Entrepreneurship and small business

Entrepreneurship and
small business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1. Explanation of different types of entrepreneurial ventures and its relationship with
typology of entrepreneurship.......................................................................................................1
P2. Discussing entrepreneurial ventures similarities and differences..........................................2
TASK2.............................................................................................................................................4
P3: Impact of Micro and Small businesses on the economy.......................................................4
P4. Defining small businesses and start-ups importance in the growth of social economy........5
TASK3.............................................................................................................................................6
P5. Explanation of the characteristic traits and skills of entrepreneurs that are very successful.6
P6. Discussion of entrepreneurial motivation and mindset that reflect the personality of the
entrepreneurs................................................................................................................................8
TASK4.............................................................................................................................................9
P7. Explanation of entrepreneur background and experience that hinder or foster
entrepreneurship...........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship refers to a process in which an individual set up a business or a venture
in order to earn profits, while bearing all the risks that are involved with it (Audretsch and
Lehmann, 2017). While small business is a one that is started at a low level in which workers are
also limited. In this report there are various topics that are covered such as different
entrepreneurial ventures and its relationship with typology of entrepreneurship, similarities and
differences of the entrepreneurial ventures. Also in this report there is an analysis of impact of
micro and small businesses on economy and its importance for the growth of social economy.
Apart from that, this report also covers various traits and skills of successful entrepreneurs that
are different from other business managers and entrepreneurial personality is also discussed that
reflect its motivation and mindset. Further this report also covers the explanation of background
and experience that can foster or hinder entrepreneurship.
TASK1
P1. Explanation of different types of entrepreneurial ventures and its relationship with typology
of entrepreneurship
Entrepreneurial ventures can be described as a venture that focusses on new and
innovative aspects of the market. There are various types of entrepreneurial ventures that are
explained briefly in context to countries that are taken as examples below-
Individual entrepreneurship- It is a type of entrepreneurship in which an individual
carry out business on personal property by using the right of do business in a legal and lawful
manner. It is usually done by a person when finance is a issue and big loans are out of reach so
this is a method which is very beneficial at that period of time (Babunashvili, 2019). Some
examples of the individual entrepreneurship in the UK are SpeedLink, Yellow Truck Wash,
Slim's Detailing, etc.
Corporate entrepreneurship- In this type of entrepreneurship there are changes in the
product and services of an organisation that is in operation currently so that new goals laid down
for achieving growth and profitability can be fulfilled. It is very important for a business in
which efficiency, effectiveness, and performance is a reason of concern so by doing this all these
are improved. Kafoodle, Challenge Business, Alcove, etc. are some examples of corporate
entrepreneurship in the UK.
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Public sector entrepreneurship- It is a type of entrepreneurship in which government
tries to change the current state of affairs mainly regarding social, environmental, and political
issues that have the potential to change the economy and society. It is very useful in times of
uncertainties as it can help to reduce the impact of it and can be very beneficial for a nation.
Emergency and healthcare services, educational institutes and care for society, etc. are some of
the entrepreneurship examples of the public sector in the UK.
Startup, acquisition, franchise, new development entrepreneurship- These are
different types of entrepreneurship in which mainly a new business is generated so that it can
gain advantage of its existing firm or from the market conditions that are prevailing. It can be
very useful as it can grow and prosper well and thus can achieve profitability in the current as
well as in the future market situations (Baker and Powell, 2019). Some of the examples of this
type of entrepreneurship in the UK are Curve, Monzo, eToro, etc.
There are three typologies of entrepreneurship and their relation with different types of
entrepreneurial ventures are explained below-
Male typology- In this type of typology the entrepreneurship ventures are mainly
dominated by the male members and there are no female counterparts. Corporate
entrepreneurship is mainly of male typology as it is dominated by the male counterparts and
centralisation of powers in the hands makes it of more dominative nature. It can be very useful in
the long run.
Female typology- It is a typology in which there are no males and it is dominated by the
female entrepreneurs. Individual type of entrepreneurship is a one which is mostly dominated by
the females and it is very beneficial in growth of the firm and profitability.
Managed growth- It is a typology in which both male and female work together and
there is no such thing like domination of one over other. Public sector entrepreneurship and
Startup, acquisition, franchise, new development entrepreneurship are types of managed growth
as both female and male are treated equally and both work according to the needs, requirements,
and demands so that goals can be achieved.
P2. Discussing entrepreneurial ventures similarities and differences
Difference between different type of entrepreneurial ventures-
Individual
entrepreneurship
Corporate
entrepreneurship
Public sector
entrepreneurship
Startup, acquisition,
franchise, new
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development
entrepreneurship
In this type of
entrepreneurship every
decision is taken by a
single person that can
lead to growth and at
the same time
downfall can also be
seen if things doesn't
go as per plans (Bello,
2019).
This is a type of
entrepreneurship in
which decisions are
taken by a group of
people but majority of
the decisions are taken
by some persons only.
In this type of
entrepreneurship
majority of decisions
are taken by a group of
people that are
experienced in that
aspect and the
decisions are mostly
beneficial.
It is a type of
entrepreneurship in
which decisions are
taken by few persons
that are directly related
with the business and
its implemented after
analysing all the
aspects of market
conditions.
Capital invested is not
much in this type due
to its nature and thus
profit earned is in
limited quantity.
Capital invested and
the current capital is of
huge amount because
of its size and the
operations that it does
and thus earns a good
amount of profit.
