Entrepreneurship & Small Business Management: Economic Impact

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on their impact on the UK economy. It examines different types of entrepreneurial ventures, highlighting their similarities and differences across various sectors, including public and corporate. The report interprets data and statistics to illustrate the significant role of micro and small businesses in economic growth and the social economy, emphasizing employee generation and improved living standards. It also evaluates the distinctions between small, medium, and large businesses, utilizing relevant data to showcase their respective contributions to the UK economy. Furthermore, the report identifies the characteristics, traits, and skills of successful entrepreneurs, differentiating them from typical business managers, and explores how personal background and experience can either hinder or foster entrepreneurial endeavors. This document is available on Desklib, where students can find a wealth of solved assignments and past papers.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................3
P2.Explore the similarities and differences between entrepreneurial ventures...........................4
M1 Investigate a diverse range of entrepreneurial venture to demonstrate an understanding of
entrepreneurship in both the public and corporate sector ..........................................................5
TASK 2............................................................................................................................................5
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy. ...........................................................................................5
P4 Explain importance of small business and business start-ups to the growth of social
economy......................................................................................................................................6
M2 Evaluate the differences small, medium and large businesses make to the economy
applying relevant data and statistics ...........................................................................................6
TASK 3............................................................................................................................................8
P5 Determine the characteristics traits and skills of successful entrepreneur that differentiate
them from other business managers. ..........................................................................................8
P6 Aspects of entrepreneurial reflect entrepreneurial motivation and mindset........................10
M3 Explore and examine different lines of argument relating to entrepreneurial characteristics
...................................................................................................................................................12
TASK 4..........................................................................................................................................12
P7 examine using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................12
M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs ............................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
Entrepreneurship is defined as the procedure for developing and implementing a new
business idea in market. An entrepreneur is defined as an individual who generates an idea and
work upon it to implement it in actual market. The main aim of every entrepreneur is to analyse
new trends and lifestyle of people and make products and services which are needed by
customers. This will help in capturing market share easily and making profits within less time.
The different topics covered in this project are different types of entrepreneurial ventures,
typology of entrepreneurship and how small business ventures helps in increasing economic
growth of the country.
TASK 1
P1.Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
The different type of classification of entrepreneurship are described below-
 Based on the type of Business.- There are basically three types of entrepreneurship according to
this type of business and these are traders, manufacturers and agricultures. Trades are those who
are involved in producing and manufacturing of products. Manufacturers are those who identify
the needs and demands of customers and make products according to that. The agricultural
activities is the third type of business that includes growing, trading of agricultural products,
irrigation, mechanization and agricultural technologies.
 Based on the use of technology- Technical entrepreneurs are entrepreneurs who use science and
technology in their business. Non-technical entrepreneurs. The priorities of them enterprises are
not science and technologies.
 Based on ownership.- Private entrepreneur is one who as an individual person establishes a
business, is the sole owner of the company and assumes all the risks associated with it. State
entrepreneur is When a commercial or industrial enterprise is run by public or government. Joint
venture entrepreneurs are when a private entrepreneur and government co-managing a business.
 Based on gender.
Men entrepreneurs when business is owned, managed and control by men. And female
entrepreneurs are when enterprise is owned and controlled at least of 51% of capital by woman.
 Based on size of enterprise.

