This study has been created on entrepreneurship and small business management. Entrepreneurship and small business can be defined as the start-ups that are new and innovative and employee less amount of people in it. This study has been carried out on the two cases that is Elizabeth Gooch and EG Solutions PLC and other one is Tom Mercer and MOMA Foods. They are the start-up and the small business in the UK (Schaper and et. al., 2014). The main aim of the study is to support the line manager at the Entrepreneurship and Small Business Management Council to contribute to the resources that are used by line managers. In this study several ventures that are the part of an entrepreneurial group have been explored, growth and development ventures have been examined, impact of the cited ventures on the UK economy, an environment that hinders growth and characteristics skills of entrepreneur have been analysed in the study.
Examine different types of entrepreneurial ventures and how they relate to the typology of entrepreneurship ventures
Entrepreneurship is a process that is used by an entrepreneur in order to establish their own business so that their overall profits can be improved. They are the one who takes financial risks in order to improve their growth. In the first case, Elizabeth is a CEO of EG solutions who establish their own business by taking the fund from friends and family. In another case, Tom mercer start their own business and open a shop so that healthy food can be provided to the people.
There are different types of entrepreneurial ventures in the market and they all perform their operations in an efficient manner so that they can accomplish their objectives. Every person starts their business on the basis of a particular vision and mission. Through this, they will be able to give direction to their employees so that they performed in order to serve the quality products to their customers (Bridge and O'Neill, 2012). An entrepreneur is the owner of their own business and they set the goals so that they can improve their growth at the marketplace. There are four kinds of entrepreneurial ventures such as:
Small business entrepreneurship: There are many small business organisations that are established by an individual so that they can fulfil the desires of their customers. There are approx 5.3 million start-ups which perform their operations in United Kingdom. For example, grocery shop, retail store, agents are some of the small businesses that are run by an entrepreneur. These people hire workers from their family members so that they can improve the growth of their firm. In order to start their business, they take fund from their family members or financial institutes. As per the case study of Elizabeth, she started her business by taking the fund such as £1,000 from their family and friends. Entrepreneurs are one who start their business by taking some risks. These can be related to factors such as finance and so on. Small business entrepreneurship is related to the entrepreneur key venture so that their overall performance can be improved.
Scalable start-up entrepreneurship: These types of entrepreneurs are the one who starts their business with a vision and mission. They recruit skilled and knowledgable employees so that they can improve their growth and generate more revenues. They perform their operations in an effective manner so that they can take their business towards large scale so that high profits can be achieved (Dennis Jr, 2011). Managerial business owners are the one who is very challenging and innovative towards their activities and operations that they have to perform in an efficient manner. They are responsible to perform their business in an ethical manner so that overall goals can be achieved in the right direction.
Large company entrepreneurship: These types of entrepreneurs perform their operations at large scale and along with this they follow a life cycle so that they can improve their growth in the market. They focus on the needs and demands of their customers so that their overall satisfaction can be increased. They have many competitors in the market so the manager of large enterprise have to perform competitive strategies so that they can achieve competitiveness. An intrapreneur is an entrepreneur in the large business organisation who uses their skills in order to enhance the profitability of an organisation. They are focusing on the processes or activities that rather than a whole company.
Social entrepreneurship: These types of entrepreneurs are the one who creates products and services so that they can fulfil social needs (Gorgievski, Ascalon and Stephan, 2011). Their main aim is to improve the welfare of society and to enrich society.
These different types of entrepreneurial ventures are related to the typology:
The accomplished entrepreneur: This type of entrepreneurs follow all the stages of the entrepreneurship so that they can achieve success in the market. Mainly these people are a large scalable entrepreneur who focuses on the needs and demands of their customers.
The determined entrepreneur: These entrepreneurs are more determined towards their work and their goals. Scalable and small business entrepreneurship ventures create their own vision so that they can enhance their growth in the market than any other competing firm.
