Entrepreneurship & Small Business: Impact, Skills, and Ventures

This report explores entrepreneurship and small business ventures, focusing on different types of entrepreneurial ventures, including small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship. It examines the impact of small businesses on the UK economy, supported by statistical data, and highlights their importance in the growth of the social economy. Furthermore, the report identifies essential skills and characteristics of successful entrepreneurs, differentiating them from managers, and discusses the motivation and mindset required for entrepreneurial success. Finally, it considers the background and experiences that can either hinder or foster entrepreneurship, providing a comprehensive overview of the entrepreneurial landscape. This document is available on Desklib, a platform offering study tools for students.

Entrepreneurship and small
business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
LO2..................................................................................................................................................5
P3 : Impact of small businesses on the economy with statistical data ........................................5
P4 : Importance of small businesses and start- ups in the growth of social economy ...............6
LO3..................................................................................................................................................7
P5 : Skills and characteristics of successful entrepreneur and difference between manager and
entrepreneur.................................................................................................................................7
P6 : Motivation and mind set of entrepreneur ............................................................................9
LO4................................................................................................................................................10
P7 : Background and experience which hinder and foster the entrepreneurship .....................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is a process of business by taking different type of risk related to managerial
and financial. The entrepreneurship venture may be of different type of structure and it required
certain skills and ability in the entrepreneur to develop the business in the market. The
entrepreneur experience and personal background may affect the business. This report is focused
on the types of entrepreneur ventures and the effects on the economy. Along with this, skills and
vision is needed to set up the business with the involvement of entrepreneur e experiences and
skills. Impact of small business and micro business on the country economy and their importance
to grow the economy by start-ups. Whereas, what entrepreneur skills are required to get
successful in the market and are different from the managers (Bertoni, Martí, and Reverte, 2019).
It also shows Entrepreneur mindset to the work and always being motivated to achieve the target
goal and make the business success and also shows the personal background and skills that effect
the business development.
MAIN BODY
LO1
Types of entrepreneurial ventures are:
Small business entrepreneurship: This type of business are run by the owner or few
numbers of employees are there. The revenue generation is not much high in this business and
are continuously focusing on increasing the sales of the business and developmental of the
product and services. This type of busibne3ss are run by the family or friends as a partner in the
business This business are mostly work as a restaurant, retail stores, producing organics
agriculture. Whereas, some small business are providing very innovative product and service to
the customers which grows rapidly. Their main source of funds from the local banks loan ,
family and friends, or by micro loans. This type of business is within the range of town and can
be measurable and limited,
Scalable start-up entrepreneurship: This business start with some innovative ideas and
focus on giving innovative product and service from their initial level. This type of entrepreneur
believes that their idea can change the world and better prospective to look the business. They
always search for the investment from the investor and venture capitalist. Companies are looking
this type of mind and help them to set up their business in the market to change the country look.
They create the product on the changing technology based product and services. They generate

their capital through IPO or by acquisition by the investors with are risk capital like angle
investor,
Large company entrepreneurship: These corporations always want to develop their
product and service according to the trend in the market to satisfy the customer need and to
sustain and long run of the business in the market. They fulfil the demand which are change
eventually along with the increasing competition in the market and are forced to launch the new
product and services in the market which disrupt the innovation and creativity of the product and
make the innovation difficult. Their employment is more than 500 and their profits are
substantial and the capital provider for these businesses are from government in the form of
subsidiaries, tax credits (Morris, and et.al., 2018).
Social entrepreneurship: This type of entrepreneurs help the society to solve the difficult
problem facing by the society and deliver the goods and services to the society. They want create
the world better for the people and work as a non-profit entrepreneurs whose main motive is to
change the society prospective. They work for a particular thing which is faced by the society
and need to be changed. Their main motive was to serve the society and not the profit for the
product and services. They work on to solve the health issue of women and children to develop
the countries. They raise the funds from various source and donations are also made by some
famous Persons which help to make an initiate on the various issue faced by the society.
Factors Small Business Scalable
Business
Large
Corporations
Social
Entrepreneurshi
p
Target Goal This type of business
may not have fixed
goal and objective
and the profits of the
business is quit low
compare to others.
This business
give the
innovative
product and
services to the
market constantly
and aim to
achieve the high
This main factor
to sustain in the
market by
deploring
innovative
products and
service as a
market strategies.
These
entrepreneurs
main aim is to
serve the society
to solve the social
problems and
make the world
better.

