UK Entrepreneurship and Small Business Management Detailed Report

This report provides an overview of entrepreneurship and small business management, with a focus on the UK. It defines entrepreneurship, distinguishes between entrepreneurs and intrapreneurs, and categorizes various types of entrepreneurial ventures, including social, public, and private enterprises, as well as micro, small, medium, and large businesses. Statistical data on UK SMEs, including regional distribution, size, VAT registration, and industry type, is analyzed to highlight the importance of small businesses in social and economic growth. The report features examples of successful entrepreneurs and examines their skills and traits through the lens of the OCEAN model, assessing the impact of background and experience on entrepreneurial endeavors. The document is available on Desklib, a platform offering study tools and resources for students.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT........................................1
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Entrepreneurship..........................................................................................................................3
Different Types Of Entrepreneurial Ventures..............................................................................4
Statistical information about small, medium and large businesses of UK..................................6
Importance of Small Business in Social Economic Growth........................................................9
PART 2..........................................................................................................................................10
Examples of real life entrepreneur and their skills and traits.....................................................10
Aspects of entrepreneurial personality through OCEAN model...............................................11
Impact of Background and Experience on Entrepreneurship....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is the risk taking capacity of individuals or groups to establish a
business in order to make profits. This report will highlight the concept of entrepreneurship, the
difference between entrepreneur and intrapreneur and various types and typologies of
enterprises. The statistical information regarding number of SMEs in UK on the basis of region,
size, industry type, registration with VAT, employment and turnover has been discussed in brief.
The importance of SMEs in the social growth of the economy is evaluated and examples of
successful entrepreneurs are taken to describe certain skills and traits. OCEAN model is used to
describe essential traits that an entrepreneur should possess. Various factors like culture, family
and personal motivation have been determined to assess the entrepreneurial personality.
PART 1
Entrepreneurship
Entrepreneurship can be defined as the process of establishing and developing a business
venture and readiness to operate a new business venture with capacity to take risks and face
uncertainties in order to make profits(Parker, 2018).
Economically, entrepreneurship is related to land, capital, natural resources and labor. The vision
is discovery and ability to take risks establishing a venture in the dynamic and competitive
marketplace.
Entrepreneur is someone who has the capacity and desire to develop and administer a start-up
business considering the risk entitled with it. Entrepreneurs are generally the people with
innovations and ideas who tend to replace the tradition marketplace. The approach is intuitive
and resources and capital are raised by the person from scratch and works independently.
On the other hand, an intrapreneur is an employee of a company who has been charged to
undertake innovations of products, processes and services. The approach is restorative and the
person uses resources and capital provided by the organization(Kraus and et.al., 2019). There is
no creation of new enterprise and the intrapreneur is dependent on the organization.
Various activities linked to entrepreneurship are :1. Risk bearing: Any business involves some degree of risk. Production of goods and
services in the business is concurrent to future demands which can be uncertain due to

ever-changing trends and tastes of consumers. If the estimations and analysis come out
wrong, losses can be incurred.2. Ideas of Businesses: An entrepreneur conceives the idea of establishing a business by
using the skills, competencies and knowledge and conduct an extensive study of market
conditions and business sphere.3. Estimation and Prediction: After the study, the entrepreneur works upon how, what and
when of business activities and conducts strategic planning, organizing, prediction and
estimation of availability and allocation of resources and factors to be considered for
development of the business.4. Supervision and Control: Administrative activities and day-to-day business operations
have to be supervised and targets have to be attained by the entrepreneur. A vision and
overall management of the business is a primary activity of entrepreneurship.
5. Innovation: It is a quintessential function undertaken by an entrepreneur. There is usage
of information, intuition and data for designing a product, discovering new marketing
needs or new revolutionary practices in a industry. This creativity results in invention and
innovation(Smith, 2020).
Some famous and successful entrepreneurs business venture are: Sun microsystems,
Conglomerate Virgin group, Zennstorm, Admob, Infonautics Corp., Alando, Harpo productions
and many more.
Different Types Of Entrepreneurial Ventures
Different types of ventures:
Social: Social ventures are more concerned towards dealing with any environment related issues.
The main emphasis of the business is on dealing with any issue related to society. The example
includes National hospital service of UK.
Public: Public ventures are government hold organisations. These organisations focuses on
meeting up different requirements of society. The example of the public companies- marks ans
Spencer plc.
Private: This entrepreneurship is a self-employed small scale business based on own work
inputs. This can be managed along with family or a spouse. Example: McLaren Technology
group(Morris, Neumeyer and Kuratko, 2018).

