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Entrepreneurship and Small Business Management
STUDENT NAME & ID
NUMBER
Qualification
Pearson BTEC Level 4 Higher National Certificate and
Level 5 Higher National Diploma in Business
Academic Year
Sept 2020/21
Unit Number and Name
Unit 9: Entrepreneurship and Small Business Management
Unit Leader
Dr Olabode Gbobaniyi
Unit Lecturer/s
Dr Jennifer William, Peter Emelone, TsitsiMarima, Farhan
Quereshi, Kanaka Prabhu, Prashidha Pradhan, Elly
Nmecha, Usman Ali, Dr Olabode Gbobaniyi
Assignment Title
Developing Entrepreneurial skills
Type of Assignment
Formal Report & Presentation
Weighting
100%
This is to confirm that this submission is my work, produced without any external help
except for acceptable support from my lecturer. It has not been copied from any other
person's work (published or unpublished) and has not previously been submitted for
assessment either at GBS or elsewhere. I confirm that I have read and understood the 'GBS
AcademicGood Practice and Academic Misconduct: Policy and Procedure available on
Moodle.
I confirm I have read and understood the above Student Declaration.
Student Name (print)
Signature
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Date
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Table of Contents
Part A- Presentation ................................................................................................................... 4
Introduction ............................................................................................................................ 4
Discussion .............................................................................................................................. 4
Conclusion ............................................................................................................................. 6
Part B- Report ............................................................................................................................ 7
Section 1 ................................................................................................................................. 7
Introduction ............................................................................................................................ 7
Discussion .............................................................................................................................. 7
Conclusion ........................................................................................................................... 10
Section 2: Understanding Entrepreneurs .............................................................................. 12
Introduction .......................................................................................................................... 12
Discussion ............................................................................................................................ 12
Conclusion ........................................................................................................................... 16
Reference List .......................................................................................................................... 17
Appendix .................................................................................................................................. 19
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Part A- Presentation
Introduction
Entrepreneurship is defined as entering the market for creating and delivering products and
services to meet customer demand and gain social and economic value (Burns, 2016). Small
business refers to managing and controlling the administration by an individual or small
group of people. It plays an important role to enhance innovation and provide employability
at a large scale in the industry. The presentation will be done for aspiring entrepreneurs
coming to attend a Business Starter Workshop organised by FSB.
Discussion
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Small Business Entrepreneurship: The entrepreneurial venture is mostly managed and
controlled by an individual or group of people with limited resources to earn a profit (Julien,
2018). The business has limited scope and financial resources to operate at a low scale. The
business has the benefit of having complete autonomy over decision-making and profit
margin. For example, Nina Devani started her business idea to make computer software with
Devanisoft to remind the customer about their password.
Large company: The business venture operates at a large scale with a high number of
resources in terms of capital, manpower and supply chain (Gabrielsson, 2017). The large
business has an extensive financial opportunity with a large number of resources. It has a
large sustainability opportunity and scope to reach an untapped market and increase revenue.
However, the business faces high competition worldwide that incorporates high risk. For
example, Tesco is a multinational supermarket company that has a strong supply chain and
market share in the UK.
Scalable Entrepreneurship: The business start-up aims to deliver products and services
with a radical approach by offering a unique idea to make a high profit (Susilo, 2020). The
business venture consists of profit with a high capacity of risk to earn profit. However, the
business contains a large potential risk that might affect sustainability. The venture focuses
on gaining a competitive advantage in the market with unique value. For example, Dyson
Company has a radical approach by creating an innovative product in vacuum products.
Social Entrepreneurship: The entrepreneurship venture aims to work not-for-profit to meet
and address the issue of society (Carraheret al., 2016). The business gains voluntary
participation from people and finance that helps to operate to counter the societal issues. The
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business has lower risk and investment as it finds opportunities through public funding and
donation. For example, Just Giving is a social enterprise that raises funds and donations for
charity.
Typology of entrepreneurship venture
Individual entrepreneurship:The typology aims to earn profit through managing and
controlling activities individually. The small business is suitable for the typology to operate
business as per the self-interest and gain complete profit.
Corporate entrepreneurship: The typology referred to as working as a corporate at a large
scale with high resources. The large business works as a corporate entrepreneur that enhances
supply chain and global reach.
Public sector entrepreneurship: The typology is defined as operating activities to address
social concerns with gaining economic value. Social entrepreneur is suitable for the strategy
to create social welfare.
Explore the similarities and differences between entrepreneurial ventures.
Similarities:Every business venture aims to provide products and services to the target
audience to meet needs and wants. Each aims to perform business activities by making
investments and taking a risk. The venture involves financial resources that help to meet
sustainability. Moreover, each entrepreneurial venture follows a leadership style and focuses
on gaining skilled and technological resources to meet sustainability.
Element
Small business
Larger business
Social
Owner
It is owned and
managed by an
individual or
group of
persons.
The CEO and
Board of Directors
manage the
business. It does
not consist of
permanent
ownership.
Individuals,
corporations, or
associations can take
ownership of the
venture.
Risk
capability
The business has
low potential
risk due to low-
scale
opportunities.
The venture has a
high potential risk
due to extensive
competition.
The business does
not have a profit aim
that limits risk.
Resources
The business has
It has a larger
The resources vary
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limited resources
and scope that
reduce
scalability.
supply chain and
networking with
extensive
manpower and
investment.
as it requires
voluntary
participation.
Decision-
making
The individual
owners have
complete
autonomy over
decision-making.
An expert such as
the Board of
Directors takes the
decision.
The owner or
government mostly
takes the venture’s
decision.
The
available
source of
finance
It gains financial
support from
savings, bank
loans and
relatives' money.
Venture improves
financial scalability
through profit
earning, deposits
and others.
