Entrepreneurship and Small Business Management - Assignment (solved))

Entrepreneurship
and
Small Business
Management

INTRODUCTION
Entrepreneurship is defined as an act of creating a business while building and scaling it
to generate a profit in competitive business environment. It is the process of creating a new
business enterprise and bearing out risk with the aim of making profit (Ateljevic and Page,
2017). This is an act of seeking out investment process and production opportunity in developing
and managing a business venture along with innovation or new ideas. It is commonly seen an
entrepreneur as an innovator, source of new idea, goods and services and business in competitive
business. Herein, in this assignment is going to describe type of entrepreneurial venture as well
as its relationship with different typology along with the difference between entrepreneur
ventures. Moreover, assessing how small and micro business are impacting on the economy and
its importance towards the growth of the social economy. Apart from this, determining traits and
skills of successful entrepreneur that differentiate themselves from other business operators.
Evaluating how entrepreneur personality reflecting entrepreneurial motivation and mindset by
using relevant examples and background or experience that may create short comings in
entrepreneurship in competitive marketplace.
TASK 1
P1
Entrepreneurship is a process of launching business or running a business enterprise
which consist of risk in it. It have major role in operating business function or activities within
an economy(Belz and Binder, 2017). While operating in a particular venture it necessary to
analyse market demand with different opportunities which help to sustain in competitive
marketplace. For such instance its important for entrepreneur to have different ideas and thoughts
of new innovation and ideas so that they grab out numerous opportunities as well as have proper
control over economic and social life. In business context different types of entrepreneurial
venture that are discussed below:
Small business entrepreneurial : This business venture refers to small and medium sized
venture as they are assisting with welfare services or else work towards benefit of the society
and economy. Entrepreneurial venture mainly focuses on proving best product and services
which create beneficial for general people. Moreover, the main motive of this type of business is
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to earn profit as well as provide beneficial product and services that create beneficial within
society.
For example: Funeral Care, a social welfare organisation which is working towards the
funeral services so that need people have proper ceremony. As there are many people who do
not have families or dose not have so much that they can have proper funeral ceremony for their
beloved ones.
Large business entrepreneurial : This organisation consist of longer cycle period as most of
them develop with new innovation and ideas so that they can offer their product accordingly.
(Bennett, 2014). This type of entrepreneur venture main motive to have profitability so that they
have high number of competition as well as work for the benefit of the society in larger context.
towards welfare of the society in large context.
For example: National Health Services (NHS), a publically funded organisation who are
operating at large scale business function and operation as well as providing services to the poor
and needy people. Its main aim to provide their services at low or minimum cost to the needy
ones so that they can stability in their health.
High growth business entrepreneurship: This type of entrepreneurial venture refers to those
type of organisation who are operating their business and function at high level. The motive of
this type of venture is to remain competitive marketplace with huge amount of profit margin
along with good brand name.
For example: Google, it is one of the largest information sharing organisation at world
wide. It is earning high efficiency, productivity and profitability in competitive marketplace.
Typology on Entrepreneurship
Survival firms: This firms are those firms which are surviving in marketplace in order
to have name in same industry line. It is nor focus on earning profit or having motive of earning
profit by serving good quality of product and services.
Managed growth firms: Managed growth firms are defined as those business enterprise
who's main motive is to focus on generating profit. This is can be done only if they are bale to
minimise their risk factor as this firms are usually risk takers.
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Public sector entrepreneurship: This type of business refers to public initiatives which
are mostly concerned with the economy. They are contribution more towards economy by
coming up with new ideas and innovation with the increasing demand and wants of customer's.
Lifestyles firms: This type of enterprise are mainly focusing on creating an unique
lifestyle with high level of income in competitive marketplace. Herein, the main aim is to earn
profit and have competition in marketplace.
Aggressive growth firms: This firms refers to those entrepreneur who wants to have
huge amount of productivity and profitability within shorter duration of time.
Social enterprise: Social Enterprise are those firms which are focusing on working
towards the beneficial of the society. They are focusing on benefiting or fulfilling the needs and
demands of customers rather that earning profit. Hence, the amount is fully utilised in benefiting
the need and poor people.
