Entrepreneurship and Small Business Management Assignment

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION......................................................................................................................................................... 3
ACTIVITY 1 - BOOKLET........................................................................................................................................... 4
LO1................................................................................................................................................................................... 4
LO2................................................................................................................................................................................... 8
ACTIVITY 2 - REPORT........................................................................................................................................... 14
LO3................................................................................................................................................................................ 14
LO4................................................................................................................................................................................ 18
CONCLUSION............................................................................................................................................................. 20
REFERENCES............................................................................................................................................................ 21
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INTRODUCTION
Entrepreneurship is the process of manufacturing thoughts and outlines them in order to
launch a new business. The person responsible for this activity is referred to as an
entrepreneur. Entrepreneurship often refers to the capacity and willingness to introduce,
shape and manages business organization along with its risks. This assignment report
presents the significance of entrepreneurship and small, medium business enterprise as to
how entrepreneur with their skills drive business success as well as how small medium
business important for the country’s growth (Dilli et al., 2018). The assignment report
presents the case of 2 entrepreneurs J.K. Rowling and Bill Gates which shows how an
entrepreneur is different from managers and how their ideas and thoughts make them
effective and successful entrepreneurs.
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ACTIVITY 1 - BOOKLET
LO1
This report presents the booklet for the “Make it Work” that can be given to clients that
helps them to understand the knowledge of various business ventures and how they are
different from each other.
Entrepreneur
An entrepreneur is the person that outlines the business idea, implements the idea and
manages business activity in order to make it successful.
Intrapreneur
An intrapreneur is a person that is responsible for creating strategies and planning of
developing new products or services. Intrapreneur doesn’t take risks but helps business in
minimizing the risk.
TYPES OF ENTREPRENEURIAL VENTURES
Public sector entrepreneurship
This type of ventures often manages by the government of the country and in some cases,
the person who holds the maximum share of the public company holds the right to
manages it. The main aim for public sector entrepreneurship is to provide goods and
services to the customers at an affordable price (Fuentelsaz et al., 2015). For example,
London Borough, Vodafone Company etc.
Private sector entrepreneurship
Private entrepreneurship organizations are open and managed by private group or
individuals that aims to gain profit. The ultimate aim of private business industries is to
provide best quality products and services to customers and maximize business profit. For
example, the Virgin group
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Social entrepreneurship
Social enterprise conducts its activity with the aim of provides benefits to the society and
community. Social enterprises can be owned and managed by individuals or the
government. For example, British social activist the UK
Growth and lifestyle firms
Growth firm is those organizations that generate more profit than usual and gaining
success rapidly. These types of firms are growing at a very good pace compare to normal
firms. On the other hand lifestyle firms aims to alter market trend with their thoughts and
ideas. Their aim is not to maximize profit but change the market lifestyle to a better one
(Khuong and An, 2016).
Typology of Entrepreneurship
There are many different types of typologies of entrepreneurship are available for the
entrepreneurs. Every typology has different aims but ultimately increase efficiency,
productivity and performance of the business organization. The typology of
entrepreneurship, inventor, personal achiever, promoter and manager.
Figure 1: Typology of Entrepreneurship
Source: Khuong and An, 2016
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DIFFERENCE AND SIMILARITIES BETWEEN ENTREPRENEURIAL VENTURES
Following are the similarities and differences between different entrepreneurial ventures:
TYPES OF
ENTREPRENEURSHIP
SIMILARITIES DIFFERENCES
Public entrepreneurship Public enterprises are open
to change according to
situations just like private
and social enterprises in
order to provide good
customer satisfaction.
A public venture aims to
provide products and
services at affordable prices.
The public company
provides support to the
community.
Private entrepreneurship Private ventures seek
opportunities more often
than not to provide better
customer experience.
A private venture aims to
earn and maximize the profit
of the organization. They
provide the best quality
service in return for a high
price.
Social entrepreneurs Social enterprises are
people-oriented as they
work for the welfare of
society.
The social ventures work for
the welfare of the
community and society.
Lifestyle ventures Lifestyle ventures are a type
of private ventures that aims
to provide customers
satisfaction by altering the
market trend.
The lifestyle ventures aim to
change or alter market
trends into a better one.
