Entrepreneurship and Small Business Management Report

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ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT
1

Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
PART 1...................................................................................................................................... 5
TYPES OF ENTREPRENEURIAL VENTURES AND THEIR RELATION WITH THE TYPOLOGY OF
ENTREPRENEURSHIP............................................................................................................ 5
EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES..7
INVESTIGATE RANGE OF ENTREPRENEURIAL VENTURES IN CONTEXT TO PUBLIC AND
CORPORATE INDUSTRY........................................................................................................ 8
EXAMINE THE SCOPE, DEVELOPMENT AND GROWTH OF ENTREPRENEURIAL VENTURES...9
PART 2.................................................................................................................................... 10
INTERPRET RELEVANT DATA AND STATISTICS ASSESSING THE IMPACT OF MICRO AND
SMALL BUSINESS ON THE ECONOMY.................................................................................10
DEFINE SOCIAL ECONOMY AND EXPLAIN THE IMPORTANCE OF SMALL BUSINESS AND ITS
START-UP IN SOCIAL ECONOMY.........................................................................................12
DIFFERENCE BETWEEN SMALL, MEDIUM AND LARGE BUSINESS AT LOCAL, REGIONAL AND
NATIONAL LEVEL USING RELEVANT STATISTICS.................................................................13
IMPACT OF SMALL BUSINESS ON DIFFERENT LEVELS OF ECONOMY..................................15
PART 3.................................................................................................................................... 17
CONCLUSION.......................................................................................................................... 22
REFERENCES........................................................................................................................... 23
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LIST OF FIGURES
Figure 1: EMPLOYMENT OPPORTUNITIES BY SMEs IN UK......................................................11
Figure 2: CONTRIBUTION OF SME IN UK ECONOMY..............................................................12
Figure 3: SMEs CONTRIBUTION IN EMPLOYMENT AND TURNOVER......................................14
Figure 4: SMEs IN VARIOUS SECTORS OF UK ECONOMY........................................................15
Figure 5: SMEs CONTRIBUTION IN THE UK.............................................................................16
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INTRODUCTION
Entrepreneurship and small businesses have a significant role in the growth and
development of a UK’s economy. Entrepreneurship is a business owned and operated by
entrepreneurs who take risks and start a business with innovation with the motive of profit
maximization (Storey, 2016). Being a trainee consultant, the following report is prepared to
contain the description of various types of entrepreneurial ventures and to explain the
differences and similarities between them. The report would focus on the data and statistic
related to micro and small businesses and their impact on the economy. The difference
between small, medium and large businesses would be determined. The last part of the
report would lay emphasis on the skills and personality, background and experiences of
successful entrepreneurs of the UK.
Small businesses play a crucial role in fulfilling the demands of local people. Cyberdog is a
cyber-themed clothing shop in London that offers clothing and accessories to the residents
and tourists visiting London (Scarborough and Cornwall, 2015).
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PART 1
INTRODUCTION
Entrepreneurship is a process of running a business with innovation and risk in order to
achieve business objectives. An entrepreneur is a person who starts a new venture with high
risks and innovating something new for the market and earns profits and bears loss for the
business on his own (Storey, 2016).
TYPES OF VENTURES IN ENTREPRENEURSHIP BUSINESS AND THEIR
RELATION WITH THE TYPOLOGY OF ENTREPRENEURSHIP
The various types of entrepreneurial ventures can be explained as:
Small business Entrepreneurship: The small business is owned and operated by an
individual in the form of grocery stores, travel agents, consultants, electricians, carpenters,
etc. aiming to earn profits and invest funds in business through friends or family
(Scarborough and Cornwall, 2015).
Scalable Startup Entrepreneurship: The entrepreneurs start a new venture with the vision
of changing the world by attracting venture capitalists or financial investors for investing in
their venture. They operate the business focusing on the repeatable business model. For
example, Facebook introduced by Mark Zuckerberg earning high returns by investing in
software (Storey, 2016).
Large Company Entrepreneurship: The business is operated with the help of creativity and
innovation by introducing new products for the new markets considering the factors of the
environment such as consumers' needs and preferences, technological development,
competitors, legislation, etc. (Storey, 2016)
Social Entrepreneurship: social entrepreneurs innovate products in order to solve issues
and problems of society. The business may be profitable, non-profitable or hybrid but the
ultimate aim is to make the world a good place to live by serving the society (Storey, 2016).
The entrepreneurial ventures are interrelated with the typology of entrepreneurship can be
explained as:
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Individual entrepreneurship: These types of entrepreneurs can be related with the scalable
entrepreneurs as they have a little or no experience but they start a business with
innovation in earn profits and take the responsibility of all the risks and rewards of the
business.
Public entrepreneurship: The public entrepreneurship is related with the social
entrepreneurs as they aim to provide benefits to the society by offering innovative products
at reasonable prices to solve their issues and raise the standards of living of the people. For
example British Broadcasting Corporation (Leyden, 2016).
Corporate entrepreneurship: these are related to the large company entrepreneurship as
they operate the large business and offer innovative products and services to the consumers
and generate high revenues from the business.For example Google (Kuratko et al. 2015).
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EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
There are four types of entrepreneurial ventures and they all are similar and different to
each other in some ways as per their nature and motives of the business.
