Entrepreneurship and Small Business Management: An Analysis of UK SMEs

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION............................................................................................................................. 3
SECTION1....................................................................................................................................... 4
P1 EXPLAIN ENTREPRENEURSHIP DIFFERENT ENTREPRENEURIAL VENTURES, TOPOLOGY.......4
P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES. .6
M1 INVESTIGATE DIVERSE RANGE OF PUBLIC SECTOR ENTREPRENEURSHIP AND CORPORATE
SECTOR ENTREPRENEURSHIP.....................................................................................................7
SECTION2....................................................................................................................................... 8
P3 INTERPRET AND ASESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE THE IMPACT OF
SMALL BUSINESS ON ECONOMY................................................................................................8
P4 IMPORTANCE OF THE START-UPS TO THE GROWTH OF SOCIAL ECONOMY.......................10
M2 EVALUATE THE DIFFERENCES SMALL MEDIUM AND LARGE BUSINESS MAKE TO THE
ECONOMY, APPLYING RELEVANT DATA AND STATISTICS........................................................12
LO3............................................................................................................................................... 14
P5 DETERMINE CHARACTERISTICS TRAIT AND SKILLS OF SUCCESSFUL ENTREPRENEUR.........14
P6 ASSESS HOW ASPECT OF THE ENTREPRENEURIAL PERSONALITY REFLECT
ENTREPRENEURIAL MOTIVATION AND MINDSET....................................................................16
M3 EXPLORE AND EXAMINE DIFFERENT LINES OF ARGUMENT RELATING TO
ENTREPRENEURIAL CHARACTERISTICS.................................................................................... 17
LO4............................................................................................................................................... 18
P7 HOW BACKGROUND AND EXPERIENCE CAN HINDER OR FOSTER ENTREPRENEURSHIP.....18
M4 Analyse the traits and background experiences with specific entrepreneur.....................20
CONCLUSION:.............................................................................................................................. 21
REFERENCES.................................................................................................................................22
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INTRODUCTION
Entrepreneurship is basically a risk-taking the ability to start a new business in the market with
the goal of making high profit in the business (Burns et al.,,2016). This assignment gives an
insight into various types of ventures characteristics and traits of an entrepreneur. This
assignment also throws light on the similarities and differences among various ventures, the
impact of the entrepreneurship on the economy with the help of the statistics and data and it
also discusses the male and female entrepreneurship and the successful traits of an
entrepreneur with the importance of the entrepreneurship in the economy.
HSO is a small business firm based founded in 1989 based out of the UK which works on ERP
and cloud solution various clients 24/7. The main goal is to become the best supplier of the
business solution to improve the sustainability of the business and improve the customer base.
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SECTION1
P1 EXPLAIN ENTREPRENEURSHIP DIFFERENT ENTREPRENEURIAL VENTURES,
TOPOLOGY
Entrepreneur: An entrepreneur is a person who owns the business and runs the business
organization with high risk taking the ability for marking profit in the business.
Entrepreneurship: This is the process in which the business activities are being carried out by
the owner of the business in alignment to all the other task involved in the business in order to
make a high profit (Burns et al.,,2016).
Ventures: This is the type of business where the business activities are carried out with
innovation and development of the social and economic value.
Intrapreneurs: Intrapreneur is the employee who develops the strategies for the development
of the business and does not face any external or internal risk which affects the business
however they have full access on the resources of the business.
Owner-Manager: Owner-Manager is the [person who runs the business and who manages the
business taking care of all the activities in the business.
Independent Entrepreneurship: Independent entrepreneurship is the business where the
owner independently works for the business considering the financial risk, operations, bringing
innovation in the business process and product for making a profit.
Lifestyle venture: Lifestyle entrepreneurship is the business which is carried out with the
purpose of altering their personal lifestyle and not for only making a profit.
Public sector: This type of entrepreneurship is run by the government and the shareholders of
this business are flexible and does not involve in high risk-taking. This creates value for society
and the public. Example: London Treasure Graduate finance
Private Sector: The business venture is established with the sole purpose of earning profit only
not focusing on the public interest. This is the business which is owned privately.
