Entrepreneurship Literature Review

This assignment requires a comprehensive review of the literature on entrepreneurship. It encompasses various aspects such as the role of entrepreneurship education, its impact on economic development, theoretical frameworks explaining entrepreneurial behavior, and contemporary trends in entrepreneurship research.

ENTREPRENEURSHIP
AND SMALL BUSINESSES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures..........................................................................3
P2 Similarities and differences between different entrepreneurial ventures. .............................4
TASK 2............................................................................................................................................6
P3 Impact of micro and small businesses on the economy........................................................6
P4 Contribution of important small businesses and business start-ups in growth of social
economy......................................................................................................................................7
TASK 3............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs that differentiate them from
other business managers..............................................................................................................8
P6 Reflection of motivation and mind-set of the aspects of entrepreneurship personality......10
TASK 4..........................................................................................................................................10
P7 How background and experience can hider or foster entrepreneurship. .............................10
CONCLUSIONS............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship and small businesses both are the most crucial segments for the
development of a nation. There exist various benefits that are brought with them, either they be
financial, social, etc. Further, there are different types of entrepreneurial ventures that work for
varied purposes and scales (Akulukjuk, and et.al, 2016). The present report covers the
understanding of these entrepreneurial ventures along with their similarities and differences. In
addition to this, the impact of these organizations on the economy of the country is also
analyzed. Further, its’ contribution in the social conditions is also assessed. This assignment
moreover covers the required personality characteristics and traits of the entrepreneurs. In this
undertaking roles played by the educational background and early life in becoming a successful
entrepreneur are also discussed. Moreover, reflection of motivation and mind-set on a
entrepreneur is also explained in the present piece of work. This assessment of analysis the roles
of background, the personality selected is Mark Zuckerberg. Along with this, the report covers
the information on the small businesses after Brexit.
TASK 1
P1 Different types of entrepreneurial ventures.
Entrepreneurial ventures are designed and launched as new business. Most of these
businesses are the small business. The people who undergo this process of designing, launching
and execution are known as entrepreneurs (Burgers, and Covin,2016). These persons can work in
varied sectors. There are different entrepreneurial ventures on the basis of their purposes and
sizes. Out of all these ventures, some major are as follows:
 Small Business Entrepreneurship: In the present era, the maximum number of
entrepreneurs is emerged in small medium ventures. Small businesses entrepreneurial
companies’ hires local people or family members. These entities have low funds and
thus, their investment in the business plans are less. In addition to this, people and
organizational size is small. Some common examples of small business entrepreneurial
ventures includes the grocery stores, small shops, travel agents, and low budget local
businesses.

 Scalable Startup Entrepreneurship: These type of entrepreneurial ventures starts with
a vision that their innovative ideas will change the world. These companies have
investors for the financial support. There are various large size and multinational
companies who hires scalable startup entrepreneurs to bring innovations in their
operations.
 Large business Entrepreneurship: These ventures have finite life cycles and the
rationale behind their growth is the sustaining innovative ideas brought by them. In
addition to this, large scale entrepreneurship ventures aims on product development by
offering customers the recent things. They are comparatively larger in size as compared
to the rest ventures and they aims on earning maximum profit. These ventures also ficus
on the development of competitive advantages so that they can attract a large segment of
customers (Castello, Barbera, and Vaara, E2016)
 Social Entrepreneurship: These are those ventures in which different entrepreneurs
aims on bringing innovative ideas of development for social needs and causes. They
focus on the creation of valuable services and products that brings changes in the society.
Size of social entrepreneurships depends on the number of people sharing same interest
and beliefs. These ventures run for either, profit, non-profit or hybrids.
Hence, these are the common entrepreneurial ventures that are operating the country with
heir varied purposes, size and scope. However, there is one thing in the common about them all
and that is, all of them plays a major role in the development of the country either be it in the
form of finances or social welfare. The benefits renders by the entrepreneurial organizations to
the country is highly appreciable and should consistent to grow for achieving the desired
economical growth (Nabi, and et. al, 2017).
P2 Similarities and differences between different entrepreneurial ventures.
Similarities between different types of entrepreneurial ventures
 Small scale and Large scale entrepreneurial ventures: Both these type of organizations
works on the same principle of earning maximum profit by applying minimum input.
They further aims on attracting a large customer base so that they can increase the
business value. Apart from this, both ventures contributes in the development of the GDP

