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Entrepreneurship and Small Business Management

Introduction

Entrepreneurship is the process of planning, designing and launching the idea of new business. It includes the financial risk about the particular business and the idea of creating a new business and as well as the actual process of starting a new business. This report is focused to identify the different types of entrepreneurial ventures and its relation with the typologies. The difference between the entrepreneurs, intrapreneurs and owners managers will also be analyzed in this report. Effect of SME and micro business will also be analyzed in this report. The last of this report will focus on the traits, characteristics and skills of the employees. 

LO1

1. Examine various types of entrepreneurial ventures and also give a comprehensive explanation of how these relate to the typology of entrepreneurship

Entrepreneurial ventures – Those ventures thatstart and runs by an individual withvery limited resources and a high rate of risk. It often includes new business ideas about any product or services. All entrepreneurial ventures are not the same (Bascini&Durucan, 2017). Ventures are classified into four different categories which are the following:

  1. Small business entrepreneurship – Small scale businesses often fund their business from friends, family, savings and small business loans. Grocery stores, travel agents, carpenters, plumbers, and storefronts etc. The idea of their success is to just make enough profit. They don’t want to take over the industry because they are just enough profitable. 
  2. Scalable startup entrepreneurship – Scalable startups are those businesses where they have a vision about their business idea. They attract investors to invest in their business idea, it called venture capitalists. Like startups in silicon valley, Shanghai, New York, Bangalore etc. 
  3. Large company entrepreneurship –Large companies offer new products or service according to the taste of customers, new competitors, legislation etc. they launch variants around their core products.
  4. Social entrepreneurship–These could be non-profit or hybrid types of companies. Their core focus is on creating new products or services according to social needs and problems (Morris, et. al., 2016). 

Typology of entrepreneurship–In the field of entrepreneurship, typology explains the classification of types of entrepreneurship. The following are the four types of entrepreneurs:

  1. Innovative entrepreneurs – This type includes those who invent the new ideas, new products, methods or process. These are the leaders types of entrepreneurs who discover markets for their own. Those people are risk taker and contribute to the economic development of the country. 
  2. Imitating entrepreneurs – It includes those entrepreneurs who immediately copy any new invention created by others. Those could easily find into those areas where there are lack of resources because of less resources no innovation could be develop there. 
  3. Fabian entrepreneurs – It includes those who are follow any invention only after they are sure about the outcomes. This type of entrepreneurs doesn’t take much risk and only follow if something satisfied their fears.
  4. Drone entrepreneurs – These type of entrepreneurs are far more conservative and don’t make any changes to the present mode of the business as they are afraid of applying any change to the organization. 

Entrepreneur ventures interrelates with entrepreneur typology

Ventures Typology Interrelation
Small scale ventures Craftsman
  • Less capital
  • Professional skills required
  • No communication skills
  • No investment
Scalable startups Social enterprises
  • Big investment required
  • Uncertainty for profitability
Large company Risk-Oriented
  • Uncertainty about the reaction of the new version of products or services
  • A lot of investment in projects
  • Very risk-oriented
Family oriented Managerial
  • Often managers handle family businesses
  • Every generation is not that great into running a family business

2. Explore the key differences between serial entrepreneurs, intrapreneurs and owner-managers.

Serial entrepreneurs Intrapreneurs Owner-Manager
Similarities
  • Common goal of making business successful
  • Have decision making authority
  • All have business managing ability
  • All have forecasting ability
  • Common goal
  • Decision making authority
  • Business managing ability
  • Forecasting ability
  • Common goal
  • Decision making authority of the business
  • Manage their own businesses.
  • Forecasting ability

Differences
Serial entrepreneurs Intrapreneurs Owner-Manager
  • Independent
  • Use own resources
  • Newly founded
  • Capitalized by own
  • Risk will handle by own
  • Profit as reward
  • Dependant
  • Use provided resources
  • Work for existing companies
  • Capitalized by the company
  • Risk manages by the company. 
  • Salaries as rewards
  • Independent
  • Own resources
  • Handling operations in ongoing process
  • Capitalized the company
  • Risk averse
  • Salaries as reward

3. Define public and corporate sectors demonstrate and investigate a variety of    Entrepreneurial ventures within the context of the public and corporate industry.

Public sectors – Public sectors include those enterprises which are self-financing enterprises that are under public ownership. It includes public goods and services like military, law, and infrastructure etc.  

Corporate sectors – It includes manufacturing and tertiary services. It plays a huge part in the domestic economy. It could be a bunch of companies with the same industries (Lee, 2014).

