Entrepreneurial Ventures and the UK Economy: A Report

Desklib offers solved assignments and past papers to help students succeed.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (LO1 & LO2).......................................................................................................................2
a) Critically examining scope, development and growth of entrepreneurial ventures in your
borough. Various kinds of entrepreneurial ventures within the private and public sector and
examining their similarities and differences................................................................................2
b) Critically examining how small businesses have impacted on the economy making
reference to relevant data and statistics. Illustrate the importance of small businesses to
economy and the growth of the social economy using data and statistics. Draw comparison to
medium and large businesses.......................................................................................................5
Task 2 (LO3 & LO4).......................................................................................................................9
I Analysing the characteristics traits, skills and motivational drivers of successful
entrepreneurs providing examples of well known British entrepreneurs....................................9
II Critically evaluating how their background and experience has influenced them both
positively and negatively using examples.................................................................................16
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

LIST OF FIGURES
Figure 1: People employed in SME.................................................................................................6
Figure 2: SME registered in PAYE and VAT.................................................................................7

LIST OF TABLES
Table 1: Different entrepreneurial ventures.....................................................................................3

Introduction
The competitiveness in business has risen at immense rate from different types of firms in which
entrepreneurs have owned small businesses by meeting daily consumer needs. The business plan
is created for selling products and services with limited resources and higher risk taking factors.
In current report, the chairperson of UK local council will aim on determining growth, scope and
development of entrepreneurial ventures in country by elaborating different kinds of firms that is
operated through entrepreneurs including similarities and differences. It will further examine the
importance of small business to UK economy by using appropriate statistics and data. Using the
data significance of start ups will be discussed to social economy by comparing large as well as
medium firms. In addition, the study will evaluate characteristic, skills, motivational and traits
drivers within British entrepreneurs that provides help in becoming successful entrepreneurs. At
last, it will further analyse experience and background that impacts entrepreneur either in better
or negative way with different examples.
1

Task 1 (LO1 & LO2)
a) Critically examining scope, development and growth of entrepreneurial ventures in your
borough. Various kinds of entrepreneurial ventures within the private and public sector and
examining their similarities and differences
Entrepreneurship is defined as activity that considers land, natural resources, labour and capital
for developing products and services for obtaining higher profits. The term helps in enhancing
future growth by initiating innovation and creativity while creating products. The evaluation of
business opportunities creates successful entrepreneur. The entering with new plan and strategic
idea in market with correct direction requires managing and performing task in risky manner. In
the context of entrepreneurial activities, the major consideration for planning business is due to
increase in sales, resource utilization, resources distribution etc that helps in gaining competitive
and higher success in business (Burns, 2016). As chairperson of UK’s local council, it was found
that different types of firms has been developed and planned with variety of sizes.
Entrepreneurs are determined as individuals that hire risk for managing business for targeting the
rewards and profits by maintaining fresh and new process, techniques, opportunities as well as
products that helps in effective coordination of business firms. On other side, intraprenuer refers
to business employees or staff that are appointed or recruited for developing single department in
business with effective remuneration expectation and utilising resources in judicial manner. All
such activities in a person is based on its entrepreneurial skills that is conceptualized to formulate
firm’s objective and vision under certain timeframe with use of better strategies and plans. The
entrepreneur is highly capable in predicting upcoming changes in market and consumer taste for
which resources and materials are purchased in excess so that sudden problems tackled at time of
risky market situations (Scarborough, 2016). There are various entrepreneurial typologies that
include:
Corporate Sector Venture – In this type of entrepreneurship, the risks are taken by applying the
innovation and creativity with expectations of capturing higher revenues and profits. The plan of
marketing products and services are created leaders and managers that help in obtaining higher
success by maintaining quality standards. The innovations and creativity in business helps in
2

