Entrepreneurship & Small Business Management: Impact on UK Economy

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on their impact on the UK economy. It delves into various types of entrepreneurial ventures, including small businesses, scalable startups, large company entrepreneurship, and social entrepreneurship, highlighting their characteristics and contributions. The report also examines the differences and similarities between lifestyle and social entrepreneurship, emphasizing their roles and objectives. Furthermore, it assesses the impact of micro and small businesses on the UK economy, particularly in the context of Brexit, and discusses the importance of small businesses and startups in driving social economic growth. The report also features characteristics of successful entrepreneurs like Elizabeth Gooch and Tom Mercer. Desklib offers a platform to explore similar solved assignments and study resources.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT.............................1
INTRODUCTION................................................................................................................5
P1 types of entrepreneurial ventures and their relation with their typology..........................6
P2 Differences and similarities among the lifestyle entrepreneurship and social
entrepreneurship.....................................................................................................................6
P3 Impact of micro and small business impact on the UK economy.....................................7
P4 Importance of small business and business start-up to the growth of the social economy:
................................................................................................................................................8
TASK 3....................................................................................................................................10
P5 Characteristic of Elizabeth Gooch and Tom mercer......................................................10
P6 Entrepreneurial personality and mind-set......................................................................11
TASK 4....................................................................................................................................11
P7 Entrepreneur background and experience......................................................................11
CONCLUSION.......................................................................................................................12
REFERENCE.........................................................................................................................12

INTRODUCTION
Entrepreneurship and managing business goes hand in hand .when he entrepreneur
manages his business operations effectively and efficiently he gets success. This report
revolves around the understanding of the cognitive knowledge of the skills needed in the field
of entrepreneurship and managing the small business. It involves the deep understanding of
various attributes that the entrepreneur that are successful and their behaviours, types, and
attitudes, and how these all helped in making the business successful and contributing to the
national economy(Ross and Lashley2010). This report gives an insight to the influence of
national culture and the economy on entrepreneurship that includes the exploring personal
traits of entrepreneurial and the impact that they have on situational factors like background,
education, and other life experiences. Further it is also discussed that about the role of small
firms on the economy and what are the risks and rewards of starting a new venture for which
investigation is needed and it reflects the own enterprising and entrepreneurial characteristics.
P1 types of entrepreneurial ventures and their relation with their
typology.
There are four types of entrepreneurial ventures and these are :
Small business entrepreneurship: these are the type of entrepreneurs who run a home based
business and this includes carpenters, part time worker, consultant, grocery stores, travel
agent, plumber, hairdresser, electricians tec. These are small scale business and usually
anybody can run. They rely on local markets and usually prefer local persons for job . their
hard work brings them profitability. They work hard to feed their family and its not
something that could takeover the industry(Storey and Greene 2010)
 They didn’t get funding from big capital ventures. They are usually funded by the
family members and friends.
 Scalable start up entrepreneurship: they are new start-ups unlike small scale business
they are found by the new investors . they hire the bright and the best investors. They
work for searching new scalable and repeated model of business. Then after this they
want to focus on and give attention on expansion and venture capitalist. They are
involves in small percentage entrepreneurship. Risk capital is attracted towards it.
 Large company entrepreneurship: these are limited companies . their business is going
through offering new products, innovative ideas and working for gaining core
competence. They believe in changing the taste of customer by launching new
product, technology, contestant, legislative etc.it enters through disruptive innovation,
it means when the small companies enters the market and disrupt the business of big
already existing companies. Here new companies enter the market and captures the
whole market.
 Social entrepreneurship: these are more like non profit organisations and they work
for social causes and provide social services to the society. They solve the problems
of society. Their motive is not to earn profit but to make society a better place and
wants to work for their betterment. They does not float their shares in the market .

