Report on Entrepreneurship & Small Business Management in the UK

This report provides an overview of entrepreneurship and small business management, discussing various types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It highlights the similarities and differences between these ventures, statistically elaborating on the impact of micro and small businesses on the UK economy. The importance of business start-ups in the growth of the social economy is explained, along with the determination of essential skills and traits that differentiate entrepreneurs from managers. The report also touches upon how personal background and experience can influence entrepreneurship, providing a comprehensive analysis of the subject.

Entrepreneurship & Small
Business Management

TABLE OF CONTENT
TABLE OF CONTENT...................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Different types of entrepreneurial ventures and its relation with typology of entrepreneurship.1
Similarities and differences between the entrepreneurial ventures.............................................2
Interpretation of data for explaining the impact of micro and small business on the economy. .4
Explanation of the importance of business start-ups in the growth of social economy..............5
Determination of skills and traits of entrepreneurs and their differences from the managers.....6
Entrepreneurial personality reflecting entrepreneurial mindset..................................................8
Explanation of the ways personal background and experience can hinder or foster
entrepreneurship with the help of examples..............................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship said to be the activity of setting up the business takes for financial risks
for the desire of profit. Small business is a business which is generally privately-owned
corporation, partnership or sole proprietorship which has very less employees and smaller annual
revenue than that of a company. The business management is the focus on the organization,
planning and analysing of the business activities which are essential for efficiency of the
business. In this project there are various types of entrepreneurial ventures which are related to
the typology of entrepreneurship which will be discussed. This project will explain similarities
and difference between entrepreneurial ventures. This project will statistically elaborate how
small and micro businesses impact on the economy. In this project the determination of the
characteristic’s traits and due top which the s
MAIN BODY
Different types of entrepreneurial ventures and its relation with typology of entrepreneurship
The entrepreneurial ventures are that type of organization which believes in innovation,
opportunism and is passionate towards producing economic or social value. These ventures are
generally separated into two different parts which are firstly both medium and small business.
Business and the second is big business. The relation of entrepreneurial ventures with the
typology of entrepreneurship is very notable. Typology of entrepreneurship shows that it is
supported on the human behaviour which considered the terms of values and then develop into
different forms of methodologies and various sample (Autio and et.al., 2018). The entreprenuer
has many types of duty and for which they have different sort of skills, traits and knowledge
which can help in forecasting the existing as well as the upcoming needs and provide the top-
quality ideas to the market. These people turn out to be flourishing in picking risks and also be
challenging to the start-ups for gaining the rewards and profit of growth opportunities and fame.
This is essential for the business for the development of its brand image in the given time frame.
Some different types of entrepreneurial ventures are,
Small scale entrepreneurship:
It is a type of entrepreneurship which are the most of the businesses in an economy, it
consists of all the small business such as the grocery stores, travel agents, E-commerce, service
providers and other small business. Such businesses have no few or no employees and most of
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them are family owned and the members of the family all together work for its success. In UK
there are many entrepreneurs which own small businesses.
Scalar entrepreneurship:
One of the greatest vision of having this kind of entrepreneurship was to bring some
change which has been visualized by the entrepreneur. They create relations with some direct
investments from different indirect financial investors and project capitalist. Such business has
public support as they are generally meant for the benefit of the others. These businesses are
developed for generating profit however their focus is on reaching their goals or vision (Shankar
and Shepherd, 2019). In these businesses the employees that are hired as based on the
requirements towards the change and their focus is still on the scale because it needs higher
venture capital for expanding the business operations.
Social entrepreneurship:
This is that kind of venture in which the individuals give more importance towards the
production of the products, services and business operations which helps the business in solving
the social difficulties and their needs. This is the type of the entrepreneurship which relates most
with the typology as they are non-profit organization as it serves for the needs of the public.
