ENTREPRENEUR AND SMALL BUSINESS VENTURE
Introduction
The current report assesses the discussion of small business ventures and entrepreneurial factors. The report began with a conceptual idea about Small-Medium Entrepreneurship for better execution of the discussion. It emphasises governmental initiatives regarding the requirements of SMEs, especially in the startup phase of a business. At the same time, the report also evaluates the business ideas on the issue of market research, team presentation and resource management so that a better understanding can be executed throughout the discussion. In addition, the report also included self-evaluation and critical; reflection on the personal development of entrepreneurs associated with a startup business.
Understanding of theories surrounding SME development and its relevance with the wider environment of business and economic development
The incontestable truth of global industry is associated with the effective involvement of SMEs. In this context, small and medium-sized businesses require a place that it could align with the dynamic change of local and global markets and support the changing ecosystem. It can then play a sustainable contribution to the economical growth of its home country as well as to the global economy. In the context of a detailed discussion of the role and responsibility of SMEs towards the business economy and business environment, explanations of some relevant theories are essential for the acquisition of emerging disciplines and sustainable growth of SMEs. The assessment of Institutional theory executes a capable path by which the border between society and the business environment has been drafted for the sustainable growth of SMEs in several ways. The knowledge gained from this theory asserts that sustainable pursuits of SMEs are not a voluntary act primarily as the performance of SMEs is associated with variable challenges like market pressures and rules and regulations of the government.
Institutional theory
However, the theory sheds light on the external and internal factors that play an important role in the sustainable growth and innovation of SMEs’s growth. It emphasises that the growth of SMEs is associated with opportunities with effectiveness, normative and mimetic divers. These are the factors influencing SMEs to shape their decision -making process on social, economical and environmental decisions. Moreover, the theoretical knowledge asserts that institutional constraints are accounted for by the entrepreneurs of SMEs. On the other hand, SMEs appreciate the implication of technology as it is the major drive for the sustainable growth of SMEs by which it can play a major contribution to the sustainable growth of business and economic development (Dabić et al., 2018). On the other hand, theoretical knowledge focuses on competitive pressures that SMEs require to consider in their practices strategically so that they can enhance their growth and contribute to social and economical growth. In addition, the knowledge gained from theory defines that multiple factors such as legal, social, cultural, traditional and environmental values need to implement in the managerial practices that can help them to approach a sustainable growth capacity to operate its business and it can also play a greater role in the development business and economy of the nation from hey operate their business.
Resource-based view theory
The assertion of this theory focuses on the initiatives of SMEs by which they can gain uniqueness in the business. However, the uniqueness of business is considered a major drive to grab the market opportunity competitive advantage for SMEs,s. The theory asserts that managerial viewpoints on resource management are the major fact that needs to be considered by the management to enhance sustainable growth regarding the overall business and economic growth (Dabić et al., 2020). The theoretical knowledge of the theory suggests that the entrepreneurs of SMEs are required to approach strategic objectives and focus on the effective growth strategy in the business. Similarly, it also asserts that the owner of the SME’s required to regulate its change agents aligned with their growth difficulties.
Government initiatives concerning the requirement of the SMEs startup phases
The government initiatives regarding the implication of SME development are important in terms to mitigate the requirement of SME business. In this context, the government of the UK’s role is also remarkable and considerable. The government has approached several schemes and plans to fulfil and uplift the SME business. It aims to increase the contribution of SMEs in the country so that it could help them to conduct a sustainable economy for the nation. The government takes an important intuitive approach to access more finance for the sustainable growth of the business. They have encouraged all startup businesses by suggesting proper financial schemes and advice. However, about 25% of startup businesses in the UK are privileged by the financial schemes and appropriate financial decisions referred to by the UK government (Metawa et al., 2021).
However, this scheme is a private sector investment for startups to bridge the gap in their business. In addition, the significance of the ” National Loan Guarantee Scheme” can not be denied in the context of business growth of SMEs or to mitigate the initial phase of Startup businesses. Furthermore, the scheme allows the banks of the UK to raise their funding up to £20bn which will be guaranteed by the UK government. The scheme also suggested lending funds to start-up businesses with a lower rate of interest. In this context, the startup business that turnover its businesses by £50m can apply for this loan. When a startup businesses approach lending its business in the market, these financial constraints become a bigger challenge (Singh, 2021). At the same time, lack of business experience also makes the path hurdle in the stage of a startup business. In this context, the above scheme directly and positively impacts the business environment of SMEs. Apart from this, the” Business Finance Partnership” is also regarded as a remarkable scheme of the UK government by which a £1bn loan can be initially invested in the startup businesses. However, the government is attentive to diversifying the financial channels for its startup businesses so that they can enhance sustainable growth for them. In addition, the government also opened some other non-banking channels through which finance can be obtained.
