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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Task 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
Skills and traits are the two factors which are related to the success of any individual in the
organization or business. Employee loyalty and quality are the major factors which lead the
organizational growth through the enhancement of the profit and revenue. James Dyson is the
most famous and successful entrepreneur and they invented dual Cyclone vacuum cleaner. Sir
James Dyson is the British founder and inventor of the Dyson organization. Justin Matthew is the
owner of the Checkmate Social Media who has invested in the development of the social media
in the corporate sector. Following are the skills and traits which related to the James Dyson and
Justin Matthew:
Risk took
The entire successful entrepreneur has the personality to take a risk in their business through
which they can get success in the life. They have the power to tolerate the risk in their business.
James Dyson before starting their business takes many risks to get success in the life. James
Dyson makes strategies to overcome the negative impact of risk (Suresh and Ramraj, 2012).
Justin Matthew has started the business on the risk of the awareness of the use of the social
media among the people and the knowledge of the use of the applications.
Clear about vision
Entrepreneurs are very clear about their vision. James Dyson mainly focuses on the objectives
and the strategic planning that will help to invent new products and initiate for the long-term
goals in the business. It is identified that James Dyson always kept their eyes on the high profit.
They majorly concentrate on the turnover, growth, profit, rate and sustainability of the business.
Justin Matthew was clear about the vision of spreading the knowledge and information of the
networks among the people and the corporate. The vision of the entrepreneur was to maximise
the profit and provide an easy method of working with the business in reaching the people.
Motivation skill
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Entrepreneurs always motivate the employees who are associated with them in their business and
this will help to maximize the profit and revenue of the business. With the help of them to retain
their interest of the employees through which loyalty of the employees can be gained.
According to the skills and traits of the James Dyson they have roles and responsibilities in
respect of their organization as compared to the business manager. These types of skills play a
major role in the development of the James Dyson to become a successful entrepreneur
(Stuetzer, et. al., 2013). As per the study of Justin Matthew, the motivation increases the
willpower of the employee to carry on the work and duties. The roles and responsibilities should
be shared among the employees who will help in efficient working and effective management.
The skills of the person will decide the success and promotion.
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P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
An entrepreneur is a kind of people which possess the individual personality to manage and
guide the working environment at the business workplace. Their personality also reflects the
motivational quality and mindset in which how to handle and organize the activities and the
business project between the desired employees. Identification of the opportunity and strategic
actions is for planning the organizational aims and objectives so that entrepreneur can gain the
benefits in their business (Leutner, et. al., 2014). For example, James Dyson is the entrepreneur
which develops the creativity scope in their employees who are working in the Dyson
organization. He is the first person who invents the Dual Cyclone vacuum cleaner in the market.
Customers and clients will also attract the customers towards the latest technology and this
problem the issues of many homes and business.
Entrepreneurs and their mind-set are shaped by developing and managing the affairs of an
organization which help them to maintain the effective environment at the workplace. Internal
motivation and positivity for the working conditions impact the entrepreneur for the personality.
Positivity towards the workplace conditions helped to shape the mind of the entrepreneur for the
positive actions. Also, the personality to take the risks and manage the challenges impacts the
personality for the potential outcomes (Fairlie and Holleran, 2012). A risk-taking behaviour is
essential to lead the team and drive the expected outcomes. It reflects in the behaviour of the
entrepreneur. It also helps them to be motivated in their work and come up with the reality of the
expectations.
Skills and capabilities to do the task in the organized and well-structured manner reflect the
capabilities of the entrepreneur. For example, individual’s behaviour for the problems and
challenges creates motivation for the entrepreneurs. The motivation for the work reflects the
practices of the entrepreneur. In this manner, the individual’s characteristics and skills for the
entrepreneurship impact the practices, decisions and approaches to the scope and problems.
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Task 4
P7. With practical examples obtained through your mini-research, examine how background and
experience can hinder or foster entrepreneurship
The approaches of the entrepreneurs are different to than the others. They use own skills and
capabilities to drive the benefits in business. However, their skills and approaches to accomplish
the work and lead with high certainty are based on their learning and experience in their lifetime.
They are also creative and innovative to meet the desired expectations. They are strong in self-
management, motivation and coordination to surpass the challenges and achieve the results. It is
mainly from their observation capabilities and learning throughout the work.
For example, Richard Branson believes that risk and opportunities are available for an individual
in equal amount and time. But the entrepreneurs are motivated and risk taking to achieve the
goals and the skills are earned through their past experiences (Light and Dana, 2013). They also
possess the positive knowledge and decision making which is resultant of the education or
observation as the experience they are earned in their lifespan. It also makes them clear on the
goals and objectives.
Therefore the positive environment to motivate the entrepreneurship is also essential to form the
entrepreneur. It helps them to foster their skills and capabilities and earn experiences of the risk
and challenges. An individual might be self-managed for the goals as it might be part of the
knowledge or education whereas someone’s skills are not prompted due to lack of the proper
environment and experience. Individual’s background also impacts the performance and
decision-making process. For example, a highly motivated and encouraged entrepreneur
candidate can find something positive in the challenging environment of the business whereas
someone might focus on the risk and take steps backwards. In this manner, the background is
essential for anyone to promote the entrepreneurship.
Therefore, the risk-taking behaviour is formed over a long time and involves education and
experiences. Entrepreneurs mainly learned from their observations, experiences and knowledge
to learn and process their decisions making in different situations. For example, Steve Jobs has
learned from his own experiences rather than the education (Parker and Van Praag, 2012). He
has used life experiences and observations to make the technology better and integrated part of
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the life. The innovations and creativity are major characteristics of the entrepreneur to lead the
market and competitive benefits.
In this manner, the positive and negative impacts from the background and experience can foster
or hinder the individual in entrepreneurship. A well-defined and creative environment of the
working and learning can promote to uncover the skills and capabilities. However, the poor
learning and knowledge in the candidate itself also can hinder the entrepreneurship.
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Conclusion
The presented report has been concluded the various types of the entrepreneurial ventures and
defined their internal relationship on the basis of the concept of the entrepreneurship. Various
private and public entrepreneurial organizations are discussed with their scope, purpose,
development and growth. The report also has been concluded the differences and similarities in
the entrepreneurial ventures. It is concluded that small and micro businesses in the country have
a major contribution to the economy and there are mainly driven by their entrepreneurship. After
Brexit, conditions have been discussed and it is determined that small businesses can support the
growth of the economy. Individual’s characteristics and traits and their impacts on the behaviour
and motivation of the entrepreneur have been discussed. It is also determined that personality of
the entrepreneur is driven by their characters and traits. Also, the experiences and learning of the
entrepreneur impact the personality and it helps to boost their skills and capabilities.
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References
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Parker, S.C. and Van Praag, C.M., 2012. The entrepreneur's mode of entry: Business takeover or
new venture start?. Journal of Business Venturing, 27(1), pp.31-46.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
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Online
Small business importance, 2018 [Online] [Accessed Through]
<http://businesscasestudies.co.uk/nfte-uk/the-importance-of-entrepreneurship-in-small-
businesses/the-importance-and-benefits-of-small-businesses-today.html> [Accessed On:
12th March, 2018]
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