Similarities and differences between the entrepreneurial ventures
Similarities and differences between the different types of entrepreneurial ventures are,
Factors Small business
entrepreneurship
Scalable start-up
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Goals and
objective
They are
organization
which generally
do not have a
proper structure or
goal (Brush and
et.al., 2018).
Thus, they lack
objectives and
work for
achieving lesser
These businesses
have the aim of
providing
innovative
products constantly
and achieve high
profitability for the
investors which
have invested in
their ventures.
The large
company
entrepreneurship
has the aims of
sustaining the
market with the
development of
new products and
service with
marketing
strategies.
The aim of this
business venture is
to provide the
product and
services to meet
the needs of the
society and make
the world a better
place.
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profit and growth.
Risks In this business
venture the risk
might be lower
but the
competition is
very high with
similar sized
organization.
The risks are very
high in a start-up
due to which the
amount of financial
investments and
pressure toward the
return high amount
to the investors by
achieving high
volume of sales.
The risk here are
medium because
the large business
often manages to
make the sales of
high volume due
to their brand
value (Tata and
et.al., 2017).
The risk for social
entrepreneurship is
also not as high as
those businesses
and supposed to be
often get support
from the
government for
their public vision.
Employees The number of
employees for
such business is
not more than 50.
The number of
employees depends
on the structure
and size of the
start-up.
In this business
employees can be
more than 1000.
The risk of the
business depends
often size of the
business for this
organization as
well.
Structure There is no proper
organizational
structure for this
venture and is
often run by the
sole proprietors or
partners.
These are mainly
corporation of
limited
partnerships.
The
organizational
structure is mostly
very complex for
the large
organization as it
is the national
limited or private
limited
organization.
These organization
are mainly based
on the trustee.
In the public sector the organizations and known to be controlled by the government
either directly or indirectly. The investments which are made by the government invests higher
amount towards those organizations and different private organizations provide strategic help to
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those. These types of organization have been able to establish in different sectors and aims for
providing the quality products or services to the customers. In the corporate sectors these
organization can be owned by either an individual or the public. They help the organization in
the development of marketing strategies for providing quality product or services for enhancing
the profitability and durability of the company.
The vision, mission and aims of the different entrepreneurial ventures are unlike which
effect the scope of the business. When the organization is able to develop the products, which
can grow products which can complete the demands of the customers they are able to develop
sustainability for the longer time with the generation of profit. The focus of the development in
with acquiring investments and program the development of certain products and services in
agreement with the ongoing trends and demand.
Interpretation of data for explaining the impact of micro and small business on the economy
In most of the industry both the micro and small business have captured the highest part and
contribute highly in the economy of the country. The number of micro and small business have
increased a lot over the time and have generated the most revenue by supplying different
products and services for the customers.
Source: Small Business Owner Statistics, Infographic. 2019
In UK the total amount of small business organizations are very high and in various industry
there are more than over 4.5 million SME’s which throughout the UK is most than 99% of all the
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businesses in the country. The revenue generated from the businesses have high contribution to
the total GDP of the UK. In all the business the 96% are considered to be as the micro business
which have employees only 0-9 employees. These employees are the 33% of all the employment
of UK and is the 22% of the total turnover (Aguilera, Kim and Lee, 2018).
Source: Labbo, 2020
As per the graph above it can be explained that the number of minor and micro industries
is much advanced than average and big businesses in the UK. These industries are able to earn
37% of revenue and deliver 48% of the employability in UK and this shows their influence to the
economy (Masood and Javaria, 2020).
Some of the small and micro business can also be categorised as the innovator, exporter and
non-exporter. Those businesses generate revenue with or without innovation and many of the
those exported products and get the economy foreign currencies which is a large contribution to
the UK economy considering the size of the business organizations.
Explanation of the importance of business start-ups in the growth of social economy
For maintaining the growth of the social economy, the start-up businesses have to get higher
influence in different countries. This will help the start-up businesses for often coming with
innovative ideas of the products and services which can meet certain requirements of the people
comparatively than the other organizations. Start-ups are known to capture the market very fast
sometimes as they are able to manager the generation of higher revenue in a very short duration
(Karimov and Konings, 2020). This is the process of the business which is needed for providing
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high quantity of commercial tax which can help the business in their and their countries growth.
