Entrepreneurship and Small Business Management

This assignment focuses on different types of entrepreneurial ventures and their relation to entrepreneurship typology. It also discusses the similarities and differences between entrepreneurial ventures. Furthermore, it explores the impact of micro and small businesses on the country's economy and the value of small businesses in the societal economy.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

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INTRODUCTION
Entrepreneur is a person who focuses upon setting up a business by taking various kinds
of risk in order to generate revenue and profit. Entrepreneurs mostly starts from a small business
and then gradually by bringing innovation within their products and services or by inventing
something their can grow from a small to large enterprise (Herliansyah and et. al., 2020). In
order to start a successful business entrepreneur, require, source of ideas, goods products and
services, capital and many more. In order to start a new business an entrepreneur need to focus
upon various kinds of resource requirements, support, legal procedure, economic support, market
condition and many more. This assignment will lay emphasis upon different types of typologies
and ventures of, difference and similarities between entrepreneurial ventures, impact of
business upon economy, mindset of entrepreneurs and different environments that foster or
hinder entrepreneurship.
LO 1
P 1 Different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
An entrepreneurship is a kind of a process in which a new business is designed, launched
and run by an Entrepreneur by using skills, characteristics, resources and taking huge risk so that
they can run their own successful business. Entrepreneur is quite different from intrapreneur.
Intrapreneur is an employee of an organization and is paid to work within an organization for
business success and prefers to take least amount of risk whereas Entrepreneur is a person who
runs a new business by taking a considerable amount of risk. There are various kinds of
typologies of entrepreneurship, such as: female, serial, lifestyle entrepreneurship and many more.
There are majorly three main types of entrepreneurial ventures. These three main categories of
ventures and their relationship with entrepreneurship typology have been explained below:
 Private entrepreneurship: It is a simplest form of an enterprise. It is controlled, owned and
managed by a single individual or group of individually personally with a single motive for
generating revenue and profit (Yusup, Rusmana and Rejeki, 2019). Private entrepreneurship
is mostly started as a sole proprietorship which does not involve much legal procedure. These
types of enterprises mostly start from a micro enterprise but with continuous innovations or
innovative ideas it can convert micro scale organization to a large size enterprise. It can be
related to serial and female entrepreneurship topology. This is majorly because today most of
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the women focus upon starting their own business in order to become independent and run
their own enterprise. According to a statistic more than 30 percent private enterprise are run
by female serial and female entrepreneurs. It can also be linked to lifestyle topology as well
because this type of topology do not require a physical location and can work online as well.
NPF is one of the private enterprise which is present in London Borough Of Newham.
 Public entrepreneurship: sThese enterprises focus upon involving innovations of those who
combine public and private resources in pursuit of their social objectives. This
entrepreneurship came into picture because of all the challenges that were faced for public
services and increasing complexities of the society (Septyanto, Anom and Dewanto, 2019).
These types of enterprises are majorly managed and controlled by government or by
partnership within government of a country. This type of entrepreneurship can be linked
serial entrepreneurship as in order to provides products and services to public they need to
think of new ideas and implement them within the organization so that organization can not
only provide products and services to public as per their needs and requirements but can also
generate revenue which can further contribute in overall economy of a country. For example:
East Ham Town Hall Annexe is one of the public enterprise presents in London Borough Of
Newham.
 Social entrepreneurship: These types of enterprises are controlled by private individuals in
order to resolve social problems and deliver products and services to people in order to create
a better world. These types of enterprises can be both profitable and non-profitable or can be
hybrid as well. It can be linked to lifestyle typology as in this entrepreneur do not require a
physical location and only focus upon doing work. It can also be related to social typology as
well. For example: Newham welfare trust is one of the social enterprise which is resent in
London Borough Of Newham
P 2 Similarities and differences between entrepreneurial ventures
Similarities:
All types of entrepreneurial ventures have some differences as well as similarities. Some
of the most common similarities between entrepreneurial ventures are as follows:
 Number of employees within a private and social enterprise completely depends upon the
type of size of the organization (Mokhtar, 2017).
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 Main focus of both large and social enterprise is to focus upon making products and services
available to people.
Differences:
All the three types of entrepreneurial ventures differ from each other on the basis of goal,
structure and number of employees working for an organization. Main goal and focus of all the
three types of ventures is completely different. Different between three types of ventures has
been explained below.
Private Public Social
Goal The main goal of such type of
organization is to achieve
growth, enhance business,
increase revenue and
profitability of the business. It
is one of the main and
common goal of private
organizations and specific
goals of organization
complexly depends upon type
of organization.
Main goal of such type of
organizations completely
depends upon the type of
organization sector in which
they are dealing but majorly
there are two main goals of
such type of organizations.
their main goal is to service
people and make products
and services easily available
to people and also to work
upon enhancing overall
economy of a country.