Small-scale entrepreneur who has invested in to business up to Rs 1.00 crore.Medium- scale
entrepreneur who has invested in to business above Rs 1.00 crorebut below Rs 5.00 crore. Large -
scale entrepreneur who has invested in to business more then Rs 5.00 crore.
Small business entrepreneurship
This is defined as the small business which are owned privately and operated with few
employees. There is less volume pf sales in such kind of business.
Scalable startup entrepreneurship
The scalable startup entrepreneurship consists of various startups started by new
entrepreneurs for achieving goals and targets of themselves. This includes business started by new
people to achieve their passion.
Large company Entrepreneurship
This involves of various big firms which cooperate and collaborate to operate in business
environment. They have generally more than 1000 employees.
Social Entrepreneurship
Social entrepreneurship means the person has started operating an organisation for social
welfare of the society. These are in the form of Trusts and NGO's.
Corporate Entrepreneurship
These are those businesses which are started by entrepreneurs for making profits and
goodwill in market.
Public sector entrepreneurship
The public sector entrepreneurship are those which are operated by government of the
country. The main products of these businesses are fertilizers, natural gas, coal, steel, etc.
P2.Explore the similarities and differences between entrepreneurial ventures.
Difference-:
Small scale enterprise Scalable enterprise
 Start ups are result of idea of an another
person or business and these are
generally stolen ideas of any other
business method.
 Scalable businesses are result of new
innovations and ideas of individual.
 The main objective of these enterprises
is to bring innovation into existing idea.

 The main objective of Start ups is to
earn money and fulfil the basic
demands and needs of family like food,
shelter, clothing, etc.
Large scale enterprise Social enterprise
The large business organisations are those
which are started at a big scale and it consists
of around more than 200 employees working in
the company.
The main objective of social enterprise is give
contribution to welfare of society. These
companies do not work for making money
rather the only want to serve poor people.
Start-ups enterprise Large scale enterprise
Start ups are defined as new launched business
enterprises which are working at small level.
Large scale enterprise are those in which less
than 200 employees work and the main aim of
large scale enterprise is to make more money
and profit by providing products and services.

Similarities-:
 All these entrepreneurial ventures are there for earning money and profits. The main
reason for existence of all these entrepreneurial ventures is to earn something that can be
helpful for living their life in a proper way.
 All the three enterprises small, large and social enterprises are those who work for
welfare of society and improvement of standards of people.
 All of these ventures are working for satisfying needs and demands of individuals by
evaluating these needs and preferences.
M1 Investigate a diverse range of entrepreneurial venture to demonstrate an understanding of
entrepreneurship in both the public and corporate sector
Entrepreneurship is an essential factor that is required by both sectors including public as
well as corporate sector. In context of public sector a business idea will help in making work
easier and providing customers a good experience. The corporate sector ensures that product or
service offered to people should be perfect and business should help in achieving the goals and
objectives of business.
TASK 2
P3. Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
According to Companies act 2006 section 382 and 465 of UK a SME has a main purpose for
accounting requirements. On this basis a small company is one with the turnover of less than 6.5
mil. Balance and balance sheet total do not exceed 3.26 mil GBP and up to 50 employees. A
medium-sized company has average business turnover up to 25.9 million GBP. And the balance
sheet total does not exceed 12.9 million, and not more then 250 employees.
The definitions are given below (Recommendation 2003/361/EC adopted on 1st January 2005)
with the Euro values converted into Sterling at the rate applicable when this text was drafted
(June 2010).
Category Headcount Turnover Balance sheet
total
Medium <250 £ 41 mill £ 35.2 mill

Small <50 £ 8.2 mill £ 8.2 mill
Micro <10 £ 1.7 mill £ 1.7 mill
https://www.ucl.ac.uk/procurement/suppliers/smes
P4 Explain importance of small business and business start-ups to the growth of social economy
The small business and business start-ups helps a lot in growth of social economy. There are
following ways in which small businesses contribute to social economy-
Employee generation – Small and medium enterprise has been contributing a lot in generating
employment opportunities in the country. When people will get employment then this will
help in removing poverty from the country. The small and medium enterprises help a lot in
developing life standards of people as when more number of people will be employed they
will have a good living standard. Poor people are able to earn money to support their
families and provide them shelter, food and cloth.
Standard of living – The small and micro businesses have been contributing to raise the standard
for people. When people are employed in these firms then they can earn enough money to
spend a healthy lifestyle and vanish their poverty. The economic level of the country is also
increased and life standards of poor people also increases.
M2 Evaluate the differences small, medium and large businesses make to the economy applying
relevant data and statistics
UK Small Businesses Statistics
Business Population Estimates for the UK and Regions 2018
Summary: 2018 Initially there were 5.6 million of small businesses in UK. If compared to the
previous year, the private sector business population decreased by 0.5% (-27.000 companies),
while private sector employment increase by 2% (+304.000). This contraction was caused by the
decrease in the number of smaller unemployed enterprises, which deceased by 1% (-50.000), but
the number of larger employing enterprises increased by 2% (+23.000). The decrease in business
population started in 2000. However, there where still 2.2milllion (+63%) more businesses then
in 2000.
Industries and Locations: Business density – number of businesses per person is higher in south
of England than elsewhere in the UK. SME’s account at least 99.5% of the businesses in every