The research entrepreneur: There are some entrepreneurs who perform research in the market so that they can establish their business (Carraher and Paridon, 2015). They are more focusing on learning activities so that they can perform their operations in an efficient manner. Large business enterprise conducts a survey in the market so that they will be able to identify the needs of the people. On the other hand, new start-ups also perform these activities so that they can attract new customers. For example, Tom mercer first conduct research in the market and then start their business.
The similarities and differences between social entrepreneurship and lifestyle entrepreneurship
There are many entrepreneurs who perform their operations in the market on the basis of their aim and objectives. Everyone wants to grab an opportunity that will lead them towards success. There are two distinct types of entrepreneurs such as social and lifestyle entrepreneurs. They both perform their operations in an efficient manner so that they can enhance their growth and welfare of the society (Fassin, Van Rossem and Buelens, 2011). There are some differences and similarities between these types of business owners are:
- Objectives: Social entrepreneurs are the one who create innovative and quality services for the people so that they can fulfil their social needs. Their main aim is to enrich society and to attain sustainable profits. On the other hand, there are some lifestyle entrepreneurs whose main aim goal to increase the market share and generate more revenues.
- Mindset: This is the biggest difference between the social entrepreneurs and lifestyle entrepreneurs that in which direction they lead their business (Chittithaworn and et. al., 2011). The first one establishes their business in order to reduce poverty in the country and the other one focuses on money and capital. Along with this, on the basis of their mindset, they set their visions so that they can provide quality services to their consumers.
- Value creation: Lifestyle entrepreneurs are focused on the needs and demands of their consumers. They offer innovative and quality products to their consumers as compared to the other competitive firm. On the contrary, social entrepreneurs offer valuable services to their consumers so that they can improve welfare in society. They gave a positive impact on society so that overall economic growth can be improved.
- Marketing communication: lifestyle entrepreneurs are the one who performs promotional activities so that they can increase brand awareness among all the people of the country. They spent a lot on these advertising activities. For example, they can use radio, social networking sites, newspapers and so on (Sampaio, Thomas and Font, 2012). On the other hand, social entrepreneurs are the one who didn't use these promotional activities as they believe in word of mouth marketing strategies.
As per the case study of Elizabeth Gooch, she is the lifestyle entrepreneur who performs activities so that they can improve their growth in the market. Along with this, they attract investors towards their services so that their overall profitability can be achieved. For example, another case study is based on Tom mercer who opens their business named as MOMA food. They established their businesses so that they can offer healthy and quality food to their customers.
The similarity between the social and lifestyle entrepreneur is that they both perform their operations for their customers so that they can fulfil their needs and demands. Along with this, they both perform activities so that they can improve their growth in the market.
They are contributing for the betterment of the UK economy. They generally have less employees and so the less revenue is generated, but these small and micro businesses are contributing much to the economy of UK which helps the economy and country to rise in a good proportion and giving this business a good chance to grow and maintain their worth in the market.
Currently UK economy is favourable for the start-ups or small or micro businesses. The case studies discussed in this study that is EG solutions PLC by Elizabeth Gooch and MOMA foods by Tom Mercer are the type of small or micro businesses that have impact on economy of UK. UK economy helps in improving the turnover of the small and micro businesses , that is obviously a good sign for such businesses. It helps them to grow in the existing and new market. Small and micro businesses also have impact regarding employment, although small and micro businesses don't employee much employees in their organisation but they employ 24.3 million people in the UK, which is an account of 60% of private sector employment.
These businesses allow active firms to grow above unproductive ones. Small and micro businesses have played an important role in taking the UK out of recession that gives a strong impact on the UK economy. In UK manufacturing, retail and repair of motor vehicle are the largest industries and these small and micro businesses are important part of these economic activities. 46 % of the small businesses revenue comes from these sectors. Small and micro firms have beneficial and good impact on the overall economy of the country. UK's current economy is the facilitator of the small and micro businesses.
They are playing an important in the well being of the country. Because of such businesses or small businesses the economy of the UK is developing day by day which is beneficial for the country as well as for the employment activities in the country that helps in decreasing the unemployment ratio and contributing to its growth. The cited companies are also helping in increasing the current economy of UK.
