Entrepreneurship and Small Business Management in the UK

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
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Executive Summary
Entrepreneurship refers to the process of structuring, organising and managing a
new business. In this report, various features related to entrepreneurship have been
provided. Entrepreneurs develop a business model that provides effective help to the
local economy. The different skill sets that are required in order to run a business
have been discussed in the study. The various factors on which entrepreneurship
ventures and their features depend have been discussed in the study. An
assessment on the effect of the micro and small business with relevant data has
been provided in this report. The importance of these businesses and how they
impact the society have been discussed in the report.
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Table of Contents
Introduction................................................................................................................. 3
LO1 Exploring and illustrating on the range of different types of ventures in terms of
entrepreneurship management in UK.........................................................................3
LO2 Assess the impact of small business on the economy........................................7
LO3 Determine and assess the key aspects of an entrepreneurial mindset.............11
LO4 Examine the different environments that foster or hinder entrepreneurship......15
Conclusion................................................................................................................ 18
Reference List...........................................................................................................20
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Introduction
Entrepreneurship is the key element that can lead to the growth of many small
business and big organization. Most of the large businesses in UK have been led by
the successful entrepreneurs and start out as small businesses. However, the right
knowledge of entrepreneurship skills in order to start a new business makes a
difference between prosperity and poverty. Innovative thinking has replaced
independent thinking that flourishes even in chaotic environments. The study has
been prepared based on the context of management of small business and
entrepreneurship skills. As such, the report will be based on examination of
entrepreneurship ventures by describing the differences and similarities between
various types of entrepreneurship ventures. Accordingly, the report will be based on
primary research on how the small and micro business impact on the UK economy.
LO1 Exploring and illustrating on the range of different types of ventures in
terms of entrepreneurship management in UK
Examining the different types of entrepreneurial ventures in UK (P1)
The entrepreneurship ventures practiced in UK are of different types depending on
the attributes of their own. As per the view of Scarborough (2016), there are four
types of entrepreneurship ventures that are small businesses, scalable start-ups,
social entrepreneurs and large companies. Pharmacy2U is one of the most
renowned social enterprises in the UK. The organization tends to provide extensive
pharmacy care to the local citizens in UK. On the other hand, Educ8 group is one of
the local business firms in UK, which is engaged in training and recruitment
programs. The Royal Shell Plc is one of the big public companies headquartered in
UK that is engaged in core business activity and greatly contributes to the economy.
Relating the entrepreneurship ventures with the typology of entrepreneurship
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From a recent study, it was observed that the Pharmacy2U Company has introduced
its pharmaceutical business through the use of online platform. The entrepreneurship
business of Pharmacy2U is regulated by Council of General pharmacy and the
online physician services are regulated by commission of quality care
(pharmacy2u.co.uk, 2019). On the other hand, Educ8 group is a local business firm
in UK that provides recruitment and training solutions. The organisation had been
established in 2009 with 25 working staffs and incorporates internal management
skills to increase its profitability (b.co.uk, 2019). On the contrary, Royal Shell Plc is
among the biggest oil and gas companies in UK established in 2002 and started the
start-up with only 12 working staffs (uk.globaldatabase.com, 2019). As such, the
company is engaged in both internal and external management, which has rendered
huge productivity and helped to increase the UK economy.
The similarities and differences between entrepreneurial ventures (P2,M1)
Similarities
 Hierarchy structure:
Every entrepreneurship venture, whether small or large have a certain structure of
hierarchy. As suggested by Siegel and Wright (2015), every organisation comprises
of a hierarchy structure or a chain of command, to monitor the various activities of
the company. Employees who are positioned in the higher level of this hierarchy are
responsible for the functioning if the employees who are placed on a lower level of
hierarchy. This structure is necessary for the smooth operations of every
organisation. Employees positioned in the higher levels of hierarchy are required to
take part in major decisions for the company for determining a specific path for
growth of the company.
 Operation process:
Organised and effective operations management plays a vital role in the overall
productivity of the company. Every entrepreneurial enterprise, independent of its size
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requires an efficient operations management team. An efficient supply chain
management is also a common factor for every successfully running
entrepreneurship venture.
Differences
 Financial goals:
Financial goals and objectives of various entrepreneurial organisations depends
mainly on the scale on which they are operating. As suggested by Burns and
Dewhurst (2016), small businesses tend to achieve financial objectives which can
pay regular basic income. In medium sized entrepreneurships the financial objective
is based on long term sustainability in order to encourage growth of the organisation
in the future. The large companies tend to generate huge income and their goals are
focused towards dominating the market.
 Risks:
Large entrepreneurships have higher market risks as compared to the local and
medium sized. In a local entrepreneurship the goal is to achieve income on a regular
basis which makes their risks lower than bigger companies. As suggested by Julien
(2018), large ventures have a lot at stake. Therefore, their risks are also higher as
compared to small and medium firms. They are bound to face larger risks that can
even gravely damage the organisation.
 Financial strategies:
Financial strategies vary according to the size and scale of the business. The
financial objectives of the three types of entrepreneurial ventures differ as they have
different goals. Financial strategy of the small sized ventures focus mainly on daily
sustainability, whereas the medium sized ventures tend to focus on making market
strategies that will assist in their future growth. On the other hand, large
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entrepreneurial enterprises perform detailed market research and risk assessment
before making financial strategies.
