Factors Influencing Small Business Growth

This assignment delves into the factors that contribute to the growth and success of small businesses. It analyzes relevant academic literature and research findings to identify key elements impacting small firm performance. The focus encompasses both internal factors within businesses, such as management practices and innovation, as well as external influences like market conditions and government policies.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types of entrepreneurial ventures and their relation to the entrepreneurship
typology.......................................................................................................................................1
P2 Differences and similarities between various entrepreneurial ventures.................................3
TASK 2............................................................................................................................................5
P3 Impact of small and micro business on economy..................................................................5
P4 Relevance of start-up's and small businesses in growth of economy....................................7
TASK 3............................................................................................................................................8
P5 Skills, traits and characteristic of successful entrepreneurs...................................................8
P6 Entrepreneurial personality reflect its mindset and motivation...........................................10
TASK 4..........................................................................................................................................11
P7 Experience and background can foster and hinder entrepreneurship..................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
An individual who set as well as design business activities for achieving financial gain is
called as entrepreneurs. They take more risk for convert into positive results in effective manner.
It divided in four categories such as small, social, large and scalable business enterprise which
play important role in development of economic growth (Entrepreneurs, 2017). In this
entrepreneurship is an effective activity in which a person take financial risk for achieving
positive results. The main aim of this concept to start a new business and provide better job
opportunities to their local people in order to improve their living standard in effective way.
Present report is based on various types of entrepreneurial ventures and typologies which helps
in evaluating best results. In this similarities and difference is also mentioned in this project.
Along with this small business enterprise also helps in developing economic growth is also
discussed in this project. Past experience and background also impact on entrepreneurs mind set
and personalty which helps in taking best decision.
TASK 1
P1 Various types of entrepreneurial ventures and their relation to the entrepreneurship typology
Entrepreneurship: It is one of the important and effective process to develop the
economic growth by providing job opportunities to their local people in which they improve their
living standard in effective manner. Along with this entrepreneurs are those who has abilities to
take risk and organize new business for attaining profitability level. In this process number of
individuals carry out as well as design their operation activities to gain financial benefits. With
the help of new and innovative services they easily satisfy customers needs and demand in most
effective way. In this various entrepreneurial ventures are as follows: Small business entrepreneur: These type of business men operate their business at small
scale in which they generate small amount of profits in order to fulfil their basic needs in
most appropriate manner. These type of entrepreneurs having less financial resources so
that they take helps form their family and friends to execute their business for the hope of
achieving desirables results. Electricians, grocery stores, carpenters and many more who
operate their business at small level (Bridge, Hegart and Porter, 2010). They define new
and innovative ideas to satisfy customers demand.
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 Large company entrepreneurship: These type of entrepreneurs execute their operational
activities at large level in which they invest more amount for achieve higher profitability
in effective manner. These type of business are affect by the customers behaviour,
technologies and its competitors who all the exist within the business environment. They
perform their business activities on international level in order to generate as well as gain
foreign exchange which directly contribute in development of economic growth in most
effective manner (Dacin, Dacin and Matear, 2010). They easily invite large number of
customers and investors by providing new and innovative ideas in which they easily
capture larger market share form its rivals. Scalable ventures: These type of entrepreneur start their business with new and
innovative ideas but they do not have any formal activities of the company . They
coordinate with the bank and financial institution to achieve their support. They also offer
new and features products to their customers in order to get their satisfaction. They select
as well as include skilled and bright workers in their process top handle their operation
activities in appropriate manner. In this ventures rate of return is very high.
 Social entrepreneurship: These type of entrepreneurs define their production process to
make new and innovative products to resole all the problems of society to develop better
social welfare which directly contribute in improving the economic condition. This can
be profitable and non profitable business with the aim of making society a better place.
