Report: Entrepreneurship and Small Business Management, UK

This report provides an in-depth analysis of entrepreneurship and small business management, covering various entrepreneurial ventures such as private, public, scalable start-ups, small business, large scale, and social entrepreneurship. It delves into the similarities and differences between different venture types, including small versus large, and scalable versus social enterprises. The report assesses the impact of small and micro businesses on the UK economy, supported by statistical data on employment creation and market contribution. It further examines the characteristics, traits, and skills of entrepreneurs, differentiating them from managers, and explores how entrepreneurial personality reflects motivation and mindset. Finally, the report considers how background and experience can either hinder or foster entrepreneurship, providing a comprehensive overview of the subject.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Contents
INTRODUCTION.........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Different types of entrepreneurial ventures and related typologies......................................................3
P2 Similarities and differences between entrepreneurial ventures ...........................................................5
TASK 2.........................................................................................................................................................8
P3 Assess and interpret how small and micro business impact on economy............................................8
P4 Small firms and start-ups contribute to growth of social economy after 'Brexit'...............................11
TASK 3........................................................................................................................................................13
P5 Characteristics, traits and skills of entrepreneurs and differentiation with manager..........................13
P6 Entrepreneurial personality reflect entrepreneurial motivation & mindset........................................15
TASK 4........................................................................................................................................................17
P7 Examine background and experience can hinder or foster entrepreneurship.....................................17
CONCLUSION ...........................................................................................................................................18
REFERENCES.............................................................................................................................................19

INTRODUCTION
Entrepreneurship is defined as an act of creating, introducing and developing a new
business which is often a small business in starting. People involved in this activity are known as
entrepreneur. Entrepreneurship is the capacity and desire to launch a business venture including
several risks for the purpose of profit generation. An entrepreneur can either be a sole proprietor
or a partner (Baum, Frese, and Baron, 2014). A privately managed business which has less
number of working staff is describes as a small business. Present research is based on a
consultancy firm i.e. Austin Fraser which is an international recruitment agency having special
consultants. An other small business organization i.e. Rowlinson Knitwear wants to establish
their business efficiently. This report carries entrepreneurship and management activities related
with small business. This assignment includes several forms of venture and typologies related
with it. Differences and similarities between different ventures is also discussed. The way in
which economy of UK is affected by small business is mentioned in accordance with some
relevant evidences. Along with it, skills, traits and characters required by an entrepreneur is
discussed. At last, the role of background and experience to be a successful entrepreneur is
mentioned in report.
TASK 1
P1 Different types of entrepreneurial ventures and related typologies
An entrepreneur is a person, running his own business rather than working under some
other individual. The aim behind it is to achieve profit and rewards (Blackburn, Hart and
Wainwright, 2013). As business world is dynamic, sometimes they have to bear loss due to
changing needs of customers. To tackle situations like this, an individual require some abilities to
manage risky situations. Generation of effective activities to provide quality products to clients is
important. Proper utilized resources are also needed to maintain company’s position in market.
Types of entrepreneurs:
 Private entrepreneur: It is an individual that setups and manages the entire business on
its own. These people are the sole owner of the company and all the profits and losses

associated with that business are faced by them. They have limited number of human and
other resources. They carry out business with the aim of generating high revenues.
 Public entrepreneur: When an industrial or trading venture is managed and owned by
the support of government, it is termed as state entrepreneur. Public entrepreneur are
those individuals that wants to build and operate new ventures within public domains.
They act within government and follows the rules and laws specied by government to
carryout business activities.
Entrepreneurial ventures: These companies are run, managed and promoted by a person to
effectively utilize opportunities that are available in market (Carsrud and Brännback, 2011).
Entrepreneurs have many modern and creative ideas which is used in designing system and
conducting business related operations to improve brand image in market.
Types of entrepreneurial venture:
 Scalable start-ups entrepreneurship: These type of businesses grow in size as
well as reach. Most of the times the scale of these companies is global and their
reach shows an upward increment. This results in employment opportunities for
million numbers of people across the globe. To implement this, sufficient funds
are required which are invested by venture capitalists. Along with it, efficient
working staff is also needed by entrepreneur to effectively carry out work related
operations.
 Small business entrepreneurship: These businesses are started by individuals
with the aim of earning money and profits to maintain their living standard.
Working skills and adequate funds are required to fulfill the needs of potential
customers. Rowlinson Knitwear comes under this category which is an employee
owned company. Electricians, departmental and grocery stores are some of the
examples related with small business.
 Large scale entrepreneurship: These firms have sufficient amount of funds,
material and workforce to carryout business operations efficiently. In this,
businessman either chooses to open a number of outlets within same or different
countries. This helps the organization to increase their market growth along with

