Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Contents
LIST OF FIGURES.............................................................................................................................3
INTRODUCTION............................................................................................................................. 4
LO1.................................................................................................................................................5
P1............................................................................................................................................... 5
P2............................................................................................................................................... 7
M1............................................................................................................................................. 9
LO2............................................................................................................................................... 10
P3 AND M2.............................................................................................................................. 10
P4............................................................................................................................................. 14
LO3............................................................................................................................................... 15
P5............................................................................................................................................. 15
P6............................................................................................................................................. 17
M3............................................................................................................................................18
LO4............................................................................................................................................... 20
P7............................................................................................................................................. 20
M4............................................................................................................................................21
CONCLUSION............................................................................................................................... 22
REFERENCES.................................................................................................................................23
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LIST OF FIGURES
Figure 1: Average Profits from SME's...........................................................................................10
Figure 2: Contribution of UK Organizations.................................................................................11
Figure 3: Impact of Technology over Businesses of UK................................................................12
Figure 4: Cities by SME Contributing to Economy........................................................................13
3

INTRODUCTION
Entrepreneurship is a term which is being most commonly used through which individuals are
able to develop and organize a business of their own in the market (Lipset, 2018).
Entrepreneurship is the process through which individuals establish their business by taking
higher risks of providing an innovative product or service in the market which would be meeting
the desires of the consumer market.
An individual who has been practicing entrepreneurship within the organizational boundaries in
which he has been employed shall be considered as an Intrapreneur (Braunerhjelm et al.,
2018). These individuals hold the characteristics similar to that of an entrepreneur but practice
it within the organization.
Through this report, an overview of the different forms of entrepreneurial ventures shall be
examined and their use in public, as well as the private sector, shall be determined. The report
would also be covering the influence of small businesses over the business environment and
the ways through which it impacts the economies of the world. The report would also be
covering the various aspects that impact the framing of an entrepreneurial mindset and various
influences of environments over promotion or hindrances of entrepreneurship.
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LO1
P1
An entrepreneur holds willingness of establishment of new business in the market through
providing a product or service which has not to be provided in the market and has a unique and
innovative value-added to it through which the customers can be provided with fulfillment of
their needs (Parker, 2018). There are various forms of organizations through which an
entrepreneur establishes his new venture, some of which have been identified and described in
the following:
 Small Scale Entrepreneurship
This form of entrepreneurship is established by the entrepreneur at a small scale holds
the majority of businesses in economies (Stuetzer et al., 2018). This form of
entrepreneurship venture is formed at a small level and has low profitability through its
operations.
 Serial Entrepreneurship
Serial entrepreneurship venture is formed by the entrepreneur who is willing to
establish a new venture but is not willing to operate the same and for the same, the
authority is delegated to someone else.
 Female Entrepreneurship
The form of entrepreneurship venture which is being formed and managed by a female
entrepreneur is known to be female entrepreneurship venture (Malecki, 2018). The
main feature of this form of the venture is that it is established by a female
entrepreneur and conducts all the operations in a similar manner to that of a basic
entrepreneurial firm.
 Social Entrepreneurship
This form of entrepreneurship venture is being formed in order to need the
requirements of society (Rawhouser et al., 2019). A social entrepreneurship venture is
established by the entrepreneur to resolve the issues that are being faced by society
without having its focus over the generation of profits.
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 Private Entrepreneurship
Private entrepreneurship venture is those private organization that has implanted the
process of entrepreneurship in their business process and practice the same through
operations (Lerner et al., 2012). The main objective of a private entrepreneurship firm is
to generate higher profits.
 Public Entrepreneurship
This form of entrepreneurship venture is formed by the use the entrepreneurship by the
public sector organizations in order to practice the concept of entrepreneurship in their
operations through which benefit to the society can be provided by developing
innovative products and services.
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P2
There are various similarities and differences that can be identified in serial entrepreneurs,
managers, and Intrapreneurs. Through the following table, various points of similarity and
differences are being noted in context to these three:
Serial Entrepreneur Intrapreneur Managers
Similarities
Objectives The objective of the
serial entrepreneur is
to meet the
objectives of the firm
that has been
established (Katz,
2018).
The objective of the
Intrapreneur is to
meet the objectives
of the firm in which
the Intrapreneur is
employed.
The objective of the
manager is to the
fulfillment of the
objective of the tasks
allotted to him.
Motivation The motivation factor
a serial entrepreneur
is the success of the
business and the
profits that shall be
gained by his
organization.
Intrapreneurs are
motivated by the
incentives they would
be receiving through
providing innovative
solutions to the
project held by him in
the organization
(Hornsby et al., 2018).
Managers are
motivated by
promotion and
increments in salaries
that would be
received by them
from the
organization.