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Example: Bright star Financial Services provides financial solutions to clients.
Social Entrepreneur: These are the entrepreneur which carries out the business for the welfare
of the society. The main aim of the business is to add value to the life of the people and not
profit making with maximum social welfare (Burns et al.,,2016).
Example: Auction is the company which hires the autistic adult for providing IT solution to the
clients.
Serial Entrepreneur: This type of entrepreneur constantly works on new ideas and strategies
and comes up with a business which is very distinctive in nature and concept.
Example: Marc Biles founder of Ratio a software company which makes a product for complex
archaic more efficient.
Female Entrepreneur: The female entrepreneurs are the business women who come up with a
new idea and start their own business. The female entrepreneurs organize, arrange, operates
the daily activities of the business on their own.
Example: Valerie Stark CEO of Huggle it is a dating app founded the people with the same
interest in the UK and created this app.
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P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
VENTURES SIMILARITIES DIFFERENCE
Lifestyle Ventures Runs the business with an
innovative and new idea
The sole purpose is to alter
the living standard and status
Serial Entrepreneur The main purpose is to thrive
and make a high profit
Constantly work on a new
idea and distinctive idea and
comes up with the business
Female Entrepreneur Woman start their business to
earn profit and fame
Female alone or in a group
start their own business and
generally, it is for a social
cause
Male entrepreneur The business is started to
generate high revenues and
expansion (Morris et
al.,,2018)
A male or group of males start
the business in any field
Social entrepreneurship Entrepreneur comes up with a
new idea and starts the
business
This type of business is done
for the welfare of the society
and not for profit making
Private entrepreneurship The entrepreneur works for
the business considering all
the factors
This whole-sole of the
enterprise is the owner
without any interference of
another party
Public Entrepreneurship Profit making is the main aim
of the business.
This business is owned by
government employees
Owner-manager This business thrives to earn
profit in every possible
manner
The owner works as the
manager of the business and
is involved in every process of
the business.
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M1 INVESTIGATE DIVERSE RANGE OF PUBLIC SECTOR ENTREPRENEURSHIP
AND CORPORATE SECTOR ENTREPRENEURSHIP
Public sector entrepreneurship is the business which is owned by the group of people who are
associated with a government body and regulates the business in the economy. The sole
purpose of this kind of entrepreneurship to earn profit and enhance the economy with an
increase in GDP through the business by following the traditional practices of the business and
adopts the public policy. This also refers to innovative public policy initiatives that help in
generating greater economic revenue. The enterprise earns profit and along with this work for
the welfare of the society and development of the nation is the ultimate aim of this type of
business, generally, there is no strategy for the expansion of the business all over the world
(Morris et al.,,2018).
The private sector of entrepreneurship is the business in which the owner is the whole-sole of
the business. The business follows the modern and traditional practices both whichever helps in
yielding high profit. The main aim of the private sector entrepreneurship is to earn high profit
and generate high revenue out of the business. This type of business provides employment and
welcomes innovation in the business through various sources. The profit is shared among the
employees in the form of increment, bonus, etc. and helps in increasing the living standard and
status of the employees along with the expansion of the business (Netaji et al.,,2017).
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SECTION2
P3 INTERPRET AND ASESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE
THE IMPACT OF SMALL BUSINESS ON ECONOMY
Small business enterprise plays an important role in the development of the UK's economy and
has a huge impact in various ways to the economy. The emergence of the small business have
given a growth to the UK’s economy to a great extent and is called as the backbone of the
economy as , there is a rise in the employment, elimination of poverty, an increase in the GDP
of the nation and emergence of the new ideas in the business (Netaji et al.,2017).
FIGURE 1: Impact of SMEs on UK economy
SOURCE: (Netaji et al., 2017).
