Entrepreneurship and Small Business Management: UK Venture Analysis

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on different types of entrepreneurial ventures, including small businesses, scalable start-ups, and social enterprises. It explores the similarities and differences between these ventures and examines the significant impact of micro and small businesses on the UK economy, highlighting their contribution to employment, GDP, and overall economic growth. The report also discusses the importance of small businesses and start-ups in fostering the social economy by raising living standards, promoting innovation, and creating job opportunities. Furthermore, it delves into the characteristics, traits, and skills of successful entrepreneurs, using the OCEAN model to depict entrepreneurial personality, and considers how an entrepreneur's background and experience can either hinder or foster their entrepreneurial journey. The report uses examples from the UK to illustrate the concepts discussed, providing a detailed overview of the entrepreneurial landscape and its influence on the nation's economy and social well-being. Desklib offers a platform for students to access similar solved assignments and study tools.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Types of entrepreneurial ventures....................................................................................1
P2. Similarities and differences between entrepreneurial ventures........................................3
P3. Micro and small businesses impact on the economy.......................................................4
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................7
P5. Characteristics, traits and skills of successful entrepreneurs...........................................8
P6. Aspects of entrepreneurial personality depict motivation..............................................10
P7: Background and Experience can hinder or foster Entrepreneurship..............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship defined as setting up of a business while undertaking financial risk in order
to create value and profitability from them. In simple terms it is an ability to develop, organise
and run a venture while undertaking uncertainties in order to gain prominent advantages.
Entrepreneur is an individual who develop the business venture by their own and follow their
self interest to serve society and take financial risk in order to achieve maximum success in quick
period of time (de Gortari and Santos, 2020). Entrepreneurs are self motivators those who follow
their passion in order to fulfil their goals as to bring something unique and innovative in market
segment and satisfy customers with high quality services and product in a innovative manner and
serve their need in effective way. Entrepreneur not only serves society but also provide
significant advantage to a nation by maximizing their overall GDP by offering number of
employment opportunity to individual and raising their living standards.
Present report includes formative discussion on different type of entrepreneurial ventures in
addition to their typologies. Along with this report include differences as well as similarities
among entrepreneurial venture alone with influence of small scale and medium scale enterprises
upon economy of a nation. Further report include diverse range of entrepreneurial personality
with the assistance of ocean model in order define it in descriptive way. This report also includes
explanation of two different successful entrepreneurs of United Kingdom in terms of their skill,
characteristics and traits. Lastly, in this report discussion upon the extent to which, experience
and background of entrepreneur hinder or foster entrepreneurship.
P1. Types of entrepreneurial ventures
Entrepreneurship refers to excitement to run a business with adopting new changes,
situations and risks. Most of the entrepreneurship is carried out with the motive of starting a new
business. There are various types of entrepreneurship which are discussed below-
Small business entrepreneurship- This type of entrepreneurship mostly renowned small
level and main motive is to live in the market with limited profit and sale. For example retailers,
bakery shops,cafes are considered to be small business entrepreneurs (Huertas González-Serrano,
Jones and Llanos-Contrera, 2020). In this type of business risk associated is quite low and
decision making is done in effective manner.
1