Along with this, various entrepreneurship typologies can be understood by following
points such as: Research entrepreneur: This type of enterprise undertake various researches before
setting as well as designing business activities. They always tries to learn new and
innovative things to generate more profitability. They also carry out the best research to
formulate business strategies to develop their business in most effective manner. Copycat entrepreneur: These type of business copy the ideas of other successful business
and operate their activities accordingly. They generate more profitability by evaluating
the other ideas in their business and achieve best success. Determined entrepreneur: These type of businesses put their efforts to operate their
business activities in order to achieve positive success (Eid and El-Gohary, 2013). They
are totally different form the copycat business. With the helps of their ideas and efforts
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they easily generate huge amount of profitability and maintain their sustainability at
market place. Accomplished entrepreneur: They are the business people who go through all the phases
of entrepreneurship and then reached to final business success. They always leave a
legacy which remains beyond their lifetime. Male entrepreneur: This type of category include only male people who are capable to
run their business in effective manner because they easily execute their activities. Male
entrepreneurs easily take financial risk in order to operate their business activities in
order to enhance their profitability level. Female entrepreneur: Under this category of ventures female set their business with
more confidence. They easily manager their both personal and professional life. Female
entrepreneurs define new and innovative ideas to improve their business. Along with this
the main focus of these type of person is to tries to enhance their life styles.
 Serial entrepreneurs: This type of individuals easily take challenges and and manager
risk by determining new and innovative opinions. By this they easily set their business
organization. After setting their business they give their business and its responsibility to
other person.
P2 Differences and similarities between various entrepreneurial ventures
All the entrepreneurial venture are important for the economic growth which helps in
achieving all the organizational goals and objectives in most effective manner (Gibb, 2011). In
this various similarities and difference are define between all these entrepreneurial ventures
which helps in evaluating their performance. All are as follows:
Types of ventures Similarities Difference
Small v/s large enterprise Both enterprise carry out their
business operation to earn
more profitability. In which
small and large enterprise
collect various information
about their target market and
customers needs in order to
The biggest difference
between small and large
business enterprise is that the
small enterprise execute their
operational activities at micro
level in which they having less
financial fund to operate their
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provide quality services
accordingly. Both business
enterprise introduce new and
innovative products top their
customers in order to get their
satisfaction and achieve
profitability.
business so that some time
fails in attracting large number
of customers customers
towards their services. On the
other hand large business
enterprise operate their
business activities on large
level in which they easily
attract large number of
customers by providing better
quality services to their
customers in order to get huge
amount of profitability
(Gordon, Hamilton and Jack,
2012). In this the role of
manager in small business is
very simple but in the larger
business they face various
complexity in managing
activities. Number of
employees is also increased in
lager business enterprise
because operation activities is
more lengthy. And small
enterprise required less
employees to operate their
activities in effective manner.
Scalable v/s social enterprise The main similarities between
both enterprise is to make new
and innovative products to
their customers and also
The main aim of social
enterprise is to provide better
quality services to their
customers and also develop
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provide them better solution to
resole society problems. They
also undertake various
researches to evaluate as well
as identify products features
which were offering to the
final customers and get their
higher satisfaction in most
effective manner. The main
aim of both enterprise is to
increase the social welfare and
develop society condition
(Goss, 2015). They put their
efforts to make a better place
in over the world.
social welfare in effective
manner. For this they
undertake various researches
to identify the society demand
toward the products and
provide them accordingly in
order to eliminate the disputes
within the society. On the
other hand scalable enterprise
always tries to achieve better
success and capture large
market share by providing
better quality services to their
customers in effective way.
Types of ventures Male entrepreneurs Female entrepreneurs
Similarities Male entrepreneur take high
risk to operate their business
activities for attaining better
results.
They easily take financial risk
to generate larger profitability.
Female people also take risk
for operating their activities in
order to make their successful
business in market.
They are more confident at the
time of establishing their
business in which they easily
manager their activities.
Difference The main difference is male
entrepreneur are more
aggressive and short tamper.
Male entrepreneurs easily
invest their fund with out any
Female entrepreneurs are more
polite and careful in which
they provide support to its staff
members.
They are less confident at the
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hesitation by taking better
financial risk.
time of taking financial risk as
compare to male.
TASK 2
P3 Impact of small and micro business on economy
Small and micro business play important role in developing economy growth of the
nation by providing better job opportunities to their local people which helps in improving their
living standard in appropriate manner. This type business easily attract large number of
participative by improving their high rate of growth. Various small business are operate by the
women in UK in which they provide quality products to their customers which helps in
improving their living standard that directly contribute in economic growth (Hansen and
Hamilton, 2011). The main aim of this type of business ventures is to develop the society by
providing innovative services as per their requirements and get higher satisfaction by them.
