ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Report: Insights

This report on Entrepreneurship and Small Business Management delves into various aspects of entrepreneurial ventures. It begins by defining entrepreneurship and categorizing different types of ventures, including small business, scalable startup, large-scale, and social entrepreneurship, along with their typologies. The report then explores the similarities and differences between these ventures, followed by an assessment of the impact of micro and small businesses on the UK economy, supported by relevant data and statistics. It examines the significance of small businesses and business start-ups in the context of the social economy after Brexit. The report also includes a mini-research study on the characteristics, traits, and skills of successful entrepreneurs, such as J.K. Rowling and Sir James Dyson, and assesses how entrepreneurial personality reflects motivation and mindset. Finally, it analyzes how background and experience can either hinder or foster entrepreneurship. The report highlights the importance of small businesses in the UK economy, their contributions to employment, and their role in driving economic growth. It also addresses the challenges faced by these businesses, particularly in the context of Brexit and fluctuating economic conditions.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Different types of entrepreneurial ventures and their relation to typology of
entrepreneurship...........................................................................................................................3
P2. Explore the similarities and differences between entrepreneurial ventures..........................5
P3. Assess and interpret relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................6
P4. Explain how important small businesses and business start –ups will contribute to the
growth of the social economy after ‘Brexit’................................................................................8
P5. Carry out a mini-research to determine the characteristics, traits and skills of two
successful entrepreneurs..............................................................................................................9
P6. Assess how aspects of the entrepreneurial personality as discussed in P5, reflect
entrepreneurial motivation and mindset.....................................................................................11
P7. With practical examples, examine how background and experience can hinder or foster
entrepreneurship.........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship and Small Business Management is an important part of a country’s
economy. This can be defined as the business opportunity that can be settled in by acquiring the
financial risks with an expectation of generation of profits, employment and revenues. An
entrepreneur is an individual who has a vision to convert its dream into reality by working
towards achieving their goals through complete ability for developing and managing the entire
venture. These are a great source of economic booster that helps small owners’ in bringing
sustainable performance of businesses. This report is based on different types of entrepreneurial
ventures and their relationship with respect to its typology. This also include the impact of small
and medium sized enterprises on the United Kingdom’s economy. Furthermore, the overall
assessment after Brexit on UK’s economy. Lastly, there is a description on famous entrepreneurs
namely J.K. Rowling and Sir James Dyson who showed motivational mindset in inspiring others.
MAIN BODY
P1. Different types of entrepreneurial ventures and their relation to typology of entrepreneurship
Entrepreneurship is defined as the methodology of conceptualizing, designing,
developing, executing, launching and running for setting up of an innovative new business.
There are many types of ventures along with typologies such as follows:
Small Business Entrepreneurship: These are the most common type of entrepreneurship, mostly
all companies come under this with half people employed in this sector are from non-
governmental side. Here, the owners are self-employed such as store-runners, travel agents,
cafes, boutiques etc. and provide a platform to laborers to earn some money (Storey and Greene,
2010). Moreover, these focus on making consistent profits so that their family-owned businesses
remain evergreen in the marketplaces. Their existence is at small scale, thus their funding is done
through bank loans, friends, and more.
Scalable Startup Entrepreneurship: This refers to those individuals who are ready to bring
innovation at an accessible level by attracting potential venture capitalists so that they can
establish themselves in the market. It is risk taking entrepreneurial venture where growth of high
returns is at maximum profitability. In regard to this, the main purpose is to hire the brightest slot
from the available options to fuel up the instant expansion of their startups, for e.g. E-commerce
3

companies, who shifted their offline services into this online scalable type, clothing and apparel
for gaining profits and sales volume.
Large Scale Entrepreneurship: These are considered as established ones that comes under the
corporate entrepreneurship, which are mainly dependent on the offerings made by grabbing
current market opportunities and trying to create new ideas for overall sustainable performance
of organizations. Here, their shelf life has finite number of cycles involving parameters like
competition, customers’ demands, emergence of technological advancements etc. For e.g. Tech
companies like Apple, Amazon etc.; retailers like Tesco, M&S and more.
Social Entrepreneurship: This type of entrepreneurship concentrates on creation of products and
services on basis of societal pressures. Their ulterior motive is public welfare to make this world
into a better place (Dees, 2017). It has been classified on basis of three categories such as
profitability, non-profitability and hybrid. It gets drive by the perseverance to manage the
problems in context of community. Examples are educational programs, non-profit organizations
etc.
Typologies of entrepreneurship:
Serial
Entrepreneurship
This often defined as the one who comes up with ideas and
concepts by responsibly distributing tasks on the basis allocation
of resources for minimum profit generation with sales volume.
They are known for innovation and bringing new conceptions on
the table.
Aggressive ventures They are the ones who are helping those companies to recover
from poor state in terms of capital, investment etc. They
contribute in the Capitalism of venturing firms by renovating
aggressively into industrial marketplaces. Their main purpose is
to earn profits and only profits.
4

