Entrepreneurship and Small Business Management: Unit 9 Report

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Unit 9 – Entrepreneurship and small business management
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Table of Contents
Introduction:................................................................................................................ 3
Task 1......................................................................................................................... 4
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..........................4
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.................................................................................8
Task 2....................................................................................................................... 11
Conclusion:............................................................................................................... 24
References:...............................................................................................................25
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Introduction:
The below section is based on the factors that play an important role on the
entrepreneurship and small businesses and there are various types of enterprises
which have their own criteria working which is mention in an effective way. As the
main chairperson of Committee, it is my responsibility to provides effective business
strategies and policies so that encourage the new innovative activities of
entrepreneurial. The first section of the report provides the learning of growth and
scope of the entrepreneurial ventures that is the essential element of the
entrepreneur. There are various kinds of similarities and differences in the regards of
the entrepreneurial activities and their objectives also differ from each other due to
their size the scope in the market. On the other hand, the report presents the study
that small businesses are playing an important role in the economy of the country
and their contribution makes the economy more powerful in the whole wide world.
The small business takes aid from the BREXIT to give the contribution to the social
economy to make it more powerful. Another section of the assignment based on the
presentation which explains the successful entrepreneurs and their success stories.
Alternatively, the skills and characteristics are essential elements in the
entrepreneurship which is mention in the presentation and various factors like
environment and competition give an impact on the business in an effective manner.
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Task 1
Executive summary: The development and growth of the business are based on
the various activities but the effective business policy is helpful to promote the
business on the global level. The business closing needs to be stopped by the aid of
the business policies that produce by the chairperson of the local council which is
also helpful to maintain the goodwill of the business in the competitive edge.
Introduction: The below report is based on knowledge of scopes of the ventures in
terms of entrepreneurial activities which plays an important role in the success of the
business in the competitive world. There are various types of enterprises which have
their own area of success and objectives to maintain the surviving in the market.
There are similarities and differences between the private and public
entrepreneurship which is mention below. The factors of the small enterprises which
give an impact on the economy of the country.
a) Critically examining the scope, development, and growth of
entrepreneurial ventures (various kinds of businesses) in your borough. You
can develop your answer by considering various kinds of entrepreneurial
ventures within the private and public sector and examining their similarities
and differences.
Each entrepreneur has their own mindset and ideas to build the corporate business
in the market and provides the services accordingly which is called as the
entrepreneurship. The entrepreneur launches several kinds of venture in the
competitive market to make a deal and partnership with the various online vendors to
promote their business (Arregle, et. al., 2015). The new entrepreneurship needs to
improvise their employment with the aid of effective entrepreneurship occupation to
set their business on the global market.
Scope of the various kind of entrepreneurial venture
The scope of the entrepreneurship is related to the individual person who wants
success in the market through establish their own business and decrease the ratio of
unemployment in an effective way. The effective employment opportunities are
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helpful to reduce the ratio of unemployment and provides the job benefits to each
deserving candidate. So, there is a brief introduction of the numerous kinds of
entrepreneurship which have their own business culture and role in the market which
is mention in the below section:
 Small and medium-sized enterprises: The small enterprise has a small
number of employees like 250 approx. and in the United Kingdom, there are 5.2
million SMEs discover in the year of 2014 which means the small business plays an
essential role in the economy of the UK country. The out of 5.7 million businesses,
2.6 million businesses were registered for VAT or PAYE. The trade and revenue
value of the small business is quite small as compared to medium and large
business. These types of organization needed from the partnership so that company
successfully attain the objectives of the business.
 Large enterprises: The medium size organization has the employees’
number which is not fewer than 1000-1500 employees and they have the selected
area to achieve the goals. These companies are 8000 approx. in the UK which have
more than 250 employees who give their services in an effective way (Leitch and
Volery, 2017). There is turnover percentage is 48% as compare to another size of
enterprises which is discovered in the year 2018 analysis which is greater than 1.5
billion. These types of businesses have various types of goods and services in
numerous countries. The balance sheet of these companies shows 2 billion euros
which are an approximate amount of the large business.
 Social enterprises: Social enterprises are the main objectives to serve the
social activities and have the purpose of reinvesting in the communities which give
the service to the society. The social enterprises are £18 billion approx. which have
the 0.8% turnover of the UK businesses and there is typical social enterprise have
the 10 people as the employees. These companies have the priority to serve society
not maximize their own profit or build the empire. There are various national growth
businesses which serve society and analyze their issues to resolve on time.
 Private enterprises: The private enterprises are the best contributor to the
economy of the country and it runs through the single individual and partners but it
does not belong to the government. The UK has the 5.7 million private sectors which
are 51% of the other size businesses and an annual turnover of the SMEs is £2.0
trillion which is discovered in the year 2018. Most of the private businesses are
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invented to produce the maximum profit in the year and serve the quality service to
the customers to get their attraction (Terjesen, et. al., 2016).
 Public enterprises: The public enterprises are owned by the government and
the economy of the UK is generally based on these companies. The public
enterprises represent in the UK business as 71.4% out the other types of
businesses. These companies have their business ideas to serve the public and also
increase the financial condition of the country.
Development and growth of the venture
The entrepreneurship is the kind of businesses which plays an essential role in the
economy of the country and develop their business in the competitive market to set
the proper position to attain the objectives in an effective way. The development of
the venture is based on the various social objectives which need to attain by the
entrepreneur to improvise the life circle of the public of the UK. The United Kingdom
is ranked fourth in the most entrepreneurial economy in the whole wide world which
means the entrepreneurship get the best result in the UK with the aid of the proper
business policies (Wu and Huarng, 2015). On the other hand, entrepreneurship
plays an important role in the reduction of the unemployment rate and provides the
vacancy to the deserving candidates.