These businesses expand their activities on local level so that they provide various employment
opportunities to the unemployed people which directly helps in improving their life style and
living standard that make better economic condition. Small business enterprise introduce
innovative products to attract large numbers of customers and investors so that they execute their
process in most effective manner. With the helps of this investors offer high rate of return to the
firm in which they operate their business in systematic manner. Various operation of small
business ventures helps in increasing the GDP rate of country which easily enhance their wealth.
For improve performance of the small business enterprise in the country, government play
important role in providing better support facilities so that they easily operate their business
international level and take best opportunities to earn foreign exchange. These business
enterprise is more important as compare to larger business because large scale business focus on
expanding the business for this they cover global level but the small business cover local areas
and uncovered location of the country. So that they easily develop their process in effective
manner. In this the owner of the business provide better training and development program to
their employees in order to enhance their skills and knowledge so that they easily complete all
the task and accept complex situation to find positive solution. There are some phases in which
small business enterprise impact on the economy of the country, are as follows:
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Illustration 1: Micro and small business employment
(Source: Lisa Dougherty Choux, 2014) Impact of region: In this phase, small business enterprise execute their business in small
regions in which they provide better services to satisfy local people needs. All these
activities are affect by the small business enterprise. Impact on national and international economy: Micro and small business enterprise
provide as well as introduce innovative products and services to their potential customers
in order to achieve higher satisfaction by them (Karpak and Topcu, 2010). It directly
affect the community.
 Impact on local people: Small business enterprise execute their activities by undertaking
various researches for produce new and innovative services to their potential customers.
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They also provide various job opportunities to local peoples for reducing the number of
unemployed peoples which aid in improving the living standard of people in effective
way.
Apart form this, there are some characteristic of partnership, sole and private are as
follows: Private: These type of business organization launched by private individuals and their
share are distribute among general people. They does not consider any kind of
government implementation because the main aim of this companies is to attain higher
profitability level. They invest more amount of funds within their business to attain more
profits and revenue. Sole proprietor: these type of companies owned by an individuals in which who has
capabilities to formulate their operational activities. Along with this the main aim of these
business to to generate more and more benefits. In this single person is responsible for
any kind of losses and benefits and also responsible for taking decision.
 Partnership: These type of business operate by one of more parties in which they agree
to operate their business with their mutual interests. All the partners are responsible for
taking risk and share entire profitability and losses. With all these concern they easily
operate their business and maintain better relations. All the partner share profit and losses
within their agreement.
All these aspects are more important in which small business enterprise positively impact
on development of the economy (Lee-Ross and Lashley, 2010). With the help of this, it provide
new and innovative products to their customers to get their higher satisfaction. It also helps in
providing better training and development programs to their employees in order to improve their
creativity which aid in increasing overall profitability of the company.
P4 Relevance of start-up's and small businesses in growth of economy
Start-up's and small business play important role ion developing the economic growth. In
UK various small enterprise working for achieving huge amount of profitability that improve in
overall economic condition. These type of enterprise provide various advantage to the local
people in which they select better products and services to satisfy their needs. It also increase the
GDP rate of the country to maintain the better condition of the economy. Small business
enterprise provide better constant to large level of business so that they easily execute their
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business at global level in most effective manner. Long with this small business ventures
undertake various researched to identify customers needs and than offer features products in
order to get their higher satisfaction. Brexit took place in 2016 where evacuation of United
Kingdom from European union has been done. Most of the population of the nation voted out
UK. At the same time, investigators started getting attracted with entrepreneurs who were trying
to introduce start-up's at whole new marketplace of United Kingdom. Boom under this, enhanced
economical condition of this country in a very short time of period. There are some importance
of start-up's in economy is evaluate by some following points such as: Improve relationship with individual: It is positive impact of small business which helps
in build a better relations with the customers. Fir this they undertake research for
gathering all the relevant information about customers needs. Positive customers
relationship define various benefits to the company in effective manner. Respond quickly to any changes that take place in business: Small business enterprise
easily adopt all the changes because they having flexible nature so that they respond of
all the changes in more quick manner that take place in business environment. It helps in
evaluating as well as finding better solution of conflict situation. Innovation: Small business define new and innovative products and service for their
customers in order to get their higher satisfaction (Oly Ndubisi and Iftikhar, 2012). For
this company undertake research to identify the customers demand and than provide
them better satisfaction which directly contribute on overall economy growth. Minimise cost: Small business activities define less cost as compare to large companies
which helps in inviting more and more customers towards its products and services. They
provide quality services at minimum cost to the customers which increase profitability
level of the company. Future growth is very high: This type of business not the remain for long time period
they easily achieve best growth by delivering quality services to their customers and per
their taste and preferences (Loader, 2013).
