Entrepreneurship: Ventures, SMEs, and Economic Impact Report

This report provides a comprehensive analysis of entrepreneurship and small business management. It begins with an introduction to entrepreneurship, defining it as the process of designing, running, and launching a successful business with a new concept. The report then delves into different types of entrepreneurial ventures, including craftsman, opportunist, independent, and risk-oriented entrepreneurs. It further categorizes ventures based on size: small, social, medium, and large businesses, using Fenty Beauty by Rihanna as a case study for large-scale operations. The report highlights the similarities and differences between these venture types and explores the role of small businesses in the UK economy, emphasizing their significant contribution to job creation and economic growth. The report also examines the impact of small and medium enterprises (SMEs) on the local, regional, and national levels, and concludes by underscoring the importance of SMEs to the growth of the UK economy, particularly in terms of standard of living, competitiveness, innovation, and economic growth. The report is supported by references to relevant academic sources.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

INTRODUCTION...........................................................................................................................1
Part A...............................................................................................................................................1
Entrepreneurial ventures..............................................................................................................1
Role of small businesses in UK economy....................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship refers to a process of designing, running and launching a business with
new concept successfully. It also defines as the capacity or willingness of entrepreneur for
developing and managing a venture in appropriate way (Bridge and O'Neill, 2012). The present
report is going to analyse the concept of entrepreneurship with different types of entrepreneurial
ventures. Company chosen for this purpose is Fenty Beauty by Rihana that offers a range of
beauty products. This company of UK works at large scale and has run a number of stores.
Under this report, a discussion on similarities and difference between different types of ventures,
impact of large and medium business on economy and factors that either foster or hinder the
entrepreneur skills are also done.
Part A
Entrepreneurial ventures
Entrepreneurship defines as a way to develop, manage and establish a new business or run
existing one with new ideas effective way. Here, entrepreneurs play important role to incorporate
their skills and knowledge in launching a business venture (Burns, 2016). It has evaluated that
small ventures in UK and other countries have contributed a large proportion in development of
economy. Therefore, it is essential for government to give support to entrepreneurs in launching
their businesses, products or services effectively at marketplace. This would help in getting high
contribution of them for increasing GDP rate and growth of economy (Kuratko, 2016). In this
regard, entrepreneurial can be differentiated as –
Craftsman – Entrepreneurs having professional skills, good technical skills to run a business but
less communication capabilities are known as craftsman. They establish a business on few source
of capital.
Opportunists – A person having sharp skills to grab opportunities and make capitalise on it,
known as opportunist entrepreneurs.
Independent – It includes individuals who run business to earn high profitability and
independent from risk of losses.
Risk oriented – Entrepreneurs who take risks to launch a business on new concept or new
products to earn customer satisfaction are risk-oriented.
Types of entrepreneurial ventures –
1

Entrepreneurial ventures can be divided on the basis of large, small and medium scale
along with different size of workplace in following way –
Small Business Entrepreneurship: It include those ventures that requires less
investment for opening a business and facilitating on the basis of sole proprietorship. Here, the
main purpose is to gain profitability and earning money for livelihood (Landström, Harirchi and
Åström, 2012). Along with this, size of workplace includes near about 50 employees. For
example, Pavestone UK is one of the small manufacturing company that offers paving,
landscaping and other concrete materials.
Social Entrepreneurship: Here, entrepreneurs use creative ideas to fulfil demand of
public by operating business on the basis of provide welfare to societies like Oxfam (Read and
et.al., 2016). They also arrange funds for other companies who are engaged in social services and
run various programs for social welfare like CSR activities.
Medium Entrepreneurship: It includes start-ups having less than 500 but more than 50
employees. The companies that run on medium basis always focus on expanding business at
large way therefore, make large investment for same (Santos, 2012). For example – Captify is
one of the data-driven display company of UK that specialise in search intelligence as well as
media decisions. It seeks to expand business market by making more investment in technology
development.
Large Business Entrepreneurship: It covers those companies that have finite life-cycle
and run business for long-term profitability basis. Therefore, instead of earning profitability, they
focus on getting sustainability, by taking a risk of new product launch and more (Wright and
Stigliani, 2013). They employ more than 500 employees like Fenty Beauty by Rihana which
sales products both by online and offline procedures. It has established a number of stores in UK
and trade products across nation through online process.
With above discussion, it has evaluated there is a number of similarities and differences
between small, large and medium entrepreneurship as explained below:
Similarities between small, large, social and medium entrepreneurs
 All entrepreneurs whether at large, small or medium level mainly seeks to gain high
profitability to achieve business objectives.
 To run business successfully with longer period of time, is another main strategy that
implies in every type of business.
2

