Entrepreneurship and Small Business Management in the UK Economy

This report provides an overview of entrepreneurship and small business management, focusing on their types, characteristics, and contributions to the UK economy. It differentiates between small-business entrepreneurship, large-scale entrepreneurship, and social entrepreneurship, highlighting the roles of serial entrepreneurs and intrapreneurs. The report assesses the importance of small businesses and startups in driving social-economic growth, emphasizing their impact on employment, income, and overall economic turnover. It also compares the skills of entrepreneurs and managers, exploring the characteristics and personalities that motivate entrepreneurs. The analysis includes relevant data and statistics to underscore the significance of small businesses in the UK, including their contribution to employment and GDP. The report concludes by reinforcing the critical role of both small and large-scale organizations in fostering economic growth and innovation.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................3
Types of entrepreneurial venture and their relation with typology of entrepreneurship.............3
Characteristic of the entrepreneurship.........................................................................................5
Interpret and assess the relevant data and statistics to identify their importance of small-
business........................................................................................................................................6
Importance of Start-ups and small-business with their growth in social-economy.....................8
Skills of entrepreneur and it comparison with manager............................................................11
Characteristic and personalities of an entrepreneur to motivate themselves and improve their
mindset.......................................................................................................................................11
Previous experience of the person that generate barrier for person to become an entrepreneur
with example..............................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
The term entrepreneurship is explained as the constant progression for identify an
innovative solution to solve key problems and serve customers in a better way. Small business
offer or deal among those products which are already established in the market. On the other
side, entrepreneurship consists towards use of new and innovative features, product offerings,
etc. for formulate new products and services. In simple terms, the mind-set of individuals
generate entrepreneurship as it allow them to identify new opportunity which are convert into
business in upcoming future. Moreover, this report highlights on Mark Zuckerberg and Richard
Bronson who are well-known entrepreneur among all over all the world and this helps to
understand entrepreneurial personality (Bennett, 2014). Importance of small-business and
entrepreneurship to identify their role in growth of social economy will also include in this
report. Contribution of small and large-scale organisation in also focused in this report. In the
last, comparison between the skills of manager and entrepreneur will be learned through this
report.
Types of entrepreneurial venture and their relation with typology of entrepreneurship
Entrepreneurship is to identify and analyse an opportunity for establish and start a new
business venture or organisation. Further, with collect of resources an entrepreneur or individual
convert the idea into practical business. The primary purpose of an entrepreneur or
entrepreneurship is to develop something new and valuable for organisation as well as also for
customers. In the present scenario, entrepreneurship take place in the international market so
entrepreneurial venture and typology of entrepreneurship both are understand in the below
section.
SMALL-BUSINESS ENTREPRENEURSHIP
Small business is explained as the private based corporation, sole-proprietorship and
partnership organisation who perform their business at the small-level or in a limited
geographical area (Dana, 2017). The purpose of small-business is to enhance their profits and
also all decision-making and management system is controlled by the owner to perform company
operations and functions in an organised manner.
LARGE-SCALE ENTREPRENEURSHIP
Large-scale organisation perform their business operations in the global market which is
too dynamic and uncertain. Therefore, professional or expert are hired or recruit as they support

management to achieve sustainability in the uncertain market. A large number of workforce is
engaged in large-scale business which manage and control all work and operations performed by
management in different geographical locations.
SOCIAL-ENTREPRENUERSHIP
The main goal of business is to identify all those factors that make the world a better
place. This type of entrepreneurs perform their work or operations with motive of improving
society conditions through solve all those problems that generate problems for social group.
Types of entrepreneurial venture
 Serial entrepreneur- The term serial entrepreneur refers to an individual who
continuously identify and introduce new idea to start new business (De Castro, Khavul
and Bruton, 2014). With introduce of the new idea an serial entrepreneur is considered
towards establish of new business venture and this relates with lifestyle typology because
they change business after medium time period. Richard Branson is considered as a serial
entrepreneur because he monitors, operate and control multiple business. In context of
serial entrepreneur, lifestyle typology is learned and induce by serial entrepreneur and
this is because it helps to utilise prior knowledge and experience related with business.
 Intrapreneurship- The term intrapreneurship refers to a system which allow an
individual or employee for act as an entrepreneur in the organisation. Moreover,
intrapreneurs are self-motivated, action-oriented, etc. and this aids them to take initiative
for formulate and add innovation in product. The main focus of the intrapreneurship is to
solve specific issue of the organisation and this helps to serve customers in a better way.
Facebook is considered as an example of intrapreneurship and this helps to manage the
personal cost of business because it allow individuals to manage and control social media
account on digital platform (https://en-gb.facebook.com/business). Along with this
allocative entrepreneurship typology is considered by management and this helps for
manage all work according to decided-knowledge (Duchek, 2018).
Difference between small-business and entrepreneurship
Basis Small-business Entrepreneurship
Products Small-business offer products and
services which already exists in
market.
On the other side,
entrepreneurship offer new
products through add innovation