they usually works for education, environmental causes and for safety and health
purposes.
P2 Differences and similarities among the lifestyle entrepreneurship and social
entrepreneurship.
Entrepreneurial ventures can be determined by the nature of business they have and
by their size and type of business. These entrepreneurs have certain similarities and
difference on the basis of their roles and objectives.
Role: they work on different levels in different sectors on the basis of large, small,
and scalable entrepreneurial ventures. So that’s create a differentiation amongst these. Small
scale entrepreneurial ventures plays a role in providing all the necessary products and
services for the society on the ground level and have limited profits(Stokes ,Wilson and Wilson
2010). Whereas on the other side scalable entrepreneurial ventures works on higher level and
works for more profits and reduce the efficiency of work. These large companies do the
research part to analyse the needs and demands of the customers but they somehow lacks in
the research part in context of efficiency and reliability of the actual needs of customers. they
differ on the basis of characteristics.
Objectives: almost all the independent private enterprises such as small, lifestyle, and
established business organisations works for the objective of achieving profit maximisation,
by reducing the cost of production and serve products and services to the customers on high
margins to earn higher profits. They as their objective wanted to have greater market shares
and high visibility in the market. .they look for the opportunities in the market and invest in
the most appropriate one for the purpose of getting bigger share in the market. Most of the
small scale firms looks for the opportunity for their growth and and for share in the market
also with the motive of earning higher profits and as they are new to the industry they have to
go with lots of formalities that occur when they are new in the market(Storey 2016). They
have to go with the entry level difficulties. they have to fought for their share in the market
and gets the rivalry of already existing firms.
P3 Impact of micro and small business impact on the UK economy
Small and micro business has contributed growth to the U.K economy .Most of small
business are Most of the people in U.K re earning their livelihoods from the small business
setups and after brixit there was no better time for the U.K people to start their business
setups. The economic climate in U.K may be favourable one to start up the business the
actual needs of the small business is to sustain a healthy economy. The performance of the
U.K economy is the key to the assessment of the effects of the brixit on the UK economy.
( Harvard Carraher 2015) The UK wanted to leave the European Union and does not want to
follow the rules and regulations of the European Union. The impact on small business from
the gross domestic products is wider because they were the life cell of the U.K economy.

Falling the gross domestic product will have an impact on the small business in terms of the
overall activity of the organisations and the consumers who are buying the products and the
services.(Perils-Ortiz M 2015) The growth of the small business were achieving the height of
success. The small business were facing decline in the construction and the manufacturing
fields. Because the weaker section were boosting towards the growth and they were not
beneficial to the economy. Small businesses are important in the fields of operations as
compare to the large firms. Smaller firms may struggle for greater investment in terms of
money or bank loans. Falling in the GDP mean that the small businesses have to strive in
particular if they import the products from the overseas. This may benefit the exporters and
the manufacturing industry in the UK.
Small business is the backbone of the U.K economy and they are achieving success in the
growth and the development economy, opening new market segments and creating jobs and
thus they are contributing towards the growth of the economy. Small businesses have brought
innovation in the product and thus they have encouraged competition in the market place.
They brought fresh ideas and challenges to the economy. .Many small business are confident
they are improving the economy strongly across the British enterprises they have positive
economy outlook which brings growth to the economy. The road to recovery and the way to
success in life. Small business owners have said that UK is striving to growth and the impact
will be felt wider. It is here that the small business needs the support in their business to
grow.(J.W. and stewart..2014) It is essential that is smaller micro business have the essential
knowledge about the market to ensure the customer satisfaction. Improve the employee
employment programmes and to enable access to the new products and the services available
in the market. Standard or the management system can help the business to focus on the
products. So that the business runs and achieve growth according to the organisations. The
government help the small and medium and enterprises ( SMEs) by using tax breaks to

