ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT: UK Business Report

This report provides a comprehensive analysis of entrepreneurship and small business management, focusing on the UK context. It begins by defining entrepreneurship and differentiating between various types of ventures, including micro, small, medium, and large organizations, highlighting their similarities and differences. The report then examines the scope, development, and growth of these ventures, emphasizing the importance of strategic planning and risk-taking. A significant portion of the report is dedicated to the impact of micro and small businesses on the UK economy, exploring their contribution to job creation, innovation, and overall economic growth. It also critically examines how small, medium, and large businesses influence the economy at different levels. Furthermore, the report assesses entrepreneurial characteristics, motivations, and mindsets, and evaluates the influence of personal backgrounds and experiences on entrepreneurial endeavors. The conclusion summarizes the key findings and emphasizes the importance of entrepreneurship in driving economic development and societal progress.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Different types of entrepreneurial ventures, exploring their similarities and differences ..........2
Critically examine the scope, development and growth of entrepreneurial ventures..................4
TASK 2............................................................................................................................................5
Impact of micro and small businesses on the economy...............................................................5
Critically examining how small, medium and large businesses have an impact on different
levels of the economy..................................................................................................................6
TASK 3............................................................................................................................................7
Assessment of how entrepreneurial personality reflect entrepreneurial motivation and mindset
......................................................................................................................................................7
Exploring and examining different lines of argument relating to entrepreneurial characteristics
......................................................................................................................................................8
TASK 4............................................................................................................................................8
Analysis of entrepreneurial characteristics with influence of personal background and
experience ...................................................................................................................................8
Critically evaluate about background and experience with entrepreneurship.............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Entrepreneurship is the setting of business to make profits by taking financial
risks. There are several activities that emphasis in the formation of entrepreneurial
activity and enterprise development (Malerba and et.al., 2015). They are refereed as
tradition destroyer by innovation and progressive mindset. The human resources'
utilization for generation ideas to build wide range of activities and services is the path
of entrepreneurship. This assignment is based on gaining knowledge about the
similarities and dissimilarities of entrepreneurial ventures along with relation with
typologies. In addition, it includes about the impact of micro and small businesses on
the economy of United Kingdom. This also highlights the characteristic traits, skills and
motivational drivers of entrepreneurs with critical evaluation of two successful
entrepreneurs. Along with these, it describes the impact of background and experience
of entrepreneurs in both positive and negative terms.
TASK 1
Different types of entrepreneurial ventures, exploring their similarities and differences
Entrepreneurship is defined as the amalgamation of innovation and excellent
interpersonal skills of an individual to attain benefits and profits in terms of brand image
and monetary gains (Schmitz and et.al., 2017). There are several parameters such as
risk taking abilities to recognise opportunities in the marketplaces and passionate to
bring the product through several entrepreneurial activities.
There are several types of entrepreneurial ventures and includes micro, medium
and large sized organizations. The following are the differences between them for better
understanding.
DIFFERENCES
Micro/Small
organization
Medium sized
organization
Large organization
Definition This is that business
where fewer or less
than a hundred
employees are
It is that type of
entrepreneurship where
more or equal thousand
employees are hired and
This is that business
that include around
thousand and number
of staff and has annual
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involved. Mostly, it is
initiated by a single or
group of few
individuals and has
around 10-50 million
dollars as annual
revenues.
contains more than 50 to
one billion dollars as
annual revenues.
revenues of over one
billion dollars
Goal To develop the
strategic planning
based on sustainability
and profitability for
reaping long term
benefits
To attain a long term
income by self direction
and passionate expertise
To generate
astounding profits and
revenues
Capital
Provider
This is based on
personal funds or
loans from families or
friends. Furthermore, it
focuses on taking
micro loans and bank
loans as well.
It emphasis on using
number of finance
providers that include 2-3
banks and consists of
bank overdrafts, loans,
cash flow finance etc.
This includes
economic concepts
like subsidiaries, tac
credits and revenues
Results
obtained
This has the ability to
generate substantial
amount to pay income
taxes and generate
jobs on smaller scale.
Additionally, the goods
or services are both
types including leisure
and necessitated for
development.
These are significant for
providing financial
assistance to the founding
members and provide
qualitative delivery of
services and products.
These are known for
the largest employee
generation in the
society. Its reputation
and brand image is
remarkable and are
the providers of
several high end
products or services
(Acs, Szerb and Autio,
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2017).
Example
s
Retail stores,
restaurants etc.