P2. Explore the similarities and differences between entrepreneurial ventures
Small
entrepreneurship
Scalable
entrepreneurship
Large
entrepreneurship
Social
entrepren
eurship
Differ
ences
Small
entrepreneurship is
based on small people
work together in the
organization.
There are 10-15
employee work
together.
Small business
generates less
revenger in the
organization.
Small business is
product oriented and
production
development with the
basis of research and
analysis (Burns,
2016).
Small business is
relatively short period
between the
application and
invention in the
business operations
and functions.
Scalable business is
Scalable business
generate very small
revenue generate
which is based on the
production and sale
Large
entrepreneurship is
the biggest business
to expand the
business all over the
world. There 500-
800 employee work
together.
Large business
generates more
revenue which is
beneficial for
organization as well
as country economy.
Large organization is
systematic approach
because they planned
long term benefits.
Product development
and production are
closely related to each
other.
Large business is
relatively long term
between the invention
and application in the
Social
business
is medium
organizati
on for
providing
the
service to
poor
people
and social
communit
ies. There
are 20-
employee
work
together.
Social
entreprene
urship is
also
known as
non-
governme
ntal
organizati
on. This
5

micro organization.
There are 5-8
employee work
together
business activities business
is only
beneficial
for the
society
and
communit
ies.
It is based
on startup
companie
s to
develop,
fund or
implemen
t solution
to the
social,
culture
and
environm
ental
issues
Simila
rities
Main aim of small
organization to
increase their business
and also increasing
their productivity and
profitability in
marketplace.
This organization is
Main aim of start-up
organization to
increase their
business and also
increasing their
productivity and
profitability in
marketplace
Large organization is
also increasing the
business activities.
Main objective to
build strong business
all over the world.
This organization is
also useful for
Large
organizati
on is also
provided
the
employabi
lity to the
people
6

also useful for
balancing the
economy of country.
Small organization is
provided the
employability in
people. It also
provides the
opportunities to their
customers
(Barringer, 2015).
Scalable organization
is provided the
employability to
people. It also
provides the
opportunities to their
customers. This
organization is also
useful for balancing
the economy of
country
balancing the
economy of country
according
to their
skill and
knowledg
e. It also
provides
the
opportunit
ies to their
customers
. Social
organizati
on is not
only
concern
about the
profit but
also
provide
the
service to
the poor
people.
Social
organizati
on is
provided
the
employabi
lity to
people. It
7

also
provides
the
opportunit
ies to their
customers
P3. Assess and interpret relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Small and micro businesses (SME’s) is referred as the backbone of United Kingdom
economy in which approximately 99.9 percent contributes to the employment generation, and
renovating the competition by challenging the marketplace opportunities that assist in stimuli
such businesses to grow and flourish. However, there are many struggles that has been seen
through survey, impacting on 63 percent of SME’s owners that the circumstances are challenging
and overwhelming. Along with this, 61 percent concluded that they have no confidence that they
have the resources and support to sustain in the marketplace for continuous three years
(Hardoom, 2015).
Micro enterprise can be refereed as a small business with less than ten employees and
cost of equipment and location must lie less than 2 million euros. Here, the operational level is
small, leading to a difficulty in its growth. For e.g. independent shopkeepers, mechanics, street
vendors etc. On the other hand, Small and Medium enterprise are independent companies
consisting of more than 250 employees as medium sized; whereas fewer than 50 refers to small
enterprise (Bridge and O'Neill, 2012). Here, the cost of operations is estimated from 10 million
euros to 50 million euros. For e.g. Warehousing, restaurants, wholesale trading and more.
There has been pressures after Brexit on UK economy which is in persistent stifling
position and is facing considerable amount of damages if such small and medium sized
enterprises are unable to survive in the marketplace due to fluctuations in inflation rates and
unstable economy. With respect to the above context, such businesses are in proximity for
trading with the non-EU countries that has risen significantly, especially in construction and
manufacturing sectors that leading from 1.4 % growth to 1.5% in the first quarters of the
8

