Entrepreneurship and Small Business: Economic Impact and Strategies

This report provides a comprehensive overview of entrepreneurship and small business management, examining the concept of entrepreneurship, different types of entrepreneurial ventures, and the distinctions between serial entrepreneurs, intrapreneurs, and owner-managers. It delves into the impact of micro and small businesses on the UK's economy, including their contributions to employment, growth, and infrastructure development. The report also explores the social economy and differentiates between small, medium, and large businesses, analyzing their impact at various economic levels. Furthermore, it highlights the characteristics and skills of successful entrepreneurs, contrasting them with business managers, and examines how entrepreneurial personalities reflect motivation and mindset. The study includes the scope, development, and growth of entrepreneurial ventures in the service and industrial sectors. Finally, it discusses the public and corporate sectors, linking entrepreneurship to their growth and development.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Concept of Entrepreneurship ......................................................................................................1
Entrepreneurial Venture .............................................................................................................1
Difference between serial entrepreneur, intrapreneurs and owner managers ............................2
Public and corporate sector ........................................................................................................4
Scope, development and growth of entrepreneurial venture ......................................................4
Scope of entrepreneurial venture:...............................................................................................4
TASK 2............................................................................................................................................5
1. Impact of micro & small business on UK's economy.............................................................5
2. Social economy.......................................................................................................................6
3. Difference between small, medium and large business .........................................................6
4.Impact of small business at different level of economy...........................................................7
TASK 3............................................................................................................................................7
1.Characteristics and skills of successful entrepreneur that distinguish them from business
manager.......................................................................................................................................7
2.Entrepreneurial personality reflects entrepreneurial motivation and mindset .......................8
3.Characteristic, traits and skills of successful entrepreneur ...................................................9
4.Environment hinders entrepreneurship..................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Small scale enterprise is a business in which number of employees are less than 50 and
does not have much sales. These are generally privately owned business or sole proprietorship
and have less annual revenue than a normal business (Smeltzer, Fann and Nikolaisen, 2015).
These business include services like grocery stores, bakeries, hairdressers, restaurants etc.
Edward street bakery is taken to understand the small scale business, it is an UK based business
which is owned and managed by only two people i.e. Jez Belsten and Lisa Fraser it will help in
determining the concept of entrepreneur and entrepreneurial ventures. Further in this report study
of public and corporate sector will also take place and how these small, medium and large
business impact the different level of economy. Characteristic traits and skills will also be
discussed to determine the motivational driver of successful entrepreneur.
TASK 1
Concept of Entrepreneurship
Entrepreneurship is a process of launching new business which is small in size in starting.
it is also explained as capacity to develop a business which have a lot of risk for earning profits.
Person who manages the business are know as entrepreneurs. They have ability to identify the
potential in ones idea and to bring innovation in society (Schaper and et. al., 2014). They create
employment and improve national income, it improves living standards of people and reduces
social tension among youth.
Entrepreneurial Venture
 Small business entrepreneurship: These are the small scale business organisations
which is run by an individual and loss and profits are bear by them alone. Some of the
business that run as a small business are plumber services, travel agents, bakery etc.
Edward street is the example of this entrepreneurship because it is also owned by one
person. Purpose of this type of business is to feed their family and earn money.
 Scalable start-up entrepreneurship: motive of this entrepreneurship is to change the
vision of the world by launching something which no one ever think of. They hire best
employees for super fine performance so that company can make profit. Some of the
examples of these entrepreneur are Facebook, Instagram etc.
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 Large company entrepreneurship: these are the large scale company with huge
monitory investment. Their motive is to bring innovative ideas into the market so that it
can attract customers and to gain competitive advantage.
Typology of entrepreneurship:
 The skeptical entrepreneur- These entrepreneurs analyse the business of others and hve
capabilities like specialist, innovator and builder.
 The builder: These entrepreneurs create their own idea by opening a business according
to the current trend in society.