NHS (Public sector) – NHS was launched in 1948. The core idea of these ventures is that healthcare is available for all on every requires time. Earning profit is not the prime motive of NHS like other public sector ventures. It includes health care services, emergency services, health checkups, transplant and end of life care.

Greenergy International Ltd (corporate sector) – It is a UK based petrol and diesel company. It sells more than 20 million litres of fuels in a day. Greenergy produces and sells biofuel. It is one of the largest fuel producing and selling companies and one of the largest companies by its earning revenue. 

4. Examine the scope, development, and growth of entrepreneurial ventures you considered above. Your work should be critical and consider your own opinion as well.

NHS is one of the most popular and biggest ventures in the public sector in the UK. Services which are considered to be in scope are improving the quality of services of heart disease and care and support for those families suffering from negative or poor outcomes from any surgery. But these things are in the scope of the organization and will have a good plan of development in the future. NHS spends a lot of budget on drugs, health care services, and treatments. Growth and providing health care services to everybody is the prime motive for the future (Mcintosh, et. al., 2018).

Greenergy international Ltd is one of the biggest suppliers of fuels. They have a good infrastructure and service capability. To grow internationally, the company has to improve its services and will provide their services on more new places. The company co-founded with new oil and the chemical store called navigator which shows that the company is making some serious plans for their businesses.

LO2

1. Interpret relevant data and statistics on scenario 2 to assess how micro and small businesses have a significant impact on the UK’s economy. You may use specific examples to back your analysis.

Micro and small businesses play an important role in the UK’s economy. According to recent researches, it shows that these small scale companies have a high growth rate. In 2017, 36 percents of SME employers reported growth in small business survey. It shows vital growth in these sectors and helps to boost up the economy of the UK. 

Turnover of small and medium businesses in UK

Figure 1: Mean turnover by micro-business: by region

Source: Micro-Business Britain Survey, (2018).

The graph above explains the turnover of small and medium entrepreneurs in the UK. This shows significant growth in the turnover of these companies (Stephen &
Hart, 2018).

Export opportunities created by SMEs in UK

Not just SMEs high turnover helps to boost up the economy but it also helps to create more export opportunities. SME businesses help GDP to grow by increasing the export rate. Below mentioned will explain this:

Figure 2: Percentage of micro-businesses exporting:  by region

Source: Micro-Business Britain Survey, 2018.

SME organization like Unicorn grocery store, UK is one of the successful models of small, medium entrepreneurs who help to make a significant boost into GDP of UK by providing full time, part time jobs and increasing GDP. Above graph explained that in UK, SME are exporting to all over the UK which increase the economy significantly. 

Small and medium businesses providing employments in UK

Small businesses play a significant role in the creating employment in UK. The following graph explains about it. 

Figure 3: % of employment small business provided

Source: Market Inspector

The above graph explained that small businesses are having a highest percentage of 99.3% for providing the employment in private sector in UK. Total employment in SMEs was 15.7 million that was total 60% of all the private sector employment in UK.

2. Define social economy with one example. Explain how small business and business start-ups are vital and significant in growth and development to the social economy of the UK.

The social economy is taken as a third party from the private and public sectors. It is mostly non-profit, not for profit and voluntary organizations. Many social organizations just provide services to their customers but not for profit. Governance typically operates through one member, one vote basis. It includes credit unions, trade unions, sports associations, and school and hospitals organizations like British Biathlon (sports union of UK – a governance body)(Cowling, et. al., 2015).

Small business and business start-ups are an important part of the economy. HGSB are just a fraction of total small scale companies in the UK. 20% of growth in the social economy in the UK was from goods and services produced by HGSB. It helped to create new jobs in the UK. Employment was earlier a big issue for the country. Then startups were on its boom which helped the country to come up with this problem. Now, the UK is all about the scalable startups in the market. It brings overall growth in the country and helped to attract tourists and import-export business and all which helped the country to make a boost in the social economy of the UK.

It has a significant growth rate in all the small scale industries. They increase their turnover every year. Within the last 5 years, they prove that these industries are one of the most growing industries worldwide (Brammer, et. al., 2012). Especially in the UK, it helped to create a balance within all the small scale business and microscale businesses. It helped to find out talented and skilled persons with specific degrees and skills. So it is helping them overall like giving a boost in social economy and providing them jobs and, increases business and achieves significant growth in the national and social economy in the UK (Rotimi, et. al., 2017).

3. Evaluate the differences small, medium and large businesses make to the economy at different levels of the economy, such as local, regional, national, etc. by using relevant statistics.