developing standards and living of people that are also determined as lifestyle ventures that has
basic aim of increasing consumer base and interest by promoting it to large level that helps in
gaining attention that provides huge success in growth of new product or service.
Public Sector Venture – The government of UK has created several policies for starting ventures
by entrepreneurs within public sector for generating economy and growth (Burns and Dewhurst,
2016). The government is responsible for managing all operations and activities in such type of
firms. The most important business is managed by social entrepreneur that creates ventures with
updated and advanced new technologies that resolves general issues of public and society. The
rules and regulations created by country are essential to follow that helps in providing various
ideas for developing future and lifestyle of society and its people. The medium and small size
firms have greater impact on a UK economy in that social entrepreneurs are taking over market
with their meaningful services to customers.
Scalable Entrepreneurial Venture – Such type of firms are aimed on changing models that are
persisting in dynamic business environment which is planned for establishing quality standards
by employing competent and skilled workforce. It states funds, financial investments and venture
capital which are planned for business expansion to obtain huge market profits and shares while
fulfilling goals of firm and expectations of customers (Julien, 2018).
As chairperson of local council, there is a different entrepreneurial venture that helps to manage
business according to size, scope and development opportunities. The UK as strong economic
country has made easier for small firms to enter market with new ideas and strategies that helps
in accomplishing daily needs and requirements. The business cultures defines enterprises in three
different segments that includes small, micro and medium that helps in developing business firm
created by entrepreneurs. Following table describe the roles and characteristics of small, medium
and micro firms that help in identifying business functioning and importance that includes:
Table 1: Different entrepreneurial ventures
Micro Enterprises Small Enterprises Medium Enterprises
These types of firms are present
near the surroundings of buyers
such as cafe and ice cream
These firms have limited people
as staff members and are not
readily available to acquire
The firms that are created under
medium section have right to
recruit less than 250 people. This
3

parlour that is created with
minimal capital and employees.
It requires small funds and
minimum or less than 10 people
to start firm. In larger countries,
such type of firms lowers
business cost and enhances
income and profits. It was found
that ratio of micro entrepreneurs
is much higher because no formal
jobs and training is available for
such the people. The local areas
are served by micro firms in form
of selling cooked food, local
farms and food staples etc that
satisfies local and daily
customers.
higher sales volume (Storey,
2016). It is owned by single
person that carries limited
revenues and size according to
the type of industry. The firms
are created as privately owned
corporations, sole proprietorships
and partnerships. In various
countries small firms has taken
place and indulged in
manufacturing plants as well as
convenience stores. For example
– bakery with 10 people and
manufacturing firm with 50
people. It further includes
engineering, law firms, inns,
architectural firms and
restaurants (Ribeiro-Soriano,
2017).
type of firms generally emerges
from small businesses in slow
and steady manner for becoming
successful. The revenue
collection is much higher that
keeps all capital needs at side
that is essential for recruiting
employees, buildings and
equipments. Such types of firms
are beneficial for country’s
economy as it helps in
developing bridge within big
corporations and small
businesses.
The investments are limited to 25
lakhs in manufacturing and 10
lakhs in service industries.
The small firms are allowed to
invest above 25 lakhs but are
limited up to 5 crore in
manufacturing and from 10 lakhs
to 2 crore in service sectors that
is easy to entre market.
The firms can invest between 5
to 10 crore in manufacturing
sectors and from 2 to 5 crore in
service industries that makes
safer for firms to conduct the
businesses without high
liabilities (Venkataraman, 2019).
4

b) Critically examining how small businesses have impacted on the economy making reference
to relevant data and statistics. Illustrate the importance of small businesses to economy and the
growth of the social economy using data and statistics. Draw comparison to medium and large
businesses
The entrepreneurship is generated in business for specific role or motive comes by ideas that are
developed in person that brings innovation and creativity in businesses. The small types of firms
and business develop ideas and plans with variety of sources. The idea comes in person from the
personal thinking that is generated from experiences that helps in designing organisation based
on product and service requirement. Even different types of studying firms and people also give
idea about business type to enter that makes easy for entrepreneurs for developing new firms. It
is important for entrepreneurial personality to develop business plan with innovation as well as
creative features (Amabile and Pratt, 2016). Using both terms in implementing ideas or plan will
help to gain higher success and competitive edge in market with better product recognition and
popularity. It is important to initiate both factors but before that terms of creativity and
innovation must be clearly understood.
Creativity refers to act or capability for conceiving something unusual or original for customers
and innovation refers to new implementation of ideas and plans. The innovations in products and
services are taking place in market with huge market share and consumer base. For example –
the Dell, Amazon and eBay followed great innovations without introducing new service. The
term creativity just stops at stage when no idea or method is defined for implementing that makes
tough for business to grow. Thus, it is important for entrepreneurs to innovate and carry creative
nature that is to be put in regular activities. The entrepreneurial ideas can be generated through
various sources such as personal interest, hobbies, brainstorming, customer surveys, mass media,
franchises, trade fairs, exhibitions, talents and personal experiences.
As entrepreneurs are person that regularly invents, innovate or brings creativity to firms models
that makes essential for giving protection from rivals and market competitors (Serrat, 2017).
Protecting new ideas and innovations are important for firms as leniency towards it might bring
business to loss or shut down situation. For this, the government has initiated intellectual
property rights that help firms to protect their inventions and innovation so that market
competitors cannot have right to copy or sell products on other names. The protection is given in
5

