Entrepreneurship and Small Business

This assignment discusses entrepreneurship research, including various types of entrepreneurial ventures and their relationship with typology. It also examines the background and experience of entrepreneurs that can hinder or foster entrepreneurship. Relevant data and statistics are provided to illustrate the impact of micro and small businesses on the economy.

Entrepreneurial and small
business

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ...............................................................................................................................................1
P1 Different types of entrepreneurial ventures and relation to typology of entrepreneurship....1
P2 Similarities and differences between entrepreneurial ventures ............................................2
LO 2 ................................................................................................................................................6
P3 Impact of micro and small business impact on the economy ...............................................6
P4 Importance of small businesses and business start ups to the growth of the social
economy . ...................................................................................................................................7
LO 3.................................................................................................................................................8
P5Characteristics traits, skills and motivational drivers of successful entrepreneurs that make
them differ from business manager.............................................................................................8
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set 9
LO 4 ..............................................................................................................................................11
P7 Background and experience can hinder or foster entrepreneurship.....................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business
which often initially a small business. The people who creates or initiate these type of business
are called entrepreneurs. This report is based on entrepreneurship and small business
management in which it covers different type of entrepreneurial venture and different type of
typology. And also similarities and differences between entrepreneurial ventures. Statically it
illustrates how micro and small business impact on the economy. And the importance and
business start-ups to the growth of the social economy, as small and micro business are very
important in the economy and also they contribute to the growth of the economy. Also, it will
analysis the characteristic traits, skills and motivational drivers of successful entrepreneurs that
are different from other manager. It will also assess how the aspects of entrepreneurial
personality reflects entrepreneurial motivation and mind set. And lastly it will cover all the
relevant examples how background and experience can hinder or foster entrepreneurship(Preuss
and Dyerson, 2017).
LO 1
P1 Different types of entrepreneurial ventures and relation to typology of entrepreneurship
Entrepreneur is a person who sets up a business and take all kind of risk and reward of
the venture. He is the one who organize and manage the business venture and make relevant
profit.
Entrepreneurship is the process of designing, launching, running a business or venture
which often a small business (Kirzner, 2015).
Entrepreneurial ventures
Small entrepreneurial ventures – These are the venture which are independently owned
and operate for profit enterprise. Its main objective is to grow into long term business that is
profitability and sustainability with possible sales. The capital providers for small entrepreneurial
ventures are micro loans, bank loans, friends, family and personal funds. For example, funeral
care.
Large entrepreneurial ventures- This is the venture which are more complex in nature and
have more number of employees than the small venture. They have great numbers of business
daily. For example, NHS

Public entrepreneurial ventures- This is the venture which are owed and control by the
government. And which can have sold all or the portion of itself to the public by initial public
offering and also trade its stock on at least one stock exchange. For example NHS
Private entrepreneurial venture – This ventures are owned by a group of individual with no
intervention of government. And whose shares are not offered to the public for sale and also has
less legal requirement than public ventures. For example Facebook.
Typology of Entrepreneurship
Social Firm : Social firm are the business which main motive is created to employ people
which have a disability. Its main motive of social firm is to serve the society and fulfil the needs
of the society.
Manage growth Firms : A growth firm are the company which grow faster that its peers.
This firm. These firm generally have increased annual revenue. And also has the ability to scale
up their business rapidly.
Lifestyle Firms : Lifestyle firms are those venture which provide a reasonable lifestyle
for their living. They are not focus on increasing profit and incurring risk which come from high
growth.
Public sector entrepreneurship- This sector is managed and owned by the government. And
shares are sale to the public by the initial public offering and also it must be listed on the stock
exchange (Dees, 2017).
P2 Similarities and differences between entrepreneurial ventures
There is difference between social enterprise , manage growth firm ,lifestyle firm and
public sector entrepreneur and also below it has stated the similarities between the firm.
Social Enterprise
Cancer Research
Manage growth
Firm
Tesco
Lifestyle firm
Zara
Public sector
entrepreneurial
NHS
Annual growth
rate
The growth rate
rise by 2% in the
UK between 2014
and 2035,to 742
The company
average growth of
33.18% year on
year, to 40.51
Zara is the
leading fashion
industry which
has rapid growth
The annual
growth in per
spending was
about 3.3%.

