Entrepreneurship and Small Business Management

This report discusses entrepreneurship and small business management, including the different types of entrepreneurial ventures, their impact on the economy, and the skills and traits of successful entrepreneurs. It also highlights the importance of small businesses in the growth of the social economy.

Entrepreneurship and Small
Business Management

Table of Contents
Entrepreneurship and Small Business Management........................................................................1
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different type of Entrepreneurial Ventures............................................................................3
P2 Similarities and Differences between Entrepreneurial Ventures............................................5
LO2..................................................................................................................................................6
P3 Impact of Micro and Small Business on Economy................................................................6
P4 Importance of Small Business and Start-ups in the growth of Social Economy....................7
LO3..................................................................................................................................................8
P5 Characteristic Traits and Skills of Successful Entrepreneurs.................................................8
P6 Reflection of Entrepreneurial Personality through Entrepreneurial Mind-Set.......................9
LO4................................................................................................................................................11
P7 Impact of background and Experience on hindering or fostering Entrepreneurship............11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to an act of developing a business idea, starting and carrying out
the business and managing the business on regular basis. The person doing so is known as
entrepreneur. This report includes discussion over entrepreneurship and management of small
business. In order to do this firstly the report discusses types and range of entrepreneurial
ventures that individuals and entrepreneurs can start. In this report similarities and differences
between different entrepreneurial ventures have also been discussed. Most type of
entrepreneurship are under micro and small businesses and thus make significant impact on the
economy of a country, hence impact of micro and small businesses have also been discussed in
this report. This report also includes impact that small businesses have on rising and growth of
social economy. After this discussion, entrepreneurs have also been discussed in this report along
with their skills and characteristics which differentiate them from others.
LO1
P1 Different type of Entrepreneurial Ventures
Entrepreneurship refers to creating a business and building and scaling it so that the
business can generate profit (Morris and et.al., 2018). In another very basic manner
entrepreneurship means that entrepreneurs make decision and turn their dreams into reality and
lead their actions of choice for a meaningful end and start their venture, which are known as
entrepreneurship.
Entrepreneurs who undertake entrepreneurships are divided in various forms. These are serial
entrepreneurs means that entrepreneur comes up with various new ideas and starts new
businesses. Such entrepreneurs come up with ideas and start the venture namely companies,
some companies and ideas fails, some gets sold. Such entrepreneurs are always looking for
opportunities and always excited to start something new.
Intrapreneurs, on the other hand are an employee in a business or organisation. This employee is
charged with the duty to make and crate something innovative for the company and for a project

within a company. In this intrapreneurs have access to resources and capabilities of a firm for
which they are working.
Owner manager as the name specify is both for a company and venture (Wright and et.al., 2016).
This individual who is known as owner-manager is both for a company and venture. He starts
and own a venture and fulfil all the responsibilities as a manager of the company and looks after
all the day to day functions of the business.
Typology of Entrepreneurship refers to classification of various types of entrepreneurship. In this
basis of the difference is not considered and only entrepreneurships are classified.
Classification of Entrepreneurships
Entrepreneurships are based on various aspects their size, type, purpose, sector and
growth rate of the venture.
On the basis of the size Entrepreneurships are divided as micro, small, medium and large
entrepreneurship. Micro entrepreneurship refers to small scale business which employs less than
10 employees and operates at small level with limited investment and resources.
Small Business Entrepreneurship, such businesses are larger than micro and employs less than 50
employees.
Medium Size entrepreneurships are larger than small businesses and smaller than large
businesses, such businesses employs less than 250 employees (Neumeyer and Santos, 2018).
Small scale companies are example of such businesses.
Large Business Entrepreneurships are biggest on the basis of size and this is why
employs more than 250 employees. Such entrepreneurships are companies and multinational
organisations.
On the basis of purpose entrepreneurships are categorised as social entrepreneurships and for-
profit entrepreneurships. In this social entrepreneurships are started and operated for the purpose
of serving society. For-profit organisations and entrepreneurships are those which are started and
operated for the purpose of earning and increasing profit.
On the basis of sector under which entrepreneurships are categorized as corporate organisation
and public sector organisation, in this corporate organisation are those which undertake business