Relationship with business typology:
Business Venture Organisation Sector Relationship with
typology
Small size business
entrepreneurial
Funeral Care Public Sector It relationship is to
survive in the marketplace
as their aim is not to earn
profit
Large size social
entrepreneurial
National Health
Services
Public sector This refers to typology
that refers to maintain life
style of poor and needy
people.
High Growth business
entrepreneurial
Google Private sector This refers to typology
that are used in aggressive
growth of firms.
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P2
In context to business environment there are various types of business ventures who are
operating for the purpose of earning profit. Apart from this there are m,any entrepreneurial
venture who are working towards the welfare society(Burns and Dewhurst,2016).
Hence each and every organisation have some of the similarities that consist among different
types of entrepreneur are determined below:
 There are many organisation exist in competitive marketplace as they want to survive for
with their product as well as services for longer time period.
 Every organisation have similarities that they want to satisfy their customer from their
product and services that are being offered by them.
 Moreover, an organisation can survive in competitive marketplace only if they are
coming up with innovative offerings to satisfy their customer's
Hence these are few of the similarities among the entrepreneur while operating their business
function and business in competitive marketplace.
Difference among different types of business enterprise which are discussed below:
Basis Survival firms Life Style Managed growth Aggressive
growth
Time Horizons The time
horizons of this
business firm is
stay in
competitive
marketplace for
longer duration of
time.
In case of
lifestyles the time
horizon depends
upon the status
and income of
business
This type of
business are
mainly depend
von managing
their product and
services and their
business function
for longer
duration of time.
Herein, in case of
this firms they
are already well
established as
well as more
sustainability for
longer duartion of
time.
Aims and
objectives
It main motive is
to survive in
marketplace
without any
It focus on the
needs and wants
of customer's as
their needs and
If main factor is
to minimise risk
from its business
operation and
Its motive is to
earn profitability
with large number
of competition in
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reason. demand function so that
they can earn
profit and fulfil
their aims and
objectives.
competitive
marketplace of
same industry
line.
Leadership style In this type of
business
autocratic style of
leadership is
adopted
Democratic style
of leader is
maintained in life
style business
venture
Laissez-faire style
is being adopted
in this case of
business venture.
Transaction style
of leadership is
adopted in
maintaing
business activities
competitive in
nature.
Technological
investment
No investment is
made on nay kind
of technological
aspects
In this case
investment is
made as per the
needs and
demand of
customer's.
In this type of
business
investment is
made for
managing
growths of the
firms.
Where in this
case a huge
amount of
investment is
needed in order
to maintain
sustainability in
competitive
marketplace.
TASK 2
P3
The competitive marketplace consist of different business which are functioning
competitive marketplace of same industry line to have profitability and sustainability in
competitive business environment. Small business are those business who are operating and
small scale and profit margin with less manpower within competitive business environment.
Where as macro business environment are refers to those business who are operating with less
that employees and workers(Burrows, 2015). Though micro business basically creates wider
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range of varieties of opportunities so that need people can have high employment facilities so
that they can improve their living standard as well as maintain their livelihood of their day to
day needs. The main motive of macro business is to earn profit as well as increase their
business proficiency and work out towards the welfare of the society. Where as small scale
business entrepreneurship are working towards the welfare of the whole economy as well as
utilise their profits in an effective manner. It is defining huge impact in bring out new
innovation and ideas that are necessary to remain competitive in marketplace. It will help an
organisation to increase living standard of people as well as providing employment to need ones
so that they can earn their daily needs.
After the case of Brexit, When United Kingdom disables their Kingdom into different
parts along with that relationship of European economy. Though this many organisation and
business function were effected and it become difficult in creating values of currency that got
declined in cases of Brexit. Where as at the time of both micro and small business were fully
supported by the government of United Kingdom in operating out their business function and
activities(Chell and Karataş-Özkan, 2014). At that time only 65 % of contrition for creating out
new opportunities in the competitive marketplace of united kingdom. Hence with the support of
both small as well as macro business enterprise were highly have impact on developing business
function and as well as creating benefit towards the betterment of United Kingdom.
