Small Business and Entrepreneurship

This assignment requires a critical review of provided academic articles focusing on various aspects of small businesses and entrepreneurship. The articles delve into topics such as family management, human capital, foreign ownership, innovation, business models, and the role of government in fostering entrepreneurial activity. Students are expected to analyze and synthesize the information presented in these articles, highlighting key themes, debates, and potential future research directions.

ENTREPRENEURSHIP AND
SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types of entrepreneurial ventures and their classification......................................1
P2 Similarities and differences of entrepreneurial ventures ......................................................2
P4 Impact of micro and small businesses on the economy.........................................................4
P4 Small businesses and business start–ups contribution towards social economy...................5
P5 Description on characteristics, traits of successful entrepreneurs. .......................................6
P6 Description on personality of entrepreneur reflect mindset and motivation of
entrepreneurial. ..........................................................................................................................6
P7 Description on how background and experience is helpful in order to fostering
entrepreneurship..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The principal aim of this research is to provide an insight into entrepreneurship and the
management of smaller businesses which are beneficial for economic growth and development.
It outlines the relationship between the entrepreneurial ventures and small business units and
stresses on how they overlap each other. Moreover, entrepreneurship could be linked towards the
economic growth, job creation and competitiveness in the economy. Small business enterprises
seeks to make a larger impact on the economy by creating jobs requirements, less labour
turnover, and providing opportunities to local public. Thus, the research focuses on how small
business units can achieve growth and transforms into big entrepreneurs with the use of
innovative ideas and technology.
P1 Different types of entrepreneurial ventures and their classification.
An entrepreneurial venture is termed as a small business which is producing something
new or innovative. The entrepreneur is taking the risk to do something different that does not
exist until now. The different kinds of ventures may be classified in terms of size (small, medium
and large) , growth rate (low, medium, or fast growth) aims and beliefs. Each form of venture
has different needs/requirements and make unique effort towards the economic vitality which
adds value to society.
Small Business Entrepreneurship: In today's era, small businesses still have a huge number of
entrepreneurs running their own family businesses or start-ups. Small business also known as the
survival ventures have limited resources and is solely responsible for all the risks and rewards of
his or her business venture. The business usually have less or no premises with few assets of its
own and majorly function on cash basis. It may or may not be formally registered with no
business banking relationship. Small business possessors are often more tender, and see their
business as part of the community and part of the family. Such businesses operate in a highly
competitive, price-based, and largely undifferentiated markets.
Social Entrepreneurship: Social Entrepreneurs focuses on creating those products and services
which are not only innovative but also fulfill social needs and desires. These Entrepreneurs
emphasis's on making world a better place through their innovative ideas and changing
environmental conditions. They can be nonprofit, for-profit, or hybrid concern whose main aim
is to provide value to the society in terms of infusing such products and services in the economy.
Such entrepreneurs believe in sustainable growth in terms of the impact of the business on the
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community as a whole. Social entrepreneurs focuses on opportunities to provide large-scale
solutions to global problems thereby making minimal or no profit in monetary aspects and
gaining maximum social satisfaction. Social entrepreneurs seek towards transforming the
society and its people into a better well-being.
Scalable Startup Entrepreneurship: Scalable entrepreneurship are those businesses which have
said mission, vision and objectives clearly defined. They are high risk takers and have the
capacity of changing the world with their innovative ideas. Such ventures have upgraded
technology and strong innovation ability that seeks exponential growth and are usually funded
by company assets. The main source of their finance are banks, private investors, venture capital
firms and public markets. The economic motive of scalable entrepreneurs is creation and
maximisation of wealth. They focus on rapid growth of the organization with increasing
business without incurring additional costs. Such scalable entrepreneurs focus on high
production, quick and easy distribution, faster networks and huge infrastructure availability to
make larger profits in the long run.
Corporate Entrepreneurship: The term corporate entrepreneurship refers to the evolution of
new ideas and opportunities within established or large businesses, which leads to the betterment
of organizational profitability and an enhancement of current position of an existing business.
