Entrepreneurship & Small Business Management Report - UK Economy

This report provides an overview of entrepreneurship and small business management, focusing on the UK economy. It defines entrepreneurship, enterprises, and different venture types like smaller profit ventures, high growth ventures, social entrepreneurship, lifestyle ventures, and serial entrepreneurs. The report explores the similarities and differences between these ventures, using Better Placed Ltd as a case study. It assesses the impact of micro and small businesses on the UK's economy, highlighting the importance of SMEs and providing relevant data and statistics. Furthermore, the report delves into the entrepreneurial mindset, discussing the characteristics, traits, and skills of successful entrepreneurs, and examines the influence of personal background and experience on entrepreneurship. The analysis covers both the public and corporate sectors, emphasizing the role of government support and innovative ideas in business growth. Desklib offers more resources for students.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
admin

Table of Contents
INTRODUCTION................................................................................................................................2
L01- ILLUSTRATION OF THE DIFFERENT VENTURE TYPES THAT CAN BE CONSIDERED
ENTREPRENEURIAL..........................................................................................................................3
P1- DIFFERENT ENTREPRENEURIAL VENTURES AND THEIR RELATIONSHIP WITH THE
TYPOLOGY OF ENTREPRENEURSHIP............................................................................................3
P2- EXPLORING THE SIMILARITIES AND DIFFERENCES BETWEEN THE DIFFERENT
ENTREPRENEURIAL VENTURES....................................................................................................5
M2- INVESTIGATION OF THE DIVERSE RANGE OF ENTREPRENEURIAL VENTURES TO
DEMONSTRATE A BETTER UNDERSTANDING OF THE PUBLIC AND CORPORATE SECTOR..........8
TASK 2- ASSESSMENT OF THE SMALL BUSINESSES OF THE UK ECONOMY...................................10
P3- ASSESSMENT OF THE IMPACT OF THE MICRO AND THE SMALL BUSINESSES ON THE UK'S
ECONOMY..................................................................................................................................10
P4- IMPORTANCE OF THE SMALL BUSINESSES AND START-UPS IN THE GROWTH OF THE
SOCIAL ECONOMY.....................................................................................................................13
M4- EVALUATION OF THE DIFFERENCES BETWEEN THE MEDIUM, SMALL AND LARGE SCALE
BUSINESSES IN MAKING THE ECONOMY THROUGH DATA AND STATISTICS............................15
L03- DETERMINATION OF THE KEY ASPECTS OF THE ENTREPRENEURIAL MINDSET....................18
P5- CHARACTERISTICS TRAITS AND SKILLS OF THE SUCCESSFUL ENTREPRENEUR AND THEIR
DIFFERENTIATION FROM THE OTHER BUSINESS MANAGERS...................................................18
P6- DISCUSSION ON THE ASPECTS OF THE ENTREPRENEURIAL PERSONALITY REFLECTION ON
THE MINDSET AND MOTIVATION..............................................................................................20
M3- EXPLORING THE DIFFERENT LINES OF ARGUMENT THAT ARE RELATED WITH THE
ENTREPRENEURIAL CHARACTERISTICS......................................................................................22
LO4- APPLICATION OF THE HUMAN RESOURCE MANAGEMENT PRACTICES...............................23
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P7- EXAMINATION OF THE RELEVANT EXAMPLES OF HOW THE BACKGROUND AND
EXPERIENCE FOSTERS OR HIDERS ENTREPRENEURSHIP...........................................................23
M4- ANALYSIS OF THE LINK BETWEEN THE ENTREPRENEURIAL CHARACTERISTICS AND
INFLUENCE OF THE PERSONAL BACKGROUND AND EXPERIENCE OF SUCCESSFUL
ENTREPRENEURS.......................................................................................................................25
CONCLUSION.................................................................................................................................26
REFERENCES...................................................................................................................................27
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INTRODUCTION
The word “entrepreneurship” defines the ways of launching a new business, different methods
of training and framing of small businesses from the starting levels. Entrepreneurship plays a
major part in enhancing the economy of the country. There are different sized business like the
small, medium, micro and the large-scaled business in the UK that are highly contributing to the
economy of the UK with the help of the various innovations and inventions in their businesses.
The entrepreneurs start their businesses with the limited number of resources they pose and
then grow them continuously.
