ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Executive summary
The entrepreneurial ventures can help the country gather a significant amount of growth in the economic perspective. The business organisations are able to provide the mass with a better amount of job opportunities. The study determines the relevance of the existence of the SMEs in the market of the United Kingdom. The context discusses about the key aspects of the entrepreneurial mindset and gives an idea about their successful approach in the business. The study even elaborates about the different characteristics that an entrepreneur must have in order to sustain in the market. The report further explains about the contrasting impact of positive and negative aspects that fosters the entrepreneurship skills.
Section 1- Different types of Entrepreneurships 3
Common types of entrepreneurial ventures in local businesses 3
Similarities and differences in entrepreneurial ventures 4
Impact of small business in the economy of the UK 5
A critical examination of scope, development and growth of entrepreneurial ventures 6
Evaluation of the differences between the small, medium and large business 7
Contribution of the small, medium and large business organisations in the country economy 8
Section 2: Understanding Entrepreneurs 11
Assess the relations among entrepreneurial personality, motivations and mindset. 300 14
The business organisations that are operating in the market of the United Kingdom have to have the idea about their contribution to the country economy. Different kinds of entrepreneurial ventures can help the organisations to contribute a significant amount of business growth in the relevant operating market. The study mainly discuss about the different types of entrepreneurial ventures in the market of the United Kingdom. The scope, development and growth of the small scale business organisations are also depicted in the study. The study supports the development of the small scale business in the United Kingdom with the help of the data collected from reliable sources.
An entrepreneur is a person who is looking forward to forming a business in the desired market with limited source and planning. As opined by Lee and Huang (2018), entrepreneurial ventures are generally started at a small scale because of the lack of resources and investments. The entrepreneurial ventures can be defined in different kinds for a better understanding of the organisational structure for the process of carrying forward the business. Following are the different entrepreneurial ventures that are visible in the economy of the United Kingdom:
Small business entrepreneurship
Small scale organisations in the market of United Kingdom have a significant appearance for forming a strong economy of the country. As stated by Bertoni et al. (2019), most of the entrepreneurial ventures are of small scale in the economy of the country. For instance, the organisation Hassle.com in the market has started with limited resources and has been able to capture the market with the produced ideas (helpling.co.uk, 2021).
Large company entrepreneurship
Large company entrepreneurship is the aspect of possessing a definite amount of life cycles in the organisation. It can be stated that the organisations that have started in a small scale in small scale in the market of the country can turn into a large company based on the amount of growth they achieve in the relevant field. For instance, the organisation Cocoon has started its business in the market of the United Kingdom. However, the organisation has been able to gather a significant amount of business growth in the market of the country with the explicit quality service they provide to their consumers.
Scalable start-up entrepreneurship
The scalable start-up is the aspect of the entrepreneurial venture when it consists of an idea that can change the course of the world. As stated by Morris et al. (2018), the scalable start-ups can gather better investors based on the prospect of the idea that the organisation is producing. These organisations are aspects which include experimentation over the subjects.
Relation of entrepreneurial ventures to the typologies
The entrepreneurial typologies differ on the basis of the ideas that the organisation produces. The business sector that the organisation is operating on can be designated as the determiner of the typology of the entrepreneurship. Morris et al. (2018), the entrepreneurial ventures are determined by the understanding of the scale of the organisations. It can be stated that the entrepreneurial ventures and typologies have a significant relationship between them. The types of the business that the organisation deals with, determines the entrepreneurial ventures in the organisations.
Similarities
The entrepreneurs of the country are differentiated on the basis of their operations and strictures and the kind of idea they produce to serve to consumers of the country. Following are the similarities of the entrepreneurial ventures in the UK market:
As opined by Autio et al. (2018), the entrepreneurial ventures start with innovation in their service provision in the market.
The ventures are able to provide a vast array of job opportunities in the market of the country.
The entrepreneurial ventures are often able to turn into an aspect of change of method in the operations of the relevant market where they are operating.
Differences
Despite having a lot of similarities in the operations of the entrepreneurial ventures the organisations hold several differences in the existence in the relevant market. Following are the differences in entrepreneurial ventures:
The entrepreneurial ventures hold different categorised intellectual property even when they are providing similar services in the market.
As observed in a study by Schjoedt and Valencia (2018), the entrepreneurs promote different kinds of governance based on the difference in the venture.