Corporate entrepreneurs are core innovators and high risk-takers which leads to evolvement of
new business ventures. Corporate entrepreneurship may even alter the competition through
tracking the external changes arising through economical and political instability. Such
entrepreneurs possess a niche market and influences cost to company.
P2 Similarities and differences of entrepreneurial ventures
Corporate entrepreneurship and social entrepreneurship : The major similarity between the
corporate entrepreneurs and social entrepreneurs point towards creation of products and services
in the economy which adds value to there company. Corporate entrepreneurs focuses on the
profit and wealth aspect of any business whereas social entrepreneurs emphasizes on the
communal well being. Corporate entrepreneurs aim towards monetary aspects of the business
while social entrepreneurs pursue on creating social values underlying social causes.
Social entrepreneurship and scalable entrepreneurship: Both the social and scalable
entrepreneurs emphasises on core innovation either by starting a new venture in case of scalable
business or producing something new for the upliftment of society. Social entrepreneurs are
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considered as innovators in creating social value whereas scalable entrepreneurs focuses on
creation of wealth through aggressive innovation techniques. The goal of social
entrepreneurship is creating social value for the public good, whereas scalable entrepreneurship
focuses on creating profitable operations which maximises private gain. The scalable
entrepreneurs focus on operations that benefits their shareholders and overall profit maximisation
whereas the social firms being the non-profit organisation mostly donate their profits to support
social causes.
Social entrepreneurship and small business entrepreneurship: Small business entrepreneurs
provide value to their customers through competitive pricing and different product or services
whereas social entrepreneurs focuses on providing social value through positive impact on
society by creating economic value. Small enterprises have limited or no resources to expand
while the social entrepreneurs either profit making or non-profit firms raises capital for
expanding their businesses for creating another social product for the society.
Scalable entrepreneurship and Corporate entrepreneurship: Both Scalable entrepreneurship
and Corporate entrepreneurship focuses on strategic growth of there business in the long run.
High investment is involved in technology up gradation. Both emphasises on wealth creation and
uses public markets for funding their projects. Scalable entrepreneurs has the capacity to bring
the innovative change with their vision while corporate firms tends to create new ventures or
start new operations expanding the existing business. The scalable and corporate ventures tends
to produce on a high scale and involves huge distribution channels.
Small business entrepreneurship and Corporate entrepreneurship: Corporate entrepreneurship
involves creating new business from within the existing venture by innovating products and
services whereas small firms tends to be on the same scale of economy producing identical
products and services. Small businesses functions on a small scale producing limited products
with less innovation, on the other hand corporate entrepreneurs produces on a large scale and
highly differentiated items.
Small business entrepreneurship and Scalable entrepreneurship: Small business owners focus
on providing family gain and view the business as an expansion of their values and ethics
whereas Scalable corporations emphasises on growing their concerns to gain wider market and
maximises profit. Small business enterprises raises funds from self or family and friends while
the scalable entrepreneurs fund their ventures using public markets, banks, venture capital firms
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etc. With huge capital scalable firms promote their products through different ads and campaigns
on the other hand small firms engage in little or no advertisements of their produce.
P4 Impact of micro and small businesses on the economy.
Micro or Small businesses are often surpass by large organisations and conglomerate
firms. They may not generate as much income on an individual basis as compared to large
organisations but they're essential to the success of any economy. Small business is a challenging
task to be carried out by an individual.
 Small businesses focuses on small tasks like financial independence, creative freedom,
fictive skills and knowledge and associate them with business ownership. Though being
a challenge for the owners, micro or small business are solely responsible for creating
jobs in an economy especially local jobs which encourages employees to work closer to
their homes.
 Small business provides opportunities to pursue one's creative idea with little finance.
Small businesses are easily noticeable as they preserve the traditional way of operating in
the local markets and community streets. They are mainly small shopkeepers, grocery
stores, antiques emporium, coffee shops, and small vendors selling day-today products.