growth of the country and increases employment rates. In addition to this, both small and
large scale ventures concentrates on the ways in which they can develop their businesses
with the help o product development, market development or diversification (Storey,
2016).
 Scalable and social entrepreneurial ventures: Both these type of entrepreneurial ventures
starts with an idea of developing innovating things that can assist in satisfaction of the
consumers. The innovative thoughts of scalable and social startups are implemented by
the investors. In addition to this, these innovations can be bought y the large sized or
multinational companies.
 Large size and social entrepreneurial ventures: The size of both these type of
entrepreneurial ventures can be large. In addition to this, such ventures require more
amount of initial investment as compared to the rest of the others (Taylor, Casey, and
Oviatt, 2016).
Differences between different types of entrepreneurial ventures:
 Large size and small size entrepreneurial ventures: The major difference between these
ventures is that both have different sizes. In addition to this, the operating income,
revenue collected, contribution to GDP, investments, etc. are higher in large size
entrepreneurial ventures as compared to the small business enterprises. In addition to this,
the number of people employed in the large sized companies is more. However, it should
be recognized as the figure of small scale entrepreneurial ventures is more and thus,
overall people employed in the business is more in the same. Similarly, the overall
contribution in the gross domestic product of the country is more by the small scale
businesses (Oosterbeek, and et. al, 2010).
 Scalable and social entrepreneurial ventures: In context to both these ventures, the
purposes are different from each other. The scalable ventures run their businesses for
comparatively short span of time. In addition to this, they jump from businesses after
attainment of the settled goal. On the other hand, social entrepreneurial ventures works
until their social cause is fulfilled.

TASK 2
P3 Impact of micro and small businesses on the economy.
Micro and small size enterprises play a major role in the development of a nation. The
number of micro, small and small-medium organizations in the country is high and thus, the
impact put by them on the other factors of the nation are considerable. These ventures have
influence on the financial growth, economical development, social growth, employment, etc.
Hence, administrative bodies should not neglect them at all. The roles and functions played by
the small businesses’ entrepreneur is major in the nation development and its economy. It has
been observed by the reports that out of all the organizations that exist in the market places,
small and medium sized firms cover more than 50%. This data states that the large contribution
in gross domestic product of UK is due to the small businesses. Thus, these ventures are regarded
as the backbone of the economical growth of the country (Schaper, and et. al, 2014). This factor
further has various other benefits associated with it. As per the data of the Confederation of
British Industry (CBI) around 97.9% businesses that belong to private sector are SME. At
present, there are around 4.9 million businesses that are operating in the country after Brexit. In
addition to this, 60 percent of the total jobs in the markets are due to these companies, it states
that the economy is also developed through employment.
There exist a large size of people that are engaged in the businesses of the small medium
enterprises either they be the raw material providers, unskilled labors, skilled labors, etc. This
large engagement in the functions and operations of around 4.9 million businesses is providing
wages to them all. The finances then earned by them helps in increasing their standard of living
which later benefits the national economy of the country. However, it should be recognize that
after the exit from EU due to Brexit the laws of the businesses have changed and this had
negative impacts on the effectiveness of the economy of the country Storey, D. J. ed., 2016. All
these organizations were forced to change their implemented policies and other structure that has
affected the overall work effectiveness of the company operations. Later, this was reflected on
the GDP of the nation. It should be further noted that now that when the situations have again
started to be stable and firm policies are prepared, a growth is observing in the sector. Further,
the advantage of these entities is up to the international economy. It has been found that there
exist 17,700 firms that have direct impact on the economy and these companies are attracting

