Entrepreneurship and Small Business

The assignment delves into the world of entrepreneurship and small business, exploring the concept of entrepreneurship as a process of creating new enterprises or startups. It examines different types of entrepreneurial ventures, their similarities and differences, and the impact of small businesses on the economy. The study also focuses on the characteristics and traits of successful entrepreneurs, including their mindset and background experiences that foster or hinder entrepreneurship.

Entrepreneurial and small
business

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 .............................................................................................................................................1
P 1 Types of entrepreneurial ventures and typology ..................................................................1
P2 Similarities an differences between entrepreneurial ventures ..............................................2
LO 2 ................................................................................................................................................5
P3 Impact of small businesses ....................................................................................................5
P4 Importance of small business on the growth of economy ....................................................6
LO 3 ................................................................................................................................................7
P5 Characteristics , traits and skills of successful entrepreneur ................................................7
P6 Entrepreneur personality reflect entrepreneurial motivation and mindset ............................8
LO 4 ................................................................................................................................................9
P7 Background and experiences can hinder or foster entrepreneur ...........................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process of designing , launching and running the business in the
right direction. The business they start is initially a small business. And the people who create
this business are known as entrepreneur. As they are the person who initiate the business and
take the responsibility of that to run in the profitable manner. It is basically describe as how new
business are created as well as the actual process of starting new business. This report is based on
entrepreneurship and small business management as small business plays a major role in the
economy. As it motivate the people to start their business. Further this report will examine
different type of ventures and explain the relation to the typology of entrepreneurship. It will also
explore similarities and difference between the ventures. This report will also look upon all the
statistics to illustrate small business impact and also the importance of small businesses start up
to the growth of the social economy. It will also determine the characteristic trait and skills of
successful entrepreneurs that is different from manager. It will also access the aspects of the
entrepreneurial personality which reflect entrepreneurial motivation and mindset. And at last it
will discuss background of the entrepreneur.
LO 1
P 1 Types of entrepreneurial ventures and typology
Entrepreneurial Ventures
Micro entrepreneurial Ventures - these are the ventures which are operate at very low
level which sells goods and services to a local areas or a local market. Also it employs less than
10 people. And they are funded from micro credit and micro finance.
Small entrepreneurial Ventures – These are the ventures which serve the most to the
society. They are operate at low level. And closely held by the individual in which the individual
take the responsibility to carry out the process. The capital provided for the small business are
from bank , micro loans and friends . It employs less than 250 workers and it trained and polish
their skills (Cowling and et.al, 2015).
Large entrepreneurial Venture – these are the venture which are large in size and operate
at large level with more than 1000 workers. These type of ventures are little bit complex in
nature. The capital provided for the large enterprise generally from bank loans.
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Private entrepreneur Venture – these are the type of venture which are owned and
manage by the individual as there is no intervention of government. This venture are restricted to
transfer its share to public and also there are restriction to offer share to public. For example John
Lewis .
Public entrepreneur Venture – these are the venture which are owned and control by the
government. And also it has to follow many legal formalities. It can transfer and sold its share to
public through initial public offering. It is mandatory for the public venture to list itself on stock
exchange. As these ventures are less risky as there is complete support of government. For
example Tesco.
Typology of Entrepreneurship
There are various type of entrepreneurship typology which are describe below -
Social firm – these are the firm which mainly focus in the improvement of the society.
As it provide high quality products to the customers. The main motive of social firm is to serve
the society and put hundred percent to fulfil the need and wants of the society. It also focus to
create many employment opportunities for the people so to increase the living standard of the
people.
Growth firm – growth firm are the firm which grow faster than its peer group. They are
the one whose growth rate is high just because of its innovative products and advance
technology. They are the firm which have high profitability and high sales volume in the market.
And also by is unique and innovative products it gain competitive advantage over other.
Scalable firm – these are the ventures which are the main source of start up and which is
based on own ideas. As these are the ventures which always come with creative and innovative
idea in the market. And also they have the potential to become successful fast moving ventures
with its innovative skills.
P2 Similarities an differences between entrepreneurial ventures
Difference between public and private entrepreneur ventures
Survival firm Lifestyle firm Managed growth Aggressive
growth
Annual growth
rate
The annual
growth rate of
The annual
growth rate of
The annual
growth rate of
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survival firm has
grown by 72.8 %
growth over 3
years.
lifestyle firm is
up to 7 to 8
percent per year
is higher than
average.
managed growth
firm is up to 10
percent .
Time Horizon
Managerial focus It is focus on
sales of the
business
It is focus to serve
the society.
