Entrepreneurship vs. Small Business Management

This assignment delves into the fundamental distinctions between entrepreneurship and small business management. It examines the unique traits of both concepts, referencing scholarly sources such as Karlan & Valdivia (2011), Lee-Ross & Lashley (2010), and Shane (2012). The assignment highlights the diverse aspects that shape entrepreneurial ventures and small businesses, drawing insights from research on business training, personality traits, environmental engagement, and more. It aims to provide a clear understanding of these distinct fields within the realm of business.

Entrepreneurship and
Small Business
Management

TABLE OF CONTENTS
introduction......................................................................................................................................3
PART 1............................................................................................................................................3
P1) Entrepreneurial ventures and their relation to the typology of entrepreneurship..................3
P2) Similarities and differences ..................................................................................................4
P3) Impact micro and small business have on economy.............................................................6
P4) Small businesses and start-ups with growth on social economy...........................................7
Part 2................................................................................................................................................8
P5) Successful entrepreneur and their personality traits..............................................................8
P6) Aspects of entrepreneurial personality reflecting entrepreneurial motivation and mindset..9
P7) Background and past experiences as a contributing or hindering factor in entrepreneurship
....................................................................................................................................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship is a process in which a new idea or thought is transformed into a
venture with regards to all sorts of financial, psychological and social risks involved in the same.
An individual gains freedom to avail all the monetary benefits, personal satisfaction and rewards
if the planned business becomes successful (Blackburn, Hart and Wainwright, 2013). In this
report, the different types of entrepreneurial ventures have been depicted in detail. Furthermore,
the personality factors of two world leaders i.e. Mark Zuckerberg and Bill Gates have been
described in this assessment to provide more knowledge about basic contributory skills to
successful entrepreneurship.
PART 1
P1) Entrepreneurial ventures and their relation to the typology of entrepreneurship
Entrepreneur is a person who put forward their ideas as businesses and lead the
organisation for enhancing growth and prosperity. This individual has the aspiration to utilise
every opportunity and resource for business development. On the basis of business,
entrepreneurship is classified as follows: Business entrepreneurs: Individuals that initiate their business after producing a new
product/service are considered as business entrepreneurs. Trading entrepreneurs: No manufacturing functions are involved in trading
entrepreneurship because direct buying and selling of goods is involved. Hence, the name
trading entrepreneurs. Corporate entrepreneurs: The leaders of corporate organisations that have individual
existence in terms of legal values are known as corporate entrepreneurs.
 Agricultural entrepreneurs: The ventures which involve raising of crops and fertilizers
with other agricultural activities is known as agricultural entrepreneurship.
However, entrepreneurship is also classified on the basis of stages of development as first
generation, second generation and classical entrepreneurs (Burns, 2010). Individuals who pursue
their entrepreneurial activity without any experience or background are first generations while
those who continue their inherited business are considered as second generation. On the other
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hand, classical entrepreneurs sustain the competition only to a particular limit. They do not put in
excessive efforts for enhancing business growth.
Motivation is a significant factor which stimulates entrepreneurial growth and activities.
On the basis of motivation levels there are two types of entrepreneurial ventures i.e. pure and
induced. The self-motivation and personal satisfaction factors are responsible for development of
pure entrepreneurship. However, induced ventures are a product of motivation from government
policies or any sort of incentive. The nature of entrepreneurial venture is totally dependent on the
factors which have been forcing or influencing individuals to take up their own business.
The different types of typology of entrepreneur are as follows.
Small business entrepreneurship – In this type of entrepreneurship the entrepreneur
hire the local employee or their family who gives them lots of profits (Carland, Carland and
Stewart, 2015). Their aim is not to build a business of above 100 million dollar they just want to
satisfy the basic needs of customers. These type of entrepreneur may be electricians, grocery
stores etc.
Large company entrepreneurship – In this large organisation offer the new and
innovative products to customers. If there is any change in customer taste, new legislations or
policies have been applied then it may create pressure on them to retain in market for a long
period of time.
