Entrepreneurship And Small Business Management GSM London College

Introduction

It can be said that entrepreneurship and small business management plays an important and vital role in order to develop domestic market that helps to increase economic advantage for particular nation effectively (Wright and Stigliani, 2013). The report will cover different types of entrepreneurial ventures and how they relate to the typology (different types) of entrepreneurship. In addition to this, the similarities and differences between each f entrepreneurial ventures and considering the roles, characteristics and Objectives of different types of ventures: private; public; social enterprises - as well as different sized ventures: micro; small; medium will be discussed in this report. The report will also demonstrate and present relevant data and statistic to illustrate the impact micro and small business have on the economy. Finally, the report will cover the importance that small businesses and business start-ups on the growth of the social economy.

Part1 1

P1. Types of entrepreneurial ventures and their relation with typologies

Entrepreneurship: Entrepreneurship is an process of building something new of value by devoting the necessary time and efforts. Entrepreneur venture make efforts to accepting and acknowledging the necessary financial, psychological and social risk within the business in order to meet their desired entrepreneurial goals and objectives (Trimi and Berbegal-Mirabent, 2012). It is a process of creating something new value and assuming the risk and rewards within entrepreneurial venture. In addition, entrepreneur is an individual who is dedicated to execution of such activities and leading their own business and nature them for growing and prosperity of business. They are entitled to creating the changes by identifying appropriate opportunities which make differences from other organisations which are operating in current market.

Intrepreneur: An intrepreneur is a person who behaves like an entrepreneur whilst being employed. Intrepreneurs are usually encourages to develop their ideas into a workable product by the companies they work for (Schaper, 2016). Like an entrepreneur, an intrepreneur is motivated, creative, and able to think outside of the box.

The difference between entrepreneurs and intrapreneur are provided below:

Basis

Entrepreneur

Intrapreneur

Meaning

Refers to an individual who establish own business.

Employee in a company who is responsible for undertaking innovation.

Approach

Intuitive

Restorative

Resources

Utilise own resources

Company provide resources

Risk

Borne by him

Borne by company

Enterprise

Newly established

Existing one

Dependency

Independent

Dependent

Works for

Developing own market position

Transformation and redesigning organisational system

Capital

Raised by him

Financed by company


Different types of entrepreneur:

Small business entrepreneur: Small business entrepreneur are those who pick up short ideas by which they can develop short form of products and services by which they can attain short terms business objectives efficiently. Small business operates their business functioning for gaining short terms financial goals.

Large business entrepreneurs: Large business entrepreneur have goals and objectives to introducing large kinds of products and services who has potential to make differences between existing same types of goods in marketplace. They mostly utilised approaches to implementation of innovation within core business products and gaining wide range of profitability. Large scale of business entrepreneur taking initiatives for making innovation within existing products and through large amount of products, gaining high range of profitability (Morris, 2015).

Social business entrepreneur: These are those entrepreneurs, who work for social welfare program in order to generating sufficient amount of success by provision of effective social welfare products. It has examined that, social business entrepreneur works for furnishing products and services by which communities development can be executed within societal environmental efficiently. Social entrepreneur introduce variety of services at free of cost and they contain aim for earning non-profitability.

Scalable business entrepreneur: Scalable entrepreneur ventures are those who work for coming up into market by introducing totally different innovative products and services which conduct characteristic antithetic from existing products in the marketplace. So they have major aim to introducing unique product and services for earning large amount of profitability or containing desired to changing the world by their different innovative ideas. Scalable entrepreneur are increasing broad level in the country (Moroz and Hindle, 2012).

  • Corporate Entrepreneurs: These entrepreneurs worked in order to establish their own corporation in future. For example, these types of entrepreneurs worked in large scale corporate sector organisation (Estrin, Mickiewicz and Stephan, 2013).
  • Public entrepreneur: These entrepreneurs worked under government and provide products and services to the public as per government.
  • Private entrepreneur: These entrepreneurs can be found in sole business, partnership or joint venture. The main motive is to earn profits and revenue.
  • Academic Entrepreneur: These are university scientist, most often a professor, sometimes a PhD student or a post-doc researcher, who sets up a business company in order to commercialize the results of his/her research.

P2. Similarities and differences between entrepreneurial ventures

Different types of entrepreneurial ventures are running in the nation which is operating their business functionalities within particular industries of the nation. They have different types of characteristics and differences which is as following:

Differences

Small scale ventures

Large scale ventures

· The role of small scale ventures or organization is to provide products and services to limited number of target customers.

