Analysis of Entrepreneurship and Small Business Management-Unit 9

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures, their similarities and differences, and the impact of micro and small businesses on the economy. It interprets statistics to show the economic impact of these businesses, highlights the importance of small businesses and start-ups in the growth of the social economy, and examines the characteristics, traits, and skills of successful entrepreneurs, including how their personality reflects entrepreneurial motivation. Furthermore, the report discusses how background and experience can either hinder or foster entrepreneurship, referencing specific entrepreneurs in the UK and their contributions. The report concludes by emphasizing the significant role entrepreneurs play in economic growth and societal development.

UNIT 9. ENTREPRENERUSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship....................1
P2. Similarities and differences between entrepreneurial ventures............................................4
TASK 2............................................................................................................................................6
P3. Interpretation of statistics for showing impact of micro and small business on the
economy......................................................................................................................................6
P4. Importance of small businesses and business starts-ups in growth of social economy........9
TASK 3..........................................................................................................................................10
P5. Characteristic, traits and skills of successful entrepreneurs................................................10
P6. Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation .....11
TASK 4..........................................................................................................................................12
P7. Background and experience can hinder or foster entrepreneurship....................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneur is defined as an individual who initiate their new business idea while
undertaking risk in order to develop a new business venture. These individuals are termed as an
innovator as they formulate unique business offerings in order to serve society with best.
Entrepreneur aim towards increasing economic growth of a nation with their innovation.
Entrepreneurs in the provinces of United Kingdom significantly offer their contribution towards
increasing overall nation economy (Akehurst, Simarro and Mas‐Tur, 2012). Entrepreneurship in
UK is consider as strongest pillar of economy that majorly contributes in all segments. Tom
Morris and Chris Dawson significantly make their presence in Top 100 Entrepreneurs in Britain.
This has been identified that, both of these British Entrepreneurs strongly marked themselves as
emerging and successful entrepreneur within UK and provide effective inspiration to other
ambitious entrepreneurs. Present report include formative discussions on different range of
entrepreneurial ventures. Along with this, wide range of entrepreneurial venture is also being
discussed in their report. Further in this report numerous range of entrepreneurial typology is
included in this report. In addition to this, in this report importance of starts-ups ventures and
small scale organisation along with their overall contribution towards economy of nation is
covered in this report. Lastly, this report include experience and background of entrepreneurs
that duly foster or hinder entrepreneurship.
TASK 1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurs now a days provide significant benefits to both nation as well as
individuals. In this they these entrepreneurs provide community and individuals with great
employment opportunities and higher standards of living to individuals. Entrepreneurship is
mainly termed as an economic activity that involve development of business venture as to further
generate value and wealth from them. In an entrepreneurship process continuous investigation is
required as to identify new as well as unique ideas through which satisfaction to customers can
be offered. Small scale business organisations as well as starts-ups play significant role in
increasing economy of all nation as a whole. With the help of taking advantage of ground-
breaking innovations entrepreneurs can effectively able to undertake revolutionary measures
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within marketplace. Some certain range of entrepreneur is being defined below that are further
divided into 2 different segment:
Public sector:
Organisations within public sector are mainly get managed, owned and controlled by
government institutions as well as authorities. Entities those who perform their services in public
segment offer products as well as services that are mainly related to healthcare, eduction,
transportation, safety and more. In this sector organisations mainly aim towards effectively
satisfying needs of individual and further increase their standards of living in best effective
manner.
Corporate sector:
Entities operating their functions in corporate sector are mainly managed, owned and
controlled by private entities and individuals. In this organisations involved significantly aim
towards increasing profitability at great extent while offering satisfactory services to consumers.
It has been identified that corporate as well as public sector organisation are divided into various
ventures. Some of the certain ventures are being mentioned below:
Scalable Start-up Entrepreneurial Ventures:
In scalable start up entrepreneurship individuals mainly engage in their own scalable
business ventures as to offer qualitative services and products to customers. With this, they aim
towards making significant increase in organisation profitability level. In addition to this, it has
been evaluated that starts-ups mainly get encouragement from government as to effectively
influence innovation as well as creativity.