Scalable start-up business entrepreneurship- Scalable entrepreneurship business are
those in which independence invest in their start up business. They always look for new
opportunities and generate new ideas within the business sector. In such type of business,
decision making is dependent on venture capitalist or investors.
Larger scalable- Then comes the larger scalable entrepreneurship in which shares can be
traded and huge amount of capital invested in the business activities and operations. These types
of entrepreneurs are motivated towards innovation and invention. For example, Facebook,
Oracle, IBM and many more.
Social entrepreneurship- So these are considered to be those who you are the individual
for the start-up companies who run their business with motive of helping needy people.
Moreover, such types of organisations have limited number of employees and volunteers. In this,
risk associated with the business is moderate. For example- NHS service UK, Cancer Research
UK etc.
Typology of entrepreneurship
Serial entrepreneur- These are those types of entrepreneurs who you are always ready to
take the risk in the business. Moreover they focus on generating new ideas in the existing or new
business. For example- Apple, Elon Musk- Pay Pal, Space X. They always run for new ideas and
focus on achievements of the objectives.
Lifestyle ventures- Lifestyles dangers are those who run the business with motive of
acquiring maximum resources and larger share of market growth in the specific industry. For
example- blogging, poets, advisors etc. Their main aim is not to earn profit but to explore their
lives and enjoy the other stages of life.
Social economy- In this, it involves foundations, social organisations, democratic
governance, etc. This type of entrepreneurship always requires time and manpower who can
match up with their decision making.
Traits of successful entrepreneurs-
 A successful entrepreneur is always motivated in the work.
 There is full availability of knowledge, new innovations, ideas and thoughts
 A entrepreneur is always ready to take the risk with positive energy
 Moreover, a successful entrepreneur is flexible and accepts as well as adjusts
according to the new changes and trends.
2

 Also, use the capital and resources in most efficient manner.
 Always present to deal with problems and solve difficult issues
After a brief analysis of above matter, it is seen that it is important to have
appropriate knowledge of different typology and entrepreneurship so that decision-
making is done in effective way.
P2. Similarities and differences between entrepreneurial ventures.
Similarities between Small, Large, Scalable and Social Entrepreneurs
A number of entrepreneurial ventures function within the bounds of an economy. There are
multiple similarities as well as dissimilarities amidst such ventures (Dabić, Sahasranamam and
Glinka, 2020). It is important to conduct a study over these similarities as well as differences.
Thus, a discussion is presented upon the same in a detailed manner beneath:-
Similarities between Small, Large, Scalable and Social Entrepreneurs
 All these entrepreneurial ventures run with the motive of attaining development and
growth so as to enhance their scale of operations.
 All the ventures intend to maximise the amount of profits so that the growth prospect for
the entities can be significantly enhanced. (Wang, Gnan and Flamini, 2020)
 All of the entrepreneurial ventures capitalise upon innovation as the primary aspect to
gain the attention of large number of individuals and significantly attain competitive edge
at market place (Mazzarol and Reboud, 2020).
 All the ventures tend to cater to the needs and demands of market place and fulfil the
same to achieve growth.
Differencse between small, large, scalable and social entrepreneurs
Basis Small size Large size Social Scalable
Meaning These are the
ventures that
function at a small
scale.
These business
function at large
scale level by
emphasizing over
location as the
These ventures
function for the
society welfare at a
moderate level
(Canestrino,
These are the
ventures which
function at scale
level.
3

primary aspect. Magliocca and
Pawełek, 2020).
Objects These businesses
intend to attain
maximum profits
and thereby achieve
growth (Rosin,
Stubner and
Pinkwart, 2020).
The main intent of
this entrepreneurial
venture is to
facilitate expansion
of the business
operations.
These entities intend
to work for the
welfare and
development of
society and meeting
their needs.
These businesses
intend to increase
profit through
expansion of
operating
activities.
Capital These kind of
entrepreneurial
ventures require
relatively lower
amount in the form
of capital
investment for
carrying out
business practices.
These
entrepreneurial
ventures need
extensive amount of
investment as capital
to facilitate
expansion into
maximum
geographies.
These types of
ventures procure
funds from society as
they operate for
social welfare
(Cumming, 2020).
These ventures do
not require large
investment for
initiating the
business
operations.
P3. Micro and small businesses impact on the economy
Micro and small business enterprises have significant impact on a nation economy as they
provide significant opportunity for improvement and development for economy and individuals.
It has been evaluated that from past many years small and medium scale enterprises are rapidly
increasing in United Kingdom that also act as major source of revenue generation for country
government (Chadwick and Raver, 2020). In addition to this it has been evaluated that, these
enterprises provide different type of benefits to both individuals and economy in a great manner.
Mentioned below impact of small and medium scale enterprises in terms with United Kingdom is
being defined:
4