profits in return.
Risks The risk is low but
the competition can
be higher in the
market (Neumeyer,
and et.al.,2019).
Here the risk is
high where the
capital is raised
from the market
in the form of
investment and
expect to get the
high return from
the business.
The risk is
medium as the
company is
already
established in the
market and
focuses on the
sales volume in
the financial year.
The risk is not
much this
business are also
support by well-
known person and
by government
also to serve the
society.
Size of
employment
Here not many
employees work as
the owner personally
look into the
activities but there
can be few
employees in the
business.
Scalable business
employment is
depended on the
size and structure
of the business
involve in the
market (Silver,
Berggren, Fili,
2016).
More than 500
employees are
working for the
organization to
make the product
innovative.
Here mainly
voluntarily
working can be
done by anyone
so no fixed
employees are
there.
Structure No proper structure
is made by the
owner and
sometimes it is run
by the sole
proprietorships.
Mostly it has
limited
partnership based
structure or
corporations.
Large
organizations
structure can be
complex and are
in the form of
private limited or
public limited.
It depends on the
size of the
organization.

LO2
P3 : Impact of small businesses on the economy with statistical data
The contribution of small business in UK is vital as they are the backbone of UK's economy.
They are creating jobs, establishing new market, up grading the old market etc. The turnover and
profit they earn from the business bring new form to the economy. Sole traders, small and
medium businesses bring 59% of private sector in UK. SMEs have created 60% of jobs in UK
and 16.3 million people got jobs. In London is having 1544 businesses over 10000 residents and
it has become the fastest growing sector of UK. This has helped the UK to achieve 31% growth
from the year 2010. SME employed 60% of the peoples so hast no one can blame the SME that
they don't provide job to others. Even micro companies who are having employees of 1-9 get
earned double profit in a year. The medium size business who are having 50 to 250 employees
make profit yearly profit of 249000 euros in 2019. it shows the efficiency of the small and
medium businesses that without having huge work force they are able to achieve such profit.
Some survey shows that there are 4500 SMEs who are having turnover of 25 million euros.
Micro business of UK has generated 21% oh the total turnover of UK's economy of review
which plays a vital role in the development of UK. At the starting of the year the particular team
of small businesses, medium business and start ups found that approx 65% of the population of
UK wants to start their own business and start ups. The aim of 43.7% people wants to earn high
profit as they are not satisfied with the salary and job and 42.3 % wants to run a business as their
dream is to be an owner instead of becoming a worker or employee. Every year micro businesses
contributes around 20.5% to the economy of UK. Out of 5 micro businesses at least 1 of them
generates a turnover of of 50000 euros. Most of the micro and medium businesses have turnover
above 1 million euros, so the approx turnover of micro businesses of UK is around 300000 euros.
In 2018 start ups and small businesses generated the turnover and profit of 277.3 billion euros
and has produced 27% of all over turnover of London. The small start ups who got succeed in 3
to 5 years had given job to 282000 people in the last 5 years. Small scale businesses have
become the fastest growing business of London. As per the survey of London assembly it got to
know that 59% people are having issues to fascinate the customer and facing threat to enter into
new market as they don't want to bear huge loss and don't want to lose their capital as well. 58%
of businessmen feels that UK is very expensive as compared to the other countries so they want
to start their own business but due high – price and cost they don't want to come in the line of

