Entrepreneurship and Small Business: Ventures and the UK Economy

This essay provides an overview of entrepreneurship and small business management, exploring different types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It discusses the similarities and differences between various entrepreneurial ventures, interpreting data and statistics to illustrate the impact of micro and small businesses on the economy, particularly in the UK. The essay also explains the importance of small businesses and business start-ups to the growth of the social economy, highlighting their role in innovation, job creation, and contribution to the GDP. It references various books and journals to support its analysis of entrepreneurial activities and their economic significance.

Entrepreneurship and
Small Business
Management
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Study different kinds of entrepreneurial ventures and describe how they relate to the typology of
entrepreneurship...............................................................................................................................3
Explore the similarities and differences between entrepreneurial ventures.....................................4
Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy....................................................................................................................5
Explain the importance of small businesses and business start-ups to the growth of the social
economy...........................................................................................................................................6
REFERENCES................................................................................................................................8
Books and journals......................................................................................................................8
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INTRODUCTION
The act of becoming an entrepreneurial, or one who pursue expansionary, money, and business
skills in an attempt to translate inventions into commodities, is defined as one who pursue
expansionary, financial services, and industry knowledge in an attempt to modernize innovative
ideas into production factors. Creating new firms is the most evident kind of entrepreneurs. An
entrepreneur is a person who starts a new firm and bears the most of the risks while reaping the
majority of the benefits. Entrepreneurship refers to the process of starting a business (Zin and
Ibrahim, 2020). The entrepreneur is frequently portrayed as a pioneer, a provider of novel ideas,
products, services, or business processes. This file covers different ventures which are related to
their typologies, their differences, micro and small firms’ effect on the economy and importance
of small businesses. This will also cover characteristics, traits and skills of entrepreneurs and
how background can hinder or foster entrepreneurship.
Study different kinds of entrepreneurial ventures and describe how they
relate to the typology of entrepreneurship.
An enterprising venture is when a company seeks out potential candidates and practises in terms
of achieving its primary objectives of productivity and expansion.
Small Scale: Entrepreneurial enterprises work on innovative, creative goods and services,
whereas small firms often deal with well-known and existing goods and services (Staniewski and
Awruk, 2019). As a result, smaller businesses like Baby sitting in UK cope with recognised
dangers whereas innovators cope with unpredictable hazards.
Large scale: They employ more people and have a much more sophisticated organisational
structure than medium-sized firms. They do a large number of commercial activities on a regular
basis. A vast amount of customers, professional relationships, and a massive supply of corporate
communications like Unilever are typical characteristics of such firms.
Scalable: Scalable start-up founders collaborate with technical improvements to enhance people
and find answers to existing challenges. Scalable start-up businesses recruit domestic and
international capital and produce revenue, boosting Income per capita.
Social: A social venture, often known as a social company, is a firm that puts social benefit over
profit. Unltd is a social ventures frequently use their goal to market their products.
Here are some of the typologies of entrepreneurship which are related to its ventures:
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Male: Being innovative and a leader, who readily thinks up with insights and commercial
chances, are highly related with having an innovative mind-set. Their findings show that male
potential entrepreneurs have a more Aggressive analytical approach and that is why that are
mostly handling large scale ventures.
Female: This sort of woman entrepreneur is typically from mostly rural regions, and she chooses
a business that is a good fit for her expertise and talents. This company does not necessitate any
unique expertise, nor does it necessitate a large initial commitment with a minimal risk. So most
of the female entrepreneur handles social venture.
Survival: Entrepreneurs that want to survive must comprehend the growing requirements and
behaviours of the industry they serve, and they must introduce innovative to better their services
or products. Besides survival, businesspeople born as a result of the epidemic should see
business as a manner of living. These kinds of people are mostly scalable ventures as they will
help in increasing more and more growth.
Lifestyle: A lifestyle entrepreneur is someone who starts a company with the goal of improving
their life rather than gaining money (Doran, McCarthy and O’Connor, 2018). This aspect of this
approach may be a better match for anyone if they want to live in a way that is not exclusively
based on producing income. These kinds of people are mostly small scale ventures as it is helpful
in always bringing something new in the market.
Explore the similarities and differences between entrepreneurial ventures.
Many parallels and contrasts have become apparent after contemplating on various forms of
business organization. The following table lists the similarities and differences.
Similarities:
The most obvious commonality across the businesses is that they all aim to create value. It is, by
definition, at the core of entrepreneurship. The corner hairdresser adds value by cutting hair,
eBay adds value by providing an online store for used goods, science students add interest by
researching cures or medicines, and Bank adds value by making microfinance accessible.
Entrepreneurship would be nothing without this valuation idea. Another resemblance is that they
all include some form of modern (except small businessentrepreneurship).
A company must think beyond the box in order to give value in new ways. It is critical that these
businesses are based on original concepts, since otherwise, the opportunities to deliver value
would be restricted.