Ventures on the basis of size:
Micro-businesses: Micro businesses are such business ventures that carry the sales tuenover less
than £2 million and do not employ more than 10 employees.
Small business: Small business ventures are such organisations that have less than 50 employees
and turnover under £10 million. They Example of small business are funeral etc.
Medium business: Such organizations have less than 250 employees working with a turnover of
less than £50 million.
Large Business: All such organisations do not meet up the conditions earlier mentioned are a
part of large scale business venture. The example of large business is NHS (national health
service).
Various typologies:
Lifestyle: A lifestyle entrepreneur is the one who does not have any physical presence and
conducts business operations online. This type of entrepreneurship just needs a person to operate
and manage. Examples include Tim Ferris and Pat Flynn.
Survival: The aim of this type of venture is to survive and meet obligations of a business. It
implied from cutting costs of products, reduces profit margins (Neumeyer and Santos, 2018) The
example includes Funeral businesses etc.
Growth: Growth firms are such organisation contains heavy profit margins out of the business
operations. Growth is also segregated into two parts: managerial and aggressive growth,
Example includes Apple, which has achieved continuous growth through managerial methods.
Scalable start-up: These organizations work towards changing the objectives of the people by
providing solutions for unnoticed needs. They attract venture capitalists and encourage them to
invest in the company. Example of the scalable start-ups are Facebook, Uber etc.
Difference between entrepreneurial ventures:
Survival Public Growth Social
Risk It consist the low risk
as motive is not to
earn healthy profits.
The risk rate
contain from
minimum to high
as it is undertaken
by the government
It contains heavy
risk as the motive is
to earn healthy
returns.
Risk is not associated
with the venture as the
main motive of the
company is social
development.

Structure It involve small
stores and shops.
Structure follow by
companies.
Structure is of
private company
Structure is comprises
with public company
and non-profit
organisation.
The similarities between the entrepreneurial ventures are that all of them focus upon
profitability. The above mentioned points have projected the various differences between
different kinds of business ventures.
Statistical information about small, medium and large businesses of UK
Number of SMEs in UK:
Over the years, there has been a continuous increase in the umber of small and medium
business enterprises in UK from around 3.5 million start-ups in the year 2000 to around 4.5
million in 2010. This rise can be attributed to various factors like increase in market size,
Illustration 1: Number of SMEs in UK
Source: BEIS, 2019

business opportunities, population and customer needs. The total number of SMEs in the year
2018 was approximately 5.9 million.
Businesses by region:
In the year 2018 the number of small business ventures operated in UK was 1090 in
numbers operated by approximately 10000 peoples based in UK. Among all other business
destinations London has the highest number of business ventures. The London carry the 1544
business ventures on per 10000 peoples based in UK. As per the records more than one third of
the business houses based in UK are operating in London itself.
Northern Ireland is the destination that associated with the least number of business, i.e., 124000
across UK. The highest plunge in the presence of businesses was recorded between 2018 and
2019, mainly in Northern Ireland and East Midlands. In other part of the UK there is
significantly hike in the number of businesses and among all other destination Wales has a
largest number of increase in number of business as the location consider 12% hike in total
Illustration 2: SMEs By Region
Source: BEIS, 2019

number of businesses . Overall, it can project that increment of 4% in the number of businesses
in UK in the years 2018 and 2019. Reasons for these fluctuations are Brexit, tax regulations and
capital requirements.
Businesses by Size
Small and Medium enterprises are such organisation that provide employment to less
than 250 employees. SMEs played an important role in employment creation across UK. Among
5.9 million businesses operated in YK approximately 99% of the business venture is a part of
SME category. As per the records the number of micro-businesses was counted as approximately
5.6 million in the year 2019 which summed up to 96% of all business in UK. Almost majority of
the business give employment to less than 10 peoples which leads to an employment opportunity
to 33% people and has a sales turnover of approximately 22%. Number of large businesses
operate in UK is approximately 8000 in numbers which are approximately 0.1% of the total
number of business ventures operated in UK. The percentage of large business houses in UK is
relatively low but the surprising fact is they provide employment to approximately 40% people
of UK and have a high turnover of 48%.

Number of SMEs registered for VAT and PAYE: Office for National Statistics UK has
published that 2.6 million private sector businesses are registered. 13% of these are sole trading
enterprises and 51% are partnership companies. The total number of unregistered SMEs
operating in UK are around 3.2 million (Shehata, Salhin and El-Helaly, 2017)
Businesses by Industry type:
On the basis of industry type, there is approximately of sales turnover upto 71% in the
service sector that provides an employment opportunity to almost 79% of the peoples. Retail
sector covers up-to 34% turnover while providing 18% employment. The construction sector in
UK covers approximately 17% business organisations of all businesses operate in UK but they
contribute in the total GDP at the rate of 9%. The sector create employment opportunities is
approximately 8%. Manufacturing companies accounted for 5% of businesses with having a 15%
turnover and rate of employment being 10%.
Illustration 3: Businesses in UK by size

