Entrepreneurship and Small Business Management: Economic Impact Report

This report delves into the multifaceted world of entrepreneurship, examining various types of entrepreneurial ventures, including small-business entrepreneurship, scalable entrepreneurship, social entrepreneurship, large-scale entrepreneurship, and female and male entrepreneurship. It explores the relationship between these ventures and different typologies, such as lifestyle ventures, survival ventures, and managed growth ventures, highlighting their similarities and differences. The report further analyzes the significant impact of micro and small businesses on the economy, emphasizing their role in job creation, poverty reduction, and contribution to national and regional economic growth. It also discusses the importance of small businesses and startups in contributing to social and economic evolution, particularly in the context of post-Brexit UK, addressing the challenges and opportunities these businesses face. The report concludes by providing a comprehensive overview of the entrepreneurial landscape and its implications for economic development.

Entrepreneurship and Small
Business Management

INTRODUCTION
Entrepreneurship refers to an effective procedure of designing, launching and running a
new business for earning desired outcomes. It can be described as capacity and willingness to
develop, organise as well as manage new business venture to solve risks to gain better profits.
Moreover, it requires the analysis of various internal and external factor before introducing new
concept of initiating fresh business in order to achieve desired productivity and profitability in
proper manner (Blackburn, Hart and Wainwright, 2013). Entrepreneurship is helpful to start new
small businesses which facilitate to create several employment opportunities to reduce
unemployment of specific area. The present report will focus on different types of
entrepreneurial venture and their relation with typology of entrepreneurship. It will also include
differences & similarities between entrepreneurial ventures along with discussing impact of
small businesses on economy and contribution of small businesses as well as start ups to growth
of economy. The characteristics, traits & skills of two successful entrepreneurs and background
as well as experience can hinder or foster entrepreneurship is given below.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with typologies
The entrepreneurship can be described as one of the most creative approach in order to
start new business with appropriate concept through organising, managing and leading people
properly. It involves the criteria of more generating unique ideas which are effective to fulfil
desired goals and objectives along with attaining better outcomes. There are various kinds of
entrepreneurial venture which are explained further –
Small-business Entrepreneurship – This can be explained as small businesses which
has limited area of working with less resources to earn profits accordingly. It include to start
small firms by new creative ideas to provide required products or services to people as per their
actual needs, wants and demands to fulfil them in appropriate way (Bridge and O'Neill, 2012).
Scalable Entrepreneurship – The scalable entrepreneurship are usually focus on more
in quality of products with creativity in which efficient personnel as workforce is included to
fulfil actual desires of business. It involves the major purpose of initiating venture at specific
level of scale which can be defined through amount of financial investment and venture capital
funds in respect of expansion.
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Social Entrepreneurship – This kind of entrepreneurship refers to generate effective
concepts to fulfil societal needs with the help of developing product or services in order to
facilitate progress of citizens or community as a whole. Moreover, the main aim to boost up
standards of living of people and improve society as well as environment for achieving
betterment of people living in particular geographic area (Carsrud and Brännback, 2011).
Large Scale Entrepreneurship – The large entrepreneurship focus on creating more
effective as well as efficient ideas in terms of increasing profitability along with attaining growth
of business successfully. It involves various purposes such as improve good will, increase profit
share in market and sustainability which can be achieved by making appropriate strategy through
innovative concept.
Female entrepreneurs – The female individuals who establish their business with fresh
innovative concept to fulfil needs of people by remaining responsible for overall decisions of the
same to earn profits and success.
Male entrepreneurs – This include overall male entrepreneurs who put efforts to initiate
their business with creative idea and strong determination to facilitate business for achieving
better outcomes and growth as well.
Relation of entrepreneurial ventures with typology
The entrepreneurship ventures are relevant to several typologies as they have major goal
of creating accurate concepts according to business to fulfil the same. For example, lifestyle
business ventures are connected to those businesses who are required to maintain their living of
standards with the help of generating innovative ideas (Chittithaworn and et. al., 2011).