· The objective of small business enterprises is to earn revenue by retaining their target markets.

· These are considered as small ventures as they have limited paid up capital and employees

· Small business entrepreneur is generally operating their business operational activities for earning small amount of money for sustainable life.

· Small types of entrepreneur business is not following uniform structure for running its various business functionalities within the industry. They chose random approach to completion of business tasks within short time period.

· Small types of entrepreneur has very few volumes of employees who does not require to possessing extra expertise. Employees of small business require to having less knowledge than large business's employees (Kirzner, 2015).

· Small business organisations are not following specific types of working culture on which the firm can get success. Small businesses contain huge risk upon its various decision making process,

· The role of large scale ventures and organisations is to provide products and services to large target markets and to enhance the national economy of the country.

· The objective of large scale ventures is to keep on enlarging their target market to become market leader.

· These are considered large scale ventures due to enormous paid up capital invested by the management, large number of employees and market share.

· Large business entrepreneur operate their operational activities by earning large amount of profitability and revenue generation from the marketplace.

· Small scale of business have particular approaches and strategies to following the way of completion of various business tasks within the business environment in order to completion of business tasks on time (Landes, Mokyr and Baumol, 2012).

· Large business have wide numbers of employees at workplace for completion of various types of business activities in industry in respective manner.

· Large scale of businesses are following specific types of culture at workplace while performing various tasks of the business activities.

 

Social entrepreneur venture

Scalable entrepreneur venture

· Social entrepreneur venture is different from all other entrepreneur ventures. The role of these venture is to provide welfare services to the communities and societies.

· Social entrepreneur venture works for developing social welfare services and products by which development program and campaign can be carried out by social bodies.

· Social entrepreneur does not work for earning profitability and generating revenue (Estrin, Mickiewicz and Stephan, 2013).

· This type of entrepreneur does not require to having wide range of expertise within its employees in order to provision of social care services. They only need to hire voluntary works for completion various business functionalities.

· The role of scalable entrepreneurial ventures is to provide innovative and unique products according to the needs of customers.

· Scalable entrepreneur venture works for developing innovative and unique products and services for resolving short terms and long terms issues of peoples in society.

· Scalable business is running for earning profit and productivity for the business in terms of gaining sustainable development in competitive world.

· Scalable business entrepreneur require to expertise and skilled employees in case of improvement of new or innovative invention within products and services.

 

Similarities

Large scale organisation

Small entrepreneur venture

· Large organisation works for delivering unique and core business products and facilities for earning high volume of profitability.

· The objective of large scale organisation is similar to small and scalable venture which is to earn more and more profits and revenue to sustain in the competitive market.

· Large scale of organisation are running for offering wide offering large amount of employment in nation to development of economic value of the nation.

· They make efforts to introducing such product and services by which country peoples can reduce their risk and resolve issues which is facing by them.

· Small entrepreneur is also working for earning wide range of profitability within business environment.

· The objective of small scale entrepreneurial ventures are similar to other ventures in terms of generating profits and revenue.

· Numbers of small entrepreneur businesses also running for development within economic values of the nation by offering of wide range of employment opportunities to reducing unemployment rate of country (Cooper, 2017).

· Small entrepreneurs are working for introducing such kinds of services that can be utilised by their existing customers in order to resolving various types of problems which is facing by societal peoples of the country.

 

Social entrepreneur

Scalable entrepreneurs

· Social entrepreneur works for developing such products and services by which people welfare activities can be carried out by them in respective manner.

· Social entrepreneur works for people's welfare in country to improving quality of life of their societal peoples.

· Scalable entrepreneur also operating their business functionalities in order to launching such types of products and services by which peoples of communities can resolve their various issues within easy ways.

· Scalable entrepreneur making efforts for delivering such kinds of products and services which has potential for developing various types of services that can be utilised by customers to improving life style of peoples at great manner.

 

P3 Interpret and assess relevant data and statistics to illustrate how micro and small business impact on the economy

It can be analysed that there is a great impact of micro and small-business in order to improve and develop economic advantage that helps to enhance employment and future sustainable growth of nation effectively. The small business has a great impact on UK economy that there are various impact of such domestic markets are described below:

Number of SME in UK

Table 1: Total Enterprises in UK 2015-2016

Country

Total Enterprises

%SME

United Kingdom

5.5 million

93.3

The above table shows that there are 5.5 million entrepreneurial ventures exists in United Kingdom. Out of which approximately 5.1 million are small and medium scale organisations (Brenkert, 2017).