Social entrepreneurship – These type of entrepreneurs are mainly focus on the to
provide the basic goods and services to society. There first aim is to to make better place in
world. Their aim is not to increase the market share or to create any wealth for the society.
P2) Similarities and differences
Difference between the small and large entrepreneurship are as follows
Basis of difference Large entrepreneurship Small entrepreneurship
Aim There main aim is to provide
earn huge amount of profits by
satisfying the needs of
customers (Raposo and Do
Paço, 2011).
There main aim is to satisfy
the different needs of
customers but to earn the
profits is less.
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Employees They hire the potential
employees to provide the
quality of services to
customers.
Normally in this they hire their
families or friends which also
reduce their costs.
Customer In this customers are few In this customers are very
large
Location This business are generally
located in rural as well as in
urban area.
This type of entrepreneurship
are generally located in urban
area.
Cost To set up new business
generally cost is very less.
In this there are large number
of customers as well as staff so
they incurred extra expenses or
cost to meet out with their
needs (Stokes, Wilson and
Wilson, 2010).
Similarities between the social and small entrepreneurship
Basis of difference Small entrepreneurship Social entrepreneurship
Purpose There main purpose is to
satisfy the needs of people by
providing different types of
products and services (Storey
and Greene, 2010).
There main purpose is to make
the world better place and to
satisfy the needs of society
people.
Priority They give the priority to their
customers first.
They also give the priority to
their society people.
Aim There aim is not to increase
the turnover of the company.
There aim is to as satisfy the
needs as well as to earn the
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profits also.
P3) Impact micro and small business have on economy
In an economy small business enterprise has played an significant role. For star up of new
business they provide the job opportunities through which they can satisfy the needs and
requirements of customers (Carraher and Paridon, 2015). There aim is not to earn large amount
of profits but they do efforts more to retain in market for a long period of time. The government
of UK has also support to small business enterprises because with out them it will not improve
the economic condition of country. As UK has largest economy and there are so many company
who provide so many opportunities to customers as well as to employees also. Small business
enterprises contribute in the growth of the economy. It also provide more opportunities to those
employees who does not have any job. With out running of small business organization the large
companies can not run there business successfully. They motivate the customers and employees
to make contribution in the development of the economy. The following are the impact of small
and micro business on the economy.
Reduce poverty line – Small business enterprise provides an opportunity to those people
who are leaving below the poverty line (Dennis Jr, 2011). Through this it will reduce the poverty
line and ultimately it will give positive impact on the economy.
Employment generation – It is the responsibility of UK to focus on small and medium
enterprise business so that they can provide better job opportunities to employees. The
government has to make those policies and regulations which will give the advantage to the
customers as well as organization also. They have to promote the these small business
organization to perform there functions more efficiently in the economy.
Develop personal relations – Small business enterprise has to make sturdy relationship
with the customers so that these organization can be retain for a long period of time in global
competitive market. To develop the business it is essential to develop the strong relation with
customers.
Job creator - Small business provide the job opportunities to employees in economy. It
make large contribution in the development of economy. Through this they can improve the life
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style of employees. While providing the job in different sector it will also improve the
productivity of products and services which are provided by the company.
P4) Small businesses and start-ups with growth on social economy
After Brexit, the government has to focus on the those areas in which they can make
large number of contribution (Fassin, Van Rossem and Buelens, 2011). As they have to mainly
focus on the small and start-up business so that they can make positive contribution in the
development of the economy. As small business organization does not generate large amount of
profits but they has contribute large amount of funds in the development of the economy. The
following are some importance in which the small business has make contribution in the growth
of the social economy.
Future growth – Small business organist does not remain always small. Small business
establish grow their business and convert them into the large organization but they remain same
for which they have established. Through this they can improve the growth of economy.
