Analysis of Entrepreneurship and Small Business Management Report, UK

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and exploring various entrepreneurial ventures, including small businesses, large organizations, and social enterprises, along with their typologies. The report then delves into the differences and similarities between these business types. Using statistics and data, it analyzes the impact of small and micro businesses (SMEs) on the UK economy, highlighting their contribution to job creation, economic growth, and social development. The merits of business startups and small organizations in fostering the growth of the social economy in the UK are also discussed. Furthermore, the report examines the characteristics, traits, and skills that differentiate successful entrepreneurs from managers, along with aspects of entrepreneurial personality related to motivation and mindset. Finally, it considers how background and experience can either hinder or foster entrepreneurship. The report concludes by summarizing the key findings and implications of the analysis.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types of entrepreneurial ventures and their relationship with typologies of
entrepreneurship.....................................................................................................................1
P2 Mention the differences and similarities in various entrepreneur businesses...................2
TASK 2............................................................................................................................................4
P3 Access and interpret relevant statistics and data to define the impact of small and micro
businesses on UK economy....................................................................................................4
P4 Merits of business starts-ups and small organisations in the growth of social economy in
UK .........................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Characteristic, traits and skills of successful entrepreneurs that differentiate them from
managers ................................................................................................................................7
P6 Aspect of entrepreneurial personality that reflects their motivation and mindset.............8
Task 4...............................................................................................................................................9
P7 Background and experience can hinder or foster entrepreneurship..................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is described as a way associated with running, designing & launching a
new business in marketplace, most of the times a small business or a new starts-up so that
profitable revenues and outcomes can be earned. Those persons which owns and manage these
businesses either solely or in partnership are called as entrepreneurs (Bryson and Daniels, 2015).
This assignment will include and cover about different manner of entrepreneur businesses and
their relation with varying entrepreneurship typologies. Also, difference and similarity in
different businesses are mentioned. By using statistics and other information, influence of SME
on UK economy and their role in improvement economy at social level is mentioned. Beside
this, various traits, skills and characteristics of entrepreneurs is mentioned to differentiate them
from managers of a company. Aspects about mindset and motivation of entrepreneurs along with
factors like background and education which hinders or fosters the success of entrepreneurs are
described under this report.
TASK 1
P1 Various kinds associated with entrepreneurial ventures and their relationship with typologies
of entrepreneurship
Entrepreneurship is referred as the willingness and capacity to manage, organise and
develop an entire new business along with bearing different risks. Entrepreneur manages these
businesses to achieve high sales and profits so that comfortable livelihood can be enjoyed.
Entrepreneurial ventures are medium and small sized businesses which helps an individual in
earning capital in return of economic activities (Burrows, 2015). With the help of these activities,
new, innovative and unique products can be offered to the customers so that business owner can
gain high advantage over other business personal. Different entrepreneurial venture posses
varying size, service, scope, purpose that is stated beneath:
Different kind of business venture
Small business
Small businesses needs limited quantity of workers and money to manage their business
operations and activities. These businesses are small in size and their scope is limited as they are
operated at small level only. These ventures are run and managed to provide genuine services
and good offerings to clients without charging them high. Owner of these businesses either work
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solely or in partnership with other individuals. Main purpose for managing these businesses is to
earn high amount of profits. These businesses earn up to 2 million pounds and hire less than 50
workers. For example, Rowlinson Knitwear.
Large businesses
Large businesses are managed and operated at high level and require large number of
workers, money. As these business operates at large scale, their size and scope is wide. These
ventures produce high quality products so that expectation of clients will be fulfilled in a proper
manner (Erasmus, Strydom and Rudansky-Kloppers, 2016). These business venture posses
strong position in marketplace due to achievement of high revenues and profits. For instance,
marks & Spencer.
Social enterprise
These type of business firms are created for the well being and sake of society. These
companies initiates new ideas so that population in UK can live a comfortable life. Scope of
these organisations is very high as they provide high offer to residents and local individuals and
their size depends upon their area coverage. These businesses firm never earn high profit
margins. For instance, save the children etc.
Different kind of entrepreneurial typologies Lifestyle enterprises: These companies are managed and run to earn high living standard
and comfortable life. This will allow the people to improve their lives. These companies
provide wide job and employment opportunities to the local people so they can sustain a
good and comfortable life. These type of business are part of social ventures. For
example, Oxfam (Ferreira, Loiola and Gondim, 2017).
 Growth firms: These business firms are operated to attain more revenues. By taking help
of innovation, these organisations increase their productivity. These business ideas and
concepts are generated so that desire of clients can be fulfilled in a desired way. These
firms can either be large or small in size.
