Entrepreneurship and Small Business Management: A Report

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

Entrepreneurship and Small Business Management

Table of Contents
Introduction...................................................................................................................... 3
Task 1.............................................................................................................................. 4
Task 2: Presentation (LO3 & LO4)...................................................................................9
Conclusion..................................................................................................................... 13
Reference.......................................................................................................................14
Appendix........................................................................................................................ 17

Introduction
In further report, the scope, development, and growth of entrepreneurial abilities in the
public and private sector will be discussed. The similarities and differences of the
sectors will also be discussed. The report will also provide the effect of small
businesses on the economy with the help of comparison with the medium and large
companies. In addition, a presentation of the role and scope of entrepreneurial abilities
have been provided in the report. The presentation will provide an analysis of the
characteristics, skills, motivation with reference to well known British entrepreneurs. The
presentation also provides a background how the entrepreneurship has helped
individuals positively and negatively.

Task 1
a) Critically examining the scope, development and growth of entrepreneurial
ventures (various kinds of businesses) in your borough. You can develop you
answer by considering various kinds of entrepreneurial ventures within the
private and public sector and examining their similarities and differences.
Introduction
In these report, there will be explanation of the scope, development and growth of
entrepreneurial ventures in reference to the businesses operating in the London
borough of Bromley (Bromley.gov.uk, 2019). The range of scope the businesses in the
borough operate and the ways they develop to grab future opportunities will be
demonstrated in the report. The further analysis will be done in understanding the scope
of SME’s in United Kingdom and their effect on social and economic factors in United
Kingdom with support of accurate statistics and facts.
The London Borough of Bromley is known as the largest borough in Greater London
which is accurately in 59 square miles, which majorly consists of Metropolitan Green
Belt. It has some big establishments consisting of both small businesses, public and
private companies along with insurance and travel and tourism companies, it is
therefore considered as the most rural borough of United Kingdom (London City Hall,
2019). The place is named after the principle town Bromley, governed by the local
authority Bromley London Borough council. The main businesses which are flourishing
in Bromley are Allied Carpets, Bromcom, Churchill insurance, Cosmos Holidays and
Russell & Bromley.
Apart from being the largest borough in London, it has become one of the leading
economic places than many of the cities in London. In the recent years, there has been
13000 business developed in the borough, and there is much scope, development for
the businesses as the businesses set up in Bromley have higher than average survival
possibilities. As it the most demanded borough in London, the business set up in that
place has least possibility in going through a breakdown. The reason for the prosperity

of the businesses in this borough is because of its strong labour market, increased
employability, good transportation system, low crime rates and availability of
educational institutions and housing facilities. The borough has become a popular place
for retailing and therefore it has become the place for 13 metropolitan town centres.
Bromcom: This public sector in the London borough of Bromley which provides
educational institutes and organisations with a Management Information System to track
the performance of the students.
The United Kingdom stands as the 5th largest company in the world in terms of GDP.
This has allowed the company to achieve success in the profits earned by the company.
The technological advancements in United Kingdom have also helped the company to
become one of the seven leading suppliers of the educational management information
systems in UK according to Becta. In addition, the educational systems of the country
demand high technologies for the assessment of the student performance; this demand
has led to many schools hiring the Bromcom to achieve a technological framework for
their organisation.
Cosmos Holidays: Established in 1961, this private company has been a popular tour
operator on the United Kingdom. Headquartered in Bromley, this is a subsidiary
company of Cosmos Tours Ltd.
The target of the company was to provide affordable holiday packages to the citizens of
the country. This company started with 12 members, but with massive rise of tourism in
the country, they have been recognized as a leading company in UK (Komppula, 2014).
The company received TTG Travel awards, British Travel Awards, and The Globe
Travel Awards. The company
The similarities of these organisations: Both the companies gain profit from the
economic and financial conditions of the country. Both the private and public
entrepreneurships are dependent on the customers for their growth. These companies
in both the sectors are generally SME companies (Leyden, 2016).

The differences: An individual who is solely responsible for the functioning of the
company generally controls the private entrepreneurship. The profits and marketing of
the company is solely subjected to the managers of the company. The main aim of
Cosmos Holidays is to gain profit and expand their business all over the country
(Hayter, 2015).
On the other hand, the public entrepreneurships are responsible for providing services
to the people of the country. The government funds the company at some stage. The
main aim of Bromcom is to evolve the educational system of the country by providing
better framework. Therefore, the services of the company are subjected towards the
citizens and the public sectors of the country.
b) Critically examining how small businesses have impacted on the economy
making reference to relevant data and statistics. You must try to illustrate the
importance of small businesses to economy and the growth of the social
economy using the data and statistics. This can be achieved by drawing
comparison to medium and large businesses.
As shown in statistics, the Britain people are investing more on start ups and
establishing them in the United Kingdom. In the year 2016, there are more than 5.5
million private sectors which have been established in United Kingdom. There are
mainly small and medium size businesses in the United Kingdom which have
contributed in the increase in the economy. The small and medium sized businesses
have minimum number of employees, which are 250 to 300 employees (Knudsen,
2016). According to European Union Standards, the small organisation faces the
problem of funding in the beginning, which has also been solved by the possibility of
taking start-up loans and grants. The small business organisations are supported by
Governments which have helped them in evaluating more and contributing to the
economy.
In the recent studies of small businesses which accounts 99.3% of all the private
sectors in the United Kingdom. In the start of the year 2018, there were 99.9%
industries in the United Kingdom which were small businesses and private sectors. The