business and they feel safe in doing job as they get regular income on monthly basis (Zahra,
2020).
P4 : Importance of small businesses and start- ups in the growth of social economy
Small business and start-ups have been a backbone of the country. Small businesses are fulfilling
the daily needs and demands of the customer. Small businesses usually targets the engaged
streets and localities, small markets so the consumer can easily visit the shops for their small and
daily needed amenities like- milk, groceries and vegetables. The biggest advantage of these small
businesses and shops it's that it get opened till late night. Examples of small businesses are-
grocery shops, small hospitals, medical stores, parlour & salons, food vanes etc. small business
and start-ups are useful for the big companies and businesses because these big companies stay
depend on the sales of their goods. The start-ups are creating job for skilled and unskilled
employees, which is giving more employment, employment refers the higher and better
economy. If a start up get famous and earned the name among the people it also gives a new
name to the city in which they have started working. These start up uplift the economy with
introducing the new technology and exploring new industries. Small businesses works on
customer oriented approach even they stay close to the customer even customer remain loyal to
these small business and start ups. If more and more new small business and start up come into
market it will generate income for the government. Small business and start up can touch the
peak of success and earn higher profit. Small business are very flexible in nature anyone can start
it anywhere and mostly it gets operated in localities. On the other hand start up brings new
market and modify the old market. Start-up plays the vital role in the improvement of living of
standards of the people along with this it boosts the economy as well (Shabbir, 2019).
LO3
P5 : Skills and characteristics of successful entrepreneur and difference between manager and
entrepreneur
Entrepreneur means starting and creating own business. Entrepreneurship is the potential, ability
and capacity to run and mange the business even in unfavourable situations and make margin
profit to make business successful.
Creativity
To start own business it is very important to have some unique idea. Entrepreneur always need to
search in the market that what kind of product is being asked by the customer, and have to see

the opportunity. For starting own business entrepreneur have to get some inspiration by meeting
and dealing with people, reading some business articles and magazines and should collect some
fabulous ideas and chase them (Essel, 2019).
Self-motivation
For being a successful entrepreneur, self motivation is compulsory. Successful entrepreneur
believes in themselves, their knowledge and skills. They know what different they have to do in
each and every day. They don't get afraid to take risk in life, they are the narrators of their own
book. Self- motivated person develop their own goal and try to achieve them.
Knowledge of product and services
Successful entrepreneur knows what kind of product and services ned to offer to public they
know what value it will provide to the customer. Entrepreneur always keep an eye on their
customers to fulfil their needs. Good entrepreneur always get the market trends and to expand the
feature of their product to make it different form competitors for that they communicate with the
customer take their views and feedbacks on the product .
Build strong network
To establish name in the market and to rule over the market, it is important to communicate and
connect with people and find out the upcoming opportunity. Interacting with new people can
give some fact and knowledge which the business needed. For the improved networking skill it is
mist to set healthy relationship just not with the customers as well as the other seller in the
market. if people the entrepreneur definitely sooner or later they will buy something from the
business.
Vision
Successful entrepreneurs must have their own vision. They always see the big opportunities and
try to find out the way to achieve them. Vision describes the values, culture and objectives of the
organisation. Vision makes the entrepreneur motivated and helps others to know the that what
the particular business want to achieve in the future (Guzman, 2020).
Taking risk
Entrepreneur should always remain ready to take risk because high risk gives high profit. They
learn from failures and try to eliminate them from the business. Entrepreneur always think
beyond their reach and take decision to earn reward they don't see the things from the perspective
of risk. If they feel that particular decision can make or lose their business they take the risk.

Differentiation between manager and entrepreneur
Entrepreneur Manager
Entrepreneur works for their
own business and collect all the
profit and bear the risk alone.
Manager don't take the entire profit
and also don't bear the whole risk.
Manger works for salary.
The major goal of entrepreneur
is to expand their business.
Manager focuses on planning,
controlling and smooth functioning of
the business.
It is known as an owner. They knew as an employee.
They get the motivation from
results, outcomes and
achievements.
They get the motivation from its role
and power of the post.
Entrepreneur may be friendly,
informal and adopt the easy-
going approach.
Manger has to remain formal and
orthodox.
They always ready to take risk
for the development of the
business.
Manger hesitates to take risk and try
to avoid the risk bearing situations.
They don't need high
qualification degree to run a
business just unique idea makes
their business successful.
They need, managerial degree to get a
good position.
P6 : Motivation and mind set of entrepreneur
For being a successful entrepreneur it is very important to stay motivated and devoted towards
their goal. Entrepreneur has to face failure in their journey to get success. There are examples of
such great entrepreneurs who gone through to failures in their life but never lose their passion to
pursue a successful life (Catherine, 2019).
Peter Jones