Differences
Area of Operation The serial
entrepreneur
operates at a huge
level as he
established his own
An Intrapreneur
operates at an
organizational level to
meet its aims and
objectives.
Managers operate at
departmental levels
to meet the
objectives of the
departmental tasks
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business. allotted to them.
Competition The competition
faced by a serial
entrepreneur is from
the different existing
organizations in the
business
environment.
The competition
faced by
Intrapreneurs is the
other developing
entrepreneurs who
have been developing
the characteristics of
entrepreneurship.
The competition of
managers is the
employees working in
other departmental
heads in the same
organization (Parker,
2018).
Authority A serial entrepreneur
holds the complete
authority of his
organization and
takes a decision for
the entire firm
(Braunerhjelm et al.,
2018).
The authority held by
an Intrapreneur is up
to the tasks that are
being allotted to him.
The authority held by
the manager of an
organization is up to
his department in
which he is managing
the activities.
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M1
Public sector organization are those venture which has been established by the government in
order to provide the products and services to the society at an affordable rate and ensure that
society of the country leads to development (Liddle and McElwee, 2019). The public sector
organizations function under the supremacy of the government which formed it and the
decisions are taken under the guidance of the same. However, the corporate organizations are
privately owned businesses, the decisions of which are taken by their holders and do not
initiate interference of any external component in the same.
British Broadcasting Corporation (BBC) is a public sector organization which is funded and
operated by the employees appointed through the government of the UK. The organization is
considered to be one of the oldest broadcasting organizations in the world which provides
television services, radio networks, digital services, etc. through its various television and radio
channels such as BBC One, BBC News, CBBC, etc., the firm has been benefitting the citizens
widely. Independent Television Authority (ITV) is a privately owned broadcasting organization
of UK and is privately managed by its owners, unlike BBC. The organization has its focus in
providing services to the citizens of the country in order to develop profits through its
operations.
The public sector organizations implant the entrepreneurial activities in their operations so that
innovative procedures can be developed through which the government can blend the different
roles of providing public services and entrepreneurship and build efficient environment for the
society (Leyden, 2016). Public sector entrepreneurship allows the government in promoting the
growth of the economy by taking higher risks and encourages sustainable development of the
economy. Through using the concept of entrepreneurship, BBC is able to innovate the different
measures of serving to the customers and meet their requirements through highly satisfactory
services.
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LO2
P3 AND M2
Micro and small business are the entities which are formed to operate a very limited level.
These organizations have a very small investment amount into their operations and are
engaged in the activities at a minor level (Dana, 2018). However, the small and micro
organization have been contributing highly to the economies of the world by increasing
employment rates and contributing higher to the national income. Though the income
generated through these organizations is very low, however, due to more in a number of such
organization, they contribute widely to the growth of the economy of the country.
Through the various records that have been established by the government of the UK, it has
been identified that SME’s have been highly contributing towards the development of the
economy of the nation through having a high amount of profit through cumulating the sector
and thus leads to the development of the society (Merchant Savy, 2018).
Figure 1: Average Profits from SME's
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[Source: Merchant Savy, 2018]
Through the establishment of SME’s in the industry, the flow of money in the economy of the
UK has been assisted and the higher revenues are being generated from these organizations.
The value which has been contributed to the economy of the UK with the micro-enterprises is
found to be 20% which is a relatively huge share taken into consideration of their sizes and level
of operations (European Commission, 2018). However, the value that has been added by the
SME’s in the economy of the UK has been remarkable at 56.8% which represents the higher
efficiency of these organizations in contributing to the economy. Due to the lack in availability
of resources by SME's unlike the large organizations, these firms are required to contribute
highly through increasing their efficiency in the performance of activities.
Figure 2: Contribution of UK Organizations
[Source: European Commission, 2018]
Through the details that have been received, it can also be noted that large scale organizations
are being established into limited numbers and have contributed highly towards the growth of
the UK economy. These organizations are being impacted by the micro and SME’s as they
develop the local competition in the market which the large scale organizations have to
consider (European Commission, 2018). However, the large scale organizations are able to
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manage their profits due to the gaining advantages through economies of scale and higher
availability of resources.
Figure 3: Impact of Technology over Businesses of UK
[Source: European Commission, 2018]
Through making use of digital technologies which are provided and supported by the
government, organizations in the economy of the UK are able to enhance their skills and ensure
development in various areas. It has been found that using technologies by SME's assist their
functioning of the businesses at a very high level and allows them in increasing their turnovers
and employment opportunities (Dana, 2018). Using technologies in the processes enhances the
capabilities of these organizations through which they are able to critically to utilize the
component of innovation in their activities.
The local enterprises also have a strong impact over the growth of the economy of the nation as
even though facing lack in availability of resources, these organizations are high in numbers and
allow the economy of the country in leading to change through their establishment and
development (BQLive, 2017). The SME’s established in the local markets of the UK are planning
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