Job opportunities – Small business enterprises provides the job opportunities to local
people through this they can also improve their life styles (Gorgievski, Ascalon and Stephan,
2011). When UK has separate from European Union then this country has lost many job
opportunities which has been provided in many sectors. So the government has to support and
provide the funds to small business enterprises so that it will create the large opportunities for
local people.
Trade – After Brexit, the trade of goods and services are also decline so this the
responsibility of UK to support the small business enterprises to improve the growth of the
country. If UK has support to small business organization then it will be easy for large business
organization to sale the goods through out the country.
Adaptability of Changing climate – There are many small business organization who is
working in a flexible environment. This is due to because these business organization are very
customer oriented. These small business organization earns low profits as compare with large
organization so there is also not a loss of large amount.
Economic growth – Small business organization has being many changes in the growth
of the economy. As they had provide the employment job opportunities to those people who are
unable to work in large organization. These type of have this much capability to invent new
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products and services to customer and provide better solution for the existing ideas (Islam and et.
al., 2011). The large business organization are often benefits from the small business because
with the help them they produce a number of goods and services to satisfy the needs of
customers.
PART 2
P5) Successful entrepreneur and their personality traits
The successful entrepreneur is that person who have ability to take risk in global
competitive market. They have this much capability to think new and provide better solution to
our problems. As there are many entrepreneur who has different skills and personality to blind
the requirements of the business. The entrepreneur run their business successfully if they have
capability to handle all the problems alone. In global competitive market, entrepreneur are the
one who take all the decisions for the organization to achieve the objectives of company in
appropriate manner. They can also manage the risk which are associated with the bushiness. In
this modern era, the successful entrepreneur are who gave the new definition to information and
technology namely, Mark Zuckerberg and Bill Gates (Karlan and Valdivia, 2011). Mark
Zuckerberg has introduced the application of Face Book. In this people are connected are
connected with each other. This application is used by many users as well as organization also. It
will be easy for the company to attract the large number of customers. On other side, Bill gates is
the co-founder of Microsoft. He has given the new name to computer technologies. The skills,
traits and characteristics of these successful entrepreneur are as follows.
Confidence – To become a successful entrepreneur there should be have confident to
attain the profits and to minimize the risks. Both successful entrepreneur have confidence and
also motivate to other person to achieve their targets in appropriate manner.
Self motivated – For successful entrepreneur they should be self motivated. They have to
manage their time and take the risk in terms of financial so that they can earn the large amount of
profits. They should have also believe on self that how to attract the customers and make the
large amount of profits.
Innovative – The successful entrepreneur has ability to create new and innovative ideas
and challenge to the other persons. Thorough the innovative idea they can become the successful
entrepreneur and can handle the risk in different manner.
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Risk taker – Business is the game of risk and successful entrepreneur are taking the risk
to run their business successfully (Lee-Ross and Lashley, 2010). If they are not taking the risk
then they will not become successful entrepreneur. However they taking risk in financial term.
Never be satisfied – Successful entrepreneur will not never satisfy that they have gain in
their life. They are trying more and more to make profits through the innovation ideas. They
never stop and take rest in their life.
P6) Aspects of entrepreneurial personality reflecting entrepreneurial motivation and mindset
The successful entrepreneur has capability to work in global competitive market. They
have to win all challenges which are available in market. To run the business successful they
have to analyse all the risk which are associated with the activities. They have better knowledge
that how to eliminate and minimise risk in order to gain the objectives of organization. Every
entrepreneur has different skills and characteristic which help them to fulfil their targets in time
period (Neck and Greene, 2011). Through their skills a new generation entrepreneur are also
inspired and try new things. Entrepreneur do their work with full of determination so that they
can accomplish with their goals and targets in time period. They manage there activities in such a
manner in which they do not have to face any problems. They also motivate and encourage the
employees who are working in there departments so that they give best possible of outcome
results.