Figure 1: Comparison of SMEs and large businesses in UK
As per according to the above graph it has been evaluated of small and medium scale
enterprises prevailing in single division in the provinces of United Kingdom. It has been
evaluated that country is having estimated number of 4.5 million medium and small scale
enterprises that significantly represent 99% of entities of United Kingdom. These entities
generate number of employment opportunities for individual that automatically increases country
per capita income (Fasinu, 2020). This aids United Kingdom to maximize their GDP rate and
enhance their International brand image. Further it has been evaluated that these organisation is
offering 33% of total employment in addition with 22% of total turnover. These organisations
have excellent impact on country development and growth of individual.
5

Figure 2: Share of businesses in UK
According to the above mentioned diagram it has been evaluated that small and medium scale
enterprises perform their operation comparatively in large quantum than large and medium scale
enterprises in United Kingdom provinces (Sahasranamam and Nandakumar, 2020). It has been
evaluated that these enterprises combinedly generate 37% of overall turnover in addition with
offering 48% of employment to individuals in United Kingdom. These entities are impacting
upon domestic individuals in a significant manner by enhancing their living standards.
Figure 3: Business Type of Micro and Small Businesses in UK
6

Further it has been evaluated that micro and small scale organisations get further
categorized in different sectors such as non innovators (23.9%), non exporters (33.2%),
innovators (12.2%) and exporters (13.6%). Thus, according to the evaluation it has been
identified that small and medium scale enterprises have significant contribution in United
Kingdom economy and individual growth (Croce, 2020). These entities provide wide range of
benefits in number of ways that significantly enhances country economic opportunity growth rate
in a well define and effective manner.
P4. Explain the importance of small businesses and business start-ups to the growth of the social
economy
Medium and small scale Enterprises acts as essential aspect for economic growth and
further provides wide range of benefits through which a nation can maximize their overall boost
of growth and opportunities. In context with United Kingdom it has been evaluated that with the
presence of maximum number of SMEs this nation is increasing its growth rate in a constant
manner. By seeing this government of United Kingdom is offering different type of opportunities
to this industry in order to provide them support. IT has been identified that government offer
many infrastructure as well as technological facilities to SMEs through which they can conduct
their functions in more effective manner and can boost economy in a remarkable manner.
Mentioned below there are some essential growth in economy due to SMEs is being define
below:
Standard of living:
Rise in number of small and medium scale enterprises have direct impact upon individual
living standard. This has been determined that these entities are providing diverse range of
employment opportunities to individual that automatically enhances individual living standards
in an effective manner (Champenois, Lefebvre and Ronteau, 2020). This automatically increases
per capita income that facilitates increase in country economy in a well defined and effective
manner.
Innovation:
SMEs organisations operate their functions in effective manner and are mainly emphasize
upon satisfying customers and society with unique and innovative product and services. By
keeping this in mind entities operating their services is focus upon innovation as to influence
7

individual interest towards organisational offerings. This makes SMEs to create something new
in order to enhance quality of their product and services standards in order to attract customers in
an attractive manner. It has been identified that in UK there maximum number of SMEs that take
advantage of technology in order to develop their services and product as to influence customer
interest that automatically towards increasing United Kingdom economy at great extent.
Providing jobs:
One of the most important contributions of SMEs is that it engages in the process of
providing number of job opportunity to domestic individual by offering them desirable job.
Further it has been evaluated that SMEs in United Kingdom are offering job opportunity to
localised individuals (Thompson, Verduijn and Gartner, 2020). In addition to this it has been
evaluated that micro and small scale enterprises also hire semi skilled labour as well as those
individual who are having no specific skills. This effectively aid in increasing country per capita
income that facilitate economic growth and gross domestic production. In addition to this in has
been evaluated that SMEs also provide diverge range of training to their staff in order to make
them compatible with their job role. This increases individual skill and knowledge that enhances
overall profitability rate of company with job opportunity United Kingdom measures significant
increase in their economic performance.
P5. Characteristics, traits and skills of successful entrepreneurs
Entrepreneurship is defined as an individual who is having significant passion capability in
mode to convert an idea into a successful business venture by undertaking risk that are associated
with (Si, S, Wei and Cullen, 2020). It has been evaluated that an entrepreneur have specific form
of trait, characteristics and skills that further differentiate them from other individuals to perform
their operations. With the use of these elements they aim to offer unique services and products in
society. In relation to this, two famous entrepreneurs Richard Branson and JK Rowling of United
Kingdom are being considered. Mentioned below characteristics and trait of these is being
defined below:
Characteristics, skills and traits of Richard Branson
Characteristics
Belief: This is mainly known as essential characteristics that further state entrepreneur
confidence in terms with their ability competence and skill. It has been evaluated Richard
8

