Entrepreneurship & Small Business Management

Entrepreneurship & Small Business Management

Executive Summary

The report is involved with private enterprise and financiers. The focus of entrepreneurship is crucial as it can alter the route a country’s market is operating. Throughout this report, some of the most pertinent facets of private enterprise will be produced and characterized such as categories and variety of business ventures, similarities, or disagreements between innovative projects. The variant parts of private enterprise namely civic and commercial will be recognized, debated, and related to appropriate instances. Inside this position, there will also be a widespread study of the power of SMEs (and large corporations) on the UK economy, endorsed by existing data and figures. Modern instances of innovative businesses and recognized financiers will be offered to deliver a greater knowledge of free enterprise and its implications.

Introduction

Entrepreneurship is the core of every business, as the economy is unpredictable, having expertise and aptitudes to be in a new business. Every enterprise, whether small or large, requires an entrepreneur. The forthcoming report is cantered on the evaluation of the topic that is Entrepreneurship & Small Business Management. The subject-matter of entrepreneurship is prominent as it can influence the way a nationwide market is operating. All through the report, pertinent facets of free enterprise will be characterised and produced such as impacts of various ventures, similarities, and variation between entrepreneurial endeavours. Within this study, there shall be a general evaluation of the impact of small enterprises in the UK economy supported by data and statistics.

Part1: Entrepreneurial Ventures

The impact of different types of ventures including local, social, global, etc. on the economy of the country (locally and internationally)

• Impact of local venture on UK economy

The small business economy makes a prominent influence on the UK economy, forming 98% of private-sector businesses. Furthermore, it provides tremendous growth opportunities to back dynamic and innovative companies such as IW Capital Portfolio (iwcapital.co.uk, 2019).

Based on the survey data, it has been understood that out of 10 respondents, 60 % of the population strongly agrees that the organization had led to a positive influence on the UK economy because of long-term employment commitment, whereas 10 % of the respondent states to be neutral in regards (Refer to appendix 1).

• Impact of social venture on UK economy

According to the Social Enterprise report of 2018, UK social business sector contributes 3 times more to the economy than the agricultural industry. The social venture is worth £60bn to the UK economy, 3% of GDP, and 5% of all employment. In fact, it leads to a surge in social inclusion, create and boost monetary expansion. For illustration, Jaime Oliver restaurant has benefited the young generation from puir education to enhance world class chefs (financierworldwide.com, 2020).

• Impact of global venture on UK economy

Global ventures account for 40% of employment and less than 1% of businesses. The global organisations pay greater salaries and enjoy superior revenues which lead to a successful market internationally. For instance, a large British organisation such as BP at present ranked as 18 on the Forbes Top 500 Companies. The organisation utilizes over 70,000 people and has 1,200 maintenance goals in the UK (euractiv.com, 2021).

Explore and investigate the similarities and differences between entrepreneurial ventures.

• Similarities

Sole proprietorship and partnership are not costly and easy to set-up. These kinds of businesses are not independent authorized individuals. Thus, these businesses do not file their tax refunds, and everything retained by the owners directly. When an enterprise runs a sole proprietorship or partnership, both the ventures are liable for their commercial debts. Since partnership and sole proprietorship are not distinct from one other, they have a restricted sphere. For instance, if one owner dies or the other quits or if any other person is ready to take off the company, the proprietor necessitates to set up their alliance or sole proprietary (business.azcentral.com, 2021).

The similarities between partnership and corporation are that they are both owned by groups of entities instead of a single entity. Moreover, both corporation and partnership are prominent section applied information of a business. Sole proprietorship, partnership, and corporation pass their revenue straight to their proprietors. Therefore, it acts as an advantage for filing taxes to run the business. The LLP is a hybrid of both partnership and corporation which acts as a benefit for excise and obligation safety.

