Entrepreneurship and Small Business: A Comprehensive Analysis

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ENTREPRENURSHIP AND SMALL BUSINESS
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ENTREPRENURSHIP AND SMALL BUSINESS
Table of Contents
Introduction......................................................................................................................................3
LO1: Exploration and illustration of the different venture types present in the Entrepreneurship. 4
Micro Ventures............................................................................................................................4
LO2: Assessment of the impact of Entrepreneurship in small business..........................................8
The influence of Small businesses and micro business on the economy of UK.........................8
Importance and value start-ups and small businesses................................................................10
Dissimilarities various small, medium and large businesses create on the economy................10
Influence of Small Businesses on the Economy in Different Levels........................................11
LO3: Mindset and various traits of entrepreneurs.........................................................................13
LO4: Examination of the different environment that foster or hinder entrepreneurship...............16
Background and Experience Can Hamper as well as Cultivate Entrepreneurship with suitable
examples....................................................................................................................................16
Link between Entrepreneurial Characteristics, Influence of Personal Background and
Experience to Successful Entrepreneurs....................................................................................16
Background and Experience Persuading the Entrepreneurs......................................................17
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
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Introduction
The main ides of entrepreneurship is to develop innovative ideas to effectively mitigate the
problems that are occurring in society in the form of a business. According to the present
situation, new innovative ideas are required to generate employment and solve the complex
problems of society. The individual or group of individual who has the capacity to perform out
of the box thinking is known as entrepreneurs. One of the major important components of the
entrepreneurship is that it helps to strengthen the local economy of any country and have an
overall impact on gross financial development. In this study mainly the different types of
entrepreneurial ventured will be explained and analysed in an efficient way. Moreover, the
analysis of the influence of small and medium entrepreneurship on the economy of the UK will
BREXIT and the impact of local small business on the local employment and social issues will
be discussed. Furthermore, the major entrepreneurial mindset and the characteristic to become an
effective entrepreneur will be discussed in the study. The different skills and traits of the
entrepreneur will be analyzed in the study. The environment in which the entrepreneurship may
be enhanced or challenges that are present in entrepreneurship will be discussed in the study. At
the end, a conclusion highlighting the main points will be done.
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LO1: Exploration and illustration of the different venture types present in the
Entrepreneurship
It is seen that there are several types of entrepreneurship ventures present
Micro Ventures
The entrepreneurial ventures are a very important part of the local economy. In this world of
globalisation, the promotion of innovative ideas may be done in an effective manner. The micro
ventures constitute very small scale business with employees less than 30 (Mody et al., 2017).
This type of tiny business may be associated with retail manufacturing sector with small
Capitals. Since they have small capitals they mainly depend upon the local resource so
generating local employees by almost15%. Online ventures are also available in the present
condition
Joint or extensible entrepreneurial ventures
The concept of joint ventures or extensible ventures includes the innovative development in
burins that may help the business to survive in this globalised environment. The joint ventures
mainly depend on two or more small organisations (Elo, 2016).It helps the small organisations to
arrange the required capital in the initial years of the entrepreneurship. Moreover in the
extensible ventures, the demand for high skilled labor is also met in an efficient way. For
example, the joint ventures include the venture between tow organisation suppose one has a less
skilled human resource and another has less capital so they help each other to fulfill their lacuna.
In this organisation almost 100 employees are more than those are present. In medium joint
ventures to the venture, the capital process is used to enhance the business process of the
organisation.
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Major Giant venture projects
The major entrepreneurial ventures are those ventures which have fixed growth in their capital
and profit amount. The entrepreneurial Ventures are those that implement new innovative
technologies in practicality in an efficient way (Schaltegger, 2016). The major big
entrepreneurial organisation has lots of human resource strength of at least more than 500. It is
observed in most of the giant ventures there is the presence of different units like manufacturing,
sales, human resource, operation, and monitoring. In gigantic ventures, there is mass production
and the profit level is huge. Getting support from the large ventures different micro ventures may
survive in an effective way.
Communal or social ventures
The communal ventures are regarded as the ventures that are mainly established to specifically
solve the problems and the needs of the community. The product development is totally based on
the needs of the local people so that the needs of the local may be fulfilled in a proper manner.
For example, Richard Branson is an entrepreneur who has established the Virgin group to fulfill
the needs of telecommunication and the communication of the local people. Slowly the company
grew into a huge venture and spread on a global scale (Randolph, Li, and Daspit, 2017). Most of
the ventures in the UK is based on communal ventures as the most important thing is to meet the
demands of the consumers. The manufacturing and retail service may be based on the needs of
consumers.
The comparison among the entrepreneurial ventures
The most important entrepreneurial ventures have some similarities among themselves. One of
the most important common factors is the innovation and the out of the box thinking that is
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required. Risk taking and vision is another important point of most of the ventures (Kim et al.,
2018). Venture capitalism is the major process to enhance the capital for the business operation
for entrepreneurs. However, in the case of micro and giant entrepreneurship ventures, there are
differences in the capitals and profit margin for the organisation. The competition is higher in the
micro-entrepreneurship compared to the major ventures.
Difference between the ventures is mentioned below:
Micro venture Venture extensible Big ventures Social venture
Micro venture has
limited capital and
profit
Profit is directly
related to the
innovation
Profit rate has steady
growth and it is
mainly dependant on
production
Profit is not the focus
the main focus is to
solve a social problem
Mainly the funding
process is done by
venture capitals
These types have
funding from
investors who wants
high returns (Kerr,
Kerr, and Xu, 2018)
Mainly private and
funding sources are
there
Mainly funded by the
government bodies
and private
philanthropic
institutions
Mainly based on
local areas
This organisations
mainly operate in
domestic
The giant
organisation work in
the international
market
This organisation
work in mostly
domestics sector and
sometimes in the
international market
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The different entrepreneurs in the public, corporate and social sector
Public entrepreneurship is one of the major types that are prevalent in the public sector. The
focus is to specify the needs of the public service and work according to the requirements of the
public sector. National Health care system was started by small funding and now it has become
the major backbone of the country by providing effective service.
