RQF Unit 9: Entrepreneurship and Small Business Management Report

This report provides a detailed analysis of entrepreneurship and small business management, focusing on different entrepreneurial ventures and their relation to the typology of entrepreneurship. It differentiates between entrepreneurs and intrapreneurs, examines various entrepreneurial activities, and explores ventures like growth firms, lifestyle firms, and social enterprises. The report also highlights the similarities and differences between private and public sector organizations, demonstrating an understanding of entrepreneurship in public and corporate sectors. It critically examines the scope, development, and growth of entrepreneurship, emphasizing the impact of micro and small businesses on the economy using relevant data and statistics, particularly within the UK context. The significance of small businesses and business start-ups to the growth of the social economy is also discussed, underlining their integral role in sectors like retail, manufacturing, and construction. This document is a valuable resource for students seeking to understand the complexities of entrepreneurship and its impact on economic development. Desklib provides many such solved assignments.

Entrepreneurship and
Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 (LO 1 & LO 2)..................................................................................................................1
P1. Different entrepreneurial ventures and their relation with the typology of entrepreneurship
.....................................................................................................................................................1
P2. Similarities and differences between entrepreneurial ventures.............................................2
M1. Demonstrating an understanding of entrepreneurship in public and corporate sectors.......3
D1. Critical examination of scope, development and growth of entrepreneurship and
entrepreneurial ventures...............................................................................................................4
P3. The way micro and small businesses impact on economy using relevant data and statistics
.....................................................................................................................................................5
P4. Significance of small businesses and business start-ups to the growth of social economy. .6
M2. Differences that small, medium and large businesses make to the economy......................7
D2. Impact of small businesses on different levels of economy and in international context....7
TASK 2 (LO 3 & LO 4)..................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is basically a process in which an entrepreneur identifies new
opportunities prevailing in the market and convert the same in products and services in a way
that will satisfy the needs of target audience to utmost level possible. Currently, small businesses
are at boom in which an entrepreneur has to face a lot of risks to reach at success
(Entrepreneurship and Small Business Management, 2019). In the present report, there will be
discussion on the range of venture types that might be considered entrepreneurial. Also, study
will be made on the impact of small businesses on economy. The key aspects of an
entrepreneurial mind-set will be assessed as well. Along with that, there will be focus on
different environments that foster or hinder entrepreneurship.
TASK 1 (LO 1 & LO 2)
P1. Different entrepreneurial ventures and their relation with the typology of entrepreneurship
Entrepreneurship – It can be understood as a process which helps in identifying the new
opportunities prevailing in market and converting the same into viable products and services.
However, this process needs to go through many attempts of entrepreneur to finally gain success
and growth along with profit.
Difference between entrepreneurs and intrapreneurs – An entrepreneur is the one
who takes the risks and responsibilities of business which start from identifying the opportunities
that exist in market and then providing the products and services accordingly (Julien, 2018). On
the other hand, intrapreneur is one who can be referred as a hired employee that is responsible
for bringing innovation in business for which he takes specific remuneration from the firm.
Different activities linked to entrepreneurship
 Prediction – This is one of the main activity performed by entrepreneurs i.e. to forecast
the change in demand and supply of goods by identifying potential opportunities, risks
and challenges in market.
 Acting on changes in market – Another activity performed by him is to give response to
the changes taking place in market in such a way that positive results can be gained by
business through same (Torrès and Thurik, 2018).
Different entrepreneurial ventures undertaken by entrepreneurs
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 Growth and lifestyle firms – Growth firms refer to those entrepreneurial ventures which
possess high potential to grow in the future by the ways like development in technology.
For example: Microsoft and Amazon. On the contrary, lifestyle firm is one which
actually does not have very high growth potential in future but makes efforts to fund the
lifestyle of its entrepreneur. For example: tour guiding associations.
 Entrepreneurial ventures on the basis of sector – Entrepreneurial firms that operate in
private sector are basically run by individuals or private organisations with an aim to earn
higher profits (Marom and Lussier, 2018). Public entrepreneurship on the other hand is
the combination of both private and public resources as well as capabilities that is run
with an objective to do social welfare with innovation and creativity. In this, there is high
involvement of government.