 To gain competitive advantages, every entrepreneur seeks to put creativity and business
ideas into corporation. Offering quality of products and services to increase business efficiency and gain high
satisfaction of customers is another main strategy of small, large and medium business
(Cumming and Zahra, 2016).
Difference between small, large, medium and social entrepreneurs
Basis Small size Large size Social Medium
Meaning Companies deal at
small level with
small investment
Entrepreneurial
Ventures that
conduct business
activities on large
level make high
investment either
for brand
management or
business
expansion
(Fayolle, Verzat
and Wapshott,
2016).
Social
entrepreneurial
venture concerns
on offering
demanded
products on low
price for social
welfare.
Business
expansion is the
main purpose of
medium-based
organisation.
Objects Earn high
profitability is the
main objective of
small business
Main objective of
large business is
to gain sustainable
or competitive
position at
marketplace
To satisfy public
demand for social
welfare
To gain high
profitability for
business
expansion.
Capital Makes small but
sufficient capital
for business
Initiate business
functioning by
making large
Arrange funds for
local community
development s
Amount required
in sufficient
manner for
3

launching and
operating at
efficient level.
investment business launching
Role of small businesses in UK economy
Today, small business contributes a high effort in development of economy. As launching
a start-up at small level requires less amount of capital with minimum number of employees,
therefore, entrepreneurs get high opportunity to launch business successfully. In UK, concerning
on this fact, government has also provided support to entrepreneur in establishment of their
businesses by providing funds on less rate of interests and other sources. As per the
Confederation of British Industry (CBI), it has been evaluated that small and medium-sized
enterprises make up with more than 99.9% of private sector businesses, which helps in offering a
million of jobs to local people. This would help in improving life of local communities and
reducing unemployment rate as well. Therefore, SMEs are considered as main backbone of UK
that has also provided support to overcome from negative impact of BREXIT on UK
organisations and people.
Micro: This kind of organisation has very less number of employees which is around 1-
9 . It contributes about 18.9 percentage for development of United Kingdom's economy. It has
low impact on growth of economy.
Small: This type of enterprise has less than 50 employees working under it which is
between 1-49. It has 23.4 percent contribution in the development and growth of British
economy as it generates revenue less than £5million.
Medium: Number of employees work under this kind of organisation are between 50-
249 who work together towards organisational objectives. For development in economy, its
contributes 29.2 percent. It generates less than £22million revenue but still manages to provide
opportunities of employment to people.
4

Large: This type of enterprise has large number of employees working at various levels
of an organisation. It contributes maximum amount among all kind of sectors as the revenue
generated by these companies is more than £22million.
Source: Impact on small businesses, 2017
As per the given statistical figure, it has been interpreted that companies at micro level
contributes up to 18.9 percent in development of UK economy. While, organisations deal at
small scale give 23.4% contribution for enhancing the life of local communities. Along with this,
micro level segment has also contributed to over 29.2% that considers as large segment in
increasing growth rate of economy.
5

