Entrepreneurship and Small Business Management Report - Desklib

This report provides a detailed analysis of entrepreneurship and small business management, covering various aspects such as types of entrepreneurial ventures (small, large, and social), similarities and differences between these ventures, and the impact of micro and small businesses on the UK economy. It highlights the importance of business start-ups and small businesses in promoting entrepreneurship, innovation, and environmental protection. Furthermore, the report discusses the characteristics and skills of successful entrepreneurs, using Simon Arora as an example, and explores factors that hinder or foster entrepreneurship. The conclusion summarizes the key findings and emphasizes the significance of small businesses in contributing to the UK's economic and social well-being. This resource is available on Desklib for students seeking comprehensive study materials.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1: Types of entrepreneur venture...............................................................................................1
P2: Similarities and Differences Between Entrepreneurial Ventures..........................................2
LO2..................................................................................................................................................4
P3: Impact of Micro and Small Businesses.................................................................................4
P4: Importance of Business Start-ups and Small Businesses......................................................5
LO3..................................................................................................................................................6
P5: Characteristics and Skills of Successful Entrepreneurs.........................................................6
P6: Reflection of Entrepreneurial Personality.............................................................................8
LO4..................................................................................................................................................9
P7: Hinder and Foster Entrepreneurship......................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship includes launching, running a new business and designing in the market
on a small scale and the person who does this would be known as entrepreneur. There are a lot of
risk factors which an entrepreneur has to take so that they can run their business successfully in
the market. The report would consist of types of ventures, strategies and planning for the
companies accordingly. Characteristics and traits of entrepreneur and how motivation works in
them which makes their business so successful.
LO 1
P1: Types of entrepreneur venture
There are three types of ventures in a business which have different methods and rules to
function in the market. These stages help the entrepreneurs to make their decisions accordingly
so that they can have a better functioning for themselves.
Small Venture
There are limited shareholders in the company and the profit is also shared by the limited
shareholders in the organization. The transparency factor is also shared between the employees
of the company only. The focus of the company is to make the organization have a better market
and increase their sales so that they can have a better functioning and have a better profitability.
Chances of having conflicts in the organization are low which is a great advantage but a
disadvantage for the company as well because there are limited ideas which generate in this set
up. Example Iceland company which is a retailer in United Kingdom which is in the market only
to gain profit and not for any other benefit of the society.
Large Venture
There are limited shareholders in the organization but anyone can become a shareholder
who do not have to be associated with the company. There has to be transparency in the
organization so that they can function effectively. The strategies have to be made properly so that
they can have a better functioning for themselves so that they can make the company have a
better profit which can be given to the people who are holding a share in the organization. There
are a lot of conflicts which can take place in this type of venture because all the shareholders
have a say in the company (Stubbs, 2017). Example, British Petroleum has more than 73,000
employees and is a huge organization which requires a lot of shareholders.
Social Venture
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These ventures are non-governmental and non-profitable in market which is not in the
market for a benefit but in the market for getting the lifestyle of the people better (Belitski and
Heron, 2017). These ventures have a lot of transparency in the organization so that they can get
people to invest in their venture and the company will be able to have a better charity for
themselves. Showing the people who are giving charity is also important therefore they have to
get a better functioning for themselves. Example of this venture is The Children's society which
is in the market so that the people can change their thinking and the society can have a positive
attitude towards the young people or children of the world.
P2: Similarities and Differences Between Entrepreneurial Ventures
There are similarities and differences are existing between different entrepreneurial
ventures like public, large and social (Darnihamedani and et.al., 2018). Some major similarities
and differences between these ventures has been discussed below;
Similarities
 Brand Image: Large, public and social, each venture wants to improve their brand image
in respective market. These ventures do many tasks or things to increase standard of their
brand name within their areas. This is really very common similarity between these all
ventures.
 Role of Resources: All entrepreneurial ventures are needed to use different sources in
their daily operations, like; human resources, natural resources, technological resources
etc. There is human resource most appropriate source for these ventures, because within
support of employees a venture can't achieve its goals in decided time period.