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Above drawn graph is identifying that both micro and small level of venture working in
fulfilling their motive that is earning profit and working for the betterment of the business
environment. From the above data it has been interpreted that that Scotland and Wales are the
major part of United kingdom, this states are contributing more on growth of the economy.
Where as in case of Scotland are having huge amount of contribution towards growth of the
economy is near about 21.3% where Wales is contributing about 16.3 %
Hence it has determined that both both small and micro business play's an essential role
in creating employment opportunities within the society as well as country.
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in employing with people across the country. The contribution of small business near about
67.5% in creating employment opportunities in both private and public sector. Thus, overall it
has been examined that more contribution is from small business venture of private sector with
high number of employment in context to SMEs.
P4 Importance of small business and business start ups towards growth of the economy
Social economic business refers to the relationship between the economy as well as with
the behaviour of an individual. It is necessary for an entrepreneur to have proper knowledge
about the norms and regulation while operating their business function and activities that may
have both positive and negative influence over customer's mind sets. It consist of different size
of business operation and functions which are operating at economic sectors. Moreover, it can
be said that small business plays an effective role in developing and growing social life in
various manner.
an important role in growth of social life in economic in different ways:
Creating employment opportunities: In toady's business scenario small business are
creating various opportunities for unemployed person so that it can improve the living standard
of people(Fayolle and Gailly, 2015). Moreover , with various employment opportunities of
employment that are helping people people to fulfil their daily needs and requirements.
Innovation: It is necessary for each and every business to come up with new
innovation in competitive marketplace by owing their own product and structure. This types of
business create importance in mind of customer's so that people leads top create their more
attention towards their product and services in competitive marketplace. In this manner an
entrepreneur are pulling up with their talent in invention of new product and services in
competitive marketplace.
Local improvement: It is necessary for small business helps in improving the local needs
of customers and requirement as it is helping out in improving the living standard of people.
Moreover, small business venture are creating more opportunities for the local people as they
are understand the needs and wants of the people. In this manner small business enterprise are
bale to create new ventures as well as having positive impact on life of people in United
kingdom.
Low overheads: In context to small scale business enterprise there are usually low
overheads as compare to other business operation and function(Hlady‐Rispal and Jouison‐
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Laffitte, 2014). Herein, it is important for a business to have low overheads cost which consist
of low manufacturing cost, rent, low heating and make use of resources in an effective manner.
More or less while maintaining low over head cost an organisation can maintain its productivity
and proficiency by declining out with the overall cost of production.
Contributing local government with taxes: When local people and government are
supporting local business that help in generating revenue as well as make use of profits in an
appropriate manner. Moreover, for such purpose government are taking high advantages by
acquiring high amount of profits that are contribution welfare in the economy.
TASK 3
P5 Characteristic traits and skills of successful entrepreneur and its differentiate from other
business
An entrepreneur have different mindsets which help in determining human behaviour
towards entrepreneurial activities. Different mind sets often help an business enterprise to deal
out with the different opportunities which lead to bring up innovation that ultimately create
value within competitive marketplace (Jones-Evans and Klofsten, 2016). For such purpose there
are different mindsets that help in owning success in competitive marketplace. The different type
of mind set that are seen within an entrepreneur are discussed below:
Growth mindset: In case of growth mindset an entrepreneur is improving their
innovative ideas so that can develop or grow in constant rate. In this type an entrepreneur always
think of gaining knowledge and increasing their view and thought so that it can remain
competitive in marketplace.
Business mindset: In this type an entrepreneur are more interest in creating up with
new business ideas so that an enterprise can meet up with the challenging business environment
in competitive marketplace. This mind set will help in improving solution and problems so that
gaols and objectives can be attained in an effective manner.
Dreamer mindset: There are many entrepreneur who poses dreamer mindset are the one
who become most successful as they have the ability to think bigger in context to their business
enterprise. As this type of enterprise believes that each and every thing is possible if they focus
on their gaols and objectives very keenly in order to have a wonderful future.