Small business owners tend to make business decisions which have a significant impact
on the substantial community in which they live or operate their business. For instance,
they may contribute for the upliftment of their community, sponsor sport activities, helps
in development of women, put up camps for medical check-ups and blood donation etc.
 The major impact of small businesses on the economy implies that they generate profits
and give money back to their local community. The small businesses being an integral
part of the community build personal relationships with their customers and other small
business owners thereby contributing long term success to their firms and community as
a whole. Small businesses ideas born initially comes out to be outstanding ideas, in which
no one believed at first such as Microsoft, Apple, Disney and Google.
 Small businesses are usually walker friendly as they mostly operate in residential areas
and walk-able down towns. Thus, having a greater environmental impact – for example
reducing the use of vehicles thereby controlling pollution and encouraging walking or
bicycling. Small businesses require less infrastructure as they mostly operates in local
areas with small shops thereby reducing environmental destruction.
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 Small business owners are future entrepreneurs based on their creative skills and
innovative ideas. Many community banks are an aid in development of small businesses
by providing short term loans to get their operations done. The aim is to encourage small
owners to take up entrepreneurship responsibility and promote continued small business
development in the economy. Small or micro businesses need to grow at each and every
step to survive with the competitors in the economy. Multiple small businesses are being
operated in the community serving unique, innovative and differentiated products and
services opens for a healthy competition in the market place which overall affects the
economy in a better way.
 Small businesses are termed as an agent of growth that allows both government and the
citizens to consume the goods and services they desire to grow. Simultaneously, it allows
local people with concrete ideas to act upon them and make their business a reality.
Furthermore, it raises the scale of economies and inspire others to take the same leap
toward becoming a small business owner.
P4 Small businesses and business start–ups contribution towards social economy
The major changes which are outlined after the Brexit decision taken by the UK
government affects the social economy variably. BREXIT is being derived from the words
Britain and exit which implies Britain is leaving the European Union. From economist point of
view, business start-ups are opportunities in an economy. The performance of the UK economy
declined due to the effects of the Brexit on the UK. The impact on small businesses is panoramic
because they are the lifeblood of the UK economic system. Another impact on small businesses
in terms of the overall state of businesses and consumers purchasing their products or services is
the falling GDP. Since the diversion of UK from the EU, many investors, small business and
public are finding out as what is going so negative, there are still larger concerns to figure out.
Small businesses and the fresh start- ups faced a declined economy initially which may get
worsen further. Small businesses or start-ups may bear the shock as they generally have a smaller
scale of operations as compared to larger corporations. Declining GDP calls for stringent
struggle for smaller business to keep working, if they are engaged in importing. On the other
hand, it has benefited the exporters, thereby increasing the overall GDP. In total the growth has
been recognized as a mark of the UK economy doing much better than hoped-for after the
Brexit. This is the having major impact over the activities of firm. Berxit has affected the growth
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of enterprise in large manner. Thus, economies do not just trip down so easily. Though
economies have been affected undoubtedly with many businesses being shut down but now
many other businesses are trying to get on with their day-today routine, keeping full track of the
economic system and Brexit conditions. Another major impact of Brexit on small businesses and
start-ups is the declining value of pound.
P5 Description on characteristics, traits of successful entrepreneurs.
Entrepreneur should have a strong communication skills to market its product and services. Each
entrepreneur posses some or the other characteristics, traits and distinctive skills which make him
different and innovative from others business managers. To make this study more concrete lets
take small instances of two successful entrepreneurs such as Richard Branson and Mark
Zuckerberg. The various traits and skills of these entrepreneurs are :-
 Identification of Opportunities
 Plan everything
 Creating competitive advantage
 Risk taking
 Innovation
 Sales skills
P6 Description on personality of entrepreneur reflect mindset and motivation of entrepreneurial.