financial year. According to The Federation of Small Businesses (FSB) who indicated towards
the nourishment of these small organizations as the doorway towards the UK’s growth,
particularly in the exporting factor (Allan, 2014).
. The following table put insights on the overall contribution of SME’s in the year 2017. It
has been recorded that 5.7 million businesses have been developed with an increment of 3
percent (41000) in the number of businesses employed and 4 percent (155000) enhancement in
no-employing businesses since 2016.
Population’s
composition
SME’s and economy Industrial Locations Trends in
business
population
1.3 million People
were employed in the
general category
whereas 4.3 million
accounted for non-
employing
businesses (The
economic importance
of small businesses,
2014). Along with
this, 2.6 million were
registered for
VAT/PAYE.
Such small and medium
scale businesses are
undertaking of
privatization with 99.3
percent during the initial
time and 99.9 percent
were either medium-
sized or small.
99.5 percent accounts
for SME’s in each
sector. It consists of
less than 1% in
quarrying, mining and
utilities sector.
Non-
employing
businesses has
an overall
increment of
197000, i.e.
approximate
79 percent.
9

Figure 1. Statistics with respect to SME’s of UK
(Source: Essential Facts about SMEs in the UK, 2018)
P4. Explain how important small businesses and business start –ups will contribute to the growth
of the social economy after ‘Brexit’
Brexit has the overwhelming evidence that there is an adverse uncertainty on the overall
effects on the UK economy. Although, there are speculations that its impact on small and
medium sized enterprises would be feeble, despite the fact that there are approximately 99
percent SME’s and account for almost 7.3 percent in the private sector (Student, 2017).
Therefore, there are higher chances that these might deal in exporting activities at global level as
it is considered as one of the five most important currencies of the world.
Reduction in poverty and wealth distribution: Its impact on the GDP is vast as the
influence on the activities of these businesses and buying-selling of products and services is
staggering. Falling GDP inclined that such small commerce or trade faces tussle to retain
themselves at marketplaces, predominantly when import from overseas are done. However, the
exporters are benefitted as a weak pound have been affected the profit generation in the UK’s
manufacturing industry. This drop in the value of pound has largely assessed the impact on the
10

trading system worldwide with unfavorable sovereignty of law making rules and regulations so
that the apparent pursuit has been confined to a single market. This is pushing the increased
pricing of good in the UK and has a huge impact as customers are getting pinched and agitated
because of this inflation rate (Raymond and St-Pierre, 2010).
Provision infrastructure and social amenities: There is a surprising picture that Brexit dint
accelerated panic and fear of losing on jobs. Surprisingly, there has been a rise in registration of
number of companies with an onset of startups in UK. The reason which has come into the light
is that digitalization has given wings to these owners to conveniently follow up the current trends
and simplified it as per the requirements to reduce the influx effects of these SME’s due to
Brexit.
Improved UK’s economic growth: It has been laid that certainty should be prevailed for both
companies and consumers to move ahead in the global competitive markets. Moreover, there has
been a decline in the growth rate of UK but on the other hand, it’s still in the preliminary stage.
Figure 2. SME’s percentage of UK
(Source: Brexit’s impact on small businesses, 2018)
P5. Carry out a mini-research to determine the characteristics, traits and skills of two successful
entrepreneurs
The world has great examples to understand the ethical behavioral pattern of
entrepreneurs. Here, J.K. Rowling and Sir James Dyson are considered to know about the
11