Number of Employment provided by SME

Table 2: Total Employment in UK

Country

Total person employed

%SME

United Kingdom

15.7 million

60

 

The above table shows number of person employed in different ventures in the country. It was identified that more than 15.7 million people was employed in different organisations out of which 9.42 million people are employed in small and medium scale organisations (Cooper, 2017).

Gross Value added by SME

Table 3: Gross Value Added 2015-2016

Country

Gross Value Added

%SME

United Kingdom

£634 billion (Gross Value Added (GVA), 2017)

54.4

 

The above table shows gross value contribution by various organisations incorporating in United Kingdom. From the analysis it was identified that gross value added by all the organisations in 2016 was £634 billion out of which £344 billion was contributed by the small and medium scale organisations

Gross Annual Turnover by SME

Table 4: Gross Annual Turnover 2016

Country

Gross Annual Turnover

%SME

United Kingdom

£1.8 trillion

47

 

The above table shows the gross annual turnover generated by all the entrepreneurial ventures and share of small and medium scale enterprises. From the analysis it was identified that in 2015-2016, the gross annual turnover contributed by all the organisations and enterprises was around £1.8 trillion pounds out of which £84.6 billion pound was contributed by small, micro and medium enterprises.

Economic growth: small business helps towards effective growth and development in local communities as well as domestic market. This will help to create employment opportunities which helps to increase economic standard of nation. There are different types of businesses helps to produce profitability for national and international activities or firms which is done by outsourcing effectively.

Adaptability to change climates: There are many small business's skill to respond quick changes ti changing economic climate (Burrows, 2015). Many local customers are there who stays loyal with organisation and small-business often build up revenue which is less than large business but they may have less in lose in times of economic crisis.

Future growth: It can be said that small business does not stay for long time expect the those who become profitable and increase their business activities. This will help to enhance business future growth and development in order to increase profitability and production. Various small companies that grow into large businesses often remain in the community in which the business was first established. Having a large corporation headquarter in a society can further help provide employment and stimulate the local economy effectively and efficiently.

It can be said that there is a great importance of small business in the development and effective growth of economy for United Kingdom effectively. The local market contributes almost 9% of the total economy and GDP rate of UK. Thus, it can be said that these businesses are able to improve and develop international growth which helps to provide employment and other opportunities to improve and develop life of an individual effectively. Various small companies that grow into large businesses often remain in the community in which the business was first established. This will help to achieve business desired goals and objectives in order to achieve sustainable growth and development which contributes towards economic growth and development.

P4. Significance of small businesses towards development of national economy

From the above analysis, it has examined that, multiple numbers of small businesses are running in the nation in case of provision of effective products and services in industry. It has examined that, small business operations are playing vital role in case of growing of social economy of the country efficiently. Small entrepreneur ventures are playing crucial role to proving as important part of UK's country economy (Brenkert, 2017). Numbers of SMEs are increasing frequently in the country year by year and making contribution for sustainable development of country peoples. From the analysis, it was noticed that, SMEs are making great contribution with respect to betterment of people welfare and social economy development of the UK effectively. In this context, the importance of small businesses and startups are described below:

Economic development contribution: IT has examined that, numbers of SMEs business are making contribution for economic development within various prospect of the economic environment of the UK. Small business provides varied of new products and services by which sufficient amount of profitability can be gained by numbers of small and medium business entrepreneurial. They are generating small amount of profit abilities by which sufficient types of entrepreneurial opportunities can be gained in sufficient form. From the analysis, it was examined that, numbers of employment opportunities are being furnished by SMEs entrepreneurial ventures and also generating wide range of profitability and revenue generation from the marketplace. So it can be said that, SMEs are being important for development of social economy of the nation.

Competition level: In case of small and medium business, numbers of entrepreneurial ventures are being increased within the business environment and increasing rate of profitability for the business. So it can be said that, competition level within SMEs industry raisin up because of increment in numbers of small and medium business in industries regularly increment in numbers of small business and their new core business products being cause of raising up competition level in SMEs sector efficiently (Audretsch, 2012). An agile start up might be focusing on to implementation of innovative technologies upon business activities at faster rate in order to generating desired success in business environment. So it can examine that, competition level has been increased in case of increment in the profitability level of the business. Competition level of the nation being cause of increment within innovation within business core products and new products as well. So innovative products assisting the country's people to resolving their current and contemporary issues of the firm within business environment.

