Entrepreneurship & Small Business Management: UK SME Impact

This report examines entrepreneurship and small business management, focusing on the impact of Small and Medium Enterprises (SMEs) on the UK economy. It discusses different types of entrepreneurial ventures, including small-scale, large company, and social entrepreneurship, highlighting their similarities and differences. The report also analyzes the role of entrepreneurship in the public and corporate sectors, critically examining the growth, development, and scope of various ventures. Further, it explores the significance of company startups in augmenting the social economy and determines the attributes, character, and aptitude of successful entrepreneurs. The report also assesses how entrepreneurial character reflects industrial inspiration and state of mind, linking entrepreneurial characteristics with personal background and experience, and providing a critical evaluation of how background influences entrepreneurs with examples. The document is available on Desklib, a platform offering AI-based study tools and a wealth of academic resources for students.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Different types of Entrepreneurial Ventures..........................................................................3
P2 Differences and similarities between the Entrepreneurial Ventures......................................4
M1 Understanding of Entrepreneurship in Public and Corporate Sector....................................5
D1 Critically examination of growth, development and scope of ventures................................5
P3 Impact of Small and Micro Enterprises on Economy............................................................6
P4 Description of the significance and company start ups to the augmentation of the social
economy.......................................................................................................................................7
M2 analysis of the differences make by SME’s to the UK economy..........................................8
D2 Ways in which small businesses impact different level of economy in global, regional,
national and international level....................................................................................................8
P5 Determination of the attribute character and aptitude of successful entrepreneurs that
differentiates from other trade administrators.............................................................................9
P6 Assessment of the ways through which the entrepreneurial character reflect industrial
inspiration and state of mind......................................................................................................10
M3 Different lines of argument related to entrepreneurial characteristics................................11
D3 Skills, traits and motivational drivers of two successful entrepreneurs...............................11
P7 Expression with the help of illustrations about the conduct through which private
surroundings and knowledge can promote entrepreneurship....................................................11
M4 Link between entrepreneurial characteristic along with influence of personal background
and experience of specific successful entrepreneurs.................................................................12
D4 Critical evaluation of the ways background and experience influences entrepreneur
according to example.................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is a process which involves the planning, organizing, designing and
launching the ideas for the development of the new business. This report will discuss the impact
and contribution of the small and medium business of UK over the development of the economy.
The report will also cover the different types of the entrepreneurial venture and their relation
with the typology of entrepreneur. Further, the report will also discuss the differences and
similarities between the three entrepreneurial ventures.
MAIN BODY
P1 Different types of Entrepreneurial Ventures
Entrepreneurial Ventures
This is a venture which is start and run by the individual with the help of limited
resources but with high risk. But all the ventures are not same and include new business ideas
related to the products and services (Marquis and Qiao, 2020).
Three types of Entrepreneurial Ventures
 Small-scale Entrepreneurship: This is a type of business which are too small and
privately held by the family members. The funds raised by this venture is from family,
relatives, small business loans etc. Their main objective is to earn large amount of profit
by selling products and services. For example: UK Grocery stores.
 Large Company Entrepreneurship: This is a type of venture that main objectives are to
increase the customer base by providing them products and services as per their taste and
preferences. They also put their focus on the competitors’ steps and government
legislation and regulations in order to maintain their core products and to take
competitive advantage and earn profit.
 Social Entrepreneurship: This is not for profit and hybrid type of companies that’s main
focus is social welfare rather than profit maximization. They provide the product and
services to the customers as per the social needs and problems and the funds they
generate from the market via donations and charity (Marquis and Qiao, 2020).
Relation of the Ventures with Typology of Entrepreneurship