Small operations
companies; mostly self
employed individuals or
one person initiated firms
Corporations like
retailing such as Zara
and companies like
GE, General Motors
and more
SIMILARITIES
The following are the similarities between three ventures:
 These three types are based on the basic entrepreneurial process that shed light
on the three phases such as opportunity recognition, opportunity development
and opportunity exploitation. For e.g. the agenda for all the three ventures is
same to earn profits.
 These are interconnected with three variables like independent, dependent and
control variables for attracting customers and attaining growth through
optimization of resources.
 It is important for country's economic growth and also assist in employment
generation (Barringer, 2015). Mostly these are self funded and slowly grows into more entrepreneurial in
nature. For e.g. small businesses are the start ups which takes loans or start the
business with family support
Explain how they relate to the typology of entrepreneurship
These three venture types are inter related with the typologies to understand the
market analysis for better execution of strategic planning. Along with, it lays emphasis
on improving the teaching and overall orientation towards growth. The below mentioned
are few typologies of entrepreneurship.
Lifestyle Businesses: These are independent ones where the founder's knowledge and
skills are significant in achieving the residual income. For e.g. freelancers and MicroEnt
Social Good Organisation/Businesses: These are businesses which is innovation based
and leads a sustainable objective to earn profits. For e.g. non profit organizations,
companies involved in health issues.
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Scalable Start up: These are heavily invention led and leads towards the high-tech
companies via risk capital or non dilutive capital through Angel Investors (Morris and
et.al., 2018)
In regard to the above, these typologies are essential to understand the job-
creation and pathways to opportunity in relation to the types of entrepreneurial ventures
in order to gain high growth and reaping financial benefits in a systematic manner.
Critically examine the scope, development and growth of entrepreneurial ventures
There is a wide link between the scope, development ad growth of all the
mentioned entrepreneurial ventures (micro/small, medium sized and large sized). These
parameters assist in restructuring of business portfolios to manage any transformational
changes with cooperation and team work at both public and corporate levels.
Nevertheless, the scope defines the competencies in terms of skills, manpower, product
types, location etc. Development and growth are related to the revenue management
and the profitability levels which is dependent on the effectiveness of applied knowledge
and skills set. On the other hand, it is demonstrated that risk taking and challenge loving
individuals are only able to use entrepreneurial skills. The growth is proportional to one's
competencies and urge to strive excellence in context to profits and financial growth
(Malerba and et.al., 2015). These are Thus, there is an urgency in gaining insights to
evaluate and identify the components that has an impact of entrepreneurship on both
public and private sectors.
TASK 2
Impact of micro and small businesses on the economy
Importance of small businesses and business start-ups to the growth of the social
economy
Micro and Small businesses (SMB) are defined as the businesses where the
turnover in terms of revenues and complete taskforce are considered. A micro business
is the one where less than ten workers with below two million euros as turnover is
considered. Whereas a small enterprise is the one which has less than fifty employees
with turnover of below ten million euros. These two when combined for smooth running
of operations to meet the expectations of customers by maintaining delivery and quality
of services or products. These are also named as 'Mid-market'. For instance,
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approximately 5.6 million small businesses were established and in UK, around
99.3 % constitute to the small and private businesses. Along with, one-fifths of the
total SMB's are in the construction sector (Curran and Storey, 2016).
Furthermore, their role is primary in for the maximum employment generation
and has contributed in maximum amounts to enhance the United Kingdom's economy. It
is evident that these SMB's are independent and non subsidiary ventures and contribute
to radical structural changes and gaining competitive advantages. Their existence led to
evolutionary progress in the business world and gave the inner boost to bring innovation
and sustainability together. Along with this, innovation is the key feature and studies
have been found that these SME's are thrice innovative when expanded at international
marketplaces as compared to the domestic markets. For the same, there were 1.4
million employing businesses and 4.3 million non-employing businesses which
directly inferred towards two-thirds of businesses contribution that did not take
any outsider in the year 2018. It also has been reflected that the combined turnover
of all SME's constitute to 52 percent of private sector turnover and is
approximately two trillion pounds (Hillary, 2017).
