Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT

Executive summary
The report focuses on illustrating various ranges of ventures that help in improving the small
business in many countries. It also identifies changes that need to be made in increasing the
economy and examine the various aspects that hinders and fosters the entrepreneurship in
business. The report also identifies changes that need to be made in identifying the
entrepreneurial importance in improving the business for future. In this report positive and
negative impact of entrepreneurs on in improving the business is identified. In this report
focusing on Schumpeter’s theory of innovation is identified for betterment of SMEs in
improving organization for future.

Table of Contents
Introduction................................................................................................................................4
Findings and analysis.................................................................................................................4
LO1:...........................................................................................................................................4
P2: Differences and similarity between the entrepreneurial ventures........................................5
M1: Demonstrating and investigating the range of entrepreneurship ventures in both sectors. 6
D1: Critically examine development, scope and growth of the entrepreneurial ventures.........7
LO2:...........................................................................................................................................7
P3: Assessing and interpreting data and statistics in order to illustrate the importance of
SMEs and micro business on economy......................................................................................7
P4: Explaining importance of start up business and SMEs in improving the growth of
economy.....................................................................................................................................8
M2: Evaluating difference between SMEs, large and medium business on the basis of
relevant data and statistics..........................................................................................................9
D2: Critical examination and impact of small business on various levels of economy.............9
LO3:.........................................................................................................................................10
P5: Determining the skills of being a successful entrepreneur: Schumpeter’s Theory of
Innovation................................................................................................................................10
P6: Assessing the aspects of improving the entrepreneurial personality which reflects on the
mindset and motivation based on the personality received......................................................12
M3: Exploring differences and arguing on the entrepreneurial characteristics.......................12
D3: Analyzing characteristics traits, motivation and skill for becoming a successful
entrepreneurs............................................................................................................................12
LO4:.........................................................................................................................................13
P7: Examining and using relevant example discuss the experience and background that
hinders the entrepreneurship....................................................................................................13
M4: Analyzing difference between entrepreneurial characteristics for becoming a successful
entrepreneurs............................................................................................................................13
D4: Critically evaluate how the background and experience of individuals influences the
entrepreneurs both negatively and positively...........................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................15
Appendices...............................................................................................................................18

Introduction
Entrepreneurship and SMEs management creates a major difference in identifying changes
that are made in improving the infrastructure of business in future. In this study the main
focus is given on identifying the different forms and types of entrepreneurial ventures along
with its positive and negative impact on improving the growth of small business. In addition
to this, the importance of small business is also identified for betterment of economy and
profit of any organization in future.
Findings and analysis
LO1:
P1: Examining the various forms of entrepreneurial ventures and how are they related
with typology based on entrepreneurship
Entrepreneurial ventures help in identifying changes that need to be made for betterment of
economy and increasing demand of small business in future. The types of entrepreneurial
ventures include:
SMEs based entrepreneurship- Small business are trying to increase their profit by
incorporating new business ideas that help in increasing profit of the company in future
(Burns, 2016). There are around 5.7 million small businesses in UK and 99.7% companies
employ around 50% of governmental workers for increasing demand of small business in the
UK market. Small business have the scope of making changes within a short span of time and
overcome the large business companies in future.
Scalable start-up business based on entrepreneurship- Scalable start-up business are also
considered as important entrepreneurial venture which changes the idea of encapsulating new
and innovative ideas that helps in improving the profit of company in future (Amato et al.
2017). The scalable start-up business aim is to make profit and build new companies that can
overcome the small business strategies that is incorporated in improving profit of business for
future.
Social entrepreneurship- They are considered as entrepreneurs who have done innovation
new ideas for improving the demand of product and services along with overcoming problem
faced during increasing profit of company in future. This form of entrepreneurial venture

focuses on increasing profit of the firms and not facing any problem during the expansion of
firms which belongs to social entrepreneurship.
Large company based entrepreneurship- Large companies’ focuses on increasing the
demand of firms and increasing their profit in future. Many large businesses grow on the
basis of sustaining innovation and also offering new prices on selling products so that profit
of business can increase and its demand for future betterment of company. Large companies
also focuses on changing tastes and innovation of new technology in the firm so that
customers get attracted and increases its competitors by innovating new ideas in future
(Volery and Mazzarol, 2015).
Typologies of entrepreneurship emphasizes on improving the occupational background of
firms and also help entrepreneurs in getting idea about changes that are needed to be made for
improving the pattern of business for future. It also examines organizational background for
increasing the technical entrepreneurship which has emerged into the market for making new
ventures (Morris et al. 2018).
P2: Differences and similarity between the entrepreneurial ventures
In improving the small business entrepreneurs try in identifying and innovating new ideas for
improving the business infrastructure in future. As stated by Bogdanova et al. (2016),
entrepreneurial venture is considered as an idea of starting small business for making new
offer in providing services and for increasing demand of industry and also maximising the
profit level for future betterment of business in matching up with the UK market. On the
other hand Saleem (2017) said that small business is considered as organization or sole
proprietorship which possesses fewer resources than a large company.
Difference between the entrepreneurial ventures and small business
Entrepreneurial ventures Small business
Objectives: High growth of profit and
making new innovation in improving
the business
Objectives: Focuses on maintaining a regular
business method that is considered profitable
and also help in achieving goal within a specific
span of time.
Leadership: Motivates individuals and Leadership: Small Business managers are