 Potential Funding Sources: Each entrepreneurial venture need to find appropriate
funding source to raise needed fund. That's why these funding sources plays great role in
each type of ventures (Neck and Corbett, 2018). All entrepreneurial ventures can easily
fulfil their financial needs with support of these potential funding sources.
Differences
Basis Public Ventures Large Ventures Social Ventures
Size Public ventures always
has large operational
size, because they
always run their
Operational size of
large ventures is
always very larger. For
example; Iceland
Most social ventures
has very small
operational size,
because social
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business operations at
the large scale.
Companies of business
which comes under
public ventures are
always gained large
market share in
different industries.
For example; British
Petroleum is a public
company, and it has
large operational size.
company. Businesses
or companies which
comes under large
ventures are mostly
runs their business
operations in large
scale etc. because most
large ventures are
capable to run their
operations in
international market.
ventures mostly
operated in a town,
city, region and
country. For example;
The Children's
Society, UK. These
ventures always has
very small operational
scope as well.
Operational Cost Operational cost is
always very high in a
public venture,
because it runs their
business operations at
a very large scale
(Dvouletý, 2017).
Companies under
public ventures are
needed on invest on
technology. That's
why operational cost
within these ventures
is very high.
In large ventures,
operational cost is
always in higher level
in the comparison of
public ventures.
Reason is, a company
within large venture
need to invest very
high amount on
technology and all.
Operational cost
within social venture is
depends on its size, in
which most social
ventures are running
their operations in
small scale, so they
have no high
operational cost. In
short, operational cost
of social ventures is
lesser than most public
and large ventures.
Role of Shareholder Companies or
businesses which
comes under public
ventures are always
Most large ventures
are sell their shares
publicly also like
public venture.
Shareholder plays no
role in social ventures,
because companies
under social ventures
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sold their shares
publicly.
raise their fund only
through membership,
charity and donation,
etc.
LO2
P3: Impact of Micro and Small Businesses
Definition of different businesses in the UK
Micro: A venture or business which has up to €2 million turnover and also has 0 to 9 employees.
Small: A venture which has up to €10 million turnover and also has less than 50 employees.
Medium-Sized: A venture which has €50 million turnover and also has less than 250 employees.
Micro and small ventures are currently giving their great contribution the UK's economy.
Currently United Kingdom is one of the richest countries in the world, in which these micro,
small and medium-sized businesses are main reason behind country's this reputation. Literally,
these businesses has putted very positive impact on economy of this country.
Currently 5.9 million businesses are operating their operations in this country. In these
5.9 million businesses, 5.82 million are only small, micro and medium-sized businesses
(Essential Facts You Should Know about SMEs in the UK, 2019). In this case, these 5.82 million
businesses are 99.9% of total 5.9 million number of businesses. That's why these micro and
small ventures are currently playing great role to the UK's economy.
When we talk about their yearly turnover, then we can find these small and medium-sized
businesses has gained turnover up to £2.2 trillion. In this case, this turnover is too effective,
because turnover of £2.2 trillion is 52% of all businesses' turnover. Year by year turnover of
micro, small and medium-sized businesses is increasing, which is very excellent to economy of
this country.
Existing number of small and medium-sized ventures is 5.82 million, while this number
of ventures is increasing by 3.5% growth rate per year. It means, UK's economy will able to take
great advantages from ventures in the future.
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Illustration 1: Market Share of Various Businesses in the
United Kingdom
Source: Essential Facts You Should Know about SMEs in the
UK. 2019
These micro, small and medium-sized businesses are giving great employment
opportunities to people in this country, because most people are depends only on these
businesses to do their jobs. Currently these ventures or businesses has offered 15.7 million jobs
to people in the United Kingdom, in which this these 15.7 million jobs are 60% of all jobs in this
country (Essential Facts You Should Know about SMEs in the UK, 2019). Other 40% jobs are
provided by large-sized businesses. So That's why these all businesses are playing great role for
economy of this country. Currently there are both ventures called large and public are giving a
huge contribution in UK's economy by paying great taxation. These ventures are providing very
amount as a taxation within UK's economy.