increased margins of profit (Dennis, 2011). To cater the demand of public various
products and improved facilities are launched from time to time.
 Social entrepreneurship: In this type, companies are owned by individuals to
enhance and develop the condition of citizens of that country. To carry out these
business, market research is needed which denotes the problems and issues people
are facing, there by provide facilities accordingly.
Relation of ventures with its typologies: various typologies have relation with ventures which
are discussed below:
Managed growth venture: These firms are owned by individuals to incorporate creative
and innovative tactics. This helps in increment of business related operations. Standard
quality of products and services are delivered to customers which the average revenue
generation of firm (Chrisman and et. al., 2012). Due to which, company manages to hold
better position than rivals.
Lifestyle venture: The main aim of starting this business is generation of revenue. This
results in a standardized way of living. To carry out activities properly, entrepreneur
requires to posses capabilities and talent. This approach helps a businessman to fulfill his
desires and needs.
P2 Similarities and differences between entrepreneurial ventures
Different kinds of ventures that are widely acceptable in present market are social, small,
large and start-ups. Every company needs to utilize their resources in an effective manner to
achieve their targeted goals and desires (Drucker 2014). But every firm posses some difference
and similarities which are outlined below:
Small and large entrepreneurship
Basis Small business entrepreneurship Large company entrepreneurship
Similarities  These business are carried out by
entrepreneurs to enhance their
livelihood which results in high
 The aim of these
entrepreneurs is to
increase their market

living standard.
 Companies attract their customer
base by providing affordable and
good quality products.
 For ex., Rowlinson Knitwear,
this company is an successful
example of small business
entrepreneurship.
sales and revenue which
will result in increased
profit margins.
 They allow their
consumers to buy
standardized products at
cheap rates.
 For ex., Tesco is a large
company alluring its
customers towards
products.
Differences  These type of business operates
with a small funding and
working staff is also less in
number.
 Leadership trait they follow is
balanced and systematic
approach while carrying out
business activities (Fassin, et.al,
2011).
 These companies
introduce themselves in
market place with large
investment. Thousands
of employees works
under this kind of
organization.
 These entrepreneurs are
highly motivated and
influential towards their
targets..
Scalable and social entrepreneurship
Basis Scalable entrepreneurship Social entrepreneurship
Similarities  These entrepreneurs
manage their business on a
global basis in order to
generate high sales and
profits margins.
 Their main desire is to fulfill
the social needs of different
sections of society and
generation of revenue..
 Social networking sites play a

 They start and expand their
business with the support of
social media like,
Facebook.
vital role in promoting their
business and brand. such sites
are Instagram, Facebook, etc.
Differences  Main aim of these firms is
to provide quality goods
and services to their
potential customers.
 Capital ventures invest for
these businesses and profit
generated is divided
accordingly.
 Main agenda of these
organizations is to satisfy the
wants of people by providing
basic necessities to them .
 Money earned in this type of
businesses is usually donated
to charitable trust or NGO’s.
Basis private entrepreneurship Public entrepreneurship
Similarities  Private enterprise have
their main focus on
providing standardized
goods and services to their
customers.
 They aim to generate
maximum profits and
achieve their predetermined
targets.
 Main aim of public
entrepreneur is to deliver good
quality products to the citizens
of concerned place
 They focus on achieving their
targets while considering the
welfare of people.
Differences  It is owned and managed
by private citizen.
 Profits are distributed
among shareholders and
owners.
 These enterprises are
supported by government and
government has right to
intervene in their operations
 Profit either goes to
government or invested back
in company.

TASK 2
P3 Assess and interpret how small and micro business impact on economy
Small, micro and medium are three kinds of sectors which are helpful for a government
to enhance the overall condition of its nation (George. and Bock, 2011). These companies are
introduced by individuals with the aim of adequate profit generation to improve their livelihood.
These firms provide employment to lacks of people and help UK’s authority in developing the
economic state of nation .
Different types of businesses
Three kinds of business namely, small, micro and large impacts economy as a whole.
Micro business: These are very small firms in size and works on a small scale. Employment
number is less than 12 in these firms. Their main target is to earn profit margins by providing
goods and services to its potential customers. This impact UK economy positively as people are
self employed.
Small business: These are small companies but large in comparison with micro business.
Numbers of employees working in them are less than 60. Main aim of these businesses is to
increase market growth and sales. They operate for long time in market. Rowlinson Knitwear is a
small company with type partnership . This company includes around 150 employees and they
provide personalized school uniforms to their potential cliets.
Large business: These organizations needs large funds and investment for operation. This
business involves more than or almost 250 working staff members. They have high revenue
turnover. The main agenda of this business is to achieve considerably high profit margins.

(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Small and Micro businesses Contribution in growth of UK
Particular Number of Employees Total Assets Annual Sales
Micro Enterprise <12 ≤ £2.5 m ≤ £2 m
Small Enterprises <60 ≤ £12m ≤ £09 m
Medium Enterprises <280 ≤ £55 m ≤ £47 m
( Source: UK Small Business Statistics, 2017)
Statistical data defining affect of SME on UK:
 In UK, there are approx 5.9 million small companies as in year 2017 (UK Small Business
Statistics, 2017).
 This conclude that 98% of business activities depends on these ventures as it increases
employment opportunities for the people of UK (Storey, 2016).
 Micro sized business comprises 95% of share in market which is approx 5.5 million. This
venture generates 32% of opportunities in employing people which results in their
improved living standard.
Illustration 1: Role of start-up and small business in UK

