Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION.....................................................................................................................................3
LO1........................................................................................................................................................4
P1.......................................................................................................................................................4
P2.......................................................................................................................................................6
LO2........................................................................................................................................................8
P3.......................................................................................................................................................8
P4.......................................................................................................................................................9
LO3......................................................................................................................................................13
P5.....................................................................................................................................................13
P6.....................................................................................................................................................14
LO4......................................................................................................................................................16
P7.....................................................................................................................................................16
CONCLUSION.......................................................................................................................................18
REFERENCES........................................................................................................................................19
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INTRODUCTION
As there have been many changes being made in the business environment with an aim to generate
a high amount of profit for the company, there have been many new start-up ventures such as
British Airways in the sectors of business within an aim to provide the best set of services to the
customers in terms of providing the appropriate set of products and services towards the
development of the company (Abe et al., 2015). Where the term entrepreneurship has been defined
as the ability to determine the set of business ventures in an effective way, which serves beneficial in
terms of providing growth and development within the company, The small business entrepreneurs
are defined as the group of people which serves to regulate the working of the business in terms of
having the low financial conditions and the insufficient human resources, in accordance to this the
main objective of the small business ventures is to generate the maximum profit towards the
company by defining the effective set of services. This report includes a detailed analysis of the set
of various barriers faced by the company in terms of establishing the business, by defining various
business plans and strategies to generate the maximum profit for the company, thus the small
business entrepreneur serves helpful towards the growth and development of the overall economy
of the country (Abebe, 2014).
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LO1
P1
As per the changing business environment, there are many different types of entrepreneur ventures
which have the varying collection of the policies and the structure within the business, where the
implementation of the mini research will contribute towards the importance of Brexit in terms of
defining the success and progress of the small business organizations. Thus the effective and the
successful implementation of entrepreneurship include the different set of skills and capabilities
which determines the growth and development of the company. The research also serves helpful in
defining the proper understanding of the case study of British Airways along with the role of Brexit
towards the progress and the development (Artinger and Powell, 2016).
On the basis of the skills and abilities, there are many different types of the entrepreneurs, where
each entrepreneur defines the variable set of the objectives and aims depending upon the scope,
structure, and size of the business, which can be defined as:
Public Entrepreneurship
This type of entrepreneurship defines the collection of the set of public values which includes the
group of individuals in the absence of the recent setting related to the organization, it is also called
political or policy entrepreneurs, as it involves the set of the public involvement in the various
different types of ventures.
Independent Entrepreneurship
As the name suggests this type of entrepreneurship includes the ventures where the economic
values are not bounded by the structure defined within the organization, in which the effective set
of the decisions are in an independent form, where the set of the employees working within the
organization are free to participate in the decision making process of an organization in form of
providing the set of suggestions towards the progress and development of an organization
(Audretsch et al., 2016).
Social Entrepreneurship
This type of entrepreneurship includes the set of values and support defined in accordance with
people views, where the main aim of the social entrepreneurship is developing the effective
business environment by providing the satisfactory delivery of services and products towards the
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customers with an aim to fulfill the demands of the customers in form of improving the existing set
of services by taking the feedback from its customers.
In terms of the ventures, the types of entrepreneurship which are included are:
Survival Ventures
The type of the business environment which depends upon the system of cash and the barter
system, which does not involve the participation of finance over their business activities, as these
type of ventures are not registered in a formal manner, they are activated within the business
environment to generate the profit in an organization (Banerjee et al., 2017).
Lifestyle Ventures
The type of organization having the ability to compete with the other competitors which mainly
focuses towards the accurate management of the economic conditions instead of focusing towards
the business expansion, where the lifestyle of the people can be made better by contributing
towards these types of ventures in reference with the entrepreneurs.
Managed growth ventures
The type of ventures which deal with the practical commercial models along with the development
of the set of services with an aim of improving the progress of the business and provide the support
to the entire economy of the country
Aggressive growth ventures
The type of ventures which deals with the implementation of the technical equipments which a
motive to improve the growth and development of the company, in terms of generating the national
and international opportunities for business in terms of the technological development enhancing
the brand image of the company among the public with an aim to provide the innovative services
towards the people (Burns, 2016).