P2 Mention the differences and similarities in various entrepreneur businesses
In business world, there exist various differences & similarities in business and
entrepreneurial ventures or businesses which are listed below:
Differences
Basis Small enterprise Large organisation Social firm
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Scale These businesses and
their activities are
managed at small level
only due to which less
funds are needed.
These organisations runs
at high level and require
large number of
investment and man
power.
These companies works
at local level so that
needs and demands of
customers can be
accomplished desirably.
Purpose Purpose behind these
business is to earn high
genuine revenues and
income.
These businesses have
purpose of earning high
profitability to gain
competitive advantage in
market.
These organisations
operated to enhance
working standard of
local individuals.
Characteristics Government
intervention is low and
limited resources are
needed to manage
business (Galloway,
Kapasi and Sang, 2015).
Such businesses require
high amount of cash and
employees. Government
intervention is high due
to increased business
activities.
Funds are arranged by
government due to this
these organisations are
called as governmental
firms.
Similarities
Basis Small business firms Large business
organisations
Social organisations
Meeting the
requirements
These business came
are operated to fulfil
requirements of
common people at
regional level.
These companies
operates to satisfy clients
at national and
worldwide context
These businesses offer
support to local
individuals so that they
live a comfortable life
Upliftment of
society
These companies and
firms provide good
earning opportunities to
local population.
Provide job opportunities
to people at regional and
local level (Ghio and et.
al., 2015).
These companies offer
job benefits working
condition of society can
improve considerably.
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TASK 2
P3 Access and interpret relevant statistics and data to define the influence of micro and small
businesses on UK economy
SMEs has played an essential role in shaping up the economy in UK. Government offers
high support to these firms as they contribute in maintaining a strong economy within nation.
Main reason for operating these business is to earn high revenues to live comfortable life.
Different type of businesses are listed below:
 Micro businesses: These firms have small scale size and works at very small level. They
have less than 12 employees working for them. These businesses earns genuine income
and profits by providing premium quality services and products to customer base (Henry,
Foss and Ahl, 2016).
 Small business: These firms perform less business operations but operates higher than
micro businesses. These businesses employ less than 60 employees. Main objective of
these businesses is to earn profits by increased sale so that standardised life can be spent.
 Large business organisations: These companies require high finances and investment to
operate their business. They have more than 250 workers working for them and generate
high profits at every financial year. Their main objective is to attain high sales and
revenues so that worldwide recognition can be achieved.
Statistical data denoting the impact of SME on UK
 In beginning of 2018, approx 5.6 million small commercial enterprise came for
registration.
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 Private working sector had decrease of 0.5% in their business but their employment ratio
has been enhanced by 0.2%.
 In UK, SME accounts for 99.3% of total private business in 2018 in which more than
99% firms are SMEs.
 Approximately 16.5 million people individuals are working in these SMEs that is equal
to the 60% of total working population under private sector (UK Small Business
Statistics).
Illustration 1: Role of start-up and small business in UK
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Impact of SMEs on UK:
 Local impact: SMEs posses high impact on UK economy due to job opportunities it
offers. Capable employees are recruited and given salaries according to their talent and
capabilities. Combined employment rate of these SME's is 60% due to this, local people
manage their revenues and expenses without getting dependent on others.
 Regional impact: Small and medium firm posses wide impact at regional level.
Individuals are very satisfied by services of these firms and spend their life under utmost
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comfort. These organisations provide facilities and employment opportunities at regional
and state level due to which people earns disposable income.
 National impact: SMEs fulfils the needs and demands of population in UK due to which
people residing their prefer to use their services or products. This popularise them and
expand their business operations in outside UK also due to which growth at national level
is attained. More than 99.9% businesses are SMEs in UK. Beside this, taxes paid by these
firms are used for infrastructural development (Role of Start-up and small business).
P4 Merits of business starts-ups and small organisations in the development of economy
specifically UK
Small business as well as new venture are performing their role as backbone in the social
economy. It determines that Midget scale industries are mandatory for the growth of economic
condition of a particular country (Rauch and Hulsink, 2015). Some important aspect of them are
mention as below:
Job creation: In present market condition of UK private and new venture provides more
job opportunities for the local individuals by engaging them to complete organisational activities.
Along with this it helps an organisation to complete their goals within specified period by
providing them training of essential skills. It not only provide benefits to organisation but it also
improve the surviving regulation of society through providing the work opportunities which
increases the per capita income of individuals.
