Report on Entrepreneurship and Small Business Management Study

This report provides a detailed overview of entrepreneurship and small business management, beginning with an introduction to the concepts of entrepreneurship and intrapreneurship. It identifies various venture types undertaken by entrepreneurs, including social ventures, lifestyle ventures, and public ventures, while also comparing public and private sector entrepreneurship. The report further examines the impact of micro and medium-scale enterprises (SMEs) on the UK economy, using statistical data to highlight their significance in terms of start-up numbers, employment, turnover, and VAT/PAYE registration. It concludes by emphasizing the importance of SMEs in driving economic development and fostering entrepreneurial awareness. This student-contributed document can be found on Desklib, along with many other resources to aid students in their studies.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................................2
LO1..............................................................................................................................................................3
P1.............................................................................................................................................................3
P2.............................................................................................................................................................5
P3.............................................................................................................................................................7
P4...........................................................................................................................................................10
LO2............................................................................................................................................................11
P5...........................................................................................................................................................11
P6...........................................................................................................................................................12
P7...........................................................................................................................................................15
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17
1

INTRODUCTION
In the recent times a lot of attention paid towards the development of entrepreneurship in the world, it
helps to generate employment and positively contribute towards the economic development. This
assignment focused on entrepreneurship and small business, it explores the meaning of entrepreneur
and Intrapreneurs and identifies the various venture run by an entrepreneur. It also uses statistics to
develop a vision about the gravity of SME in the economy. This assignment also provides a study of
traits and characteristics of successful entrepreneur and impact of lifestyle and background on their
success. Overall, it helps to enhance the knowledge and understanding of entrepreneurship and small
business in today's world.
2

LO1
INTRODUCTION
Entrepreneurship plays an important role in the development of the economy and helps to generate
jobs, entrepreneurs have stated some of the world’s best companies, and these companies have
contributed positively to the society. As a senior member of the Federation of Small Businesses, there
are a lot of active roles to play in the development of entrepreneurship in our area. In this report,
examination of entrepreneurship and various facts related to it explored. This report considers the
analysis of entrepreneurial mind-set, range, and scope of entrepreneurship and the factors that hinder
its growth.
BODY
P1
Entrepreneurship and Enterprise
Entrepreneurship is a process of starting a venture involved with the design and creating new or
improved products that are available in the market. This process is associated with a lot of risks because
of factors such as lack of funds, a low market share of the proposed product and poor business plan and
lack of knowledge of the entrepreneur (Drucker, 2014). Entrepreneurship provides the solution to the
existing problem that helps the society to grow.
An enterprise is a project that taken by the entrepreneur to build a company or a brand, generally, this
term is used to describe the business that is associated with risk and uncertainties. This term also
explains the age of the business, a business with less experience and new to the market is known to an
enterprise.
Difference between Entrepreneurs and Intrapreneurs
Intrapreneurs are a co-patterns or a senior manager working with the entrepreneur for development of
the enterprises (De Villiers-Scheepers, 2011). An entrepreneur is an independent in his working whereas
the entrepreneurs are dependent on the entrepreneur for working. The entrepreneur takes the
maximum risk and raises the funds for running the business. The entrepreneurs paid a salary by the
organisation where the entrepreneur takes the profit or loss of the business activity.
3

Venture undertook by Entrepreneurs
There are three basic types of venture that are taken by the entrepreneurs for their business this
includes entrepreneurs, lifestyle venture and social ventures. The choice of venture depended upon
various factors such as an ability to take the risk, funding available and the motive behind the starting
the venture.
 Intrapreneurs
Interpreters are not associated with the risk of business they are also not involved in fundraising
activates, but they play an important role in the business. They paid on salary but work hard for
the enterprise to grow and develop, they also find an important position in the company and are
the pillar to them. Like the entrepreneur, they also see a scope in the business and are highly
energetic and motivated towards the growth (Ridley-Duff and Bull, 2015).
 Social Venture
Social venture operates with a purpose to serve the society and address social issues such as
education, poverty, environmental issue and discrimination that have a bad impact. Such
ventures do not earn profit or revenue and focus to derive social changes (Ridley-Duff and Bull,
2015). They get their expenditure from donation or margin of the products that they sell.
 Lifestyle venture
Lifestyle venture runs to deliver a specific profit to their owner, which helps them to sustain a
particular level of lifestyle (Morris, 2015). The scalability and growth of such venture are limited
because the efforts that will be required for growth may tend to disturb the lifestyle of owners.
These ventures are involved with less risk and reward and started by limited resource funded by
the owner.
 Public Venture
Public venture or public entrepreneurship stated with the help of government or by the
government looking at the future need. They are large size project and tend to address a big
problem. Some of the public ventures also stated by the Mayors or senior public authorities to
address the issue that is dominant in their region (Klein, et al. 2010).
4

