Entrepreneurship and Small Business: A Comprehensive Analysis

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ENTREPRENEURESHIP AND SMALL BUSINESS
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ENTREPRENEURESHIP AND SMALL BUSINESS
Table of Contents
Introduction................................................................................................................................3
P1: Types of Entrepreneurship venture and topologies linked with them.................................3
Typology of Entrepreneurship...............................................................................................3
Types of Entrepreneurial Venture...........................................................................................4
P2: Comparison among various entrepreneurial ventures.........................................................5
The similarities exhibited by ventures:..................................................................................5
The differences between the entrepreneurial ventures:..........................................................6
P3: Statistical analysis of Statistics and micro businesses on the economy..............................8
Micro Business.......................................................................................................................8
Small Business.......................................................................................................................8
How micro and small businesses impact on the economy:....................................................8
P4: Impact of Start-Ups on social economy.............................................................................10
P5: Analysing Characteristics, Motivational Drives and Traits of successful entrepreneurs. .10
P6: Assessing the reflection of entrepreneurial personality on entrepreneurial mind-set........13
P7: Examining how background and experience can foster or hinder entrepreneurship.........14
Conclusion................................................................................................................................15
References................................................................................................................................16
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ENTREPRENEURESHIP AND SMALL BUSINESS
Introduction
Entrepreneurship is a term most heard in the last decade. With the increasing socio economic
problems, and in the era where conglomerates rule the corporate world, entrepreneurs have
taken a step to establish small scale businesses, and have taken the market with a storm. The
modern complex social problems demand modern solutions. According to van der Zwan et al.
(2016), these solutions are provided by entrepreneurs by their revolutionary entrepreneurship
ideas in the form of business organisations. To clear all misconceptions, the correct definition
of an entrepreneur must be laid down. An individual or a group of individuals, who possess
the capability to think uniquely and provide effective solutions to modern socio-economic
problems, is known as an entrepreneur. Entrepreneurship ventures could be classified and
explained in details and are included in the report.
P1: Types of Entrepreneurship venture and topologies linked with them
Entrepreneurship is an important concept as that helps in the growth of business and enhances
business operations in order to organise the people, lead and manage them. An effective
entrepreneurship brings in a positive attitude in an organisational structure.
Typology of Entrepreneurship
 Established firms: Some firms have a strong entrepreneurship structure within them.
Their organisational structure was strengthened in its base by the entrepreneurship
skills. An example of such firm that has established themselves is Tesco, the most
successful retail supermarket chain in UK.
 Small scale social ventures: Some of the social ventures intend to run their business
operations by serving the society. Small scale ventures that that aim at social services
could be funeral cares.
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ENTREPRENEURESHIP AND SMALL BUSINESS
 Social ventures of large scale: On the other hand, some social ventures run at a larger
scale and help the society. Some of them are the national and international level
health organisations that aim all their business activities at the betterment of social
health. Organisations like the National Health Service (NHS) in UK works at
benefitting the people of their nation.
 High growth firms: While there are firms that had started off as a small firm and
eventually have grown into one of the greatest corporate in the world with the support
of the greatest entrepreneurs in business.
Types of Entrepreneurial Venture
Survival Entrepreneurship Firms: These ventures work with the basic goal of cutting costs
by maintaining a limited amount of employees and being cautious over their financial
activities. This type of entrepreneurship helps in keeping the firm afloat in financial matters
in times of their initial rise or at times of financial crisis.
Lifestyle Entrepreneurship Firms: This type of entrepreneurship aims at creating
opportunities for the owner of the firm to directly engage in activities that facilitate his
profitability. The managerial measures taken in this kind of entrepreneurship are not taken
seriously and there always stays a factor of risk. Lifestyle Entrepreneurship aims at
sustainability and growth with long term investment of work by the owner.
Growth firms: Growth firms refer to the organisations that are seen to have a better growth
in the market than their previous competitors. Growth organisations are seen to be mostly
found in technology sectors. With examples of corporate giants like Microsoft and Amazon,
who have thrived for the last couple of decades with consistent growth poses to be a great
example of growth firms.
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ENTREPRENEURESHIP AND SMALL BUSINESS
Public sector entrepreneurships: This type of entrepreneurship is important in the public set
up. Organisations that fall under health care like NHS UK had started initially with limited
scale financing and grew with their increase in market.
Social enterprise: the organisations involved in the Social Entrepreneurship model are
focussed in the issues related to society and aims at solving them. With matters like childcare,
funeral care, and other social causes, these organisations grow in scale.
P2: Comparison among various entrepreneurial ventures
The similarities exhibited by ventures:
 Dedicated entrepreneurs: To establish a profitable organisation from the root level, an
entrepreneur must be motivated, dedicated towards his or her goal, and strong willed,
so that they are not turned down by temporary failures.
 Investors and funding: Welter et al. (2017) argued that the first important step to a
successful entrepreneurship is the capital required for the business to grow. Without
proper funding from a venture or sponsor interested in the business model, the
entrepreneurship could not grow.
 Creative idea: Even after accumulation of sufficient resources, a start up could not
bloom to profitability by overcoming their competitions and challenges faced without
a unique creative idea to serve as the attractive factor for the business.
 Regular Evolution: In order to sustain popularity and demand in the market, a
business organisation must learn to evolve with respect to its surroundings. Without
constant growth and innovative ideas being implemented, the business venture tend be
become monotonous and hence loses its business in the market.
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ENTREPRENEURESHIP AND SMALL BUSINESS
 Brand Name: All entrepreneurships’ primary aim at its growing stage remains to
establish them in the market. In order to achieve that, a venture must be able to work
in such a way that their brand name becomes popular and familiar.