activities and earn profit. Public sector organisations are those which are operated to serve and
provide services to public and are operated by state and central government.
Other than this Scalable Entrepreneurships are also a type of entrepreneurship, in this
entrepreneur perceive an idea and consider this as it can change the world and add in existing
value of life of people (Kuratko, 2016). In this entrepreneurs get investment from capitalist and
increase scale of their operations.
P2 Similarities and Differences between Entrepreneurial Ventures
Various types of entrepreneurial ventures were discussed and this discussion suggest that
though they are divided and classified on various different basis these ventures have various
similarities (Secundo, Schiuma and Passiante, 2017). These are as follows-
On the basis of above analysis it can be said that when it comes to profit both large business and
scalable business organisations are able to and have an objective to earn and increase profit.
When it comes to non-profit than social entrepreneurship and public sector organisations both
are similar and both does not operate with motive to earn and increase profit and profit earned by
both the organisations are again invested in the organisations.
Differences
Differences are also there in various types of entrepreneurial ventures. Most important difference
is on the basis of employees and scale of operations of the business ventures. In this small and
medium size ventures employs less than 10 and 50 employees. On this basis large scale
businesses employs more than 250 employees.
On the basis of profit earned it can be said that large and scalable businesses earn significant
profit but on the other hand small and micro businesses earn very less profit. Social and non-
profit organisations on the other hand earn no profit at all.
Objective also differ in these ventures social and non-profit organisations operate to serve
society, small businesses start so that they can earn profit and maintain their living (Secundo,
Schiuma and Passiante, 2017). Large businesses operate with the objective of filling the gap in

existing products and needs of people. Along with such organisations also operate so that they
can serve interest of their owners in large companies these are generally known as shareholders.
LO2
P3 Impact of Micro and Small Business on Economy
Micro businesses are those which are small size businesses and involve maximum 10
people in this. Generally created and operated by individual with a purpose to maintain a living
for them and their family (Culkin, 2016). Capital invested and resources required in this are very
small in quantity.
Small businesses are not large but larger than micro businesses require more capital and
resources and operate at comparatively higher scale. These businesses operate with maximum 50
employees. Functions and operations carried out in such businesses are limited to core activities
and important activities to support core activities like financial management of the business.
Number of such businesses is highest in any economy and this is why impact of these is also
very significant for the economy. Their make contribution in every aspect of economy such as
employment, GDP, per capita income and tax all these are important for a healthy and growing
economy. The impact which Micro businesses make on economy of UK is as follows-
Small businesses of contribute and part around 99.3% of total businesses of UK with less than 49
employees.
In private sector of UK SME’s take part in three fifth of the employment of private sector and
along with that half of the turnover of UK’s private sector (UK Small Business Statistics, 2020).
Economy of UK consists of 5.9 million businesses in private sector with 1.4 million having
employees and other was run by their owners.
In this private sector of UK consist of 3.5 million sole proprietorships and 2 million actively
trading companies.

The number of all these have grown from 2018 to 2019 and total population of business grew by
3.5% which is higher than businesses increased from 2000 to 2018.
In this population of business Fifth of all SME’s were operating in construction, 14% of all
SME’s employment was in retail and wholesale trade (UK Small Business Statistics, 2020).
In this most businesses are located at London and South East and least are located at North East
of the English region.
All these data which have been motioned suggests and communicate importance of Small and
medium businesses for the economy (UK Small Business Statistics, 2020).
In many of the businesses owners invest their own money and this contribute to economic
development and growth of the country.
P4 Importance of Small Business and Start-ups in the growth of Social Economy
Social economy refers to economy which is based on cooperatives, not for profit and
voluntary organisation rather than activities which involved paid activities and activities which
are carried for the purpose of earning profit (Warren, 2017). These are carried out across
community, across national and international economies. Such organisation deliver services to
their members and some of them serve society without the motive of making profit and without
using market. In another form social economy can also be said that in social economy
organisations think of interest of all the concerned people rather than thinking about interest of
only owners.
Social economy is growing and small businesses are very important for growth of social
economy. There are various reasons which make small businesses important for growth of social
economy. Some of the important reasons are as follows-
Creation of Employment
Small businesses around 99 percent of all the businesses and this are why such businesses
significantly contribute to creation of employment (Thatcher and et.al., 2016). One major aspect