P4: Importance of Business Start-ups and Small Businesses
Small businesses and business start-ups are very important to growth the UK's social
economy. Currently social economy of this country is well-developed with the support of small-
business and start-ups. These businesses provide huge employment opportunities to local people
here, which is great thing under social economy. Reason is, employment promotes high leaving
standard in any place, in this case if people earn effective money by doing jobs in these ventures,
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then social economy will automatically get improved. Some major importance of small
businesses and start-ups has been discussed below;
Promotes entrepreneurship quality within youth: Small-business and start-ups plays very
important role in promoting entrepreneurship quality within existing youth. It means these
businesses or ventures motivate people to start their won business in this country. Many young
people become motivated and encouraged to start or open a new enterprise in the market through
existing small businesses and start-ups. This is how these businesses are helped to grow social
economy of this country.
Promotes Innovation: Currently many small businesses and start-ups are innovating new
products and services for the market in this country, in which this is also a great importance of
these businesses (Roberts, 2019). Reason is, when small business or start-up innovate new
exclusive product or service, then country is able to export that product or service to sell in other
country. At the end, with the support of this innovation factor, the United Kingdom can achieve
huge foreign exchange. Then finally social economy of this country will automatically get
improved.
Protects Environment: Both start-ups and small business plays great role in protecting
environment as well. Reason is, both fulfils their CSR (corporate social responsibilities) on time,
these are giving huge amount a charity as well. This CSR of businesses protect UK's natural
environment. These steps of ventures positively changing society.
Evaluation
Currently these small businesses positively impacts all levels of economy, like; local,
regional, national and international. For example; small ventures has provided huge employment
to people in this country. In this case, the United Kingdom is growing these all levels of
economy with support of huge employment opportunities. Currently people are able to easily
afford different products and services, because they have proper jobs. On the other side, other
businesses like medium and large-sized are also giving their great contribution the growth UK's
economy.
LO3
P5: Characteristics and Skills of Successful Entrepreneurs
A person is needed various effective characteristics and skills to become a successful
entrepreneur. These characteristics and skills are very helpful to an entrepreneur, because it can
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gain productive results in the market through these (Stubbs, 2017). There are major
characteristics and skills of Simon Arora has been discussed below. Simon is a very successful
entrepreneur in the United Kingdom, in which simon has effective characteristics and skills
which every new entrepreneur should learn to become a successful entrepreneur like as simon.
CHARACTERISTICS
Passionate: Mr. simon is too passionate for their work. He does not care about it a night or a day
to put their huge efforts in the work. He is completely believes in hard work. According to
simon, an entrepreneur is able to achieve great success, if it is an excellent hard-worker.
Risk Taker: Risk taker is another characteristic of Mr. simon which every entrepreneur need to
employ in their entrepreneurship, because many times an entrepreneur need to take very risky
decisions or steps to achieve success (Nielsen and et.al., 2017). That's why its is a major
characteristic of a successful entrepreneur.
Well Learner: Mr. simon has achieved great success in their entrepreneurial life, but he still life
to learn new things. That's why he listens their employee very carefully, because many times a
employee also gives great advise to grow the enterprise. In this case, every new entrepreneur
should build this characteristic in their daily life.
SKILLS
Creativity: Creativity plays very big role in any entrepreneurship. If any entrepreneur has
effective skills of creativity, then it will capable to achieve huge success in their career. Reason
is, creativity gives opportunity to a person to create or produce a productive product or service.
Communication Abilities: Proper communication abilities or skills are very necessary in any
entrepreneurship, because an entrepreneur highly need to communicate with different people,
like; employees, suppliers, customers, investors etc. In this situation, these skills help to an
entrepreneur to systematically deal with different people.
Effective Decision-Making: Effective decision-making skills are also highly needed to become
a successful entrepreneur (Chandra, 2017). Mr. simon has very effective decision-making skills,
because his most decisions gives productive results after implementation. That's why a new
entrepreneur need to improve decision-making skills to achieve positive result in the market.
Difference between entrepreneur and managers
Entrepreneur: A entrepreneur is a person who always see different business opportunities in the
market to run its new enterprise.
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Managers: Managers are basically those people who take management responsibilities in any
venture or business.