 Entrepreneurial ventures on the basis of size – Based on the size of firms, there are
three types of entrepreneurial ventures i.e. micro, small or medium sized organisations.
All these firms have their own importance for the economy with different characteristics.
Ownership of micro organisations is with sole proprietors and they start business with a
very small amount of capital (Laukkanen and Tornikoski, 2018). The level of
employment in small and medium sized organisations is more in comparison to micro
firms as well as their ownership is shared by more than one proprietor. In terms of labour,
fund and newly advanced technologies, small and medium sized organisations have better
access as compared with micro firms.
 Social enterprise – There is one more entrepreneurial venture i.e. social enterprise,
purpose of which sometimes is to maximise the profits of business with ignoring welfare
of society. However, company undertakes CSR activities but, these are not sufficient
enough to bring development in the society. These entrepreneurial ventures highly
contribute in the economic condition of nation (Spence and et.al., 2018).
P2. Similarities and differences between entrepreneurial ventures
There are some similarities and differences between different entrepreneurial ventures.
To understand the same, private and public sector organisations are taken into consideration
which are discussed as below:
Similarities Differences
 Both the types of organisations run  In private firms, motive is just to
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with an aim to earn profits.
 Government intervention is there in
both the types of ventures.
 Both the types of entrepreneurial
ventures give due emphasis on its
human resource management to run
business in a smooth way.
 There is increasing pace of change in
both the types of entrepreneurial
ventures to sustain in the market for
longer span of time (5 Key
Differences between Organizations in
the Public and Private Sectors, 2019).
increase profits but in public
entrepreneurial ventures, welfare and
development of society is also the
concern (5 Key Differences between
Organizations in the Public and
Private Sectors, 2019).
 In public sector firms, interference of
government is more in comparison to
private entrepreneurial ventures.
 Leadership in both these ventures is
different as firms in private sector
operate in a more flexible
environment than that of private firms.
M1. Demonstrating an understanding of entrepreneurship in public and corporate sectors
Many entrepreneurial ventures are there that come under private, public and social
enterprises. Some of the examples are:
 Private sector organisations – Apple, Virgin Atlantic and Tesla
 Public sector organisations – Microsoft and Amazon
 Social enterprise – Ashton Community Trust and The Create Foundation CIC
Basis Similarities Differences
Objectives On the basis of objectives,
there are growth and lifestyle
firms which have common
objective i.e. to gain growth in
the future (Castrogiovanni,
2018).
However, in comparison
to growth firms, lifestyle
firms do not have very
high growth perspective
as their main aim is to
fund the lifestyle of
owner.
Structure Based on the structure of
entrepreneurial ventures, there
are private and public sector
But, for public sector
organisations, more
preference is given to the
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organisations which have
common aim i.e. to maximise
their profits.
social development of
society rather than earning
profits.
Size In accordance with the size of
businesses, there are micro,
small and medium sized
organisations (Trehan, Higgins
and Jones, 2018). Common
similarity among all is that they
all have specific ownership
with use of limited fund,
technology and labour.
In small and medium
sized organisations,
ownership is more than
one which is single in
micro firms. Also, access
of fund, technology and
labour in SMEs is better
than that of micro
organisations.
D1. Critical examination of scope, development and growth of entrepreneurship and
entrepreneurial ventures
With regard to scope, development and growth, entrepreneurship of each type of
organisation differs. Depending on the structure, size and objectives of businesses, their scope
and growth are based and development takes place accordingly. It can be justified like scope and
growth of large organisations is very high as compared with small and medium sized enterprises
as they are having more advanced technologies along with large number of workforce and other
resources like funds (Bruton, Zahra and Cai, 2018). Thus, development of these firms is also
high in comparison to others as they earn huge profit and revenue which is then invested in the
improvement of business processes to bring innovation and creativity.
However, scope, development and growth of SMEs on the other hand is less due to
having less number of resources. Thus, it can be critically assessed that entrepreneurship gets
affected with the size, objective and structure of business as if it is a private sector enterprise,
main emphasis of owner will be on bringing innovation in market place (Soundararajan, Jamali
and Spence, 2018). While, on the other hand, in public sector firms, consideration is given to the
welfare of society and adding to national income along with creating social change and
community development.
