Entrepreneurship & Small Business Management Report - UK Analysis

This report provides an overview of entrepreneurship and small business management, examining different types of entrepreneurial ventures and their relationship to the typology of entrepreneurship. It explores the similarities and differences among various entrepreneurial ventures, including their purpose, scope, development, and growth. The report assesses the contribution and impact of micro and small businesses on the UK economy, highlighting their importance in improving economic conditions. Furthermore, it discusses the characteristic traits and skills of successful entrepreneurs, differentiating them from other business managers, and examines how background and experiences can either hinder or foster entrepreneurial skills, supported by practical examples.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................2
P2 Explore the similarities and differences between entrepreneurial ventures...........................4
Task 2...............................................................................................................................................5
P3. Provide an interpretation, assessment, evaluation and critical examination of relevant data
and statistics to illustrate how micro and small business impact UK economy..........................5
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................7
Task 3...............................................................................................................................................9
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set...............................................................................................................................11
Task 4.............................................................................................................................................12
P7. With practical examples obtained through your mini-research, examine how background
and experience can hinder or foster entrepreneurship...............................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

LIST OF TABLES
Table 1: Differences between different types of entrepreneurial ventures......................................3

LIST OF FIGURES
Figure 1: Business impact in UK economy.....................................................................................5

Introduction
Entrepreneurship can be defined as a process to set up the business and invest in the hope of
benefits. It means to adopt the risks and issues those might be occurred on the journey to get the
business. Small businesses are managed on the basis of the entrepreneurial skills. The presented
report will examine the different types of entrepreneurial ventures and their relationship to
entrepreneurial typology. The concept of the entrepreneurship will be discussed with various
examples. The report will discuss the differences and similarities among the various
entrepreneurial ventures including their purpose, scope, development and growth. Contribution
and impact of the small businesses on the economy will be discussed along with their importance
to improve the economic conditions. Various characteristics and traits of the entrepreneurs will
be discussed. It will explain how the person has a reflection of the characteristics to meet the
desired outcomes. Also, the impact of the background and experiences can hinder or foster the
entrepreneurial skills will be discussed and examined with various examples.
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Task 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Person actions will be enhanced as the opportunity development by using proper and effective
use of resources so that they can bring some innovation in their business. Entrepreneur term is
identified as the most appropriate opportunity to create any business. They perform various types
of activities in which budget management, the risk is taken, resource management and
management of goods sales and distribution (Baum, et. al., 2014).
Different types of entrepreneurial ventures
Owner managers
Owner-manager is the people who have the sole responsibility for staring their small business
and they are the main owner of this start-up business. They have all type of roles and
responsibilities while taking any type of risk and resource management.
Entrepreneur
They are mainly a manager of the organization or a business who takes initiatives to promote
their innovative product and services by using their skills and knowledge. They are known as the
inside entrepreneurs of the firm.
Serial entrepreneurs
These types of entrepreneurs are come up with some innovative ideas to start any business. They
play an essential role in daily basis functions and operations of the business (Burns, 2016). They
take a different type of challenges in their business just to bring innovative ideas.
Entrepreneurship in public and corporate sector
Entrepreneurs under the public sector organizations are quite related to the corporate
entrepreneurship. They are also related to the normative prescription in respect of the
entrepreneurship importance within the public sector. Entrepreneurship in the public sector will
take several forms and also create benefits range but also to date the low attendance for
generating values for a new public. On the other side, corporate sector of entrepreneurship can be
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termed as the business which takes the economy and earns a profit by providing their services.
These types of entrepreneurship are not owned by the government but public sector
entrepreneurship is owned by the government (Schaper, et. al., 2014). Entrepreneurs included in
the public sector mainly contribute to the economic market which is working along with the
objectives through which they can reduce the operational cost of the organization.
Entrepreneurs in the corporate sector are getting funds by making changes in the society. This
type of business utilizes some of the creative and innovative ideas through which the can bring
social changes in the society. This type of business brings many changes and benefits in the
societies which are mainly related to the educational and social benefits.
Scope, development and growth of entrepreneurial ventures
The scope of entrepreneurship is majorly related to the innovation in which task is involved to
bring innovative products and services. The scope of entrepreneurs defines that they are self-
employed as they no need to work under any organization. The growth of entrepreneurship
shows that they can develop many employments in the market for new people. Development of
entrepreneurship mainly contributes to the wealth generation (Blackburn, et. al., 2013). For
example: With the help of BREXIT, separation of UK and EU happened and that brings many
domestic ranges to start new business and range of products in the market. With the help of this
separation, new start-up business gets the opportunity to make their place in the market.
