Entrepreneurship and Small Business Management: Venture Analysis, UK

This report provides a comprehensive analysis of entrepreneurial ventures, examining different types such as small business, family, corporate, and social entrepreneurship, and their similarities and differences. It assesses the impact of micro and small businesses on the UK economy, supported by relevant data and statistics, and explains the importance of small businesses and start-ups to the growth of the social economy. The report also identifies and analyzes the characteristic traits and skills of successful entrepreneurs, differentiating them from other business managers, and explores how background and experience can either hinder or foster entrepreneurship, using examples like Sir Philip Green and Sir James Dyson. The study concludes by highlighting the crucial role of SMEs in driving innovation, job creation, and economic growth in the UK.

Entrepreneurship and Small Business Management
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Table of Contents
Introduction.................................................................................................................................................4
LO1.............................................................................................................................................................5
P1: Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship......................................................................................................................................5
P2: Explore the similarities and differences between entrepreneurial ventures.......................................7
M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector...............................................................................9
D1: Critically examine the scope, development, and growth of entrepreneurial ventures......................10
LO2...........................................................................................................................................................11
P3: Interpret and assess relevant data and statistics to illustrate how micro and small business impact on
the economy..........................................................................................................................................11
P4: Explain the importance of small businesses and business starts-ups to the growth of social economy
...............................................................................................................................................................13
M2: Evaluate the differences small, medium and large businesses make to the economy, applying
relevant data and statistics.....................................................................................................................15
D2: Critically examine how small businesses have an impact on different levels of the economy (local,
regional and national) and an international context...............................................................................16
LO3...........................................................................................................................................................17
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers................................................................................................................17
P6 Assess how aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation and
mindset..................................................................................................................................................19
M3: Explore and examine different lines of argument relating to entrepreneurial characteristics.........21
D3: Analyse the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples.............................................................................................................22
LO4...........................................................................................................................................................23
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P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship....................................................................................................................................23
M4: Analyse the link between entrepreneurial characteristics and the influence of personal background
and experience to specific successful entrepreneurs..............................................................................25
D4: Critically evaluate how background and experience influences entrepreneurs, both positively and
negatively, by comparing and contrasting examples..............................................................................26
Conclusion.................................................................................................................................................28
References.................................................................................................................................................29
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Introduction
This report explores the various forms of entrepreneurial businesses along with a detailed
analysis of their differences and similarities. This report also contains a detailed explanation
regarding the importance of SMEs and their impact on the economy of the UK region with the
appropriate facts and figures. Also, this report analyses the importance of small, medium and
large companies in developing the economy of the UK region. In the later parts, the report
evaluates the characteristics and qualities of successful entrepreneurs by considering the
examples of Sir Philip Green and Sir James Dyson for this study. The impact of these traits while
taking the important business decisions has also been discussed.
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LO1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurship includes initiating new ventures, acquisitions, and any major changes made by
small or large enterprises. Hence, entrepreneurship not only deals with starting an enterprise but
it also contains the risks taken by entrepreneurs to explore the opportunities for growth and
development of the firm (Bressler, 2015).
There are different types of entrepreneurial ventures are:
Small Business Entrepreneurship:
Small businesses are usually the start-up ventures in which the invested capital is limited and the
main objective is to drive the change in the business by developing new systems and innovation.
Although large organisations are considered to provide the required assistance and drive the
economy, small firms also play a significant role in driving changes and creating job
opportunities (Amolo and Migiro, 2017).
Family Entrepreneurship:
These enterprises are the businesses which are operated and managed by a single or a few
families headed by the senior members of the family. They are bound by a strong emotional
relationship and the decisions are taken after considering the suggestions provided by each of the
senior members.
Corporate Entrepreneurship:
These ventures are developed to identify and explore the new avenues of growth and
development by adopting strategies such as starting a new venture with an established firm,
changing the business practices, and changing the structure of the existing firm. These changes
are made to enhance the competitiveness and ability of the company to adapt to the changing
circumstances.
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Social Entrepreneurship:
These ventures are aimed at providing the solutions for the various issues faced by the
communities, such as medical services, providing training and development to the people,
providing technical education, etc. (Austin, et. al., 2012).
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P2: Explore the similarities and differences between entrepreneurial ventures.