In regard to this, these small and medium sized businesses are also significant
for the business start-ups for bringing sustainable growth of the social economy. Herein,
with advent of new communication tools and channels, such SMB's are flourishing their
businesses and reaching widespread customers and clients as well. Moreover, the
consumer preferences are changing with dynamics of the business environment which
led to job creation (The Economic impact of Brexit, 2019). Thus, it is useful in uplifting
the financial status of individuals at societal levels. Such enterprises are driven by
usage of technologies and services related to research and development and the
services for information processing and more (Boosting UK productivity with SME
growth, 2016). The overall impact of such SMB's have many advantages which paved
the path of flexible approaches and enhanced economies at all the levels in terms to
local, regional and national levels. Thus, these have an astounding impact on the
overall development of the standards of living and career growth for the individuals
working under this sector.
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These SME's are the backbone of the UK's economy and the following two small
type firms and their contribution are important to understand the overall impact at
national, regional and local level. First firm is Unit9, which has more than 150
employees and are looking its multi disciplinary areas like digital technology etc. Its
adaptability is reflected by its operations being conducted in all around the world like
London, Poland, New York and more. This shows its importance at national levels and
also help in bringing profits at local and regional levels as well.
Second firm is named as First Mile, established in 2003 and collected more than
30000 tonnes of waste in 2017 in London and Birmingham. Its aim is to generate
awareness about the corporate recycling processes and making other companies more
environmental responsible. Its size contains volunteers and around 67 vehicles which
emit less CO2 than a London bus. Both the firms has increasing revenues and profits
and gaining recognition for its works on all the levels by maintaining the GDP, social
scenarios and aid in job creation.
Critically examining how small, medium and large businesses have an impact on
different levels of the economy
The three types of entrepreneurial ventures (small, medium and large
businesses) has influenced the international marketplaces through enhancing the
economy on all the social levels. It has been clearly indicated that these businesses and
firms have contributed to the economy of the country at both local and regional levels.
Job creation and innovation has been promoted which bridged the societal gaps and
formed the basis of social growth at the national levels. Moreover, the living standards
and health awareness have been incorporated to gain an understanding for better living
and bright future to bring changes at individual levels (Jones, Borgman and Ulusoy,
2015). However, it is also important to improve standards of living of people through
foreign direct investment and global market strategies that led to collaborations and
sometimes affect the growth and development of inhabitants of that location. Along with,
it has also seen that there are high risks attached in order to be successful and majority
of start ups fail due to commercial and non commercial parameters of the business
world. Therefore, these ventures have both positively and adversely impacted the
economy on both macro and micro levels.
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TASK 3
Entrepreneurs born or made
Entrepreneurs are born since they have innate abilities to keep going and taking
risks and challenging tasks. It is important to understand that there are many
demonstrations that showed these individuals are creative, self directed, determined
and persistent. Their management skills are impeccable with good communication and
negotiation skills to flourish their businesses in proper manner.
Key aspects of an entrepreneurial mind set
The following are the aspects to understand about the mind set of an
entrepreneur.
Characteristic traits: Entrepreneurs must be flexible in adjusting to the prevailing
conditions for establishing the businesses. Along with, they must have strong work
ethics to manage the social responsibility factor towards sustainable development. Next
is persistence which indicates towards continuous movement despite facing any
challenging situations and issues.
Skills: Their vigilance to grasp the technological advancements and utilization of
newer techniques for better accessibility and gaining attention of customers is vital. For
this, they use their problem solving abilities and are creative to bring something new
for sustaining in the competitive business world. Alongside, risk taking is one of the key
features to face the cut throat competition.
Motivational drivers: Entrepreneurs must be independent and set up a deadline to
achieve the specific targets and objectives. Their ahead planing schedule assist in
looking to all the aspects for starting any project. Such far sightedness lead to self
motivation among the taskforce which ultimately promote passion, commitment and
dedication to reach the objectives in effectual modes.
Therefore, these characteristics traits, skills and motivational drivers of the
entrepreneurs are important to understand the sincere recognition and continuous
efforts and hard work to reach the desired outcomes by using positive qualities and
strong work ethics (Kuratko, 2016). Moreover, there is also a need to understand that
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lifestyle patterns of an individual and background has an impact while doing business. It
has also emphasis on their family and cultural values that support them during the
struggling and challenging phases. Such mindset help in building up their worth and
praise among the seekers who look forward and realise the importance of profits and
revenues generation.
Exploring and examining different lines of argument relating to entrepreneurial
characteristics
According to Liu and Almor, (2016) good entrepreneurs are good in identifying
the talents and skills in others to use it for their own benefits. Their determination for
building networking to maintain cordial relations is significant for expansion plans.