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P3. The way micro and small businesses impact on economy using relevant data and statistics
In the present scenario, micro and small businesses put a direct and huge impact on the
economic condition of a nation. These businesses mainly have high creativity and power of
innovation which bring great ideas to attract and retain customers with contributing to national
economy. There are different forms of small businesses operating in the UK based on rules and
regulations as well as factors like environment and the culture in which firms operate. These are
mainly operating by the way of sole proprietorship (Hornsby and et.al., 2018). However, in the
UK and many other nations, the most common form of micro and small businesses are non-
employee sole proprietorship. In this nation, approximately 4.3 million businesses are being run
in this form and around 1.3 million are those are operating as employing businesses.
Figure 1: Percentage of Total Businesses (Units) Based On Employees
(Source: Small Businesses, 2019)
Apart from that, there are almost 1.9 million businesses which are being run in the UK as
trading companies while, 414000 businesses are there which are run in the form of ordinary
partnership. Further, number of employing businesses are approximately 99.3% which come
under the private sector of UK which are running small businesses where around 99.9% are
SMEs. In United Kingdom, number of SMEs start-ups running are around 5.68 million. Along
with that, number of employments provided as of 2017 is almost 16.1 million people that are
working at national, regional and local level. In high income countries, SMEs provide around
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65% of total employment. Whereas, it is more than 70% and 95% of total employment in low
and middle income nations respectively (Business population estimates for the UK and regions,
2016).
Figure 2: Percentage of Businesses by Employees
(Source: Small Businesses, 2019)
In the UK, as of 2016 and 2017, total turnover of SMEs was estimated at £1.8 and £1.9
trillion respectively. In accordance with the data of 2017, 2.6 million SMEs on an average were
registered under VAT and PAYE. However, more than 3 million businesses i.e. 55% were un-
registered along with 14% and 53% registered businesses in the form of sole proprietorships and
partnerships respectively. It can be seen that from the year 2008 (period of recession) to 2017,
the total growth in the economy of UK in terms of number of SMEs is 2.2 million (Business
population estimates for the UK and regions 2016, 2016).
P4. Significance of small businesses and business start-ups to the growth of social economy
Under small businesses and business start-ups, there are main street businesses which are
playing a significant role in contributing to the economy of nation by serving local customers as
well as the firms operating locally as they are providing raw material to them. Small businesses
play an integral role in the UK economy where the most important sectors are retail,
manufacturing, construction, wholesale and motor vehicle repairing (Kuratko and Morris, 2018).
However, in every industry, at least 99.5% of total population of businesses comprises of small
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and medium sized enterprises (Business population estimates for the UK and regions, 2016).
Approximately 14% established businesses come under retail, wholesale and repairing industry.
12% and 10% SME enterprises are under construction and manufacturing industry respectively.
In the growth of social economy, SMEs are having high significance and involvement. Here,
social economy refers to basically types of organisations like associations, cooperatives,
foundations, etc. The economic, environmental and social issues are solved by SMEs to a high
extent where those established as not-for-profit play a crucial role in making the society
prosperous, sustainable as well as inclusive (Farhat and et.al., 2018). It can be said that SMEs are
leading the nation to get half of the new jobs in economy which is increasing the standard of
living of people.
M2. Differences that small, medium and large businesses make to the economy
The small, medium and large organisations make a huge difference to economy as these
firms create jobs, foster entrepreneurship, helps in alleviating the poverty as well as in increasing
the growth rate. Along with that, these organisations bridge the gulf of income inequity with
offering a strong base to industries of nation. As of 2016, total employment created by SMEs is
15.7 million i.e. 60% of the total. Employment generated by small businesses is 12.5 million and
that of large businesses is 10.5 million. Therefore, overall, it can be said that these businesses
prove to be highly important to form an economy healthy, strong and balanced with gaining
sustainability (Julien, 2018). However, it is not so for all countries as where some nations
experience better growth, others might face an obstacle to develop the start-ups. For the same,
cultural differences is the main factor which influences these firms in a country. Apart from that,
there are some other factors too like advanced techniques, bringing innovation and creativity,
government support at both local and national level as well as access to fund, labour and
technology (Torrès and Thurik, 2018). These factors play a crucial role in developing small,
medium and large organisations and so, nations which are flexible enough gain higher growth
from these enterprises.