It is focus is to
earn profit
Its focus is to
satisfy the need
and want of the
customers.
Managerial style It uses the style
autocratic as there
are limited
number the
worker and only
the owner take
the majority of
decision in the
organisation.
It uses
consultative style
as in this form
allow for
discussion than
autocratic .
It uses Laissez
faire in which the
manager leave the
decision making
process with the
members and take
no part in this
process.
It uses democratic
style as it is the
most effective
style in which
manager involve
the member in the
decision making
process.
Entrepreneur
orientation
Its orientation is
to start up .
Its orientation is
to bring
innovation in the
society
Its orientation is
to take risk so that
to get high return.
It orientation is to
concentrate on the
overall
performance of
the enterprise.
Managerial skills The managerial
skills use here is
communication
skills as it is very
important to
communicate to
The managerial
skills use here
problem solving
as it is important
to solve the
problem in the
The managerial
skills use by
manage growth
firm is leadership
as it is very
important to lead
In this it uses time
management as it
is very important
to manage the
work according to
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the employees in
effective manner .
systematic
manner.
the team in
systematic
manner .
time.
Technology
investment
No major
investment
20000 More than 20,000 Required more on
technology.
Exit approach It uses consent
approach
It uses liquidation Uses liquidation Wide up
Source of finance The source of
finance is from
friends and family
The main source
of finance from
micro finance and
credit .
The main source
of finance is from
bank loan .
The main source
of finance is from
government and
from public by
initial public
offering.
Organisation
structure
It uses flat
structure as it
operate with very
low level and also
there is less than
10 employees in
the enterprise.
It also uses flat
structure because
small business
operate in very
low level and also
it has limited
functioning.
As manage firm
are usually large
in nature and also
complicated so it
uses tall structure
as in these it has
many layer of
management.
As aggressive
firm are generally
public company
which follows tall
o0rganisation
structure as there
are large number
of employees so
tall structure is
best for the
organisation for
free flow of
communication.
Economic
motives
The main
economic motive
is to serve goods
and services to
The main
economic motive
is to serve the
society and train
The main
economic motive
is to earn
sustainable profit
The economic
motive is to serve
the society and
satisfy the need
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the local area and
local market.
the employees in
right direction.
and growth. and wants
costumer
Similarities
There are many similarities among all the firms such as -
Strong-willed entrepreneur – they have strong willed entrepreneur they all have
capability to be successful and achieve their respective goals.
Funding from some venture capitalist or investor – from initial purposes they all are
funding from the venture capitalists as it is the main source of finance.
Creative idea – the basic similarities between the firms are they all are creative and bring
innovative products and services to serve the society. They all work to develop the products with
its creative skills.
Creating a Brand name - they all are indulge in creating their brand name and making
successful in each and every terms.
Sustain against large businesses – they all are very innovative and that is the reason they
sustain against large business.
Constant Innovation – all of the above form work for the constant innovation. As with
their creative ideas it is important to bring innovation.
Driving forces – they all have the same driving forces such as they all are motivated to
achieve the goals of the society.
LO 2
P3 Impact of small businesses
Micro business – Micro business are the business which operate at very low level. And
also employees 10 workers. There basic motive is to serve goods and services to the local people
and local market. It turnover considered to have $1 million. And it source of finance is personal.
Small business – small business are consider to be the main source of innovation. As they
provide many employment opportunity to the people. Small business have less than 250 workers.
And its turnover between $1 million to $ 20 million . The source of finance is from friends and
family.
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Small business impact the economy to the large extent. Small business accounted for
99.3% of all private sector businesses at the start of 2018 and 99 .9 % were small or medium
sized. Total employment in SME was 16.3 million and 60 % of all private sector employment in
the United Kingdom. As they both are consider to be the backbone of the economy. As the
combine turnover of Small medium business was £ 2.0 trillion and also 52 % of all private sector
turnover. Micro and small business generate 46 % of revenue. Also they play a major role in job
creation as more than 370000 jobs are created from this type of business. It efforts are towards
employing a common definition that would accepted across the globe. It has he ability to fuel
economic growth. It also encourages women to start their start up and run their own business and
earn profit. They also impact the GDP of the economy as by contributing to a large number.