encourage employment and research and development programmes offer free advice for the
business setup and support the networking opportunities. Small business more effective and
thus the government taking actions and helping the small business to grow.
P4 Importance of small business and business start-up to the growth of the social economy:
Small business and business start-ups have contributed significantly to the growth of the
social economy in the way that they have brought growth and innovation to the community in
which there business has been established in the economy. Small business and business start-
ups have stimulated to the economic growth by providing the opportunities for employment
so that they can fulfil their basic needs and the needs of their family members.(J.C and
Carlands 2013) Small business and business start-up search for the people who have talents
about the generation of the new product or the innovation in the existing product line. Large
business set-ups also depends on the small business within the same locality because large
firms depends on the small business for the completion of the various types of the business
projects through outsourcing. The small business which are generating higher revenue means
that their business will pay higher tax rates, including the local taxes.
Small business has given contribution to the social economy by using sustainable resources
for the growth and the development of the economy. Small business and business start-ups
not always stay small they grew bid with the time and the place where the products have
capture the market. Large cooperation such as Nike and Ben started their business on a
small scale with small business start-ups that small business grew. They became the major
players in the market and the international market place because they satisfied the needs and
wants of the customers in terms of quality of their product manufactured. Microsoft is the
best example of how a small business contributed towards the growth of the economy.
(Pardons and T.J 2012) Small business that grew into large business setups often remains in
the same community in which their business was initially established and this way they

focuses on the social economic aspects of the economy. Small businesses are important to the
circular flow of the economic market. They buy resources from the resource market and thus
manufacturing of the products take place and they sell the products in the market. Small
business allows the economy to work. The main reason is that they allow the economy to
work with more effectively and efficiently so that there will be optimum utilization of the
resources in the economy. When there is competition in the economy the competition helps
them to increase their efficiency because every business wants to be superior to the another
one. No market in the economy can survive without business.(P and Haugh 2012) The most
important reason why the small business are important because they are a vehicle for the
exchange of the goods and services in the market place and especially in the complex modern
societies a person cannot rely on the family to survive. Small businesses have achieved
success in the way that they have earned profit and thus their contribution towards the social
economy.
TASK 3
P5 Characteristic of Elizabeth Gooch and Tom mercer
They was best in the financing field and they know that how to invest money on what
type of work or on a business (Harvard Burns, 2010)
They are also know very clearly that how to start and where to start and what things are to be
started that are to be good for start a business.
Elizabeth and Tom have the one thing same that is their forces on their aim to start
their own business and started their work facility for others. They have the quality to make
their dreams true by hard work. They are very strait to their work.
Traits and Skills of Elizabeth Gooch and Tom Mercer
Frist traits to start their business is that how they arrange funding or initial capital for
their business but for this traits they have the skill of presenting their ideas in real very well
(Harvard Storey, 2016). The another problem is to where from start their business because
in the other businesses the business owner have their personal manager to handle this type of

traits but in entrepreneurship the entrepreneur is the only owner and founder and manager for
their new started idea work.
The main thing to start their business is to firstly what they make a good product for
their customers that they use it for their consumption and useful for them. They make their
ideas possible for that and make the best products (Harvard Obeng, Robson and Haugh,
2014). In their journey they have faced many challenges and face them and solve them by
their skills.
They are different from Business Managers
In business managers they have the team of people for different field and for different
work but in Elizabeth and Tom’s work they have only the persons for start their work so they
have to be knowledge of their field work and they did their work very well on their own
position. In business, managers have people for all type of work but in entrepreneurship they
don’t have people for all their work.
P6 Entrepreneurial personality and mind-set
Tom mercer think about for a healthy breakfast and make it a product into the hand of
key consumers and started to setup it for their business. He always thoughts about his
business and looking always for setup a stall for his pop-up stall (Harvard Carraher, and
Paridon, 2015). After a stall is stated successfully he build up his MOM team up for its stalls.
On the successful of his one stall his started his another stalls for his business by take its
customers feedback he is motivated to open his stalls in many places and one by one he
started his 10 stalls successfully. After the success of their stall they are inspired for making
some healthy thing of their foods and make some successful experiment by some ingredients.
Now they have the positive feedback from their customers and continuously make them
order.
Elizabeth from its high school she is interested in computer programming as the result
of it she started her first business selling C++ compilers to Chinese universities. From here
she thoughts about her business and started use of her stipend in computer lab with Ph.D.
candidates and dean of the engineering school. After that she field her first patent on a
wearable drug-delivery. She use her tuition money as seed funding for a consumer healthcare
technology company. All these work of her present her entrepreneurial personality (Harvard
Sahut and Peris-Ortiz, 2014). Her goal was to make health information accessible to all
people at any time so that risk of disease could be detected early on for this she incorporated
the company as Theron’s and rented a basement of a college. For starting her company she
raised fund and the revenue by her company she used the revenue for her other investment.
TASK 4
P7 Entrepreneur background and experience
In comparison of Elizabeth by Donald Trump he is started her carrier very early and
make her dream. Trump began his real estate career at his father’s company, the business