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ENTREPRENEURESHIP AND SMALL BUSINESS
The differences between the entrepreneurial ventures:
Survival Life Style Managed
growth
Aggressive
growth
Annual
growth Rate
Survival
Entrepreneurships
do not exhibit
high growth rates,
since they mainly
aim at keeping
their business
afloat.
They show
lean growth
rate since this
type of
entrepreneurshi
ps are usually
of small scale
and demands
long term
activity from
the owner
Storey (2016)
opined that his
kind of growth
entrepreneurshi
p shows
sufficient
growth rate,
but maintains a
standard in
their growth.
Aggressive
growth
entrepreneurshi
p is solely
aimed at
maximizing
their growth
rate. They take
aggressive
steps to bloom
their business
outgrowing all
their
competitors.
Managerial focus The main focus of
managers in
concentrated in
sustaining the
firm by keeping
them afloat and
saving them from
Managerial
focus is solely
on the owner
profitability
and
engagement in
business
Though the
focus is mainly
on growth of
the business, it
simultaneously
focuses on
sustainability
The entire
focus is based
on growth of
the
organisation by
maximizing
their business
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ENTREPRENEURESHIP AND SMALL BUSINESS
a financial
collapse.
operations. and
organisational
stability.
profitability
and increase in
scale.
Entrepreneur
orientation
Entrepreneurs are
oriented to
develop strategies
and policies to
minimize costs
and optimizing
the operations to
avoid lose.
They are
oriented to
entertain the
owner. The
strategies set
involve the
activities as
prioritized by
the owner’s
interest, rather
than the market
demand.
In this case, the
entrepreneurs
are oriented to
promote
sustainable
growth of the
organisation
keeping in
mind long term
factors.
In aggressive
growth, the
entrepreneurs
are oriented in
formulating
aggressive
strategies to
promote instant
and maximum
profitability of
the firm.
Managerial skills Critical
managerial skills
required. A wrong
decision may lead
to greater cost
with lesser return.
A decision of
such may lead to
the dissolution of
Medium
managerial
skills required
as compared to
the usual size
of business.
Mostly
organisational
skills are
Skilled
managers are
required to
keep a balance
between high
profitability
and future
sustainability.
High
managerial
skills required
to manage and
optimize all
business
operations, and
costs in order
to ensure
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ENTREPRENEURESHIP AND SMALL BUSINESS
the business
model.
required. maximum
output.
Technology
Investment
Low technology
investment, since
the scope of
investment in this
type is usually
small.
Not much
technological
investment is
required other
than it directly
involves the
owner’s
interest.
Medium
investment in
technology is
required to
keep the firm
updated.
Technology
acts as an
important
factor. And
proper
investments
are made in
this type.
Source of finance Source of funding
is mainly
organisations
capital left.
Financing is
often done by
sponsors
interested in
higher returns
Funding is
obtained from
sources that
have long term
interest in the
venture
Financing
source includes
previous
profits, public
shares and
funding
ventures.
Organisation
Structure
They have an
organised
structure with
limited employees
to cut off extra
cost.
Lifestyle
entrepreneurs
maintain a
structure in the
organisation
with the owner
at the top of
Organisational
structure is
stable and goal
oriented.
The structure is
focussed on the
growth of the
firm.
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ENTREPRENEURESHIP AND SMALL BUSINESS
the hierarchical
order
managing and
observing all
operations.
Table 1: Differences between Ventures
(Source: Created by the Learner)
P3: Statistical analysis of Statistics and micro businesses on the economy
Micro Business
Business ventures that run on small scale industries and generate low revenue in the market
are known as micro business. To qualify as a micro business, an organisation should have
lesser than 30 employees.
Small Business
Small businesses are those that are bigger than micro businesses in terms of employee size,
revenue gained and market growth. Parker (2018) stated that a small business organisation
could have strength of fifty employees as well as strength as big as five hundred employees.
How micro and small businesses impact on the economy:
It is seen that micro and small businesses have boomed in the recent market. This is largely
due to globalisation. However, facts prove that small businesses have a greater impact than
large scale firms on the economy of UK, as well as the whole world.
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ENTREPRENEURESHIP AND SMALL BUSINESS
Figure 1: Percentage of Small and Micro businesses
(Source: The Conversation, 2019)
Figure 2: Small business comparison with medium and large businesses
(Source: Bestassignmenthelper.com, 2019)
Figure 3: Rise of small and micro business in UK
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ENTREPRENEURESHIP AND SMALL BUSINESS
(Source: Research-lincs.org.uk, 2019)
Agreeing with the above data, it was reported that micro and small businesses had a total
employment of 16.3 million, which is 60 percent of all employment done in the private sector
(Fsb.org.uk, 2019).
P4: Impact of Start-Ups on social economy
Entrepreneurs in modern day have taken up a gigantic piece of the business. It can be
considered as one of the recent business trends. They have solved the biggest socio economic
problem since the recession of 208, unemployment. Along with record employment rate
every year, they serve the society in other ways.
According to Goss (2015), start-ups are associated with revolutionary ideas, which shape the
society in an innovative way. They also help the society to be broader minded by engaging in
their events and organisational activities people from all backgrounds and fields, thus
bridging social gaps and strengthening bonds among various section of people.
Small businesses also promote the principle of “Unity through Diversity.” They employ
people from the local group thus improving the economic status of a region.
P5: Analysing Characteristics, Motivational Drives and Traits of successful
entrepreneurs
Entrepreneurial mind set can be defined as a way of thinking that influences the approaches
selected by a particular person in order to face the challenges that is being faced while
developing a business in its initial stages. The main objective of having such mindset is to
continuously develop skills that can be effective for operating a business.
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