• Differences

Factors	Sole proprietorship	Partnership	Corporation	Limited liability partnership
Definition	The sole proprietorship is the simplest business form in which one can operate a business. Moreover, it can operate under the name of its proprietors or a fictional name.	A partnership is a conventional agreement by two or more parties to manage and oversee a business and discloses its gain.	A corporation is a legal object that is distinctive and detached from its proprietors (companiesinn.com, 2021).	A limited liability partnership is a partnership where some partners based on the jurisdiction have restricted obligations. In LLP, each partner is not accountable for the other partner's wrongdoing.
Ownership	A single possessor	Two or more proprietors	Usually owned by many shareholders	The proprietor approves the proprietorship to an executor.
Profit or losses	All gain passes to the single possessor	Gain divides equally, or by preordained conditions among the possessors.	Shares are confirmed and given to investors (alllaw.com, 2021).	Here legatees’ profits from the gain.
Liability	The processor has unlimited liability	Usually divided among the proprietors centered on the conditions.	The entities of restricted responsibility are not directly liable for actions within the corporation (alllaw.com, 2021)	The trustee is accountable for managing the trust.
Decision-making	All decision is made by a single proprietor	Owners in the alliance are accountable for the choices.	Board of Directors and shareholders	Trustees.
Tax	The proprietor is taxed on his expenses from the organisation	The proprietor is taxed on corresponding capital	A corporation assessed as a “person”	A trust is taxed as an individual.
Examples	Any local grocery of the UK.	Yoomoo	BP Company	Same DAY Doctors Holding LLP

Table 1: Difference between entrepreneurial ventures

Data & statistics to assess and critically evaluate the impact and importance of small, medium & large businesses on the development of an economy

A micro enterprise is the kind of enterprise that manages on small scale. The corporation customarily has an owner and less than 10 staff. For instance, in the UK, Diamond Kebab is a micro-commercial retained by one individual and overall, of two employees having the highest commercial income of £6.5 million. In the UK, between the years 2000-2017, the figure of corporations has risen by 64%. As such due to this, 99% of the enterprises in the UK are SMEs. Therefore, it is prudent to interpret that SMEs also have the maximum service of 60 percent in proportion. Glancing at the total revenue of the SMEs, presented, the inference is that SMEs have the maximum intensity of the business. Additionally, the role of SMEs with the economy of the UK is to provide employment and promote monetary effectiveness and modernization (statista.com, 2021).

Figure 1: Statistics of SMEs

Source; (parliament.uk, 2021)

The quantity and nature of small companies that were promoted to the financial system of the UK economy at the national stage (2017) are specified under:

Figure 2: Contribution to the UK economy

(Source: parliament.uk, 2021)

Small and start-up industries are crucial to the expansion of the social budget such as both the industry is the appliance of the UK market. Moreover, the business has the greatest social market influence since they can achieve the lesser levels of the culture.

Figure 3: Large Companies in the development of UK economy

(Source: Statiscs.com, 2021)

Small and start-up industries are crucial to the expansion of the social budget such as both the industry is the appliance of the UK market. Moreover, the business has the greatest social market influence since they can achieve the lesser levels of the culture. In the present era, the significance of small and medium enterprises has considerably upgraded. The discrepancies that small, medium and large businesses exert on the UK economy can be concluded by examining the statistics. Small enterprises (0 to 49 members) account for around 96% of all companies and 48% of work. Furthermore, medium enterprises that have staffs between 50 and 249 preserve 12% of the employ and almost 4% of firms. Large corporations reported 40% of occupation and excluding 1% of companies. Besides, large enterprises have gained 49% of the entire commercial revenue in the UK (statista.com, 2021)

In the UK, a profitable small company such as Hub Dental Practice from Milton Keynes requires less than 49 workers to operate correctly. As of the type of fiscal division that it is involved in the firm will maintain its existing clients and concurrently entice more. Though the revenue each client is not very elevated status. The firm will produce great revenue owing to the soaring total of users. 