characteristics, skills and traits required for assessing the entrepreneurship (Do and Smallbone,
2017).
J.K. Rowling, native of small town Gloucestershire is touted as the first author with net
worth of one billion dollars in the history of literature of UK. She had her own hardships but
valiantly fought back and has become one of the wealthiest citizens. Her book “Harry Potter and
its series” has become a global brand. With her interest and compassion in writing, at the age of
30 after failed marriage, she completed her first novel which released in 1997 and became an
instant hit among kids. This book achieved recognition in the form of love for books again. She
used her tact and quick decision making and signed a contract for turning her first two books into
movies by Warner Brothers, for a substantive amount. Few of her traits and skills are as follows:
Traits
Self-belief and hard work:Despite several setbacks like getting divorced at early age with another
responsibility of a kid, she never gave up and with more determination and faith she contributed
her journey by doing small jobs with lots of challenges. Moreover, when she finished her first
draft and sent it to various publishers, she was rejected for twelve times, yet she continued doing
her work with sincerity.
Adaptable with forward looking approach:When she had to move out of her husband's home, she
did not lose her confidence and shifted to France for her daughter's sake. She always looked
ahead and kept trying to achieve the best for her and her daughter.
Skills
Interpersonal skills: She was good at communicating her decisions, ideas to other in proficient
and smooth order. She easily motivated youth to imbibe good habits for bright future and giving
solutions through employing initiation and proactive approach.
Creativity: She has easily applied ideas into innovative designs by focusing on her self-belief and
confidence to convert the specific chances into possible tactical strategies. She was disciplined
and open minded towards accomplishing all the objectives and potentiality to earn name, fame
and financial gains. Along with, Rowling signed deal with Warner brothers and took then control
on the films by reviewing all aspects related to production and modifications in scripts.
12

On the same lines, Sir James Dyson is an industrial design engineer who founded Dyson
Company and Runs University, schools etc. with and many philanthropist works. He was the
creator of Dyson vacuum cleaner and later invented a Control-Rotator washing machine, Dyson
Air blade, use of lithographs. He was flexible and motivated to differentiate between the market
and product awareness and assisted his team by effective planning to launch all the inventions on
schedule. The following are the traits and characteristics of Dyson:
Traits
Determination: He started the entrepreneurial ventures by understanding the financial
management in their collaborations and expansion of products into newer dimensions.
Passion: He always focused on the goals to complete it in the best possible manner to attain
maximum results and productivity through utilizing all the allocated resources. This
characteristic helped him to fetch success and profits in leaps and bounds
Skills
Strong work ethics: He is committed to work and is never discouraged by any defeat or obstacle.
His professional level is intact and did not waver by any illness (Brandstätter, 2011). He is
among positive people who look forward to moving in forward direction.
Leadership: He is a remarkable individual when it comes down on strategic decision
making, along with using the technical skill to the fullest. He is a visionary and lead his
company towards the success and profits that has a huge effect on his task-force.
P6. Assess how aspects of the entrepreneurial personality as discussed in P5, reflect
entrepreneurial motivation and mindset
Entrepreneurial motivation and mindset has a widespread reach depending on the
orientation of human mind to conduct the entrepreneurial activities and outcomes. They have a
mindset that assist in connectivity with people as they assess the implications and opportunities,
attached with the failure or success of their ideas. They have self-assurance and clarity of thought
that helped them in gaining momentum for achieving their purposes and goals.
13

The following traits and skills, that motivate them in having a constant mindset in attaining all
objectives and are as follows:
Interpersonal skills: With effective skills in terms of communication, decision-making,
negotiation and problem solving, all entrepreneurs including Rowling and Dyson have
implemented these skills in proficient manner. They have outlined the fluctuations in optimistic
manner and led the innovation as the motivating factor to bring change in their managerial
outlook to adopt a flexible 360 degrees’ approach.
Creativity: This trait is based on an individual’s imagination to bring originality in the world by
setting up it as an occupational business and harness its essence for generation of revenues.
Rowling’s creative mindset led to the historic characterization of Harry Potter and the world of
magic and swiftly reached public’s hearts with a holistic viewpoint of capitalism and financial
gains by converting it into stereotypical business.
Determination: When Dyson failed while making prototypes and failing it constantly, it was
perseverance only which kept him moving. His grit pushed him to make his dream into the
impossible vision of reality. His dynamism paved a path of glory and brought laurels to him. He
in return became capable of giving back to society by many donations and philanthropist works.
Strong work ethics: They have a strong professional outlook with enactment of discipline and
punctuality in their lives. They deal with business dilemmas in appropriate mode by modifying
themselves to the current circumstances. The fundamental basis must be emphasizing on the
good ethical behavior by inculcating a sense of integrity and courage to take risks. Many a time,
they were attracted to take shortcuts, however, their morality between right and wrong,
conscience and principles played pivotal role in achieving the position they are enjoying now.
Passion: Their commitment is to set the benchmark so that everybody gets motivated through
their failures and lessons shown through their stories. It’s clearly indicated that every
entrepreneur has profound level of hunger in order to attain their desires and budding
opportunities so that sustainable development can be fostered thorough strong motivational setup
(Hall, Daneke and Lenox, 2010).
14