cases per 100,000
people by 2035.
million. with 563 stores
and sales soared
41% in 2017 to
10% of the brand
total.
Time Horizon Cancer research
was founded in 4
February 2002.
Tesco was
founded in 1919
as 100 years ago.
Zara was found in
1975 as 44 year
ago.
NHS was found
in 1948.
Managerial focus Managerial focus
is to serve the
society and
reduce the
number of deaths
from cancer.
Managerial focus
is to increase the
profit and became
the largest retailer
in the world.
Managerial focus
is to increase the
sales and expand
the brand in many
countries.
Managerial focus
to serve advance
health care
services.
Managerial style The managerial
style use is
democratic style
in which each and
every member has
the liberty to
share the ideas.
And also it
improves the
decision making
of the company.
The managerial
style use is
Inspirational
management style
it is the most
effective style
required superb
people skills, big
heart and honest
desire.
The managerial
style use is
Laissez – Faire
management style
in which the
leader delegate
the responsibility
to the employees
and employees
take the important
decisions.
The managerial
style use by NHS
manager is
Autocratic in
which all the
important
decision are being
taken by the
manager.
Entrepreneur
orientation
The entrepreneur
orientation is
Autonomy in
which team
individuals with
Entrepreneur
orientation is
Competitive
Aggressiveness in
which it directly
Entrepreneur
orientation is
innovativeness as
it is the tendency
to pursue
NHS orientation
is risk taking as if
the organisation
take more risk
than return will be

an organisation
has the freedom
to develop an
entrepreneurial
idea. In these
people come with
innovative ideas.
challenges
competitor rather
than trying to
avoid them. It
includes price
cutting and
increasing
spending on
marketing .
creativity and
experimentation.
And it helps Zara
to run in long
term basis .
higher.
Managerial skills Managerial skills
used by the
manager is
effective
communication
so that there will
be free flow of
ideas.
Managerial skills
Tesco manager's
used is planning,
as planning is a
vital aspect within
an organisation
and it gives right
direction.
Managerial skills
used by the
manager is
effective decision
making as it
increase the
decision making
power of the
business.
Managerial skills
use by NHS
motivation as it
motivate the
employees so that
it increases the
efficiency of the
organisation.
Technology
investment
The charity spend
£644 m over the
past year, up from
£540.1 m in
previous year.
Exit approach It follows selling
to a friendly
buyer. This will
require less due
diligence.
It follows
liquidation as it
simply to call it
quits , close the
business doors
and call it a day.
As it is very easy
It follows
acquisition, as it
is one of the most
common exit
strategies (Burns,
2016).
It also follows to
a selling to a
friendly buyer
which is one of
the effective
methods .

method.
Source of finance It raises money
through donation,
legacies,
community
fundraising event,
retail and
corporate
partnership.
It raises money
from the
government and
other charitable
events.
Organisation
structure
Cancer research
follow
administrative
structure which
include a specific
level of
regularization .
Tesco follow flat
structure where
there is direct
communication
and no hierarchy
system (Li and
Rama, 2015).
Zara follow flat
structure as it has
no level and it
provides effective
communication.
NHS follow tall
structure as it has
many layers of
hierarchy and
public company
follow flat
structure which
become very
easy.
Economic
motives
Economic motive
is to earn
sustainable profit
which will be
invested back in
the organisation.
Economic motive
is to expand the
business
Economic motive
is to become
leading fashion
industry with
higher profit.
The motive is to
provide health
care services to
the society.
Rewards It uses motivation
as it motivates the
worker to do their
best.
It uses money as
money
It uses control It uses flexibility .
As there will be
flexible working
hours
Similarities

Though the enterprise are different in term of size and goals but they also have certain
similarities. The above all companies are operated with the motive to earn profit and also they all
are concentrate upon on innovation and also all understand the need and want of the customers
and all the company impact in positive manner and serve the society to the large extent and
provide quality services to their customers. The above four firms are highly creative as they all
known for their creative ideas and also they are the major source of creative ideas. And also they
all are innovates themselves at timely bases. And the driving forces of all the firm is to attain
sustainable profit and to have growth.
LO 2
P3 Impact of micro and small business impact on the economy
Micro Business – micro business are the business which are very small in nature and operate at
small level. It has number of employees below 25. but micro business are known for their
creative skills .
Small business – small business are the business which are the main source of innovation. And
also have more than 100 employees . They have sustainable growth. And play a major role in the
growth of the economy
Micro businesses are the backbone of the UK economy and make vital impact on the
country's economy. In small and medium enterprise have less than 250 employees. Micro and
small business create the job opportunity, improve the standard of living, encourage self-giving
opportunities, lowering the cost and also it encourages start up. Micro and small business
represent 99.9% business of UK. Also, they impact the economy by contributing in GDP growth
and by giving job opportunities in huge amount. As it generates 46% of revenue which come
from Micro and small business. It has turnover of 1.6 trillion euros and also they employ over
24.3 million people in UK as most of the local people are depended upon the macro and small
business. There are 5.3 million enterprises in UK (Anggadwita and Dhewanto, 2016).

