Report on Entrepreneurship and Small Business Management - Analysis

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and small businesses, exploring various types of entrepreneurial ventures, including small business, large scale, medium size, scalable, serial, social, and SME. The report then examines the similarities and differences between these ventures, followed by an analysis of the impact of micro and small businesses on the UK economy, supported by relevant data and statistics. Furthermore, the report discusses the crucial contribution of small businesses and start-ups to the growth of the social economy after Brexit, highlighting job creation and innovation. The report also delves into the characteristics, traits, and skills of successful entrepreneurs, assessing how their personalities and backgrounds influence their entrepreneurial motivation and mind-set. Finally, the report concludes by summarizing the key findings and insights.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1. Types of entrepreneurial ventures and typology of entrepreneurship.............................1
P2. Similarities and differences between entrepreneurial ventures........................................2
P4. Contribution of small business and business start-ups important in growth of social
economy after Brexit..............................................................................................................6
P5. Determining characteristics, traits and skills of two successful entrepreneurs................8
P6. Assessing the aspects of entrepreneurial personality reflect entrepreneurial motivation and
mind-set..................................................................................................................................9
P7. Examining the background and experience hinder or foster entrepreneurship..............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is defined as an activity of setting a business by facing financial risks
with a hope of earning profit for an enterprise (Alvarez‐Garrido and Dushnitsky, 2016).
Entrepreneurs have an ability of taking risks and get succeeded in an ever-changing and
competitive environment in a global market. Small business refers to as a company that is owned
and operated independently and is limited in size and revenue that depends on industry (Baum,
Frese and Baron, 2014).
Thus, following report consist of information about various types of entrepreneurial
ventures and their typologies along with similarities and differences. Furthermore, statistical data
about growth of economy in UK has also been presented. In addition to this, the contribution of
start-ups and small business impacts on economy after Brexit is also illustrated. Thus, following
assignment also highlights on characteristics, traits and skills of successful entrepreneurs along
with their reflection of personality helping in achieving success.
P1. Types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneur is someone who is taking initiative by organizing venture and is benefitted
to take opportunity to make decisions (Cowling, and et.al., 2015). They are one who assumes or
faces every types of risk and rewards of venture. Thus, they are innovator, as shares new ideas,
goods, services and business procedures. Hence, various types of entrepreneurial ventures and
their typology has been discussed below -
 Small business entrepreneurship- This type of entrepreneurship makes up a huge portion
and are a start up in business environment. Entrepreneurs of small firms mainly hires
family members or local employees for running their business with limited number of
resources and planning. Grocery stores, travel agents and street food vendors are
examples of small business entrepreneurship.
 Large scale entrepreneurship- In this type of business there are more employees, which
becomes difficult to manage business as compared to medium scale. It is an economic
group that includes profit making corporations with regard to their influence on social
and political policy specially. Hence, it refers to as a process to develop new ideas and
various opportunities in an established firm. Thus, they enhance competitive position by
improving organisational profitability.
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 Medium size entrepreneurship- This business grows slowly which results from successful
small size enterprises. Thus, revenues are earned which are set aside that will help in
forming buildings, equipment’s and employees needed to bridge gap between small and
large business.
Typology
 Scalable entrepreneurship- It consists of innovative ideas for repeatable business model
that turns company into large growth and earns high profitability. This business helps in
increasing revenue without high increment costs (Davis, Hall and Mayer, 2016). Thus,
scalability is an important factor for every entrepreneurs wishing to start a new business
or for them who wants to take old business towards new ones. Therefore, scalable
business model increases profits by growing revenues that helps in increasing growth of a
successful business.
 Serial business enterprise- In these types of business, entrepreneurs come with new and
innovative ideas on daily basis. Thus, specific goals are set so that they can easily
accomplish their tasks in a fair way. It plays a good role by giving innovative and unique
ideas to start a business. Thus, serial business entrepreneurs start new enterprise in short
period.
 Social entrepreneurship- In this type funds are developed and solutions are implemented
to social, cultural and environmental issues. Social entrepreneurs are innovators
considered as agents of change, solving social needs and problems by identifying positive
changes brought by people and programmes. Examples of social entrepreneurs are hamlet
Foods. Furthermore, it is known as doing business for a social cause by combining
commerce and social issues to improve lives of people who are connected to various
cause.