P6: Reflection of Entrepreneurial Personality
There are different entrepreneurs are operating their various enterprises, but these all
entrepreneurs not has same motivation and mind-set. All their own motivation and mind-set. In
this case, if any entrepreneur has motivation and mind-set to achieve big target in the
international market, then it will automatically able to run their operations of enterprise at the
international level. This is how a person's mindset and motivation works. On the other side, if
any entrepreneur has motivation and mindset to run an enterprise at the local market only, then it
will never capable to run their operations globally. A positive mindset and motivation is too
necessary in a person who wants to become a successful entrepreneur. In the case of Arora
brothers, both simon and bobby arora has very positive motivation and mindset. The time
when both newly entered the market, on that time both has decided to highly expand their
enterprise (Packard, 2017). Currently both brother are high successful in their business expansion
process.
When an entrepreneur starts a new enterprise, on that time it needs to avoid those all
elements which can negatively impact its mindset and motivation. Reason is, an entrepreneur
need positive motivation, mindset & mentality to become a very successful entrepreneur in
respective market like as simon and bobby. Currently these both brothers are inspiration to
many new entrepreneur, because both has excellent characteristics and skills. Currently many
entrepreneurs are existing in different market segments, but those entrepreneurs can capable to
achieve high success in all entrepreneurs which has effective entrepreneurial strategies. That's
why a person need to improve these strategies in daily operations to become a successful
entrepreneur. Many times an entrepreneur face many bad situations in operations of its
enterprise, in which its positive mindset is the only key which can help in dealing with those
situations. Currently many business trainers are available in the market which has given
strategies or techniques of build productive mindset and motivation (Belitski and Heron, 2017).
In this case, entrepreneurs need to take specific training from business trainers to improve
existing strategies. These are some appropriate strategies to an entrepreneur to gain huge
competitive advantage in the market.
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LO4
P7: Hinder and Foster Entrepreneurship
Background and experience of an entrepreneur are really influencing its entrepreneurship,
in which Arora brother are great example of hinder and foster. Both brothers are not comes from
a business family. Mr simon has graduated from Cambridge University, where he learnt how to
boost an enterprise in its initial stage. His time period of university, he completely gained full
knowledge of business. In this case, that knowledge which he gained in Cambridge currently
give great contribution in his daily actions (Hsieh Parker and van Praag, 2017). Simon's
experience help him to clear all concepts of different business situations. Many times he attends
various training sessions as well to more improve their skills and abilities to the
entrepreneurship. When he has started their business start-up, on that initial time period he has
faced many challenges. Currently simon uses that knowledge which they have learnt from own
experience and background. These all experience and knowledge of simon made him a
successful entrepreneur.
J.K. Rowling is next example as a successful entrepreneur. It is a most popular British
author, in which she is known for her series of Harry Potter books. She has faced huge struggle
in her life, because she comes from poor background. She has faced many challenges also she
starts writing. It has not taken her family support in initial stage, because her family not has
knowledge of book or novel writing. J.K. Rowling has putted her huge effort in her initial stage
of novel writing. It is too passionate to write something. That's why she is inspiration for many
entrepreneurs (Bylund and McCaffrey, 2017). In her one public interview she said, a person need
to learn about how to deal with different challenges, because once a person has learnt how deal
with challenges, then it will capable to achieve success in any field, like entrepreneurship, sports,
business, etc. According to these entrepreneurs, a person need to build a strong mindset to
achieve something. It needs to prepare itself to properly deal with different entrepreneurial
challenges. J.K. Rowling's experience, knowledge and skills currently has made her a successful
entrepreneur.
CONCLUSION
It can be concluded that there are various types of entrepreneurial ventures are existing in
the market which completely relating with different entrepreneurship typology. In some cases
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these ventures are similar to each other. On the other side, these ventures are something different
from each other as well. Currently micro and small businesses are giving great contribution in
the all over growth of UK's economy. These businesses are too important to the United Kingdom
to increase standard of its social economy. There are many effective characteristics and skills a
new entrepreneur needs to develop to become a successful entrepreneur. Positive motivation and
mindset is very necessary run all operations of enterprise on progressive path. Background and
experience of an entrepreneur can hinder or foster its entrepreneurship. An entrepreneur always
need to develop various effective entrepreneurial strategies it gain huge competitive advantage in
the market.
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