Importance of Small Business in Social Economic Growth
The small business are the backbone of social economy. Small businesses played a
significant role in boosting economic growth along with they allowed peoples to cater the basis
requirements (Arshed, 2017). The economy can be transformed by SMEs and start-ups in the
following ways:
 Creation of Employment: From the above statistical data it is analysed that SMEs are
important for giving employment to a vast majority of the population. The start-ups, has
serves employment opportunities to peoples in UK in many areas like customer services,
production, marketing, management etc.
 Innovation: Small business owners launch new things in the market that create a
significant boost in the economic growth. Innovation played a crucial role for the
organisations in introducing many significant changes in the operations of company.
 Enhanced engagement of disadvantaged groups: Primarily the women and the ethnic
minorities are the people who don't have any advantages. It has contributed in expanding
Illustration 4: SMEs by industry type
Source: BEIS, 2019

the economic growth and also to create employment opportunities for so many employees
in UK.
 Development of Entrepreneurship: The attitude of risk taking and establishing a
venture to make profits and attain success in future is imbibed in the market atmosphere
due to which there is a rise in the number of such start-ups in the country.
PART 2
Examples of real life entrepreneur and their skills and traits
So many successful entrepreneur played a crucial role in supporting the economic growth
of the country (Duchek, 2018). These are JK Rowling, British Author, Kim Antoniou founder of
Kafoodle, Richard Blain founder of Earth-i, Chay Blyth who established Challenge Business,
Hellen Bowey founder and CEO of Alcove and many more.
JK Rowling, from being a jobless single mother became a fledging entrepreneur in-spite of
challenges like multiple rejections by book publications, financial crunch and disturbed personal
life. After the success of her book series Harry Potter, today she is one of the most successful
female entrepreneurs in the world. She believes in controlling what she creates, not to get stuck
in success and not fearing failures (Ramadin, 2019). Such personalities possess certain skills,
characteristics and traits which is evident in many entrepreneurs. A brief discussion is as follows:
Personality traits of JK Rowling :
 Vision:- JK Rowling dreamt of being a novel writer since childhood despite her parents
ideologies, she had a vision for herself and achieved it through constant efforts.
 Resilience:- Businesses always face the success and failures and it becomes important for
the entrepreneurs to be ready to face any kind of challenge. JK Rowling's first manuscript
was rejected 12 times by publishers, but she was resilient to publish her book.
 Strong-willed: JK Rowling has been through difficult times in her life but managed to
remain strong-willed and move on. She spent 6 years striving to create harry potter before
her first draft and is determined to move up despite challenges.
 Confidence & flexible:- Entrepreneur must be confident towards whatever decision they
take for the business and they must be flexible about working all the time in a day.
 Passionate:- Entrepreneurs are passionate about their dreams. They do not operate
business to earn profits rather they focuses on channelizing strategies and make them

successful in market. This aspect of the nature of entrepreneurs makes them able to deal
with any diverse situation in the business venture.
Characteristics of Entrepreneurs:-
 Determined:- Entrepreneurs are determinant towards whatever they are trying to pursue
in the business. This aspect of the characteristic of entrepreneur makes them successful.
Working on a start-up required money and a persistent effort to get the success.
 Risk Taker:- Entrepreneur carry the ability of taking risk in business start up and
ventures. They do not feel bad in taking risk in business. Entrepreneurs always focus
towards taking crucial decisions that can support the growth of the business ventures they
are associated with.
 Self investor:- Entrepreneur are the self investors (Rojas and Huergo, 2016). They do not
carry any dependency on any other individual involve in business. This characteristic of
entrepreneur make them independent about any aspect of business.
 Innovations:- Successful entrepreneurs are innovators also. They innovate in the business
ideas in such a way that they can achieve the success by putting limited resources.
Innovation is a crucial part of the business entrepreneurs has undertaken.
Aspects of entrepreneurial personality through OCEAN model.
Entrepreneurs personality is identified as different aspects involve in the mindset of
entrepreneurs that makes them successful in business (Oshio,Taku and Saeed, 2018). These are
so many characteristics part of the personality of entrepreneurs that can be projected in following
points.
 Openness: Successful entrepreneurs are open in nature. This aspect of the personality of
entrepreneurs makes them ready to accept new ideas and practices. Openness leads the
entrepreneurs towards any direction of business.
 Conscientiousness: Successful entrepreneurs are always conscientiousness in nature.
This aspect of the personality of successful entrepreneurs makes them open about any
new strategy and policy in business.
 Extraversion: This is another crucial aspect involve in the persona lot of successful
entrepreneurs. Entrepreneurs are always ready to intriuce the business in front of any
stakeholders. This aspect of the personality of entrepreneurs allows them to generate
potential support for the growth of business.

