Analysis of Entrepreneurship and Small Business Management in the UK

This report delves into the multifaceted world of entrepreneurship and small business management, examining various types of entrepreneurial ventures, including micro, small, medium, and large enterprises, and their defining characteristics. It explores the similarities and differences between these ventures, highlighting the role of risk, innovation, and resource management. The report further analyzes the impact of micro and small businesses on the UK economy, emphasizing their contribution to employment, industry development, and GDP. It also elucidates the importance of small businesses in fostering the growth of the social economy, detailing the contributions of social enterprises and their role in creating jobs and promoting community development. Additionally, the report contrasts successful entrepreneurs with managers, exploring how entrepreneurial personality traits influence motivation and mindset. It also considers how experience can both hinder and foster entrepreneurial endeavors, providing a comprehensive overview of the entrepreneurial landscape in the UK.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION .......................................................................................................................3
L O 1 and LO 2.............................................................................................................................3
P1) Various types of entrepreneurial ventures.........................................................................4
P3) Impact of micro and small business on..............................................................................6
Economy...................................................................................................................................6
P2) Similarities and differences between.................................................................................4
entrepreneurial ventures...........................................................................................................4
P4) Importance of small business in growth of........................................................................7
social economy. .......................................................................................................................7
L O 3.............................................................................................................................................9
P5) How successful entrepreneurs are different from managers..............................................9
P6) How personality of entrepreneur reflects their motivation and mindset.........................11
L O 4...........................................................................................................................................12
P7) How experience hinder or foster entrepreneurship. ........................................................12
CONCLUSION ..........................................................................................................................14
REFERENCES............................................................................................................................15

INTRODUCTION
Entrepreneurship refers to the process of developing, launching a new start up which is
also known as Entrepreneurship. It can also be defined as the willingness of the person to
develop and manage a new venture by taking huge risk. So that, business will generate profits.
Entrepreneur are the individuals that starts a new venture with the aim of earning profits. Small
Business are the business that employs few number of employees and also generate low
revenue as compared to other large size business (Fayolle, A. and Gailly, 2015). There are
various forms of small business such as partnership, private companies or sole proprietorship
etc.
The Report will outline different types of ventures of entrepreneurs , similarities and various
difference between ventures of entrepreneurs, the impact of small business on economy. The
Report will also describe the importance of small business for growth of social economy,
features of entrepreneurs that differentiate them from managers, the personality of
entrepreneurs that reflect their mindset and experience of entrepreneurs that hinder or promote
entrepreneurship.
ACTIVITY 1
L O 1 and LO 2
Booklet

P1) Various types of entrepreneurial ventures.
Entrepreneurial ventures refers to the new
business started by the entrepreneur for
developing
new product or services for the customers
with the aim of earning profits. There are
various types of entrepreneurial ventures such
as -
Micro – Micro business is a type of
entrepreneurial venture that requires less
amount of funds for starting the business and
it employees less number of workers such as
less than 10 employees. For example -
Bakery.
Small – Small enterprise is another type of
entrepreneurial venture which is operated by
the entrepreneur at a small scale. Small
business requires few number of employees
and it generates low amount of revenue per
year. For example – Grocery stores.
Medium – Medium size enterprises are
operated by the entrepreneur at lower scale as
compared
to large size enterprises and operated at scale
higher than small enterprises. It employs more
than 100 workers but less than 1000
employees. For example – Consultancy firms.
Large – These enterprises are operated by the
entrepreneur at large scale as compared to
other types of entrepreneurial ventures. It
requires large amount of funds for starting the
P2) Similarities and differences between
entrepreneurial ventures.
Entrepreneurial ventures refers to the venture
started by the entrepreneur such as small
business
with the aim of earning profits. There are
various types of entrepreneurial ventures that
may be started by either an individual or by a
group of individuals. Most of the ventures are
started when entrepreneur perceives the
demand of the products or services in the
market. There are various similarities between
different types of entrepreneurial ventures.
These are as follows -
 All the types of ventures whether it is
small, medium or large size enterprise
involves some element of risk that is to
be borne by the entrepreneur.
 All the types of business ventures
requires the generation of a new idea
for starting a new venture.
 Micro, Small, Medium or large size
enterprise all requires more or less
number of employees for performing
the various functions of the
organization.
 All types of entrepreneurial ventures
requires investment of funds for
starting a new business.
Difference between entrepreneurial ventures -