Types of typologies :– The different kinds of typologies relevant to various
entrepreneurial ventures are as follows –
Lifestyle Venture – This kind of ventures are related to lifestyle as new concepts are
generated to make appropriate strategies or policies to modify products and services in order to
maintain standards of living of people. However, it involves to apply more effective as well as
efficient concepts to change goods as per actual modified needs, wants and demands of citizens
appropriately.
Survival venture – The survival ventures are basically focussed on their earnings in
order to fulfil their basic needs to survive by implementing creative ideas in proper way. These
typologies could be related with small business endeavours.
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Managed Growth Ventures – This can be described as to apply new concepts to
increase quality of products so that growth of business can be improve and maintain further in
accurate manner. This typology most undertakes business which are operating on a larger scale.
P2 Explore similarities and differences between entrepreneurial ventures
The different types of entrepreneurial ventures have their own concepts and aims
according to which they get differentiated from one another (Chrisman and et. al., 2012).
However, apart from this, they also have certain similarities among them and some of them are
given below –
Basis Differences Similarities
Social entrepreneurship and
Lifestyle Entrepreneurship
 The main focus of
lifestyle entrepreneur is
to earn money for
making their living
standard better.
 The social
entrepreneurs have an
aim to satisfy societal
requirements whereas
the lifestyle
entrepreneurship have
a goal to maintain
actual lifestyle desires
through implementing
new innovative
concepts in business.
 Both these ventures
have same criteria of
modifying product in
order to boost up their
quality to satisfy
customers by
completing their
desired requirements in
proper manner.
 They have similar
purpose of providing
better quality goods at
reasonable price people
so that people can
easily afford them to
fulfil their desires.
Female entrepreneurship
and Male entrepreneurship
 The female
entrepreneur take
overall responsibility
of bearing possible risk
by putting appropriate
 Both of the given
entrepreneurs generate
innovative idea and put
efforts with fully
focussed mind set as
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hard work. The female
entrepreneur has the
ability to think new
ideas and make
innovation in products
so that needs and
demands of consumers
can be satisfied.
 Female entrepreneurs
focus on small targets
to earn profits rather
than taking high risk
whereas male
entrepreneurs make
huge targets for gaining
greater profits.
well as bears a passion
to run their business in
successfully in respect
of earning profits along
with better growth
properly.
 These both
entrepreneurs have
specified goals or
objectives which are
completed by
generating innovative
concepts to run
business along with
improving good will in
accurate way.
TASK 2
P3 Impact of micro and small businesses on economy
The micro and small business have limited financial investment and resources but they
are helpful to economy as they provide number of employment opportunities to citizens of
particular area (Dennis, 2011). Moreover, it will provide support to reduce poverty of specific
geographic destination by improving their living of standards along with completing their basic
needs of life in accurate manner. However, it will also contribute large amount of money taxes to
annual income of country which can be used for further development properly.
Micro business – This can be described as small business which are generally operated
by an individual to run their business and sometimes involve family members. It include the
criteria of investing limited amount of funds and earn profit at small scale (Drucker, 2014).
Additionally, it has been observed and evaluated that around 5.15 millions of micro businesses
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are there in United Kingdom which are increasing rapidly and contribute to economy of UK in
proper manner after Brexit.
Small business – The small businesses can be described as independently running and
controlled business which usually have 5 to 500 staff members to conduct operational activities
or procedures on regular basis. Apart from this, annual profit which can be earned by small
business organisation in UK i.e. 10 million Euros. However, such enterprise are mostly situated
in local areas in order to manufacture desired products or services and may or may not bear
different sections of production and other procedures. Meanwhile, small firms are responsible for
generating more sources of earning maximum income after Brexit.
Medium size business – This can be explained about those firms who has around 100 to
999 employees for carrying out regular operational activities to earn better outcomes. They put
efforts to boost up their productivity as well as profitability in respect of improving growth of
business which facilitate to achieve success.