ENTREPRENEURIAL
VENTURES
SIMILARITIES DIFFERENCES
ENTREPRENEURIAL The entrepreneurs and
intrapreneurs are similar
because of their risk-taking
attitude in the business
(Carterand Tamayo, 2017).
The entrepreneur is different
from the managers as the
entrepreneurs are the
owners of their startup
business and the managers
work under the owner of the
enterprise.
INTRAPRENEURIAL The intrapreneurs are similar
to the entrepreneurs as they
action-oriented, self-
motivated and take decisions
in the business on their own.
They differ from the
entrepreneurs as they
promote innovation in the
organization but within the
limits of the business unlike
the entrepreneurs who can
take high risk and bear losses
if occurred (Carterand
Tamayo, 2017).
MANAGERIAL The managers are similar to
the entrepreneurs as they
managers the subordinates
and take decisions and
actions in the business on
their own (Carterand
Tamayo, 2017).
The managers are different
from the entrepreneurs and
the intrapreneurs as they do
not take risks if not
necessary.
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INVESTIGATE RANGE OF ENTREPRENEURIAL VENTURES IN CONTEXT TO
PUBLIC AND CORPORATE INDUSTRY
The aim, objectives and operations of the public and corporate sector are different from
each other and thus, the entrepreneurs act differently in both sectors. Entrepreneurship is
present in both the sectors and can be discussed as follows:
Public sector entrepreneurship: The entrepreneurs under the public sector aim at offering
best quality services to the society at a reasonable cost in order to raise their living
standards and their activities are overlooked by the government of the country (Leyden,
2016). The social entrepreneurship ventures come under the public sector aiming at offering
social service for the betterment of the society by providing employment opportunities,
encouraging the growth of the country, etc.the entrepreneurs operate the business ethically
fulfilling their corporate social responsibility and thus, focusing on the welfare of the society
(Leyden, 2016).
Corporate sector entrepreneurship: The entrepreneurs in this sector aim at achieving high
profits by enhancing the satisfaction level of the consumers and attaining the desired
objectives of the business. The scalable and large Company entrepreneurship ventures work
under corporate sector (Kuratko et al. 2015). The entrepreneurs innovate new products and
services by coming up with the technological advancement involving high risks in the
business and conducting market research to analyse and understands the needs and
preferences of the customers. A large number of funds are invested in the business by the
entrepreneurs and they expect to earn high returns in the corporate sector (Kuratko et al.
2015).
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EXAMINE THE SCOPE, DEVELOPMENT AND GROWTH OF
ENTREPRENEURIAL VENTURES
Scope: entrepreneurial ventures have a vast scope into various sectors of the economy such
as public sector, industrial sector, agriculture sector, etc. Therefore, an entrepreneur can
start a new business by investing funds and offering innovative products or services to the
customers in any sector to earn profits (Europa, 2018).
Development: With the decrease in the recession in the UK, the development of the
business sectors in increasing rapidly. The young generation of the country is also interested
in starting their own ventures and bringing innovation in their ventures that help in the
welfare and development of the society (Europa, 2018).
Growth: The growth of the entrepreneurial ventures in the UK is increasing every passing
day as a large number of small business start-ups are running in the UK as per its statistical
records. According to the statistics, 99.03% of the business running in the UK is small and
medium-sized those are providing large employment opportunities that result in the growth
of GDP of the country (Europa, 2018).
CONCLUSION
Thus, it can be summarized that there are various kinds of ventures and they are
interrelated to the typology of entrepreneurship. Also, the managers, intrapreneurs and
entrepreneurs are similar and different from each other on the basis of their nature and
activities performed by them in business.
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PART 2
INTRODUCTION
The small businesses in the UK play a crucial part in the growth of the UK’s economy as they
provide large opportunities for employment and contribute to the rise in the GDP of the
country. The small and medium-sized businesses are running in different sectors that
contribute to the growth of the UK's economy.
INTERPRET RELEVANT DATA AND STATISTICS ASSESSING THE IMPACT OF
MICRO AND SMALL BUSINESS ON THE ECONOMY
The small business enterprises run the business with less than 250 employees and the micro
businesses consist of less than 9 employees in the business. According to the Statistical
records of 2016, the small businesses totals up to 5.4 million and the micro businesses in the
UK were 5.3 million. The number and weight of the SMEs in the country are growing rapidly
and they are a great source of revenues for the economy (Europa, 2018).
Figure 1: EMPLOYMENT OPPORTUNITIES BY SMEs IN UK
(Source: Europa, 2018)
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According to the above figure, it can be stated that there are 90%SMEs in the UK that has
increased the employment opportunities up to 70% in the country in past five years by
giving employment to more than 24.3 million people in the private sector that covers up to
80% of the total employment of the country. According to the statistics, it can be estimated
that the SMEs provide 25,000 job opportunities every year in the UK’s economy (Flynn et al.
2015).
Figure 2: CONTRIBUTION OF SME IN UK ECONOMY
(Source: Flynn et al. 2015)
According to the above figure, it can be stated that the SMEs can be referred to the engine
room of the UK’s economy and it would add a value up to £217 billion in the country’s
economy by 2020. The number of SMEs in the country will increase by 20% until 2020 (Flynn
et al. 2015).
Impact of micro and small business:
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The revenues generated by small businesses have a great impact on the country’s economy
than the micro businesses. The SMEs in the country count up to 99% of the total businesses
creating huge competition in the industry of the economy (Flynn et al. 2015).
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