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...............................................................................................................................................4
Task 1...............................................................................................................................................4
Task 2.............................................................................................................................................13
Task 3.............................................................................................................................................21
Conclusion.....................................................................................................................................28
Reference List................................................................................................................................29
Appendix........................................................................................................................................33
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Introduction
The following report will provide an efficient knowledge about the concepts of entrepreneurship.
The ventures and the typologies of entrepreneurships will also be discussed. The report will also
provide range of entrepreneurial activities and the growth of these businesses in The UK.
Moreover in this report, the concept of the SMEs will discussed along with its comparison in two
different regions of UK, two industries, and two different countries. In addition, the report will
mention about the different needs and character traits of the entrepreneurs with the help of
Maslow theory and Big-5 data model. Moreover, the influence of different factors on the
entrepreneurs will be mentioned.
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Task 1
Introduction
This section will discuss about the concept of entrepreneurship and its various ventures. The
relation of entrepreneurial typology with the ventures will also be provided. In addition, the
scope of the entrepreneurial ventures and their effect on the UK economy will also be discussed.
Define what the concept of an entrepreneur is, and provide some examples of different
entrepreneurs in business.
Entrepreneurship is same as the commotion of establishing a business, considering the risks and
threats in terms of economic and social factors, which can further profit the business.
Entrepreneurship includes innovation of new and unique ideas for developing political, social,
economical principles, in which the formation of the organisation is deemed obligatory (Acs,
2014). Entrepreneurship is basically the procedure to design, launch, and run a business, which is
most of the time a small business. Moreover, this can be referred as the entity that can identify
and work on the opportunities and translate the technologies into production. The entrepreneur is
the individual that handles this business (Baum, 2016). For an entrepreneurship venture, the
entrepreneur can be termed as the source of innovative ideas, production, services, and the
products of the business. The role of the entrepreneur involves huge risk and is solely responsible
for the business operations and financial conditions.
Few examples of entrepreneurs in business are Edwina Dunn & Clive Humby, and Philip Green.
Edwina Dunn & Clive Humby created their IT Start-up Company by the name Dunnhumby in
1989. In 1994, Tesco plc approached them because they were impressed by the approach of the
entrepreneurship towards electronic clubcards, the feature that is now known as Tesco Clubcard.
On the other hand, Philip Green was a dropout from school and started his business with a small
amount of 20,000. After 6 years, he went on to become the chairperson of Arcadia Groups.
Identify the types of entrepreneurial ventures and investigate the similarities and
differences between entrepreneurial ventures.
There are generally three different types of entrepreneurship ventures:
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 Small business entrepreneurship Scalable Start-up entrepreneurship Large Company entrepreneurship Social entrepreneurship
Small business Scalable Start-up Large Company Social
 These are
generally the
non
governmental
bodies
 The profits are
minimum
 The sole target
is to improve
the living of
the
entrepreneurs
 The funding
do not attract
venture
capitals and
mainly funded
by the family
and friends
 This can be
groceries,
carpenters,
consultants,
etc.
 This type of
ventures,
individuals
think that their
approach can
change and
modify the
world.
 The funding is
done through
the venture
capitalists and
the best
suitable
employees are
selected.
 This type of
ventures
includes high
challenge in
generating
capitals and
outsize
returns.
 These ventures
are Facebook,
 This type of
ventures target
at the
formation of
the new
products and
sustain
innovation.
 The main
target is to
satisfy the
technological
and changing
demands of
the customer.
 Theses
companies
function by
acquiring the
small
innovative
ventures
 Some
examples can
be Google,
 The
production and
the services
are the
responsibilities
of the owner
 The target is to
improve the
conditions of
the
environment
and
individuals
 Has no target
to obtain profit
 Can be hybrid
or non profit
ventures
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Online
shopping sites,
etc.
Samsung, etc.
