Entrepreneurship and Small Business Management

The provided report covers various aspects of entrepreneurship and small business management. It emphasizes the importance of essential qualities in entrepreneurs, different types of ventures, and their contributions to a country's financial status and economy. The report also explores entrepreneurial factors that can help eliminate hindrances to successful businesses.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Examining different types of entrepreneurial ventures and their relation with typology of
entrepreneurship..........................................................................................................................3
P2. Similarities and differences between entrepreneurial ventures............................................5
P3. Relevant data and statistics to illustrate the ways of small business impact on the
economy......................................................................................................................................6
P4. The importance of small businesses and business start-ups to the growth of the social
economy......................................................................................................................................7
TASK 2............................................................................................................................................9
P5. Determination of the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers.......................................................................9
P6. The ways through which aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mindset.............................................................................................................10
P7 The way in which background and experience can foster entrepreneurship.......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurs are the business persons who are engaged themselves in the business
activities so that they can earn profit (Entrepreneurship. 2019). These person plays an important
role in the development of a business and the economy. Every economy built by entering the
new business ventures in that region. Apart from that, there are various small and medium sized
enterprises within UK which are helping the country to build its economy (Barringer, 2015).
These entrepreneurship activities also provides a larger number of job opportunities to the locals.
This assignment is based on exploring and illustrating the range of venture types which can be
considered as entrepreneurial. The impact of these business activities on economy is also
discussed in this report. Key aspects of successful entrepreneurial mindset is assessed and
determined so as to provide a succession path to the young entrepreneurs. In the end,
examination of different factors which foster and hinder the entrepreneurship activities is done.
TASK 1
P1. Examining different types of entrepreneurial ventures and their relation with typology of
entrepreneurship.
There are various kinds of entrepreneurial ventures which are helpful for both society and
the economy. These ventures are operated by the entrepreneurs so as to gain the profit. Their
values for the society and economy allow the economist to divide these ventures into different
groups. These groups are divided on the basis of net worth, number of employees, revenue
generation etc. They have different size and scope which allow them to define their purpose also.
There are two key terms within a business such as entrepreneurs and intrapreneurs.
Entrepreneurs are the persons who starts a business and take risks in order to gain profit while
intrapreneurs are the manager who promotes the innovative ideas of a company in market.
There are various kinds of entrepreneurship activities which are linked together to make
business successful (Baum, Frese and Baron, 2014). An entrepreneur should act according to
the trends of market. For example, it should purchase the raw material and sell their goods when
demand of their product is high in market. This will provide them a huge area of margin so as to
run the business smoothly.
Following are the different types of entrepreneurial ventures based in UK.
Small business entrepreneurship

These are the business activities which have limits in the capital investment, employees,
size and scope of operations. This type of business venture allow the region to develop by
providing a large number of job opportunities for the locals. These business ventures mostly
started with partnership and sole proprietorship. These business activities cannot operate with
more than 50 employees and net worth of €2 million. Therefore it can be said that these business
types have limits in their activities. Such companies include Orion electrotech limited, Clarasys
etc.
Large company entrepreneurship
These business ventures have no limits in their operations, size, scope number of
employees etc. These organizations have a large scale of production of goods an services to the
customers. Sometimes these organizations not only operates in home country but also operates
globally and expands their business. In order to run the business successfully, these organizations
requires a large amount of resources (Bridge and O'Neill, 2012). These firms sustain their
operations globally by many years because they are dealing in adopting the changes within the
needs and requirements of customers. These organizations include such as Tesco, M&S etc.
Social entrepreneurship
These types of business activities are running in order to make the welfare of society.
These activities allow them to make new and innovative ideas which are helpful for the
upliftment of customers. The main motive of these business are to provide better living
opportunities to the locals rather than making profits. Although these organization run locally but
still they contributes a large in the development of economy. These organizations include NHS,
Save the children etc.
Typology of entrepreneurship
Entrepreneurship ventures have different entrepreneurship typologies which are linked
together to make the business effective. Following are the typology of entrepreneurship.
Lifestyle Enterprise
These types of enterprises are operated in order to increase the living standard of society.
These business activities not only supports their revenue generations but also provide effective
services to the customers within that region.
Growth firms

These types of firms are different from the lifestyle firms. In growth firms, the
entrepreneurs are more focused on increasing their revenue and growth. These entrepreneurs
always tries to improve the ways through which an organization can achieve higher productivity
and profitability (Carsrud and Brännback, 2011). These organizations always try to meet the
needs and demands of the business so as to gain the maximum outcome of their products and
services.
P2. Similarities and differences between entrepreneurial ventures.
Following are the difference and similarities between entrepreneurial ventures.
Difference
Basis Small business Large company Social
entrepreneurship
Definition These types of
business have limits in
their activities
including small
investment, fewer
labour etc.
These organizations
have no limits and
they also operates
globally. They also
requires a large
amount of resources in
order to complete the
product and services.
These organizations
are formed to help the
society. The main
focus of these
organization is two
make the welfare of
society.
Characteristics A less number of
resources are required
by these organisation
so as to run their
business activities.
These organizations
changes according to
the changing needs
and demands of
customers.
These organizations
have funding from the
government and other
financial institutions.
That is why these
organizations can avail
the resources easily.
Similarities
The biggest similarity between all of these ventures is that they want to increase their
name and fame less time as much as possible (Dees, 2017). Apart from that, all of these ventures
are eagerly looking to satisfy all needs and demands of customers as much as possible. The