For illustration, a profitable substantial British firm in the UK is BP, presently positioned 18 on the Forbes Top 500 Businesses. The business engages over 70.000 individuals and has over 1,200 maintenance positions in the UK. Likewise, it is illustrated that based on the facts of 2019, BP has the highest yearly income. The location of new enterprises often impedes the expansion of present businesses. Increasingly the development professionals progressively, are deserting traditional methods to a fiscal expansion that relies on hiring large businesses with tax breakdowns, economic inducements, and other enticements. Based on the interview, it is illustrated that 80% of the respondents believe that strategy of a company is well enough to generate a good rate of profit, whereas 10 percent of the respondents strongly disagree in regard (Refer to appendix 3).

Investigate and critically examine the scope, development, and growth of entrepreneurial ventures both in the public and corporate sectors.

Public sector

• Scope: The public industry entrepreneurial ventures are grave in fulfilling and creating policies. Besides, the scope of the public industry includes the importance of employees and arises from the policies controlling economic growth and structure of the economic structure of the country. The scope of this sector is restricted, and country-owned businesses play a prominent role in the nation's economy (Malatjie et al., 2017).

• Development: Through policy measures that are featured by the entrepreneurship of public industry, there is an advancement of new technology and more modernization throughout the market (Fenwick and Johnston, 2019).

• Growth: Every successful and high -growth organisation has an entrepreneurial “training track” and a long-term economical approach. The employees in this sector have growth in job employment. There is high standard bureaucracy growth, and the tax rate is funded (Malatjie et al., 2017).

Example: The instance of public sector Transport for London (TfL).

The organisation is a regime corpse that conducts to deliver vital assistance to the civilization. Being portion of the community segment entrepreneurship TfL is financed by levies with a elevated intensity of officialdom and it does not pay productivity with income inducements.

Based on the interview, it is analysed that 80% of the respondents strongly thinks that company’s productivity meets the expectation of the team so far. The training aids to increase the productivity of the team within an organisation (Refer to appendix 4).

Corporate sector

• Scope: The scope of entrepreneur business is limited in the private sector. However, the private industry plays a critical part in pulling up the small entrepreneurs from surpassing civilization.

• Development: The corporate sector focuses on the development of benchmarks with effective upgrade and price control. Furthermore, the corporate industry assembles indigenous entrepreneurs for enhancing a lot of those lying at the bottom of the financial pyramid (Yaluner et al., 2019).

• Growth: Corporate entrepreneurship is more anxious with the recognizing prospects to change or state a corporation to make again. They have purposefully become vital for growth. The sector has accountability including constitutional and political. While comparing with the public sector, corporate entrepreneurship is more apprehensive with the economic inducement reliant on performance.

Based on the survey, it is estimated that out of 10 respondents, 90% of them think that the public sector provides more and advanced career employment in contrast to the private sector as the public industry focuses on services rather than gain (Refer to appendix 2).

Example: A pertinent illustration of corporate segment entrepreneurship is Virgin Group Ltd. Virgin Group Ltd is vigorous in numerous monetary segments such as travel, hospitality, banking, exosphere, fitness, and others. Through, competition, the firm can reconnoitre, recognize, and capitalize in innovative entrepreneurial prospects.

Based on the survey, it is analyzed that 80% of the respondents think that private organisations provide attractive salaries and more percentage of respondents think that there is the retention of employees (Refer to appendix 5).

Part 2: Entrepreneurial Mindset

Scope of entrepreneurship covering one local entrepreneur, one global entrepreneur, and one social enterprise and explore their situational factors, similarities, and differences.

An entrepreneur sees the chance which others do not fully acknowledge. The objective is to make the prospect meet an unfulfilled requirement or enhance the functioning of the present industry.

Scope:

• Local Entrepreneur (Owner manager): Flexibility, inspiration, positive and future-oriented.

• Global Entrepreneur (Intrapreneur or Entrepreneur only): Vision-oriented, Fearless, Produce innovative explanations (resources.net, 2020).