Large Company Entrepreneurial Ventures :
In order to initiate business functioning in large sector there is a need of large
funds. In addition to this, it has been evaluated that, there is a need of additional funds on
specified time period basis as to increase market holding capabilities. Main motive of large
companies is to significantly make expansion of their geographical business as to earn
profitability at great extent. For example, Tesco and M&S conduct their functioning in large
scale entrepreneurship as to serve large base of consumers in best effective manner and gain
more economic growth in domestic and international marketplace.
Social Entrepreneurial Ventures:
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Organisations those who offer their business services in social entrepreneurship sector
significantly aim towards providing welfare and social development to community and
individuals (Hall and Wagner, 2012). It has been identified that these enterprises are mainly
perform their functioning in order serve society and community in best effective manner. Save
the Children and Oxfam are some organisations those who perform their functioning in social
entrepreneurship sector.
Small Business Entrepreneurial Ventures:
Organisations within this sector need small capital investment to conduct their business
operations. In this form of sector entities have main motive which is to offer satisfactory
offerings to customers and gain income for livelihood. Orion electrotech Limited operate their
functioning in small business sector and offer well effective services to customers. Small scale
entities mainly perform their operations in construction and manufacturing sector and provide
significant aid to large scale organisations.
Typologies of entrepreneurship
Within entrepreneurship ventures there are numerous form of typologies that are
included. Main aim of this is to significantly make increase in overall profitability of business.
Mentioned below there are some significant typologies is provided:
Growth firms:
Entities within growth firm mainly conduct their functioning as to increase their overall
profit generation ratio. In this, entrepreneurs of growth firms undertake advantage of new
business ideas in order to make significant rise in overall profitability and productivity. Further
this has been identified that, by taking use of new idea growth firms significantly aim towards
offering satisfaction to needs and well as demand of consumers as to effectively ensure more
sustainable growth and profitability.
Lifestyle Enterprise:
Entrepreneurs those who conduct their functioning in lifestyle enterprise as to provide
products and services to community and individuals in order to make significant increase in
lifestyle and living standards of individuals. Main motive of these entrepreneurs is to offer
significant job opportunities to individuals those who mainly belong to local segment.
This has been evaluated that all the typologies of entrepreneurship are mainly associated
with each other in order to operate their functioning in order to make significant rise in overall
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profitability of business as to contribute effective contribution overall economic development of
a nation.
P2. Similarities and differences between entrepreneurial ventures
Differences
Basis Small business Large company Social
entrepreneurship
Scale of
measurement
Organisations within
small scale segment
mainly perform their
functioning by taking use
of small fund ratio.
Organisations those who
conduct their operations in
the segment of large scale
undertake use of large
base of funds as well as
resources as to conduct
their functions in best
effective manner.
Entities those who
perform their
business operations
in this segment
conduct their
functioning to
satisfy needs of
individuals at local
level.
Aim Entities within small
scale mainly offer their
organisational offerings
as to effectively provide
satisfaction to consumers
at small scale.
Main aim form which
organisation conduct their
functioning is to
significantly increase
overall profitability of
entity in best effective
manner.
Social
entrepreneurship
mainly engage in the
operations of
providing
satisfaction to
customers with an
aim to make
significant increase
in their living
standards (Kelley,
Singer and
Herrington, 2012).
Characteristics Companies those who As to operate This has been
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perform their functioning
in small scale segment
basically operate their
business functioning by
taking advantage of
limited set of resources.
organisational offerings in
large scale organisations
need resources, raw
material, labour etc. in
best effective manner. For
this there is need of large
base of funds.
evaluated that
money is one of the
most important
aspect for an social
enterprises. Further
this has been
evaluated that
government offer
significant support
to these organisation
as to make them
provide effective
satisfaction and
welfare to
individuals.
Similarities
Basis Small business Large business Social enterprise
Assemble the
requirements
Main motive of
organisations within
small scale segment
aim towards fulfilling
demands and needs of
customers at local
scale in order to offer
them immense
satisfaction.
Large scale business
entities also perform
their functioning to
satisfy wants to
customer’s at large
scale.
Social enterprises offer
services to fulfil needs
of local individuals by
satisfying their needs
in best effective
manner.