increase in the small businesses has influenced in increase of employment, which also
includes 60% of private sectors and the employment number is 16.3 million. Small
business organisation have developed in such an extent that it gave an annual turnover
of £2.0 trillion, which is coming from private sectors annually (Statista, 2019).
The importance of the small business organisations has a considerable effect on the
economy of the United Kingdom. They offer employment to many less skilled
employees and decrease the rate of employment; they have even served in increasing
in the lifestyle of the people (Berisha and Shiroka Pula, 2015). In the end there are
more than 25-27 million small businesses which have contributes in providing 60 % to
80% of employment.
Figure 1: The contribution of small businesses on the UK economy
(Source: Fsb.org.uk, 2019)
The small business organisations have constituted turnover almost half of the total
turnover nearing to 47%, among which the private sectors are the maximum
organisations. It has reached an annual turnover £1.8 trillion (Greenwood, 2017).

Figure 2: The annual turnover contributed by small business organisation
(Source: Market-inspector.co.uk, 2019)
In case of developing the social standards the small business has contributed much as
it has instigated employment which have automatically lead to development in social
standards. SME contributes in creation of jobs, creating competition with large
companies, boosting up business in export and imports. It even helps in alleviating
poverty in most of the developing countries. The rapid urbanisation and industrialisation,
consumption have increased , in that place the increase in the small to medium
organisations have contributed to national income, and have provided in the social
standard increment , especially in the areas where there are large companies providing
low income.
The difference between the small, medium and large companies will help in
understanding the contribution. The difference is as follows:
Small businesses Medium businesses Large companies
It is generally owned by
sole proprietors
The medium organisations
also is set by sole owners
The large business are
generally governed by
public investors or
government oriented

organisations
The decision making are
generally done by owner
and not directed by any
government
The decision making are
done by owner, Chief
Executive Officer.
The decisions are
distributed between
personnel’s in Government.
Informal process easy for
employees to communicate
They follow formal
processes
Formal processes
It has small circle of
customers
It has limited customer
base
It has diverse customers as
it is scattered through many
global markets
It provides employment to
less skilled to medium
skilled employees
It also provides
employment and helping in
development of the
developing countries
It only hires skilled and
experts
Table 1: The difference between the small, medium and large businesses
(Source: Created by learner)
Therefore, through this report it has been demonstrated that small, medium and large
enterprises have contributed in building up the economy of the United Kingdom. The
small enterprises have especially contributed in making raise in economic standards,
employment and helped in raising the salaries of employees. The employees have
profited from the small business organisations and have developed considerably in
maintaining their employability. The SME have made huge differences in making the
economy grow and decreasing the poverty line.
SME have very important role in developing the national economy, creating employment
and adding more innovative heads to the organisation. They create a central position for
achieving sustainability and environmental standards. The contribution that have been
made in making differences from various firms, It helps in creating global markets,
solving communication barriers and making more opportunities in international markets.
The increased digitisation has created new opportunities for small business
organisations, which have helped them in contributing considerably in developing in an

economy. The development in the economy has also created many opportunities for the
unemployed peoples to grab opportunities and increase their standard of living
(Oecd.org, 2019).

Conclusion
In this section, it has been demonstrated about the various scope, development, range
of businesses that small business entrepreneurship. The understanding of the various
scopes, difference between the small, medium and large organisation has been
demonstrated. The differences have made it clear that small business contribute much
in the business organisation, where large organisation provide employability only on the
basis of skills and expertise, small organisations have given chance to the less skilled
employees.

Task 2: Presentation (LO3 & LO4)
Introduction
In this part of the study there will be a description of various characteristic traits, skills
and motivational drivers that drive the entrepreneurs to build up their enterprises. The
study will discuss about two well known entrepreneurs, and describe their
characteristics, skills which they have implemented in their business enterprises to be
influential entrepreneurs. The entrepreneurs that have been taken for this report is Jeff
Bezos and Richard Branson, their background and experience will also be analysed to
understand its effect on their entrepreneurial careers
I. Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurs providing examples of well-known British entrepreneurs.
The entrepreneurs must have some in-build characteristic traits which motivate or
influence them to achieve success in their entrepreneurial ventures. The characteristic
traits that the entrepreneur must have to portray as a successful entrepreneur are
passion, resilience, self confidence, risk taking and flexibility any kind of situation
(Forbes.com, 2019). Another characteristic trait that an entrepreneur has is vision to
develop its business venture in certain direction to acquire success. In the further
explanation it will be enunciated that both the mentioned entrepreneurs Richard
Branson and Jeff Bezos had all this traits which have led them to a successful road of
business. Richard Branson has always supported the rule breaking approach which has
motivated thousands of his employees to influence their creative minds, which can add
value to his business ventures. In case of Jeff Bezos , he has visionary skills, as he set
his online bookstore, which is a model for e-commerce businesses in the recent years.
The characteristics traits, skills and motivational drivers will help in understanding the
journey for them being the most motivational leaders. The background of the leaders
influences their work style and their way of setting their business. Richard Branson and
Jeff Bezos both are inspirational and have made remarkable changes in the society by
their business ventures (Mishra, 2016). Richard Branson is one of the motivational