Entrepreneurship and Small Business Management Report for UK Economy

This report on entrepreneurship and small business management provides a comprehensive overview of the subject. It begins by defining entrepreneurship and its processes, followed by an examination of various types of entrepreneurial ventures, including large corporations, lifestyle entrepreneurship, social entrepreneurship, scalable business start-ups, small business entrepreneurship, business enterprises, and female entrepreneurship. The report then analyzes the similarities and differences between these venture types using a comparative table. Statistical data is presented to demonstrate the impact of small businesses on the UK economy, highlighting their role in job creation, revenue generation, and innovation. Furthermore, the report discusses the contribution and importance of small businesses and start-ups to the growth of the social economy in the UK post-Brexit. It also delves into the characteristics, traits, and skills of successful entrepreneurs, exploring how entrepreneurial personality reflects motivation and mindset. Finally, the report examines how background and experience can either hinder or foster entrepreneurship, concluding with a summary of key findings and implications.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Examine different types of entrepreneurial ventures and relation to typology of
entrepreneurship...............................................................................................................................1
2. Similarities and differences between entrepreneurial ventures...................................................2
3. Statistical data evidences on impact of small businesses on UK's economy...............................5
4. Contribution and importance of small businesses and business start-ups to growth of social
economy of UK after Brexit............................................................................................................7
5. Characteristics, traits and skills of successful entrepreneurs and how entrepreneurial
personality reflect entrepreneurial motivation and mindset.............................................................7
6. Examining how background and experience can hinder or foster entrepreneurship...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the willingness and capacity of an individual for developing,
organizing and managing business enterprise or venture that involves risk bearing in order to
generate profits (Ligthelm, 2010). Entrepreneurship process is the idea and work to create product
or service that people will purchase with an organization supporting sales that involves
designing, launching and running a new business or start-up. Entrepreneur is the individual who
runs and manages the business by taking on financial risks with the hope of profit generation and
assumption that all the risks of business venture will be rewarded. The report on
entrepreneurship and small business management will explain the various types entrepreneurial
ventures operating in an economy along with the typology of entrepreneurship. It will also
explain the similarities and differences among entrepreneurial ventures along with statistical
evidences of impact of micro and small businesses on economy of UK. The importance of small
businesses and start-ups towards the growth and development of social economy will also be
discussed in the assessment.
MAIN BODY
1. Examine different types of entrepreneurial ventures and relation to
typology of entrepreneurship
Entrepreneurship is the creative approach towards business and activities for organizing,
managing and leading the venture attain its goal and bring positive change and development
(Dennis Jr, 2011). There are various types of entrepreneurial ventures in accordance with the
companies or organizations associated they ate as follows:
Large corporations
These are the entrepreneurial ventures having a certain life cycle for acquiring growth
and sustainability through developing new services and products and improvising existing
offerings to its customers (Neck and Greene, 2011). These type of organizations are subject to
competition and need to create or develop their products and services according to changing
business environment and demands by entrepreneurs.
Lifestyle entrepreneurship
1

It is the business setup by an individual not for the purpose of earning rather for altering
lifestyle and a lifestyle entrepreneur focuses more on life reward and does good as per their
passion (Blackburn, Hart and Wainwright, 2013).
Social entrepreneurship
It is the technique through which companies are started and other entrepreneurs for
developing, funding and implementing solutions to social, cultural and environmental issues and
differs in their size, aim and beliefs.
Scalable business start-ups and entrepreneurship
These ventures have the aim of changing dynamically entire persisting model and focuses
heavily on quality and creative aspect of business and involves efficient personnel as employees.
The major goal is to attain financial investment and venture capital funds for the expansion of
business.
Small business entrepreneurship
Micro or small businesses and start-ups are the tremendous growing enterprises in UK
that are formed by few members or family owned business that creates competition and
economic growth and innovation by solving societal issues (
Fassin, Van Rossem and Buelens, 2011).
Business enterprise
It is the organization that is set up with the objective of generating profits by rendering
goods and services to people with quality and in demand of their needs and requirements.
Female entrepreneurship
These are the businesses that are owned and managed or run by women building their
businesses against all odds that creates various employment opportunities and are started with an
innovative idea or purpose.