production or distribution of the goods or
services. It requires more than 1000
employees for performing various functions.
For example – Retail companies such as
Arcadia Group (Gielnik, M.M., Zacher, H.
and Schmitt, 2017).
Typology – There are different types of
typologies of entrepreneurship according to
the behaviour of entrepreneurs. These are as
follows -
Social – It refers to the start ups that are
started by the entrepreneurs for offering
solutions for resolving different types of
problems that are related with society,
environment or culture etc. They may be
profit making, non profit making or hybrid
organization. For example – Small scale
voluntary organization is a type of social
entrepreneurship because it aims to help
people by alleviation of poverty etc.
Scalable – In case of scalable
entrepreneurship, entrepreneur starts the
venture at small scale and make efforts for
taking the business at a higher scale. These
entrepreneurs attracts funds from venture
capitalists and hire skilled workers for
increasing the scale of the venture.
Serial – In case of serial entrepreneurship, the
entrepreneur continuously make efforts for
generating new ideas so that, the entrepreneur
can start a new business. As compared to
Micro -
 In case of Micro enterprises,
entrepreneur have to employ less than
10 employees for performing various
types of functions and activities of the
business.
 Example – AM Bid Services is one of
the example of Micro enterprise in
UK.
Small -
 In case of Small enterprises, the
entrepreneur can employ maximum
250 number of workers in the business
for performing different functions.
 Example – Brightstar Financial
Limited is one of the good example of
small business in UK. It provides
solutions related with finance to
customers.
Medium -
 In case of Medium size enterprises, the
entrepreneur can employ more than
250 but maximum 1000 workers.
 Example – John Good Shipping is one
of the example of medium enterprise
in UK. It is a logistics firm.
Large -
 In case of large enterprises, more than
1000 employees are required for
operating the business.
 Example – Arcadia Group is the best

typical entrepreneurs, serial entrepreneur
monitor the business on regular basis and
plays an important role in managing the
functions of the enterprise. Serial
entrepreneurs are having unique features ad
traits such as self confidence, passion etc. that
helps them to become successful in long term.
P3) Impact of micro and small business on
Economy.
The number of micro and small business in
UK are day by day increasing. From year 215,
the total number of small and medium
enterprises in UK has been increased by
97000 and currently it is 5.5 million (Doern,
2016). 60 % of these enterprises are are
acquiring funds through external funding. The
importance of small and medium enterprises
in economic development of UK cannot be
underestimated.
Employment -
Micro and Small companies plays a major
role in the growth of economy. Total number
of employment provided by SME in UK is
approx 15.7 million in year 2017 (Burns,
2016). 60 % of the total employment in
private sector of UK are provided by small
companies. In year 2018, Micro Small and
Medium size enterprises has provided
employment opportunities to more than £ 2.0
trillion.
example of Large enterprise in UK. It
deals in clothing items etc.
Difference between Serial entrepreneurship,
Manager and Intrapreneurship -
Serial entrepreneurship -
 Serial entrepreneur is an entrepreneur
that continuously generates new ideas
for starting the new business and also
plays a major role in day to day
functions of the enterprise.
 Serial entrepreneurs assumes all the
types of risks that are related with the
venture.
 The main objective behind serial
entrepreneurship is to develop new
goods or services.
Manager -
 Manager is the individual that is
responsible for performing various
managerial functions of the business.
 All the types of risks are borne by the
organization.
 The main objective of Manager is to
help the company in performing
various functions smoothly.
Intrapreneurship -
 Intrapreneurs help the business in
developing and promoting the
products or services of the enterprise
(Cucculelli, M. and Bettinelli, 2015).
 Intrapreneurs takes moderate level of

Industry -
Micro and small business has also contributed
to the development of the communities in UK,
they also helps in promoting economic health
of the country.
Contribution to economy -
Micro, small and medium size business has
played a major role in making huge
contribution to the Gross Domestic Product of
UK. In London there are largest number of
small and medium size enterprises and in year
2015, the total contribution of SME to UK
economy was £ 149 billion. In year, 2018, the
total contribution of small and medium size
enterprises is more than 2.8 trillion. The
importance of micro and small enterprises for
the economy will increase more in coming
future and according to Chief Executive
Officer of Hampshire Trust Bank it is
expected that, total contribution of micro,
small and medium size business to the
economy of UK will increase up-to 27% till
year 2020 (Bradley, S.W. and Klein, 2016).
Micro and Small business helps in the growth
of community. Entrepreneurs contributes to
connect the resources of the country in
different ways. They develops various
strategies for resolving the issues related with
economy and society. In this way,
entrepreneurs helps to improve the quality of
life of the peoples of the region in which these
risks related with the business.
 The main objective of Intrapreneurs is
to improve the sustainability of the
business.
P4) Importance of small business in growth of
social economy.
Social Economy –
Social economy is developed by various types
of enterprises such as associations, social
enterprises, cooperatives, employee owned
organizations, mutual societies, etc. that are
sharing common values and characteristics.
Under this, the profits of the organization is
distributed to the partners on the basis of their
service, work in relation with the social
objectives of the enterprise. Social economy
describes the relationship between economy
and behaviour of customers. Firms that are
having aim of promoting change in the
society, are important for development of
economy of UK.
From macro economic point of view, majority
of the social enterprises are charitable
organization plays a major role in creating
jobs as compared to other business. Small and
medium size businesses helps in growth and
development of social economy of UK. In
year 2016, approx 135 social enterprises has
generated revenue of more than £450 million
(Ateljevic, J. and Page, S.J. eds., 2017). Social