Difference between serial entrepreneur, intrapreneurs and owner managers
BASIS SERIAL
ENTREPRENEUR
INTRAPRENEURS OWNER
MANAGERS
MEANING They are entrepreneur
who come up with
new ideas on regular
basis for starting a new
business and they get
thing started by giving
responsibilities to
other people and move
on for creating a new
unique idea(Scott and
Bruce, 2016).
They are the
employees working in
the organisation and
are asked develop
innovative ideas
within the company.
They face risks and
rewards for this ability
and they have ability
to establish a
company.
These person are in
charge of the company
and in case of small
business, general
managers is the top
executive. Managers
are always above
employees (Solomon
and Fernald Jr, 2015).
Motive Motive of these
entrepreneur is to
create money. In
context of Edward
street, the idea behind
opening that bakery is
to earn money
Aim of intrapreneurs
is to give creative
ideas to their
organisation. In case
of Edward street it is
completely owned and
managed by two
people so they are
Main motive of
managers in an
organisation is to get
promotion and rewards
which enhance their
status and provide
them satisfaction.
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their own
intrapreneurs.
Risk They have ability to
take risk because serial
entrepreneur are the
creator of venture idea
and without risk, profit
is not possible(Rosa
and et. al., 2016). In
context of Edward
street, it was also
launched by taking
risk because there are
number of other
bakers available in UK
street so there was a
risk of failure.
These people does not
fully take risk, they try
to hide it if there is
huge risk and share
there ideas only in
lower risky situations.
Manager's main task is
to completely reduce
or avoid risk and only
take projects which
does not involve risk
in it so that company
may not suffer any
loss.
Freedom They have complete
freedom in work
culture, schedule etc.
for example in case of
Edward street people
who are managing it is
having complete
freedom to work
according to their own
rules, they need not to
follow any one.
Intrapreneurs does not
have freedom to work
without any rules or
framework because
they execute their idea
while working in an
organisation and it is
not possible to get the
freedom to work on
their own but they also
get some advantages
like legal team,
financial support and
Again in managers
case they do not have
freedom to work
without any rules and
restrictions because
they are working for
the organisation and
need to work
according to its
framework.
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human resource.
Goal This is a similarity
between all three of
them. Entrepreneur is
working to achieve the
goal of the
organisation and to
increase its
profit(Storey and
Greene, 2010).
In case of
intrapreneurs they are
also working with
intension to earn more
and to achieve the goal
of the company
Manager's motive of
working in a company
is to achieve the target
or objective of
organisation so that it
can get profit from it.
Public and corporate sector
Public sectors are those sector which is completely owned and managed by government
and their motive is to providing services for the welfare of the society & not to earn profit some
of the examples of public sector organizations are education sector, gas & oil sector, health care,
public transit, postal service, waste management etc. these organisations exist in three levels like
national, regional and local. Corporate sectors are those companies which are engaged in the
industrial development of society(Orser, Hogarth-Scott and Riding, 2015). These sector
contribute to national income, infrastructural growth and development of the economy. These are
also known as business or business sectors and they are further subdivided into primary,
secondary and tertiary sectors.
Entrepreneurial venture with the context of public & corporate sector
entrepreneurship is linked with these two sectors because it help them in understanding
the importance of growth and development. Its aim is to improve the effectiveness in economy
by increasing knowledge. These sectors will bring more technology development and more
innovation throughout the economy(Steinhoff, 2018).
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Scope, development and growth of entrepreneurial venture
Scope of entrepreneurial venture:
 Service sector: these sectors have gained a lot from entrepreneur and their services has
been expanded in every field like hotel, tourist services, personal services etc. they have
provided a lot to transportation department by designing prototypes of new wheels with
application of great technology so that people get better mobility and greater carrying
capacity. For example idea of solar cars was also made by someone for the first time.