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Confident mindset: Confident mindset refers to one of the most effective and way to
success. If an entrepreneur have confident mind set than an entrepreneur will have an effective
mindset so that they can attain their strategic action in an effective manner.
Apart from different mindset there are various characteristic that help an entrepreneur bring up
with more innovation. For such purpose it is very essential to know what are the importance
which are discussed below:
Increasing thinking power; It is necessary for an organisation to creating and have and
effective mind set so that they can think out of the box so that they can high number of business
market share(Julien, 2018). Moreover, if an entrepreneur have high level of thinking capacity
than an entrepreneur can easy tackle out their challenges in an effective manner.
Being innovative and creative: An entrepreneur mindset is always creative and
innovative so that they cab bring out more innovation in competitive marketplace. Moreover, it
also help them to create more business opportunities from competitive marketplace.
For example: Steve Jobs and Bill gates are one of two successful entrepreneur in today's
competitive marketplace. Steve Job is founder of Apple Inc., which is one of the leading phone
industry in competitive marketplace. Where as Bill gates was founder of Micro soft that has
become world's largest personal computer software
Characteristic of successful entrepreneur:
Risk Taker: A successful entrepreneur is always a risk taker, in order to become
successful an entrepreneur need to take risk in order to add contribution of success. Herein, in
this case both the entrepreneur were risk taker in their idea weather it will be successful or not in
competitive marketplace.
Traits of an entrepreneur:
Competitive spirit and self motivation: Quality of an entrepreneur differs from each
other. An entrepreneur need to have competitive spirit so that it help them work on their idea on
innovation in an effective manner. Moreover, it is also necessary to have self motivation among
them so that they can overcome in all situations for operating business function and activities.
Skills of an entrepreneur:
Adaptability and flexibility: In order to carry out business function in an effective
manner than an organisation should have ability to adopt changes as per make flexibility of their
product in uncertainty or requirement as per need and demand.
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P6 Assessment of entrepreneurial personality reflect entrepreneurial motivation and mindset
In today's era an entrepreneur have an unique personality that make them different from
other individual. It refers to the way of thinking different in order to become success in
competitive marketplace(Katz, 2014). Bill Gate belong from a well educated his family
members motivated him to work on its business idea so that he can become successful in
competitive marketplace. Its family members was the biggest inspiration in his success and
developing a micro soft software for personal computers.
On the other hand Steve Jobs belong from a poor family but his poor family supported
him in developing their business ideas in competitive marketplace. His hard work and success
lead to have one of the best and leading phone in competitive marketplace.
Thus both Bill Gates and Steve Jobs have focused on their idea and innovation very keenly in
order to become successful in competitive marketplace. In this manner both the entrepreneur
become successful in their ideas and have created an unique personality in marketplace.
TASK 4
P7 Examining background and experience that hinder or foster business entrepreneurship
In competitive business environment, an entrepreneur play's an effective role in each and
every situation. The background and experience of both the entrepreneur are determined below:
Steve jobs: Steve job started its business at early stage of life. He dose not have a good
family background as well as his family was not educated. But his family supported him and
motivated him in continuing its idea and innovation(Scarborough, 2016). Moreover, there were
many failures that was faced by him in obtaining success in competitive marketplace.
Bill Gates: In case of Bill Gates his family motivated him in enduring success and work
upon its idea. It family member supported him take appropriate decision so that his can work
upon their business in an effective manner. Though their were hurdles in acquiring success but
he was able to defect and attain success in competitive marketplace.
CONCLUSION
From this report it has been determined that entrepreneurship play's an important role in
developing and growing business function with new ideas and innovation in competitive
marketplace. An entrepreneur have an ability to bring out innovation and provide better quality
of goods and services as per the need and demand of customer's. Moreover, an entrepreneur need
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to have different personality, skills, trait and characteristic so that they have different image and
focus on their gaols and objectives as well as have sustainability for longer duration of time.
Hence, It had been determined entrepreneur have an positive role in boosting the economy and
help in increasing per capita income so that an organisation can achieve their gaols and
objectives in an effective manner.
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