Table 1: Difference between the different types of entrepreneurship ventures
(Source: Created by the learner)
Similarities between the different types of ventures:
Depends on new innovative ideas: All the four types of the ventures require innovative new
ideas and approaches, which will help them to mark a difference from all the other businesses in
the market
Includes high risks: All the entrepreneurial ventures include risk to large extent regarding the
financial condition of the venture. In addition, to create a proper image and attract the consumers
in the market is a big challenge (Barringer, 2015)
Involvement of open minded and innovative individuals: Most of time, these ventures include
individuals that can think out of the box and their innovation skills are better than the general
people in comparison are. This also increases the innovation quality in the products of the
company.
High quality and innovative products: The products are often different from the products of
general companies in the market. They can be easily distinguishable (Hechavarría, 2015).
More chance of achieving success: Due to the high quality and innovative products, there is
high chance in the success of the company with efficient management.
Explain the concept of entrepreneurship typology, and correlate the different types of
entrepreneurs to different types of entrepreneurial ventures. Illustrate your answer with
examples.
Entrepreneurship is an entity that includes innovative and creative activities as a part of the
business organisation. Generally, this identifies the opportunities in the market environment and
acts efficiently on them to achieve success and fame. Based on the entrepreneurship typologies,
there can be three types of entrepreneurships in general:
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Individual Entrepreneurship: This is the creation of a small business, which consists of a
limited number of employees. The profit and loss in the company is solely the responsibility of
the entrepreneur. There are two types of individual entrepreneurships, which are personal and
joint entrepreneurships (Drucker, 2014). While only one individual operates the personal
entrepreneurships independently, a group of individuals based on the company shares that they
are entitled to operates the joint entrepreneurship. This are commonly directed towards the start-
ups (Fuentelsaz, 2015_.
Corporate Entrepreneurship: This is the effort of a specific corporation or business to expand
their fields of business and trade. This is the primary initiative of the corporation to develop and
manufacture new products. An existing company for innovation and growth in the sales of their
products uses this entrepreneurship technique (Venkataraman, 2019). The examples can be
Facebook, Flipkart, other online shopping websites, etc.
Public-sector Entrepreneurship: This entrepreneurship are organised by the government, which
aims at expanding and improving the products that are delivered to the citizens of a specific
territory. These entrepreneurships have three dimensions that are economic regulations, civil-
political service providers, and commercial business participation. This can be also termed as the
government entrepreneurship and often lead to joint ventures.
An entrepreneurship venture may differ based on the market environment and the business
purpose. The following section discusses about the different types of ventures with context to the
entrepreneurship typology:
Start-up: These refer to the small size business organisations that consist of a minimum number
of workers and are generally operated by a single owner. These young business ventures are
subject to higher initial economical and structural risks. Hence, this type of entrepreneurial
approaches is common in the individual entrepreneurships.
Acquisitions: In this case, the entrepreneur does not start a new business, instead acquires, or
overtakes an existing entrepreneurial business. This technique requires huge consumption of
money, but the administration of the business is easy as the operation is done on an organisation
that already has a statistical growth and a fixed loyal audience of customers. These are less risky
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form the start-ups. Therefore, the corporate and the individual type of enterprises can use these
techniques.
New development: This generally refers to the activities of the Research and Development
(R&D). These activities can be a part of the new or the already existing businesses. Both
Corporate and Public type of enterprises can use this technique.
Franchise: The branded companies to distribute, trade, advertise, and sell their products all over
the world use this technique. This is an expensive process but very beneficial to the companies.
Therefore, the corporate entrepreneurs to initiate or expand their businesses can use this method.
Joint venture: This is the collaboration of more than one business organisations. The risks and
the costs are divided among the partners. However, this type of ventures is subjected to conflicts
due to disagreements and other issues among the partners of the venture. This might cause
problems in the long run of the venture. This is suitable for the Public and the Corporate
Entrepreneurs.