Differencesbetween the Public and Private enterprises
Features Public enterprises Private enterprises
Differences  The section of the
economy of the UK that is
controlled by the
government of the UK
 To serve the public
of the UK
 Get investment
through taxation,
penalties, duties, etc.
 Owned by a private
individual and have their
own aim.
 Main aim to attain
the maximize profit
 Through issuing
loan and shares (Elo and
Freiling, 2015)
 Good salary
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 The benefit is job
security, allowances,
retirement benefits
(Berisha and Pula, 2015).
 The promotion gets
on the seniority
 Job stability always
available in the public
enterprise
package and incentives to
achieve the target
 The promotion gets
on a merit basis.
 Job is always on
the risk factors.
Similarities in the Public and Private enterprises
Both types of companies are based on the customer-oriented and believe to serve
the quality service in an effective way and always open their option to make
innovative changes in the working place. Both the enterprises provide better
opportunities to the employees to get the proper growth in the competitive world. In
both enterprises, there is an executive staff who always ready to give support and
provides the learning to adopt the changes to get the individual benefits.
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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 the economy and the growth
of the social economy using the data and statistics. This can be achieved by
drawing a comparison to medium and large businesses.
The employment ratio is reduced by the aid of the micro-enterprises so it is
concluded that the micro business is helpful to provide the employment to the UK
public and also have the advantages to sustain the business for the long-term period
(Acs, et. al., 2017). The micro or small business has the ability to expand their
business at the international level and serve their services on the other countries in
an effective way.
Small business contribution to the social-economic of UK
There are some statics and data of the small businesses which gives aid on
improvising the economy of countries which is mention in the below section:
 The Small businesses are 5.6 million in the United Kingdom which is analyzed
in the year 2018 and there was the heavy downfall of the business but the small
businesses were also 2.2 million which is 63% in the year 2000. It means the small
businesses always plays an effective role in the economy of the UK (Georgiadis and
Pitelis, 2016).
 The small business has the ability to provides the facilities to satisfy the
employs which increase the employment ration.
 The micro or small and medium-sized businesses are 99.9% in the starting of
2018 and the annual turnover is 5.2 million SMEs which is discovered in the year of
2014.
 The partners are involved in the small businesses, it means the loos can bear
by each partner not only one person faces the issue of losing which maintain the
positive impact on the economy of the country (Rahim and Mohtar, 2015).
 There were 1.4 million employing businesses are identify the year 2018 which
provides employment to the many people of the UK.
 The market share of the micro business is quite good due to these businesses
serve the service in the limited area which has no chance for loss.
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 The small businesses are involved in the various pattern like 405000 business
are based on the ordinary partnership, 1.9 million are companies and 3.4 million are
the sole proprietorship which reduces the retention rate of employment.
 In the year 2017, the small businesses increased from 22% to 29% which
provides the learning that the small businesses are given a good contribution to the
UK economy.
(Figure: Lincolnshire Research Observatory - Greater Lincolnshire)
(Source: Research-lincs.org.uk. 2018)
The above graph provides the learning that the small enterprises give the effective
contribution on the economy of the UK and have the 88.2% role in the market to
serve their potential customers which are reflected through the blue line growth in
the graph.
Comparison between the medium and large businesses
Medium businesses Large businesses
 Mostly held by the families
 Decision making by the owner of
the company
 Have a small revenue in the
system
 Fewer than 250 employees are
 Mostly held by the public
investors
 Decision-making handling by
organizational hierarchy
 Have a huge area of revenue
 More than 250 employees
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involved
 Have limited processes (Ibeh, et.
al., 2019)
 Limit of 10 people in the
partnership
 The employment is 75.6% and
turnover is 51% from the private sector
of the UK
 Limited area to serve the service
to limited customers
involved in the business
 Have a wide range of funding
sources
 No limit for the partnership
 The employment is 40% and
turnover is 48%of the private sector of
the UK.
 Diverse market and diverse
customers to serve the service
So, it is concluded that the Medium size of enterprises have the effective impact on
the economy of the UK and these types of companies contribute in the higher
employment rate in the comparison of the large business (Johnson, 2015). The small
businesses have the ability to provides the jobs to the various people but the large
business have the lack of opportunities for the people of UK to grow their career and
contribute on the economic growth of the county. It cannot be denied that the large
business has the numerous kinds of goods and services to serve the business on
the large level but it is also concluded that this fails to provide the job vacancy to the
people of UK. So, the medium business has the proper ability to contribute much in
the economy of the UK in an effective manner.
Conclusion: The report concluded that there are some structures like local,
regional, non-profit, profit and large which have their own business pattern and
culture which plays a differ role on the economy of the country. The comparison in
between different size and scope of the business provides the learning that each the
business have different objectives so it is necessary that the business policies need
to be implemented accordingly. The economic growth, enhance the market share
and reduction of risk paly as the chief factors that need to implement so that maintain
the business and improvise the economy of the country.
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Task 2
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This slide based on the introduction of presentation that there is an example of three
main successful entrepreneurs who give their successful contribution on the
economy of Britain and this slide is helpful to provide their struggle time introduction
in an effective way. There are some characteristics and skills of those successful
entrepreneurs which make them differ from the other businessmen. This section also
provides the knowledge of main factors which make them successful in the UK and
well-known in the whole wide world. There are common motivational drivers which
make the entrepreneur more successful in the market.
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