The entrepreneurial ventures vary the organisational structure as well that creates a difference in the service.
The small scale organisations in the United Kingdom have been able to provide a significant contribution to the economy. As stated by Page et al. (2017), the small scale organisations have produced a large number of job opportunities in the relevant market for which the GDP of the country has been increased. The organisations are the aspects for which the United Kingdom has been able to gather growth in the economy even after the decision of Brexit.
Figure 1: Percentage of small and medium enterprises (SME) in the UK in 2019
(Source: Influenced by Statista.com, 2020)
The figure above is the depiction of the percentage of the small and medium scale organisations in the market of the United Kingdom (Statista.com, 2020). As per the study of Federation of Small Business, the small-scale organisation in the country has been able to help gather 643.2 billion Euros in the economy (Statista.com, 2020). As observed in a study by Statista.com (2020), business organisations have been able to provide 27.5 million jobs all over the country. The micro business organisations of the country of the United Kingdom have been able to gather growth with the help of the innovation in the ideas. The small business ideas in the country have been able to create the need for their products as well. With the help of the innovation in the business ides of the small and micro businesses, the business organisations are able to gather better performance for the organisation. The developments of the organisations have been able to create an awareness for the homemade products in the market.
Scope
The entrepreneurs of the United Kingdom have been able to derive new ways to gather growth in the organisation. As opined by Barbera et al. (2017), the small business organisations are able to develop products based on the creativity of the owners and the entrepreneurs can sell the same in the relevant market of the country. Because of the uniqueness of the idea, it is able to be popular in the market. The organisations can create demand for the product they are selling with a thoughtful approach in the service provision.
Development
The aspect of development lies in the process of providing service to the consumers of the country. The small scale organisations are able to change their organisational structure based on the gathered growth and employee turnover of the same. The business organisations are able to develop their process of operations based on their mode of service and gathered revenue in the relevant market.
Growth
The entrepreneurial ventures are able to obtain growth in the market by the service they are providing. As per the observation of FSB, it can be said that the business organisations have to choose their organisational structure properly for the betterment in the acquired growth in the market of operations. As stated by Muriithi (2017), the small scale entrepreneurs can gather growth with the implementation of proper strategies in the management of the organisation. The economy of the UK is helpful for SME organisations to gather business growth in the market. the organisations will also be able to return the growth from the economic perspective in the country.
Factors |
Small |
Medium |
Large |
Scale |
Small business organisations possess a relatively small size in the operational methods in the market. |
The medium business organisations are greater in the structure from the small business organisations. |
The large business organisations are the aspects where a huge mass of products are generated for the consumers. |
Scope |
Small business organisations have several scopes of growth in the relevant market with the adaptation of changes. |
As stated by Nieuwland and Van Melik (2020), the medium organisations are able to gather a medium amount of scope because of the even greater structure. |
The large scale organisations possess little scope of innovation in the market because of the larger scale of the same. |
Number of employees |
Small business organisations possess a limited number of employees to carry forward the tasks. |
Medium organisations consist of a better number of employees to carry forward the tasks of the organisations. |
The large scale organisations possess a large number of employees in the process of performing the tasks. |
Table 1: Difference between the small, medium and large business organisations
(Source: Influenced by Nieuwland and Van Melik, 2020)
Impact of business start-ups and small businesses on the social economy on the different markets
Local
The small scale business organisations are able to produce the maximum amount of growth in the local market of the country. As opined by Brown and Mason (2017), the local market of the UK is largely benefited with the contribution of the small scale business organisations. It is the observation of the FSB that the organisations can provide job opportunities to the local folks of the operating area. Therefore, the organisation is able to gather better brand recognition and consumer attraction in the relevant market. The start-up organisations that look after to deliver products to the consumers are able to gather a better recognition in the market. Creation of the brand recognition will be able to provide the organisations with a better sale of the product they are providing in the market.
Regional
The ideas of the small and medium business organisations are able to help the product reach to the inter-regional market. For a vast market like the United Kingdom, the business organisations are able to develop growth based on the outlook of the entrepreneur towards the expansion of the product. The country economy is largely benefited with the expansion and operations of the organisations in the regional market of the country. The introduction of the products of the organisation in the inter-regional market will be able to gather better consumer attraction for the products. The business organisations that look forward to gather growth in the market has to determine the strategies accordingly. The development of the business organisations are relied on the determination of the organisational strategies.