The start-ups can be defined as the entrepreneurial business which is new in the market and is growing rapidly which aims to meet the needs of the customer in the market and provides a new and innovative product in the market. It can also be defined as the company that has just begin to develop itself in the market. They are basically small financed and are operated by innovative founders or a single individual. They are in the first stage of their operations. On the other hand, small business are the types of businesses that are small in size, they have fewer employees and turnover. The capital invested in these businesses are less and they generate less amount of revenue. Start-ups and small business are growing rapidly in the UK and impacting its economy. Raise in the productivity of the economy depends on the support of the growth of start-ups and small businesses.
Start-ups and small businesses are creating more and more jobs for people every week. These small businesses and start-ups are recovering economy of the country day by day. These businesses have contributed more in the GDP, and that is more because of small manufacturers. These small firms hold the key growth in the UK. Although small businesses and start-ups find it difficult to have overseas customers, these businesses are frustrated in attem0pts to find overseas customers, that is becoming the barrier in international growth. These businesses and start-ups are the top job providers, they created many new jobs in communities. Their roles are sometimes underestimated as they are small but they play a big part in the growth of the economy.
- They provide job opportunities to both young and experienced.
- They improved the economy with revolutionary technology.
- They helped the economy to come out of recession, and this makes them important for the economic strength of the UK.
- When these start-ups or small businesses grow up they not only help owners to make money but also helps the employees and shareholders to make money and grow.
Determine the characteristic traits and skills of entrepreneurs and how they are differentiated from those of business managers
Every entrepreneur established their business so that they can fulfil the needs and demands of their customers. They perform their operations in an efficient manner and how they perceived the things are based on their skills and traits. Through these core competencies, an entrepreneur can lead their organisation towards success so that they can achieve competitiveness (Blackburn, Hart and Wainwright, 2013). As per the give cases, there are two entrepreneurs one is Elizabeth Gooch and another one is Tom mercer. They both perform their activities so that they can accomplish their objectives in an efficient manner. On the basis of their traits and characteristics, they will be able to accomplish their targets. Somehow these traits can differentiate an entrepreneur from the business manager. There are some of the core competencies of Elizabeth and Tom:
- Vision: Entrepreneurs are visionary who can sense the future so make strategies so that future results can be achieved. As per the case study, both business owners set their vision so that they can fulfil the demands of their customers.
- Optimism: Optimistic kind of person is future-oriented who perform their activities so that they can get future outcomes. Through this type of characteristic they can make themselves unique from others so that competitiveness can be achieved.
- Judgemental about success: Elizabeth and Tom both are judgemental as they can judge their own success in an efficient manner (Shane, 2012). In this, they can monitor their performance in a continuous basis so that they will be able to know about their strength and weaknesses.
- Focus: Through this kind of skill, a business owner will be able to achieve their goals and objectives. As per the case study, Elizabeth is very much focused towards her goals so that success can be achieved in an efficient manner.
- Transparency: In order to achieve success in the market, an entrepreneur has to be communicate with their workforce so that their satisfaction level can be improved.
- Risk-takers: Entrepreneurs are the one who take risk in order to get success in the market. They take risks so that high profits can be achieved and market share can be increased.
- Creative: Entrepreneur are more creative and innovative as they offer more quality and innovative products to their customers (Storey, 2016).
Business manager and entrepreneurs are different as they both perform their activities in an efficient manner so that success can be achieved. Some of these differences are:
- Elizabeth and Tom mercer are the one who establish their own business so that they can fulfil the needs and demands of their customers (Luiz, 2011). On the other hand, managers are the one who manage all the activities of an enterprise that is performed by the employees.
- An entrepreneur is the owner of their own organisation and manager is an employee of the firm.
- Managers get rewards from their boss and their high authority in the form of monetary and non monetary. On the other hand, entrepreneur got rewards in the form of high profits.
- Elizabeth and Tom mercer both are people oriented who focuses on their employees and customers so that they will be able to fulfil their demands and needs. On the other hand, managers are the task oriented who perform their operations so that overall business goals can be achieved.