These types of organizations
can be of any type and size
but their main goal is to
product high quality
products and services to the
people by focusing upon
reducing hinderance for
people for buying products
and services required by
them.
Structure Such type of organization does
not have a particular type of
structure but most probability
these types of organization do
have sole proprietorship.
Overall organizational
structure of such type of
organization are quite
complex and depends upon
the type and size of
organizations but most
commonly these types of
organizations do have
partnership structure
(Mokhtar, 2017).
Most of the organizations
that do come in this category
have a specific type of
structure and are basically
trustee- based organization.
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Employees Number of employees of such
type of organizations majorly
varies from upon their size of
the organization.
Number of employees
within a public organization
also depends upon size of
the organization but are
more than 1000.
Number of employees of
such type of organizations
majorly varies from upon
their size of the
organization.
M1 Analyse the divers reach of entrepreneurial venture to exhibit an perceptive in society as well
as private sector.
In UK, both private and public sector is responsible for development of entrepreneurial
model which fully consider as grown model. In order to lead the economic growth and
development. Furthermore, it also focused on the socio-economic development and other
achievement of country. Government always support for private organization which contributing
to development of entrepreneurial venture. In order to maintain the better effective approach
which carried out sustain economic growth, size the potential opportunities. Furthermore, private
as well as public sector including innovation in term of services and manufacture item on the
basis of customer demands. Both kind of enterprises are mainly focused on the expansion and
also wanted to reach out the maximum people. Afterwards, it also motivating and fulfilling the
objective of business.
For Example- An entrepreneur venture and its own public sector, the organization consider as an
adherent line of item. In order to sell market share in the stock marketplace. There are wide
range of entrepreneurial venture in term of diverse, identify such kind of business purpose and
investment is done. In some cases, it can be divided the public as well as corporate sector.
LO2
P3- ways to interpret and assess data to understand the effect of micro and small business on
the countries economy
Micro and small business has huge effect on the economic system of the UK countries.
They are contribution almost 47 percent to their UK economy which is useful for the countries
development and their and improved the infrastructure of the country. The small and Micro
size business have the key role to booking the productivity and, but they also need the support
from the government to spread out their business and addition grow their impact on the
economy. The small and micro business take the loans from the banks, and they give interest
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to the bank. With the help of the loans they get from the bank small and micro business
entrepreneur start their own business to earn their own profit (Aguilera, Kim and Lee., 2018).
They give the taxes to the state government and the central government both which is used for
the development of the country they can develop the new roads' ad schools, collages and
provide the governmental polices for the public. The welfare of the society depend on the taxes
collected by the government for the public welfare. entrepreneur who run Small kind of business
are the main support of the UK , which helps to impulsive growth, opening the new
marketplace and creating the new jobs therefore their share is very high. As seedbeds for
creation, they promote competition and also bring the brand new ideas which used to challenge
the position quo (Krishnakumar., 2016). This stimulation in turn inducement others to change.
Simply put, small businesses are very necessary for UK plc. It goes without saying then, that
they should be bucked up to gesture. in an rising the economy is being felt more powerfully
across to the British organizations, and a affirmative economic outlook sees grow ambitions for
growth, both at the home and seagoing. The road to recovery and beyond, is paved with
opportunity.
The contribution from the Small and the Micro business provide the benefits to those
people who are financially weak, and they support themselves and their family. Their children
get chance to go to the schools, and they can also but the food and other thing in fewer prices as
a benefit from the government. This type of business create the job opportunities for the
people who are looking for the jobs which is also an contribution to the economy of the United
Kingdom.
P4- Value of the small business and their contribution to societal economy
Small business are important for the social economy because small business provide the
huge benefits to the economy. There are some of the benefits which can help the development
of the economy and provide the boost top the countries economy. Here are some contribution
to the economy by the small business -
Development of school and collages
Government collect the taxes from the small business which is used for the social
benefits and government make the schools and colleges, so they can provide the education to
their society in a very less fees. Government can use the taxes to pass the befits to the public
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and improve the schools facilitates and make the better pace fro the people to take the proper
education in the schools (Maengwe and Otuya., 2016).
Employment
Small business entrepreneur can start their own business and also create opportunities
for the other people to get employees. If the entrepreneur will start their business then they will
need the employees and management staff who can run their day to day activities, so they will
provide the job to the people and this also and contribution to the employee if the employment
rate will be increase then it will affect on the countries GDP growth and people can learn more
better and leave the conferrable life in the country.