 A large sized organization contributes around 0.13% in UK which denotes approx 42% of
job opportunities are given under these firm. Therefore, big organizations provides help
to UK government by increment job opportunities for citizens to earn capital for
sustaining their livelihood.
Various merits that small and micro business have on market conditions of UK
Employment creations: In respect with today’s UK business scenario, large number of
small and micro business helps government in developing nation’s state by originating several
opportunities for public (Goss, 2015). People can earn money to raise their living condition while
working in these companies. From 2010 to 2015, UK job scenario took a upward shift where
almost 1.9 million citizens worked in several small and middle level companies. Thus, SME
contributes in economy increment for UK. Small firms like Rowlinson Knitwear employees
workers under them which indirectly provides employment in other fields like transport, storage,
supplier etc.
Infrastructure development: Another benefit which small and micro firms exercise is
growth of economic well being of nation. People working under small organizations like
Rowlinson Knitwear earns sufficient amount to live their lives appropriately. This result in
adequate quantity of tax generation which is used by government of UK to build modern and
robust infrastructure. Improvement of infrastructure like roads, hospitals, government buildings
and bridges lead towards the development of nation.
Impact of SME's on economy of UK:
 Local impact: Small and medium business enterprises have a very positive effect on
increasing economic state of nation because of rise in job opportunities. Small
companies such as Rowlinson Knitwear provide jobs to capable individuals. Thus,
citizens of UK are capable enough to support themselves independently due to various
jobs available in micro and small companies according to their skills and qualifications.
 Regional Impact: Impact on regional basis is positive as people are satisfied with the
product and services they are provided with. SME results in fulfillment of needs and
wants of different sections of society, as they incorporate money independence along
with various products and commodities. One example of this can be taken from

Rowlinson Knitwear which provides standardized school uniforms to their clients along
with cooperate wear.
 National Impact: Successfully managed medium and small sized companies have
chance to enhance their market share and customer loyalty toward brand by expanding
their outlets in different countries. Small businesses impacts positively on nation as they
provides opportunity to the citizen to satisfy their financial needs, appreciates innovation
and also develop employment opportunity in the country. This improves economic status
of nation.
P4 Small firms and start-ups contribute to growth of social economy after 'Brexit'
Brexit defines UK withdrawal from European nation Union. This decision was taken with
the consent of UK citizens through voting process in 2016 (Jones and Rowley, 2011). This poling
results that more than 50% population was against European union. Due to Brexit, per capita
income of people reduced a little. UK became independent of interference from other nations in
implementing its rules and regulations related with business.
After Brexit, UK government promotes micro and small firms by giving them different
benefits. These benefits include liberal and flexible policies for them. This motivates
businessman to set up a small business as sufficient funds are easily available to them. Due to
this employment generation also increase. Poverty level in UK faces a low. Other advantages due
to small businesses like Rowlinson Knitwear are mentioned below:
 Infrastructure Development: Well implemented taxation policy of UK results in the
enhancement of infrastructure within country. Government of UK by ideally utilizing
revenue and resources develop a large section of society which was earlier backward.
Maintenance of roads, bridges, buildings have satisfied citizens towards the working of
government.
 Social security improvement: People of UK working in micro and small business
sector exercises several benefits. One of them is economic stability of people. This
ensures citizens to have genuine income in situations like death, disability or retirement.
 Economic and Social Development: Small and micro enterprises acts as a power
generator for UK. This has given an opportunity to people to buy products according to
their wish as they are self employed and earning good wages.

 Rise in per capita income: Living standard of people have considerably increased due to
rise in income. In 2017, per capita income of workers is estimated around 2800 Pound
from 1960. Last observed GDP in UK is around 42515 Pound which is equal to approx
335% of world's average GDP (United GDP Per Capita, 2017). So, reduction in poverty
has increased the living standard of people.
Social impact of small and start-up business on economy:
Social economy includes the relation among economical and social behaviour for a
particular sector. It studies about the influence of morals and ethics on business (Karlan and
Valdivia, 2011). Social enterprise and voluntary sectors are part of it. Social economy came into
forces to resolve issues that private and public sector often ignores. Terminologies related with
social economy and enterprises are as follow:
 Social enterprise: These firms are operated for the well being of society. They carry out
business related activities for delivering goods and products to every section of people.
Entrepreneur perform tactics to enhance financial and social state of nation. Vision and
aim of social enterprise is to attain maximum revenue for providing sufficient shares to
investors.
 Social entrepreneur: These people indulge in business to serve people and community.
Required transformation along with other facilities for people is their main target. All
aspects including environment is taken into consideration by entrepreneurs before
carrying out any operation.
 Growth of social economy: Social enterprise are operated by businessman to improve
and develop economic criteria of nation. These companies get government aid and
support from large organisations which are mentioned below:
 Government support to social enterprise: Government is in favor of improving social
state of a country. To implement this, government provide adequate aids and funds to
people that wishes to manage social firms (Kirzner, 2015). Policies and regulations for
social enterprises are liberal due to this it attract a wide attention from citizens. Funds rate
to manage these firms are almost zero. This helps the business owners to produce
products at a cheap rate for society. Various economic issues are overcome due to this
which result in growth of social economy.