Report on Entrepreneurship & Small Business Management Analysis

This report provides a comprehensive analysis of entrepreneurship and small business management, dividing the discussion into two main parts. Part A explores various kinds of entrepreneurial ventures, including small, large, and social businesses, and relates them to the typology of entrepreneurship, such as lifestyle and growth firms. It highlights the similarities and distinctions between these types and assesses the impact of micro and small businesses on the UK economy, referencing statistics and data to illustrate their role. The importance of small businesses and start-ups in the growth of the social economy is also emphasized. Part B delves into the characteristics, traits, and skills of entrepreneurs, examining key aspects that reflect their personality and background. It also considers environmental factors that either hinder or foster entrepreneurship, drawing a comparison between the roles of small business owners and entrepreneurs and their influence on venture success. The report uses examples to illustrate the traits of successful entrepreneurs.

9- Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship. 3
Similarities and distinction between types of entrepreneurship..................................................4
Assess and interpret the statistics and data in order to illustrate how micro and small business
impact the economy....................................................................................................................5
Importance of small business and start ups in growth of social economy..................................8
PART B............................................................................................................................................9

INTRODUCTION
The small business deals with established and known offering while the entrepreneurial
venture focuses on the innovative and new offering and because of this, the owner of small
business tend to make deal with the known risk while entrepreneurs are risk takers wherein they
undertake unknown risk (Herron, 2020). This report is split into two, wherein it will deal with
types of ventures, impact of small business on the economy and key aspect of entrepreneurial
mindset. Further it will include examination of varied environment which hinder and foster
entrepreneurship.
PART A
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship.
The entrepreneurial venture is the one which is started and run by a person with limited
level of resources and involves high risk. The main objective associated with it is the profitability
and growth and the specific business is mainly characterized by the strategic and innovative
approach. The various kinds of ventures are discussed below- Small business: These are the enterprises which have limited number of employees
which ranges between 0-49 and are often funded by family, friends, small business loans
and personal savings of the owner. Their main aim is just to earn their livelihood by
generating sufficient profit as do not want to take over an industry due to insufficient
profit. Large business: These are those enterprises which have more number of employees as
compared to small business and are often engaged in offering new product or service to
the customers as per their taste and preference, competitors, laws, etc. They are often
engaged in launching the variants of their core products and are aimed to grow and
expand their operations in order to capture large market share (Schaltegger, Beckmann
and Hockerts, 2018).
 Social business: These are the not for profit organizations which are aimed only to tackle
and overcome the social problems and needs. They are welfare organizations who raise
the standard of living of people through their product or service.
Typology of entrepreneurship

In a field of entrepreneurship, typology is something which explains the classification of
kinds of entrepreneurship. These are illustrated thereunder- Lifestyle firm: These types of ventures are aimed to improve the living standard of the
people by quality product and services being offered in market and due to its social
working, it offers employment to the people so that they can earn their livelihood and
improve their living standards.
 Growth firms- These are the enterprises which are aimed for growth and expansion so
that the venture can flourish. It is suitable for the large and small scale business as they
have the ability to grow due to their sole motive of generating profit (Sauka and
Chepurenko, 2017).
Similarities and distinction between types of entrepreneurship.
Differences
Basis Small Large Social
Equity The equity of this
enterprise is held with
the owner.
The equity rest in the
hands of public,
investors and owners.
The members of the
firm are owners.
Objective To generate profit To earn profit and
grow and e3xpand the
business.
Create sustainable
solution for the
social problems or
causes.
Similarities
Basis Small Large Social

Living standard They offer the quality
products to the people
so that their standard
of living is enhanced.
They offer
employment
opportunities and
quality goods and
services to people so
that their living
standard is enhanced.
These businesses are
aimed to improve the
lifestyle of people by
overcoming their
social issues and
problems.
Ability to find
opportunities
The owner scans the
environment and
identify the
opportunity so that it
can profit out of it.
These firms have the
task of identifying the
potential opportunities
so that growth is
ensured of it
(Anggadwita and et.
al., 2017).
The social enterprise
grabs the opportunity
to solve the social
issues.
Assess and interpret the statistics and data in order to illustrate how micro and small business
impact the economy.
There are many types of business enterprises which affects the economy as their
contribution is major in it. The various kinds of businesses are discussed below- Micro- These are those enterprises which is so small in number that it has employees
from the range of 0-9. their annual turnover is below 2 million pounds. Small- The enterprises which are categorized in this are the one which has workforce in
number between 10-49 and their annual turnover is less than 10 million pounds. Medium- The firm which is included in this category is the one which has employees in
the number of 50-250 and their annual turnover is mainly less than 50 million pounds.
 Large- The business which comes under this head is the one which is large in scale as it
has more than 250 employees and its turnover on annual basis is more than 50 million
pounds (Massi, Vecco and Lin, 2020).
Factors which impact on the economy