P2
Government governs public sectors or state-owned departments; they are also the backbone of the
economy and play an important role in the development of the nation. Whereas the private sector is the
operated by individual or group of individuals to serve a business objective, the difference between
public and private sector enterprise is
PUBLIC SECTOR ENTREPRENEURSHIP PRIVATE SECTOR ENTREPRENEURSHIP
 They are completely or partially owned
by the government
 They have low or zero profit margins
(Klein, et al. 2010)
 They raise money from tax or debentures
issued to the public
 They provide good quality job to all their
employees with various benefits
 The basic motive of the public sector is to
serve common people of the nation
 They are owned by individual or group of
individuals
 They run on high-profit margins
 They raise money from initial public
offering or investment
 They provide a competitive environment
with low job security to their employees.
 The run with the motive of growth and
maximise profits (Drucker, 2014).
The similarities between the public sector and private sector entrepreneurship are as follows:
 They both are customer centric and try to provide best possible service to the customers. The
image of public sector depends upon the level of customer satisfaction and the business growth
of private sector depends upon the customer service.
 Both of them provide opportunities for growth to all of their employees. The growth in the
private sector is upon the performance of the employees whereas the growth in the public
sector is based upon the seniority of workers (Drucker, 2014).
 The public and private sector enterprise are open to adopting new technology and business
practices related to them, they also try to implement positive changes for better service.
 Both of them are exposed to the risk of loss in business to the micro and macro environmental
factors.
 The organisation structure in both of the sectors tries to provide support and help to other
employees for their growth and development.
5

Overall the risk for the public entrepreneurship is less as they have strong financial support and the
timeline decided to recover the investment is also long but the public sector enterprise is more
associated with risk due to lack of funds. Every year the numbers of private enterprise opened are very
high in number in comparison to the private enterprise. The private enterprise re more controlled and
coordinated to minimise the risk of corruption but the risk of corruption is more in the public sector.
Social enterprise
Social enterprise is similar to the public enterprise in terms of the objective of service and profit making,
but they can be or cannot link to the government. They can largely vary on size and scale. They also have
the motive to serve the public but they address a different issue like poverty, health care, and education.
This makes social enterprise different. In terms of similarities, they allow good growth and support to all
of their employees and try to implement positive changes to make them better (Drucker, 2014).
6