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P2 Explore the similarities and differences between entrepreneurial ventures
Table 1: Differences between different types of entrepreneurial ventures
Difference
s
Venture for a small profit Venture for high growth Venture related to
lifestyle
Meaning Small profit venture focus
on the business profit and
to earn a profit with the
business growth
High growth venture mainly
focus on optimization of the
profit enhancement and
grow their business in the
international market
These types of venture
offer owners an
independence and
control.
Scope Small profit venture
enhances the scope of
employment in the market
for the enterprise growth
and improves the living
standards of people.
They bring innovative ideas
and scope which lead the
growth for the ventures in
this market.
This venture includes the
personal interest and the
hobbies of the person to
attain desire profit.
Earning Small profit venture
observes the business
sales on monthly basis.
They get proper format and
records in documented and
updates form (Schaper, et.
al., 2014).
In this venture income,
they depend on the
owner’s efforts and
consider weekly income
also.
Growth This type of venture does
not focus on only making
a profit but they want to
expand the business.
On the other side, this type
of venture concentrates on
sales enhancement and to
expand their business.
Lifestyle venture offers
the flexibility to the
owners in respect of the
places, meeting and
hours
For
example
This includes small
business ventures starting
in-house or small scale
In this high or huge
innovative growth, firms are
included.
Consultancy services or
cafes or salons etc
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Task 2
P3. Provide an interpretation, assessment, evaluation and critical examination of relevant data
and statistics to illustrate how micro and small business impact UK economy
Entrepreneurs thinking and capabilities define their behaviour and attitude which are based on
their knowledge and observation and that are taken from the working environment in the
business. Ideas generation is based on individual skills and qualities and after that, only their
capabilities and working efficiency can be identified. Ideas of the entrepreneur will be created or
generated from their vision and creation of any new product. In the market, there are various
types of business such as- micro and small business which also play a major role to enhance the
UK economy (Storey, 2016). Different type of sources is used to identify or evaluate the
importance of micro and small business in the UK economy development. Some of the past
records, survey and statistical data are recommended to conduct this type of research in respect
of the micro and small business.
Figure 1: Business impact in UK economy
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The contribution of micro and small business in the UK economy development along with
their impact
Revenue or economy of the UK mainly includes the micro and small business that is operated at
a different type of level which plays an essential role in the development of the UK economy. As
per the conducted research, it is identified that micro business cover 94% of the growth which
brings at least 82% of the employment rate in the UK. This statistical data show that micro
business raises the private sector employment through which they earn £700 million turnovers.
Gross value added regarding products and services is mainly the contribution of the micro
business sector which definitely leads the growth of the UK in the financial sector (Cowling et
al, 2015). A business which is owned by the families is started to encourage the women. In the
UK economy, around 98% of the small businesses are acting as the main or spine for the
economic development.
As per the research or study, it is identified that in the year of 2014 around 5.3 million is
contributed by the small business and they also generate the employment in the UK by 9% and
also generate £350 million. Economic growth of the UK changed very drastically after they
receive votes of BREXIT (Hillary, 2017). In the Small business development, there are various
positive outcomes which help to handle the economic condition of the UK with the help of
introducing plans.
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P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy
The contribution of the small business is very effective for the development of the UK economy
which ensures the growth, innovative ideas supply and enterprises creativity. According to the
statistical research, it is identified that around 98%, small firms or businesses generate
employment opportunity for the people who are estimated at 64% jobs. With the help of small
businesses, they provide many advantages in the private sector through which high growth is
achieved by them (Small business importance, 2018).
Social sector development can also help to attract the fresh talent or new talents because they
have scope to take a risk and bring innovative ideas for the development of the products. This
will help to maximize the output through which customers will get satisfied. Small business is
essential because they provide an effective contribution to the employment rate development
which provides strength to the business and economy development. Effective and proper
example of the small business in which many businesses are included which serve the effective
products and services to the customers just to satisfy them (Storey, 2016).
On the other side, start-up business can be started with the individual that mainly earn the living
source and serve the individual basic needs. As per the research and survey, it is analyzed that
around 14.5 million people are employed under the small business and this will also share the
help of private sector business development. Small business or firms are mainly dealing with the
manufacturing products and services so they generate high revenue and contribute 54% to the
UK economy.
In the globalization process are motivated by the organization that is at large scale. This process
will help the large scale of the organization so that they can generate revenue and after that, they
can contribute to the economic development. Around 2.5% are estimated figure which is related
to the total revenue generated by the large-scale firms (Ackermann, 2012). Educational and
finance sector also help the government of the country to increase the GDP rate and economy of
the UK. Small business play role in the development of the national and regional level as they
generate around 65% of the employment for the local people which enhance the economic
condition also. This will also focus on the domestic and global market such as manufacturing
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sector through which they can expand their business at the international level (Bridge and
O'Neill, 2012). Small business also helps to increase the niche market and proper sale of the
products and services to protect the environment.
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