2. Similarities and differences between entrepreneurial ventures
Type of
entrepreneurial
venture
Attribute Roles Goals
2

Business
entrepreneurship
Major attribute of this
business is to generate
huge revenue and
profit. Business
entrepreneurship
develops organization
by developing
innovative and unique
products and services
according to the need
sand demands of the
customers.
Business
entrepreneurship are
operating with the aim
of generating profits
and revenue by
rendering quality
goods and services to
the people or
customers. The
develops, creates and
modifies goods and
services to meet the
requirements of
consumers and
economy to render
quality offerings to
gain a profit.
The major goal of
business
entrepreneurship is to
acquire maximum
revenues and profits
and attain a leading
market position of the
firm in the market
place (Nakara,
Benmoussa and Jaouen,
2012). Business
entrepreneurship also
focuses on rising
market share through
gaining brand
awareness and image
with increased
advertising and
promotional activities
to attract customers
towards the business
organization.
Social
entrepreneurship
It is the
entrepreneurship in
which organization is
mainly oriented on the
betterment of the
community or society,
people and
environment (Sahut,
and Peris-Ortiz, 2014).
Social
entrepreneurship's
major role is to
develop services for
the betterment and
improvement of
people, society and
environment. These
entrepreneurship
With development of
effective and efficient
products and services
that influences and
improves ongoing
conditions of the
environment, society
and people by
developing their living
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This type of
organizations are
aimed rendering
welfare to public
rather creating profits
to uplift the backward
communities and uplift
the society by
addressing their issues
and problems
(Akehurst, Simarro and
Mas‐Tur, 2012).
works with the aim of
rendering services to
community and
society rather than
creating profits.
and changing societal
issues.
Large business
entrepreneurship
These
entrepreneurship's or
organizations are
managed and lead by
business founders and
owners of large
businesses with the
main aim of earning
huge profits and attain
market value Large
business
entrepreneurship
works with the main
vision of bringing
change within the
industry through rising
market share,
expansion of revenues
and establishing the
Large business
entrepreneurship are
started with the
objective of rendering
products and services
to people for earning
huge profits by
employing staff to
conduct its operations
and activities. These
enterprises take up the
role of leaders through
better understanding of
organization with
strategic market
selecting and
developing strategies
to become successful
in acquiring market
Large business
entrepreneurship's
major business goal or
objective is to earn
huge amounts of
profits and revenue by
rendering offerings at
a cost efficient manner
(McGowan and et.al.,
2012). These
organizations or
ventures aims to attain
a leadership position in
the market in which it
operates by being
successful in attaining
segments and targets
of the market
4

enterprise or venture
as leaders of the
market place through
adapting change
(Martin, McNally and
Kay, 2013).
shares in its industry. economy.
Small business
entrepreneurship
SME's or micro and
small business are
founded, started or
operated as a small
business start-ups with
less investment or
capital. SME's
operates by employing
less than 10 employees
and minimum 5 staff
and the initial
investment ranges
from £50000 to
£100000.
Micro or small
business
entrepreneurship
renders its employees
with small workspace
than macro
entrepreneurial
ventures and
comprehends that
these businesses or
enterprises provides
efficient platform for
employees and
individuals for
acquiring industry
knowledge. These
ventures also allows
its staff to gain or
develop efficiency by
improving the
performance by
innovative and
effective ideas and
work. Better
understanding and
SME's main objective
or goal is to generate
maximum profit
within the established
industry and render
employment
opportunities to the
society (Fayolle and
Gailly, 2015).
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know how on
activities, operations
and role they need to
perform for
empowering
entrepreneur in
efficient
entrepreneurship
(Sánchez, 2013)
3. Statistical data evidences on impact of small businesses on UK's economy
SME's of UK accounts to 5.4 million which is over 99% of all businesses have a main
role in boosting productivity and supports business expansion and improves economy of nation.