P3
Impact of micro and medium scale enterprise on the economy
Micro and medium enterprise has been a key driver of the economy of UK, they have supported to
created employment and have created some of the new kinds of business models. In the UK, their
numbers have been constantly increasing and they are generating revenues through all kinds of
business. The analysis of their data based on various factors will help to understand their significance in
the economy.
 Number of SME start-ups
According to the BUSINESS POPULATION report for UK and 2016, the number of SME stated
were around 5.5 million that was ninety-seven thousand more than the previous year
(Department of business energy and industrial strategy, 2016). It has also seen a significant
change from the year 2000 and shown fifty percent growth in 2016 as compared to 2000. The
higher numbers of start-up have a good impact on the economy.
 Number of employing businesses
The numbers of employing business have increased to 19% as compared to the previous year.
This is a good growth rate in terms of employment in business. The total numbers of larges
sector business were 100, small sector businesses were 119, and the medium sector was 124.
The medium employers have seen a good growth rate in past five years (Drucker, 2014).
 Number of employment provided
The small and medium enterprise employment share has increased to 0.1 million from the past
decade and it has been stable at sixty percent from past years. The number of single owners has
seen a raid increaser from past years and has been steadily growing since them. This data show
that SME has resulted in overall growth in employment rate which has is helpful to the country.
 The annual turnover of SMEs
SME has a major part of the contribution to the UK economy; it has contributed to around
80.38% of the business turnover in the UK. In which the business with less than forty-nine
employee has contributed around 33.12% and the business with less than two hundred and
forty-nine employees have contributed around 47.26%. This is a fair share of the economy and
shows that SME has played a major role in development in the UK (Morris, 2015).
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 Number of registered SMEs for VAT and PAYE
In the UK, around 14% of sole proprietorships and 53% of partnership business have registered
for either VAT or PAYE, there is around three million business who have not registered for either
VAT or PAYE and 2.5 million companies who have registered for VAT or PAYE (Gallo, 2010). This
results in shoes that the contribution of SME in tax paying is significant. However, due to the
single person employed in business, the contribution to VAT or PAYE registration is less.
Percentage change in VAT payers from the year 2015-2016
Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/
559219/bpe_2016_statistical_release.pdf
 Number of actively trading companies
The numbers of actively traded companies have seen a very good growth rate in the year 2015-
2016, which was around 8% this rate, was very good as compared to the year segment 2010-
2015. This shows that SME has a positive impact on the economy of UK (Isaacson, 2012).
 Geographical Density
The geographical density of business is highest in London as per the number of business per
10000 adults followed by southeast. This shows that the distribution of growth is not
symmetrical and has resulted in migration due to business opportunity. These have helped to
grow the economy but have shown that the regional economy of areas such as northeast is
poor.
8

The data related to SME shows that the SME holds a very important position in the process of economic
development. They have contributed to the growth and development of the economy and have a share
of business in all the sectors. There has been good growth in the number of SME in England due to the
development of entrepreneurial awareness (Morris, 2015).
9