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P2
There are many different enterprises defining the objectives and goals in accordance with the
demand of the customers, in order to provide the desired output with reference to the profit
generation capacity of an organization, where the similarities and differences can be defined and
elaborated as follows:
Determining the differences and similarities of enterprises in various categories has been defined as:
CATEGORY/ BASIS PUBLIC ENTERPRISES PRIVATE ENTERPRISES SOCIAL ENTERPRISES
DETERMINING ROLES An enterprise which is
authorized by the
government in terms
of the public is called
Public Enterprise. The
duty of public
enterprise is to provide
the best set of
products and services
to the customers at
reasonable prices.
The type of the
enterprise within
which the policies are
made on a private
basis with an aim of
defining the effective
profit generations
capacity in order to
provide the best set of
services and products.
The type of enterprise
which works towards
the development of
the society, as it
provides support
towards the people
and country in terms
of the economic
development (Cowling
et al., 2015).
PROPERTIES Such type of
enterprises serves
helpful in terms of
supporting the start-
ups which have been
observed in the public
enterprise contributing
towards the economic
growth of the country.
The motive of such
type of enterprise is to
provide the growth
towards the business,
which works as the
properly managed
system with an aim to
satisfy the objectives
and goals.
Such type of
organization serves to
provide profit or non-
profit organizations in
accordance with the
goals and the
objectives (Dimitratos
et al., 2014).
Determining on the basis of ventures in terms of size
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The public enterprise is defined by the government communities by following the specific set of rules
and policies defined towards the business environment, where the profit generation capability has
been defined in terms of the on benefit allowances, which serves beneficial towards the
development of the country’s economy.
The private business enterprises focus on defining the profit ratio defined in terms of the business,
where the small and the medium size of enterprise has been included within the private
organizations, by the effective profit generation within the organization by providing the best set of
products and services.
The social business enterprises serves to be different from public and the private department of
organizations, as these types of enterprises understand the usage of resources along with the
understanding of the social values, these type of enterprises work in the type of market where there
are high chances of profit generation which are defined as competitive markets (Eijdenberg et al.,
2015).
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LO2
P3
As per the given details of an organization, named as British Airways there are many sets of the
start-up companies in the UK of about 3500 companies which has been increasing day by day, the
main reason behind the establishment of large numbers of start-ups within UK is the availability of
the set of conditions required for the determination of political and the economic factors as per the
requirements of the companies, which also contributes towards the development and growth of the
economic development of the country, which includes the overall revenue and the turnover rate in
the industry. British Airways has been defined as the developing organizations which provide a
suitable set of services to its customers at an economical rate (Fernández-Mesa and Alegre, 2015).
Figure 1: UK Business
Source: (Giaoutzi et al., 2016).
As per the recent survey was done in the UK, it has been found that 27 million people are provided
employment within the small scale organization which defines the equal number of male and the
female employees. The growth of the4 small scale business has been increased within the UK, due to
the increase in the new set of procedures and techniques which serves to provide the new set of the
innovative techniques within an organization.
Thus, with an aim to make the business more developed and popular the set of innovations and the
creative ideas serves beneficial for an organization along with the development of the effective
economic growth and development of the country, according to the set of the global changes it has
been found that the level of difficulties defined within the country has been decreased in recent
years due to the effective set of development practices (Goffee and Scase, 2015).
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In 2017, it has been found that 95% SMEs contribute towards the growth of the economy of the
country from their shares, where the development in the field of technical enhancements has
provided the new path for the development of the company with highly innovative equipment.