are very influential so that profit and
demand of business can increase within
a short span of time.
sometimes driven with ideaswhich help in
improving the efficiency of business and also
compete with other business. By improving the
efficiency owners of business tries to get an idea
about the ways that can help in operating the
business smoothly
Management strategy: Long term
procedure in improving the business
and also taking high risk for improving
the demand of business in upcoming
years.
Management strategy: Strategy that is
incorporated focuses on the concept that whether
there is continuous flow of finance in improving
the team for betterment of business. Small
business deals with risk that can be overcome if
the management strategy is well organized for
improving the infrastructure of the business
(Morris et al. 2018).
Table 1: Difference between Entrepreneurial venture and small business
(Source: Influenced by Saleem, 2017)
According to Cumming and Zahra (2016) entrepreneurial ventures are trying to develop new
ideas that create products which are useful for improving business in future. An entrepreneur
focuses on executing new plans for improving the business and increasing its profit in future.
On the other hand Karadag (2015) denied that small business is also trying to focus on
changes that help in identifying cost of products and services for improving the business in
future and maximize the profit for future.
M1: Demonstrating and investigating the range of entrepreneurship
ventures in both sectors
Entrepreneur ventures emphasizes on two steps which includes:
● Intrapreneurship: This range is considered bigger than entrepreneurship. A
company that includes intrapreneurship focuses on motivating and helping individuals
in making decisions effectively in both the sectors. This venture is used in private
sectors as individuals are not able to identify changes that increase the demand of the
business in future (Anwar and Daniel, 2016).

● Managerial entrepreneurship: In this phase an individual who is present in the
organization manages the infrastructure and also help employees in overcoming from
the problem that leads to downfall of small business in the upcoming future (Ellis and
Bosworth, 2015).
D1: Critically examine development, scope and growth of the
entrepreneurial ventures
Entrepreneurship ventures are important for improving the level of business in different
sectors. The developmental procedure is lowering down due to increase in recession in UK
market (Lampadarios, 2016). Individual are trying to identify areas where changes that need
to be made can be identified easily and also improve growth of the economy by innovating
new business tactics for increasing scope of earning profit in future.
On the other hand, increasing of profit help in operating small business very smoothly and
also improve the entrepreneurial ventures in future.
LO2:
P3: Assessing and interpreting data and statistics in order to illustrate the
importance of SMEs and micro business on economy
In improving the UK market relevant data need are collected for increasing the demand of
UK economy in the future years. In increasing the UK economy changes need to be made and
also incorporation of new ideas for betterment of small business firms in UK. There is around
5.6 million of small business which starter from the year 2018. On the basis of previous year
business population in private sectors decreased around 0.5% which is -27,000 business and
in the same year employment level increased only 2% which is +304,000 (Fsb.org.uk, 2019).
The business decreased by 1% which is -50,000 among small non-employing business and
for larger employee business the rate increased around 2% which is +23,000. The economy of
small business also changes as UK is not able to increase the demand of small business in
future.

Figure 1: UK statistics
(Source: Fsb.org.uk, 2019)
Small business in UK accounts to 99.3% especially in improving the business in private
sector during the year 2018 and for small business it automatically increased up to 99.9%
which helped the UK economy increase its demand for future (Fsb.org.uk, 2019).
Employment in the small business is around 16.3 million which equals to 60% of employees
in the private sectors. The annual turnover in small business was £2.0 trillion which is 52%
turnover in private sectors that are trying to increase the economy in future. In improving the
small business the level of employment is trying to increase for betterment of business and
increase in profit in future. During the year 2018 around 1.4 million individuals were
recruited in employing in business and 4.3 million individuals in non-employing business.
The profit or employment level in UK small business is not increasing as 75% of business did
not emphasizes on increasing employee rather focused on increasing demand of owners in an
organization (Fsb.org.uk, 2019). For increasing the demand of business changes that need to
be made is discussed and also focusing on improvement of business population in future.
[Refer to appendix 1]
P4: Explaining importance of start up business and SMEs in improving the
growth of economy
The importance of small and start-up business in UK need to incorporate various ideas that
can help increase in profit for future. Small business are not able to increase its profit due to
lack of growth in economy and also identifying areas where important changes can be made