P7. With practical examples, examine how background and experience can hinder or foster
entrepreneurship
In regard to understand the effects of background with experience that foster
entrepreneurship is as the following:
J.K. Rowling is one of the sought after authors today. However, she struggled a lot before the
publication of her first book. She was a victim of domestic abuse and got divorced with an infant
daughter, homeless and bankrupt. Her 7 years after graduation made her believe as a failure and
led to depression and sense of aloofness and suicidal tendency. Although, her teaching
experience helped her to work at Edinburgh University, where she finished her first book. Yet,
her hardships dint end there, she was rejected by 12 publishing houses in the span of one year.
Later, she met Barry Cunningham, whose daughter demanded another chapter after reading the
manuscript and rest is history.
Another personality who showed that entrepreneurship is in the blood and sweat of individual,
Sir James Dyson who is a celebrated engineer of UK by channelizing his passion into creating a
fortune of high-tech Dyson ball vacuum cleaner, dual cyclone and more such ground-breaking
creations. In 1983, after spending sleepless nights with approximately 5127 failed prototypes and
by surviving for five years on his wife’s salary, he launched vacuum cleaner by collaborating
with Dyson of Japan. Initially, he got no distributors for his invention in UK and after more than
ten years, it entered the UK market and turned out to be the fastest selling vacuum cleaner.
However, his “out of engineering box” inspired youth that consistent efforts paved the
path to success and self-growth of his entrepreneurial ventures. Along with this, J.K. Rowling
also showed immense amount of tenacious courage and self-belief would have helped an
individual to overcome all the challenges and shortcomings (Zhao, Seibert and Lumpkin, 2010).
On the other hand, their backgrounds and harsh experience were similar in terms of people not
believing them and were discouraged but later, their breakthrough success stories are stimulating
and encouraging for the entire generations to take account for. They took this familiarity by
applying knowledge into their strides in positive manner. Subsequently, people must always have
clear mindset with stout traits so that can take risk to create something beautiful and convert their
new and fresh ideas into a venture.
15

CONCLUSION
It is summarized that entrepreneurship has an influential part in overall economy of UK. Its
typology has an impact on the workings of all businesses from different sectors and also assisted
in the creation of venture by attracting potential investors and shareholders. Along with this,
Brexit has also impacted the UK’s currency unpleasantly but there is a scope of improvements.
Consequently, the hardships of J.K. Rowling and Sir Charles Dyson has been described briefly to
understand their personality traits and mindset that helped them to achieve a status in the society.
16

REFERENCES
Books and Journals
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Brandstätter, H., 2011. Personality aspects of entrepreneurship: A look at five meta-analyses.
Personality and individual differences. 51(3). pp.222-230.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
DeTienne, D.R., McKelvie, A. and Chandler, G.N., 2015. Making sense of entrepreneurial exit
strategies: A typology and test. Journal of Business Venturing. 30(2). pp.255-272.
Do, H. and Smallbone, D., 2017. UK SMEs' entrepreneurial behavior and planning in BREXIT.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5). pp.439-
448.
Raymond, L. and St-Pierre, J., 2010. R&D as a determinant of innovation in manufacturing
SMEs: An attempt at empirical clarification. Technovation. 30(1). pp.48-56.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial Times
Prentice Hall.
Student, A., 2017. To examine the effect of the post Brexit influence on small business
owners’(SMEs) and their expectations (Doctoral dissertation, University of Chichester).
Zhao, H., Seibert, S.E. and Lumpkin, G.T., 2010. The relationship of personality to
entrepreneurial intentions and performance: A meta-analytic review. Journal of
management. 36(2). pp.381-404.
Online
Allan, J., 2014. Small businesses are the UK's greatest advantage. [Online]. Available
through:< https://www.theguardian.com/business/blog/2014/jul/02/uk-small-businesses-
look-overseas-growth>.
Brexit’s impact on small businesses. 2018. [Online]. Available through:<
http://theconversation.com/brexits-impact-on-small-businesses-the-experts-may-be-spot-
on-after-all-90561>.
Hardoom, A., 2015. The importance of small businesses in the UK economy. [Online]. Available
through:< https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-
economy-2492626/>.
17

The economic importance of small businesses. 2014. [Online]. Available through:<
https://www.yesgrowth.com/knowledge-centre/sme-issues/the-economic-importance-of-
small-businesses/801747318>.
18

19