Public private partnership: This is formed by the collaboration of the private and the public
bodies. The effectiveness and the approaches of both sectors are mixed in this venture. This can
be beneficial for the Public and Corporate Entrepreneurs.
Can entrepreneurship exist in a public sector? Discuss the range of entrepreneurial
activities, utilising real-life examples, of successful entrepreneurship in the public sector.
Yes, entrepreneurship can exist in a public sector.
Avon and Wiltshire Mental Health Partnership is a public entrepreneurship venture of the United
Kingdom government. The main target of the government was to provide significant and proper
mental health services to the citizens of the Bath and Northeast Somerset, North Somerset,
Wiltshire, Swindon, and Bristol. The aim of the trust is to provide help and services to the
individuals with mental health needs, drug or alcohol dependency, and different disabilities
(Urbano, 2016).
The range of activities of this public entrepreneurship in the public sector:
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Developing government capacity for public innovation: The owners in the Avon and Wiltshire
Mental Health Trust require playing a specific significant role in the improvement of the country,
where the situation is corrupted and underdeveloped. In an advanced welfare of the states, the
role of the trust will be important for the continuation of the unlocking the potential of the people
of the country through their public services.
Building appropriate scenario for collaboration: The performance of the trust around the sectors
and departments of the country is not a natural function of the government or the public
representatives due to deficiency in infrastructure and benefits. The entrepreneurs can help the
government in this situation. However, this will require a proper preparation of teams and the
organisation as a whole for efficient collaboration. Inability to do this will lead to absence of
innovation in their organisation.
Developing new resources: An important activity of the public entrepreneur is to develop and
produce new resources. The aim is to identify the new methods of assisting the public services.
These activities include using proper digital technologies, improving the techniques of
medications, improving the standards of rehabilitation, and introductions of new medicines. The
prime target is to benefit the citizens of the country.
Examine, with reference to real life examples, what is the scope of new entrepreneurial
ventures in delivering successful product innovation to the market.
The new Entrepreneurs in the market provide new products and materials can produce a huge
impact on the business market that they are operating in. The future advancements in the
undeveloped countries will require significant logistics support, workforce, and capital funding.
The entrepreneurships have a large positive impact on the economy of the country.
This new entrepreneurial ventures help the country in increasing its revenues. The new and
innovative products and technologies form these ventures enable new markets to grow and the
makes way for improving the financial conditions. The increase in employment and higher
earnings make way to improved national income. The government can use this revenue in the
other sectors, which are underdeveloped.
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The new entrepreneurships are responsible for improving the social conditions in the country.
These ventures tend to break away from the traditional working principles and thus make way to
a massive social change. This improves the quality of life and provides greater economic
freedom.
The new entrepreneurships also help in the development of the community. These ventures also
invest in the community projects and lend economic help to the local charities. This further helps
in the improvement of their ventures. This motivates the other individuals in the community to
improve their interactions with these charities.
Critically examine, with reference to factual data, the development, and growth of
entrepreneurial ventures in the UK.
Figure 1: The growth of entrepreneurship in United Kingdom
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(Source: Zahra, 2016)
From the above report, we learn that the United Kingdom has seen general and maintained
increase in the frequencies of the entrepreneurships. This has contributed to almost 99.6% of the
total private sector jobs in the country. Further, this has increased the employment rates in the
country. However, the introduction of Brexit will create a huge challenge in the operations of the
entrepreneurships. A downfall of 1.8% of the total entrepreneurships has been estimated.
Figure 2: The frequency of entrepreneurship in the different regions of the United
Kingdom.
(Source: Stephan, 2015)
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Figure 3: The growth of self employment in United Kingdom
(Source: Parker, 2018)
Conclusion
The above section discussed about the approach of entrepreneurship and its different ventures.
The interconnection of different entrepreneurial typology with all the ventures is also provided.
Moreover, the scope of the entrepreneurships and their effect on the United Kingdom has been
provided.
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