P4
Importance of SME in Economy
An enterprise employing more less than forty-nine employees is termed as a small enterprise, an
enterprise with more than fifty but less than two hundred forty-nine called as medium and an enterprise
that has more than two hundred and fifty employees called as a large enterprise. Business activities,
which run by a single person, are zero employee business (Ward and Rhodes, 2014). SME consists of
small, medium and zero employee business and they have a very important role to play in the economy.
SME contribute to a major part of the economy, In UK SME contribute to around 80% of the total
economy. They play an important role to help the large business operate as they supply them with
required utilities. They also contribute to tax share, but a large number of businesses are zero employee
business, they are not eligible for VAT or PAYE registration, which limits the scope of tax collection
(Ridley-Duff and Bull, 2015). They help to lender service throughout the country because they are widely
spread all over the UK. Due to new entrepreneurship wave, the number of new SME has seen good
growth since last years.
Overall SME has played a significant role in the economy of UK, due to constant growth in their number
and increaser in the total number of business personal it shows that the driving force for furthers
growth in the economy will be SME. They also help to improve the environmental business and
contribute to international sales (Ward and Rhodes, 2014).
CONCLUSION
The various factors studied in this report regarding entrepreneurship, type of entrepreneur venture and
their differences help to develop a clear understanding of the topic. The various statistics that presented
shows the strength of SME in the economy and the rice in their number shows that there is a good
scope of growth in entrepreneurship if risk managed. Overall, this report gives sufficient facts to
promote entrepreneurship in our area.
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LO2
P5
Steve jobs are worlds one of the most successful entrepreneurs, he has founded Apple company from
trash which is worth more than two hundred and twenty-nine billion dollars (Apple, 2018), he is studied
as a successful leader and entrepreneur throughout the world. Some of the characteristics of Steve jobs
are:
 He was not afraid of taking the risk and exploring new opportunities that related to his ideas and
products.
 Steve Jobs was very innovative in nature; he was having an eye that could see the need of
today’s world (Isaacson, 2012).
 He was not afraid of failure and failure motivated Jobs to make improvements.
 He believed in perfection and tried to make everything as perfect as possible. Due to this
quality, Apple became one of the best mobile phones in terms of technology and design.
 Steve Jobs had good money management skills and this helped Apple to grow rapidly.
 He was having good leadership skills that helped him to create a successful brand.
 He had the strong and clear vision about the product and service that he wants to offer.
 Steve had the good technical knowledge and he was able to identify people who would best for
the job (Gallo, 2010).
The traits of Steve jobs that led to accomplishment to his journey as an entrepreneur were:
 He was having a farsighted vision, which made him see through the computer era of that time
and identify the needs.
 He was rebellion in nature due to which he did not try the conventional methods of that time.
 Steve Jobs has a very high level of perseverance, which encouraged him to cross over all the
difficulties.
 He was highly adaptable to the new changes and trend of technology at that time.
 He had an ability to sell and promote his vision and products to people, which helped him to get
investors and some of the best minds at that time to work for him (Gallo, 2010).
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The qualities of Jobs are uncommon to find, but this can help to understand the certain skills of
entrepreneur are birth born whereas certain skills developed through hard work and persistence.
P6
Some of the factors that are responsible for reflecting the entrepreneurial motivation and mind-set
differ from one entrepreneur to other. Some entrepreneur may get motivated by the means of profit
earning while some get motivated by independence. Some of the aspects of that help in reflecting the
motivation and mind-set of the entrepreneurial personality include some of the common behaviours
which are as under:
Optimistic
Some of the entrepreneurs are optimistic and depicts a positive nature towards every situation and are
usually the risk takers (Curran and Storey, 2016).
Unbiased
Some entrepreneurs belong to such family backgrounds that have inculcated in them the impartial
nature that helps them to remain bias-free with everyone in different situations.
Dependable
Some of them come from a dependent family background and lifestyle that makes them dependent on
others for every advice or decision matters (Burns, 2016).
Observant
Entrepreneurs are usually the observant nature or trait that helps them in analysing and examining the
market trend and situations carefully so that the decision and actions can be effectively implemented.
Introvert
Some families tend to lay less focus on open discussion and communication with others so the
entrepreneurs that come from such backgrounds tend to be the same. The introvert personality of
entrepreneurs prefers less to interact with others (Curran and Storey, 2016).
Extrovert
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The entrepreneur’s personalities of extrovert are the one that is always open to the interaction and
communication and gain innovative ideas from being extrovert (Burns, 2016).
Well cultured
The families values and the beliefs make some personalities such well cultured that these inject in them
well-cultured entrepreneurship traits which helps them to consider the sensitiveness of every cultural
value.
Independent
Some entrepreneurs have the tendency of independent that takes all decisions without seeking for
anybody’s advice.
Apart from these common behaviours depicted above, there are some common personality traits of the
entrepreneurs that help in identifying the mind-set of the entrepreneur and help to identify their
motivational structure (Sundararajan, 2014). Some of the common personality traits of the self-
employed entrepreneur personalities are depicted as under:
Extraversion
Some entrepreneurs have inborn traits of being extrovert in nature these help them in depicting an
energetic personality through extrovert nature (Drucker, 2014).
Stability of emotions
Some entrepreneurs possess the stability in terms of emotions that helps to stay positive in their life and
entrepreneurship tenure. They can easily overcome the stress as well.
Diligence
Personality should be such that entrepreneur should have self-orientation on the achievements and he
should fulfil with conscientiousness all the duties and responsibilities (Caliendo, et al. 2015).
Open to new experiences
The personality traits that are present should be open to new experiences and the innovation such that
the new ideas can be injected into the business.
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Agreeableness
Through effective traits of bargaining power, an entrepreneur can easily convince other members of his
business with their cooperation (Berry, 2016).
Thus through family backgrounds, lifestyles and the personal experiences the entrepreneurial
personality reflects the mindset and motivation of the entrepreneurship.
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P7
There are some factors that hinder or foster the entrepreneurship experiences which comprises of the
background experiences that are gained by them through their education level, lifestyles, economic
circumstances, character traits and national culture (Curran and Storey, 2016).
Some of the examples of the entrepreneurs of HSBC Bank and the Samsung Company can be utilised to
understand the impacts of the past experiences and the personal backgrounds.
Like the entrepreneur of Samsung Company initiated his business in the trucking business but due to
lack of sources of funds and the work experiences he failed to effectively utilise the loans that he has
taken for his business. This thus depicts the hindrance that due to the lack of past experiences was faced
by entrepreneurs (Pfeifer, et al. 2016).
There are some other factors too that hinder the entrepreneurship which includes the technology and
the labours which should be present in sufficient quantity so that an entrepreneur can effectively carry
his business (Zhao, 2016).
Another example is of the HSBC Bank that understood the importance of the brand awareness so that it
can attain maximum customer base. Like through its past experience, it effectively utilised the brand
name of Tesco through the Tesco insurance which used to get the cash from the HSBC Bank. So it named
Tesco insurance which attracted huge customer base and generated huge profits and awareness. This
has helped to foster its progress and if it would have failed to understand the importance of brand
awareness t could not be possible for it to establish its recognition (Burns, 2016).
So an entrepreneur with strong family background and the personality traits it can conquer the market
even in the saturation stage, through the past experiences and personal family backgrounds it can foster
the entrepreneurship and effectively run the business through effectively applying the past knowledge
and experiences.
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CONCLUSION
As a senior member of the Federation of Small Business, this report has effectively helped in promoting
the entrepreneurship in the local area that has helped to depict the different entrepreneurial ventures
which an entrepreneur can go forwards to start a new business. Differences between the
entrepreneurship in the private and the public sector have also been understood together with the
insights about the characteristics traits and the skills of the entrepreneurs. Some of the aspects of the
entrepreneurial personality have also been used that has helped to reflect the motivation and the mind-
set of the entrepreneurs. Some relevant examples have helped in depicting that the personal
background of entrepreneur and the past experiences have helped entrepreneurship a lot and lack of
these factors can greatly hinder the entrepreneurship.
16