They are the venture who gives innovative ideas and creatine skills to the society as they are
consider to be the main source of innovation. Hence , it can be concluded that small medium
business gives positive impact in the society and improve the society to a large extent
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P4 Importance of small business on the growth of economy
Social economy – It basically a formed by rich diversity of enterprise and organisation as it
include cooperatives , mutual association and sharing common values. As small business plays
an important role in the growth of the economy such as -
 Creation of employment – small business create employment opportunity to a
large number. It provide better employment opportunities. Small business employ
over 16.3 million people in United Kingdom which accounts 60 % of all private
sector employment. As they consider as the main source of employment and also
create many opportunities and also improve the living standard of the people.
And provide them best quality products and services.
 Innovation – as small business play a major role in innovation as they always
come up with new innovative products and services. And always innovates their
products and services. By constant innovation it updates its products and services.
And also they are the major origin of innovation.
 Leading the way on diversity – small business also help society to involve many
worker and motivate them to work with diversify or different culture of people so
that they learn different culture and value of the people . And learn to work in the
team by less conflicts and high degree of coordination (Alvarez‐Garrido and
Dushnitsky, 2016).
Meeting social purpose – the next importance of small business is that meeting social purpose it
gives its hundred percent to fulfil or to meet the purpose of the society. As it serve the society
and improve it to the large extent. And also it increase the living standard of the people. By
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motivating them to start their start ups and earn profit independently and encourage people for
start up specially women so that they become independent and run their business by its own.
 Local improvement – the last and most important role of small business is that it
helps in local improvement. As it helps to improve its local area by providing
high quality products at cheap prices. And also it has direct contact with the local
people and they known their needs and wants so they satisfy them in effective
manner. And also it helps to provide training to the worker and polish their skills
which will help them in future.
LO 3
P5 Characteristics , traits and skills of successful entrepreneur
Basis Peter Jones Bill Gates
Traits Peter Jones have a clear vision
and strategy for the team. As
he way result oriented and
believe to increase the
productivity of the
organisation. And also involve
the whole team in decision
making and express interest in
team member's success. As he
believe that by giving rewards
to the employees then they will
perform in the better manner.
Bill gates have the ability to
think in the different way in
many situation and also with
creative and innovative
manner. And also he has faith
in their own capabilities . He
also has the ability to take risk
as he believe that higher the
risk then it will directly impact
the higher profit. And he has
the ability to listen to other
which make them different
from the managers.
Skills The main skill of Peter Jones
is that critical thinker as he
was fully analysis the situation
and also critically evaluate the
situation and find the correct
The main skills of Bill Gates is
that his positive attitude as he
reacts in the positive manner in
every critical situation and
motivate other to stay positive.
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solution and solve them in
easy manner (Burns, 2016).
And also motivate them to take
the decision in positive manner
without any stress and
negativity.
Motivational drivers The main motivational driver
that motivate Peter Jones is
that he believe that
achievement plays an
important role in motivating
people. As achievement helps
people to work hard and
achieve the goals and objective
of the organisation. As
achievement make the
employees more loyal towards
the organisation and also the
towards the goals and
objectives.
The main motivational driver
is fear and failure as Bill gates
believe that it is very important
for an individual to face failure
as it the source of motivation.
As it motivate individual to put
extra efforts to achieve the
objective and goals of the
organisation. As these make
him different from other
manager.
P6 Entrepreneur personality reflect entrepreneurial motivation and mindset
Entrepreneur mindset – entrepreneur mindset is the mindset in which people think in the positive
manner and also handle each and every situation in the positive manner . And also take risk and
tackle every situation positively.
Types of mindset – there are two type of entrepreneur mindset that is business mindset
and growth mindset. The first one is basically the business minded whose motive is the earn
profit and to be stable the market. And become successful in each and every field. The second
one is growth mindset in which it is very important to handle every situation in the effective way
and always do every efforts for the growth of the business. And also urge for the growth of the
business (Storey, 2016).
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Importance of mind set – it is very important to have entrepreneur mindset as it motivate the
individual and give then new direction to think in the positive manner. And also it is important to
have entrepreneur mindset as it make them think in the critical situation and develop grater
understanding. And also it will help to take high degree of risk and also have the capability to
face failure in positive manner.
Entrepreneur characteristics
Risk taking : the first and foremost entrepreneur characteristic is its risk taking ability as
it is very important for the entrepreneur to take risk in order to become successful. As if he take
high level of risk then he will get high degree of return. As it is the main quality of the
entrepreneur to take risk. A good entrepreneur always take risk in positive manner without any
hesitation (Rudenko and et.al, 2015).
Creativity: the next characteristic of entrepreneur is its creative skills as it is very
important or the entrepreneur to think in the creative manner with creative skills and use its
creative skills to achieve success .
Innovation : the third characteristic of entrepreneur is that he must bring constant
innovation. As entrepreneur are known for their innovation as they are the main source of
innovation (Morris and et.al, 2018).