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VARIOUS RANGES OF ENTREPRENEURIAL ORGANIZATIONS TO SHOW AN
UNDERSTANDING OF ENTREPRENEURSHIP IN PUBLIC AND CORPORATE SECTOR
There are many entrepreneurial organizations that fall under public and corporate sector
such as small, medium and large all three can be public and corporate both. The corporate
sector is a type of private sectors business organizations (Kuratko, 2016). The main aim
and objective of the private sector are to maximize the profit of the business for which they
provide the best quality of products and services to customers compare to public ventures.
On the other hand, public sectors are more often than not owned and manage by the
government of the country that aims to provide support to the people of the country. Public
organizations provide products and services to customers at an affordable price. The price
of the products and services are less compared to private organizations.
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LO2
IMPACT OF MICRO AND SMALL BUSINESS VENTURES ON THE ECONOMY OF UK
Micro and small business ventures significantly impact the national economy of the UK
country as in both the capital require very less as well as it manages with less number of
people compare to medium and large organizations. people more often than not prefers to
open micro and small business venture due to the less capital and fewer people fact and
government also encourages to open small and micro business as it helps national
economy to develop further (Barringer, 2015).
Figure 2: Share of Businesses in the UK
Source: Barringer, 2015
As the above figure shows it can be seen as the country’s business market share is
effectively captured by the micro and small business ventures as it has the percentage of
approx. 99.3% compared to medium and large business organizations which have .6%
and .1% of the business market share of UK respectively.
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Figure 3: People Employed in the UK
Source: Leutner et al., 2014
Both the above figure shows that the micro and small business effectively provides job
opportunities to the people of the UK country as opening as business self helps them to be
self-employed and earn. Whereas micro and small business also provides more job
opportunities compared to medium and large business as with respect to above figures it
can be seen that micro and small provides around 48% of employment whereas medium
and large ventures provide 12% and 40% respectively this significantly helps in reducing
the poverty issue within the UK country as providing job opportunities helps in order to
control the poverty within the UK and contribute to the economic social economy (Leutner
et al., 2014).
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SIGNIFICANCE OF SMALL BUSINESS AND STARTUPS TO THE DEVELOPMENT OF THE
SOCIAL ECONOMY
Small business directly made an impact on the social economy and mostly in a positive
were they due to the small business social economy of the UK country is significantly
developed (Sainidis and Robson, 2016). Yuliana Topazly is a social entrepreneur of the UK
that operates My OutSpace Business Centre in Croydon, she provides support and works
with the women who have babies and she gets to know and delighted by the fact that
women are more interested and potential of the work compare to what she expects.
In the UK more approx. 96% of the business ventures are a small business and the
employment rate in the UK is over 52%. The recession rate is also influenced by the SME’s
as it provides 3.5 million jobs that held the percentage of 12% of total jobs.
Figure 4: Impact of SME on the UK's GDP
Source: Rizos et al., 2016
As the above figure shows that SME’s significantly impact the social economy of the UK
country whereas 96% of the businesses are small businesses that provide many job
opportunities for the job seeker and increase the employment for the peoples.
Through the research, it is found out that there are 9% of businesses are social enterprises
in which 7% of businesses are employers (Rizos et al., 2016). To elaborate can be expected
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that there are 471000 numbers of businesses are social enterprises in which 99000 works
as a social entrepreneur which encourage opening a startup in order to reduce the
unemployment rate and develop the social economy of the country.
EVALUATE THE IMPACT OF SMALL, MEDIUM AND LARGE VENTURES ON THE ECONOMY
OF UK
The small, medium and large ventures significantly contribute to the economy of the
country in all the areas such as provide job opportunities, help the country in order to
control the poverty, increase the employment rate etc. combined all three entrepreneurial
ventures they significantly benefit the economy of the country.
Figure 5: Impact of SME's in the UK Economy
Source: Ayandibu and Houghton, 2017
From the all business ventures small and medium ventures impact the national economy
significantly as it has over 4.9 million business ventures in the UK which cover the business
size in UK approx. 99.9% of total businesses which left only .1% for the large businesses.
With the effect of Brexit, the ratio somehow affected which ultimately impact the national
economy as Brexit has both positive and negative impact on the UK country.
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Figure 6: Job Opportunities Created by SME’s and Large Ventures
Source: Aparicio et al., 2016
Figure 7: Impact of Small, Medium and Large ventures on UK Economy
Source: Ayandibu and Houghton, 2017
SME’s along with large business organizations significantly provides several job
opportunities as the above figures show that in the UK all three business ventures create
significant job opportunities that help in order to control poverty of the country (Aparicio
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