Entrepreneurship & Small Business: Venture Analysis and Impact

This report provides an overview of entrepreneurship and small businesses, focusing on different entrepreneurial ventures and their relationship to entrepreneurship. It assesses the impact of micro and small businesses on the economy, particularly in the UK, and differentiates between small, medium, and large businesses. The report also identifies the traits of successful entrepreneurs, examines how entrepreneurial personalities reflect motivation and mindset, and analyzes how an individual's background and experience can foster or obstruct entrepreneurship. Furthermore, it explores the significance of small businesses and startups in the social economy, highlighting their contribution to employment, turnover, and industry development.

Entreprenuership and small buisness

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................1
COMPANY OVERVIEW....................................................................................................2
TASK 1...............................................................................................................................3
P1 DIFFERENT ENTREPRENEURSHIP VENTURES AND RELATIONSHIP WITH
ENTREPRENEURSHIP.................................................................................................3
M1 UNDERSTANDING OF ENTREPRENEURSHIP IN PRIVATE AND PUBLIC
SECTOR........................................................................................................................5
P2 DIFFERENCE AND SIMILARITY AMONG ENTREPRENEURSHIP VENTURES..6
P3 DESCRIPTION OF IMPACT OF MICRO AND SMALL BUSINESS........................8
M2 ASSESSMENT OF DISSIMILARITIES BETWEEN SMALL, MEDIUM AND
LARGE BUSINESS........................................................................................................9
P4 SIGNIFICANCE OF SMALL BUSINESS AND STARTUPS IN SOCIAL ECONOMY
.....................................................................................................................................11
TASK 2.............................................................................................................................12
P5 IDENTIFICATION OF TRAITS OF A SUCCESSFUL ENTREPRENEUR WITH
EXAMPLES..................................................................................................................12
M3 DIFFERENT LINES OF ARGUMENT IN RELATION TO CHARACTERISTICS OF
ENTREPRENEURS.....................................................................................................14
P6 ASSESSMENT OF HOW CHARACTERISTICS OF ENTREPRENEURIAL
PERSONALITY REFLECT ENTREPRENEURIAL MOTIVATION AND MINDSET....15
P7 EXAMINATION OF HOW INDIVIDUAL’S BACKGROUND AND PAST
EXPERIENCE CAN FOSTER OR OBSTRUCT ENTREPRENEURSHIP......................16
M4 ANALYSIS OF LINK BETWEEN ENTREPRENEURIAL CHARACTERISTICS
AND IMPACT OF PERSONAL EXPERIENCE AND BACKGROUND TO
PARTICULAR SUCCESSFUL ENTREPRENEURS...................................................17
CONCLUSION.................................................................................................................18
1

REFERENCES................................................................................................................19
2

INTRODUCTION
The practice of Entrepreneurship incorporates tactical thinking and smart planning that
provides aid to the individual to gain substantial success in a business establishment.
The individuals engaged in this practice are the entrepreneurs. The report will focus
firstly on entrepreneurship ventures and relationship with entrepreneurship. Moreover,
the impact of small and medium business on frugality will be illustrated and evaluated.
Furthermore, the entrepreneur will be differentiated with the business manager on the
basis of their qualities followed by a reflection of characteristics of an entrepreneur. The
valuation of considerable factors will be carried out that obstruct the growth and
development of entrepreneurship for a business individual. The incongruities to the
qualities of an entrepreneur will be explored further and the relationship between the
entrepreneur qualities and his background will be further scrutinized.
3

COMPANY OVERVIEW
Ensoft is a software company having its headquarters in Harpenden, the UK founded in
the year 1997 with the vision for developing all aspects of networking software that runs
in the core of internet for keeping the world connected (Ensoft, 2018). The company
has been ranked 3rd in the UK by the Sunday Times 100 Best Small Companies to Work
for in the year 2018. The company has a working staff of 71 people with the ratio of
male to female of 87% / 13%. The privately held company has witnessed growth with
annual revenue of 10 million pounds that accounts for considerable profit each year.
The small business imparts healthy work environment for its employees and expects the
same from its employees to give their best performance and gain excellence in their
areas of work.
4

TASK 1
P1 DIFFERENT ENTREPRENEURSHIP VENTURES AND RELATIONSHIP
WITH ENTREPRENEURSHIP
The activity of founding of a business or a number of businesses taking a risk in
financial terms in the anticipation for gaining some profit is known as Entrepreneurship
and the individuals engaged in the process are the entrepreneurs (Drucker, 2014). A
small business incorporates creating a new venture that can be categorized on the
basis of management style, growth rate, mission, objectives and goals of a business
and finance and other factors. A variety of ventures based on above-given factors are
equated in the table below-
BASIS AGGRESSIVE MANAGED LIFESTYLE SURVIVAL
Managing
style
Planned and
active approach
Strategic and
calculated
Strategic and
well-planned
approach
Reactive style
Growth rate in
annual terms
Greater than
25%
Greater than
10%
Less than 10% Up to 15%
Structure Product and
service based
Central and
organisational
Simple Managerial
Management
capabilities
Well planned
and tactical
incorporating
innovation
Planned and
tactical and
delegated
Modest
management
Sales and
improvement of
products and
services
Use of
technology
Better
technological
practices
Standard
technology
Controlled and
measured
None
Time Span in
years
10 3-4 None 1-2
Rewards Profit and Enhancement Fixed profits Standard
5

gained equity in performance
and augmented
popularity
income
Finance Guarantee from
the bank and
additional
investment
organisations
Bank and
capital
stockholders
Banks and well-
wishers
Self-investment
Entrepreneurs contribute significantly in the growth and expansion of economy along
with engagement in innovation process thus presenting new ideas for the businesses.
They provide support in offering employment to the individuals in the location of their
businesses and recruit new talent and skills (Jóhannesson, 2012). The main motive of a
new business startup is delivering services by acclimatizing to new ideas for
successfully establishing in the present market.
Ensoft has grown in the last 21 years with a staff turnover of 9% and earning above
£35,000 increased to 97% therefore contributing to the accomplishment of business in
the software field with engaging itself in activities like paperless payroll, recycling bins in
office movement sensors for triggering electricity etc. that makes the organization move
towards sustainable development.
6