 SME- Small and medium enterprise plays a significant role in the growth of economy
that helps in generating employment and development of dynamic private sector. They
are non-subsidiary having independent firms which employs fewer employees.
P2. Similarities and differences between entrepreneurial ventures
Similarities
Similarities of entrepreneurial ventures has been discussed as per below context-
 They provide job opportunities to unemployed people which results in lack of poverty.
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 The business idea is surrounded by a new product or service rather than existing business
model.
 They start and runs business with limited resources and lack of planning.
 All business can benefit from an entrepreneurial mind-set to remain innovative and
creative whatever its size may be.
Thus, with every positivity there are some negative aspects. The differences of entrepreneurial
ventures are described below.
Bases of
comparison
Small business Medium
business
Large business Social business
1. Meaning It is a company
that is owned and
operated
individually
which has limited
size and revenue
that basically
depend on
industry
(DeSantola and
Gulati, 2017).
This type of
business
eventually bridge
gap between
small and large
enterprise by
earning revenue.
It is an
organisation
having huge
number of
employees and is
set up with
defined goals and
has vast human
and material
source that aids in
achieving
maximum profits.
This
entrepreneurship
includes
techniques from
which companies
take a start and
entrepreneurs
develop. They
have an exit
strategy and are
located in limited
locations.
2. Number of
employees
Number of
employees
working in small
scale business are
up to 50.
There are
maximum 250
employees
working in
medium size
business.
Large enterprise
employs more
than 250 people
in their enterprise.
Thus, employees
in social
enterprise are
unlimited. There
are no limits on
employees
working.
3. Purpose The purpose of
this
Its main purpose
is to minimise
Its purpose is to
achieve targeted
Its purpose is to
provide
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entrepreneurship
is to serve local
community by
satisfying needs
and provide
profits to owner
of enterprise.
differences
between small
and large
enterprise by
gathering capital
by way of
revenue earned.
objectives by
seeking help of
number of
members
involved in
process.
framework by
helping others
and find success.
4. Objectives To create
employment
opportunities with
fewer investments
is main objective
of small scale
business.
Its objective is to
be recognized as
one of most
representative and
effective
enterprise.
The main
objective is to
earn maximum
profit in limited
period.
Its main objective
is to design
operations in
order to earn
profit for social
impact and
survival of
organisation.
P3. Assessing relevant data and statistics and illustrating impact of micro and small businesses
on economy
Small business acts as a backbone in economy of UK (Durkin and Gunn, 2016). It
mainly means that any business having less than 250 employees. There were 5.4 million small
business enterprises in UK in 2016, which was over 99% of all concern. Micro firms have less
than 10 employees and there were 5.3 million micro organisations in UK in 2016 that accounted
for 96% of all businesses (The Definition of Small Business Management, 2018). It dominates
total business stock of UK by compelling 99.8% of enterprises in private sector. The role of
SMEs within industrialised of western economies and within economy of UK has continuously
won importance. Thus, growing importance of small business sectors results for many
developments which has been simultaneously taking place. First contribution of service sector
towards GDP of UK has been raised from 59 to 72 % over last three decades.
Hence, it also has crucial share in employment of UK by providing 58.5% of jobs in
domestic country's economy at the start of 2004. There was a decline in the number in past years.
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There was a clear record of 5.7 million private sector business at beginning of 2017 and it is an
increase since 2016 by 1,97,000 and 2.2 million more from year 2000. Thus, employment in
business number has increased in 2016 by 41000 i.e. +3% and number of non-employment
increased by 155,000 i.e. by +4%.
Furthermore, there were 99.9% business of small and medium sized that accounted for
99.3% of all private sector in beginning of year 2017. Their total employment was 16.1 million
which means 60% of all private sector employment. Hence, combined annual turnover was
around 51% which means $1.9 trillion of all private sector in UK. In addition to this, there were
1.3 million business that are giving employment and 4.3 million others in year 2017. Therefore,
76% of business did not employ anyone. There were three main legal forms that were included in
overall business population as number of sole proprietors were 3.4 million i.e. 60% of total
number and companies were 414,000 which means 33% and 7% of ordinary partnerships.
There were sustained growth in total business population which accounted for 2.2 million
in 2000 and 197,000 in 2016. Majority of population growth was due to non-employing business
since 2000 that accounted for 89%. Small scale enterprise has increased in last year by 7% and
2%, i.e. 128,000 and 76,000 respectively. Construction sector organisation accounted for 18% of
total business but employment level was 8% and turnover level was also 8%.