form of trademarks that helps to protect branding and logos of firms for limited period after
which firm requires renewing it. A copyright is used for securing creative works, literature,
drama, art, music stuff etc. Patents are created for protecting novels, designs, inventions, unique
appearances etc (Love, et.al, 2016). Thus, either business is small of large IPR are initiated by
firms from getting secure by exploitation.
In UK, there are huge number of firms and business that are dealing in small, medium and micro
sized enterprises. In year 2018, 5.7 million was recorded as private sector businesses. The data
compared to 2017, has shown that 27000 firms in UK has been lesser this year. These all 5.7
million firms are identified as SME’s that was recounted as 99% of all types of firms. The large
firms are able to take over markets of UK due to its larger investments and size that makes tough
to conduct operations of businesses. Further, the employing businesses mentioned that SME’s
are only source that are providing higher opportunities for job to people of country. Even the
large businesses are not able to maintain markets and non employed people category has been
increased in much higher manner (Afrifa, 2016).
Figure 1: People employed in SME
(Source: UK SME Data, 2019)
6

From above graph, the highest number of people is employed within SME’s as compared to large
enterprises and whooping amount of population is increasing towards non-employed as people
are choosing to start businesses instead working for 9 hours a day in job. Based on UK’s data, it
is found that SME’s has given job opportunities to 16290 employees that have helped economy
to grow at immense level. Further, it has business turnovers of approximately £2000 billion to
the firms that have impacted on economy in positive manner by setting better annual turnovers.
The statistics shows that three quarter private sector businesses in UK are determined as non-
employers and further higher number of firms and businesses are currently not registered under
PAYE or VAT (Cowling, 2016). In year starting 2018, 2.6 million private firms were recorded to
be registered in PAYE or VAT according to National Statistics Office that was 45% predicted
total population. The trading of 55% businesses was going on non registration terms in VAT or
PAYE that was accounted for 3.1 million businesses that was fall under the category of un-
registered. Further, 52% of partnership firms and 13% of sole proprietor businesses were found
to be registered in PAYE of VAT.
Figure 2: SME registered in PAYE and VAT
7

(Source: Number of VAT and PAYE, 2018)
The businesses in UK under SME category are providing huge growth to firms and economy that
plays major role in allowing businesses by government. The country’s government are regularly
revising plans and policies for betterment of SME business culture as it contains huge capability
to bring over the higher revenues and profits. The growth of small and start up businesses has
provided wider opportunities for economic and sustained growth. Better cash flow flexibilities
and employment opportunities has boosted in country (Kenny and Dyson, 2016). Even the small
firms are completing the demands of large firms too that includes routine maintenance, catering,
printed stationary and photography services that makes it more important to country’s
requirements. Thus following are importance of SME’s to economy that is as follows:
 Creativeness and Innovation – SME’s has huge chances and techniques through which
new ideas and plans are initiated to business that helps in accomplishing objectives and
demands of customers as it gives strong market positioning. For instance – creating goods
and services by maintaining environment attracts global customers.
 Developing Personal Relationships – Such types of businesses has calibre and approach
from which employee and business owner develops relation with investors, creditors,
suppliers etc as people can rely on firms operation. It further helps in conducting face to
face conversations to business owners that makes effective to understand the needs and
desires of people regarding firms and their respective products (Doern, 2016).
8