Social entrepreneurship: social entrepreneurship is developed to effectively solve the problems
of society. Like save the children in the UK is an organisation that performs social work by
protecting children rights in not only Europe but in other countries as well.
Corporate ventures
Corporate ventures are mainly done to meet the needs of the consumers. They are performance-
driven and focus on expansion and effective profit of the organisation. However, the local and
national economy is strengthened by the corporate ventures, for example, the Virgin group of
Richard Branson is the example of a corporate venture (Klotz and Neubaum,2016).
Scope and growth
The scope of the entrepreneurship in the UK is very good as the government wants to boost the
efforts of the entrepreneur to strengthen the local economy of the country. Microfinance is
increasing in an efficient way. The capital ventures are one of the major processes that help in
supplying the funding for the entrepreneurial organisation Since the market is growing it is
attracting the investors to invest in the small business for return of the high amount of money for
their investment. New technologies are being incorporated to increase efficiency.
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LO2: Assessment of the impact of Entrepreneurship in small business
The influence of Small businesses and micro business on the economy of UK
As opined by Storey, (2016), it can be seen that the micro as well as the small businesses has a
great impact on the economy annual turnover of any of United Kingdom. It has been derived that
approximately 5.8 million companies existing in the markets of UK, 99.8% are either micro or
small businesses. These companies employ over 16.4 million people and have turnover of 2.0
trillion Euros as recorded in 2018. This is equal to almost 52% of the turnover in private sectors.
Figure 1: Contribution of SME’s in the UK Economy
(Source: Cowling et al., 2015)
Since the initiation of various small and micro business venture in UK, a rapid increase in
growth of these businesses have been recorded. The major share of the market is under their
control and is occupied as well as dominated by them. A 95.6% business has been recorded in
UK that is micro but accounts a huge 81.3% employment rate in the whole market of UK. From
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the research work of Hillary, (2017), it can be derived that micro businesses has faced low rates
of turnovers compared to Small or Medium sized enterprises. However, 673 billion pounds that
is 18% of the total recorded economic turnover has been contributed by them in the private
sector. In contrary to this, it has also been derived the growth in the employment rate related to
micro and SME businesses in the market of UK is recorded as 15.4% and 15.1% respectively.
The recorded turnover ate in employment is 13.8% and 15.3%.
Figure 2: Employment statistics of SME’s in UK, 2018
(Source: Cusmano et al., 2018)
Therefore, from the data provided, analysed and evaluated above it can be seen that both SME’s
as well as micro businesses combined together play an important role in the markets as well as
the economy of UK. They constantly contribute to the growth of the GDP in the country and also
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helps in employing a lot of citizens in the country. The growth of the SME’s and micro
businesses has steady in spite of the tough competition from the large companies. A future
growth has been expected in the number of SME’s and micro businesses.
Importance and value start-ups and small businesses
In the words of Ansoff et al., (2018), the concept of the social economy has been derived. This is
directed towards the various types of companies, enterprises and businesses in the market and
highlights the fact that they are connected and associated to each other mutually in some way or
the other. Talking about the social economy of UK, it has been recorded 99.8% business are
small businesses out of the 5.8 million existing businesses in UK market. They play are very
prominent as well as important role in the economy of UK. They ensure a constant and
consistent growth of the economy of United Kingdom. These ventures in UK also creates a
platform for companies, businesses and enterprise to connect together and form a chain of
network helping in the growth of economy and the increase in the rate of GDP.
Dissimilarities various small, medium and large businesses create on the economy
As opined by Wynarczyk et al., (2016), there are various different roles of small, medium as well
as large businesses that they place in the markets of UK. It has also been seen that individually
they create a significant effect on the country’s economy. The differences are –
 The large ventures and businesses employ a large number of professional and qualified
employees from the country. In the context of small and medium sized businesses, the
rate of recruitment is higher and covers 81.3% of the total employment in the markets of
UK. They contribute a lot in the mitigation of the unemployment issue existing in the
country.
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 Large businesses and companies have the affordability of taking care of the needs and
demands of customers but the small and medium sized businesses work towards deriving
a solution for the local people and businesses that helps them in creating a brand name in
the market.
 Large businesses have the capability of generating high revenues and profits within the
market of UK that contributes in the economy of the country. However, the rate of
turnovers for SME is 52% of the total generated revenue on the private sector and
contributes to the growth of the economy.
Influence of Small Businesses on the Economy in Different Levels
The small businesses create a great impact and influence the economy of the country in different
levels. These can be divided into four levels. They are –
 Local – Small businesses contribute a lot in local level. It helps them in bringing in
innovation, sustainability along with growth in the society and also employs a large
number of people in that area.
 Regional – Small businesses also contributes in regional levels they help them improve
the competitiveness within the various existing small business that gives room for more
innovations and creates new employment employing more people.
 National – In National level, small business have a huge contribution. They have a huge
contribution in the growth of economy in UK. This is done by turnovers annually and
generation of revenues and profits.
 International – In International level, small businesses play an important role. They
contribute in boosting the growth of the economy and create opportunities of job. They
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also develop innovative products and services. This in turn creates a competitive
advantage for the country in the global market.
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