 Adaptability to respond changes: Small business enterprise organize as well as
conducting better training and development programs to their employees in order to
enhance their skills and knowledge. It also helps in completing all the task and getting
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positive results. Better skills and knowledge helps in responding all the changes that take
place in business environment in order to maintain effective performance.
TASK 3
P5 Skills, traits and characteristic of successful entrepreneurs
Every successful entrepreneurs having their specific skills and traits which helps them in
setting their business activities in more effective manner. All these characteristic is totally differ
from other which provide best advantage in implementing organizational activities in most
effective manner. It is more important for the person to make plan, design and execute their
activities in most appropriate manner in which they increase their skills and capabilities. In this
context, there are some main skills, traits and characteristic of two successful entrepreneurs such
as Bill gates and Mark Zuckerberg are as follows: Full of determination: It is more important for an entrepreneur to get better success in
which they have to be full of determination and set their clear and appropriate goals and
objectives. It helps in improving self confidence of the person which aid in completing all
the activities in most effective manner, on the other hand lack of determination create
more obstacles which take more time to resole it and delays in completing all the
business activities (Sánchez, 2013). So that it is more important for successful person to
achieve their goals and objectives. Underspending about better money management: It also play important role in overall
success of the business in which entrepreneurs must have all the information regarding
money management so that they easily achieve more profitability. With help of proper
knowledge of money management business owner invest their money in those field in
which they maximize rate of return on investment. So that its is more important skills
which have to be there in the entrepreneurs to maintain their financial resources in
appropriate manner and also effectively understand their money management. Passion about business: It is also important which contribute on overall organization
success. It is inner aspect of the entrepreneurs in which they easily set their mission and
work on it effectively (Schaltegger and Wagner, 2011). It lead in reducing the chances of
failure and get success in appropriate way.
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 Strategy: It is one of the important aspect for the business person because without
strategies they can not able to execute their business operation and achieve their
objectives. For attain their goals and objectives it is very important for the person to
develop as well as follow a strategies. It is not only beneficial for attaining the success
but also provide competitive advantage for the company at the market place. Flexibility: It is also important in today's changing business environment for the person.
This skills helps in adopting all kind of changes in order to maintain their performance in
effective manner. They implement their activities according to the variation of changes
that helps in making better services as per customers needs. Risk taking ability: Without taking risk nobody can achieve their goals and objectives.
Risk helps in converting into positive way. Both entrepreneurs take financial risk which
leads in achieving better succession in the business organization.
 Vision: It is related to the future time period in which an entrepreneurs define their vision
where they wants to see itself in upcoming time period. It helps in providing better
direction to person to complete their task and achieve their goals. In this it is important to
individual to set their vision on first priority to achieve their objectives in appropriate
manner.
All these are most effective skills and traits which helps in making a successful business
people. Bill gates and Mark Zuckerberg having all these kind of characteristic which see in their
success (Smart and Smart, 2012).
P6 Entrepreneurial personality reflect its mindset and motivation
Individuals personality define their specific qualities that directly impact on their thinking
and decision making process. It also helps in setting positive mind set and motivation. But some
the effective personality of the person impact negatively on their mind set (Storey, 2011).
Motivation and mindset of the entrepreneurs are main factors which define better personality of
the person. In this positive mindset helps in accepting all the challenges and take risk to get
better success in the market place. So that it is more important for entrepreneurs to think positive
which lead in getting positive results. It helps in achieving all the goals and objectives in
appropriate manner. There are some various elements that directly affect the personality and
traits which are as follows:
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 Upbringing: This element is largely affect the individuals thinking. In this the person
learn all the values and things to their family members which helps in evaluating what is
right and wrong. All these helps in taking best decision and that directly affect way of
thinking of the individuals. Personality traits: It define education, knowledge and ability of the person in which they
take all the knowledge on a particular topic. In this context every person have some traits
from their birth which is totally differ from others. All these are directly affect the
decision making of the entrepreneurs in more effective manner. Financial condition: It is one of the main and effective factor which affect decision
making process of financial activities. With the help of this an enterprise easily expand
their business activities. Entrepreneurs also take financial risk to attain the positive results
in more effective way.