mail industry sector. Nearly a fifth of all SME’s operate in construction sector. Compared with
less than 1% in the mining, quarrying and utilities sectors.
Trends in the businesses: Between 2000 and 2017, there was continues growth in the businesses
each year but recently there has been a fall of 27.000 businesses (0.5%) just between 2017 and
2018. However, there were still 2.2 million (+63%) more businesses than in 2000. Most of the
population growth since 2000 has been due to non-employing businesses, which accounted for
87% of the overall increase. Between 2017 and 2018, while the number of employing businesses
increased by 23.000, non-employing businesses fell by 50.000 resulting in an overall decrease
27.000 businesses. The number of companies has increased in the las year (2018) by 31.000
(+2%) while the number of sole proprietorships and ordinary partnerships fell by 49.000 (-1%)
and 9.000 (-2%) accordingly.
Compositions in the businesses:In the 2018 there where 1.4 million employing businesses and
4.3 million non-employing businesses. Accordingly, 75% of businesses did not employ anyone
aside from the owner(s). The overall business includes three main legal forms:there where 3.4
million sole proprietorships (59% of the total), 1.9 million companies (34% of the total), and
405.000 ordinary partnerships (7% of the total). Of the 5.7 million businesses, 45% (2.6 million)
were registered for VAT or PAYE.
Statistical data ONLY for those 4 types of E , for instance small E consist of 95% of UK
economy (ref). This is due to ..... demand of the local community.
Economy and the SME’s: Small businesses accounted up to 99.3% of all private sector in the
UK at the beginning of 2018. And 99.9% were small or medium sized (SME’s) businesses.
Employment in SME’s on 2018 was 16.3 million, 60% of all private sector employment in the
UK. The combined annual turnover of SME’s was 2.0 trillion GBP, 52% all private sector
turnover.https://www.fsb.org.uk/media-centre/small-business-statisticsFigures obtained from the
Department for Business, Innovation & Skills
The presented data gives us an opportunity to observe trends and tendencies how SME’s
participates in the United Kingdom’s economy. It gives us good image of the country. Such a
huge impact it makes in terms of employment and taxation, and wellbeing, and development of
the citizens themselves.

TASK 3
P5 Determine the characteristics traits and skills of successful entrepreneur that differentiate
them from other business managers.
A successful entrepreneur is one who is involved in managing and the available funds in
an effective manner so there is no loss to the business while operating. It is important for
entrepreneurs to satisfy needs and demands of the customers so that business will make more
profits in market. There are different activities involved in the successful running of business
ventures like effective decision making, motivating employees, risk management, come with
innovative approach, etc. There are famous entrepreneurs of the world who proved that a
successful business is not a big thing one just has to be passionate about providing people a new
and great experience in whatever or product or service is provided to customers. Two of such
entrepreneurs are described below -
Mark Zuckerberg is an American technology entrepreneur and he is also a philanthropist.
He is co founder of the most famous social networking website, Facebook. This famous
entrepreneur followed his passion and achieve his goals and objectives in life. His business idea
of starting a social networking website that will help people from around the world to know each
other and stay connected.
Jeff Bezos is another famous American entrepreneur and he is the founder and Chief
Executive Officer of online retailing company, Amazon.at initial starting of business of Amazon,
it was not so successful but continuous development and new strategies made Amazon one of the
best online delivery services around the world.
The key traits as well as skills observed within Mark Zuckerberg and Jeff Bezos are
mention below:
Mark Zuckerberg Jeff Bezos
Traits
 Innovation: Idea given by
Mark Zuckerberg was very
innovative as everyone wants to
stay connected with their
 Innovation: The common trait
within both the leaders is their
creativity and innovative thinking.
 Experimentalist: Jeff Bezos