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Differences:
It is apparent that various kinds of initiatives have more variances than commonalities. Social
businesses, for example, are not there for the money. While other types of businesses produce
value in order to be profitable, social enterprises create value in order to improve the world.
Another distinction is the quantity of investment (or seed money) required. Small firms wouldn't
need a lot of money to get started; nevertheless, scalable enterprises demand a lot of money from
venture capitalists.
The initiatives are also supported by a variety of sources. Small company owners can utilise their
own funds or borrowed from family members or friends to establish their businesses. Big
investment banks and investment firms are needed in greater numbers for scalable company
projects (Lumpkin, Bacq and Pidduck, 2018). Large-scale business, as the name indicates, is
sponsored by the corporation themselves.
These businesses have different levels of risk. It is simple to see that tiny company endeavours
do not pose a significant risk, but scalable firms backed by huge financiers do. Since smaller
firms are founded on well-known concepts, the dangers they entail are likewise well-known.
However, the principles or principles used by scalable and large-scale business are still to be
proven.
Interpret and assess relevant data and statistics to illustrate how micro and
small businesses impact on the economy.
Micro and small businesses make up a large portion of every industry and make a significant
contribution to a country's economy (Gupta,Wieland and Turban, 2019). The amount of micro
and small enterprises that earn significant income by supplying an array of goods and services to
clients is growing throughout time.
In the United Kingdom, the number of major companies is significant in several industries, with
over million SMEs operating across the country, accounting for about 99 percent of all firms. As
a result, the money made by those enterprises contributes significantly to the UK's GDP
(Montiel-Campos, 2018). Many of the firms are classified as micro businesses, employing only 0
to 9 workers. Those firms account for a smaller share of total workforce and mobility.
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Figure 1Business type of micro and small businesses in the UK
There are four types of small and medium enterprises: innovators, non-innovators, exporters, and
non-exporters. Those firms make money whether they innovate or not, and many of them export
goods and get different reserves, contributing to the UK economy.
Explain the importance of small businesses and business start-ups to the
growth of the social economy.
Start-up firms have a significant effect in many nations in order to sustain the expansion of the
social economy. In comparison to other firms, startup enterprises frequently come up with
unique product and service concepts that can suit the needs of customers. Aside from that,
fledgling enterprises may occasionally conquer the market quickly and earn larger income in a
short period of time. In this procedure, such enterprises must pay a large amount of business tax,
which is beneficial to a country's growth (Hoque, 2018). Apart from that, entrepreneurs recruit
employees in order to manage their businesses, which aim to minimize poverty in a nation.
To boost customer value, many companies are involved with various forms of CSR initiatives
relating to societal, ecological, and trade problems. Those firms give education to persons in
remote locations or with limited financial resources using this approach. Those individuals may
utilise their knowledge to obtain employment in the future, which will aid in economic success.
Aside from that, the UK has a substantial percentage of beginning enterprises in many areas, all
of which contribute significantly to the country's GDP (SME'S outsized contribution to the UK
economy. 2019).
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Figure 2 SME'S outsized contribution to the UK economy
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REFERENCES
Books and journals
Zin, M.L.M. and Ibrahim, H., 2020. The influence of entrepreneurial supports on business
performance among rural entrepreneurs. Annals of Contemporary Developments in
Management & HR (ACDMHR), Print ISSN, pp.2632-7686.
Doran, J., McCarthy, N. and O’Connor, M., 2018. The role of entrepreneurship in stimulating
economic growth in developed and developing countries. Cogent Economics &
Finance, 6(1), p.1442093.
Lumpkin, G.T., Bacq, S. and Pidduck, R.J., 2018. Where change happens: Community‐level
phenomena in social entrepreneurship research. Journal of Small Business
Management, 56(1), pp.24-50.
Hoque, A.S.M.M., 2018. The effect of entrepreneurial orientation on Bangladeshi SME
performance: Role of organizational culture. International Journal of Data and Network
Science, 2(1), pp.1-14.
Montiel-Campos, H., 2018. Entrepreneurial orientation and market orientation: Systematic
literature review and future research. Journal of Research in Marketing and
Entrepreneurship.
Staniewski, M.W. and Awruk, K., 2019. Entrepreneurial success and achievement motivation–A
preliminary report on a validation study of the questionnaire of entrepreneurial
success. Journal of Business Research, 101, pp.433-440.
Gupta, V.K., Wieland, A.M. and Turban, D.B., 2019. Gender characterizations in
entrepreneurship: A multi‐level investigation of sex‐role stereotypes about high‐growth,
commercial, and social entrepreneurs. Journal of Small Business Management, 57(1),
pp.131-153.
SME'S outsized contribution to the UK economy. 2019. Online available through:<
https://www.ft.com/content/2bef51e5-f581-4ef5-af95-3c344ed7a238>
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