• Social entrepreneur: The scope of social entrepreneur function is the objective of changing the structure of the culture. The entrepreneur works for enhancing systems and accomplishing new explanations and forming the procedures.

Situational factors:

• Local Entrepreneur: creativity, risk tolerance, openness to opportunities (Huusko, 2020).

• Global Entrepreneur: Skill to build partnerships, development of market internationally, and capability to organize multi-nationally (Nabil, 2020).

• Social entrepreneur: Unemployment, Poverty, health policies and facilities.

Similarities:

The significant similarities between local, global, and social entrepreneurs are that every endeavor is of a start-up company. The companies of the proposals are new to the market or are going to begin in the market very soon. All the businesses in the project are trying to seize the marketplace with the distinctiveness of their manufactured goods. These are the potential parallels of the ventures.

Differences:

Local Entrepreneur	Global Entrepreneur	Social entrepreneur
Small industry entrepreneurship has the lowest quantity of assets and is primarily deemed as a specific business kind.	A large company is another component of the company undertakes that intends to seize the marketplace by its effects.	There is social corporate entrepreneurship which only provides their goods to the public wants only.
The local entrepreneur focuses on a particular area.	The main aim of an entrepreneur is on economic refunds	The main aim of the entrepreneur is on a social refund (resources.net, 2020).

Table 2: Difference between different entrepreneurs

Shared Entrepreneurial traits and characteristics

Following are the entrepreneurship traits and characteristics that are needed to enhance by Tom Mercer and Elizabeth Gooch:

Unwillingness to give up

An enormous amount of energy is needed among the individual to make the establishment of business successful. Mercer and Gooch need to be considered a failure as a part of business, therefore, to make the business successful they need to enhance a never-give-up personality among them. Never give up personality can result in the evaluation and implementation of newer strategies for the improvement of their businesses; therefore, this trait of entrepreneurship can foster their entrepreneurship mindset.

Desire to always question

In order to make the business successful, both entrepreneurs must enhance the desire to know more out of the box. This can be considered as a significant trait of entrepreneurship that can help them to identify the opportunity for their businesses. Therefore, this trait can foster their entrepreneurship mindset.

Long-term vision

Being shared entrepreneurs, one can be responsible to look at the areas from where the business can get the opportunity to grow and, in another hand, another one can be responsible to look towards the future (Hoyte, 2019). This can be considered as an entrepreneurship trait that can foster the entrepreneurship of Mercer and Gooch.

Capability to get others behind them

Being a shared entrepreneur, it can be necessary for entrepreneurs to be it can be necessary for both Mercer and Gooch to gain people beside them to tackle every consequence that can arrive in front of the business. To get people beside them, both entrepreneurs must communicate with their teams regarding the mission and ideas of the business. If the team members agree with their opinion, then this trait can effectively foster their entrepreneurship.

Passion for work

Being entrepreneurs, both entrepreneurs must have a high level of energy and passion regarding their work. This trait can foster their entrepreneurship as a passion for work always results in positive overcoming all the failures in a business.

Deep self-understanding

To be a successful entrepreneur, both Mercer and Gooch must be aware of what are the things that are needed to be decompressed in their businesses during facing challenges. This entrepreneurial trait can foster their entrepreneurship mindset as deep understanding if every aspect of the business can help them to estimate the possible opportunities and thereat6s for the business much more effectively.

Always-adoptive mindset

As global technology is on the path of rapid improvement and the food trends and demands of people, also change rapidly, therefore, it is necessary for both Gooch and Mercer respectively to enhance adoptive personality among them. Always adaptive personality can help both entrepreneurs to bring and implement change easily in their business structure and processes that can result in effective mitigation of challenges in the changing environment of their respective business industries (Mersha and Sriram, 2019). Appropriate decisions regarding the implementation of the most appropriate strategies for the business can foster their entrepreneurship otherwise it can be hindered.