D2. Impact of small businesses on different levels of economy and in international context
Small businesses put direct impact on the growth of national, regional and local economy
and so as at an international level. As per the data of 2016, 4.8 million small businesses that
operate under private sector are in England. In Scotland, there are around 325, 000 small
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businesses and in Wales and Northern Ireland, these are approximately 222, 000 and 124, 000
respectively. Further, 1 million are there in London and in South East of England, there are 900,
000 private sector businesses. Apart from that, North East of England is having 147, 000
businesses that also operate in the private sector of UK (Business population estimates for the
UK and regions 2016, 2016). Therefore, it can be said that at different levels of economy, small
businesses put a huge impact as they generate high rate of employment, profit as well as revenue
that ultimately lead to the growth of country by generating employment. As maximum SMEs are
globalised and having their operations in one nation, so benefits of same are gained by other
countries too which justifies that small businesses impact at the international level also (Marom
and Lussier, 2018).
TASK 2 (LO 3 & LO 4)
Covered in PowerPoint Presentation (PPT)
CONCLUSION
From the above report, it can be concluded that entrepreneurship is a systematic process
by which significant opportunities in market are identified and grabbed to offer the most viable
products and services. It has been assessed that there are different types of entrepreneurial
organisations based on their size, structure, number of employees, total turnover and capital
invested which all make high contribution in the economy of UK, especially the micro, small and
medium sized businesses.
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REFERENCES
Books and Journals
Bruton, G. D., Zahra, S. A. and Cai, L., 2018. Examining entrepreneurship through indigenous
lenses.
Castrogiovanni, G. J., 2018. Guest editor’s introduction: so what is entrepreneurship
research?. International Entrepreneurship and Management Journal. pp.1-3.
Farhat, J. and et.al., 2018. New directions in entrepreneurship research with the Kauffman Firm
Survey. Small Business Economics. 50(3). pp.521-532.
Hornsby, J. S. and et.al., 2018. Entrepreneurship everywhere: Across campus, across
communities, and across Borders. Journal of Small Business Management. 56(1). pp.4-
10.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Laukkanen, M. and Tornikoski, E. T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research. 24(2). pp.499-520.
Marom, S. and Lussier, R. N., 2018. Developing a Small Business Management Concentration
within a Business Degree. Small Business Institute Journal. 13(2). pp.15-30.
Soundararajan, V., Jamali, D. and Spence, L. J., 2018. Small business social responsibility: A
critical multilevel review, synthesis and research agenda. International Journal of
Management Reviews. 20(4). pp.934-956.
Spence, L. J. and et.al., 2018. Research handbook on small business social responsibility: global
perspectives. Edward Elgar Publishing.
Torrès, O. and Thurik, R., 2018. Small business owners and health. Small Business Economics.
pp.1-11.
Trehan, K., Higgins, D. and Jones, O., 2018. Engaged scholarship: Questioning relevance and
impact in contemporary entrepreneurship/small and medium-sized enterprise
research. International Small Business Journal. 36(4). pp.363-367.
Online
5 Key Differences between Organizations in the Public and Private Sectors. 2019. [Online].
Available through: <https://onlinempadegree.usfca.edu/news-resources/news/5-key-
differences-between-organizations-in-the-public-and-private-sectors/>.
Business population estimates for the UK and regions 2016. 2016. [PDF]. Available through:
<https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/559219/
bpe_2016_statistical_release.pdf>.
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Entrepreneurship and Small Business Management. 2019. [Online]. Available through:
<https://business.illinoisstate.edu/management/sequences/entrepreneurship.shtml>.
Small Businesses. 2019. [Online]. Available through: <http://www.research-lincs.org.uk/lep-
evidence-smallbusiness.aspx>.
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