This report is majorly focusing the management of the small businesses of the UK. The case
study of one of a small business venture named Better Placed Ltd, UK has been taken in this
assignment. The company is one of the famous recruitment organizations that is also dealing
with the sales and marketing and offers their services to wide range of industries for more than
15 years (Better Placed Ltd, 2017). The company has their offices in the Leeds, London and
Manchester and their main aim is to provide high-quality recruitment solutions, better career
opportunities and best working environment to the employees.
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L01- ILLUSTRATION OF THE DIFFERENT VENTURE TYPES THAT CAN BE
CONSIDERED ENTREPRENEURIAL
P1- DIFFERENT ENTREPRENEURIAL VENTURES AND THEIR RELATIONSHIP
WITH THE TYPOLOGY OF ENTREPRENEURSHIP
ENTREPRENEURS AND ENTREPRENEURSHIP DEFINITION
The individuals that run their own small businesses rather than working as an employee in
some organizations along with the different risks involved in their business are referred as the
entrepreneurship. This process of establishing the own business with the individual capabilities
and willingness is referred as the entrepreneurship (Burns, 2016).
ENTERPRISE
The business organizations that are being established by the individuals to pursue their
entrepreneurial endeavours and the attainment of high profits are referred as the enterprises
(Makhbul and Hasunm, 2010).
Figure 1: Concept of Entrepreneurship
Source: [http://www.swiftutors.com/estimating/qualities-of-an-entrepreneur.php]
ENTREPRENEURSHIP CONCEPT
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The individuals take the complete responsibility of the business in the entrepreneurship to
manage the growth of the business and perform the different actions to make it highly
successful in the market (Parker, 2011).
There are varied entrepreneurial ventures pr4esent in the market some of them and their
relation with the typology are mentioned below-
SMALLER PROFIT VENTURES- the ventures that are established with the aim to make their
lifestyle a decent one rather than earning huge profits for themselves are referred as the small
ventures. Better Placed Ltd is one of the small business ventures in the UK.
HIGH GROWTH VENTURES- The organizations that aim at attaining higher profits in the
business by pushing up their envelopes are referred as the high growth ventures that attract a
large number of investors. Development of the high-quality products and services are their
main focus (Drucker, 2014).
SOCIAL ENTREPRENEURSHIP- There are individual who works only for the social causes and
welfare who are referred as the social entrepreneurs and aims at resolving the problems of the
other individuals, environmental issues and communities improvement (Gicheva and Link,
2013).
LIFESTYLE VENTURES- the ventures established by the individuals with the ultimate aim of
sustaining a particular level of income for themselves and establishment of a foundation with
the help of which they can easily enjoy their life are referred as the lifestyle ventures (Drucker,
2014).
SERIAL ENTREPRENEURS- The serial entrepreneurs are the individuals who first establish their
businesses take them to the development stages and then provide its response to some other
individuals by just keeping a little share of the profit.
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P2- EXPLORING THE SIMILARITIES AND DIFFERENCES BETWEEN THE
DIFFERENT ENTREPRENEURIAL VENTURES
The different entrepreneurial ventures have different characteristics and similarities which are
depicted as below-
ENTREPRENEURIAL
VENTURES
RELATIONSHIP
WITH THE
BETTER
PLACED LTD
SIMILARITIES DIFFERENCES
SERIAL Various
innovative ideas
are being offered
by the employees
of Better Placed
by following the
concept of serial
entrepreneurship.
The serial
entrepreneurs use the
varied innovative
approaches for the
company’s
development and then
they switch on to
other businesses
(Jóhannesson, 2012).
The employees of
serial ventures
sometimes get
demotivated due to
the attainment of the
lesser profits in the
business
SMALL BUSINESSES Better Placed Ltd
is one the small
business
organization that
was started with
few employees
which now have
grown up to 44.
The small ventures
invest their limited
resources in the
business and then
wait for a longer
duration to attain the
profits which involve
high risks.
Different risks and
barriers are faced by
the small scale
venture for the
gaining the profits.
They have high
chances of downfall
(Plehn-Dujowich,
2010).
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INTRAPRENEURSHIP The employees of
the Better Placed
Ltd interact with
the different
clients and the
customers which
enhances their
skills of
entrepreneurship.