Reducing unemployment: Unemployment is one of the crucial issues which is facing by UK country in order to increment in economic development of the nation. From the abive data analysis. It was identified that, in total employment rate of the nation in companies, more than 92% of total employed peoples of the country doing jobs in small and medium types of organisation in nation effectivel (Ahl and Marlow, 2012)y. So it can be said that, SMEs of the nation is making contribution for the UK country to reducing unemployment rate of the nation in sufficient form. Unemployment rate has been reduced after increment in SMEs business in nation, so peoples of the country preferring to working with SMEs to getting efficient employment form small types of organisations. In addition, new job opportunities are being increased within the corporate sector with the help of SMEs businesses. Country's unemployment issues has been reduced by it effectively.

Diversity: Diversity plays important role in case of invention and innovation within various existing and new products and services generation within business environment. It has examined that, SMEs also have more flexibility and can be started by almost anyone. SMEs is applying diversity approaches in case of generating and manufacturing of new products and services that can be applied in perfect form. These business are applying diversity approach which is, business functionalities, cultural and potential and large corporations at great rate. So it makes differences from each one business to another one. Diversity is being cause of arising invention in core business products of firms, so it helps to making contribution of diverse areas of the business in sufficient form. Small business is such business sector which can be started by anyone in marketplace, so diverse kinds of small business generating small amount of revenue for sustain lives of peoples. Overall revenue generation from small businesses is making contribution to development of economic values of UK respectively.

Innovation: Innovation in each sector is considered to be necessary factor which making contribution for proper development within business environment in respective form (Ács, Autio and Szerb, 2014). SMEs coming up in marketplace by introducing innovative products and services which has potential to satisfy customer's long terms and short terms needs. Innovation can be applied upon core and new business products which helping people to increasing lifestyles of communities or betterment in living quality and standard of customers. According to identification of current and modern demand of their customers, small and medium business owners making development and modification within its existing and new products which can gain expected market growth within the industry in respective form.

Sustainability: As education level of country's people are increasing, they are taking step further towards opening up new start-up in order to invention of new product and services which can resolve people's contemporary issues in effective ways. Sustainability of business is necessary part which must be adopted by its owner to having proper desired growth within business sector to sustain in marketplace perfectly. Sustainability of business in industry plays important role for social economic development of the country because of several corporate sector is making contribution to raising up national income and employment rate of the nation.

Turnover: Turnover can be considered as effective factor for economic development of the UK in possible manner. Among numbers of small businesses, most of them facing failure in case of reaching out to desired success in industry. So it provides opportunities to them to change to learn, recover, and rebuilt which is beneficial in the long for entrepreneurial ventures in corporate sector is driving new growth for economic development within business environment in perfect form. So it can be said that, turnover of new business towards starting up new venture can contribute to economic development of the UK.

International differences affecting the start-up businesses:

International differences affecting the start-up businesses in UK effectively. Various external environmental factors influencing small and medium business sector in UK to coming up within the country by introducing new products and services which build up gape among other existing products which is delivering by other companies in current marketplace of the state. UK government has introduced a memorandum which allow new start-ups and new business into UK's industrial areas to delivering innovative products and services according to customer needs and demand (Acs, Audretsch and Lehmann, 2013). Hence, it can be said that, numbers of foreign companies coming into UK country to launching their existing products and services which has potential to development country social economic value efficiently.

M1. Investigation of diverse range of entrepreneurial ventures to demonstrate an understanding of entrepreneurship in both public and private sector:

Public sector entrepreneur: Public sector entrepreneur is totally owned by Government of the nation which operate each business functionalities as per guidelines of government. In case of UK, multiple numbers of public sector organisations are being operated in the country which is serving variety of products and services by associating with government body to making changes into the traditional structures and processes of government. Networking and collaborating approaches are being implemented by organisations in order to building coalition for change across government. They are making efforts to building up agenda for government capacity for public innovation to provisions of sustainable life to peoples for mutual welfare. In nation, varied of public sector organisations are running as per government norms and carrying out various types of people development's governments to country's populations.

Following some examples of public sector entrepreneur in UK:

  • Audit commission
  • The government economic services
  • The government legal services
  • The Highways agency
  • Export credit guarantee department

Private sector entrepreneur: Private sector organisation is those who works for own personal business to developing new and innovative product or services by which they will be able to meeting their desired financial and business goals in industry efficiently 9Meyer, Neck and Meeks, 2017). It assists the national economy and controlled and managed by private individuals or enterprises. Numbers of private entrepreneur are running in UK and new start-ups are also arising within corporate sector. In order to competing its competitors in market, private sector drive down the prices of their existing products and services by which they can meet to desired goals and objectives of the firm. Various types of private sector businesses are running in the industry which is as following:

  • Sole proprietorships
  • partnerships
  • small and medium size entrepreneurship
  • large coronation and trade association

Social entrepreneurship – It is the utilization of start-up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues. This idea may be applied to a variety of organizations with different sizes, aims, and beliefs. A social entrepreneur is a leader or pragmatic visionary who: Achieves large scale, systemic and sustainable social change through an invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these.