The impact of small businesses provide support to generate various employment
opportunities to people living in particular place which facilitate to reduce poverty and results
into improved development of the same. Meanwhile, the impact of micro and small businesses
are explained further –
Illustration 1: Impact of Economy on UK
(Source: Impact of Economy on UK, 2018)
Local impact – The new starts ups and small business are helpful to reduce rate of
unemployment in local areas which facilitates to fulfil actual basic needs of people living there
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(Fassin, Van Rossem and Buelens, 2011). It provide support to boost up standards of living of
citizens in United Kingdom in order to facilitating improvement to gain economic development
after Brexit. The FDI received will further helpful in development of the region. It has been
identified that over $7.7 billion received in the form of foreign investment by start-ups in the
country (Research Suggests Brexit Has Had Little Impact on U.K. Companies, 2018).
National impact – This can be explained about increasing economic stability at national
level with the help of small businesses in United Kingdom. It include to increase number of job
opportunities in country which render help to improve development at the same level. Moreover,
these small firms contribute a precious amount to annual income of the nation which is helpful to
achieve overall development properly. Additionally, the national GDP rate of United Kingdom is
around 1.62%.
Regional impact – In this part, small businesses are also beneficial at regional level as
they provide better quality of product or facilities at reasonable price which is easily affordable
by people. Therefore, they are helpful to fulfil actual desires of common citizens at limited prices
by manufacturing products by taking care of their budget of income (George and Bock, 2011).
P4 Importance of small businesses and business start ups for contributing to growth of social
economy after Brexit
The UK economy faced a substantial change after Brexit, or British Exit, which refers to
the opting out of UK from the European Union. The reason for this exit was that a referendum
was held regarding the UK leaving the EU, in which almost all the citizens above the voting age
could take part. More than 30 million people participated in this referendum and by majority, it
was decided that UK should no longer be a part of the European union.
There was a huge shift after the decision in the social economy of the country. The small
and medium-sized enterprises became essential towards their contribution towards the economy.
These contributions are discussed below:
Social and economic evolution – Small businesses and business start-ups are the ones
heavily impacted post Brexit. However, they are now the biggest contributors in evolution of
social and economic environment of the country. The uncertain rate of pound is forcing the
consumers to buy from large enterprises. Small and Medium Enterprises are helping in raising
the GDP of the country and bringing it back to shape. Also, by providing quality products at
cheaper rates, they are responsible for raising the standard of living of the people.
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Reducing Poverty– Many large enterprises were shutdown after the events of Brexit,
which resulted in increased poverty. Firms of Small and Medium Enterprises are contributing
towards reducing poverty by providing quality products at low prices. In addition to this, they are
providing employment opportunities to the individuals (Gorgievski Ascalon and Stephan, 2011).
Improvement in Annual income – Small businesses are being a heavy support for the
UK economy. Being directly affected by Brexit, these businesses are adopting strategies which
can cope up with the uncertain taxation policies of the country. Since more people are inclining
towards setting up business start-ups, it would eventually result in rise of business and exchange
in the country. Since more small and medium-sized enterprises capture the market and more
people will be employed, it will helpful to people of nation to fulfil their basic needs. Moreover,
increase in number of small businesses facilitate to boost up overall profits of industry which
facilitate to improve annual income of country in respect of achieving economic stability in UK.
Create employment opportunities – After Brexit, there was a spontaneous increase in
unemployment due to closing of many big firms that were a huge part of the community. Small
and medium- sized enterprises now have focused more in enhancing the quality of their products.
To achieve this, they are willing to recruit skilled and talented employees who lost their jobs.
This would have a two-way benefit (Goss, 2015). It would raise the standard of living of such
employees' families and the quality of the products of these enterprises will increase. These
businesses are willing to adopt technological advancements, and such rise in technology needs
efficient and skilled employees to achieve a competitive advantage and modernisation of these
organisations. With a great rise in business start -ups in United Kingdom, more opportunities for
skilled as well as talented individuals are being created almost everyday in the country.