Job creation
According to the research micro and small business are the one of the top source of job
creation in economy of UK. As micro and small business are promoted labour instead of capital
and machinery. In UK there are around more than 370000 jobs are created from micro and small
enterprise. As this type of business give opportunity to the people and encourage them for start-
ups (Belás and et.al, 2015).
Women Empowering
Micro and small business encourage women to become independent and earn money and
encourage them to became the entrepreneur. Also, it gives women many facilities and develop
overall economy by empowering women.
Contribution to innovation
One of the major part of macro and small business is innovation. As they come with the
best innovative ideas. It produces innovative solution to launch new products and services.
Innovation is considered as the pillar of micro and small business.
Hence, micro and small business impact the economy in the positive manner and help the
economy by contributing to the GDP and also contribute in development of tourism in the
country (Shibia and Barako, 2017).
P4 Importance of small businesses and business start-ups to the growth of the social economy
Social economy – it is basically a term which is formed by a rich diversity of enterprise and
organisation. It consist of vast factor in the society . As small businesses and business start plays
an important role in the growth of the social economy.

As small businesses and business start-ups are contributed in the growth of the economy
to the large extent. A small business is recognized as organisation with fewer than 500 workers .
They have significance in contributing in the development of the economy. The small business
generally have the higher potential to attract the investor and influence them to invest in it. It also
helps to generate the employment as it concentrates on the labour not the capital. It encourages
people for the business start-up. The growth of small business is very crucial in context of social
development. It also encourages the people to improve their standard of living and live life with
all the comfort. As these firm main tool is innovation which help people to fulfil the needs and
wants of the people and work accordingly. Micro firm contributes to average of 20 % of new
jobs each year. Small business finds themselves at the front line of making adjustments to keeps
customers satisfied as well as happy (Bharati and Chaudhury, 2015).
Small business is making so many efforts in improving their services which are delivered
to people. The revenue earns by small business are 46 % and that revenue are again utilized to
develop and serve the society. Small business also support big companies in maintaining the
balance between the demand and supply. As small business has direct contact with the customers
so they provide information about the need and want of the customers. It will help big company
to effectively utilize the resources and helps in generating sales of the company. Some small
business also provide training to the people so that it helps in enhancing the skills of workers and
also it assists them in development of the skills and core competencies that will benefit in
improving their personality. And also by the help of innovative ideas small business increase the
living standard of the people and also change their way of thinking.
Hence, small business help the society to the large extent. And play a great role in
developing the country and its GDP. And also are the first preferences of the customers as they
provide high quality product and services in low prices (Page and Söderbom, 2015).
Small business are also tended to consider as the source of innovation which comes with
the innovative ideas with the help of start ups and attract many customers.
Also, they are the source of employment and encourage people to work with other people
and respect other culture of people.

LO 3
P5Characteristics traits, skills and motivational drivers of successful entrepreneurs that make
them differ from business manager
Entrepreneur mind set are the mind set which help individual to think in a more innovative and
creative way . And also it brings many opportunities and growth to the individual.
Characteristic of entrepreneur mind set
Positive mind set – the first and foremost characteristic is that it must be positive and think in the
positive manner so that it will successful in every field (Ellis and Bosworth, 2015).
Creative mind set – the second characteristic is that it should be creative and innovative . And
think in the innovative manner so that it achieve growth in business .
There are some traits and skills which successful entrepreneur possess.
Basis Richard Branson Jackson Cole Jon Penn
Traits This successful entrepreneur
has the ability to think
differently which make them
differ from business manager.
They also have the ability and
willingness to learn and listen.
Cecil Jackson Cole
possess some
characteristics traits
which made them
successful social
entrepreneur such as
integrity and care
towards all type of
people.
This entrepreneur has
some skills and
characteristics traits
that make them
successful and differ
from business manager
such as openness and
fairness. They believe
in fairness and equality.
They show their respect
towards employees and
all type of people.
Skills The main skill which make
them differ from business
The main skill which
made Jackson Cole
Jon Penn posses some
skills such as sincerity