Improve living standard: SME covers all the essential aspects that directly or indirectly
impact on the living standard of society. Like unemployment rate, minimum wages act etc. that
is beneficial for increasing living standard of society. In order to achieve them properly
organisation which are operating their business in local boundaries offer goods of inferior quality
in the market. Moreover the goods or services that are manufactured by them are developed by
analysing the needs and demand of customers which directly increases the sale of their products
(Ramadani, Gerguri-Rashiti and Fayolle, 2015).
Economic growth: SME plays crucial role in developing the economic condition of
society as they bring unique and innovative concept in the market. This results that they open
new doors in the market which provides benefits to organisation as well as employer. Medium or
small enterprise earn sufficient revenue by providing effective goods or services to customer and
in return they provide tax to government. It results that SME provides stability in the economic
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condition of UK by increasing in the sale of company products that bring more revenue in
organisation.
The above paragraphs show that SME are valuable part for organisation because they
generate imaginative ideas into practical world. Like they provide employment which increase
income of individuals as well their life standard.
TASK 3
P5 Aspect of entrepreneur ability that differentiate from other managers
Entrepreneur respond differently from managers which determines that there is a
difference between the skills, traits and characteristic of them as compare to managers. J.K
Rowling and Oprah Winfrey are successful entrepreneurs that are recognise in overall world due
to their characteristic, skills and trait. They both earned huge success as women entrepreneur
because of their passion and willingness to accomplish their goal. Some characteristic, traits and
skills that are present among all entrepreneurs are mention as below:
Characteristic Passion: Passion is the most essential characteristic which is integrated in an
entrepreneur that helps to carry out their goals and targets within specified period. With
implement of this characteristic, Rowling and Winfrey are totally focused towards toward
their work which results that they achieve huge success (Oviatt and McDougall‐Covin,
2015). While manager are not passionate about their work due to which they are not able
to accomplish organisational goal with in accurate manner. It results that manager lose
their patience while facing difficult situations. Self-efficacy and hard work: The other characteristic which is followed by Winfrey and
Rowling that lead them towards more success is hard work and self-efficacy. It results
that hard work helps an entrepreneur to perform their work in complex situations. While
manager complete their work but they does not put more efforts to complete their work.
So it creates difference between manager and entrepreneur.
Skills Innovative thinking: This skills are essential for an entrepreneur because it helps them to
introduce new concepts that solve complex issue like low sale of their products,
minimum working hours. The innovation skills helps them to remove the barrier that
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reduces their profitability. But a manager only follow the path which is decided by the
leader. It result that they are not able to develop innovation skill. Leadership: This skill is most essential element of an entrepreneur which determines that
they provides long term benefits to the organization. Example- Leaders like Winfrey and
Rowling make decisions that are related with risk it helps them to complete their work
within minimum time period. Manager delegates and roles to employee but leader guide
the employee that how to complete their task it determines that it create difference
between manager and leader (Malecki, 2018).
Traits
 Confident: This trait is most essential aspect of entrepreneur that helps a leader to make
accurate decision within minimum time period. Decision that are taken by Winfrey and
Rowling are confident either they are in complex situation or not. While manager are not
comfortable to make decision in complex situations. This difference between manager
and leader to take decision helps both women entrepreneur to make effective decisions
due to which they achieve high success in organization.
 Disciplined: This trait are mandatory for entrepreneur because to achieve high success
they are able to complete their goals with efficiency and effectiveness. It results that they
create balance between their personal as well as professional life. In context of both
entrepreneur this trait helps them put emphasis on achieve their goals without any
interface and distractions.
P6 Aspect of entrepreneur attributes that reflects their motivation and mindset
To understand the personality of Rowling and Winfrey OCEAN model is implemented
that defines their personality in simple approach.
Openness: This element helps an individual to learn new things and ideas from the everywhere
that take an entrepreneur a step ahead from others. Like Rowling and Winfrey adopt this aspect
which helps them to make creative results for organization. As they are curious to learn new
things due to which they are able to tackle complex challenges easily (Krajňáková, Navikaitė
and Navickas, 2015).
Conscientiousness: In this factor an individual complete their work through constant and
continues way. Like Rowling and Winfrey complete their task through stable way or nature. It
determines that they complete work by putting regular efforts that bring stability in their work.
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Extroversion: This skill defines that an entrepreneur need to adopt the extrovert behavior that
helps them to interact with other employees. In context of Rowling and Winfrey they take
regular feedback and review from other employees which is useful to improve their performance.