focus on middle class rental housing in the local city outside of the main city. He renamed
the company it t0o the trump organization. For entrepreneur there is no need for educational
experience for it people only have the practical knowledge about their work and have to be
specialized for its work. Donald trump have the more knowledge in politics and making
strategies about the different parties on other hand Elizabeth have the knowledge in computer
programming and it better use for her customers and all the people. Elizabeth is going invest
her money on the special fields whereas Donald trump invest his money on the many fields
(Harvard, Carland, and Stewart, 2015). Trumps business policies are the great for the many
business firms and make a profitable strategies for the business on the other hand Elizabeth
make policies related with the finance because she have experience of financial investment
by doing work in past of her career.
By comparison of MOMA to the company of Alibaba and by comparison with their
owner Jack maa and Tom Mercer they have the different quality and have the skill to make
idea in real. Tom always think for his business and started business offline for the first on the
other hand Jack maa started his first business by making a website, after the success of a
website he again build an another website in different field. By this they both are stated their
business in different way and in today’s segment they are the top business man. Tom’s field
is completely different from the Jack and the work of they done in their business is
completely different from each other’s. Their policies of starting their business is also
different and Tom business feedback in past is start from the physical customers feedback
whereas he Jack’s feedback is take by the non- physically.
CONCLUSION
As per the above report the entrepreneurs are basically the combination of lots of various
factors that are belong in the atmosphere within him. They are the factors that belong within
him and outside in the atmosphere. The factors within him comprises of personal barriers
such as his behaviour and attitude that could bring fosters and hindrance at the time of result.
And the other factors in the atmosphere like social and cultural factors. Other factors such as
where he belongs to his family and the national factors could hamper and alter around the
enterprise. The factors including the characteristics and skills of an entrepreneur defines what
kind of entrepreneur he will become. All these factors must be keep under consideration
while the decision are made regarding the company. To conclude this for managing the small
business characteristics of entrepreneur are very important and have worth of making them
earn higher profits.
REFERENCES
Books and journal

Burns, P.2010. Entrepreneurship and small business: Start-up. Growth and Maturity.
Palgrave Macmillan.
Storey, D.J., 2016. Understanding the small business sector. Rutledge.
Obeng, B.A., Robson, P. and Haugh, H., 2014. Strategic entrepreneurship and small firm
growth in Ghana. International Small Business Journal. 32(5). Pp.501-524.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of small Business Strategy. 19(2). Pp.89-98.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship.
Small Business Economics. 42(4). Pp.663-668.
Carland, J.C., Carland, J.W. and Stewart, W.H., 2015. Seeing what’s not there: The enigma
of entrepreneurship. Journal of small business strategy. 7(1). pp. 1-20.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial Times/Prentice
Hall.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Colombo, M.G., Laursen, K., Magnusson, M. and Rossi‐Lamastra, C., 2012. Introduction: Small
business and networked innovation: Organizational and managerial challenges. Journal of Small
Business Management. 50(2). pp.181-190.