TASK 3
P5 Characteristics, traits and skills of two successful entrepreneurs
It is very essential for entrepreneurs to be skilled and possess certain characteristics
which in turn makes it easier for them to drive their businesses towards success. These skills help
them raise a talented staff who in turn contribute towards expansion and success of businesses.
Following are the characteristics and skills of two of the most successful entrepreneurs of the
world: Henry Ford and Mark Zuckerberg.
Characteristics of Henry Ford :-
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 Creativity – To own one of the best auto mobile companies of the world, it is very
essential for its owner to be creative (Jones and Rowley, 2011). Henry Ford was attracted
to machines since his childhood, and was quite creative in building different kinds of
machineries which would further fulfil distinct requirements of people. In case of
managers, they do not usually focus on creativity and put efforts to complete desired
target properly. Visionary – To set your firm higher than the others, it is required to have a vision. Henry
Ford dreamt of setting up a franchise that could compete with the dynamic needs of
individuals. This vision made him produce cars which have no match in the outside
market. At the other hand, managers do not create vision but only fulfil objectives
allocated by higher authorities in proper manner.
Characteristics of Mark Zuckerberg :-
 Decisiveness - The major decisions of the strategies of Facebook Inc. are decided by
Mark Zuckerberg himself. His decisions are responsible for its major success. Even
today, the decision making of Mark Zuckerberg are treated with respect and honoured
among the world leaders. In addition to this, managers do not make huge decisions but
only follow instructions given by their superiors to follow them appropriately.
 Flexibility - No rigid entrepreneur can establish a successful business enterprise in a
dynamic business environment (Karlan and Valdivia, 2011). The flexibility in the nature
of Mark Zuckerberg reflects in the strategies he used to make Facebook Inc. a major
success. However, managers usually get stuck to specific set of rules & guidelines for
their sub- ordinates but never think to change them rather than higher authority will give
them instructions for the same.
Skills of Henry Ford :-
 Management - Ford is one of the biggest companies in the world with businesses
all around the world. There are multiple divisions in each enterprise owned by Ford. With
his effective management skills, Henry Ford has been quite successful in employing and
retaining one of the best individuals for the company which can also be ascertained from
the reputation of the company. Additionally, managers do management on the basis of
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instructions of their superiors but never make own strategy to retain efficient employees
in organisation.
 Evaluation - Henry Ford is known to have a critical evaluation of the procedures
of his company. Such evaluation and self reflection allows to reconsider the needs of the
business and choose appropriate strategies to make it grow. Moreover, managers evaluate
performance of employees in order to complete desired target on time but not think about
growth of overall organisation.
Skills of Mark Zuckerberg :-
 Communication - Mark Zuckerberg knows how to effective communicate with
concerned stakeholders and deliver suitable products in the market. He considers the
needs of the customers and give them exactly the right product to satisfy these wants.
Facebook Messenger is one such example. Meanwhile, managers only communicate
guidelines about desired outcomes which are required to be generated after completing
specific task.
 Leadership - It is the leadership quality of Mark Zuckerberg that has engaged his
employees in developing the biggest social media platform in the world. He continues to
motivate his employees and help them enhance their performance. In contrary to this,
managers only give instruction to fulfil given targets in daily basis rather than involving
employees to achieve huge objective.
P6 Entrepreneurial personality reflection to entrepreneurial motivation and mind set
The personality of an entrepreneur can be described about their style of working and way
of thinking which impacts positively on other people (Neck and Greene, 2011). However, their
effective as we ll as efficient skills and traits are helpful to motivate staff members to follow
their appropriate strategies of performing in order to gain better sales and profits. Moreover,
entrepreneurs have several factors of their personality such as lifestyle, risk taking ability and
background which reflects in their behaviour as well as performance. Meanwhile, these factors
are helpful to motivate employees and improve their working on daily basis.