In addition to this, the recordings of value added tax (VAT) in UK registered which do
not support expectation of low business rate. Hence, 66.5% of business registered in 1999 that
appeared in VAT survived at least 3 years.
It has been analysed that revenue of small business has great impact on economy of UK
and medium scale firm does not have much significant influence. Therefore, about 99% of total
business consists of small and medium enterprise and there is a high competition among various
industries in UK economy. While in medium sized there are high employment opportunities as
compared to micro business.
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P4. Contribution of small business and business start-ups important in growth of social economy
after Brexit
Small business and start-ups plays a crucial role in growth of social economy after Brexit
(Brexit: opportunity or threat for small businesses and start-ups,2017). It has been shown
consistently in extensive literature that creating a new business drives economic prosperity.
Small scale business is thus critical for growing in innovative way and plays very important role
in increasing competition between rising sectors and act as a core for generating employment in
industry. Many small business are opening opportunities of employment for rural and local
people that leads in increasing economic growth and it acts as a important component for growth,
sustainability of economy in UK. Thus, their importance in growth of social economy has been
discussed below -
Job Creation- Entrepreneurs provides jobs to multiple job seekers as they are owner of a
particular enterprise. (Fouzdar, and Sachdev, 2017). Majority of adults in UK first entered into
business world by working for small scale enterprise. Hence, it becomes basic goal for growth of
economy and development. Thus, being a healthy reason for increasing economy and
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Illustration 1: Statistical data
(Source: UK Economy Expands 0.4% in Q2, 2018)

employment level some businesses in UK are playing critical role in increasing financial
structure of company and standard of living significantly.
Innovation- Small firms lists of important innovations has increased that includes air
plane, air-conditioning, DNA fingerprinting, oral contraceptives and overnight national delivery.
The entrepreneurs of small business are more creative in finding new ways for doing old things
that helps in increasing economic growth to a large extent in UK.
Opportunities for women and minorities- small business thus act as a portal through
which many people can enter into economic mainstream. Owner of business mainly allows
women and minorities for achieving success and pride in their objectives. Thus, from past years
there is sustainable increase in number of business that is owned by women and minors.
Balanced regional development- Some small business is getting located in rural areas
that helps in development of agricultural areas economically. Thus, with increase in industries in
rural or backward areas will help in improving infrastructure like roads, railways, electricity,
water supply etc.
Creation of wealth- Owners invests their own resources in business which leads in
attracting capital from various investors or public. Thus, it helps in increasing wealth and people
enjoy benefits for growing business. Hence, this capital consumed by them creates wealth and
becomes basic imperatives for economic development. Therefore, it acts as an important factor
that provides entry for small enterprise towards large market which helps in leading currency
inflows and development in economy of country.
Export- Exports plays a vital role in growing business abroad. Thus, new start-ups and
small businesses would like to grow by trading in other countries that helps in increasing
economic growth of domestic country (Goffee and Scase, 2015).
Thus, scope of entrepreneurial ventures is tremendous in developed country and they are
important for every level of company. As there is decrease in recession, the scope and
development sectors are increasing. So people in UK invests mainly in new business rather than
old one and young generation are focusing to start a fresh enterprise rather than doing job. In
order to operate smoothly, every types of venture’s format are important and people nowadays
have become creative so they try to combine other ventures in enterprise. Scope and
development is open mainly for small business and start-ups as they lead in high profitability.
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P5. Determining characteristics, traits and skills of two successful entrepreneurs
Entrepreneur refers to the one having capacity and willingness to manage business by
developing new and innovative ideas along with maximum risk bearing in order to make profit in
business (Hoogendoorn, 2016). Thus, along with ability and skills, it is necessary to have passion
too which helps in achieving profit. Hence, this term has been discussed by taking two successful
entrepreneurs into consideration which are-
Simon Cowell
Simon Cowell is a judge and producer of English reality television. He has judged many
shows like Pop Idol, X Factor etc. Cowell is the principle founder and chief executive of British
entertainment company.
Characteristics-
 He is a well-known judge but his opinions are honest which really makes him stand out
as compared to other judges.
 Simon is positive and lively person who has an energizing effect on others.
 He seems impelled to be always in motion and is energetic as he gets involved in too
many activities.
Skills-
 He has an ability to entertain and enjoy with creative ideas and possibilities, and seeks
new solutions to problems.