For running the business, the start-ups have to hire people which is able to unemployment in the
country. There is start-up which are unable to provide high salaries to employee due to the lack
of capital and due to which they have to hire less skilled employees with lower pay however it
still manages to decrease the unemployment problem. Start-ups are new ideas which in some
ways are made for creating a change in the world. Thus, these organization are able to bring
innovation and most of the industries which are very prominent at the present all started with a
small start-up. Thus, start-up is very important for the economy as they can give birth new
industries.
Most of the start-ups are related with different kinds of CSR actions as well as they look
towards the development of their brand image. They are related to social, environment and
economic problem for enhancing their public image. In this process these businesses are able to
provide the education to the people which in rural areas of the people with poor financial
background. These people utilize these educations for their future for getting employed and thus
they also contribute to the economic growth. The high number of start-up businesses play an
important role in some of the different industries in that of the UK which can have great part in
the GDP of a country.
The total number of both the small and medium business is very high in UK in comparison
to that of the large organization. These businesses have captured the larger parts of most of the
industries and have highly contributed in the UK economy (Ball, 2019). Even though the revenue
of the large organizations is high but small and medium business have high numbers. Large
business is established in other countries so they help the economy by earning the foreign
currency.
Determination of skills and traits of entrepreneurs and their differences from the managers
There are diverse characteristics personalities and skills which are vital for the
businesspersons for the establishment of a positive business and for enhancing the development.
In order to establish the businesses, the unlike procedure is required which provide the need to be
considered by an entrepreneur and also to those needs to be completed single handily due to the
lack of the capital (Pangriya, 2019). The personal characteristics of the entrepreneurs are as
follows,
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 They have the ability to generate a new idea which is very important for the
establishment of a new business.
 The entrepreneurs have the trait of taking risks, without risk it is impossible to achieve
success in business.
 Entrepreneur have the skills of developing a vision of what they want from their goals in
the future from their business activities.
 Entrepreneurs have the motivation which is required for succeeding in the business and
as a result they can achieve goals with the help of motivating others in their organization.
 The management skills of the entrepreneur are very good and they can easily manage the
finances and human resources of the business.
Apart from these characteristics which make the entrepreneurs successful they also have
some personal skills which are also useful for the success of their business. Following are the
personal skills of an entrepreneur,
 Communication skill is something which is important for making interactions with
different range of people such as suppliers, distribution, clients and employees.
 The leadership skills are also one of the most needed and important path to the employees
for achieving the goals (Dinc and Hadzic, 2018).
 The negotiation skills help the entrepreneurs to make a deal which is profitable for the
business.
The different between the entrepreneur and manager are,
Entrepreneurs Managers
The entrepreneurs are said to be visionary and
are able to develop a vision which help the
entrepreneurs in bearing the financial risks.
The managers on the other hand work for their
salary and thus do not have anything on stake
apart from their job.
The focus of the entrepreneurs is on starting
the expansion of the business and development
of new ideas.
Their focus is on daily and smooth functioning
of the business.
The entrepreneurs are seen to get motivated
with the help of its achievement which help
them to move forward.
The motivation for the manager is the
remuneration of salary which he draws from
the company.
The rewards for the entrepreneurs is the profit Remuneration is the salary which the business
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which the organization earns from the
enterprise.
is able to draw from the company and is able to
be successful in it.
Entrepreneur can have an informal or casual
behaviour in the organization.
As it is the part of the managers duty so they
cannot be informal and have be formal while
face any sort of problem.