These are the driving forces of UK's economy that drives growth, opens new markets and creates
job opportunities that are supported by the government. Vast majority of businesses in UK
employs more than 10 people and accounts for 32% of employment and turnover of 19%. Total
employment in SME's in UK was 15.7 million which is the 60% of all private sector employment
in the country. The annual combined turnover of SME's in UK was £1.8 trillion which is the 47
% of all private sector turnover in UK. SME's impact the economy of UK by rendering
employment opportunities and the number of businesses are increasing at a higher rate that is
providing job to the majority youth (. Sampaio, Thomas and Font, 2012).
Revenues generated by micro and small businesses and start-ups in UK has a greater
impact on the nation that promotes a high competition in the economy with turnover, growth,
service,industry, employment and contribution. An increase of 19700 SME's in 2016 in UK
where the number of employing business raised to 41000 in the same year. SME's of UK and
start-ups contributes to innovation growth as they develop competition in market that generates
new ways of business doing. According to the National Endowment for science, technology and
arts found that 6% of UK's SME's with high growth rates generated half of the jobs between
20012 and 2008 (SME’s XL contribution to the UK economy, 2015). The business population has
experienced a sustained growth in total business population of the country with an increase of 2.2
6

million since 2000 and 197000 in 2016. Major business population growth since 2000 due to non
employing businesses accounted to 89% of the overall increase (Audretsch and Keilbach, 2010).
The government of UK uses tax breaks for rendering employment, research and
developments and offers advices and support with networking assistance to SME's so that the
start-ups can flourish and assist economy building of the country. Initiatives like government's
business growth services and UK trade and investment has a positive impact on the economy of
UK to expand further. Supporting growth of SME's and start-ups are essential for UK's economy
in the context of innovation and progress. The government supports SME's by rendering
financial support with backed business loans and grants by cooperating potentially with banks
and financial institutions for facilitating processes of lending. The global entrepreneurship
monitor pointed a 17% growth aspiration in UK among entrepreneurs compared to US and its
SME's are less growth inclined and ambitious than in other G8 economies.
4. Contribution and importance of small businesses and business start-ups to
growth of social economy of UK after Brexit
UK's referendum decision to leave European Union i.e., Brexit on 23 June 2016 have a
greater impact on the economy of nation in a serious manner and have major concerns on the
business and economy (Ligthelm, 2010). The small business impacts on GDP were ranging widely
after the Brexit as these are the lifeblood of the economy and falling GDP affected largely on the
business activities and overall performances and buying behaviours of the consumers. These
entrepreneurship is the leading factor of change for the economy of UK at a consumer level that
has been boosted up after Brexit. The number of start-ups and self employed workers and
entrepreneurs are rising after UK's decision to leave EU which offers retail services and
generates huge employment opportunities. With the latest technological advancements SME's are
creating and rendering effective start ups that are offering efficient turnover and contribution to
the nation's economy. The UK economy has become reliant on the service sector on job creation
and export demand.
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5. Characteristics, traits and skills of successful entrepreneurs and how
entrepreneurial personality reflect entrepreneurial motivation and
mindset
Entrepreneurship takes various forms and appears in various forms like big or small and
is the backbone of an economy and mandate for wealth of nation. Characteristics, traits and skills
of entrepreneur's possession exposes an individual towards entrepreneurial behaviour to carry out
innovations by being a dynamic actor for bringing change (Dennis Jr, 2011). The personality traits
of Jack Cohen the founder of Tesco and Jeff Bezoz CEO of Amazon are as follows:
Characteristics, skills and traits of Jack Cohen
Sir Jack Cohen was an English grocer who founded the Tesco supermarket chain was
born in London in 1898 and was brought up in Whitechapel. Jack Cohen was different and had
the ability to think differently as compared to other entrepreneurs in market at that time that led
him to establish the largest supermarket chain business in UK. This quality leaded him to
become the greatest business man of the era. From an early age of studies Jack Cohen started
helping his father in his tailoring business and was very much interested to be a grocer and
business man and wanted to start a grocery shop. Children were a weakness for Jack Cohen and
was really close to them and loved to spend maximum of his time with them. The main
characteristic of Jack Cohen was that he was very humble and soft hearted especially for infants.