The small and micro businesses plays a prominent role in the economy of UK. As per the
recent research being conducted, it was found that the small scale businesses has high growth
rates as compared to other enterprises. Due to immense level of support from the government to
the small and medium enterprises such financial schemes to provide loan facilities, etc. helps in
boosting their business. One such factor which helps in boosting the economy of UK includes the
high turnover rate. The increasing turnover of SME shows significant growth in economy as
there is more sales and revenue generation which helps in more more taxation and income for the
economy.
Another factor is export opportunities which helps in enhancing GDP as there is
exchange of foreign currency in the nation which directly increases the GDP of the nation,
thereby resulting in boosting the economy (Van Horne and et. al., 2021).
Illustration 1: Micro business Britain Survey, 2018
Text 1: Turnover of micro business- By Region

Another factor is employment opportunities. the below mentioned graph clearly indicates
that the small business provides more employment opportunities as compared to other two
businesses, namely medium and large business. They provide approximately 98.3% of the jobs to
people which results in high per capita income.

Impact on various economies- Regional- The small and micro business in UK contributes in the development of
regional economy and supports also the local community in various manner. For instance,
it provides job opportunity to the local people which increases the employment rates and
improves their spending habits. Local- The micro and small business also contributes in uplifting the local economy as
these businesses provide the people those places which can help them to socialize while
also allow them to have easy access to the essential commodities. For instance, the coffee
shops or restaurant allow to socialize while small shops of groceries, medical, etc. helps
in fulfilling the need of essential goods which helps in improving living standard of the
people as well as boost local community.
 National- The SME in UK helps in uplifting the national economy of the nation as it
offer employment opportunity to the people which results in enhancing the per capita
income and thereby leading to contributing in GDP of nation. It also inspires innovation
by creating new processes or technology that can add value to the industry (Bharathi and
Kaveeswarar, 2017).
Importance of small business and start ups in growth of social economy.
As the small business does not get much attention in the world of business yet they are
considered as the backbone to the economy as they keep the economy functioning. The
importance of business start-ups and small business is illustrated below- Job opportunities- The people who works in small business are essential asset in every
kind of business. The people who are unable to get employment in large organizations
tends to be the valuable asset for small business and gets the job in kit which reduces the
unemployment rates.
 Living standard- The start-ups and small businesses offers quality offering to the people
which helps in improving their standard of living. Moreover, the job opportunities
provided also helps in raising their living standard as their purchasing power enhances
due to a new source of income (Shaver and Carsrud, 2018).

PART B
Notes: There is thin line difference between the owner of small business and an
entrepreneur but their role is common. This PPT will include traits and characteristics of
entrepreneur, key aspects which reflect its personality and background and experience of
entrepreneur which hinder and foster entrepreneurship

Notes:
Characteristics: Motivator - An entrepreneur is the greats source of motivation for its team as it is
motivated by its nature. They are the strong believer that their hard work and efforts in
making the venture successful will provide them reward of the material success. Both
Tom Mercer and Elizabeth have this characteristic which made them successful in their
career as they get motivated and motivate other. This characteristic is missing is manager
as it only gets the work done rather than encouraging others to do.
 Passion - The entrepreneurs are driven by their passion towards their goods or services
and the desire in order to make the difference. The passion helps in sustaining the
entrepreneurs at such time when there is discouragement. Elizabeth and Tom both have
the passion for establishing the enterprise which makes them distinguishable from
manager as they work with desire and passion (Moore and Prabhu, 2018).
Traits : Creativity - An entrepreneur is the innovator and as creativity skills which makes it
different from managers. They bring creative and innovative idea so that they can

establish the venture and make the mark in the economy. Tom mercer and Elizabeth have
the ability to convert their creative idea into the reality so that they can be successful.
 Leadership quality - As it is strongly said that leaders are born and not made and in the
same manner, the entrepreneurs are leaders which efficiently guide and direct the team in
order to convert their idea into successful venture. Elizabeth and Tom both have this trait
which makes them different from manager as they lead their team in an effective manner.
Skills: Risk taking - The entrepreneurs are the risk takers as they have ability to calculate the
risk and they have the mindset that never shy them to take the risk as they have
understandability that the risk can result in tremendous success. The manager do not
have this skill as they only assign work rather than think about risk taking.
 Creative thinking - It is the backbone for the innovation and it forces the individual to
think in different manner. The individual with this skill do not hesitate to try varied
solutions due to failure fear. They think out of box in order to develop innovative ways
so that solutions are brought for business issues (Yuan, Hong and Wu, 2021).