Impact of SME upon economy
Local Impact: It directly affects local economy of United Kingdom as services provided
by such organisation meet customer satisfaction and lead to overall objectives of a company.
Different tactics and strategies are formed after making analysation about preferences and needs
of targeted audience. It will result in customer satisfaction and increase in employment
opportunities.
Regional Impact: These enterprises contributes to a large extent in developing economy
of United Kingdom at regional level. It focuses upon reduction in chances of mismanagement
taking place in economy. It provides employment opportunities to people which can enhance in
maintaining of income at regional level.
National Impact: SME has positive impact upon economy at national level. Operations
that are performed by these enterprises are carried with an objective to satisfy needs and wants of
consumers. It will increase the productivity of an organisation which will result in improving
performance of economy as a whole.
Importance of SME to growth of UK economy
SMEs and start-ups are massively contributed their role for development of economy
growth both at local and national level. As after Brexit, the market situation of UK has much
decreased therefore, at this level, SMEs have contributed the main role in reducing
6

unemployment and development of economy. Along with this, small and medium sized
companies also play a critical role in terms of employment for driving economic growth. This
would can be described in following way -
Standard of living: Improvement and raising the living standards of people via rendering
them opportunities to get employment, is one of the major area where contribution of SMEs can
be evaluated.
Competitiveness : Small and micro-businesses also help in raising competition among
companies for running business successfully. Therefore, in this regard, companies are concerned
more on offering products on less rate with innovative way. This would help in meeting local
demand of public effectively by offering a range of products on reasonable rates.
Innovation: Small and medium size entities also put massively contribution in
incorporating the innovation and creativity for development of quality of goods and services, in
order to meet demand of customers. Hereby, innovators also help in offering best quality of
products that meet customer demand and high profitability as well.
Economic Growth: Small firms are continue concerning on bringing growth and
creativity for the communities to fulfil their demands. This would lead to increase economic
growth and provide a vital sources of earning profitability for market development. It has been
assumed that with growing sector of SMEs till 2020, the market economy of UK will be grown
up by 20 million Euro (Economic importance of small businesses, 2014)
CONCLUSION
It has been concluded from this assignment that to establish, develop and manage a business
effectively, it is essential for entrepreneurs to put their efforts in generating new ideas. This
would help in operating ventures successfully. Along with this, understanding the concept of
different ventures and purpose of operating business, entrepreneurs can grab opportunity to
develop more effective ways.
7

REFERENCES
Books and Journals
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.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Landström, H., Harirchi, G. and Åström, F., 2012. Entrepreneurship: Exploring the knowledge
base. Research Policy. 41(7). pp.1154-1181.
Read, S. and et.al., 2016. Effectual entrepreneurship. Routledge.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal, 31(1). pp.3-22.
Cumming, D. J. and Zahra, S. A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management. 27(4). pp.687-692.
Fayolle, A., Verzat, C. and Wapshott, R., 2016. In quest of legitimacy: The theoretical and
methodological foundations of entrepreneurship education research. International Small
Business Journal. 34(7). pp.895-904.
Galloway, L., Kapasi, I. and Sang, K., 2015. Entrepreneurship, leadership, and the value of
feminist approaches to understanding them. Journal of Small Business Management. 53(3).
pp.683-692.
Kassean, H. and et. al., 2015. Entrepreneurship education: a need for reflection, real-world
experience and action. International Journal of Entrepreneurial Behavior & Research.
21(5). pp.690-708.
Petkovska, T., 2015. Role and importance of innovation in business of small and medium
enterprises. Економски Развој-Economic Development. 17(1-2). pp.55-74.
Rauch, A. and Hulsink, W., 2015. Putting entrepreneurship education where the intention to act
lies: An investigation into the impact of entrepreneurship education on entrepreneurial
behavior. Academy of management learning & education. 14(2). pp.187-204.
Vilcov, N. and Dimitrescu, M., 2015. Management of entrepreneurship education: A challenge
for a performant educational system in Romania. Procedia-Social and Behavioral Sciences.
203. pp.173-179.
Online
Economic importance of small businesses. 2014. [Online] Available Through:
https://www.yesgrowth.com/knowledge-centre/sme-issues/the-economic-importance-of-
small-businesses/801747318/>.
8