The resources required for new business opportunities to implement a new startup venture in the UK
The business ideas of SMEs require to grab the market opportunity effectively so that it could help them to sustain their growth. In this context, SMEs are required to align with their ability to interact with the worldwide economy through trade and investment. At the same time, SMEs need to improve their strategic goals and need to manage the government finances to implement their startup ventures in the UK. Similarly, the managerial authorities of the SMEs are required to place their institutional environment in such a way that contracts can be established to gain property rights for the business. Multiple resources need to be implemented by the SME business to deal with the issues of market research, team management and resource management (Audretsch et al., 2021). As per the above discussion, it has been found that the government has approached multiple financial schemes to enhance sustainable growth. The entrepreneurs of start-up businesses require to be attentive and aware of those schemes and the selection of the right financial scheme that they can manage. Funding resource is considered the most relevant resource that needs to be implemented in the business idea of SMEs. in this context, the SMEs are required to register their business name, need to design business cards and telephone connections for their organisation after resourcing the right fund for the organisation in the form of personal loans, and financial institutions from both public and private finance sources. In this context, they can take the help of private investors and governmental free financial advice.
At the same time, human resources also need to be included in the business idea of the startup business to account for the requirement of team management and the performance of the organisation (Dee et al.,2019). In this context, the entrepreneur of the start-up business needs to implement an excellent recruitment plan to hire skilled and experienced employees. To idealise this into the plan they can take the help of staffing agencies and can use the job portals by which they can enforce an effective team for their start-up business and can ensure sustainable productivity. On the other hand, the entrepreneur of the SMEs requires to increase their involvement in market research and to get detailed knowledge about their competitors that could help them to enhance strategic ways to build their business policy in the UK market.
Self-evaluation and critical reflection on their personal development through team activities and experiences
I would like to start my small retail business in the UK market. I need to be attentive and careful to enhance my business plan in such a way that it can align with the market trends and can approach a uniqueness in my business. In this context, I will consider the principle of ” Diffusion of Innovation theory” by which I can pay attention to the technological requirements and innovation diffusion of SMEs that help me to enhance the differential in the business and I can ensure business success (Min et al., 2019). However, the theory refers to technological adoption and not technical innovation for the implication of business growth which contributes to the development of business and economic development. At the same time, it also asserts that a higher innovation rate of SMEs helps to lead to a more competitive advantage than the SME which leads to less technical innovation. I can use this knowledge in my business plan and can approach the acquisition of financial skills and how to manage financial sources to sustain development for my business. In this context, the theoretical knowledge enlightened me about the innovation capabilities such as the strategic model of relevant business, strategic orientation and organisational culture that I can enhance sustainable growth for the entire business elements. I can include suppliers, customers, stakeholders and governing factors in my business policy by which I can manage the external business environment for my start-up business. Thus, it can play a better role in contributing to social-economic growth (Cirus and Simonova, 2020).
Furthermore, I can approach the right financial decision and will approach the right financial selection for my start-up business. In this context, I can go through with the government with several initiatives and free guidelines to startups so that I can enhance a strategic business plan and secure a sustainable business for my start-up business. In this context, EFG” (Enterprise Finance Guarantee) is considered an effective government initiative that encourages me to include my startup businesses in the country so I can secure sustainable growth of my business. At the same time, I can be significantly privileged by this government loan as through this financial scheme I can be guaranteed 75% of individual loans. However, the annual turnover of the loan is up to £41m. The accredited lenders are responsible to lead this loan and I need to be repaid within 3 months to ten years. Similarly, another financial plan ” Enterprise Capital Funds” is also considered a governmental initiative that helps startups to mitigate the issue of financial scarcity and ensure a higher potentiality of their business growth. I can grab it. Apart from this some physical resources such as proper space of work, an adequate system of information, an official telephone line and marketing materials are required to be considered in my business policy so that I can set up business in the UK.
Conclusion
It is concluded that SMEs or startup entrepreneurs in the UK have the great market opportunity and governmental support to enhance a sustainable business in the country. The government of the UK has approached multiple financial schemes and offered financial advice to SMEs businesses that SMEs can be privileged. Apart from this, UK-based entrepreneurs of start-up businesses also pay attention to account HR resources, managerial education, emotional resource and physical resources in their business ideas so that they can sustain growth in their business and contribute to the socio-economic growth of the nation.
References
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Cirus, L. and Simonova, I., 2020, August. Rogers’ Diffusion of Innovation Theory Applied on Primary Education: Case Study of Czech Teachers. In 2020 International Symposium on Educational Technology (ISET) (pp. 33-37). IEEE.
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Dabić, M., Maley, J., Dana, L.P., Novak, I., Pellegrini, M.M. and Caputo, A., 2020. Pathways of SME internationalization: A bibliometric and systematic review. Small Business Economics, 55(3), pp.705-725.
Dee, N., Gill, D., Lacher, R., Livesey, F. and Minshall, T., 2019. A review of research on the role and effectiveness of business incubation for high-growth start-ups.
Isichei, E.E., Agbaeze, K.E. and Odiba, M.O., 2020. Entrepreneurial orientation and performance in SMEs: The mediating role of structural infrastructure capability. International Journal of Emerging Markets.
Metawa, N., Elhoseny, M. and Mutawea, M., 2021. The role of information systems for digital transformation in the private sector: a review of Egyptian SMEs. African Journal of Economic and Management Studies.
Min, S., So, K.K.F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application: Insights from diffusion of innovation theory and technology acceptance model. Journal of Travel & Tourism Marketing, 36(7), pp.770-783.
Singh, V.K., 2021. Policy and regulatory changes for a successful startup revolution: Experiences from the startup action plan in India. In Investment in Startups and Small Business Financing (pp. 33-67).
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