to consider in this is that such business employ local people and creates opportunities for local
people who are less qualified.
Innovation
Various small businesses provide innovative services and products. This contributes in fulfilling
needs and desires of people with better means. Innovation also a part of social economy as this
adds in existing value of goods and products and also adds in the value of life.
Engage significant number of people
Small businesses engage significant number of people. Such businesses engage people who are
from disadvantage group (Guevara and Thiagarajan, 2019). In this various people can get
associated with business at local level and those who find it difficult to work elsewhere can work
with small businesses.
Meeting social purpose
There are various social purposes and through small businesses such social purposes can
be met. These involve themselves in sponsoring fundraiser for social cause, encourage recycling
and reduce wastage, get involved in community services and promote responsible behaviour.
Local Improvement
Direct impact of small businesses in on local economy and this helps in local
improvement. Local employment is also a part of local improvement, providing assistance for
development of local infrastructure etc.
Charities and Sponsorship
Sponsorships are very common and effective medium and source of increasing visibility
and promoting businesses (Guevara and Thiagarajan, 2019). Local and Small businesses also do
this by sponsoring local events. Through this both the parties can get benefit of this.

LO3
P5 Characteristic Traits and Skills of Successful Entrepreneurs
Successful entrepreneurs possess many skills and traits which differentiate them from
managers. Some of the significant characteristic traits which are possessed by entrepreneur are as
follows-
Passion
This is one of the most significant characteristic trait of successful entrepreneurs (Marques and
et.al., 2019). They are passionate about their vision and always looking for opportunities and
creating ways in which they can convert their vision into to reality.
Open minded
Entrepreneur have this characteristic trait that they are open minded this means that they are
always ready to listen and understand what others are saying and what they want to say. This
widens the area armed scale for thinking. Entrepreneurs are able to understand various related
aspects of the situations.
Risk Taking
This is one of the most important and significantly required traits of entrepreneur. Entrepreneurs
who are successful must possess this rate and they are ready to take risk. Entrepreneurs can take
risk because they are confident and strongly believe in dear vision. Entrepreneurs look from wide
angle and this make them look from the frame of others specifically what their customers will
like and appreciate and this is why they remain confident their idea will be liked and appreciated
by customers and which will make their business and efforts successful.
Strong people skills
Entrepreneurs no it very clearly that for success of their venture it is very important to you have
connections with other people and entrepreneurs also understand importance of employees in the
organisation. This is why their skills are very effective in convincing people to work the way a
entrepreneur want them to work (Thomas and Santha, 2018). This also includes effective
communication and it and interpersonal skills.

P6 Reflection of Entrepreneurial Personality through Entrepreneurial Mind-Set
Reflection of entrepreneur real personality e through their mind set as entrepreneurs are
different from managers there are various aspects of the personality which reflect dear
entrepreneur real mindset. Some of them are-
Curiosity
Entrepreneurs are always curious to learn and know about new things. This is very important as
they increase their knowledge and use it in their venture (Al Mamun, Fazal and Muniady, 2019).
Curiosity also helps them to find creative and unique solutions to their problem and opens new
horizons for thinking and making solutions to existing problems. Through their curiosity
entrepreneurs always find solutions which are out of the box and something which earlier have
not been used by anyone other than them.
Optimism
This is another important personality e aspect of personality that they are positive and optimistic.
This also give them confidence and make them ready to take risk. Entrepreneurs have ability to
find Positive and opportunities in every e challenge and difficult situation. This is one of the very
unique qualities of entrepreneurs. Through this quality they manage to remain committed their
vision and objective. This ensures that even after failure entrepreneurs keep up crime for success.
Flexibility
Entrepreneurs are adaptable top change and ready to change according to the changes in the
environment. In relation with their venture they are always ready to change as per the changing
demand off market (Ishak, Abidin and Rajadurai, 2018). This flexibility is useful for the venture
and for their personal networking. They know how they can manage different situations by
adopting and accepting different behaviour which are according to and suitable to the situation.
Leadership
Entrepreneurs are business owners and require leading people who are working in and working
for their venture. Entrepreneurs have effective leadership skills so that they are able to influence
other people and their opinion. It is very important as along with their business they are they are