objective of these organizations is to look forward to bring the new and innovative ideas in
satisfying the customers needs.
P3. Relevant data and statistics to illustrate the ways of small business impact on the economy.
Small business within UK can be identified which have less than 50 employees within
their premise and having annual turnover less than £2 million. These types of organizations have
a great impact over the economy of UK. They brings job opportunities, allow new and
innovative technology to the surface and also give boost to the economy of UK. These types of
business ventures requires to have less than £1.5 million capital to start a business (Djankov and
et. al., 2010). Out of all of the business within UK, most of the operating business within UK are
of small and medium size organizations. These organizations have played a big role in the
development of economy of UK. These types of organisation provides tax to the government of
UK and thus increases the total revenue of government. Apart from that, it indirectly impact in
increasing the national income of the country so as to provide effective lifestyle of the society.
These taxes can also be utilized by the government to enhance the industrial growth within the
country. They can also provide different schemes to the poor section of society in order to
improve their living standard. Since these organizations are new to the technology therefore they
brings new and innovative ideas so as to gain competitive advantage. This competition among
the industries allow the customers to satisfy their needs and demands in a cheaper rate. In
addition to these benefits, the impact of small business to the economy of UK are given below:
Employment Generation
Each and every organization requires human resource in order to accomplish the common
tasks. In order to hire the human resources the organizations shave to choose the locals of UK
which are suitable for the specified job. These jobs will be beneficial for all of them so that they
can earn for them and their families. Therefore reducing the unemployment within UK.
High Flow of Cash
With the help of these small organizations, the per capital income of every individual
within UK increases. The organizations also provide taxes to the government which are helpful
or them to gain new and advanced schemes which are helpful for their welfare. These schemes
some how enhances the cash flow and thus increasing the cash among the citizens.
Infrastructure development

All of the organizations within UK are liable to engage themselves within the CSR
activities. These activities includes building of roads, parks, schools etc. When small and
medium organizations are acting within UK, they will also involve within CSR activities. Thus
increasing the development of infrastructure.
According to the above graph it can be concluded that SME are helpful in UK to decrease
the unemployment rate (George and Bock, 2011). As per the venture types according to their
size, different organizations are providing employment to the citizens as per their capabilities.
Therefore decreasing the unemployment rate.
P4. The importance of small businesses and business start-ups to the growth of the social
economy
Small business are necessary fro any country to expand their feet in global market. Each
and every company when starts requires to have small funds so that they can establish
themselves slowly in the market. These industries provide tax to the government and thus
increasing the revenue. Apart from that, these organizations also help the country and society to

provide employment to the local citizens and hence increasing their life style. Earning are
necessary for any citizen so as to survive itself and fulfilling its basic needs. These earning can
be managed with the help of small organizations by providing employment opportunities for the
local citizens. This will help the locals to increase their living standard and develop their future
also (Karlan and Valdivia, 2011). These types of business ventures are very important for the
development of societal activities. Therefore the importance of small business and business start-
ups is shown below in the context of societal improvement.
Employment opportunity
When a small organizations establish itself in the competitive market, it requires human
resources so as to complete their tasks. This requirement help the citizens to have better
employment opportunity for them. Increasing the small organizations provides options for the
citizens to choose better opportunity for enhancing their careers. Therefore improving the life
style of citizens within UK.
Innovation
Each and every organization requires new ideas so that they can sustain themselves in the
competitive market. This will help the companies to bring innovation among them and making
their policies accordingly. These innovative ideas help the organizations to grow at a fast speed.
Therefore increasing the revenue of the government.
Societal status
With the help of increasing the number of small enterprises, the standards of thought also
increases. The enterprises brings new and innovative ideas and thus increasing their thoughts
capacity. This capacity will be identified globally and thus increases the societal status of
organizations (Martin, McNally and Kay, 2013).
Sustainability
Small business enterprises always tries to sustain themselves among the rivals. This will
help them to provide cheaper products to the customers, maintaining the healthy environment
etc. All these activities allow the company to have sustainable products and services. This will
help the citizens to keep in the same organization having sustainability.
Although large business also help the country to have bigger amount of taxation,
employment etc. but still small organizations found it to be more consist in taxation. Larger

organizations are not so much in numbers that is why they have a greater impact on the economy
of having negative policies.
TASK 2
Covered in PPT
CONCLUSION
In this report, it can be concluded that, entrepreneurs should have some of the essential
qualities which can help it in making a business successful. In this report, different types of
ventures help in identifying the nature of its operations. Apart from that, these small business
help the country to develop its financial status and economy also. There are various aspects of
entrepreneurs also which help them to develop their skills to make a business successful. In the
end, different entrepreneurial factors are also discussed which are helpful in eliminating the
hindrance of successful business.

REFERENCES
Books and Journals
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Baum, J. R., Frese, M. and Baron, R. A. Eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Djankov, S., and et. al., 2010. The effect of corporate taxes on investment and entrepreneurship.
American Economic Journal: Macroeconomics. 2(3). pp.31-64.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and statistics. 93(2). pp.510-
527.
Martin, B. C., McNally, J. J. and Kay, M. J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Online
Entrepreneurship. 2019. [Online]. Available
through:<https://www.investopedia.com/terms/e/entrepreneur.asp>