Society upliftment Organisations those
who perform their
operations in this
sector mainly aim
Entities who conduct
their organisational
operations in large
industrial sector have
Industries that are
involved in social
enterprises
significantly aim
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towards increasing
living standards of
individuals at great
extent (Carsrud and
Brännback, 2011).
main motive to serve
customers at large
scale and increase
overall profit earning
capacity at significant
manner.
towards offering
immense level of
satisfaction of
individuals as to
increase their standard
of living.
TASK 2
P3. Interpretation of statistics for showing impact of micro and small business on the economy
It has been identified that United Kingdom is largest economy in which major
contribution are being contributed by small and micro scale entities. It has been identified,
according to the Department of Business, Innovation and Skills (DBIS), in 2015 micro as well
as small scale organisation effectively contribute towards offering job opportunities to
individuals. Further this has been evaluated that 15.6 million job has been created by these sector
that not only increase living standards of individuals but also increase employment rate of nation
in international market. Along with this, it has been identified that, small and micro scale
organisations effectively contribute in innovation and growth (5 ways that start-ups are
important to the UK economy. 2016). It has been identified that small scale organisation provide
contribution in local level that automatically generates high growth rate in national economy.
Small:
It has been identified that entities those who conduct their operations in small scale sector
are duly allowed to have less than 50 employees at their organisational workplace structure. In
addition to this, they are not entitles to earn revenue of not more than £5 million. Further this has
been evaluated that small scale entities are considered as backbone of an economy. As they
create number of job opportunities to that significantly increase living standards of individuals.
In addition to this, it has been evaluated that SME play key important role of an economy as
create number of opportunities for nation (How do small businesses affect the economy? . 2020).
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Medium:
At medium level entities those who are involves are allowed to recruit employees that
range between 50-250. Further this has been identified that these entities are allowed to generate
revenue between £ 5 million - £22 million. Main aim to entities those who conduct their
functioning in this is to offer effective satisfaction to consumers as to effectively satisfy their
needs as well as demand in a well defined manner.
Large:
Organisations those who perform their business functioning in large sectors are entitles to
have more than 250 employees within organisational work place structure. In addition to this
large scale organisations are mainly allowed to generate revenue about more than £22 million. In
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addition to this, it has been evaluated that entities those who are engaged within this sector offer
large scale employment opportunities to individual that automatically generate high growth of a
nation (Ramadani, 2013).
Impact of SME and Start-Ups on economy
Local impact:
This has been identified that small and micro level business organisation significance
have impact upon nation economy in a number of ways. Further this has been evaluated that
these organisation accomplish demands and needs of consumers in a significant manner as to
offer satisfaction to services and products at great extent. In addition to this, this has been
evaluated that these organisations effectively offer job opportunities to local individuals as to
make significant increase in country economic growth prospects.
Illustration 1: Role of Start-ups and Small Businesses
(Source: The Role of Start-ups and Small Businesses in Today’s Economy, 2018)
Regional impact:
By passing many years, it has been determined that micro and small level business
organisation significantly contributes in regional economic conditions performance (Berglund,
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Johannisson and Schwartz, 2012). With the help of their contribution major issue related to
unemployment has been reduced that further lead nation towards more economic growth and
development. With their significant contribution in employment, per capita income of individual
increasing on continuous basis that increase regional stability of nation in many different ways.
National impact:
It has been analysed that government play significant role as to foster starts-up culture.
With the help of this governmental support there is a significant impact of micro and small level
business organisations upon national economic growth (Hall and Wagner, 2012). In addition
with this, with having unique and innovative ideas these organisations increase national stability
at international marketplace. In addition to this, as per according to the report, it has been
analysed that 15.7 and more than individuals are being employed by micro and small scale
business organisation that increases per capita income level of individuals that foster Britain's
economic conditions.
Economic growth:
This is as essential aspect that has been contributed by small and micro scale
organisations. This has been identified that these organisation effectively contribute towards
increasing overall growth of a country. Further this has been evaluated that, these organisation
not only provide job opportunities to individuals but also satisfy individuals with the help of their
unique offerings as well as ideas. It has been evaluated that small and micro scale organisation
hold significant place in marketplace of UK as there are almost 80% of marketplace in all
industrial sector that has been covered by small and micro level organisations.
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