Entrepreneurs are tapping enormous opportunities in manufacturing & non
manufacturing activities and government is encouraging them (Yusuf, 2014). Industrial sector: Scope of these entrepreneurial ventures is vast because they occupy
important places of it. In small scale industries, their objective is to bring development by
increasing supplies, promotion of capital information development of entrepreneur's
skills and by creating employment opportunities. Other than this company is also
contributing in national income , meeting shortage of customer;s demand and increasing
standard of living.
Development & growth of entrepreneurial venture:
 Employment generation: according to me entrepreneurial ventures are also generating
employment opportunities in their country and it is a growth factor for it. People and
government is promoting it because of it is impacting positively by contributing to the
society.
 From my opinion entrepreneurial venture is very important like other business and its
development is increasing because people now prefer to invest in new organisations or
new ideas which is not same as existing one. Young generation is even more focusing on
starting their own business rather than taking different jobs(Lewis and Churchill, 2018).
 Creativity and innovation: creativity means to generate new idea which is unique from
others. I think entrepreneurial venture is the best way to bring innovation in the society.
Because when a idea comes into the mind of a person they try to make it different from
others. Innovation help the business to grow and attract customers.
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TASK 2
1. Impact of micro & small business on UK's economy
Micro and small business is contributing a lot to the economy. Initially UK's productivity
level was weak as compare to other economy but with the help of SMEs its productivity has
improved as small and micro enterprises are contributing to the 60% of private sector jobs and
47% revenue. Some of the key findings are that innovation and expansion are the main drivers
for boosting productivity.
 Employment: SMEs are making a large contribution in creating jobs. 60% of people
are employed in a private sector start-ups because these business want educated and
skilled people for undertaking the activities of the organisation. But not all the small
business are providing jobs like there are some sole traders who are working
independently.
 Growth: Small and micro business are also contributing in economy's growth because it
is doing well and expanding their operation yearly basis. It also helping in the flow of
cash by launching business in different country.
 Infrastructure development: Micro and small business help the economy to develop
by contributing in national income and this help UK government in developing
infrastructure by building roads and bridges.
2. Social economy
This is an economy which is formed by combining the organisations like cooperative,
mutuals , foundations, paritarian institutions, association etc. start-ups are important for growing
economy , they get government support for doing it and facing challenges & in return they serve
to the economy. There is an example of UK economy in which it faced issues of BREXIT which
resulted as reduction in revenue as well as profitability and was unable to work properly. But
small business does not get much affected from these economic changes and helped country in
dealing with such problems.
Significance in growth & development to social economy:
 Job opportunities: Micro and small business are significance in growth of social
economy by providing end number of job opportunities to the unemployed citizens of
UK. These start ups hire required member for their business who help in achieving the
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goal of the company and it improves the standard of living(Gorman, Hanlon and King,
2016).
 Motivation: These start-ups motivate a lot of people with their unique and innovative
ideas. UK's citizen get attract to toward it which help them to grow social economy as it
results in increasing revenues of the company.
3. Difference between small, medium and large business
 Small: These business are small in size with less than 50 employees and activities they
perform are also on very small scale in low budget. These small scale enterprises help the
economy by improving the standard of living and providing employment opportunities.
Main motive behind these business is to provide support to the family.
 Medium: These enterprises are large as compare to small business. It has 50 to 250
employees working in the organisation. The motive behind these organisation is to earn
money and provide employment opportunities to the society. They also improve the
standard of living.
 Large: These enterprises are big in size in context of employees as well as budget. More
than 250 workers are working in these organisations. Motive of these type of enterprises
is to achieve the goal of the company and to attain a good profit from its performance.
These companies also provide employment to UK citizens on large scale.
4.Impact of small business at different level of economy
Local level:
These small scale organisations impacting the local level economy by differentiate its
community identity, its health and involvement(DeLone, 2015). Other than this small business
also give environmental benefits including increasing innovation & productivity, increased sale
and improving labours. It even help in increasing tax base which as a result improves the
communit. It also provide local jobs for the citizens.