National
The business organisations that are operating the local or regional market have to expand in the national market for a better gathering of growth for the organisation. As opined by Quartey et al. (2014), the business organisations are able to contribute a greater amount in the national market with the introduction of the idea. The expansion of the organisations in the national market is an aspect of determination of the organisational strategies. The development of the organisations will be done on the basis of the gathering of consumer attraction. The marketing strategies of the organisations look forward to create a social impact in the market of the country. The expansion to the national market will be able to provide the desired growth to the organisations.
International
The business organisations mostly the large companies are able to develop business growth based on the urge for expansion in the international market. Though the organisations have to determine and implement proper strategies, the economy of the country is largely benefited with the global expansion of the business organisations. The business organisations that are already operating in the national market gather their desired growth with the help of the expansion in the international market. The development of the business organisations will be done on the basis of the amount of social attraction the get from their marketing strategies.
It can be concluded from the above study that the economy of the United Kingdom is largely benefited from the contribution of the small scale organisations. It is evident from the study above that the economy of the country is suitable for start-up organisations and they can flourish in the United Kingdom. The study includes different scopes that help start-up organisations gather better growth in the relevant market. The study has discussed the similarities and differences between the different types of the start-up organisations. It includes the instances of the local organisation that have been able to gather business growth in the market of the United Kingdom. The study sheds light on the statistical data that denotes the contribution of the small scale business organisations in the country economy.
Section 2: Understanding Entrepreneurs
In today’s time, having an entrepreneur is very crucial for the development of a country; they help in improving and raising the standards of living. Entrepreneurship is important for numerous reasons starting from introducing innovation to driving the economy of the country even higher (Eijdenberg et al, 2019). This report sheds light on the characteristics of entrepreneurship and it gives ideas about the successful local and global entrepreneurs. The study even discusses the different impacts of entrepreneurs that help in the success of entrepreneurs while reflecting both the situational and motivational factors. The context further focuses on the experiences of the entrepreneurs and their positive and negative effects, which is contributing to their success in a country.
Provide at least 3 examples of successful local and global entrepreneurs to illustrate the characteristics and traits of entrepreneurship and the enterprises they are have led to success.
Entrepreneur |
Local |
Global |
Characteristics
|
|
|
Skills |
|
|
Traits |
The local entrepreneurs are self-motivated and they have the courage to take the risks. |
The global entrepreneurs, they regularly try to improvise the living and improve the product or services by innovating new products and services. |
Analysis
Maintain the growth of the economy, the local businesses helps a lot in influencing the revenue of the country. Both the local and global entrepreneurs help in developing new business ventures and start-ups to enhance the growth of the country even more. Taking into the scenario of the local entrepreneur of the United Kingdom, for instance, the local company Rapyd, was started as the cardless mobile payment company that provides the financial networks. For the local entrepreneurs, one can take the example of Monzo, this firm is the only digital bank platform business. Even the Funding circle is the lending platform for the small business platforms all these local businesses are gaining their name in the market by providing services to citizens (Sanyal et al., 2018). In recent times, the firm has probably distributed its fintech business in the local areas of United Kingdom.
The organisation successfully gained profit, so that they develop their business even more. For instance, the global entrepreneurs, taking the example of Tesco founder Jack Cohen, it is the multinational company, and it has distributed its market all over the world. Tesco has become one of the leading supermarket chains giving tough competition to its rivals. Even discussing the global socialisation platform facebook founded by Mark Zuckerberg and Microsoft founded by Bill Gates, all these global entrepreneurs have that charismatic approach in their business style and that is a reason behind their success internationally (Ogunlana et al., 2018). The organisation is successful in its business execution and they are earning profits because of their global approach.
Explore different lines of arguments for entrepreneurial success and impacts of situational and motivational factors.
As per the line of Mark Zuckerberg, he has stated that ‘By giving people the power to share, we’re making the world more transparent’. Based on the statement, it can be stated that with the help of appropriate motivational factors such as the extensive rewards can be classified as the power of the organisation (PANCASILA et al., 2020). In fact, based on the situation it is the responsibility of the FSB that they have to adopt the specific changes in order to gain positive responses.