Hietanen, (2015) elucidated that entrepreneurship is determined by the implementation
of structured and unstructured strategies to fulfil the requirements and demands of the
customers' and markets. There is need of quick decision taking with confidence to cope
with any burning issue to give support and guidance to the taskforce. However,
Antonaci and et.al., (2015) critiqued that there is lack of certainty and risk of financial
losses when starting any entrepreneurial project which impact the credibility in the
marketplaces at both local and global scales.
TASK 4
Different environments that foster or hinder entrepreneurship
There are several environments that frame the entrepreneurship skills and
mindset. It involves family and educational background, economic status. Personal
characteristic traits and cultural values with beliefs system. There are many factors that
help the entrepreneurs to flourish the business either in positive or negative manner. It
is evident that personal background and experience of entrepreneurs are beneficial in
building the business to reach the desired goals and objectives. The factors are as
follows:
Personal factor: This consists of family's economic status and the overall impact on the
individual. It helps the person to grow and
Socio-economic factor: It is directly proportional to the religion/cultural background of
an individual. This supports in the overall strategic planning to gain financial assistance.
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Cultural factor: This comes under the personal domain which reflect upon the beliefs'
system and thought processes. Here, the family influence is in larger extent in shaping
the mindset and personality type.
Technological factor: This helps in enhancing the entrepreneurial venture by
understanding the latest events and updates on the markets (Kuckertz, Berger and
Mpeqa, 2016).
Two entrepreneurial characteristics with influence of personal background and
experience
Here, the contribution of James Dyson and Richard Branson has assisted in
underpinning the evidence on the measurements of hindrance and support in context to
entrepreneurship. James Dyson is one of the innovators of 21st century who brought
remarkable changes in profound manner. His discovery of bag less vacuum cleaner
based on dual cyclone was rejected by several UK manufacturers as it was an invention
which was ahead of its times. However, with consistency and passion, James launched
it in Japan under the cataloguing sales. Along with, he established a university named
as Dyson's Wiltshire Campus and is spending substantial amount on the UK's biggest
research and development. He spent years in discovering this vacuum cleaner and
survive on his wife's salary which shows his passion towards the venture.
His zeal, passion and determination is similar on the lies with Richard Branson,
who started his first entrepreneurial venture at the age of 16 in the form of magazine.
Later he opened record stores called Virgin Records and expanded his business into
Aviation industry by setting up of Virgin Atlantic Airlines. The risk taking abilities and the
self motivation to carve the niche markets has been one of the strengths of Richard who
was knighted for his services to entrepreneurship. It might be surprising to know that he
was a dyslexic and was poor in academics and was completely discouraged by his
principles. Although his persistence and complete support from his parents gave wings
to his creativity ad he built his own empire ad became a billionaire with an estimation of
more than 5.1 billion US dollars (Muegge and Reid, 2018).
Consequently, these two success stories has shed light on the entrepreneurial
abilities that are required to reach the desired objectivity and with never say no attitude.
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One's personal experiences and background are pivotal in framing the mind set with
effectiveness and productivity. There is a downside to it as it depends solely on an
individual and the ability to turn the struggles' and adversities into opportunities or vice
versa. Thus, it can be inferred that this acts as a hindrance or a booster to maintain the
entrepreneurship.
Critically evaluate about background and experience with entrepreneurship
In regard to the above, James Dyson is a known design engineer who studied furniture
and interior designing components and took its knowledge to another levels by
constantly developing and creating inventions to prevail ease at societal levels. His
innovative vacuum cleaner came into existence after 5130 prototypes and living on
his wife's salary for five years. This showed that he had self belief, commitment
and passion to bring his invention into the UK markets despite the consistent
struggles (Goff and Butler, 2016). However, he faced many difficulties from the
many manufacturers who made fun of him and rejected his idea. Alongside, he
lived on his wife's salary during that time and was laughed by the society . He
would have given up, yet he never stopped and brought all his creative
demonstrations in unique ways. Thus, for an entrepreneur, motivation and risk
taking ability are significant to excel in the venture as there is more probability of
failure.
Additionally, Richard Branson did not receive any formal education, however he
created the empire in music, retailing and airlines sectors with passion and hard work
and never gave up on his dreams. His initial attempts were failed miserably and several
controversies followed him and his brands, yet he continuously moved ahead and took
all difficulties with optimism. If he would have fear of failure and no leadership qualities,
he would not be standing where he is currently now. Thus, it has been found that
entrepreneurship requires time management, strategic leadership and problem solving
abilities to take challenges and performing in positivity. Lastly, background and
experience are necessary tools to facilitate learning phases for achieving success in this
sector.
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