Keeping the money in own country
Small businesses mostly work very difficult to keep as much business to be local as they
can. This means that they are working with and giving their support to the fellow small
businesses, exploitation as many of the local goods as accomplished, etc (Pham, Triantis and
Donovan., 2018). This direction helps impact on the local economies of the country. It also
profitable for the people as a whole. Local businesses’ success means the the country will get
more local tax as a wealth, which can be helpful to improve the schools and other local
services. While wealth spent at bigger, the chain businesses often stays in the society, small
businesses keep the last parentage of their net profit and curve those back into other people.
Future growth
The small business will not always be a small business. There are many business which
start with the small and new they are shifted to the large organizations d giving their
contribution to the economy. Most of The small business become the large organization with
the rapidly growth and give there contribution to the economy when they become the large
business enterprise and also provide the job opportunities to their own people and also run their
market in the global level.
M2- Share of small, medium and large business on the economy with evidence and data
The UK government have been published the data which shows there were more than
35600 medium size business in the united kingdom at the start of the 2019 which is around 0.6
percent of the GDP and the large business contribute around 0.1 percent at the same time
there were 5.82 million small business making up 99.3 percent of the total business
population less than 4 percent are the small business and in this business 10 to 50 employees
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can work SMEs make the lots of new employment opportunities fro the UK people (Storey.,
2016). They also make a unit of skilled and semi-skilled employees to give their assistance future
industrial and the business incremental in the country. The stableness in the UK economy relies
on low unemployment rates. UK's government get the Taxes from the all kind of business and
the country are getting the different kid of benefits from the businesses. Large business help to
collect large revenue and taxes, they huge amount of loan and also help to make the strong
currency for the economy of the country and small business and medium business also have
huge impact and providing benefits to economy.
LO 3
P5 Characteristic traits skills of successful entrepreneur that differentiate them from other
business manager
There are several businessmen and entrepreneurs but there are only some businessmen who got
succeed because of their skills. As compare to businessmen it can be said that entrepreneurs have
several skills and traits, abilities which not only make them successful but also differ them from
businessmen. Some traits, abilities and skills of successful entrepreneurs like Bill Gates and
Henry Ford include:
Innovation: Innovation is one of the main skills of Bill gates which made him successful and
able to become software developer. Moving fast and keep innovating also made him able to stay
competitive in saturated start up world. Innovation is the think by which successful entrepreneurs
often try to make their processes and products innovative which makes them differ than others
and businessmen.
Time management: Time management and delivering their projects in a timely manner and
before given deadline is other main skill of successful entrepreneurs and Henry Ford which has
allowed them to improve their image. Completing all projects in a timely manner also make them
able to avoid procrastination and reduce stress. On the other hand, in the context of business
manager it can be said that they complete their functions in hurry and sometimes procrastination
increases stress by which they miss given deadline.
Learning from own mistakes: It is stated that Bill gates focuses on learning new things fron
their own mistakes. He also said that human mannequin mistakes but there are several people
who lack behind when they face problems and commit mistakes as it lowers their motivation.
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But a successful entrepreneur learns many things from their own mistakes and tries to identify
reasons of mistakes (Bartz and Bartz, 2017). Whereas, businessmen directly change their
strategies if they become fail and sometimes it lowers their morale.
Taking risks as opportunities: Business environment is full of opportunities ad threats. There
are several factors that keep changing any time and without any prior informations like climate
change, situation changes, economical changes etc. These changes can create several problems
but a successful entrepreneur like Henry Ford try to learn something new by taking risks. They
believe that by taking risks they can increase their flexibility skill. On the other hand, as compare
to entrepreneurs, businessmen try to avoid risks rather taking them as an opportunity. It is the
difference between a successful entrepreneur and businessman.
Collaboration: Entrepreneurs believe that rather working individually collaboration and team
working plays an important role. They cooperate their employees and followers in their working
and guide them for encouraging them and motivating them. On the other hand, businessmen
monitor all functions and rather collaborating they try to make their followers and employees self
dependent. Entrepreneur treats their employees as the most important resources and friend and
businessmen treat their employees just like other resources of the company.
Resilient: It is one of the main abilities which make entrepreneurs able to adapt stress, tragedy as
well as threats in an effective manner. It is all about to make own able to adapt difficult problems
and dealing with clients and problems (Bartz and Bartz, 2017). As compare to businessmen,
entrepreneurs can protect themselves against stressful period.
P6 Assess how aspects of the entrepreneurial personality.
Entrepreneurial personality may include which creating the something new, analysing the
requirement of customer. it take advantage of organization to increase productivity as well as
profitability in global marketplace (Raible and Middleton, 2019). The success is mainly
depending on the motivation which come of innovative idea that are becoming popular in global
world. Sometimes, it is acceptable by achieving the something good in business development.