REFERENCES
1. Apple, Newsroom, Apple Reports Fourth Quarter Results, 2018 ( Online available at
https://www.apple.com/in/newsroom/2017/11/apple-reports-fourth-quarter-results/ last
assessed on 05 May 2018 )
2. Berry, T., 2016. 35 Common Characteristics of Successful Entrepreneurs. Online available at
(https://articles.bplans.com/35-common-characteristics-of-successful-entrepreneurs/) last
accessed March 2018.
3. Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
4. Caliendo, M., Fossen, F. M. and Kritikos, A. 2015. ‘Personality Characteristics and the Decision to
Become and Stay Self‐Employed’, SSRN eLibrary.
5. Curran, J. and Storey, D.J. eds., 2016. Small firms in urban and rural locations. Routledge.
6. De Villiers-Scheepers, M.J., 2011. Motivating intrapreneurs: the relevance of rewards. Industry
and higher education, 25(4), pp.249-263.
7. Department of business energy and industrial strategy, statistical release, business population
estimates for the UK and regions, 2016 ( Online available at
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/559219/bpe_2016_statistical_release.pdf last assessed on 01 May 2018 )
8. Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
9. Gallo, C., 2010. The presentation secrets of Steve Jobs: How to be insanely great in front of any
audience. Prentice Hall.
10. Isaacson, W., 2012. The real leadership lessons of Steve Jobs. Harvard business review, 90(4),
pp.92-102.
11. Klein, P.G., Mahoney, J.T., McGahan, A.M. and Pitelis, C.N., 2010. Toward a theory of public
entrepreneurship. European management review, 7(1), pp.1-15.
12. Morris, M.H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
13. Pfeifer, S., Šarlija, N. and Zekić Sušac, M., 2016. Shaping the entrepreneurial mindset:
entrepreneurial intentions of business students in Croatia. Journal of Small Business
Management, 54(1), pp.102-117.
14. Ridley-Duff, R. and Bull, M., 2015. Understanding social enterprise: Theory and practice. Sage.
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15. Sundararajan, A., 2014. Peer-to-peer businesses and the sharing (collaborative) economy:
Overview, economic effects and regulatory issues. Written testimony for the hearing titled The
Power of Connection: Peer to Peer Businesses.
16. Ward, M. and Rhodes, C., 2014. Small businesses and the UK economy. Standard Note:
SN/EP/6078. Office for National Statistics.
17. Zhao, Y., 2016. ENTREPRENEURIAL MINDSET. Education for Sustainable Happiness and Well-
Being, p.66.
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