enterprises are located. economy in UK is showing growth because
small enterprises are performing the activities
with the help of best tools that results in
satisfying the demands of social change as
well as protection of the environment. Small
business has shown growth in different areas
such as it helps in creating job opportunities,
improving the skills of labour, development
and diversification of local economy. Social
enterprises in UK has also contributed in
transformation of various institutions as well
as transformation of the economy. In UK,
there are few small businesses that are using
alternative models for governance such as
businesses that are owned by employees,
cooperatives etc. Small business are playing a
major role in providing job opportunities and
it has contributed more than 5.6% in overall
employment of the country. Small and
medium size businesses are working with
other companies for providing employment to
the unemployed youths in UK. Social
enterprises are developing in the regions
where innovation happens. Small business are
promoting the sustainable development and
social improvement of the country (Albort-
Morant, G. and Ribeiro-Soriano, 2016).

ACTIVITY 2
L O 3
P5) How successful entrepreneurs are different from managers.
Basis Bill Gates Henry Ford
Traits  Passionate – one of the
biggest traits of Bill
Gates is that he is very
passionate as he put a
love into everything he
did for the company.
His passionate attitude
make him unique from
other.
 Focus – the second trait
of Bill Gates is that he
was very focus towards
his work and put his
hundred percent in
order to complete the
goals and objective of
the company.
 Self confident – This
traits makes Henry
Ford different from
other manager as he has
self confidence in what
ever he does. As by this
traits it help to achieve
the goals and objective
of the company.
 The second trait is that
its self disciplined and
manages the work on
time so it helps to work
in the effective and
efficient manner.
Motivational Driver  Bill Gates motivational
driver was rewards and
recognition for top
performance. As he
believe that rewards
plays a major role in
motivating an
 Henry Ford
motivational drivers is
that failure as he
believe that failure help
the individual to come
up and put the hundred
percent in order to

individual and also it
helps to increase the
productivity and
profitability of the
company.
 The second
motivational driver of
Bill Gates is that he
always ask for the
feedback and believe in
giving feedback to the
employees in order to
improve the work and
helps the organisation
to attainment of desired
goals.
achieve the target . As
it failure plays an
important role in the
life of the individual as
it helps to put extra
efforts .
 The second motivation
driver is achievement
as this plays an
important role as every
individual wants
achievement and it is
very important to get
appreciation in order to
work even more.
Skills  One of the skills that
make him different
from the other manager
is Bill Gates effective
communication skills
which helps him in
every aspects. As he
has the ability to attract
many people because
of his effective
communication and
convey the target
properly as in effective
manner to the
 One of the unique skills
of Henry Ford which
make him different
from other is that he
value human capital as
he believe that to
respect the employees
and involve in their
success will make the
employees ti feel an
important part of the
organisation and hence
productivity level

employees .
 The second skills is
that it creative mind set
and innovative ideas as
he always come up
with the innovative
ideas in the company
which make him
different from other
manager (Volery, T.
and Mazzarol, 2015).
increases.
 The second skills was
he believed in equality
as he offer employment
to women , men and
disabled individual and
treat them equally .
P6) How personality of entrepreneur reflects their motivation and mindset.
Entrepreneurial Mindset - it is very important to have entrepreneurial mindset which
help the individual to make themselves unique from other. As by having entrepreneurial
mindset it will help the individual to think in the different perspective and think in the certain
manner (Venkataraman, 2019). As by having the entrepreneurial mindset it will help the
individual to take the risk and handle the situation in the positive manner. And help to take
various challenges and helps to improve the skills set and try to improve them again and again.
Entrepreneurial mindset helps to develop confidence in one personality and make certain
decision in the systematic manner. It also helps to improve the leadership style and helps to
interact with the worker in effective manner. It helps to encourages the innovative ideas which
help to achieve the goals and objective. So it is very important to have entrepreneurial mindset.
Entrepreneur personality
Risk taking - the first and foremost personality of entrepreneur is that its risk taking
attitude. It is very important for the entrepreneur to take risk as it stated that higher the risk
then higher will be the return. As if the individual is afraid to take the risk then he will never
get anything. As uncertainty never stops entrepreneurial in doing what he wants to do.
Creativity – the second personality is that creativity as it is believe that entrepreneur
don't think in the same manner as everyone else. As they see the world with different
perceptive. As entrepreneur brings best and creative ideas with make unique from other. As

