Entrepreneurship and Small Business Management

This assignment delves into the field of entrepreneurship and its application to small businesses. It examines various aspects, including crisis management strategies employed by small businesses during crises like the 2011 London riots, the process of conducting effectual entrepreneurship research, and the prevalence of social entrepreneurship at a macro level. The assignment also analyzes financial management challenges faced by SMEs, explores different frameworks for understanding entrepreneurial dynamics, evaluates enterprise policy interventions in Africa, investigates the link between female entrepreneurs' motivation and business survival, and examines the impact of network capability on small business performance.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation to typology.......................1
P2 Similarities and differences between entrepreneurial ventures.........................................2
TASK 2............................................................................................................................................3
P3 Impact on micro and small business enterprise on social economy after Brexit..............3
P4 Significance of small business and start-ups in towards growth of social economy........3
TASK 3 ...........................................................................................................................................4
P5 Characteristics, traits and skills of two successful business entrepreneurs.......................4
P6 Aspects of personality of entrepreneurs reflects its motivation and mindset....................5
TASK 4............................................................................................................................................5
P7 Influence of background and experience on entrepreneurship..........................................5
CONCLUSION:...............................................................................................................................6
REFERENCES:...............................................................................................................................7

INTRODUCTION:
In recent era, most of the businesses are run by entrepreneurs. These businesses are
started up by generating new ideas and philosophy. They small and medium size but highly
contributes in GDP of a nation. These ventures operate at domestic level and provide
employment to people (Smallbone, Welter, and Ateljevic, 2014). Their main purpose is to
enhance quality of life by providing new products and services to people. These ventures are
growing rapidly within UK. The success of business depends upon how unique their idea and
product is. In this report, different types of small enterprises are analysed. Also, the skills and
traits of two successful businessmen are discussed. Besides this, the impact of background and
experience on personality of entrepreneur is discussed.
TASK 1
P1 Different types of entrepreneurial ventures and their relation to typology
Entrepreneurs are the individuals who find new ideas for starting a business. These
people take risks like gamblers and start their business with available resources. Main purpose is
to develop new products and services to fulfil the needs of people (Sarma, and Borah, B., 2016).
There are different types of entrepreneurs and business ventures that are as follows:-
Serial entrepreneur- A person continuously moves from one business to another to implement
new ideas. He or she develops new products and services to fulfil the needs of people. Generally,
they hand over successful business to another person and focus on other’s ideas. They have skills
and qualities of developing new ideas. Sometimes, their business fails due to lack of focus.
Social entrepreneur- Usually, these entrepreneurs start business to provide products to improve
the quality of life of people (Karadag, 2015). Their main motive is not to earn profit but to
enhance the lifestyle of people. They identify the issues and problems in society and then decide
to create products or services. It is a non-profit organisation.
Female- They are the females who start business for social cause or to improve life of women.
They either work from home or set up a business. Business is started by applying the feminist
values.
Male- They are the persons who set up business mostly to earn profits. They apply ideas in
various sectors. Men takes high risk that makes their business successful ( Spence, 2016).
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P2 Similarities and differences between entrepreneurial ventures
Every business venture differs from each other in their own way. There are many
differences and similarities in business ventures.
Male and female entrepreneur
Similarities- Their main aim to start a business is earning a stable profit and providing goods to
society. Business is started to earn extra income so that desires can be fulfilled (Kuratko, Morris,
and Schindehutte, 2015). Besides this, generally the focus is on economic as well as social issue.
Differences -
Male entrepreneur Female entrepreneur
They are oriented towards construction,
technology and traffic.
They strive for fulfilment of their creative
ideas.
There top priority is earning profit. Money is not an important factor in
starting a business.
They often turns towards investors They start with their own money.
They often takes more financial risk They do not take financial risk.