The entrepreneur
would get finance
public funding,
donation and charity
amount.
Table 1: Difference among entrepreneurial venture
Conclusion
The study has found that entrepreneurial venture such as small businesses and scalable start-
ups can enhance their opportunity and scope through digital technology.
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Part B- Report
Section 1
Introduction
The study will assess the impact of micro and small business on the economy. It will
illustrate the difference among entrepreneurial ventures. The report will be prepared from the
perspective of the consultant from the Federation of Small Business (FSB).
Discussion
Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact the economy.
The small business highly contributes towards the economy in terms of innovation,
technology, employment, growth and others. It will identify the factors of SMEs that highly
impact the economy.
Size:The small business helps and encourages people to become entrepreneurs and invest in
the country's available resources. The UK could high generate income through start-ups and
small businesses by earning taxes in several terms. The UK has around 6 million Small
businesses operating in the market that generates a high amount of taxes income for the
country. The SME's accounted for 99% of the total business operates in the UK in 2020
(statista.com, 2021). However, the over-dependency on small scale businesses would highly
affect the economy due to disruptive marketing environments such as Covid-19.
Figure 1: Number of SME's in the UK
(Source: statista.com, 2021)
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Generate Income and Investment opportunity: UK government highly encourage its
people to enhance investment and generate profit through entrepreneurship and small
business at the local scale. SME's have a positive impact on generating revenue and creating
investment opportunities to get favourable returns.It can generate profit opportunities with a
high margin that can be invested in economic development activities in terms of deposits,
stock market and others. With the help of earning and investing cycle, the UK economy
benefits to reduce the inflation rate. To establish SME in the UK needs business loans that
range from 0.5 million pounds to 5 million pounds for 3 to 7 years. It has generated 11
thousand British pounds of average profit in 2020 (statista.com, 2021). Yet, the average
profit of large-scale businesses is more than small and medium businesses.
Figure 2: Average Profit of SME’s
(Source: Statista.com, 2020)
Create Jobs: A large number of SME's operations helps to provide employment and creation
of wealth for society. It creates social and economic value by providing employment
opportunities and improves the standard of living. Moreover, it helps to reduce poverty as
SME's requires small resources to perform the job that can be easily scalable and available.
Small businesses employment accounts for two-thirds of the total employment in 2020 across
the UK. It has provided job opportunities to 16.8 million people from the employees. In
contrast, it would face issues to maintain employee rights and legal compliance with limited
profit.
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Figure 3: Employment in SME’s
(Source: merchantsavvy.co.uk, 2021)
GDP: SME has a positive impact on the GDP's to enhance national value and resources to
that build competency in the market. It enhances economic development that can provide
sustainable growth. SME's contribution towards GDP accounted for 473 GBP in the
economy. It will have a positive impact to avoid economic crisis and maintain balance and
reduce dependence on large businesses. However, the GDP contribution is limited with a
national and regional scale that does not heavily expand internationally.
Explain the importance of small businesses and business start-ups to the growth of the
social economy.
The small business operates at the local level to satisfy the customer needs to enhance social
value.
Innovation and technological advancement: Small business involves with extensive
innovation and technological advancement than large-scale businesses. UK's SME consists of
a large number of operations in the market that creates unique selling value for the customer
to gain a competitive advantage. The small business aims to protect its product and service
with Intellectual Property Rights through trademark, copyrights, and patents. Moreover, it
enhances its opportunity over digital media to engage customers and gain global reach.
Hence, UK has achieved the second rank in innovation and technology across the world. It
has raised its innovation and technological capability through SME's that are highly active in
digital activities such as online sales, digital payment and others.
Drive industrialisation: Small and medium businesses provide sustainability and drive the
industry through its daily activity that helps to maintain industrialisation. SME's survival in
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the economy plays an important role to maintain industrialisation activity and sustainable
growth rate in the UK economy. The industrialisation activity is highly contributed by the
SMEs to lead profit and revenue. UK's SME has a survival rate of 89.1% for one year that
ensures sustainability and drives economic development in a particular industry in 2017
(statista.com, 2017).
Figure 4: Survival Rate of SME’s
(Source: Statista.com, 2021)
Create wealth for the nation: The SME focuses on following legal obligations to maintain
sustainability which provides high revenue generation for the nation. It plays an important
role by paying taxes such as VAT, Corporate tax, and income tax from the revenue
generation of products and services. SME's provides high opportunity by developing
infrastructure and social value for the people. SME's also performs corporate social
responsibility to create social welfare and address issues to leverage the living capabilities of
vulnerable people.
Provide products and services: SMEs are highly indulged and they promote products and
services to meet the needs and wants of the customers. The small business identifies and
delivers the product and services by identifying issues to overcome the social and economic
values. It plays an important role to satisfy customer wants and provide high-perceived value
through its product and service offering.
Conclusion
From the above study, it can be concluded that Small and medium business plays important
for the economy to create wealth for the nation, improve innovation and technological
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advancement, provide product and services and others. It has a positive impact on the social
economy by creating jobs, contributing to GDP, revenue and operation. The study has found
that entrepreneurial venture such as small businesses and scalable start-ups can enhance their
opportunity and scope through digital technology.
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Section 2: Understanding Entrepreneurs
Introduction
An entrepreneurial mindset consists of values and habits that help them to achieve growth
and high success across the world. The study will explain the characteristics and traits of
entrepreneurship mindset that are successful at local and global levels. It will explore the
different aspects of entrepreneurial personality that leads to motivation and a positive
mindset. The report will provide a suitable example that explains how the background and
experience foster or hinders the performance towards success.
Discussion
Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers.
Skills:
Skills can be defined as the talent of an individual that is distinguished from others
(Almahryet al., 2018). An entrepreneur has sound knowledge of