreneurial ventures in delivering successful product innovation to the market.
The entrepreneurs play an imperative role in the provision of new product services and
innovation in the market. It emphasizes on the roles and accountabilities, which are practiced
by the companies that are in operation in the market. There are real life examples, which
support the business and wire new insights on the market. The successful products, which are
in operation for the entrepreneurs, give in to the market research as the companies approve
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them. Hence, the successful product and innovation, which are catered in the market, are
done through the integration of the rudiments of the elements that are imperative for
functioning of the company. The real life entrepreneurs are Peter Jones, a British
entrepreneur that takes great interest in the means of leisure, television and so on. In critical
examination of this entrepreneurial venture, there are successful products, which have been
ruling the market and affecting the business of the company (Campbell, 2019). His impact
on making the use of the successful product had a vital undertaking on his growth and
productivity as a business analyst. This shows and portrays that successful product innovation
can take with determination and self-will. Therefore, there are vital implications, which prove
that entrepreneurial ventures are imperative for the functioning of the company (Etriya et al.,
2018).
The other real life example, which can be taken into account, is that innovation acquires the
clarity and the determination of the businesses to function in a better manner. Entrepreneurial
ventures, takes into account the new product innovation, which adds to the growth of the
company. Entrepreneurs such as Andrew Rose who has made the use of their car insurance
license to bring in better opportunities to the private companies like Progressive,
Couyntrywide, and so on. It is imperative to make an understanding of the conceptual and
limited data that can bring in better roles to the growth of the company and a boost in its
profit. Therefore, innovation ahs an important role to play in the life of an entrepreneur, by
bringing in better roles and opportunities, that gives in to the profit and market growth to the
companies. Therefore, the profits are mandatory as it infuses into the entrepreneur the will to
deliver their work on time, which influences their product design.
Hence, it is imperative for the companies to make use of their scope and deliver their talents
as per the requirements of the company. That infuses the entrepreneur with the basic
requirements, which are vital for the businesses.
6. Critically examine, with reference to factual data, the development and growth of
entrepreneurial ventures in the UK.
In 2016, more than 660,000 companies have been established in UK. On the other hand,
608,000 companies have been developed in 2015 (ft.com, 2017). From these data, it can be
understood that in UK the entrepreneurial business is growing every year. Due to
entrepreneurial business, more than 1,000 jobs have been created in UK (gov.uk, 2019).
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For this reason, the individuals of UK are getting employment opportunity. Besides that, the
new ventures offer their employees to work as per their own style. As a result, the employees
have full freedom in development of the products and enhance their individual skills. The
Government of UK is encouraging people to be involved in entrepreneurship and focus on
introducing new services. After this, the changing requirements of customers can be
addressed effectively. The Government has introduced “Start Up Loans scheme” so that the
entrepreneurs of UK should not have to encounter any financial challenges (ft.com, 2017).
However, increasing corporate tax rate of the country is creating barrier for the entrepreneurs
to perform their business activities in an efficient manner.
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Conclusion
From this study, it is found that the business ventures need to deal with the risk factors
effectively so that success can be achieved. The entrepreneurs need to adopt new product
ideas to compete within the market. R&D department of the organisations have to be
involved in innovation of products to grab customers’ attention. The staffs also have to be
motivated by the entrepreneurs for their better performance and fulfil the objectives of the
organisation. Efficient business planning as well as product ideas would help the
entrepreneurs to run their business in an effective way and ensure business success.
Moreover, employment opportunity is also increasing with the help of entrepreneurship.
Local employees can get job and fulfil their needs for this reason.
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Task 2
Introduction
In this portion, the concept of SMEs will be evaluated along with multiple examples and their
role in terms of improving financial condition of national economy. Different level
contributions will be displayed in the below section. Contributions of the SMEs will be
showed in different regions and countries for better consideration of the project.
a. Define the concept of an SME, and evaluate the growth and financial contribution of
micro, small and medium private organisations to the UK Economy.
SMEs are the backbone of modern business industry and they are the highest contributors to
the economy. Relied upon the country, it is possible to categories depending on several
factors such as employee numbers, assets, annual turnover and others. In most of the
countries, SMEs make up the vast majority of businesses. Micro business organizations can
employ maximum 10 employees in their firm for completion of business activities, where
small and medium size businesses have more capacity of employing candidates in the firm to
enlarge their business functioning (Dada and Fogg, 2016). Developed countries like UK
know the significance of SMEs and these countries consider SMEs as their important asset in
order to maintain the balance in economy. In UK, at the start of 2018, there were 5.7million
small size businesses. These huge numbers of SMEs are the highest contributor towards
growth of UK economy. However, numerous companies are entering in market and many of
them are getting out from the industry due to less effective business performance.
Due to high market competition, the population of SMEs has been reduced by 0.5%
compared to last year. In UK, majority of the businesses almost 99.3% of the total business
industry is included in the private organization list that are contributing more than 47% of the
revenue of the total UK economy. These SMEs play a vital role in terms of speeding up the
productivity. SMEs are the highest job provides in UK economy. In a recent survey, it has
been found that over 16.4million jobs have already been created by SMEs in UK premises.
This figure is equal to almost 60% of the all the private sector industry in UK territory. This
improved employment rates and GDP rate is the sign of success, growth and prosperity of the
nation. SMEs have created gross job opportunity in the UK areas so that more numbers of
people got the opportunity to be employed in the firms. According to recent statistics and
reports, in the last year the annual combined turnover of SMEs was £2.0trillion that as more
than half of the entire private sector turnover (Harrison and Baldock, 2015). These SMEs
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