 Agreeableness: Agreeable people are friendly in nature and motivate others for
achieving success in the actions they have taken. This aspect of the personality of
entrepreneurs makes them able to motivate all employees and stakeholders directly
interacted with tem in business.
The above mentioned points have projected about different aspects related to the
personality of entrepreneurs which makes them successful in business.
Impact of Background and Experience on Entrepreneurship
Cultural influences, backgrounds, family life, and experiences of an individual can hinder
or foster entrepreneurship depending upon the positivity or negativity level of such experiences.
In case of JK Rowling, she managed to strive through toughest situations like when her husband
left her and her child, and she faced financial crunch and was helpless, in-spite all this and her
mother's support, she remained strong-willed and through determination she became a successful
entrepreneur(Griffin‐EL and Olabisi, 2018). Bill gates, the founder of tech giant Microsoft was
innovative towards computers and software since childhood. Due to lack of funds in the initial
years of the company, his mother acted as a sales manager. Through thick and thin, and
continued efforts today he is the riches man on planet. When bad experiences happen to an
individual, the entrepreneurship skills turn survivable in nature. Education helps foster technical
skills which helps entrepreneur gain expertise in operating their ventures. Cultural influences
also affect the role, attitude and behaviour of entrepreneurs. Economic factors also influence
entrepreneurship as competitive marketplaces and economic condition of the country can
determine limitations in growth. Self-sacrifice and risk-taking abilities help an entrepreneur in
achieving success(Lechner and et.al., 2018). Support from family is vital for the mental health
and confidence level of any person. Effective experiences and failures also foster development in
entrepreneurs. The person may learn effective and judicial use of resources and prevent wastage
in terms of finance and other necessary resources.
CONCLUSION
In this report, the different kinds of entrepreneurial ventures and their relations with the
typology of entrepreneur has been discussed. The emphasis was laid on the similarities and

differences, roles and characteristics and objectives of the different ventures and their size.
Ventures are segregated into public, private, government and many others. Different impacts
micro and small businesses created that supported the economic growth. The importance of the
business start up and small business has also been discussed. The reason for the successful
entrepreneurial personality and their motivation and mind set has been also discussed. It has been
examined with the examples that how an individual background and experiences affect the
entrepreneurship.

REFERENCES
Books and journals
Arshed, N., 2017. The origins of policy ideas: The importance of think tanks in the enterprise
policy process in the UK. Journal of Business Research. 71. pp.74-83.
Duchek, S., 2018. Entrepreneurial resilience: a biographical analysis of successful
entrepreneurs. International Entrepreneurship and Management Journal. 14(2). pp.429-
455.
Griffin‐EL, E.W. and Olabisi, J., 2018. Breaking boundaries: Exploring the process of
intersective market activity of immigrant entrepreneurship in the context of high
economic inequality. Journal of Management Studies. 55(3).pp.457-485.
Kraus, S., and et.al., 2019. Individual entrepreneurial orientation and intrapreneurship in the
public sector. International Entrepreneurship and Management Journal. 15(4).pp.1247-
1268.
Lechner, C.M., and et.al., 2018. What drives future business leaders? How work values and
gender shape young adults' entrepreneurial and leadership aspirations. Journal of
Vocational Behavior. 107. pp.57-70.
Morris, M.H., Neumeyer, X., and Kuratko, D.F., 2018. Distinguishing types of entrepreneurial
ventures: An identity‐based perspective. Journal of Small Business Management.56(3).
pp.453-474.
Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of Cleaner
Production. 172. pp.4565-4579.
Oshio, A., Taku, K., and Saeed, G., 2018. Resilience and Big Five personality traits: A meta-
analysis. Personality and Individual Differences, 127, pp.54-60.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Ramadin, T.Y., 2019, August. OVERCOMING THE PATH TO ENTREPRENEURSHIP
THROUGH CREATIVITY. In International Conference of One Asia Community (Vol. 1,
No. 1, pp. 49-51).
Rojas, F. and Huergo, E., 2016. Characteristics of entrepreneurs and public support for
NTBFs. Small Business Economics. 47(2). pp.363-382.
Shehata, N., Salhin, A. and El-Helaly, M., 2017. Board diversity and firm performance:
evidence from the UK SMEs. Applied Economics.49(48). pp.4817-4832.
Smith, R., 2020. Understanding the entrepreneur as socially constructed(Doctoral dissertation).
Online
BEIS, Business population estimates, 2019 [Online]. Available through:
<file:///home/user/Downloads/SN06152%20(5).pdf>
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