Jack Cohen belonged to a family with tailoring business and was very creative and innovative in
thinking for which he volunteered Royal Flying Corps where he used his tailoring skills to make
canvas for balloons and other aircraft. Jack Cohen had the skill of working on things in an easier
and simpler manner and were really hard-working, dedicated and focused towards his business
(Neck and Greene, 2011). Another special attribute of Jack Cohen that differentiated him from
other managers was his greater belief on humanism and trusted anyone very quickly that
reflected in the ownership of the grocery stores that was managed and operated by non family
members. This concept lead him to bring a revolution of self-service at grocery stores in the
present era as well. Jack Cohen had the courage and great market experience which is not found
in many of the other business entrepreneurs. Jack Cohen had ability to get people into a new
market centre with his positive attitude which convinced individuals easily from which
developers became keen to help him in start-up costs of other shops. Jack Cohen was different
from other business entrepreneurs in each and every aspect of decision-making, thinking,
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working, belief, techniques for surviving in the market, unique and innovative style of business
start-ups etc. Jack Cohen's all these qualities lead him business managers and entrepreneurs of
all time of era; energetic, assertive, extrovert and ability to convince others, cooperative nature,
trust etc. Moreover, Jack Cohen was achievement oriented, effective and efficient in doing his
work and were emotionally stable being positive that made him unique from other entrepreneurs
(Blackburn, Hart and Wainwright, 2013).
Characteristics, skills and traits of Jeff Bezoz
Jeff Bezoz is the American technology entrepreneur, investor and philanthropist and is
the founder of Amazon and was born in Albuquerque in 1964. Jeff Bezoz is the richest man in
the world who possess great leadership qualities and carved a name for himself by creating
sustained growth by his organization. Jeff Bezoz is a visionary who deals with problems at a
high level, which are beyond view of others and is the smartest CEO who is not tyrant and is
brilliant. Jeff Bezoz is a thinker and doer and is shy and introspective person which is the reason
for his crazy honking laugh. Jeff Bezoz's main characteristic is his attitude towards customers
valuing them highly and are concerned about the organization and focuses on talent acquisition
and development. Jeff Bezoz has higher standards and makes everyone stretch and aspire to
those standards giving lots of leverage across the organization. Jeff Bezoz is strategically patient
and tactically impatient with his conviction of long term vision and strong belief that speed
disproportionally matters. Jeff Bezoz is open and curious about learning new eras and topics
making him a great learner and with his high risk tolerance which helped in facing tough odds in
starting business venture. Stubbornness to pursue passion is the major trait of Jeff Bezoz that
even made him leave his lucrative career on Wall street for creating everything store; Amazon
(Fassin, Van Rossem and Buelens, 2011).
Jeff Bezoz possess an ambitious and adventurous characteristic that helped him to strive
for success with strong positive response towards other people interested in same ambitions and
has the most extreme hobby of deep sea diving for old rocket wreckage (The Top Personality
Traits of the World's Richest Man, Jeff Bezos, 2018). Jeff Bezoz holds the trait of
conscientiousness and follows the daily promises in a fair manner and ensures things doesn't fall
on cracks. Jeff Bezoz's leadership skills of prioritising customer services helps him and his team
to be conscious about the way a customer feels regarding decisions and treating them on priory.
Jeff Bezoz's major personality trait is that he never focuses on failure but ion process and
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believes that experimenting is the ultimate way to transform an idea into reality and has an
experiential approach in his business.