people from other countries for the employment. The investors, customers and business is also
developing in the foreign nations which is further helping UK in raising the international
economy. Thus, it can be concluded that small businesses and start ups plays an important role in
the economical growth of a country (Welter, 2011).
P4 Contribution of important small businesses and business start-ups in growth of social
economy.
There are various things that are contributed in the growth of the social economy. Out of
them, the major ones are the innovation, employment, regional and local economy rise and
adaptability. It has been observed that the regional and local markets of the UK are most
benefited with the start up ideas brought by the small business organizations. These companies
hire local people in the operations and functions. This helps in increasing the employment which
further raises the social economy. Basically, the major areas that are assisted by the small
businesses and start-ups are as follows:
Reduction of poverty: There exist a large number of small businesses and start-ups which will
help in providing employable and development chances to the local people. This factor of job
creation plays a significant role in the poverty alleviation, economic growth and improved level
of loving standard. In addition to this, these businesses bring various other field with them to
work. In these sectors, there is requirement of both skilled and unskilled labors which will help
in improving the financial conditions of all groups of people (Bruton, and et.al, 2010).
Generating Revenue: The revenue will be increase when the investors will put their capital in
the development of the small businesses. It is majorly regarded as the profit it brought in the
growth and development of a region. As there are large number of small businesses and start ups,
hence it is very crucial to promote them to achieve the maximum profit.
Economic and social development: The ole played by small businesses and start ups in the
social development is crucial. There are around 25 million Small businesses in the UK that helps
in generating around 49 percent of the total sales of the country. This selling is directly
proportional to the growth of the country ad its people. It helps in maintaining various
economical requirements such as liquidity, cash flow, good GDP, etc. In addition to this, these
entities plays a major role in the effective functioning of the administrative task by rendering

them required budgets for the development in the form of tax. In addition to this, the increased
rates of the employment and her factors such as living standard, revenue etc. will directly
contribute in the financial development. It has been observed that the regional people are hired
by the small businesses, thus, social economy will be raised by this (Dacin, and et. al, 2011).
Thus, there are the major advantages that will be brought by the small businesses and
start ups to the social economy betterment.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs that differentiate them from other
business managers.
The scope and functioning of an entrepreneur is way bigger that the measuring the total
numbers of business in which e/she has applied the innovative idea. It is rather based on the
effectiveness of the outcomes that are obtained by the implementation of the idea. In this order,
there exist some personality characteristics and traits that helps in an entrepreneur to become
successful. For better understanding of these traits, an example of a successful entrepreneur,
Mark Zuckerberg is presented. The common personality characteristics and traits are as follows:
 Vision: In order to become a successful entrepreneur it is necessary to have a clear
visions. This acts a guideline in achieving the desired goals and objectives. Further, this
helps in moving in the appropriate direction. There are some requirements of the visions
such as it should be realistic and achievable. The selected character has settled his visions
of entrepreneurship in the early school days only and then work hard in that direction
(George and Bock, 2011).
 Technical knowledge in the relevant sector: In order to become a successful
entrepreneur it is needed to posses the competencies of the technical knowledge. It is the
backbone of all the other operations that will have to perform as an entrepreneur. In
context to the Mark Zuckerberg, he had started developing the skills in the early age and
at the time of high school, a reliable knowledge of programming was observed in him.
 Planning: It is regarded as the most crucial segment required in becoming a successful
entrepreneur. Effective planning is required for each and every task that are to be

performed in the business. For this, a certain set of skills and abilities is required to plan
the goal. It is the blueprint of all the operations and function that entities are to perform.
The need of resources, budgeting of them, etc. are all done under the planning.
 Risk taking ability: Changes plays a major role in the development of a business.
However, it should be recognize that the implementation of these changes requires the
ability of taking risks. Entrepreneurs are demanded to posses this skill as it helps them in
execution the new and innovative business operations that ensures success (Kelley, and
et. al, 2012)
 Time-management: In order to achieve the desired vision on time, it is required to
manage the time effectively. Further, the planning should include the time limit of each
and every operation so that effectiveness can be maintained. The more consumption of
time will consume more resources, budget etc. which will harm the productivity.
 Management of money: Any kind of business is highly concerned about the expenses. It
should be recognize that this element directly impacts on the economical value of
business and hence, entrepreneurs are required to have an ability to mange and invest
money wisely. They should invest capital in the productive activities only. Expenses
made on the unnecessary factors will harm the business effectiveness.
 Confidence and self-belief: To keep confidence in self, is a key trait that an entrepreneur
should have. It helps in moving them in the decided direction without getting distracted
by the other factors (Castello, Barbera, and Vaara, 2016).
 Communication skills: An entrepreneur is supposed to have effective communication
and presentation skills to put his/her ides in front of others. The most crucial factor that
makes an entrepreneur successful is the effectiveness of the innovative thoughts that are
presented to the businesses. In addition to this, he/she should also be able to express them
in front of the investors and managers with clarity, otherwise they will fail to implement
the ideas.
 Relationship building: The role of an entrepreneur demands ability to create effective
relations with the businesses, investors e, etc. It is required to increase the networking so
that they can implement their ideas on a larger base.