in company products.
Behaviour of
individuals
The behaviour of small-business
owner is to generate successful
products in order to earn high
profits.
The behaviour of an entrepreneur
is to engage the innovation
products in order to enter in
developing or developed market.
Motivation Passion is the key factor of for
small-scale business and they are
controlled by management to
perform all work in an organised
manner.
In the context of
entrepreneurship, minimise the
society problems and to engage
innovation in business are the
motivational factor.
Characteristic of the entrepreneurship
Small-business entrepreneurship- This refers to the small-business and it determine all those
factors that helps to manage work in a small-area. It also defines the current market conditions
and this aids for manage the task according to existing market requirements. The UK section,
382 and 465 of the company act stated under 2006 define SME as a business which perform
business in small-area (Ferry and et. al., 2018). In context of size, small-business perform
functions in a limited area. The turnover of small-business is £6.5 million and number of
employees is more not more than 50. Goal of the small-organisation is to increase their profit
amount.
Characteristic
 Ownership- Sole proprietorship is the first characteristic of small-scale businesses as
only a single person or individual is responsible for decision-making of the organisation.
This also refers that all management function and operation is controlled by the owner.
 Limited Reach- The area of company operations and functions is limited and this refers
that organisation has limited reach. So this also refers that management perform functions
according to the size which is easily managed by them.
Large-scale entrepreneurship- In the present scenario, large-scale business are considered as
those business which aids management to perform their work in various geographical areas. The
large-scale entrepreneurship according to UK company act, 2006 is that business which has
turnover more than 36million and more than 250 employees’ are engaged in company who are

responsible for perform company operations and functions as per decided business objectives.
Goal of large-scale business is to expand their business size and also to obtain sustainability in
business.
 Atmosphere & Vision- The first characteristic of large-scale business is to formulate
positive work environment and this helps to manage all work in a proper manner. This
also aids management for generate and induce all steps that helps for achieve clear cut
vision of organisation (Li, Liu and Yang, 2016). It aids management to perform their
work in a more appropriate manner through engage all those policies that aids workforce
to perform in a similar direction.
 Orientation to the market- The second characteristic of large organisation is to manage
all work according to decided perspectives especially, those that indicates helps to obtain
sustainability in market. The current orientation factors which are engaged in business
include flexibility, adaptability and understand of market because this helps for perform
all work in a systematic manner.
Interpret and assess the relevant data and statistics to identify their importance of small-business
CONTRIBUTION OF SMALL-SCALE ORGANISATION
United Kingdom is ranked at the fifth place among all over the world economy so this is
the largest economy among all over the world which hold and manage approximately GDP of
2.849 trillion dollars. Along with this the largest exporter and importer of the world. From the
last four years UK economy is one of the fastest growing economy and this is because
government of country, customers, angel investor, etc. support small business.

Illustration 1: Source
(https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/
articles/economicreview/apr2017)
Also, SME perform a crucial role in the UK economy as it generate employment, provide
good quality products, etc. that increase the scale and size of jobs which work as a positive factor
for country. As per the information of department of business, skills and innovation (DBIS), this
is identified that management provide over 15.6 million jobs and almost 60% employment in
private sector. Further, scope of employment in private organisation is also high because small-
business are responsible for highest job creation from the last five years and in future,
approximately 54% more jobs are offered by them at high salary (McKeown, 2017).
LARGE-SCALE ORGANISATION CONTRIBUTION
Also, a large number of individual is engaged in company functions and operations. This refers
that various individuals are engaged specifically, thousand number of workforce is engaged and
they contributed towards completion of all work in a proper manner. Moreover, with hire of
expert in business this is understand that SME provide almost 250,000 jobs in organisation. This
also refers that there are different benefits are offered by Large-scale business. Purchasing
economies, marketing economies, administrative economies, etc. in order to perform work in a
proper manner (Mueller, Wolfe and Syed, 2017). This governs that the count of fixed cost do not
change with low unit cost so this helps to offer products at low amount. Moreover, large amount
of tax is another benefit offered by management and it helps to increase budget under