Branson is having higher self believe that acts are the most essential element that support him in
their entrepreneurial process to have access to rapid success.
Traits
Creativity: This is the most important traits of an entrepreneur that facilitate them
towards conducting their operations in effective manner. It has been identified that in terms with
Richard Branson trait of creativity and innovation is being possessed by this entrepreneur that
makes him highly creative. This entrepreneur always emphasize upon bringing something new,
unique and creative in specific industrial segment that lead him to attain success in limited time
period. With the help of an effective creativity approach he attracts mindset of consumers and
further influences them in an effective manner.
Skills
Learning Skills: In order to grow, learning skill plays a crucial role and identify that
every entrepreneur have continuous learning skill that enhances the capability and efficiency in a
continuous manner. It has been identified that entrepreneur which is having learning skill as their
skills improve business performance in effective manner and increases opportunity for future
growth (Mazzarol and Reboud, 2020). This is mainly come with experience that Richard
Branson has attended from family and other acquaintance. In addition to this it has been
evaluated that respective entrepreneur also learn different things from past experiences and
further use those experiences in their business practices as to attain success.
Characteristics, skills and traits of JK Rowling
Characteristics
Leadership: This is one of the most effective an essential characteristics that an
individual is having that facilitate their capability to influence other individual in a team
individually or group to perform their task in effective manner. In context with JK Rowling this
has been evaluated that this entrepreneur is having efficient leadership characteristics through
which she provide supportive leadership to team members in order to maximize their
productivity, this facilitate individual to contribute their contribution in efficient way as to attain
success in time effective.
9

Traits
Experimental: It is an effective trait that lead entrepreneur to continuously engage in the
process of bringing something new and unique in society by experimenting with things. In this
with the assistance of this trait JK Rowling one of the famous entrepreneur experiment with her
new book series Harry Potter had made herself recognised her presence in all around the world
by facilitating interest of individuals of every age group. In addition to this it has been evaluated
the Harry Potter is one of the most remarkable contribution of JK Rowling that aid in
popularising her image in global scale.
Skills
Focused: This has been evaluated that concentration is one of the most effective element
for an entrepreneur that offer support them in conducting their task and work in effective manner
by contributing their complete efforts (Zin and Ibrahim, 2020). With the help of focused
approach a person can accomplish their objective with great efficiency. In terms with JK
Rowling this has been evaluated that this entrepreneur is having skill of highly focus nature
towards her work. This is one of the ultimate influencing factors that increase efficiency of her
performance. It further lead her in executing tasks in a hard work in a successful manner in time
effective period and influence interest of large number of individuals around the globe.
P6. Aspects of entrepreneurial personality depict motivation
Entrepreneur is defined as an individual who initiate a business venture while undertaking
different type of risk elements into consideration with an aim to offer unique and innovative to
society in a well defined and effective manner (Lazzarotti, Gjergji and Visconti, 2020). In
context to this is it has been evaluated that and entrepreneurial personality is a combination of
wide range of competency, skills and knowledge that facilitate them to perform their objectives
in effective way. It has been identified that when an entrepreneur is possessing intense
motivation and sound knowledge this enhances their self believe and lead them to conduct their
activities and accomplish their objectives in efficient manner. Along with this it has been
10