M1 UNDERSTANDING OF ENTREPRENEURSHIP IN PRIVATE AND PUBLIC
SECTOR
In the process of the start of a new venture, the entrepreneur expects the employees to
participate and engage with full dedication in leading the company towards progression.
In the private sector, new entrepreneurs have emerged with innovations and thus
successfully setting up their business and gain quick acceptance in the business world.
Ensoft is also a private company that has witnessed growth despite the obstacles and
legal restrictions that obstruct the growth of business (Gicheva and Link, 2013). The
organization has also gained competitive benefit over other software companies
developing software in the networking field by implementing best practices of
sustainable development that motivates the employees to work with dedication.
Therefore, entrepreneurship in the private sector has witnessed success and thus
motivates incipient entrepreneurs for developing new ideas and investing in new
business.
On the other hand, in the public sector establishment of business by entrepreneurs
need utilization of less resource and gain more profits. The government in other
countries and also the United Kingdom has launched incentive schemes in order to
assist in development of the social sector and social well-being initiatives. The
aforementioned schemes are introduced for solving the glitches and challenges
prevalent in the society and will encourage the entrepreneurs to emerge in public sector
(Mazzucato, 2015). Large enterprises now and then have to seek help from public
organizations for getting support in financial terms and for endorsement of some
business policies. It is very advantageous for the entrepreneurs to launch their business
in the public sector as with the help of government intervention the entrepreneurs,
considerable support is gained from the government activities that may sometime take a
long time in the case of private business.
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P2 DIFFERENCE AND SIMILARITY AMONG ENTREPRENEURSHIP
VENTURES
Type of
Entrepreneurship
venture
Relevance with
Ensoft
Similarities Differences
Serial Serial
entrepreneurship
type is followed in
Ensoft in order to
develop innovative
concepts and ideas
for offering the
individuals swift
business
opportunities
Entrepreneurs in
this business type
propose innovative
ideas for the
development of the
company and
migrate to other
business swiftly
(Plehn-Dujowich,
2010)
This style of
entrepreneurship
demotivated the
employees of the
company and also
lessens profit
Small business Ensoft started as a
small business
initially with fewer
employees and then
expanded thereafter
by expanding its
operations
In this type, fewer
resources are
invested with more
risk and the
company waits for
profit for a long
duration of time
The rise in
competition is a risk
and barrier to the
growth of small
business that poses
a threat of downfall
Social The employees are
concerned about
social causes and
contribute to them in
the form of raising
funds and engaged
in CSR activities
The engagement of
companies for
providing aid in
social causes such
as charity for
unprivileged and
visiting them
encourages the
Increased social
engagement by the
organizations may
deduce participation
of investors and
other shareholders
having a threat of
sharing their profit
8

employees to
sustain in the
company (Santos,
2012)
Intrapreneurship The organization ‘s
management has
complete ownership
nevertheless
employees take
huge risks in
interacting with
clients for
enhancing their
entrepreneurship
skills thus befitting
themselves and the
company (Parker,
2011)
The stakeholders of
the organizations
are engaged in
taking frequent risks
for the
organizational
benefit so as to
solve relevant
issues for
minimizing the
complexities
The conventional
business approach
fascinates more
stakeholders to
engage with the
business rather than
taking risks on a
regular basis
9

P3 DESCRIPTION OF IMPACT OF MICRO AND SMALL BUSINESS
In the private sector in the United Kingdom, small businesses contribute significantly to
the total business and economy. The statistics show that small business with 99.3% in
the UK has preceded medium and large business in terms of the number of businesses.
But the employment rate is still less (Storey, 2016).
In the year 2016, with the UK witnessing 99% of private sector business out of 5.5
billion businesses in all has majorly impacted the economy. The influence can be
analyzed from the fact that the small and micro businesses have easy access to the
financial assets and get the business advice on short notice. The introduction of smart
tax policies and modifications in legal structures for small and micro businesses provide
these firms to sustain well in the business environment. Many of the programs and
missions are launched providing help through investments and also offering business
support services (Burns, 2016). Therefore, the small and micro business projects
influence the economy at local and national level by offering employment as well as
financial benefits to the nation. Also, the local businesses can expand themselves by
exporting their products to other counties thus expanding at the global level.
10

M2 ASSESSMENT OF DISSIMILARITIES BETWEEN SMALL, MEDIUM AND
LARGE BUSINESS
The conception of large businesses contributing largely to the economy of a country has
been surpassed in the recent years. The latest developments in the small and micro
business sector have proved the fact that small business ventures can grow at a rapid
rate along with contributing largely to the growth of the economy of the nation (Sawang,
and Unsworth, 2011).
Figure 2: Statistics of small, medium and large business in the UK
Source: [http://en-production
assets.s3.amazonaws.com/2016/10/13/14/06/18/559/stats_1.png]
The private sector in business witnessed a considerable boost in the year 2016. The
small enterprise business rose to 99.3 % while the employment rates touching a
percentage of 48%. The annual turnover for the year 2016 from private small
businesses in the UK reached to 33% which is a significant figure to be taken into
account.
Small Medium Large
11