Typology of entrepreneurship means the different types of the entrepreneurs. The
interrelation between the small-scale venture and the craftsman typology is that their less capital
requires, no investment is necessary, no communication skills is required but professional skill is
must. The interrelation between the large company & social venture and risk-oriented &
managerial typology is that there is uncertainty exist related to the new products and services, a
lot of investment is required as well as high in risk rates (Gümüsay, 2018).
P2 Differences and similarities between the Entrepreneurial Ventures
Differences between these Ventures
Basis Private Enterprise Public Enterprise Social Enterprise
Roles Providing customers
with different
products and services
as per their basic
needs.
Providing high-
quality products and
services and reinvest
their profit to earn
high returns.
This makes the
society aware with the
issues such as poverty
and provide them
goods to fulfil their
basic needs.
Objectives This is owned by
individually and joint
family members.
Put focus on CSR and
funded by government
bodies.
This are established to
provide safety to the
society.
Characteristics Profit maximization. Serve customers with
high-quality products
even at recession.
Making the UK a
better place for people
to live.
Similarities between these ventures
All the entrepreneurial ventures main and important objective is that they always provide
the product and services which meets the needs and preferences of the customers. For these types
of ventures their customers are always their first priority and their trust over the companies’
products and services. It is because customers are the one to whom this all venture sells their
products and services. Maintaining the prices of the products is also same for the all ventures
because the high prices products are not affordable and purchasable by the society (Marquis and
Qiao, 2020).

M1 Understanding of Entrepreneurship in Public and Corporate Sector
 Public Sectors: This is a sector in which government have high intervention on the
enterprise activities. This sector includes the businesses which are basically self-financed
and are under the ownership of UK governments. Generally, these enterprises deal in a
public goods and services such as military goods, infrastructure etc.
 Corporate Sector: In this sector, the companies deal in a various daily use and luxurious
products. Here many companies take operation in same industry and can also provide
manufacturing and import and export products and services. For example: Tesco and
Sainsbury in retail sector (Block and et.al., 2018).
D1 Critically examination of growth, development and scope of ventures
The growth, development and scope of the different ventures are as follow:
 Scope: This private enterprise is narrow in scope. While on the other hand, public
enterprise is wider in scope. Not only that, the social ventures are also wider in scope.
 Development: The private ventures focus more on self-development. But the public
companies focus both on self and country development. And social venture’s main
purpose is country development and enhancement.
 Growth: The growth of private sectors are more and rapidly increases in UK (Fard and
Amiri, 2018). Public enterprises growth is fast and static in nature and still customer
prefer more public enterprises rather than public enterprises. This social company is a
NPO and work for the growth of poor people rather than their own business.

P3 Impact of Small and Micro Enterprises on Economy
In UK, the small and micro business plays very important and crucial role because their
sales turnover and growth are much better and increasing trend in nature. The above picture state
that there are 4.5 million of small and medium enterprise exist in UK as compared to the large
businesses. In the year 2017, the average growth rate of the SME in the UK was 37% which was
increase to 48% in the year 2019. It is because they provide the best quality products and
services to the customers at low and standard prices. Basically, in UK the export opportunities
are being created by the small and micro business and the impact of which the entire GDP of the
country is get improved. Not only that, the employment provided by the small and medium
business in the UK was quite high as compared to the large businesses.

Around 99.3% of the employment is provided by the UK small business and also
candidates prefer more the small business. It is because of the flexible working hours and
conditions along with the more growth opportunity in less time. Basically, total employment in
SME was 15.7 million and that was equal to the 60% of the all-private sector employment in the
UK. In recent time, the economy of the UK was growing because of the small and micro
businesses (Ghouse, McElwee and Durrah, 2019).
P4 Description of the significance and company start ups to the augmentation of the social
economy
In order to maintain the development of the social economy, the start up trade firms have highly
persuade within different countries. The new constructed business always comes up with the
innovative ideas in order to produce goods and services that can meet certain requirements of the
firm in order to achieve high profit margins in front of their competitive firms. Moreover, there
are certain conditions in which the start up business capture the market in quick manner and able
to manage the higher revenue in very short span of time. In such procedure, the firms are able to
give higher tax benefits to the government that helps in order to enhance the economy of the
country in overall manner (Gornostaeva, Z.V., Kushnaryova, I.V. and Alekhina, E.S., 2017).
Apart from this, the new start up firms also provides effective employment opportunities to the
people who are highly in need of the employment in order to increase their life style and sustain
within the society. There are many starts up companies who are unable to provide higher wages