Peter David Jones is a British entrepreneur, businessman and a big tycoon in UK along with a
big reality television personality. Peter was having interest in television, mobile, retail and
property. Peter invested a large amount in the BBC and Dragons Den as per his interest. When
peter was 16 years old to made personal computers under his own brand. But peter got failed in
this business when he was twenty years old and faced huge loss and had to sold his house and
car. After failing badly in this business peter never leave the dream to become a famous
businessman he opened a cocktail bar and small business of computer but again business get a
worse situation and peter has to wind up the cocktail bar. At the age of 21 Peter was not having,
money to fulfil the basic needs so decided to do a job. But after few years Peter left the job and
again start a business of Phones where he used to sell wireless mobiles and communication
accessories. From this business on the first year Peter earns a profit of $21 million and on the
second year profit get increased up to $70 million and Peter becomes the fastest growing
entrepreneur and businessman in UK with having profit of more than $220 (Lyons, 2019).
Laurence Graff
Laurence Graff is an originator of Graff diamonds. Laurence is billionaire and famous tycoon of
UK. Laurence had left the school when he was 15 years old to chase the dream. Graff made
partnership with Schindler and started working as a repair. He repairs rings and manufactures
small jewellery. But Graff decided to leave the job and start own business. In 1960 founded the
Graff diamonds. Both the stories reveals the mind set and personality of entrepreneur. Peter hits
with a huge loss from its computer business and along with the bar that was a tough condition for
Perter, not having money and house but he overcome the situations only because of self-
motivation, passion and believing in himself. Even in second example Graff quit the job and
opened its own store to chase the dream and now Laurence made a place in the top 5 richest
jewellers in the world. Graff believes in hard- work, passion, honesty and correctness. Both the
entrepreneurs were having ability to take risk, having unique and innovative ideas which shows
their personality and also give inspiration to others. Both the entrepreneurs were well acquainted
with their products. Both were goal oriented and having goal and creative mindset and became
examples for others (Dzwigol, 2019).

LO4
P7 : Background and experience which hinder and foster the entrepreneurship
From the example of Peter Jones and Laurence Graff anyone, the story of both the entrepreneurs
were gone through to tough situations. But their story shows that people should keep their
passion alive and chase the dream and give full efforts to attain the goal. Entrepreneurs never get
affected by challenges (Lyons, 2019) and fears. To run after success it is must face failure also,
because from failures people get to know their drawbacks at which step they are lagging behind
from others. Both the entrepreneurs were having vision
because vision shows the future goals of business. From the given example it shows that the taste
of victory becomes sweeter after testing the bitterness of failure. The struggle and success story
of both the entrepreneurs show that the future depends on the handwork and devotion which
someone is putting today, because every business go through to the ups and downs, it is
important to stay calm, passionate and motivated because the business only gets the victory when
the businessman effectively handle the hurdles. Successful entrepreneur always keep an eye on
the market, trends and news which is related to them, so it motivates others to for getting deep
knowledge. People should follow the market news some good magazines like – fortune and
Forbes to know what other people are doing how they can compete with unique idea. Both
entrepreneurs knew that what makes them to enter in the business after quitting the job and that
thing bounds them to achieve success. From the story of both the entrepreneurs people get
motivation that they do not need to spend their whole time for business only they should spend
some time with their family and friends also and can share some relevant problem, and get their
opinion and views on the same it will help the businessman to know where they are going and
what mistakes they should not repeat for the growth of their business (Zahra, 2020).
CONCLUSION
From analysing this report it is concluded that it describes the concept of entrepreneur and
entrepreneurship. It reveals the major qualities, skills and characteristics of an entrepreneur. This
report reveals the small, scalable, and large businesses as well as social entrepreneurship. It also
states about the different type of entrepreneurial ventures. This report shows the difference
among small, scalable, large and social entrepreneurship along with is states the characteristics
of a successful entrepreneur and difference between manger and entrepreneur. This report shows
the example of two very famous entrepreneurs of UK and their journey from struggle to success

and how their story motivates others to chase their dreams. This report also explains the
experience and backgrounds of the two entrepreneur who motivates others. This report brings the
statistical data of the contribution of small and medium businesses in the economy of UK.