families and friends and stay
connected but it is actually
done today by using social
networking site Facebook
which was founded by Mark
Zuckerberg.
 Feedback Approach: Mark
Zuckerberg believes in taking
feedbacks from users so that he
may improve the website and
give them whatever they need a
this is the only way to increase
the number of users.
always emphasized on
experimenting new ideas.
Skills
 Motivator: Mark Zuckerberg
motivated his team members
and subordinates for improving
their performance and make
better results. Communication:
Mark Zuckerberg believes that
two way communication is the
most important thing for
achieving success in business.
 Focused: Jeff Bezos is a very
focused person and he believes
that continuous hard work will
always give success in future.
 Mindfulness: Jeff Bezos believes
that is a stepping stone for success.
Characteris
tics
 Team-Player: Mark
Zuckerberg is a team player and
he always focuses on team
work for achieving success.
 Problem Solving: he believes
in approaching to every
problem and resolve it so that it
will not affect employees
 Risk-taker: Jeff Bezos is a risk
taker that is why he left his job and
started his own company.
 Leadership: Jeff Bezos is a very
successful person as well as leader.

overall working of
organisation.
The major difference between successful entrepreneurs and business managers are
mention below:
Basis Successful Entrepreneurs Business Managers
Focus An successful entrepreneurs emphasise
on generating new business ideas and
implementing them in market.
The focus of business managers focus
on daily activities performed in
business operations.
Status Entrepreneurs are the owner of the
business association.
Managers are an employee of the
organisation.
Motivation Profit maximisation by carrying out
activities in effective manner is the
motivation factor for a successful
entrepreneur.
Carrying out the operations activities
in the company smoothly is the
motivating factor for a manager
within firm.
P6 Aspects of entrepreneurial reflect entrepreneurial motivation and mindset
Mark Zuckerberg and Jeff Bezos got success in life because they both worked hard for
achieving their goals. OCEAN model is used for analysing the characteristics of an entrepreneur.
This is described below -
OCEAN Model
The big five personality traits and five factor model are known as OCEAN Model. This
model is basically for taxonomy for personality traits. This model consists of five different types
of personalities which are described below-

(Source- Ocean Model, 2019)
 Openness: This is called as intellect or imagination. This help in estimating and measuring
the level of creativity and desire for knowledge and experiences. Jeff Bezos and Mark
Zuckerberg are the two entrepreneur who get high ranks in such aspect.
 Conscientiousness: This is related to the work management skills required in entrepreneur so
that they can manage their workload allotted to them. Mark Zuckerberg and Jeff Bezos both
worked hardly and they showed their work in an organised manner. Both of these
individuals wanted the same from their team members and subordinates. This helps in
achieving the tasks assigned to them in less time.
 Extraversion: It is related to the vitality of entrepreneurs to get connected with other people
whether they are extrovert or introvert in nature. Jeff Bezos as well as Mark Zuckerberg
both are introvert in nature from their childhood as they don’t get connect with people
easily.
 Agreeableness: It include ability of an individual person for trust on specific person in easy
manner. Jeff Bezos and Mark Zuckerberg both are introvert in nature as they are ranked as
highly agreeableness.
Illustration 1: ocean model, 2019