government functions. This refers research and development factors considered towards
completion of task with earn good amount of profits.
Illustration 2: Source (https://www.bbc.com/news/business-54113948)
With understand of both factors this is identified that small-scale business perform an
important role for increase the economic growth of a country. In the present scenario, the main
focus of UK government is to support small business because they generate employment for
local individuals.
Importance of Start-ups and small-business with their growth in social-economy
Regardless of the industry, size and expansion this is understand that UK start-ups and
large-scale business both are performing an important role to maximise the economy of growth.
Small scale organisation increase the profitability of business through increase their market share
(Ratten, 2014). Also, the global market aids towards enhance of individual skills and capabilities
to improve their market share through provide better and innovative factors in jobs. In the
present scenario, employment and job-creation is one of the major impact as they provide
support to UK economy as it increase productivity to complete all task with more efficiency. On
the other side, private sector employment is majorly depends on small-scale business size.
Income and profits is other benefit that is offered by the small scale organisation and it
consists of completion of all work with introduce the significant proportion in the UK economy
turnover. As per the DBIS, SME of UK provide combine annual turnover which is

approximately estimated around £1.8 trillion (https://www.formationsdirect.com/blog/5-ways-
that-start-ups-are-important-to-the-uk-economy/). This help business for perform all work in an
organised manner and this also consists towards 47% of private sector workforce is engaged
among private sector. It aids SME for perform their work by offer right and significant data to
manage all work in a proportion manner. Example- the study of UK define by introduce high pay
jobs in business this is easy to recruit skilled worker in company (Summers, 2015). Jobs
generated by small and large-scale organisation results that majority of the persons complete
their work through analyse the skilled factors specifically, which improve company positions by
engage the professional in business. This also refer that one key that is more important for large-
scale business and it consists of utilise the total cost factor through which better products are
managed according to number that support products for small-business.
Share of business is also identify as one of the major benefit that leads the organisation
to complete all work in a proper manner. This also results towards that vast majority of UK
compositional business and it record that almost 5.4 million private sector business with a
increase in 146,000 is included among business and it is because share of business helps to
improve and enhance product quality and profit of business through engage appropriate
stakeholders in organisation. Example- ADM interconnect their business and it consists that
different individuals from different places are engaged in company and this helps for deliver
better user-experience to individuals. Further, the venture capital considered towards complete of
all work with more efficiency such as to manage and introduce new programmes. This results
individuals focus on programme that support to perform all work for better of public.
BOP (Balance of payment) is identified as one of crucial feature which is related with
UK economy and this consider as a simplest form because this helps for complete all task in a
proactive manner (Sunduramurthy and et. al., 2016). In easy words, BOP refer or tell us all those
feature which demonstrate the consumer spending on the products and services. Moreover,
successful business especially, large-scale business helps to manage all work through introduce
and reveal better growth factors such as to introduce the manufacturing units in company
business. In the last, example of large business considered is to use the 270 machines and it helps
to perform all work on annual basis which results this is easy for management to complete their
work at different locations. With consider of different factors related with business this is
understand that management is focused towards complete of all work in a proper manner. On the

other side, economic-related term consider towards generate of World Economic Forum and it
specify, that start-up establish by entrepreneurs helps to complete all work in an active manner.
Employment generation perform an important role for business because they support the
individual or country to earn more amount of money. Authorities of small-scale and large-scale
business demonstrates the broader view to gain success in the market. In the context of both
small and large-scale business this is analysed that SME perform their work in an organised
manner such as to offer jobs, pay tax amount, etc. and this leads to improve or enhance
organisation economy in an easy manner (Yan and Yan, 2016). The primary purpose of both
small and large-scale business is to demonstrate and analyse all details in a in-depth manner
because this helps to perform all work with favourable approach and this also generate factors
through which overall UK economy is improved. Moreover, in growth of economy this is
understand that workforce or individual not retain for longer period in the start-ups. So at that
time management focus on those policies which motivate the employee’s to engage their skill in
company. Barrier related with economy growth define that this is complex for future-oriented
entrepreneurs to manage task because of Brexit. This consider that tech start-ups face problem
due to change in regulations therefore, to sustain in the uncertain economy SME focus on
formulation of right budget for complete their work with appropriate monetary factors.
Small-business is considered as backbone of economy and it considered that the present
scenario, is focused towards the completion of all work in a manner that improve economy of
company. The existing small-business plays an important role and they fulfil the demand of
customer through focus on their requirements. On the other side, small-business are introducing
themselves on digital platform and it results that management easily perform their task in
minimum time-period also, this aids business to minimise the cost by store data in digital
manner.
Employing local workers is also performing a crucial role for the country because they
provide support to persons for earn sufficient amount to live a healthy lift-style. large-business
establish and stimulate the economic growth through engage the workforce from local grounds in
which they operate their business and also they pay tax to the government so this helps to
formulate a better economy (Yan and Yan, 2017). Moreover, large-business engage suppliers,
logistic department etc. and this also supports them to earn sufficient amount to earn cover
operational cost. Along with this highly skilled individuals consider for employ and engage