in improving the infrastructure of business and also increase the demand of entrepreneur
business in future.. As stated by Dada et al. (2015) start up business need to focus on
information that is relevant and also useful in helping business for future. For improving the
business identification of employment rate increases the services for improving small
business in future and also increasing the demand of UK market.
M2: Evaluating difference between SMEs, large and medium business on
the basis of relevant data and statistics
In improving the small business identification of relevant data is incorporated for better
improvisation of UK economy in future. As explained by Georgiadis and Pitelis (2016) small
business needs to work on identifying areas where changes need to be done for better
identification of UK market and its demand in entering in to sector. On other hand medium
business has increased its level to 60-70% during 2018. Based on this increase medium
companies are trying to identify the strength and weakness of large companies so that they
can merge with large companies and increase their demand in future. The medium companies
also try in innovating new technologies that help in overcoming the problem of increasing
demand in future (Liu et al. 2015).
D2: Critical examination and impact of small business on various levels of
economy.
Small business tries in incorporating new ideas for entering into the UK market and increases
the demand of business for the future. Small business managers focuses on improving the
business in order pursue self employment and also increase the level of profit for entering the
UK market in future years (Gbadamosi, 2015). Due to small business many companies in
UK are not able to increase the entrepreneurship and organize seminars for increasing the
demand of business in future.

LO3:
P5: Determining the skills of being a successful entrepreneur:
Schumpeter’s Theory of Innovation
For being successful entrepreneur it is necessary to possess certain skills and traits so that it
can help in improving the small business in future. Skills and trait that is used in improving
small business include:
● Leadership skills: Entrepreneurs try to identify goals and help individuals in
following the goal and accomplish their task within a particular span of time and also
try in increasing demand of the small business for future.
● Proper communication skill- Communication skill help in getting relevant
information that can increase the demand of small business in future. For improving
the communication skill entrepreneur need to identify the strength and weakness of
employees for making the business effective and also focus on better communication
skill so that small business can increase its level in future.
● Risk taking: Growth of business depends upon the ability of receiving information
from the market and also identifies the challenges that increased the demand of large
companies for betterment of growth of business in future (Rostamkalaei and Freel,
2017).
● Focusing on the ability to increase small business in UK market: In becoming a
successful entrepreneur identifying the ability of business help in entering into the UK
market for betterment of small business in future.
● Proper visionary: Creative and perceptive visionary helps entrepreneurs in
calculating changes that can be made for making innovative business and also
increase profit of business in future.
● Motivation: One of the most important skills that are ingrained in becoming a
successful entrepreneur is motivating employees for increasing the profit of small
business in the future. Being motivated Help Company in increasing its demand and
also help owners in making easy entry into UK market for future betterment of
business (Morris et al. 2018).
● Proper financial and management skills: In improving the skill of entrepreneur
proper training need to be given and also help entrepreneurs in making decisions
effectively and also consult with managers of firms in case of concerning with money

and making proper financial decisions for future betterment of small business in UK
market.
Schumpeter's innovation of theory helps in identifying the innovation of the products and
services provided in improving entrepreneurship procedure for future betterment of small
business. As stated by Schumpeter consumers preferences that are to be considered for
improving the infrastructure of business for future.
Figure 2: Schumpeter’s theory of Innovation
Moreover, the theory also identifies the process the helps in economic development and also
identifies the structural changes that are for betterment of small business in future (Dana,
2015). The importance of this theory is that it is divided into five stages which improve the
innovation of business and financial aspects for future. The five stages include:
● Launching of new products
● Applying new methods for improving the financial aspects of small business in future.
● Opening of new scope for small business in future
● Acquiring new supply of goods that can help in improving the small business in
future.
● Innovating of new structure that can increase the monopoly position of firms in
improving business for the future.
Schumpeter'stheoryofinnovationlaunchingnewproductapplyingnewmethodsforbetterimporvementopeningnewscopesacquiringnewsupplyofproductsinnovatingnewstructure

P6: Assessing the aspects of improving the entrepreneurial personality
which reflects on the mindset and motivation based on the personality
received
For improving the business entrepreneurs try in identifying changes for motivating
employees and changing their mindset for better improvisation of the ideas and increasing of
small business in future. Improving of personality trait helps entrepreneurs in identifying the
changes that are to be made for better improvisation of products and services that are
manufactured in small business (O'Neill and Gibbs, 2016).
M3: Exploring differences and arguing on the entrepreneurial
characteristics
In increasing the demand of entrepreneurs helps in improving the small business in the future.
In increasing the demand of firm is not possible as members who are involved in improving
the business does not possess a good background which sometimes hinders the characteristics
and creates a major issue in improving the demand of small business in future. On the other
hand Michie (2018) states that identifying changes help entrepreneurs in improving their
characteristics for better identification of problems in future. It can also be said that
organizing seminars in any organization requires proper idea of changes that need to be made
for overcoming the entrepreneurial success in future.
D3: Analyzing characteristics traits, motivation and skill for becoming a
successful entrepreneurs
Based on the traits and motivation skill changes that can be made is identified for becoming a
successful entrepreneur. The most important trait “motivation” need to be improved as
entrepreneurs are not able to identify changes that creates a major issue in identifying proper
skills that help entrepreneurs in improving the small business for future (Baporikar, 2015).
The most important skill that helped entrepreneurs in increasing their business is getting
motivated from owners and in return increasing demand of profit for small business in the
upcoming future.