Regional level:
small scale organisation is impacting regional economy by creating employment growth,
it affect the competition and resources. Employment impact the formation of formation of new
business as it attract job seekers toward it.
National level:
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Small scale business have impact on national economy as it affect economic growth and
map the future by attracting individual who invent new products and ideas.
TASK 3
1.Characteristics and skills of successful entrepreneur that distinguish them from business
manager
 Take risks: Successful entrepreneur have this characteristic in them because they know
that it is important to take risk. They can not just take any risk, they have a good
understanding of calculating risk. On the other hand business manager avoid risk by
preferring those activity which can be performed without any tension.
 Passion: successful entrepreneurs always feel passionate about their work, product &
services, organisation etc. it help them in motivating themselves as well as to the others
but on the other hand managers are not passionate about these things, they are only work
to earn money and make profit from the organisation. Flexible: it is an important characteristic that every entrepreneur should have is willing
to change if required. This help organisation to expand in dynamic environment as well
as in solving issues effectively. On the other hand managers also posses this quality in
them because they work for achieving organisational goal and in this changing
environment, flexibility is must for the survival.
Skills of entrepreneur:
 Creativity: A successful entrepreneur have creativity skills which help the organisation
to become different from others and also attract customers because of their uniqueness.
This leads to new opportunities(d'Amboise and Muldowney, 2013).
 Decision making: these are the skills that make entrepreneur different from managers
because former are the owner or head of the company and it is necessary for them to take
decisions. While managers are there to just execute the decisions taken by entrepreneur.
 Leadership: it is another skill that entrepreneurs posses to maintain discipline in the
organisation and to provide a direction to the employees working with them. It help
organisation to perform successfully.
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2.Entrepreneurial personality reflects entrepreneurial motivation and mindset
Every entrepreneur have a personality which help them in dealing with situations in
different ways and to maintain a healthy relationship with the business and employees working
in it. Individual required to have appropriate skills and characteristic for opening a new business
and making it successful. To determining the required skills & traits, models of personality
theory are made to help entrepreneurs and those are:-
 Openness to experience: In this model it consist of variety, sensitivity, aesthetic, active
imagination, intellectual curiosity and attentiveness. All these traits help entrepreneur to
make their organisation successful. Other than this entrepreneur should be a good listener
so that it can learn new things.
 Conscientiousness: Entrepreneur should only focus toward the vision and not get
distracted so that there is no interruption in performance of achieving desired target of the
company.
 Extraversion: This model says that entrepreneur should be energetic and assertive so
that it can create an environment in which employees work without any burden and stay
loyal . This energy even motivate every person working in the organisation in achieving
the goals of the company.
 Agreeableness: According to this model entrepreneur should get agree with their
employees idea if it is worth of that, because it help them in motivating and supporting
the workers within the organisations.
 Neuroticism: This model says that entrepreneur should control their anger and stay
handle their workers calmly so that people does not get offended by their behaviour. It
also help in reducing employees turnover.
3.Characteristic, traits and skills of successful entrepreneur
Skills:
 leadership- For becoming a successful entrepreneur, individual should have leadership
skills in them because it help them in providing direction to the staff. Other than this
individual can maintain a disciplined environment which make it easy for them to make
their start-up successful.
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 Decision making: This is again a required skill for an entrepreneur because in small
business organisation the whole responsibility lies on the head of individuals. Other
execute the decisions take by individual and make it a successful working environment
Characteristics:
 Confidence: This is an important characteristic for the successful entrepreneur because it
help them to face difficult situations and to motivate employees to stay calm in while
facing tough time(Carland and et. al., 2017). Passionate: It is characteristic that every entrepreneur should have because passion about
anything make a person work with full dedication. If leader is passionate it can easily
make their staff work with zeal.
Traits:
 Disciplined: For a successful entrepreneur, individual need to be disciplined so that it
can create a regulated working environment. In this entrepreneur need to keep their
personal and private life completely separate to avoid any kind of distraction in achieving
its goals.