Small, medium and large businesses have their own significant impact on the economy at different levels of local, regional and national economy. The following are the differences:

Funding – Funding could be the utmost level of difference between small, medium and large scale businesses. Small scale businesses usually have funding from their friends, family, and relatives. On the other hand, medium and large scale businesses have a large group of investors who fund their financial needs. It provides them with very much help in starting their businesses and providing them help to settle down in the market.

Differences in a niche market –Small and medium businesses often focus on the local niche markets because their target customers are a localneighbourhood. Large companies mostly have a wide range of customers, it could be national, international so those companies don’t usually target niche markets. Their targeted customers create a difference between SMEs and large companies.

Size basics – The size of the employees working in the company is showing the difference between small and medium and large scale organizations.. Anything more than that will be considered as medium or large scale organization.

Legal structure–The legal structure of the company like owners who will be liable for debts creates a difference between small, medium and large organizations. 

4. Critically examine how small businesses have an impact on different levels of the economy in a local, regional, national and international context.

Small businesses are an important part of the UK economy. It makes a huge impact on different levels of the economy. Small scale industries have the following impact on the economy’s different levels (Salter, 2015).

    • Local/Regional economy levels – ITplays a vital role in even in the local or regional economy of the UK. It helps to open new markets and expands niche markets of the area. In 2014, almost 5.2 million businesses were small scale businesses in the UK which explain the situation as well. It helps to grow the industries all over and creates millions of jobs every year for the people. Employment was earlier a big issue in the UK but from the last few years because of small businesses everybody is having a job there and a good living standard.
  • National economy – small businesses helps to increases the productivity of the economy of the UK. It contributes 47% to the national economy every year. It plays a significant role in boosting productivity.The public-private sector partnership helps it to deliver high-quality returns in small businesses.  It helps to drives growth rate high. 
  • International context –Small businesses attracts huge changes in the import-export market and it helps to attract more and more investors for investing in new and innovative small scale startups which shows the strength of the economy. It makes a good reputation in the UK in all other countries (Toma, et. al., 2014).

LO3 and LO4

1. Determine the characteristic traits and skills of successful entrepreneurs (Alan Sugar) that differentiate or distinguish them from other business managers.

Entrepreneurship is the process to start and run the business successfully. This process seems very easy at first but planning an idea and implement that idea into a successfully running business could be that natural process. It requires a lot of efforts, hard work and some unique characteristics, traits and skills for being successful entrepreneurs such as Alan sugar were one of the most successful entrepreneurs of all time in the UK. He didn’t bear with a silver spoon, but at a very early age, he was able to understand the power of ownership. He started his electronic items business at the age of 21, and he was one of the only persons back then who identify the need of electronic item which gives him great success and open the path of opportunities. The following are the characteristics, traits and skills for being successful entrepreneurship which is still very useful for today’s young entrepreneurs (Elen et al., 2012). 

  •   Motivation – Self-motivation is one of the prime requirements for being an entrepreneur successfully because there will be many times during the business when things will be not according to the expectations, and that leads to negativity in an entrepreneur very quickly because things are quite unpredictable in the market more often. Alan Sugar did face some struggle in the early age of his life. But not only had he motivated himself for the goals he decided at the age of 20. During the downfall in the economy or GDP of the UK, his companies affected, but he didn’t lose hope and made better strategies to come up with this crisis. 
  •   An opportunistic   – A successful entrepreneur should be able enough to identify and grab new opportunities in the markets. An entrepreneur will be competent barely to understand the new opportunities which are available or could develop in the future. Alan was the person who always promotes new opportunities in every industry. That makes him different from other entrepreneurs. He prefers innovation in a new industry which helps him to provide a new idea about starting new businesses with unique ideas 
  •   Challenger – Most of the times, in business things are not according to the plan, or the desired outcomes will be different often, an average person will not be able to face the challenges, but the entrepreneur should be an unbeaten challenger first so there would be any issues in hard times. Alan set the most challenging goals and then he was so persistence to conquer his goals. He believes that picking up the safe path will never lead to uncovering the dangerous way which will not let the person discover the unexpectedly positive results. 
  •   Branding – Branding is essential for being a successful entrepreneur for the future. In this competitive world, having an understanding of branding will be suitable for being good at business. A brand can quickly identify among its competitors. If a person understands the importance of branding, then only that person can convert into successful entrepreneurs such as Alan who needs no introduction today. He is a well-known TV personality and politician and a great entrepreneur of all time. A Businessperson should always focus on the branding of their company, products and services. 

Above mentioned qualities are those who will be very helpful for the entrepreneurs to make them good at entrepreneurship and will be useful to them to run the business successful which help them to turn them different from other entrepreneurs such Alan Sugar. The lessons from his success and failure stories will always be beneficial for fellow entrepreneurs.