Agreeableness: To become an successful leader it is important for them to influence all the
stakeholders of an organization in order to take effective decision. Rowling and Winfrey make
decisions that directly impact on their them as well as their performance.
Neuroticism: In this factor aspect which related with stress, desire, jealousy, happiness are
included in this they all helps an organization to make decisions which are useful to respond in
difficult circumstances. It is important for Rowling and Winfrey to reduce this aspect because it
negatively impact on the performance of employees.
Task 4
P7 Background and experience can hinder or foster entrepreneurship
In this task background and experience of entrepreneur is mention that helps them to
make effective decisions.
Oprah Winfrey
Background and experience: Oprah Winfrey is a famous media executive that organize talk
show, news channel and other entertainment shows. Her mother was a maid that belongs to
Mississippi. While the profession of father is coal-miner. She belongs to African American
society, in the earlier stage of her life she was poor because family background of Oprah is poor.
Due to bad economic conditions proper education and other necessities is not provided to them.
It result that she ran from her home in small age.
J.K. Rowling
Background and experience: Joanne Rowling is a British novelist that got fame by the Harry
Potter series. She was born in an engineer family and her father name was Peter James Rowling.
In earlier stage of her different challenged create barrier in becoming an successful entrepreneur.
Like continue rejections in getting a job and incomplete education blocks her path. Due to this
challenges early life of Rowling was hard and pathetic. At last in the year 1990 she influenced
producer to print and realize Harry Potter series among overall world.
This above points show that it is complex to become an successful entrepreneur they need
to face different challenges which impact on their performance. But Rowling and Winfrey faces
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completes their work by putting more efforts so their hardships result this approach in positive
way to complete their work.
CONCLUSION
From above discussed report, it can be concluded that there are various type of business
ventures like small business, social business, large business etc. which are related with the
typologies such as growth venture, lifestyle venture in a proper manner. Different entrepreneurial
business have similarities and differences in them. With the help of appropriate data and
statistics, impact of SME on economy and social economy of UK can be identified. There are
varying skills, characteristics and traits of entrepreneur which enhances their working potential
and differs them from business managers. Background and experience of an entrepreneur highly
impacts their success and professionalism.
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REFERENCES
Books and Journals
Bryson, J. R. and Daniels, P. W. eds., 2015. Handbook of service business: Management,
marketing, innovation and internationalisation. Edward Elgar Publishing.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Ferreira, A. D. S. M., Loiola, E. and Gondim, S. M. G., 2017. Motivations, business planning,
and risk management: entrepreneurship among university students. RAI Revista de
Administração e Inovação. 14(2). pp.140-150.
Galloway, L., Kapasi, I. and Sang, K., 2015. Entrepreneurship, leadership, and the value of
feminist approaches to understanding them. Journal of Small Business Management.
53(3). pp.683-692.
Ghio, N. and et. al., 2015. The emergence of the knowledge spillover theory of
entrepreneurship. Small Business Economics. 44(1). pp.1-18.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Hodges, N. and et. al., 2015. Women and apparel entrepreneurship: An exploration of small
business challenges and strategies in three countries. International Journal of Gender
and Entrepreneurship. 7(2). pp.191-213.
Krajňáková, E., Navikaitė, A. and Navickas, V., 2015. Paradigm shift of small and medium-
sized enterprises competitive advantage to management of customer
satisfaction. Inžinerinė ekonomika. pp.327-332.
Malecki, E. J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography
Compass. 12(3). p.e12359.
Oviatt, B. M. and McDougall‐Covin, P., 2015. International entrepreneurship. Wiley
Encyclopedia of Management. pp.1-3.
Ramadani, V., Gerguri-Rashiti, S. and Fayolle, A. eds., 2015. Female entrepreneurship in
transition economies: Trends and challenges. Springer.
Rauch, A. and Hulsink, W., 2015. Putting entrepreneurship education where the intention to act
lies: An investigation into the impact of entrepreneurship education on entrepreneurial
behavior. Academy of management learning & education. 14(2). pp.187-204.
Spence, L. J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society. 55(1). pp.23-55.
Walsh, G.S. and Cunningham, J. A., 2016. Business failure and entrepreneurship: Emergence,
evolution and future research. Foundations and Trends® in Entrepreneurship. 12(3).
pp.163-285.
Online
UK Small Business Statistics, 2017. [Online]. Avaialble through: <https://www.fsb.org.uk/media-
centre/small-business-statistics>.
Role of Start-up and small business. 2017.[online]. Available through:<https://www.market-
inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-uk/>
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