Men makes logical decisions in business Women makes intuitive decisions
Lifestyle and serial entrepreneurs :-
Similarities – They both develop new products to improve living standards of society. Their
main purpose is to earn profits. Generally, more and more entrepreneur are engaged in these two
categories (Hoogendoorn, 2016). New products developed are cheap and fulfil needs of people
effectively.
Differences:-
Lifestyle entrepreneur Serial entrepreneur
They are generally more aggressive than the
serial entrepreneur.
They are having patience and self
confidence which makes them successful
Their aim is not to make profits but Their aim is to make profits with or
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improving quality of the life of people. without improving life of people.
They remain engaged in one business. These entrepreneurs generally moves from
one business to another.
TASK 2
P3 Impact on micro and small business enterprise on social economy after Brexit
Due to exit of UK from EU, business and economy are highly affected. This has a direct
impact on its growth and development. The policies and trade laws have been changed. By this,
small and medium sized businesses are suffering a lot. The profits and sales have declined. There
are various types of enterprises in the UK (Obeng, and Blundel, 2015). These are stated as
follows:-
Micro enterprises- These ventures operate in small area and owned by one person. Due to lack
of resources, it is not having the ability to expand. They earn stable profits. A large number of
people are engaged in this sector within UK.
Small-size enterprise- They are bigger than micro businesses and focus on the expansion. Their
main aim is to earn more profits. They are often engaged in retail or service sector.
Medium enterprises- These ventures operate in different regions. They have intense
competition among them that restricts their growth. They provide employment to a large number
of people (Doern, 2016).
P4 Significance of small business and start-ups in towards growth of social economy
BREXIT refers to exit of UK from European Union. It was a very common issue during
2016. During David Cameroon governance Britain decided to withdraw themselves from EU.
The decision was taken by voting in which majority of ministers voted in this favour. Main aim
behind this was to get Britain free from all EU laws. They want to make their own laws and
regulations to stop migrants from entering UK.
Due to BREXIT, small and medium size business was highly affected. But on the other
hand, it provided them a platform to grow and develop (Rey-Martí, Porcar, and Mas-Tur,
2015). They started trading with other countries. Start-ups and small businesses differ from each
other.
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Employment – It has lead to increase in employment level as more people are focused on
starting their own business. Due to this employee are been recruited.
Creativity- Business ventures have hired new talent that has resulted in developing new
products and services. It has lead to fulfil needs of local communities.
Start-ups Small business
People involved in this continues their
businesses by developing new ideas and
concepts.
These ventures are set up with same
business ideas but different methods of
providing services.
They contribute less in GDP but provides
new services and products.
Usually they are small size but due to more
numbers it shares a part in GDP.
They enhance the living standard of people. They provide services to people for their
well being.
TASK 3
P5 Characteristics, traits and skills of two successful business entrepreneurs
An entrepreneur becomes successful only when he or she possesses effective traits and
skills. These help them in growing their business (Gupta, Chiles, and McMullen, 2016). They
use them in taking decision and developing strategies. Traits and skills are described below :-
Motivation and passion- It is the main trait that makes an entrepreneur successful. They must
have passion to reach at high level and motivate themselves to put more efforts.
Creativity- A creative mind will help in creating new ideas and implementing them. This will
help in developing products. Also, they turn those ideas into business.
Risk taking- Person must be able to take risk while making decisions. They know that taking
more risk will result in more success.
Flexibility- It means implementing plans and strategies according to market conditions. They
should be flexible in adapting changes in business according to market conditions (Zacca,
Dayan, and Ahrens, 2015). This will help in bringing creativity in business operations.
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Vision- An entrepreneur should develop a vision by thinking for long term. It will help in
creating roadmap to achieve that vision. Also, he must communicate it to other so that it is clear
to them where business will be in the future.
Open minded- Entrepreneur must have open mind to take decisions. By this they have to look
around situations that can affect their business.
Traits of two successful entrepreneurs are :-
Steve jobs – He was very creative as he innovated Iphone and keep on doing inventing new
products to satisfy needs of people. He took innovative decisions. Steve jobs was also a great
leader as he lead his team towards success.