larger-business corporations to complete all work in a more organised manner as local individual
are aware about culture and customer requirements.
Skills of entrepreneur and it comparison with manager
Entrepreneur perform an important role to establish and introduce new idea in the market
by understand and for this management analyse and engage all those resources which are
important to establish new business venture. Some skills which is more important for
entrepreneur to establish business are mention as follow:
 Creativity- Entrepreneurship start with the identification of an idea and for become a
successful entrepreneur it is important for them to represent their idea in a creative
manner. This also considered towards complete of company project in a creative and
unique manner. Sir Richard Branson utilise creative skill to learn more and this helps
them to achieve something better as compare to other individuals.
 Motivated- High motivation is considered as one of the major motivation and this refers
to complete all work in a proper manner. This refers that management utilise all those
factors such as monetary rewards, promotion, etc. which improve keep motivate persons
to perform their job role with more efficiency. Passion is an important skill and this aids
Richard Branson for engage in new business activities and functions.
 Optimistic- Entrepreneurs are the persons who make long term vision by use of their
optimistic skill. This also refers that an entrepreneur always looks towards the bright and
positive side of business. It results that new business considered for earn more profits as
they offer new and innovative products to individuals (Zhao and Zou, 2021). Mark
Zuckerberg and Sir Richard Branson both adopted optimistic skills because it aids them
to perform work with high motivation. On the other side, it helps to perform work in a
manner that is more appropriate for business.
Characteristic and personalities of an entrepreneur to motivate themselves and improve their
mindset
Personality of a person perform an important role to establish themselves as a successful
entrepreneur. This considered that with adoption of appropriate characteristic and use them an
individual formulate an effective mind-set due to which this is easy to engage all those factor
such as implement of creative skills, use of better-knowledge etc. which helps entrepreneur to
establish a new business venture. The best example that motivate the individual to become an

entrepreneur is JK Rowling, the well-known writer of Harry Potter Books. In the present
scenario, current perspectives related with book author are too positive and this helps them to
earn better name and money. In an interview, JK Rowling disclose that in the initial period she
was rejected many times and at that time positive mind-set as well as constant work on her skills
improve their work actions. Moreover, it also encourage as an entrepreneur to reflect her
personality by learning new section in business (https://hbr.org/2016/06/do-startups-really-
create-lots-of-good-jobs).
Previous experience of the person that generate barrier for person to become an entrepreneur
with example
Each entrepreneur has a different story or reason to become an entrepreneur. This
governs each entrepreneur perform their work according to their purpose. Moreover, in the
context of Mark Zuckerberg who is the creator of Facebook require the full control so he develop
the business in which all of the functions and operations are monitored and performed by him
only at the initial stage. No as such there is not possibilities that an individual face problems
because of the poor background to become an entrepreneur. Sir Richard Branson is the best
example because he had not sufficient amount to start a venture and also the experience of record
shop in Oxford Street was not good and due to this he face problems but this can't stop him to
become a successful entrepreneur.
CONCLUSION
From the above report, it is concluded that entrepreneurship as well as small-business
management perform an important role to improve the overall economy of the country.
Entrepreneurs are the persons who engage themselves in various places specifically, among
those which helps to earn better amount of money, reduce society problems, etc. as this depends
on their motive or goals. In the current scenario, skills and characteristic of an entrepreneur are
the major factors that aids a person to perform their role with high motivation. Along with this,
by understand of the entrepreneur personalities an individual adopt and learn all those
characteristic which helps to become a successful entrepreneur.