Situational factor in a personal context-
Cultural differences: it refers to various values , belief and behaviour. If the individual
with low background and help entrepreneur in many ways.
Lifestyle :if the individual wants to improve their lifestyle or standard of belief that it
pursue an individual to become an entrepreneur (McGuirk, Lenihan and Hart, 2015).
LO 4
P7 Background and experiences can hinder or foster entrepreneur
Background of Peter Jones ( local entrepreneur )
Peter Jones was born in 18 March 1966 and he is the British entrepreneur and business
man with interest in phones , television , media and property. He is the investor of BBC
television show. His net worth is £ 435 million. He set up the business in which he made
personal computers under his own brand at the age of 16 year. He faces many struggle and
failure in his life and that make him a successful entrepreneur. And further in his twenties he
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open a cocktail bar which was based on the Tom Cruise film Cocktail. But he faces failure in that
bar also. And also his computer business failed when he was in twenties. Further he founded the
charitable institutional named as Peter John foundation a charity to support the advancement of
education in young women and children. Further more he founded Peter Jones enterprise
Academy in order to teach entrepreneur capabilities with in UK an teach them to start thier start
up and build entrepreneurial capabilities.
Background of Bill Gates (International Entrepreneur)
Bill Gates businessmen and entrepreneur that born on 28,1955 and he ad his partner Paul
Allen founded and built the world's largest software business, Microsoft through technology
innovation and also uses its strategies and aggressive techniques to make him the successful
entrepreneur. As by the tome Bill Gates become the richest person in the world. He is also the
principle founder of Microsoft company. As he faces many hinders but he never gave up and try
his best to achieve success. And also his unique skills and traits motivate many individual to
work in the positive manner. Also in his career at Microsoft Bill Gates has the position of CEO
and also he was the largest individual shareholder. He has excellent command and known his
ability to work in the positive manner and despite all the failure and hinders he has the ability to
overcome them and he emerge as the successful leader and entrepreneur.
Background of Bill Drayton (Social Entrepreneur)
Bill Drayton was born in New york city. He is the social entrepreneur. His motive was to
serve and improve the society to a large extent. Bill Drayton was the founder of Ashoka
Innovators for the public . Also he was the chair person of Youth ventures. Dray ton's philosophy
of social entrepreneur are individual with innovative solution to the society and solving tier
problem in systematic manner. His father was a person of strong value. Bill faces many
difficulties in his life and but he keep motivated himself to work in the systematic manner and
achieve success in his life and serve society to a large extent. He has big vision which motivate
him to achieve this in better manner. His mother was a women leader with morale values (Lee
and Lee, 2015).
CONCLUSION
From the above study which is based on entrepreneurship and small business in which
entrepreneurship means the process of creating a new enterprise or start up. And the people who
start this business is known as entrepreneur. As he is the person who take the overall
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responsibility in the success of the organisation. And also small business plays an important role
in the economy . Further this report has cover different type of entrepreneurial ventures and
typology and also it stated the various similarity and differences between the different ventures.
It has also articulated the impact and importance of small businesses. It has also determine the
skills, characteristic and traits of successful entrepreneur and also it has reflect entrepreneur mind
set and at last it has concluded the background and experiences that hinder or foster
entrepreneurship.
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REFERENCES
Lee, S.M. and Lee, B., 2015. Entrepreneur characteristics and the success of venture exit: an
analysis of single-founder start-ups in the US. International Entrepreneurship and Management
Journal.11(4).pp.891-905.
McGuirk, H., Lenihan, H. and Hart, M., 2015. Measuring the impact of innovative human capital
on small firms’ propensity to innovate. Research Policy. 44(4). pp.965-976.
Morris, M.H and et.al, 2018. Distinguishing Types of Entrepreneurial Ventures: An Identity‐
Based Perspective. Journal of Small Business Management.56(3).pp.453-474.
Rudenko, L and et.al, 2015. Socio-Economic role of service-Sector small business in sustainable
development of the Russian economy. European Research Studies. 18(3).p.223.
Alvarez‐Garrido, E. and Dushnitsky, G., 2016. Are entrepreneurial venture's innovation rates
sensitive to investor complementary assets? Comparing biotech ventures backed by corporate
and independent VCs. Strategic Management Journal.37(5). pp.819-834.
Cowling and et.al, 2015. What really happens to small and medium-sized enterprises in a global
economic recession? UK evidence on sales and job dynamics. International Small Business
Journal.33(5). pp.488-513.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
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