Entrepreneurial personality reflecting entrepreneurial mindset
An Individuals entrepreneurial personality is essential not only in setting up of a business
but also helps him to deal with different problems and risks associated with it. The characteristics
involved in the entrepreneurial personality enables an individual to create new ideas around the
business and implement them to generate revenue. The ideas must cover the demands of the
customers and need to constantly develop those ideas by an entrepreneur is essential for
sustainability. Ability to take risks and use of available resources carefully for the development
of the business is needed in an entrepreneur. An entrepreneur not only needs to set goal and
vision for the business but also needs to develop strategies to achieve it. Identifying the
opportunities to make sales and greater revenue is also very essential in an entrepreneur and
therefore they need to be self-motivated to run and manage the business by handling risks and
having the mindset to continuously achieve the desired goal (Slettli, 2019).
The characteristics of an businessperson have high similarities with the characteristics of a
leader. Just like a leader the entrepreneur needs to deal with different people so such as the
employees, investors, suppliers, distributors and more can single-handedly be managed. Along
with this they are also responsible for planning allocating resources towards different path to the
employees for fulfilling organizational objectives. Entrepreneur with the help of strong
management skill is able achieve the organization and contract with slightly kind of conflicts
which take place within the organization. As an instance as given in the case study, Elizabeth is
driven and obsessive for running their business and have a belief in one another. This helps the
individual to work hard and plan effectively and also be able to succeed the organization for
handling with the diverse difficulties to for the growth of their business.
Elizabeth who set up the EG Solutions that has progressed very fast was because of the
certain skills which Elizabeth had that contributed towards the success of organization. She was
very passionate and motivated for running the business and had ran the business as a hobby so
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that she can work effectively without getting bored. One of the reasons behind that was the self-
belief that she had which helped her to maintain the discipline to complete her tasks. Working
hard helped her in conducting the work single handed and also be able to provide the finances to
the business which it required for being effective in different tasks (Korte, 2018). Tom Merceris
the owner of Muesli brand who has provided support for the undergraduates and provided
consultancy facilities to the organization for getting accomplished employees. His strength was
his communicational skills which got him the clients and also the risk-taking ability for the
setting up a business. With the help of his innovative ideas he can assist the students in
discovering a better job along with providing efficient employees for the business. Due to his
high motivation, risk taking ability he was able to plan the business and manage it with the skills.
An individual can set up a successful business with the help of personal background and
experience. EG Solutions, a business organization set up by a chemist named Elizabeth portrays
the same. In the entire process of setting up of a successful business organisation, she plans the
business, recruit and nourishes the employees, makes plans for promotion and executes it
through risks. She is energetic and practises her office for chemistry lab such that she never feels
tired and work effectively with efficiency. The self-motivation worked very well for her as she
participated in many programs to gain knowledge and associate with her like-minded and use it
for own business progress. She possesses amazing entrepreneurial characteristics as she passage
future preparation, focuses heavily on financial administration and works difficult to run the
trading operations which benefits the organization and results in its growth. One of his kind,
Tom Merceris, the owner of Muesli brand which delivers consultancy facilities to the business
and help supports the students around to get a work. He is driven to provide these services after
being failed to find a job. As he holds a good experience which can help the students and other
clients at the same time to grow, he decided to invest the fullest of himself in setting up his
organization and help other students and small size business organization at the same time. His
ability to take risks and tackle with hurdles gave him great success in a very short time.
Entrepreneurial skills like effective communication, dealing with clients took him further and
with some risks in the path, which is necessary for every business, he took his organization to
great success.
An individual’s background and experience can affect the entrepreneurship in both positive
and negative ways. It can be clearly observed that both Elizabeth and Tom Merceris had an
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entrepreneurial mindset, adequate experience and motivation to not only set up the organization
but also run it with effective entrepreneurial personality. As much as they worked hard for their
organizational success, the self-confidence and effective support must also be taken into credit.