The company has
the complete
ownership and its
organizations
management has
been benefitted
(Fillis and
Rentschler,
2010).
The stakeholders of
the Better Placed Ltd.
take regular risks in
the business to reduce
the complexities and
solve the relevant
issues.
Under this approach
sometimes the
stakeholders indulge
themselves in the
different business
rather than taking
risks and improving
their own business.
SOCIAL The employees of
the organization
engage
themselves in the
different activities
related to the
customer service
to devote
themselves to the
social services.
The employees of the
social ventures
provide charity to the
people and help the
unprivileged people so
that they remain
motivated to maintain
the sustainability of
the organization
(Santos, 2012)
The shareholders and
the investors of the
social ventures seem
to take less part in
the organization due
to the fear of sharing
the profits.
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The lifestyle ventures aim to start and bootstrap their businesses by not to expand and grow
while the aim of the high growth ventures to grow and develop their organizations and to attain
high profits in the business. The lifestyle ventures have slow growth rate and cannot exit their
business while high growth ventures have high growth rate and can exit anytime. While, both
the ventures have the similarities that they both seek to attain the bonuses and the rewards for
their outstanding performance in the organization (Santos, 2012).
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M2- INVESTIGATION OF THE DIVERSE RANGE OF ENTREPRENEURIAL
VENTURES TO DEMONSTRATE A BETTER UNDERSTANDING OF THE PUBLIC
AND CORPORATE SECTOR
The part of the economy that has been made up by the companies and is the subset of the
domestic economy which excludes the private households, economic activities of the general
government and other non-profit organizations that serve the individuals is referred as the
corporate sector. While that portion of the economic system that is generally controlled by the
local government, national or state governments that provide benefits to the citizens of a
country is referred to as the public sector (Katongole et al. 2013).
During the start of the new venture, it has been expected by the entrepreneurs that their
employees engage and participate more in the company's progression. The private sector
organization easily gain acceptance in the market and become successful because of the
innovative ideas in the business. Better Placed Ltd is one of the organizations of the corporate
sector that has faced a large number of obstacles during establishment but still has managed to
attain high growth. The company has attained a high competitive advantage over the other
recruitment firms in the UK due to the adopting the best practices in the sales, marketing and
recruitment and offering best solutions to the clients. This shows that the entrepreneurs of the
private sector have attained high growth due to the motivation and innovative ideas (Makhbul
and Hasun, 2010).
While the organizations of the public sector require fewer resources and capital for
establishment but attain large profits as they are being supported by the UK government
through the various schemes of incentives for the development of the social sectors. The
different glitches and the challenges that the organizations are being faced are resolved by
these schemes due to which they easily emerge in the public sectors (Mazzucato, 2015). Large-
scale enterprises are supported financially by the public sectors and the entrepreneurs must
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launch their businesses in the public sector as they are supported by the government which is
missing in case of corporate sectors.
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TASK 2- ASSESSMENT OF THE SMALL BUSINESSES OF THE UK ECONOMY
P3- ASSESSMENT OF THE IMPACT OF THE MICRO AND THE SMALL BUSINESSES
ON THE UK'S ECONOMY
There are different types of the organizations present in the UK which is defined below-
MICROENTERPRISES- Those businesses that have their employee size between the range of 5-
10 and their annual turnover is approximately around 2-3 million euros are referred as the
micro-enterprises (Short, et al. 2010).
SMALL BUSINESSES- Those business organizations that have their employee size between the
range of 15-50 and the annual revenue generation is around 10-12 million euros are the small-
scale businesses (Mueller, 2011).
MEDIUM BUSINESSES- Medium businesses tend to have an employee range as 50-250 and they
earn a total business revenue of around 50-60 million euros annually (Mueller, 2011).
LARGE BUSINESSES- The large scaled businesses contributes a major part to the economy of
the country and consists of a large number of employees with high profits and revenues (Short,
et al. 2010).
PRIVATE SMEs- The businesses that are being owned by sole proprietors, individuals or two or
more partners are the private SMEs which contribute a limited market area of UK.
DATA AND STATISTICS OF THE SMEs IMPACT ON ECONOMY
It has been observed that the number of small and the medium-sized businesses during the
start of the year 2017 were approximately 5.7 million which were almost 197,000 more than
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