 Risk taking: It is an important trait if entrepreneur wants to earn profit because risk can
not be eliminated so individual should have a good understanding about the kind of risk
taking is good for the company and which one is bad.
4.Environment hinders entrepreneurship
 Economic factor: these factors directly affect the working of entrepreneurship.
Some of the elements of economic factor is capital which is required for
investment in projects so that company can increase its profit. Then labours,
getting right workforce impacts entrepreneurship by improving the quality
performance which emerge as the growth of enterprise. Raw material is another
element which influence like in case of shortage it negatively affect the working
and organisation will not be able to perform properly. Some other elements are
market and infrastructure.
 Social factor: This factor highly encourages entrepreneurship and contribute in
economic growth. Some elements of social factors are caste factor which is about
value and factors. Then family background, education also inculcate the
entrepreneurial values(Burns, and Dewhurst, eds., 2016)
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 .
 Psychology factors : this factor include elements like need achievement which
affect the performance of individuals. Then motivation, it is a psychological
theory that influence every one to work toward achieving the goal of the
company.
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CONCLUSION
From the above report it has been concluded that being an entrepreneur is not easy. They
need to have some characteristics, traits and skills to successfully execute their start-ups. Apart
from this difference between manager , intrapreneurs and entrepreneurs has also been learned. In
this report it has been analysed that small business organisation plays an important role in the
growth of the economy and there are number of ventures available to achieve the goals of
organisations.
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REFERENCES
Books and Journal
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Carland and et. al., 2017. Differentiating entrepreneurs from small business owners: A
conceptualization. In Entrepreneurship (pp. 73-81). Springer, Berlin, Heidelberg.
d'Amboise, G. and Muldowney, M., 2013. Management theory for small business: Attempts and
requirements. Academy of management review. 13(2). pp.226-240.
DeLone, W. H., 2015. Determinants of success for computer usage in small business. Mis
Quarterly, pp.51-61.
Gorman, G., Hanlon, D. and King, W., 2016. Some research perspectives on entrepreneurship
education, enterprise education and education for small business management: a ten-
year literature review. International small business journal. 15(3). pp.56-77.
Lewis, V. L. and Churchill, N. C., 2018. The five stages of small business growth.
Orser, B. J., Hogarth-Scott, S. and Riding, A. L., 2015. Performance, firm size, and management
problem-solving. Journal of Small Business Management. 38(4). pp.42-58.
Rosa and et. al., 2016. The impact of gender on small business management: preliminary
findings of a British study. International Small Business Journal. 12(3). pp.25-32.
Schaper and et. al., 2014. Entrepreneurship and small business. John Wiley & Sons.
Scott, M. and Bruce, R., 2016. Five stages of growth in small business. Long range planning.
20(3). pp.45-52.
Smeltzer, L. R., Fann, G. L. and Nikolaisen, V. N., 2015. Environmental scanning practices in
small business. Journal of Small Business Management. 26(3). p.55.
Solomon, G. T. and Fernald Jr, L. W., 2015. Trends in small business management and
entrepreneurship education in the United States. Entrepreneurship theory and practice.
15(3). pp.25-40.
Steinhoff, D., 2018. Small business management fundamentals. Tata McGraw-Hill Education.
Storey, D. J. and Greene, F. J., 2010. Small business and entrepreneurship. Financial Times
Prentice Hall.
Yusuf, A., 2014. Critical success factors for small business: Perceptions of South Pacific
entrepreneurs. Journal of small business management. 33(2). p.68.
(Burns, and Dewhurst, eds., 2016)(Carland and et. al., 2017)(d'Amboise and Muldowney, 2013)
(DeLone, 2015)(Gorman, Hanlon and King, 2016)(Lewis and Churchill, 2018)(Orser,
Hogarth-Scott and Riding, 2015)(Rosa and et. al., 2016)(Scott and Bruce, 2016)
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