As per the quote of Bill Gates, he has stated that ‘If you can’t make it good, at least make it look good’. Based on the above statement, it can be stated that with the help of the motivational factors pressure on the team gets minimised and they work together to perform even better. On the other hand, the situational factor of the FSB, they have to give certain power in the hands of their employees so that their team can recognise the importance of teamwork (Angerer et al, 2017). Even understanding the decision making power to develop the organisation even more.
As per the line of Jack Cohen, he has stated that ‘Pile it high and sell it cheap’. Based on the above line, it can be observed that the motto of the owner of Tesco is to make their products cheap for people all over the world. Here the motivational approach that comes in mind is how this multinational supermarket strategises the production cost so that they can sell at a cheaper rate to their customers (Gielnik et al., 2017). Whereas, based on the situational factor, talking about the duty of the FSB, firm the managing head must try to imprecise their working condition so that they can make appropriate strategies for their development.
Critical evaluation of the impact on the motivation and situation factors
Entrepreneurship helps in promoting research and development so that they can create lots of opportunities for the people in the outer world. By considering the above statements from the world’s biggest entrepreneurs who are ruling their business functioning in their sector, they all have understood the organisational norms (?apien? et al., 2017). Whether it is Mark Zuckerberg, Bill Gates or Jack Cohen, they all have their own formulation in their business functioning. It is the responsibility of FSB’s administrative team to take the quotations of these famous personalities seriously and improve their business operation so that they can inspire their worker to work with full motivation.
Assess the relations among entrepreneurial personality, motivations and mindset.
Entrepreneurs need to have a clear and specific mindset, and then only they can control the entire business operation within their firm. In order to have a successful career, an entrepreneur must have a positive attitude towards every problem. This helps them in having an optimistic point of view related to every issue that is coming and limiting the efficiency of their organisation (Kouakou et al., 2019). Negative thoughts never leave a person and as a result, it keeps on haunting the de-motivating the individual and because of this, the person will not be able to explore further in their business.
Apart from this, having a creative mind is a must for entrepreneurs to increase their production at another level. Creative thinking helps the person to think out of the box, something that is not common form the rest of them. It helps the business to stand out from the crowd and make their own identity in the market (Stephan et al, 2017). It helps in motivating the individual to develop their business even more so that they can enjoy lots of revenue and earn foreign exchange as well.
Tenacity and the ability to learn from the failure is the other important aspect for the entrepreneurs so that they can understand their weak areas that are creating a drawback for the growth. Having a positive personality helps the individual to identify their threats, which can be a great danger for them in future.
For the successful path, an entrepreneur needs to have an optimistic personality so that they can feel motivated towards the work and have a particular mindset to achieve the higher goals and objectives in the coming future (Moore et al., 2021). The management team of FSB must consider these points to support their business in the market.
Analyze how background and experiences hinder or foster entrepreneurship skills giving contrasting examples critically providing their positive and negative influences on the successful entrepreneurship.
A personal experience helps a person to have a particular point of view related to every aspect of the business. The background of the individual can be on anything whether it is the educational one or the having a powerful family or friends or even the good financial background. It helps the person to feel motivated towards their goals set a business organisation so that they can foster their growth in the business sector even more. Having power financial support helps the entrepreneurs to have to take a risk in their business and develop their business even more (Bublitz et al., 2020). All these points help the individual to foster their career more positively.
It is not always important that all these factors only contribute to the development of the entrepreneurs. Sometimes having without the support of the family and not a powerful financial background acts as a barrier for the entrepreneurs. Even having a bad experience also, matter it continuously de-motivates the person haunts them about their failures. All these drag the person down and hinder them in their successful business journey. The background and the experiences of the person highly influence the person in both the positive and the negative ways. The FSB is motivated to increase their business even more so that they can run their business with full efficiency.
From the above discussion, it can be concluded that entrepreneurs are important for the economical growth of a nation so that to create a social change within the country they must have an entrepreneur. Entrepreneurs have the ability to increase the employment of the nation, both locally and globally. In order to contribute to the development of the nation, an entrepreneur plays a major role in creating wealth and enabling the market to give products that are even more advanced or services to the customers. It can be said that an entrepreneur must have an optimistic point of view if they want to develop their business even further. The context even highlighted on both the local and the global entrepreneurs and the way they are different from each other in their business approach. In the end, it can be concluded that an entrepreneur must have a creative mindset in order to maintain the sustainability of the firm within the operating market.
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