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In the current scenario of UK's economy, the 99% of the business comprises of the small-sized
business which gives about 48% of employment in the private business and reflects about 6.4
million of jobs within the UK. The SMEs are contributing more than 60% in the UK's economy
turnover. With increase in the small business in UK there is significant growth in almost every
sector of the nation with increased employment and foreign foot-falls in the nation which also
increases the GDP of the nation promoting government grants to the start-ups and the increase
in the foreign business trade in the nation (Netaji et al., 2017).With the increase in the GDP and
strong economy, it automatically gives security to the citizen of the nation and enhancing social
security.
Private Business: The business which is non-public and it is purely owned and operated by an
individuals or group of individuals in their own way following the rules and laws of the business
is called a private business. There is no interference of the government in the private business.
Partnership Business: Partnership business which is formed and started on the basis of signing
the contract or legal agreement between two or more partner who is known as business
partner or co-partner. In a partnership business, there is an equal investment made by all the
partner and have equal access to all the assets and resources of the business and profit is
equally shared.
Sole proprietorship: Sole proprietorship is the business in which there is no distinction between
the business entity and the owner. All the profit is received by the proprietor and is responsible
for unlimited losses and gains.
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P4 IMPORTANCE OF THE START-UPS TO THE GROWTH OF SOCIAL ECONOMY
Social Economy: Social is formed by the rich diversity of the organization which operates for the
upliftment of the society and the economy with their organizational objectives and goals. There
is much organization like associations, mutual, foundations, cooperatives, etc who work for the
welfare of the society and upliftment of the economy (Rizos et al., 2015).
Small business is important for the growth of the economy to make it more strong and firm in
every manner. As per the study, it was found that 9% of SMEs are of social enterprise which
works for the welfare of the society which shows about 371000 entrepreneurs in the UK. An
example is Cafédirect in the UK which invest half of its profit back into the small growing firms
and farmer communities and till date has invested about £6. This results in the growth of the
small firms and farmers which ultimately benefits the economy of the UK from the growth and
income generated by them.
The small business has become so popular and beneficial for the economy that the government
is giving loan for the start-ups in the UK. About 52% of employment is by the small business
enterprise and about 96% of the SMEs are opened in the cities of the UK and promoting the
economic growth of the UK. People from various countries also come to the UK and join such
SMEs and earn their livelihood with better living standard and their personal growth.
Another area where there is a huge impact of SMEs is the generation of employment. The
emergence of the small business enterprise there is an increase in the employment of the
nation about 5.7 billion employment is generated in the last 6-7 years in the UK this has also
eradicated the poverty to a great extent and helped in giving a rise in the living style of the
people (Rizos et al., 2015).
There is rise in the foreign trade and business with increase in the small business because the
GDP has increased with the increase in the SMES and this has made the UK economy very
strong and flourishing where the other countries want to invest and make profit which
ultimately increases the credibility of the country and enhances the currency value of the
country. With the increase in the foreign trade and business there is growth in the banking
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sector also as the SMEs are taking up loan for the start-up, and the foreign business and trade is
done with the help of the banking institution therefore, it shows that the increase of SMRES
and start-ups has a very positive impact in all the areas of the UK economy.
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M2 EVALUATE THE DIFFERENCES SMALL MEDIUM AND LARGE BUSINESS
MAKE TO THE ECONOMY, APPLYING RELEVANT DATA AND STATISTICS.
Small business contributes at every level of the UK economy that is ta local level, national level,
and regional level. From a study, it has found that 80% of total SMEs are present in England
which gives 94% of jobs. With an increase in the grant to the small business, there is an increase
in the innovation and micro business and macro business. The expansion and innovation in the
market have given rise to the foreign trades and export business which has contributed to the
rise of the GDP of the UK. From a study, it has found that the expansion of business has given
about 1.14 billion Euros to the export business only.
FIGURE 2: impact of SMEs on UK economy
SOURCE: (Rizos et al., 2015).
It has also found that approx. 1.69 per thousand resident business in the UK and overall 1519
per ten thousand residents in London. With increase in small business and start-up it has given
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