6. Examining how background and experience can hinder or foster
entrepreneurship
Growing entrepreneurship can be understood as the process of socialization, education
and experiences which has a major impact on an individual's hindering or fostering of
entrepreneurship. The background and experiences of Jack Cohen and Jeff Bezoz that helped
them in fostering their entrepreneurial ability are as follows:
Jack Cohen had a simple mind set for entrepreneurship and as per his thought an
entrepreneur is an actor who has the ability to carry out innovations characterised as a new
source of raw materials, production, market, ideas etc. The main motivational factor that come
out from Cohen's life story is “Autonomy”. According to him profit is not the prime motivation
to success for any entrepreneur, thus having an idea and realizing is the main motive behind
(Nakara, Benmoussa and Jaouen, 2012). With the clear mind, self confidence and self motivation
Jack Cohen was able to carry out new business ideas by collaborating with his employees and
workforce. Jack Cohen became separated form his father after an argument about his career
choice as a grocer and was reluctant to return to tailoring which was his family business and
established himself as a market stall holder in London and became the owner of several market
stalls and started wholesale business that were run by non family members. Jack Cohen focused
on the business enterprise setting than making money to attain his ambition and dreams and gave
importance to realization of new ideas instead of profit making. The major motivating factor was
the creative phase of implementing new ideas, in which there is a certain degree of autonomy of
importance that made him establish the brand Tesco as it is seen today. Jack Cohen believed that
profit is nevertheless a necessity in order to implement idea successfully and realised the new
idea with his creative thinking power. Cohen's motivational factors and mind set was quite
different from other business managers which resulted in the great succession of his grocery
stores and new creative idea of doing business. His mind set was different from all others out
there in the market while not giving emphasis on profit maximisation. Because of this thinking
only Tesco was able to drew ahead of all rivals and took over them completely (Sahut, and Peris-
Ortiz, 2014).
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Jeff Bezoz showed an early interest in working of things and even turned his parent's
garage into a laboratory and developed a love for computers and graduated from high school and
started his first business which was an educational summer camp. Bezoz pursued interest in
computers and graduated from summa cum laude with a degree in computer science and
electrical engineering and worked at several firms like Bankers trust, DE Shaw etc., and became
the firms' youngest vice president in 1990 (Akehurst, Simarro and Mas‐Tur, 2012). He was good at
studies and his interest towards computers made him to pursue his education in that industry and
his career in finance was lucrative and he chose to make a risky decision of moving into the e-
commerce for which he quit his job and moved to Seattle targetting the untapped potential of
internet marketing that he attained with his learning. Bezoz set up office for firm in his garage
and with few employees began software developing and opened Amazon.com on July 16 1995
and the start-up initially was a success and later on became the e-commerce leader with the
handwork and experiments of his team and his ambition. Bezoz with his high customer valuing
aims at rendering good services to clients and a good nature helps him to maintain good
relationship with everyone that makes inspiration in people. Increased conscientiousness of Jeff
Bezoz makes him perform his daily promises and with the leadership quality he is able to
manage employees and organization lead to reach a visionary level (McGowan and et.al., 2012).
CONCLUSION
From this assessment it can be concluded that entrepreneurs are the main drivers that
changes and carries economy of UK towards growth and development with introducing new
business ventures and start-ups. The study on entrepreneurship and small business management
discussed and identified the characteristics, traits and skills successful entrepreneurs; Jack Cohen
and Jeff Bezoz that differentiates them from others and investigation also determined how
background and experience hinders or fosters entrepreneurship. The study on entrepreneurship
and small business management discussed the various entrepreneurial ventures and their relation
with typologies of entrepreneurship. It also explained similarities and differences between
different entrepreneurial ventures and statistical evidences of impact of micro and small
businesses on economy of UK.
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REFERENCES
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Audretsch, D.B. and Keilbach, M., 2010. Entrepreneurship and growth. In Knowledge Intensive
Entrepreneurship and Innovation Systems (pp. 309-320). Routledge.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and
owner-manager characteristics. Journal of small business and enterprise development. 20(1).
pp.8-27.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of Small
Business Management. 49(2). pp.149-162.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions of
business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-453.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial attitudes
and intention: Hysteresis and persistence. Journal of Small Business Management. 53(1). pp.75-
93.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African Business
Review. 14(3).
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business
Venturing. 28(2),. pp.211-224.
McGowan and et.al., 2012. Female entrepreneurship and the management of business and domestic
roles: Motivations, expectations and realities. Entrepreneurship & Regional Development. 24(1-
2). pp.53-72.
Nakara, W.A., Benmoussa, F.Z. and Jaouen, A., 2012. Entrepreneurship and social media marketing:
evidence from French small business. International Journal of Entrepreneurship and Small
Business. 16(4). pp.386-405.
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small Business
Economics. 42(4). pp.663-668.
Sampaio, A.R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. Journal of Sustainable Tourism. 20(2). pp.179-193.
Sánchez, J.C., 2013. The impact of an entrepreneurship education program on entrepreneurial
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