The entrepreneur is the person who has the ability to encourage and motivate the person
with the help of his skills, knowledge and traits. With the help of this they can easily motivate
the employees in order to perform effective in business enterprise. They are the key element of
the firm without their initiatives they are not able to generate high volume of profit. The person
can easily motivate with the help of seeing contribution of others. This kind of function will he
help in order to encourage employees. There are two famous personalities are as Mark
Zuckerberg and Richard Branson. They are famous entrepreneurs, they have start their business
venture at very younger age with the patience and dedication. With the help of their hard
working they have reach to the highest position.
The successful entrepreneur is the person who is never afraid to take risk this kind of factor will
be helpful in order to get success in larger manner. Under the case of Mark Zuckerberg who has
rejected for several times but his dedication helped him to get desire success. With the help of
dedication he is able to build his own empire. This kind of factors are very encouraging which
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boost other in order to follow their foot path in order to get the success. The entrepreneur can
work in order to develop the whole business function so that they can able to maximise the
profitability and productivity. This both personality has achieved the success at very younger
age, this is also one of the attracting factor which can attract the many people in order to get the
desire success. The success cannot be earn with the small efforts in order to have this the person
much keep patience and dedication towards what he wants to achieve.
There are other many individuals who are having the ability to conquer the world but due
to there fear of loose they're afraid to give initiate. The risk is the major factor in this relation,
with the help of taking risk they are able to have the desire profitability in market. The person
who never afraid to take risk can be termed out as successful entrepreneur. The another famous
personality names as Richard Branson who have seen many failures in his lives but after that he
did not give up. At the last he is able to get the desire success in market. This kind of personality
are helpful in order to making future pans and work effective towards it. The entrepreneur skills
are very helpful in order to changing mind set of individuals. With the help of positive mind and
constant efforts the individual is able to achieve the desire success.
Without the putting efforts no one is ale to get success in his life. In this prosper need to
have foresight power with the help of this he is able to develop his skills effectively. To earn
profit is another factor which is helpful in order to earning larger amount of profitability. In this
manner the Richard Branson has found differed kind of method in order to get more amount of
profitability. The profit is the main factor which is helpful in order to motivating many
individuals because all are working in order to earn large amount of revenue. In this manner it
can be true to said that the skills, knowledge and personality traits are helpful in order to have
desire success. With the help of this person can encourage himself in order to perform best.
P7 Description on how background and experience is helpful in order to fostering
entrepreneurship.
In this it can be true to said that the skills and innovation are not the only things which
are helpful in order to get success and being successful entrepreneur. The background and
experience is also having grate impact in this relation. This is not the easy task in order to get
success the person need to face various kind of changeling. In this it can be seen that sometime
the entrepreneur what he is thinking does not match with his experience. This kind of thing can
have the negative result and this can also hinder the growth of enterprise in large manner. Due to
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lack of knowledge the person is not able to perform the task in the effective manner. To be a
successful entrepreneur he need to have proper knowledge in the field he wants to get the desire
result. In this the one of entrepreneur Richard Branson who is suffering from dyslexia it is the
major hurdle in his life. Due to this he is not able read and write. The another cause is finance
due to lack of funds the person is not able to take the initiatives. The Mark Zukerberg was not
having finance to give initiate to his business plan. This kind of activities create the hurdles in
order to achieve the desire success. Due to constant practice and patience the person is able to get
the desire profitability.
CONCLUSION
Based on above report it has been concluded that entrepreneur is the person who works in
order to motivates other to perform their best in order to have desire profitability. The activities
in relation to small enterprise the helped the UK in order to have stable growth in market. After,
he Brexit with UK they are able to maximise the revenue. The present report has covered the
various kind of activities such are as personal traits of employer and many other factor which are
helpful in relation to achieve the desire success in market. In addition to this there are two
famous successful entrepreneurs such are as Richard Branson and Mark Zuckerberg who has
taken various initiative in order to have the desire success in market.
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REFERENCES
Books and journals
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Storey, D.J., 2016. Understanding the small business sector. Routledge.
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Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
Wennekers and et.al., 2010. The relationship between entrepreneurship and economic
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pp.167-237.
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