OCEAN Theory
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Openness – This involves the open behaviour of an entrepreneur due to which they
utilise beneficial opportunities for career growth of employees to motivate them towards
improving their performance. However, they are required to be ready for accepting challenges
and making changes in system for welfare of business as well as staff members (Schaper and et.
al., 2014).
Conscientiousness – As per this factors, an entrepreneur required to be passionate and
conscious towards their goals & objectives of organisation. It involves to sustain their strong
position in market for which they need to work in consistent manner which make them to
encourage employees for increasing their efficiencies for achieving set target successfully
(Aspects of Entrepreneurial personality, 2017).
Extraversion – According to this, an entrepreneur required to be interactive and have
good communication skills in order to share innovative ideas with other members of company.
Additionally, they need to maintain an appropriate relation with co- workers which facilitate
healthy working environment for them and motivate them to remain hard working & loyal for
company.
Agreeableness – This factor determine about supportive nature of an entrepreneur
towards their sub- ordinates in order to make them motivated. Meanwhile, they required to have
teammates who are dedicated and loyal for competing tasks successfully in company.
Neuroticism - This include the ability of an entrepreneur in order to face overall risks as
they put efforts to resolve issues and conflicts of members to earn desired targets regularly
(Storey, 2016). moreover, this capability of entrepreneur make people loyal for them and
encourage to obey their instructions accurately.
TASK 4
P7 Examine how background and experience can hinder or foster entrepreneurship
The background and experience of an entrepreneur reflects in their style of working and
level of thinking which influence other people of organisation to follow them. It include family
background having several concept which are followed by a person while performing their tasks
such as maintaining trust and loyalty towards their work. However, educational knowledge and
qualifications reflects perfection of an individual in their performance and technique to increase
outcomes to achieve growth (Unger and et. al., 2011). Moreover, it has been observed and
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analysed that positive behaviour and motivating words of an entrepreneur influence their sub-
ordinates in more effective as well as efficient way so that they will never deny their instructions
and fulfil them in perfect manner in desired period of time with better results. Additionally, the
background and experience of Mark Zuckerberg and Henry Ford hinder or foster
entrepreneurship is described below –
Education – This can be explained as a highly important part for any entrepreneurs to
have good education. However, as they will be educated it can be easy for them to understand
the minor and major parts of their business. Mark Zuckerberg is known as a successful
entrepreneur who launched Facebook in the mid of college days. Additionally, he was
HARVARD graduate and very brilliant to technical skills due to which build several software
which results into his successful business FACEBOOK. In contrary to this, Henry Ford skip his
studies earlier and start working in machines which helps to increase his technical knowledge to
organise an auto mobile business successfully.
Family background – Moreover, father of Mark Zuckerberg used to provide education
about BASIC programming tools and he tried to use design games from his childhood which
facilitate perfection in his present business of social media. In case of Henry Ford, he has family
business of farming and Ford is not interested to continue the same and like to work on machines
which encourage him to start work in machine- shops. However, his working on machines and
later experiments make him learn about different technological aspects of auto mobiles in order
to establish successful business.
CONCLUSION
From the above report, it has been summarized that an entrepreneurship can be described
as an efficient process of designing, launching and running a fresh business concern for
achieving better results. It involves different types of entrepreneurial ventures such as small-
business, scalable, social, large scale, female and male along with their relation with typologies
including lifestyle venture, survival venture & managed growth ventures. However, it involves
firms micro, small and medium size businesses having impacts on local, national as well as
regional basis by increasing employment opportunities along with boosting up annual income
which is helpful to gain economic development after Brexit. Moreover, contribution of small
businesses such as social & economic evolution, reducing poverty, effects on taxes and income
as well as create employment opportunities are mentioned. Additionally, skills and
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characteristics or two entrepreneurs are described including flexibility, management, leadership,
vision, creativity and decisiveness about them. At last but not the least, role of educational
background and experience to hinder or foster had also discussed.
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