Bill gates has come charismatic quality through which they can achieve desirable goal and
objective. There are something different from other managers because they have owned believed
to become establish the business in global marketplace. Nowadays, it is becoming consider as a
great leader which established the successful organization such as Microsoft Company. In
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currently, it is the fastest growing software company which providing best quality of product as
well as service in global world (Shepherd and Patzelt, 2018). Bill gates has a leadership quality
that’s why they can achieve the great success. It should be mainly focused on the characteristics,
traits and mind set which always supports for achieving the goal, objective.
Characteristics
 Freedom oriented: Bill gate has a power to do their task with free mode in order to
examine the current business goal and objective. They always focused on the quality of
service as try to adapt innovative thing in their organizational development (Shepherd
and Patzelt, 2018). Sometimes, Freedom-oriented quality has demonstrated with their
independent and freedom.
 Risk Tolerance: he has distributed the sample of his own product knowing. At someday,
they will come for sure to eliminate risk. Bill gates become risk tolerance and always
maintain their positive attitude towards task execution (Leong, 2017). This type of
characteristics influence towards the desirable goal.
 Self-Motivation: it is one of important trait of bill gates which always motivating towards
their goal and achievement. If he was succeed because of their self-motivation which
providing the right direction (Shepherd and Patzelt, 2018). It means that something hard
to get moving without anyone. As needs to understand the dedication to business strategy
plan which keep moving towards business expansion.
Mind set
 Visionary: Bill gate become visionary mind set and always try to implement new idea in
business. He was conducted the meeting and discuss about the change within software
company. Its primary vision to increase the demand of business while providing better
service to customer (Raible and Middleton, 2019).
 Business mind: Bill has stated the own business in such manner, he was sure about the
product as well as service. In order to hit the markets (Raible and Middleton, 2019). Bill
always believed that own ability support for achieving specific objective but require to
change the ability in regards of business theories.
Persuasive: During recession, Bill has planned an effective strategy that could pull his business
towards various stages. In this way, it has shown the persuasive ability within bill gates (Raible
and Middleton, 2019).
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M 3 Examine different lines of argument relating to entrepreneurial characteristics
Entrepreneurial characteristics, skills and traits plays a vital role in achieving success,
achieving desired goal and objectives in a better manner. Entrepreneurs are the one who need to
deal with their employees, suppliers and many more people in order to sun a business
successfully. For example, in the above question Bill gates are some skills, qualities,
characteristics and traits that has helped him to achieve success such as: First was focus i.e. bill
gates only focused upon one thing in which he was extremely good which was software which
helped him in dominating in the software industry. His creativity helped him in exploring new
opportunities and ideas to achieve success and expand his business.
LO 4
P7 Discuss about government and experience that can hinder or foster entrepreneurship.
In case of Bill gates, it can easily explain about the experience that can achieve their
suitable goal and objective. Bill gate has a technical knowledge so that it become easier for
implementing the right business model in global marketplace (Raible and Middleton, 2019). The
entrepreneur and businessman bill gates, Paul Allen founded the world’s largest software
company. It always keep maintain the innovation technology in order to implement business
strategy for achieving their desirable goal and objective.
The bill gates was grew up in middle class family, actively involved on the leadership
and affairs. The family atmosphere was warm and close. He always encouraged or motivated to
focus on their competitive environment. In early stage, it represent the competitiveness when he
coordinated family game at summer house. During college days, he was enrolled at the
university and spending a lot of time in computer lab. Afterwards, he met with Allen and both
become fast friends, creating a strong between them. In regardless, Allen and gates spend a lot of
time together, working on the computer programs (Raible and Middleton, 2019). One day, Gates
developed the payroll program for computer organization. Afterwards, it will be developed the
interest and want to establish business. In 1975, Allen and gates formed Microsoft Company.
Initially it was not smooth sailing. As grew the industry, Gates was continuously putting their
efforts to increase their business capabilities. In order to achieve the success in global
marketplace, becoming establish the position as a great successful entrepreneur.
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M 4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience
Experience and personal background of a person are inter- related to each other.
Background of person mostly works as a push factors that helps in influencing them to become
an entrepreneur whereas their experience works as a motivational factor that motivates then to
start their own business. For example, in the above question family background of Bill gates
encouraged him to become an entrepreneur. As Bill Gates and his other two siblings were always
competitive which encouraged him to start his own business.
CONCLUSION
From the above assignment it has been concluded that there are different kinds of
entrepreneurial ventures. Each venture has different kinds of typologies. From the able
assignment it has been analysed that small business plays a vital role in reducing unemployment
rate of a country and also contributes in increasing overall economy of a country. it has also been
analysed that successful entrepreneurs have sone skills, characteristics and traits that helps them
to become successful and segregate them from other managers.
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REREFENCES
Books and Journals
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