to their workers due to lack of capital and such organizations hire somehow lesser amount of
skilled employees at lower packages which ultimately helps to resolve unemployment issues
within the society.
Most of the start up organizations is associated with different types of corporate social
responsibilities in order to enhance the brand value within the external environment. In this way
such firms offer education facilities to the people living in the rural area who are poor enough to
not afford education facilities on their own. Such people feels highly overwhelmed with such
activities offered by the firm and thus help in total economic growth (Jalilov, S.Z.U., Annayev,
A.A. and Mukhammedov, M.M., 2018). Irrespective of this, there are numerous starts up firms
that are established in different industries within the United Kingdom, which provides higher
amount of contribution towards the enhancement of the overall growth of the UK economy. It
also helps in order to earn foreign currency towards their country.
M2 analysis of the differences make by SME’s to the UK economy
In the UK, the small and medium sized business organizations are higher as compare to
large organizations. Thus the small and medium sized firms capture huge part of every industry
and contribute majority of part to the economy of the UK rather than the large business
organizations. However, large firms consist of different operational activities and employ highly
talented people in the establishment. On the other hand, small firms focus on providing
innovative products to the society along with export of goods and services which reduces
unemployment problems (Jalilov, S.Z.U., 2018)
D2 Ways in which small businesses impact different level of economy in global, regional,
national and international level
With focusing on hiring employees with lesser salaries and employ people who have lesser
talent and skill set as compared to other firms due to lack of finance creates majority of impact at
various different levels of economy.

P5 Determination of the attribute character and aptitude of successful entrepreneurs that
differentiates from other trade administrators
Different types of characteristics and skills are highly essential for the business people in
order to start up a successful business enterprise and thus increase its business growth. In order
to start a new and innovative business concern different process and procedures needs to be
fulfilled in order to start fresh enterprise and at initial stage the entrepreneur is the one who have
to start their business activities solely due to lack of capital (Bartolacci, F., Caputo, A. and
Soverchia, M., 2020). The certain characteristics that is highly important in order to become an
effective entrepreneur such as:
 Ability to produce new and innovative ideas.
 Capability to take risks within the functioning.
 Must have clear vision and goals for the betterment of the organization.
 Highly motivated in order to achieve goals of the organization.
 Good and effective management skills related to resources, human resource and financial
abilities.
However, few most important personal skills that are highly required within an entrepreneur are
as follows:
 Effective communication is the most important ability that is required in order to interact
with various kinds of people which include distributers, suppliers, employees, customers
and many other people who are required to be communicated in most appropriate
manner for the betterment of the organization and their future benefits.
 The requirement of leadership skills is highly important in order to direct the followers
towards the correct direction so that they are able to achieve organizational pre
determined long term goals and objectives effectively.
 Negotiation skills also one of the most critical and required skill in order to deal with
various kind of customers and also to alleviate various internal policies in order to
achieve success in the tasks (Schleich, J. and Fleiter, T., 2019).
 Having an ability related to time management is also a significant ability in order to
complete the assignments or tasks within stipulated period of time in order to achieve
victory through satisfying their customers in most appropriate way.

 Listening to their followers or employees is also one of the most important ability which
is highly required within an entrepreneur in order to run their business activities along
with the inclusion of various kinds of innovative ideas of different people which helps in
running the business effectively.
P6 Assessment of the ways through which the entrepreneurial character reflect industrial
inspiration and state of mind
The entrepreneurial personality or characteristics are an important aspect within an
individual in order to set up a well reputable trade organization and be encouraged in order to
deal with different various kinds of trouble and hazard that are connected with it. The
personality of an entrepreneurial person involves various kinds of characteristics through which
one can able to generate new and innovative ideas and thus implements it into their business
activities in order to achieve success and generate revenue which affects the profit margins of the
organization (Ferreira, A.D.S.M., Loiola, E. and Gondim, S.M.G., 2017). Those ideas should be
highly efficient enough to fulfil the desires and demands of the customers and thus a business
person needs to continuously develop those ideas for sustainability of the overall business
activities. He must also able to take risks regarding various tasks within the organization as it is
highly important to take for the challenges in the form of facing hazards and find solutions to
resolve them in most appropriate manner. The person must also able to do optimum utilization of
resources in order to reduce wastage of produced goods and services. The individuals have to
set the vision, goals and mission production industry at very early stage and develop strategies
accordingly in order to achieve success within their firms operations. The entrepreneur must
have the abilities to identify various opportunities within the market space regarding sales
activities as it helps in order to generate revenue for the firm in most effectual way which helps
to create brand image within various other competitive firms and attract more potential
customers towards their business activities through effective methods. Therefore, it has been
evaluated that the entrepreneurs are needs to be self motivated in order to run the business
enterprise successfully along with the management of various kinds of risks related to it and
helps to create complete state of mind to achieve the ultimate goal of the business actions.