- These both entrepreneurs are risk taker who took some financial risk so that overall profits can be increased. On the other hand, manager are risk averse.
Assessment of the personality of Elizabeth Gooch and Tom Mercer that reflect their mindset and motivates their ventures
The personality of the entrepreneur that is of Elizabeth Gooch, CEO of EG Solutions PLC, motivates her venture to grow successfully. She was very young when she started it, and her energy helps her venture to grow day by day. She adapted techniques of production management that is being used in the manufacturing and applied it to the world of business as she is very innovative and creative. She is an inspiration for everyone and is very dedicated and focused personality , she invests more and more hours in the business and helps it to grow. The increase in the cash enable her to invest more in resources and in recruiting more expertise, due to this greater capability of business has been developed which leads to the strong management team. She is a firm believer and have good leadership skills. She applied democratic and coaching style in appropriate manner to develop people and venture (Karlan and Valdivia, 2011). She expects hard work and high standards but always care for her team as she is of concerned nature. This thing helps her to develop her venture and provides growth to it.
The personality of Tom Mercer, founder of MOMA foods , motivates his business to grow successfully. Tom have a passionate personality and was always passionate about running something of his own. He is a huge believer and believed in the power of breakfast. He believed that there are lots of option for lunch and dinner but very few for breakfast that people can pick up on their way of work. He is a keen innovator and had developed something that is different from all. His optimistic personality motivated him to grow day by day in the market even at the time of recession. He always see positive things and because of that he is a successful entrepreneur and growing with full speed (Carland and Carland, 2015). He invest new ideas into his business that attracted many customers and helped him to make MOMA leading brand. His skills helped him to expand his business day by day which makes him an successful entrepreneur. He is of dedicated personality and is always serious towards his work. He always wanted to do something different and creative which should be appreciated by the customers, he understands the needs of the customer and developed a product accordingly with full flexibility.
How personal background and experience can hinder or foster entrepreneurship
Entrepreneurs are the one who perform their operations in an efficient manner so that they will be able to enhance their growth in the market. For this, self motivation among all owners should be their so that they can motivate their other employees. Along with this, an entrepreneur should have an experience and knowledge in the particular field so that they will be able to accomplish their targets in a given time interval. Personal background and experience of an entrepreneur affect their business operations and they will not be able to achieve success in the market. It is depend upon the person that how they take the things and in what manner they perform their operations (Olusegun, 2012). Through the positive thinking, they can maintain their growth and generate high revenues so that their overall performance can be improved.
According to the case study, Elizabeth Gooch is an entrepreneur who is the CEO of EG solutions. Before this, she started work into HSBC bank than she work into the consultancy firm so that she can start her own business. After this, she started her own business by taking the fund from their family members and friends. She has a goods background in education field so she perform well and establish her own business. On the other hand, Tom mercer is the one who open their own business so that they can offer quality and healthy services to their customers. He has some interest in the food so he opened their own shop (Barringer, 2012).
Skills and core competencies play an important role in the success of the organisation.
On the basis of this, they can lead their firm towards success. Through this they will be able to motivate their employees and workers so that their performance can be improved. An individualbye mam can learn many things from their past experiences and knowledge so on the basis of that they can make strategies in order to accomplish their pre specified targets. Through these effective strategies, manager will be able to fulfil the needs and demands of their customers in an efficient manner.
From the above carried out analysis it can be concluded that an entrepreneur establish their own business so that they can fulfil the needs of their customers. Every person established their business on the basis of the vision and mission. They are the high risk takers who take financial risk in order to achieve success in the market. There is a difference between the manager and business owners as they both have to perform their operations so that overall growth of the firm can be improved. Further, there are some barriers that can affect their entrepreneurship in an efficient manner.
Books and Journal
- Schaper, M.T. And et. al., 2014. Entrepreneurship and small business.
- Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
- Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of Small Business Management. 49(1). pp.92-106.
- Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria, a values approach to personal differences. Journal of Small Business Management. 49(2). pp.207-232.
- Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
- Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-453.