The report has put emphasis on the subject of entrepreneurship and Small Business Management. The report has highlighted the various types of ventures that belong to the part of typology of entrepreneurship. It is an interpretation of similarities and dissimilarities between the entrepreneurial ventures. The other part of the report has come up with a framework, which has been composed with the help of statistical reports based on the impact of SMEs in the UK’s social economy. It has been interpreted with the help of significance of small businesses and that put a positive impact on the business start-ups. The report has come up with the presentation of traits and skills that helps to develop the managerial skills of an entrepreneurship. It has been interpreted with the help of entrepreneurial motivational and skills that builds up the entrepreneurial personality.
The following research has been developed in order to identify the impact of small business on the economy of United Kingdom. The report will assess and interpret relevant statistics and data to exemplify these impacts on UK economy. Moreover, the report will emphasize various types of entrepreneurial ventures along with their relation with typology of the entrepreneurship. The differences and similarities between entrepreneurial ventures will be explored in it and in order to obtain knowledge regarding entrepreneurship in both corporate and public sector, report will investigate a diverse range of the entrepreneurial ventures.
Entrepreneur can be considered as an individual, who starts and operates a business with the help of limited planning and resources and this is the reason behind all the rewards and risks of business (Morris et al., 2018). Evaluation of the development, growth, and scope of the entrepreneurial ventures will be included in it. Report will provide a brief explanation of significance of small business along with business start-ups toward the development of social economy. In last part of the report, this will make the determination of characteristics traits along with skills of the successful enterprise, which can differentiate them from the other business managers. Moreover, with the help of using relevant examples, experience and background can foster or hinder the entrepreneurship.
There are four different types of entrepreneurial ventures and this part of the report will be highlighted all the different types of ventures. The four ventures are Survival Ventures, Lifestyle Ventures, Aggressive Growth Ventures and the Managed Growth Ventures (Piperopoulos and Dimov, 2015).
Survival Ventures: Offer basic subsistence for entrepreneur along with his or her family. Moreover, this business can or cannot register formally and typically holds very few assets and no premises along with any banking relation.
Lifestyle Ventures: Offer an income stream, which can be stable for the owners. Moreover, this is based on a business model, which is workable (Rae and Wang, 2015). Relatively self-effacing reinvestments are developed in order to sustain the competitiveness in the local market.
Aggressive Growth Ventures: These are referred to as the gazelles and it are typically based on the technology ventures with the help of strong abilities regarding abilities (Colombo et al., 2019). Moreover, these look for the exponential development along with funded with the help of equity capital.
Managed Growth Ventures: It has a model of workable business along with looked for a sustainable development over time (Rae and Wang, 2015). It is reflected in the launches of occasional new product along with periodic entry toward the new market.
Emergence can be considered as the time and over this, a new venture can be conceptualized along with created (Dew et al., 2015). This is the reason behind the occurrence of mistakes and during this emergent time, innovation and development can or cannot happen, or be required. Emergence occurrence can be high or low and this is looking sustainably for the development of high rates. Moreover, while not recommending a precise age, the venture can be considered as typically in the first five years of existence. Size becomes a very less applicable parameter as the potential incomes and the number of employees can be varied during emergence, which is based on types of industries along with the involved market.
There are both similarities and differences between the entrepreneurial ventures and this part of the report will provide the brief explanation of those differences and similarities.
At highest level, most of the small business entrepreneurs are searching to accomplish the financial independence with the help of building a profitable business and this can be effective to pay regular revenue. According to De Vries et al. (2017), they can aim to pass on business in order to later generations, or they can plan to sell the business in order to finance their retirement.
Small business entrepreneur tackles typically the opportunities of business with the potential in order to generate a decent living along with operating cash flow. For example, 3-10 years cannot be considered as one major factor as the reason entrepreneur’s objective is a regular business for the business.
According to De Vries et al. (2017), the lower risk combination, creation of decreased wealth and near-tern potential income leads small business toward the dilution of limit ownership.
Stability of job in the small business can be considered as much greater comparing to the big organization (Dew et al., 2015).
Small business can be considered as the heart of the economy of United State and this has been dawn of current age more or less.