they always comes with new ventures and start up which helps to bring change in the society
and helps to develop the standard of living.
Motivation – the third personality is that entrepreneur are very dedicated towards the
work and always motivated to do the work. And also motivate others by different incentive in
order to complete the goals and objective of the business. And also always inspire other to
dream more , lean more and also become more. They have the quality to effectively
communicate their dreams and inspire other to join them.
Passion - the other personality of entrepreneur is that they are very passionate towards
the work as they put their heart and sole in what they do. And also they do not give up on the
challenges. And always the love the work. By this it will help to become a successful person
helps to achieve the goals and objective of the business.
Self confidence – The other personality that reflects entrepreneur is that it has self
confidence as whatever he do he has the confidence and make the other one feel more
confident in their new projects. As they believe that by having confidence then it will help
them to complete the goals and objective of the company (Zahra, S.A. and Wright, 2016).
Focus – Entrepreneurs are generally very focus towards the wok as they their heart out
in the work and they do with extra love and care.
Self discipline - The last personality of entrepreneurial is that it has self disciplinary
attitude as he manages all the work on time which helps him to do work more effectively and
efficiently.
L O 4
P7) How experience hinder or foster entrepreneurship.
Background of Bill Gates
Bill Gates was born on October 1955 , is an American business magnate investor ,
author , entrepreneur and humanist. He is known as principal founder of Microsoft
Corporation. His father name is William H. Gates and mother name is Mary Maxwell Gates .
His father was a prominent lawyer and his mother served on the board of director for First
Interstate BancSystem and United Way (Staniewski, 2016). As Gates has one older sister
Kristi as well as one younger sister Libby. The family lived in the Sand Point area of Seattle.

Gates family encourage competition. At the age of 13 , he enrolled in the Lakeside school
wrote his first software program as he took interest in programming the GE system in BASIC.
As he wrote his first computer program on this machine an implementation of tic-tac-toe that
allowed user to play games against the computer. As he was very educated and good in studies
as he was a National Merit Scholar when he graduated from the Lakeside School 1973
(Schaper, M. ed., 2016). His background helps to foster its career as both his parents was
belong to a education background and also he was good in studies and from childhood he
always comes up the with the innovative ideas and creative skills. It also causes a positive
impact as it develop the attitude to take the risk and always show dedication and passionate
towards the work. On the other hand background causes negative impact as it hinders the
growth as in his childhood his financial condition was not stable as it does not proceed his
further studies.
Background of Henry Ford
Henry Ford was born in 30 July 1863 was an American captain of industry and
business. He is one of the most successful entrepreneur with his unique entrepreneurial mindset
and different characteristic which makes him different from others. Hid father was William
Ford and born in Country Cork Ireland. His father used to gave him pocket money. His mother
died in 1876. and his father always took him to the family farm for farm work. In 1879 he left
home as an apprentice machinist in Detroit (Scarborough, 2016). Despite all the struggle which
was fave by Henry Ford he emerge as a leader with entrepreneurial mindset and innovative
ideas and good knowledge of things. His background teaches him to never depend upon any
one for anything. Hence it will help him to achieve the goals of life. By the help of challenging
life he was ready to take challenges and face them in positive manner. Further his background
hinders its growth by not having good financial position so it hinders in the process of further
studies which help Henry Ford in many situation.

CONCLUSION
The above case study summing up on the entrepreneurial and small business . As
entrepreneur is the person who carry the entrepreneurial venture. Small and medium business
contribute to a large extent in the contribution to the economy and creating job for the local
people. This report has concluded the different types of entrepreneurial venture and also it has
relate to different type of typologies. Further it has states all the difference and similarity
between the venture. It has also articulate the impact of small and medium business also it
plays a major role in the economy as they are the major source of innovation and creation of
employment opportunity. It has also determine the characteristic , traits and motivational drives
of entrepreneur which makes different from the manager. And also it has reflect the personality
of the entrepreneur and its mindset. And at last it has states the experience that can hinder or
foster entrepreneurship .

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enterprise/article/1493336>