Features Small Business Large Corporations Social
Entrepreneurship
Purpose The purpose is to
generate profits by
producing goods and
services
The objective is profit
generation and
investing in new
avenues to enhance
the market share
The objective is to
provide resolve the
issues of the society
Scale of operations Limited and goods
and services are
produced for a limited
geographical area
(Amolo and Migiro,
2017).
Operates by
manufacturing the
products and services
at large scale
The services are
catered to fulfill the
needs of the
community and
hence operations are
limited to a locality
Ownership The business is owned
and operated by an
individual or few
individuals who share
a common interest
Shareholders are the
real owners however,
the decisions are
taken by the board of
directors
The services can be
provided by an
individual, a firm or
multiple organisations
and these are started
by the government in
partnership with
private parties
(Austin, et. al., 2012).
Capital Investment Limited capital is These firms usually The amount of
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invested since they
produce a limited
quantity of goods and
services
invest a huge amount
of investments by way
or mergers,
acquisitions, and joint
ventures
investments depends
on the types of
facilities provided.
Hence, the capital
investment can be
limited or huge.
Market Share Their market share is
very limited (Amolo
and Migiro, 2017).
The majority of the
market share is
dominated by the
large firms and they
even expand their
operations in foreign
countries.
Since they operate to
provide the services,
the market share
depends on the scale
of the operations.
Timescale These are vulnerable
because they face
threats from large
companies and hence,
the timescale of
operations cannot be
predicted
Since they diversify
the operations, they
sustain for a longer
period of time.
As many firms are
operated by
partnerships, they
usually survive for a
longer period of time
(Austin, et. al., 2012).
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M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and corporate sector.
The nature of the business depends on the purpose and size of the operations along with the
amount of capital invested to start the operations. Hence, the businesses can be divided into
small enterprises, large corporations, and social enterprises. The objective of the small firms is to
provide a particular service or to assist large companies by producing a particular component or
series of parts of a component. The large corporations are formed by combining two firms or by
acquiring the existing firms. These strategies are used to enhance the market share as well as to
diversify the product range which provides flexibility of operations and provide an opportunity
for generating huge profits. Social entrepreneurs create firms with the aim of providing the
necessary facilities to the society and these are usually operated by the government by partnering
with private parties such as NGOs and NPOs. This enables the government to provide medical
and other facilities to the local communities effectively (Austin, et. al., 2012).
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D1: Critically examine the scope, development, and growth of entrepreneurial ventures.
The growth and development of the firms depend on the strategies used by the entrepreneurs to
expand their operations. The small firms operate in limited fields and the growth of these firms
depends on the mindset of the entrepreneur and the level of innovation introduced in the
operations (Bula, 2012). On the other hand, the growth and development of the large companies
depend on the decisions taken by the management to enhance the market share such as strategies
related to mergers and acquisition and the strategies of product diversification. These companies
survive for longer periods of time because of the size of their operations and the goodwill created
by them by providing various products and services. The one more aspect of companies to grow
and develop is the corporate structure, the small firms have a simple and refined structure which
enables them to adapt to the changing circumstances easily whereas, the large companies may
face difficulties while adapting to the changes because of complex hierarchical structures.
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LO2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
business impact on the economy
As per the EU definition, the micro industries are that which employ less than ten employees and
has the annual turnover of fewer than 2 million pounds, whereas, small businesses have less than
50 employees and the annual turnover is less than 10 million pounds. However, the Department
of Business has defined small businesses as those firms which employ less than 50 employees
and the annual turnover should be less than 6.5 million pounds (The Company Warehouse,
2018).
The micro and small businesses play an important role in the economy of the UK region and this
can be stated by the fact that there are around 5 million small businesses at the end of December
2016. The total employment generated by the small firms at the closing of 2016 was more than
16 million. The UK government has proposed various reforms in order to provide necessary
assistance to the small firms since these firms have enabled the UK government to increase the
trade activities after recession (Allan, 2014). The small firms were the major contributors to the
UK economy during recession and continue to generate revenues. These firms have enabled to
the environment for innovation and hence, the small firms have been able to increase their
presence in all the fields such as finance, marketing, consultancies, agriculture and farming,
science and technology, etc.
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Figure 1: SME Performance Review
Source: (European Commission, 2018).
The small firms have also contributed to the UK economy by attracting foreign direct
investments worth 100 million pounds in 2014 and these firms have also started to actively
collaborate with the large firms to promote their products in the foreign markets.
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