Traits, skills, and motivational drivers of successful entrepreneurship

Following are the characteristics traits, skills, and motivational drivers that are needed to be enhanced by Mercer and Gooch to be a successful entrepreneur in the respective businesses:

• Creativity

As improvement in software can only be brought with creative ideas, the quality of the food items can only be improved to creative knowledge of tastes, and uniqueness in the food is necessary items, therefore, to make the businesses successful, both Gooch and Mercer must be innovative on their respective businesses.

• Persistence

Never give up personality can be suitable for both the entrepreneurs to make the business successful as this personality of them has brought their business to this stage where they are standing today (Clark et al., 2018).

• Calm during failure

As failure is a core part of the business small success in the implementation of any strategies for the business can result in an increased amount of motivation in the entrepreneurial mindset of Mercer and Gooch.

• Risk tolerance

To make the businesses successful, both Mercer and Gooch must take risks and estimate the possible outcomes from both positive and negative perspectives.

• Team building

To make the businesses successful, both of the entrepreneur's must-have skills to make effective teams for their respective business processes. To make an effective team for the business both Mercer and Gooch need to have effective communication skills.

• Decisiveness

As the leader of their respective business, both Mercer and Gooch must make difficult decisions for their businesses. This can be considered as the most crucial skill that can decide the future of their businesses.

• Curiosity

Willingness to learn new things can be considered a significant character trait that are needed to have in both Mercer and Gooch as enterers (Mamabolo et al., 2017). This characteristic of entrepreneurship can make them easily find opportunities for their business and make the business successful.

Conclusion

As per the comprehensive analysis, it is determined that entrepreneurship is described as the indispensable facet that permits entities to improve commercial opportunities. It facilitates in-person abilities growth that can be used to begin a new company or oversee current corporate pursuits. The business of Gooch that is EG solution has been gained hike in the profitability after making Rodney the chairman of the company in the year 2005. This year the annual turnover of the business got an increment of 28% and earned a total amount of €4.2 million. But in the year 206 and 2077 the business face problems with losses of £700,000 and £800,000, respectively. After this loss, Gooch decided to focus on the market of the United Kingdom instead of the overseas market.

To enhance a strong brand position in the market of the United Kingdom, a strong entrepreneurship strategy was needed to overcome the loss of the business and this influenced Gooch to make an effective entrepreneurial plan for EG solution. After the summer of 2008, the commuters were started hesitating to pay extra for healthy breakfast items from MOMA. After organizing several marketing campaigns Mercer was able to position its products in some great wins such as Waitrose, Ocado, and Virgin Atlantic. Mercer was also baler to establish MOMA carts in stations of London, but he now has plans to expand its business out of London and this willingness influenced him to make an effective entrepreneurship plan for his business.

Reference List

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Appendix

Appendix 1: Primary data sources

• Survey done between 10 employees

1. How far do you agree that IW Capital Portfolio has shed an impact on the UK economy?

Responses	Number of respondents	Percentage of the respondent (%)
Strongly agree	6	60
Agree	1	10
Neutral	1	10
Disagree	2	20
Strongly disagree	0	0

2. Which industry would provide you with more career advancement opportunities?

Responses	Number of Respondents	Percentage of Respondents (%)
Public	10	90
Private	7	70

3. Do you think that the strategy of your company is well enough to generate a good rate of profit?

Responses	Number of respondents	Percentage of the respondent (%)
Strongly agree	8	80
Agree	3	30
Neutral	4	40
Disagree	6	60
Strongly disagree	1	10

4. How strongly do your company's products meet the expectation of your team so far?

Responses	Number of respondents	Percentage of the respondent (%)
Training	7	70
Accurate Payment	6	60
Feedback on performance	9	90
Credit and acknowledgment	4	40
Safety	8	80

5. What type of job guarantees and consequences are offered in the private sector?

Responses	Respondents	Percentage of response (%)
Attractive salary	8	80
Employee retention	9	90
Insurance	5	50
Early retirement	3	30
Automation process	4	40