P6 Reflection of motivation and mind-set of the aspects of entrepreneurship personality.
Motivation and mind-set of a person are those factors that highly impacts on becoming an
effective entrepreneur. These elements are further relies on some other things such as family
upbringing, culture, self-determination, lifestyle, etc. Impact of these entrepreneurship
personality on the motivation and mind-set are as follows:
Family Upbringing: The first place from where a person achieve the basic skills is the family.
The moral values, firm determination, confidence, etc. re all somewhere depends on the
environment of the family. In case if there will be unstable family conditions, then the mental
and emotional well being of the person will be affected which later will be reflect on the
motivation and mindset of that person.
Personal Motivation: This aspect of the personality plays a major role in motivating and
maintaining the mental stability of a person. In order to become a successful entrepreneurs it is
demanded from a person to have firm determination level that can match the requirements of
motivation for achieving the settled goals and objectives (Castello, Barbera, and Vaara, 2016).
In addition to this, culture and lifestyle of a person also plays considerable role in
developing the motivation level and a firm mindset to achieve the goal of becoming a successful
entrepreneur.
TASK 4
P7 How background and experience can hider or foster entrepreneurship.
Background and past experience are the two major factors that helps in either hindering or
fostering the entrepreneurship. There are different life span stages of a person’s life that either
help them in growing them in the desired sector or distract them by any force. Basically, there
are three major factors of background and experience that can hinder or foster the
entrepreneurship. They are as follows:
 Educational background: This is regarded as the most significant element in the
development of an entrepreneur. It is highly required to possess and effective set of skills,
knowledge and abilities in the relevant sector. This is necessary to perform the basic
required functions (Burgers, and Covin,2016).

 Family background: In order to become successful entrepreneurs it is fruitful to have a
family that supports the decisions taken by the responsive person. The force exerted by
the families or friends can made or fade the motivation and mind-set which will later
impact on the way of becoming an entrepreneur.
 Related previous experiences: There exist so many past experiences that impacts on the
present day’s activities. For instance: a person that has performed any internship or other
in the relevant sector then this knowledge and experience will help in simplifying in the
making of a successful entrepreneur.
 Economical Conditions: In order to access the basic requirements of becoming an
entrepreneur it needs some finances. This cost is associated with the effective training,
education, etc. In case, if there will be scarcity of the needed resources then it will hinder
entrepreneurship (Akulukjuk, and et.al, 2016).
 Other factors: There are also some other factors related to the past experience or early
life background that impacts on the process of becoming an entrepreneur. These
experiences can be both, positive or negative for the person and his/her growth.
For understanding the roles of background and experience, the entrepreneur selected is
Mark Zuckerberg, founder and CEO of Facebook. The revolutionary social media tool developed
by the Mark has left everyone amazed. It has been observed that the background and experiences
of the chosen character has rendered assistance in simplifying the process of become a successful
entrepreneur. In context to the educational background, it has been found that the Facebook
owner has started gaining the programming language at the age of 10 only. The basics of C were
taught to him by a private tutor hired by his father. This reflects the supporting nature of his
family towards achieving his goals of become a programmer. At the high school only, Mark
Zuckerberg has become a pro in the programming. In context to the culture of the country, USA
has always promoted the digital advancements. In addition to this, the environment of the
country do supports the programming and thus, it helped Mark in stuck to the settled goal.
Further, the economical addition of the selected characters were also in support with his
development as an entrepreneur (Storey, 2016). He belonged to a high-middle class family and
thus, he never faced any obstacle in grabbing the educational opportunities. It should be further

noted that, Mark Zuckerberg has created FriendsBook in his high school days which reflects his
skills in the relevant sector. This app allows to view the pictures and other info of the students.
However, after the complaints against this app due to harm to confidentiality of the students it
was restricted to use. It was the only hindrance that has been faced by the chosen characters, rest
all the factors has fostered Mark Zuckerberg in becoming a successful entrepreneur.
CONCLUSIONS
From the present report, it can be concluded that in order to start a new business effective
entrepreneurs are required that possess a certain set of skills and abilities. There exist different
type of entrepreneurial ventures which demands for different skills depending upon their
business needs and organizational goals. However, there are some common personalty
characteristic and traits that helps an entrepreneur in accomplishing the assigned task effectively.
This report, all those competencies. In addition to this, different types of entrepreneurial ventures
are also explained in this undertaking. Along with this, the impact of small businesses and
startups on the economical and social growth of a country is also assesses in this assignment.

REFERENCES
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