The role of Small Business in the UK economy plays a quintessential role behind the establishment of the successful business conducts. The formation of UK’s economy is an amalgamated part made up from various issues based on the grounds of the small businesses (Heffernan, 2019).
From the above stated annotated graphical presentation has come up with the projection of the various scores related to the management practices and the types of business. The graphical presentation has come up with a reflection of Management Practice Survey (MPS) outcomes. It can be assess and interpret with the help of graphical presentation related to the management scores, which are higher among the category of non –family businesses. In the graph, it can be observed that there is an interpretation of output per worker (OPW) in all types of manufacturing business has presented the ratio of 40 per cent. On the contrary, the graph has presented the ratio of 52% of output per worker, who belongs to the category of not –family ownership types (Heffernan, 2019).
In case of family ownership types, the graph has come up with family owned ratio of 39% approx. family- owned and family –managed have presented the ratio of 37% approx. In case of Family-owned and non-family-managed have appropriately touched the 50 percent towards the contribution in UK economy. The graph has been interpreted with the ratio of 41% approx, in Domestic output worker (Heffernan, 2019). An interpretation of 54% belongs to the part of multinational status of UK economy. The graph has annotated the percent 53 of multinational with head office that are situated in UK. On the other way round, the graph has come up with an interpretation of 57% parent approx, which is based on the Multinational organizations that delve with head offices, which are situated in UK.
These two below stated graphs have provided the theme of negative impact that has been emerged from Brexit and its impact on the UK’s economy. UK has been interpreted with the ratio of 5.7 million that belongs to the part of SMEs. Among this, 99% belong to the private sector and other 60% is UK’s private sector employment (Heffernan, 2019).
In this above stated figure 2, the graph has presented the rate of non-innovator 12.2% that contributes towards the percentage of SMEs, in the UK economy. In case of innovator’s SMEs percentage, it has come up with 23.9%. On the contrary, non – exporter projects the ratio of SMEs in 13.6% and exporter has presented the ratio of 33.2% in the part of the SMEs (Accountsandlegal.co.uk. 2019).
From the above figure 3, it has presented the relevant ratios of the no employees, the small enterprises and medium enterprises. The figure has annotated the percentage of no employees with a ratio of 14.8%, micro that varies between 1 to 9 with a ratio of 18.9%, SMEs from 10 to 49 with a ratio of 23.4% and in case of medium enterprises from 50 to 249 with a ratio of 29.2% (Accountsandlegal.co.uk. 2019).
The essence of small business helps to grow the market share of the social economy in UK with its beneficial factors. The start-up business can be differentiated into four types of business such as, manufacturing, wholesale, retail and service. The role of entrepreneurship can be reflected into the forms that help to prepare the face the challenges, achievements and self-motivation (LLP, 2019). Small business plays a crucial role behind the occurrence of the social economy of UK. With the help of entrepreneurial, the start up business gains the enhancement in required skills, attitudes and initiatives that are usually taken towards the path of success.
Involvement of SME’s plays a quintessential role behind the establishment of UK’s social economy. SME’s help to enhance the economy that can be analyze with help of several criteria such as:
Development of the personal relationship – SMEs are referred to the formation of personal relationship, which is amalgamated with the customers, employees and suppliers. It helps to generate the interaction, which takes place between person-to-person (LLP, 2019).
Flexible response towards the problems and challenges – SMEs deals with an amalgamated hierarchy and whereas, in ace of large businesses, it comes up with the projection of procedures that are difficult to establish (Burns, 2016).
Innovation – with the help of innovative ideas, SMEs gains better results in order to maintain the decorum of profitable outcome in the global market. Innovative ideas take place due to the interpretation of conventional ideologies (LLP, 2019).
Lower overheads – due to the adaptation of small-scale operations in UK, the country have received the help from various sectors that belong to the main body of SMEs. SMEs have the presence that can be incorporated in the form of lower overhead costs. The ratio of lower overhead cost can be dealt in the form of heating and lighting costs that center rounds the issue of rates that needs to be pay (LLP, 2019).
Channelizing for niche markets – In cases of high overheads, the productivity level must be maintained in the form of output costs. On the contrary, this factor helps SMEs to gain more number of profitable results (Burns, 2016).
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