2. Assess how aspects of the entrepreneurial (such as Alan Sugar, Richard Branson, etc) personality reflect his entrepreneurial motivation and mindset by exploring and examining different lines of argument relating to entrepreneurial characteristics.

Personality explains a lot about a person. It is a combination of qualities and characteristics. Alan Sugar and Richard Branson are now very famous people but they earned this with special qualities in their personalities. Personality makes with some skills, attitude and some special qualities which make that particular person far more different from other persons. 

Richard Branson is a very fearless person. He is not afraid of any change. He welcomes each and every change in the trends of the market and tries to make a profit from that. He is very much optimistic. He is not afraid of making the wrong choices or decisions. He usually tries to understand each and every trend of the market which going to help him in new businesses. No doubt, he owns more than 400 businesses under his brand Virgin and this is the only thing which makes him different from other entrepreneurs (Shende, et. al., 2012).

He launched Virgin Cola under his famous brand Virgin. It is a completely different sector for him and this industry has already very much competition into. People said earlier that it was not a good idea to invest in soft drinks business when it had already a lot of competition. But Richard proves everybody wrong because since starting he believed in this idea of Virgin Cola. Richard Branson has a very interesting personality and some special qualities for being a successful entrepreneur among all other entrepreneurs. He is very successful. Alan Sugar has those special qualities too. These skills and qualities make them successful and now they are an example for other people who want to try their luck into start-ups. A good entrepreneur should have the following qualities:

Innovative

  • Self-motivated
  • Opportunist
  • Optimistic
  • Risk taker

An entrepreneur would apply those above mention qualities into their business; it would surely bring them success. 

3. Analyze the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples.

Entrepreneurs are those mindful people who have a strong sense of business. Who can innovate and have a positive vision towards their products and services? These people are very optimistic and highly motivated which helps them to achieve their business targets on time. For being successful into business few following qualities are required:

  • Innovative – Facebook is one of the most required things for today’s time. It changes our way of life. Facebook is now a part of everybody’s life but nobody was even aware of any of these kinds of things. It made a huge success. An entrepreneur should be innovative enough that can create the need for their particular products or services. Mark Zuckerberg, Steve Jobs are a few examples of innovative entrepreneurs (Miah, 2016).  
  • Smart – thinker – If an entrepreneur is able to think out of the box, then he would only generate new ideas and easily execute them into their business but if entrepreneurs are creative enough to think those ideas which could possibly change the living of people that would make him smart entrepreneurs like Mark Zuckerberg etc. 
  • Risk – taker – Starting a new business, is always a risk running thing. Worrying about the money of investors, profitability and debts/loans will never be helpful in running a successful business like the iPhone changed the world of mobile phones.
  • Initiative–It is the utmost quality of the person who wants to run a successful business. Being initiative is important so that person could possibly make the first step about their products or services and launch them into the world.

4. Examine and evaluate the different environments (background and experience) that foster or hinder entrepreneurship.

For being a successful entrepreneur it is the most important thing to have some specific characteristic traits, skills and motivational drivers which help them to achieve their organizational goals in pre-decided time. Achieving the goal on time is the biggest issue among new entrepreneurs. There are many different environments which can develop some hinder foster situations for the business in the future. The following are those factors which are related to the diverse backgrounds which made an impact on the industry:

Background – Samsung is one of the most popular brands of South Korea and everybody knew this brand, it needs no introduction. It started by Lee-Byung-Chul. He was the founder of this well-known company. He was not a rich man, after started working at various jobs at the end he decided to work for his own. At first, he took the business loan but it didn’t work for him or for his company. Earlier he was not trucking business but soon he realized about the upcoming innovation into this industry and starts this company. Taking a business loan often creates a hinder foster situation for the company.  Loan means debt which will be a liability for the company. The loan hinders company to make progress into the future (Jung, 2014). 

Education – Education plays an essential role in developing an idea into successfully running the business. Facebook is one of the most prominent examples in today’s world. Mark, the founder of the company Facebook which is now one of the most profit making and famous company in the world. Mark thought about the idea of Facebook, during his college days and his education plays a vital role in developing the concept to a successful business (Romero and Errico, 2017). 

Experience – Experience is an essential thing in accessing and running a successful business idea. Experience makes an entrepreneur aware of the situation which that person could face into the market when that person was running the business.

Conclusion

On the basis of the report, it has been concluded that small and micro business firms create s avast effect on the economy. It helps to manage the employment rate in the country which is essential. It is also identified that entrepreneurscontain a huge difference from the owned managers and intrapreneurs. Different entrepreneurs have been analysed in this report which has helped to identify the positive and negative effect of the past life on the entremets ideas and growth. 

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