required to lead those who are working for their venture and are contributing towards their
success.
Networking
This is very important for every entrepreneur that they have excellent networking skills and have
wide connections. Such connections are very useful and entrepreneurs can take advantage of
them in their business and for its success as they know all the type of people who can solve their
problems.
LO4
P7 Impact of background and Experience on hindering or fostering Entrepreneurship
Background and Experience are key factors that affect entrepreneurship (Fernholz, 2018).
From above discussion it can be understand that entrepreneurs need to have various skills and at
the same time they also possess some significant and unique attributes which are not possessed
by someone else and managers of business organisations. There are several examples which
suggest that entrepreneurs face many difficulties in their life but their passion and commitment
make them successful.
Some entrepreneurs leave their passion once they fail in that but successful are those who do not
leave their passion. One such person who is one of the most successful entrepreneur and have
created one of the most successful entrepreneurships in the world. The entrepreneur is Jeff Bezos
and his entrepreneurship is known as Amazon. This is one of the most successful companies and
entrepreneurships world have ever seen.
In this Jeff Bezos before starting and creating Amazon have faced many failures and later created
Amazon and made it successful (Bezos, 2016). This can be justifies with the trait which is
required to be possessed by entrepreneurs, this is commitment and passion. Jeff Bezos was
committed to become successful and in order to do that he undertook and started various
entrepreneurial ventures and after failure he started Amazon and became successful in this. In
this one of the significant failures he faced was his online auction site and this idea failed. Later

Bezos changed and repurposed his idea and started Amazon and eventually became notable
name in marketplace.
In this context another name which can be considered as Lawrence Ellison, co-founder,
executive chairmen and chief executive officer of Oracle. Company of Lawrence Ellison faced
its own share of ups and downs and struggled before making it a big name (Bostan and Mian,
2018). Lawrence was a college dropout and worked as a programmer for few years and later
started a company with his former boss. In relation with Entrepreneurship of Ellison it can be
said that education and knowledge is very important and this became important resource for
Ellison in his entrepreneurial venture. Another factor to consider in this is that during tough time
his company was facing he mortgaged his house in order to obtain a line of credit to keep the
business working. This shows confidence of Lawrence in his idea and the confidence later
proved right and made him and his entrepreneurship successful.
CONCLUSION
On the basis of above discussion it can be said that entrepreneurs have wide range of
choices when it comes to select one type of venture for their entrepreneurship. They can choose
most appropriate on the basis of various factors like expertise, available resources etc. This
report later discusses similarities and differences in the entrepreneurial ventures and employees,
turnover, profit intentions are some things which create basis of similarity as well as for
difference. Later impact of small and micro business on economy was discussed along with their
contribution to growth of social economy. This report earlier discussed entrepreneurial ventures
and later part of the report included discussion over entrepreneurs regarding their traits, skills
and impact of background and experience on fostering their entrepreneurship. In this example of
Jeff Bezos and Lawrence Ellison were included as past and experience of both of them was not
very good and even after that both of them are notable and successful entrepreneurs.

REFERENCES
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Online
UK Small Business Statistics. 2020 [Online]. Available Through:
<https://www.fsb.org.uk/uk-small-business-statistics.html>.