 Employee recruitment :
The process of employee recruitment also differs on the size of the organisation. The
number of employees that an organisation has depends on the size of the
organisation and the scale in which it operates. As commented by Amato et al.
(2017), job security and stability of the employees depend on the size of the
organisation. Local businesses offer better stability to their employees than the large
and medium sized organisations.
Critically examine the scope, development and growth of entrepreneurial
ventures (D1)
Entrepreneurship involves researching the market in order to find new opportunities
to promote the growth of the company. Innovation and risk taking are important
features of an entrepreneur. As suggested by Volery and Mazzarol (2015), a
successful entrepreneur needs to devote time on market research and perform
proper risk assessment. This will enable them to ensure a secure development of the
entrepreneurial venture. In today’s age of globalisation, entrepreneurs have a great
scope in developing independent businesses that can help to attract a global
audience. However, as suggested by Morgan et al. (2016), all entrepreneurship
ventures are not successful and some even had to deal with grave financial
setbacks. Experience of an entrepreneur also plays a major role in taking efficient
financial decisions. An experienced entrepreneur possess the knowledge to deal
with such setbacks in an effective manner. These setbacks occurred due to certain
changes in the social and political scenario. Therefore it can be stated that though
entrepreneurship ventures involve a lot of risks, still it can become fruitful if the
necessary cautionary steps are taken. Innovation and knowledge of current trends
play a major role in the success of an entrepreneurship venture.
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LO2 Assess the impact of small business on the economy.
Assessing and Interpreting relevant statistics and data for illustrating the ways
by which the micro and small businesses impact on the UK economy (P3)
Q1. What is your age?
Ages Number of
respondent
Total number of
respondents
Percentage (%)
Less than 16 5 35 14.29
16 to 25 9 35 25.71
25 to 40 10 35 28.57
40 to 60 6 35 17.14
Above 60 5 35 14.29
Table 1: Age of Respondents
Figure1: Age of Respondents
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Analysis:
From the graphical representation, it can be stated that UK has a large number of
respondents in the age group of 25 to 40 years old. However, the persons below 16
years of age and simultaneously above 60 years are among the least respondents.
These groups of respondents agree to the fact that the micro and small business
have a large contribution to the economy of UK.
Q2. Do you think the effects are positive in those small and micro businesses
on the UK economy?
Response Number of
Response
Total number of
Respondent
Percentages %
Strongly Agree 9 35 25.71
Agree 10 35 28.57
Neutral 6 35 17.14
Disagree 5 35 14.29
Strongly
Disagree
5 35 14.29
Table 2: Positive impact of small and micro business on economy
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Figure2: Positive effect on small and macro business
Analysis:
From the figure it has been analyzed that a large number of respondents tend to
agree on the view that the micro and small business have a positive effect on UK
economy and business. This has estimated the fact the impact of micro and small
business activities can help in growth of the economy of UK. The small business
plays a vital role in providing employment opportunities and favourable working
conditions.
Q3. What are the strategies that you would like to recommend for improving
the economic conditions?
Response Number of
Response
Total number of
Respondent
Percentages %
Communication 9 35 25.71
Teamwork 5 35 14.29
Decision making 10 35 28.57
Persuasion 6 35 17.14
Team
engagement
5 35 14.29
Table 3: Recommended strategies in improving the business and economic
conditions in UK
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Figure 3: Recommended strategies
Analysis:
The above figure helps to undermine that the decision making strategy of the small
and micro industries can help in improvement of the UK economy. The decision
making involve implementation of policies and technology those are essential for
survival of business of the micro and small industries. The next big thing that can
help in sustainability is strong non-verbal and verbal communication skills.
P4 Explain the importance of small businesses and business start-ups to the
growth of the social economy.
Employment to workers
Small businesses like Pharmacy2U can help in increasing the economy by
introducing new business ideas and innovation in human resource management in
UK. As stated by Volery and Mazzarol (2015), Pharmacy2U has been incorporating
recruitment and retention strategy to minimise employee turnover and increase the
organisational productivity.
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Contributing to taxes
Most of the big companies like Royal Shell Plc has been able to establish its
blueprint due to its contribution to government taxes. On the other hand, the local
business firm like Educ8 group has been able to generate huge revenue by
complying with the organisational policies and paying a higher amount of tax
(uk.globaldatabase.com, 2019).
LO3 Determine and assess the key aspects of an entrepreneurial mindset.
Determining the characteristic traits and skills of successful entrepreneurs
(P5, M3)
Entrepreneurs need to possess certain skills and traits in order to run a business
venture successfully.
Passion :
In order to start an independent venture, one needs to have passion for the field in
which the person is going to open one’s enterprise. Passion and love for the field is
necessary for the long term running of the organisation. Otherwise, mild setbacks will
cause the entrepreneur to leave the enterprise nad start something new instead.
Vision:
Successful entrepreneurs need to have a clear vision regarding where they want
their organisation to be in the near future. A clear vision also provides the employees
of the company with a direction in which they need to work.
Innovative :
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