Because of effective knowledge of the entrepreneurial objective, they could find their like-
minded associates and form an effective team to work towards the same goal and achieve it with
precision without being disturbed or misguided. There are many business organizations who
were not able to, or cannot survive in the long term because they not only lack in motivation but
also an effective team work. Past experiences of entrepreneurial failure can cause inability in the
process of risk-taking which results in missing out of opportunities and ultimately causes
negativity. It is important for an individual with a mindset of setting up of an organization or has
set up an organization to master in the field of financial management as it plays a significant role
int the success or failure of the organization.
Explanation of private background and their experience which has the potential of hindering or
fostering entrepreneurship
The effects of individual background and knowledge can be very huge as it can hinder or
foster the business. The educational and financial background, motivation, family and friends
and other comprises the personal background and as such if in the process, one gets correct
support from their family and others, it can motivate in setting up of a business. The support
from the family and friends can help enhance the risk-taking ability and motivate an individual
which will foster the entrepreneurship and without the same, individuals may become or become
demotivated in entrepreneurship. Same goes with the personal experience, if the experience is
good then one can be motivated to continue their business for a longer time foster
entrepreneurship (Yadav and Bansal, 2020). However, if the experience is not good, it results in
low self-confidence and lack in motivation in setting up a business.
CONCLUSION
With the help of this project it can be concluded that entrepreneurial management requires
motivation, risk-taking ability and management skills which helps a business to succeed in its
operations. In this project the start-up business and its different types such as the small micro,
medium and large businesses are been discussed. This project has shown the likliness and
deviation between the entrepreneurial ventures. This project was able to assess and interpret the
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data and statistics related to the micro and small business on how they impact the economy. This
project has also explained how the small business and business start-ups been able to affect the
growth of the economy. In this project the determination of the characteristics, traits and skills of
successful entrepreneurs and their differences with the managers have been shown. This project
also showed how the entrepreneurial character reflect on the entrepreneurial inspiration and
attitude. This project has been able to examine the use of relevant examples for understanding eh
experience which can hinder or foster the entrepreneurship.
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REFERENCES
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Autio, E., and et.al., 2018. Digital affordances, spatial affordances, and the genesis of
entrepreneurial ecosystems. Strategic Entrepreneurship Journal. 12(1). pp.72-95.
Ball, S.J., 2019. Serial entrepreneurs, angel investors, and capex light edu-business start-ups in
India: Philanthropy, impact investing, and systemic educational change. In Researching the
global education industry (pp. 23-46). Palgrave Macmillan, Cham.
Brush, C., and et.al., 2018. The gender gap in venture capital-progress, problems, and
perspectives. Venture Capital. 20(2). pp.115-136.
Dinc, M.S. and Hadzic, M., 2018. The mediating impact of personality traits on entrepreneurial
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Small Business. 33(3). pp.400-416.
Karimov, S. and Konings, J., 2020. How lockdown causes a missing generation of start-ups and
jobs. VIVES briefing. 2020(05). pp.1-7.
Korte, R., 2018. Identifying as an Entrepreneur: A Social Identity Perspective of the
Entrepreneurial Mindset. Advances in Engineering Education. 7(1). p.n1.
Labbo, M.B., 2020. The Impact of Micro Finance institutions on Economic Growth in Nigeria.
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Masood, O. and Javaria, K., 2020. Impact of micro-credit financing on women's empowerment
and poverty eradication: an empirical evidence from Pakistan. International Journal of
Entrepreneurship and Small Business. 39(4). pp.548-563.
Pangriya, R., 2019. Hidden aspects of social entrepreneurs’ life: a content analysis. Journal of
Global Entrepreneurship Research. 9(1). pp.1-19.
Shankar, R.K. and Shepherd, D.A., 2019. Accelerating strategic fit or venture emergence:
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Slettli, V.K., 2019. Developing entrepreneurial mindset for transformational entrepreneurship:
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Tata, A., and et.al., 2017. The psycholinguistics of entrepreneurship. Journal of Business
Venturing Insights. 7. pp.38-44.
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Small Business Owner Statistics, Infographic. 2019. [Online]. Available Through:<
https://www.ibbds.com/tag/smallbusiness/ >.
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