 Education: With the helps of this individuals improve their thinking and also encourage
their morale so that they easily take any kind of risks to get financial gain (Tessema
Gerba, 2012). It is an important factors in which organization evaluate behaviour and
thinking of the person in order to get positive results in most effective way.
All these elements helps in defining overall personality of the person which affect the
mind set and motivation.
Along with this there are some personality assessment which represent by OCEAN
acronym. It can be understood by following points:
 Openness (Originality): It is apart of personality of the person which include emotion,
curiosity, variety of experiences. It reflect the overall personalities of the person which
define creativity in order to attain better results.
 Conscetiousness (Consolidation): This personality of the person define will to achieve
any kind of results which include self discipline, aim for achievement. All these help
person to improve their skills and motivate to attain the same.
 Extroversion: It define positive emotions which helps in attaining any kind of results. In
this low extraversion include reflection personality in order to attain more effective
results. These type of personalities are more talkative and optimistic and sociable who
have capability to joy in order to take right decision.
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 Agreeableness (Accommodation): These type of personalities are more trusting, helpful
and good natures. They easily take any kind of decision with out getting hampered. They
easily take challenges and find better solution to improve their performance.
 Neuroticism (Need for stability): It define various people who are more aggressive and
short tampered. They needs to stable their anger and also make them calm in order to
attain better results.
TASK 4
P7 Experience and background can foster and hinder entrepreneurship
Past experience and background of entrepreneurs play important role which helps in
understanding all the actors which impact organizational activities. Experience of the people
helps in evaluating the easy solution but it not positive always that effect on their performance
level. Both factors define their positive and negative impact on organizational activities. In this
the positive impact helps in resolving all the problems and other side negative impact create
various obstacles on company activities. In this context there are some various points which
helps in achieve all the organizational goals and objectives which are as follows:
 Positive past experiences helps in encouraging their confidence in order to accept all the
situation in appropriate manner and also find better solution to resolve it (Williams and
Nadin, 2012).
 It helps in attending all the task and getting best results as compare to past experience.
On the other side, past experience and background also impact negatively on company activities
which can be understood by following points:
 Negative past experience impact on individuals negatively it leads in demotivate to an
individuals and also reduce their growth in the company.
 Negative past experience also create issues which impact in person performance in
negative manner because they get hesitate to accept the challenges.
CONCLUSION
From the above mentioned report, it can be concluded that entrepreneurship is one of the
important aspect in which person set their new business for achieving financial gain. It play
important role in developing economic growth of the economy by providing various job
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opportunities to their local people. In this, the small business also helps in providing quality
services to their customers in order to improve their living standard which aid in improving the
overall growth of the economy in most effective manner. Along with this, start-up's business also
an important for the local people in which it set their growth by delivering innovative and new
services to their customers in order to gain huge amount of profitability. In this the skills, traits
and characteristic of a person also helps in achieving positive success. Person background and
past experience also affect the entrepreneurs personality and mind set in order to take best
decision in appropriate manner.
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REFERENCES
Books and journals
Bridge, S., Hegarty, C. and Porter, S., 2010. Rediscovering enterprise: developing appropriate
university entrepreneurship education. Education+ Training. 52(8/9). pp.722-734.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp.31-50.
Gibb, A., 2011. Concepts into practice: meeting the challenge of development of
entrepreneurship educators around an innovative paradigm: The case of the
International Entrepreneurship Educators' Programme (IEEP). International Journal of
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Gordon, I., Hamilton, E. and Jack, S., 2012. A study of a university-led entrepreneurship
education programme for small business owner/managers. Entrepreneurship &
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growers. International small business journal. 29(3). pp.278-294.
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Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
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Smart, A. and Smart, J. eds., 2012. Petty capitalists and globalization: flexibility,
entrepreneurship, and economic development. SUNY Press.
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Storey, D.J., 2011. Optimism and chance: The elephants in the entrepreneurship room.
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business and engineering students in Ethiopia. African Journal of Economic and
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Williams, C.C. and Nadin, S., 2012. Tackling the hidden enterprise culture: government policies
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Online
Entrepreneurs. 2017. [Online] Available through<https://www.entrepreneur.com/>.
Micro and small business employment. 2014. [Online]. Available
through.<http://www.wri.org/blog/2014/10/3-reasons-small-businesses-must-play-large-
role-climate-change-resilience>.
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