manager is critical thinking
skills. They know that in
which situations they have to
remain calm.
successful
entrepreneur is
devotion. They do
their work with
dedication and full
devotion. This skill is
very important to
become a successful in
personal life as well as
in professional life.
and self control in their
work. Self control play
a vital role that helps
them to control their
behaviours and feeling
for making good
decisions.
Motivational
drivers
The main and important
motivation driver of Richard
Branson is fear and failure.
They believe that fear and
failure are the best motivators.
Failure motivates a person
towards success. He believes
that when a person becomes
fail then he puts extra efforts
in order to achieve success.
This quality and motivational
drives makes them able to
being different from others.
The best motivational
driver of this
successful
entrepreneur is
independence and self
esteem. He believes
that independence can
make a person
successful. This driver
of motivation made
them successful and
differ from other
businessman.
The best motivation
driver of Jon Penn who
motivated them in an
effective manner is
achievement. They
believe that after
achievement is an
important motivator
that boosts a person to
achieve something
more.
P6 To Assess the aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set
Assess aspects of personal entrepreneurial tendency:
Entrepreneurial characteristics:-

Risk taking: It is a very important characteristic for an entrepreneur. If an entrepreneur
wants to achieve success than they have to ability to take risk. It involves lots of things such as
unorthodox method is used, investing in ideas etc. but a good entrepreneur is also ready to take
risk and uses differentiate approaches to overcome the risk (Preuss and Dyerson, 2017).
Creativity: Creativity means give birth to new things. Entrepreneurs have a lot of ideas
that implements. It is not necessary that every idea provides success but the experience is
obtained that is gold for the entrepreneur. It helps to bring new solutions for the current
problems. It also gives abilities to the entrepreneur to devise innovative products for similar
market that they current target.
Passionate: Entrepreneur work is their passion. So, when they work they enjoyed as well
as stay motivated. It is a drive force that motivates to strive for better. It is also enhanced
entrepreneur abilities towards putting their extra hours and efforts.
Forward looking: The entrepreneur have to ability to anticipate trends, future challenges
for organisation as well as opportunities.
An open mindedness towards learning, people and failure: An entrepreneur is also
required to be open minded such as faced failure with a positive attitude and try till entrepreneur
successful. Failure is a step that provides learning experience to the entrepreneur. It also provides
new ideas towards particular aspects. Open-minded is helps to know and learn from their
competitors.
Invest in themselves on all levels: The entrepreneur always needs to grow their skills
and abilities, prepare themselves mentally as well as physically. It is an essential activity for an
entrepreneur.
Situational factors in a personal context:-
Family upbringing: The person has some responsibility towards their family. Their
needs, education, requirements and various commitments towards their family that makes the
mindset to do business and become an entrepreneur and make able to fulfil their commitments
because is not fulfilled by jobs.
Lifestyle: If the individual want to improve their lifestyle and fulfil their requirement and
they have to passionate for achieving that helps to make an individual to become an entrepreneur
and start their own business and improve their lifestyle.

Cultural differences: It means various beliefs, languages, behaviours, expressions and
practices that separated the individual of specific race, national origin and ethnicity. It an
individual belongs to low background and they want to make their image that helps to bring as
entrepreneur to an individual and create image beyond the cultural differences (Cumming and
Zahra, 2016).
Personal motivation and drives: Individuals personal drives are numerous and they
have to willingness to fulfil their drives. Drives are often the starting point for motivation and
that helps to individual to focus on specific goals that helps to fulfil their personal drives. It
crates the mindset to become an entrepreneur.
The big five traits theory:-
This theory is based on OCEAN personality dimension that defines the quality of the
leaders to become a successful entrepreneur.
Openness: It includes traits that having wide variety of interests, imaginative and being
insightful that helps to individual to become an entrepreneur. For example, Bills gates have all
the traits of openness such as their vision is so imaginative no one can think that technology can
be present in a small chip that they introduce.
Conscientiousness: It includes trait like being organized, thorough and methodic that is
needed to become an entrepreneur. Every entrepreneur is organized for becoming successful in
their life.
Extroversion: Traits include energetic, assertive and talkative that helps to an
entrepreneur in achieving success (Wright and et.al.,2016).
Agreeableness: Traits include kind, sympathetic and affectionate. These individuals are
cooperative, compassionate and friendly. The entrepreneur behaves friendly with their
employees as well as outsiders that helps to provide growth and opportunities to the business.
Neuroticism: It is an emotional stability that includes being tense and moody. Low score of
neuroticism is good for becoming an entrepreneur.
LO 4
P7 Background and experience can hinder or foster entrepreneurship.
People's background can be hinder and foster that is depended on some experience such
as poverty that can make a leader very strong to come out with the poverty and that enhance their