Similarities and Differences

Social entrepreneur - They have double bottom line i.e., social and sustainable business model. They address a "critical gap or need" of the Poor. Have a proven & tested innovative idea., Predominantly NGOs, Not-for-Profits, Foundations or CSR activity. Ability to replicate and scale is limited by resource availability.

Public and private sector -The focus is on leveraging, the strengths of each player to achieve scale both - horizontally (geographically). And vertically (number of beneficiaries).

D1. Scope development and growth of entrepreneurship ventures

The scope of entrepreneurship development in country like India is tremendous. Especially since there is widespread concern that the acceleration in GDP growth in the post reforms period has not been accompanied by a commensurate expansion in employment.

 

D2 Impact of small business on different level of economy

Small business are flourishing and thriving in market economy of United Kingdom. They have greatly influences the national economy of the country and also provide adequate support in reducing the unemployment in the country. They have significant impact on different level in a economy such as local, regional, national and international.

  • Impact on local economy: Small business greatly impact on local economy. They provide products and services to the local market according to their needs and expectation.
  • Impact on national economy: 90 per cent of ventures in UK are small or medium size. They contributed greatly in enhancing the national economy by contributing greatly towards it (Trimi and Berbegal-Mirabent, 2012). These ventures further assist in reducing the unemployment rate of the country.
  • Impact on International Economy: Small and medium size ventures are now expanding globally laying footprints in the world. This helps in enhancing profits and revenue which ultimately effect the national economy.

M2

Entrepreneurship ventures in the United Kingdom are growing drastically and rapidly with the increase in governmental intervention and support. There are different types of entrepreneurial ventures that operates in the market of United Kingdom. Each of them have different scope, development and growth strategies. For instance, small business enterprises have limited scope but vast opportunities to capture the market and earn higher profits. Social entrepreneur ventures works for the welfare of the society (Naudé, 2014). There objective is to enhance the current state of societies by providing welfare and social services. Scalable entrepreneurial ventures are established when need of innovation arises. Large scale entrepreneurial ventures contributed greatly towards the growth and development of national economy. As the government of UK has been funding adequately in order to boost up the motivation and morale of entrepreneurs.

Concusion

It can be concluded from the above report analysis that An entrepreneur must be responsive towards the business opportunity which has been pick out by them by creative ideas. An entrepreneur conveys several types of characteristics and behaviours. In addition, they must be always motivate in case of execution of several types of complicated tasks within business environment. Different types of entrepreneurial ventures are running in the nation which is operating their business functionalities within particular industries of the nation. It can be analysed that there is a great impact of micro and small-business in order to improve and develop economic advantage that helps to enhance employment and future sustainable growth of nation effectively. Multiple numbers of small businesses are running in the nation in case of provision of effective products and services in industry. SMEs are making great contribution with respect to betterment of people welfare and social economy development of the UK effectively.

References

Acs, Z.J., Audretsch, D. B. and Lehmann, E. E., 2013. The knowledge spillover theory of entrepreneurship. Small Business Economics, 41(4), pp.757-774.

Ács, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), pp.476-494.

Ahl, H. and Marlow, S., 2012. Exploring the dynamics of gender, feminism and entrepreneurship: advancing debate to escape a dead end?. Organization, 19(5), pp.543-562.

Audretsch, D., 2012. Entrepreneurship research. Management Decision, 50(5), pp.755-764.

Brenkert, G. G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship (pp. 85-128). Routledge.

Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals): Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.

Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration of race and economics. SUNY Press.

Cooper, A. C., 2017. Networks, alliances, and entrepreneurship. Strategic Entrepreneurship: creating a new mindset, pp.201-222.

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Estrin, S., Mickiewicz, T. and Stephan, U., 2013. Entrepreneurship, social capital, and institutions: Social and commercial entrepreneurship across nations. Entrepreneurship theory and practice, 37(3), pp.479-504.

Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship & Regional Development, 25(7-8), pp.692-701.

Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.

Landes, D. S., Mokyr, J. and Baumol, W. J. eds., 2012. The invention of enterprise: Entrepreneurship from ancient Mesopotamia to modern times. Princeton University Press.

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