M3 Different lines of argument related to entrepreneurial characteristics
The characteristics of entrepreneur are quite similar to the characteristics of leader.
Entrepreneur needs to deal with goal setting, risks involved in tasks, planning, handling team and
other stakeholders such as suppliers, investors, and many others (Loiola, E., 2017). They are
responsible to allocate resources along with showing direction to team members to complete the
task.
D3 Skills, traits and motivational drivers of two successful entrepreneurs
The entrepreneur of the Monster group which is Rana Harvey is the best example for
showing this as she is highly adoring and motivated to run business along with discipline to
complete her tasks (McElwee, G., 2019).
Another example is Zac Williams who is the owner of Grad Touch which provides
support to the students in order to provide them consultancy services to the business firms to
recruit highly skilled employees within the firm.
P7 Expression with the help of illustrations about the conduct through which private
surroundings and knowledge can promote entrepreneurship
Personal background of an individual and their experiences highly affects the business enterprise
and it has an ability to promote or hold back the whole trade industry. The personal background
of the entrepreneur consists of support from the family members, friends, motivation from them
and financial support from them as well also included in it. In this whole procedure if an
individual can correct support from their family and friends, then they can feel highly motivated
to start up their new business while taking various risks as well. The support works positively in
order to enhance the motivation and risk taking abilities within oneself that can promote
entrepreneurship. The financial background of the family and their own self can help in order to
take risks and thus increases the risk taking ability within them while starting up their business
organization (Parente, R., and et.al., 2021). However, on the other hand, those individuals who
are lacking behind in order to get support from their family and friends and thus they feel highly
de-motivated in their entrepreneurship abilities.
Moreover, the personal experiences of an individual also help a lot in order to influence
entrepreneurship abilities within them. If the experience of that person are good than they are

able to run their business organization in most appropriate manner even after taking various kind
of risks at very primary stage (Martínez-Romero, M.J., Martínez-Alonso, R. and Casado-
Belmonte, M.P., 2020). This helps them to run their business for longer duration of time. They
also feel completely motivated from very early stage i.e. starting up of their business. On the
other hand, if the experiences of an individual are not good enough so that they can run business
on their own then the person constantly feels afraid while starting up their business actions in
front of other competitive firms.
M4 Link between entrepreneurial characteristic along with influence of personal background and
experience of specific successful entrepreneurs
The personal experiences and background allows an individual to set up a successful business.
Such as Ms Rana Harvey is initially a chemist who set up their own business named Monster
Group with their effectual skills and abilities along with using her own office as chemistry lab in
order to work effectively (Schleich, J., 2019).
Another example is Zac Williams who provides consultancy to the students who are
looking for good job opportunities. With the help of this, he himself builds high level of
motivation within himself (Parente, R., and et.al., 2021).
D4 Critical evaluation of the ways background and experience influences entrepreneur according
to example
Ms Rana Harvey and Zac Williams both have high level of motivation to start their own
business and deal with many challenges in effective manner with the support of their team
members. However, many businesses are unable to survive for longer duration of time because
of inefficient team members along with lack of motivation. Previous experiences also affect the
businesses entrepreneur in order to take decisions whether having complete financial support or
not, it includes various kinds of risks.
CONCLUSION
From the above report, it has been concluded that start up business are of various kinds
which includes small, medium, micro as well as large business enterprises. However, from the
detailed study within the above descriptive report, it has been evaluated that the small business