 He has tendency to overextend himself without taking time to regroup.
 He has ability to do various tasks at one time.
Traits-
 As he is a judge so he gives true comments. He never hides truth to make them feel
better.
 He makes them know exactly about themselves by showing them their weaknesses.
 He is idealistic and don’t get disappointed that he doesn’t live in a perfect world, but he
introduces new ideas and make positive changes that helps him feel enthusiastic.
Richard Branson
Sir Richard Branson is an English Business magnate, investor, author and philanthropist.
He is the CEO of virgin group and has donated hundreds of millions of dollars to various trusts.
His first venture was a magazine named Student.
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Characteristics-
 He is a big dreamer and breaks rules to achieve what he wants by taking all types of
risks.
 He thinks that success is not gained by single person, building team is significant to
achieve desired goals.
 He respects his staff by taking time to listen over their situation which in turn makes
employees to be loyal to the company.
Skills-
 He acts as an amazing leader by ensuring that he has genuine knowledge.
 He has an effective communication skill that helps in growing strong human connections
which helps employees to grow and learn to progress in that field.
 He always waits for right time to achieve particular objectives which decreases chance of
facing failures.
Traits-
 Richard Branson has a good quality of making things happen on time by putting thoughts
into action.
 He has determined personality to have dedication to achieve types of entrepreneurial
goals.
P6. Assessing the aspects of entrepreneurial personality reflect entrepreneurial motivation and
mind-set
Entrepreneurial personality means human characteristics, abilities, motives, attitudes and
values that helps in shaping individuals experience and actions (Kickul and Lyons, 2016). In
other words, it is defined as having combination of various qualities that forms character of
individuals. Thus, it has been analysed that integrating motives and personality traits it becomes
possible for entrepreneur to advance their mind-set. Thus, entrepreneur is an actor that has ability
to carry out innovations in business and has a will to change with behaviour of passive adaptive.
Hence, realising ideas is prior motivation rather than earning profit. Entrepreneurs mainly focus
on their dreams of achieving a particular goal so they have an ability to face challenges.
Thus, it is obvious that business cannot be run by one single person, as if it is managed by
one person it may lead to failure. There is a chance of disappearing from market after facing
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challenges that leads to failure. Hence, making money is not unimportant also as it is needed to
build an organisation and to pay employees and collaborators. It is analysed that certain
personality traits correlate with motives of businessperson. Therefore, it is important to
understand mind-set of entrepreneur by motivational structures and personality traits.
It is known that entrepreneurs have passion to make things happen easily which leads in
pulling business to various heights and has persuasive characteristics (Picken, 2017). In order to
achieve success, there are various abilities of entrepreneur which includes innovative nature,
creative mind and risk taker. However, it is also being analysed that certain motives and
personality characteristics plays significant role in making an entrepreneur. Thus, as far as
motivational structures are concerned, majority of self-employed appear to express similar work
related motives. Hence, as it comes to personality traits that is associated with such motives the
link between motives and personality attribute is cleared.
P7. Examining the background and experience hinder or foster entrepreneurship
It has been analysed that there is a relation between entrepreneurial characteristics and
view of a person (Rainnie, 2016). Sometimes, background of particular individual acts as a
burden on them. Thus, some entrepreneurs are lucky to have such qualities and traits that leads
them to success and overcome burdens they have. They have got experiences of real life which
helps them to stand alone at stage of starting a business. Hence, personality of an individual is
mainly achieved or developed by education and state of life (Storey, 2016). The strategic way of
an entrepreneur is to set a vision and implement on that to achieve targeted objectives.
Personality and quality like self-motivation, coordination, etc. is very important in every
individual to be a successful entrepreneur which is derived with help of education and life
experiences. Thus, effective entrepreneurship brings positive change in market that leads in
achieving success (Wever and Keeble, 2016).
For example- Richard Branson has an ability of risk taking that is derived from his
experiences in past and this ability helps him to achieve great success in life. He finds that with
every challenge in life there is a knowledge or lesson for individuals. Thus, it has been analysed
that background becomes main aspects that affect success. Likewise, Richard Branson and
Simon Cowell were also interrupted from path of success. But they had some qualities that
helped them in overcoming threats and achieving prosperity. Thus, backgrounds of entrepreneur
and life experiences helps them to gain knowledge and create great image of their enterprise.
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