Company Category Staff headcount Turnover Balance sheet total
Medium- Sized <260 ≤€ 45m ≤€ 50m
Small <80 ≤€ 11m ≤€ 25m
Micro <20 ≤€ 3m ≤€ 10 m
The small and the medium-sized business contributes towards the development and progress of the
UK's economy, as there are many new sets of the small business which has been established within
the UK, which also serves helpful in providing the set of employment opportunities to the people,
where the growth of the employment rate within the UK can be described in the following figure:
Figure: Number of Increase in Business Population in UK private Sector
(Source: Guerrero et al., 2016)
P4
The stability and development defined in terms of UK, has been reached at high level as per the
contribution of the small enterprises towards the development of the country’s economy, where the
major population of the UK, has been defining its employment and work in the small scale industry
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in order to enhance the working efficiency. As defined in terms of the small scale business, there has
been rapid development in terms of providing large numbers of opportunities for the regional and
the local people. In terms of defining the effective set of information towards the small business
serves an effective way to determine the economic growth in terms of the development of the UK.
The small level of the business serves helpful in increasing the development of the country of
defining the effective growth in terms of the economic conditions, by providing the set of
opportunities for the unemployed set of the people, which makes the modern financial structure of
UK including the maximum number of the employed people of the country, contributing towards the
enhancement of the lifestyles of the people (Karadag, 2015).
Figure 2: Small Business in the UK
Source: (Burns, 2016)
Where set of policies defined within Europe is determined on the basis of the focal point measured
with reference to medium and small scale enterprises (SME), which provides assurance and
opportunities in terms of job creation, social integration innovation etc., which helps in determining
the accurate identification of the set of services being increased year by year. As there were a large
number of the contribution of the small and medium enterprises in the economic growth of the
country, where the business enterprise has been divided into public, voluntary and private
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organizations. The public organization are the organizations which are controlled by the government
authorities or communities, private organizations as the organizations which are controlled by an
individual or the group of people., public organizations are the organizations which serve to provide
the services and products to the customers at the reasonable prices (Kozubíková et al., 2015).
Apart from this, the government of the UK has defined a specialized set of laws named as Brexit,
which has been applied over the entire set of business enterprises in the UK. The development in
terms of high level of the technology and procedures has lead towards the growth and development
in terms of the small and medium-sized enterprises, where the availability of the jobs towards the
local people serves to increase the overall production and growth of the country in terms of defining
the political and economic factors of the country in an effective way.
Figure 3: SME’s UK
Source: (Kozubíková et al., 2015)
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LO3
P5
In order to become the successful entrepreneur it serves necessary to have the good set of abilities
and skills which makes them different and unique from others, where the motive of an entrepreneur
is to focus upon the demands the requirements of the customers and implement the set of the
features according to the process of development and growth of an organization. The two most
popular entrepreneurs such as Richard Branson and Alan Sugar are:
Alan Sugar the British Business Entrepreneur, having the personality of the political advisor and
media, has been defined as the 95th richest person of UK, which has been made possible due to the
talent and the intelligent skills identified within him. As per the Alan Sugar dedication and
intelligence of the person can make him the successful and billionaire. Alan Sugar has the high
decision making power and the presence of mind which serves helpful in determining the business
towards the successful and the developed level among the various set of the competitors and the
challenges (Mason and Brown, 2014).
Richard Branson defined as the CEO of the Virgin Group is known for defining his unique personality
and extravagant wealth. He established his first business at the age of 16, where he was called the
magazine student, who believed in defining the effective set of the strategies and procedures within
an organization by implementing the team building strategies in an organization leading towards the
accomplishment of the work within the defined time period. He also believed that if a person has
confidence and positive attitude in himself, he can achieve a defined goal of his life (Muchiri and
McMurray, 2015).
Thus, in order to become the developed and the successful entrepreneur, it serves mandatory to
have the set of qualities such as thinking, introversion, judgment, and intuitions which makes the
person unique from the existing set of the populations. Such as Richard Branson has the quality to
handle the upcoming set of barriers and challenges over the existing business environment, which
thus serves helpful in reducing the risk within an organization, making him different in terms of the
existing entrepreneurs. According to the defined set of information, it has been found that the
success can be achieved by an individual in terms of providing the effective set of skills and the
abilities which include the quality of team building, effective decision making, etc.
The comparison of the above-defined entrepreneurs, which have the different set of qualities, skills
and the abilities to define the success and development of the business, along with with with this
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