willingness to become a successful leader. Unemployment and School drop out, it creates hinder
to become a successful because as an unemployment individual they have faced various ups and
downs in their life and they flustered from the life that effect negative on leader's life.
Background of Richard Branson of an international entrepreneur
Richard Branson is an investor, English business magnate, philanthropist and author. He
is a founder of the Virgin group that control 400 plus companies. He has strong desire to became
an entrepreneur at young age. His first business venture was a magazine(student) at the age of 16
that he set up their own email order record business. Further more, they opened a chain of record
stores that named virgin megastores. The brand was rapidly grown when he set up Virgin
Atlantic airline and they become a successful entrepreneur. In their first business venture they
faced failure and impact negatively on their entrepreneurship but when he set up email order
record business when their success was begun. It impacts positively on their
entrepreneurship(Ellis and Bosworth, 2015).
Background of Cecil Jackson Cole of a social entrepreneur
Cecil Jackson Cole was an entrepreneur and humanitarian who was associated with
various charitable organisation such as Oxfam, Action-aid and help the aged etc. he was the co-
founder of the Oxford committee for famine relief which became the largest charitable trust in
British. He was completed their education from balliol college, oxford at the age of 28 as
external student to study on economics. He became a successful entrepreneur when he owner of
Andrews furnishers in London. Their business was positively impacted to their entrepreneurship
and in present their shops used for charity work. They got education with good college as well as
they did not face situation of poverty and school drops.
Background of Jon of local entrepreneur
Jon is a co-founder and director of Spinning hat. It is London based company that design
gifts and toys and also print t-shirts with design that is chosen by the members of online
community. His first success came when he designed bottle spy. Bottle spy is a bottle opener
with electronic dial. This impact positively on the success of Jon as entrepreneur. Jon won eco-
friendly gift of the year award in 2018 and from there the success is begun. He is come from
poverty and faced many ups and downs in their life for achieving this position(Elgharbawy and
Abdel-Kader, 2016).

CONCLUSION
From the above study it has been concluded that entrepreneur is played an important role
in order to achieving success in the organisation. It has been explained different type of
entrepreneurial ventures and their relation with typology of entrepreneurship. It has been
interpreted relevant data and statistics for illustrating the micro and small businesses impact on
economy. Furthermore, it has been described the background and experience of the entrepreneur
that can be relate to hinder and foster entrepreneurship.

REFERENCES
Preuss, L. and Dyerson, R., 2017. The nexus of innovation, entrepreneurship and sustainability:
making the case for a multi-level approach............................... Royal Holloway University
of London, UK. In Entrepreneurship, Innovation and Sustainability (pp. 22-41).
Routledge.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management.27(4). pp.687-692.
Wright and et.al.,2016. Family business entrepreneurship.
Ellis, V. and Bosworth, G., 2015. Supporting rural entrepreneurship in the UK microbrewery
sector. British Food Journal.117(11).pp.2724-2738.
Elgharbawy, A. and Abdel-Kader, M., 2016. Does compliance with corporate governance code
hinder corporate entrepreneurship? Evidence from the UK. Corporate Governance.16(4).
pp.765-784.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Li, Y. and Rama, M., 2015. Firm dynamics, productivity growth, and job creation in developing
countries: The role of micro-and small enterprises. The World Bank Research
Observer.30(1). pp.3-38.
Anggadwita, G. and Dhewanto, W., 2016. The influence of personal attitude and social
perception on women entrepreneurial intentions in micro and small enterprises in
Indonesia. International Journal of Entrepreneurship and Small Business.27(2-3). pp.131-
148.
Shibia, A. G. and Barako, D. G., 2017. Determinants of micro and small enterprises growth in
Kenya. Journal of Small Business and Enterprise Development.24(1). pp.105-118.
Bharati, P. and Chaudhury, A., 2015. Current status of technology adoption: Micro, small and
medium manufacturing firms in Boston. Bharati, P. and Chaudhury, A.(2006),“Current
Status of Technology Adoption: Micro, Small and Medium Manufacturing Firms in
Boston”, Communications of the ACM.49(10). pp.88-93.

Belás, J and et.al, 2015. Risk perception differences between micro-, small and medium
enterprises. Journal of International Studies.
Page, J. and Söderbom, M., 2015. Is small beautiful? Small enterprise, aid and employment in
Africa. African Development Review.27(S1). pp.44-55.
Gross, R., 2016. The Impact of Leadership Styles on Employee Entrepreneurial Orientation and
Innovative Behavior: A Comparative Analysis of American and Indian Immigrant
Entrepreneurs (Doctoral dissertation, Regent University).
King, I. R., 2017. Organization Sustainability Strategies among Small Nonprofit Organizations
in Metropolitan Atlanta.