Mark Zuckerberg- He is very flexible as he involves employees in decision making (Sarma,
and Borah, 2016). Also, he is very open minded as he interacts with people and share his
thoughts.
P6 Aspects of personality of entrepreneurs reflects its motivation and mindset
Personality refers to behaviour, attitude and emotions that involve biological and
environmental factors. There are five dimensions of personality that is openness,
conscientiousness, extraversion, agreeableness and neuroticism.
Trait approach- It means set of traits that distinguish manager from entrepreneur. It contains
three things :-
Need of achievement: - it refers to gain huge profits by making huge efforts and implementing
creative ideas and business concepts (Karadag, 2015).
Locus of control: - entrepreneur focus on achieving some specific goals and objectives that they
have developed.
Risk taking prosperity- Entrepreneur take more risk than managers as they believe taking risk is
essential in becoming successful.
TASK 4
P7 Influence of background and experience on entrepreneurship
Background of person refers to its culture, values or beliefs that has been applied in
business. It has a major influence on business as decisions taken will depend upon how he
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individual reacts in a specific situation (Spence, 2016). It can impact entrepreneur in various
ways :-
 Person who belongs to business acumen will be having a strong mind set about what
decisions they have to take.
 A positive environment will provide optimistic thinking about business while negative
environment will provide pessimistic thinking.
 The educational background will reflect his interest in areas where he wants his business
to grow and develop.
In this example can be taken of Mark Zuckerberg who belongs to technical background so he
established new business related to technology (Kuratko, Morris, and Schindehutte, 2015). He
invented an application called Facebook that connects people with each other. Also, he started
researching in this field about what changes can be done in order to expand business.
CONCLUSION:
From this report it is concluded that small business highly contributes in GDP of UK.
They help in growth and development of economy. Entrepreneurs are individuals who finds new
ideas for starting a business. These people take risks like gamblers and start their business with
available resources. Due to exit of UK from EU, business and economy is highly affected. This
has a direct impact on its growth and development. BREXIT refers to existing of UK from
European Union. An entrepreneur becomes successful only when he or she possesses effective
traits and skills. Background of person refers to its culture, values or beliefs that has been applied
in business.
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REFERENCES:
Books and journals:
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International small business journal.34(3). pp.276-302.
Gupta, V.K., Chiles, T.H. and McMullen, J.S., 2016. A process perspective on evaluating and
conducting effectual entrepreneurship research. Academy of Management Review.41(3).
pp.540-544.
Hoogendoorn, B., 2016. The prevalence and determinants of social entrepreneurship at the
macro level. Journal of Small Business Management.54(S1). pp.278-296.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. Emerging Markets Journal.5(1). p.26.
Kuratko, D.F., Morris, M.H. and Schindehutte, M., 2015. Understanding the dynamics of
entrepreneurship through framework approaches. Small Business Economics.45(1). pp.1-13.
Obeng, B.A. and Blundel, R.K., 2015. Evaluating enterprise policy interventions in Africa: a
critical review of Ghanaian small business support services. Journal of Small Business
Management.53(2). pp.416-435.
Rey-Martí, A., Porcar, A.T. and Mas-Tur, A., 2015. Linking female entrepreneurs' motivation to
business survival. Journal of business research.68(4). pp.810-814.
Sarma, P. and Borah, B., 2016. A Study on Women Entrepreneurship—Its Management and
Business Problems: An Overview. Journal of Art & Social Sciences.1(1).
Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market
economies: Contemporary issues and perspectives. International Small Business
Journal.32(2). pp.113-116.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society.55(1). pp.23-55.
Zacca, R., Dayan, M. and Ahrens, T., 2015. Impact of network capability on small business
performance. Management Decision.53(1). pp.2-23.
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Online:
The importance of small businesses in the UK economy, 2017. [Online]. Available through
http://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-economy-
2492626/>
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