Mark Zuckerberg is self-motivated person who perform their own functions and task with
taking the risk. As he had introduced the application of Face Book which is using as social
media. In this so may users are active and can communicate with each at any point of time. This
has inspired the new generation people also to innovate new technologies. In contrary, Bill Gate
is risk taking and confidence person who had introduced the Microsoft application. The
entrepreneur has to analyse the strength and weakness of other entrepreneur so that they can
make more appropriate plans for target there objectives in time period (Nga and Shamuganathan,
2010). As they are mind set that what they have to achieve in their life so nobody can distract
them to achieve the objectives. At work place they are using effective communication process so
that they can easily find out the issues which are facing by the employees. Through this they can
provide productive results to customers.
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P7) Background and past experiences as a contributing or hindering factor in entrepreneurship
The entrepreneur is that who establish their own business in global competitive market. If
they have set the targets to earn more profits then they have to set take more risk in financial
terms. To become a successful entrepreneur it sometimes generally affected by their background.
Generally successful entrepreneurs start their business at small cost and earn the huge amount of
profits from them. If the background of the entrepreneur and has family support they they can
achieve their targets in appropriate manner (Preuss, 2011). The background shows the level of
thing of entrepreneur that how much they have capacity to think beyond the power. A years ago,
the background of the successful entrepreneur was not good but now a days the background of
these entrepreneur are very good. They have good support from their families and having the
good experience. They have conducted the proper market research which help them to identify
the needs and requirements of customers. The background of both successful entrepreneur are
not so much good. Hence they both have done lots of efforts to gain this position in global
competitive market. Both time to time provide new kind of services to customers and through
this young generation people get motivated and encourage to do different kinds of things.
The successful entrepreneur may be suffer from good or worst experience in their life. If
they had faced the bad experience then they have to learn something from these experience. So
that they can take better decisions to achieve the objectives in appropriate manner. Through the
past experience they can handle any type of problems which they are facing in the organization.
They can also manage their work in appropriate manner (Schaper and et. al., 2014). For
becoming an successful entrepreneur it is important to manage the work accordingly so that it
will be helpful for them to target their objectives in time period. To become successful
entrepreneur they have to find their core competencies value so that they can take better
decisions. The experiences is depend upon the background of the entrepreneur on which they
have to perform their functions well in global competitive market. If the entrepreneur has receive
the good experience that they can find out the core competencies of other successful
entrepreneurs and can lead them to retain in market for a long period of time. Experienced
entrepreneurs can execute their own ideas in a better way if it is compared with the less
experienced person (Shane, 2012). Less experience entrepreneur does not manage their work
properly and even they don't know how to manage their work. They need the support or should
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take advice from expertise so that they can also become an successful entrepreneurs. The
background of the business entity may affect to the decision making of an entrepreneur if the
organization is categories in small sectors and through this they have less resources to take better
decision for the successful of the enterprises.
CONCLUSION
After summing up the report it ca be concluded that there are different types of
entrepreneurs who have different skills and personality and they ready to take risk to retain in
market for a long period of time. Along with this they have to accept those opportunities which
will give them advantage to satisfy the different needs and requirements of customers. The past
experience of the entrepreneur teaches the good lesson that what they have to be achieved in
their life.
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REFERENCES
Books and Journals
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J. C., Carland, J. W. and Stewart, W. H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy. 7(1).pp.1-20.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 9(2). pp.89-98.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
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.
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.
Islam, M. A., and et. al., 2011. Effect of entrepreneur and firm characteristics on the business
success of small and medium enterprises (SMEs) in Bangladesh. International Journal
of Business and Management. 6(3 ) p.289.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics. 93(2). pp.510-
527.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Nga, J. K. H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development.23(9-10).pp.787-814.
Raposo, M. and Do Paço, A., 2011. Entrepreneurship education: Relationship between
education and entrepreneurial activity. Psicothema. 23(3). pp.453-457.
Sampaio, A. R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. ournal of Sustainable Tourism. 20(2). pp.179-193.
Schaper, M. T., and et. al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review.37(1).pp.10-
20.
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Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D. J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
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