In this type of
entrepreneurship
capital invested is the
most as compared to
others and the profits
earned is used in
welfare and
development of the
society and
environment.
Capital invested is of
limited quantity but it
is more than the first
one and the profits are
well utilised in a
precise manner so that
it helps in the
development and
growth of the firm.
Similarities between different type of entrepreneurial ventures-
 In all the above type of entrepreneurship that is individual, corporate, public sector, and
startup, acquisition, franchise, new development motive of each and every
entrepreneurship is to earn profit an it is given first priority.
 Decision making is done in all the above entrepreneurship's after detailed analysis,
research, and verifying the conditions of the market so that it can add to the growth and
profitability of the business.
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 All of the entrepreneurship's follow rules and regulations and do their working within the
laws, policies, and procedures that are set up regarding the working of the businesses.
 All of the entrepreneurship's that are explained above helps in increasing the GDP of a
nation by contributing to the country's growth and development accordingly (Dana,
Grandinetti and Mason, 2016).
TASK2
P3: Impact of Micro and Small businesses on the economy
From the above chart it can be interpreted that-
 The Small Businesses have a 48% in employment. 12% share of employment is
contributed by Medium businesses. Rest of the 40 % share of employment is contributed
by the Large businesses.
 The Small Businesses have a contribution of 33% in the turnover. 14% of turnover is
contributed by Medium Businesses. Rest of the 53% share in the turnover is contributed
by Large Businesses.
 The Small Businesses have an overall contribution of 99.3% in the businesses. 0.6% of
the businesses are Medium Businesses. Rest of the 0.1% businesses are Large
Businesses.
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Thus it can be said that Micro and Small Businesses are contributing to the economy of U.K. In
the following manner-
 Employment- Micro and Small Businesses have been ahead in generating a lot of
employment. While employment was hit by the impact of Brexit still these businesses
have been scaling up their production and are regularly providing job opportunities to
plenty of people thereby contributing towards the GDP of the country (Harrison and
Leitch, 2018).
 Innovation- Innovation is critical for the purpose of ensuring that new products and
services are constantly introduced in the economy. The Micro and Small Businesses are
pioneer in innovation and make sure that they can contribute at their best towards the
economy. In this way they are able to ensure that they give boost to the overall level of
innovation in the economy.
 Implementation of changes- The Business Environment is quite dynamic in nature. It
can change very quickly. Therefore the requirement on the part of the organizations is
that they can respond to these changes quite quickly and effectively. Thus this is the role
which the Micro and Small Businesses play by quickly adapting to the dynamic changes
in the market and ensuring that the customers are provided with the new products and
services which are according to these changes.
 Boost to productivity- Enhancement can be provided to the productivity level in the
economy through making the use of right approaches. Micro and Small Businesses are
able to ensure this so that they can help in the attainment of the goals and objectives
which have been set in the economy without facing problems and issues. They give boost
to the productivity in the economy by enhancing the level of skills of the workers.
P4. Defining small businesses and start-ups importance in the growth of social economy
There are various important that a small business and startup possess in the growth of
social economy that are explained briefly below-
 Employment- Small businesses and startups are of great importance for a country,
society, and individual. It creates job opportunities and employs a good amount of
persons that helps in increasing purchasing power of an individual which subsequently
increases the economy of a country and thus resulting in economic growth and
development of the society.
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 Availability- It is very beneficial for an individual as it provides product and services
easily and cheaply as it will take time and money if the product and services are
purchased directly from the big companies. So it acts as a mediator between both the
parties and it helps in increasing the sales as well as it is beneficial in increasing the
standard of living which is beneficial for both society and the country (Horodnic and
Williams, 2019).
 Taxes- Both small businesses and startups contributes their part to the government as
taxes and this helps the country to grow and develop. Also welfare and development of
the society is also done from the amount that are collected as taxes and thus indirectly
each and every individual is benefited by this whether it is business, government, or
person.
 Environmental changes- Small businesses and startups also helps in maintaining a
sustainable environment conditions so that society can live a peaceful life. It uses various
measures to reduce the use of carbon and actively participates in the use of new
technologies like solar and wind power which is very beneficial in reducing the pollution
of the environment that is caused due to use of coal and other means of power.
TASK3
P5. Explanation of the characteristic traits and skills of entrepreneurs that are very successful
There are various characteristic traits and skills of entrepreneurs that are very different
from other business managers and these are the differences that makes entrepreneurs successful.
These are explained below briefly taking two entrepreneurs namely Bill Gates and Steve Jobs-
Characteristic traits-
 Passion- It is very important aspect of a successful entrepreneur as it is the force that
derives to do more without getting tired which is lacking by other business managers. As
successful entrepreneur are very passionate about the work and give their best so that it
can result in profitability and growth which is an essential part of working. Bill Gates is
very passionate about the technology and innovation and that helped in the foundation of
Microsoft. Steve Jobs was a passionate man and it was because of this passion Apple was
founded and it was a boom in the digital market after that (Kabange, 2019).
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 Discipline and competitiveness- All the successful entrepreneurs are very dedicated
towards work and highly disciplined in doing work as well as very competitive in every
aspect. Many new firms are opening every day but the entrepreneurs focus on improving
their work rather than pointing out problems in other's business and that is a quality that
other business managers lack. Both the entrepreneurs are very disciplined about their
work and because of this both have taken their companies namely Microsoft and Apple to
new heights.
 Creative- Successful entrepreneurs are very creative in every aspect and does not hesitate
to change or rectify the product or service that is rendered by the organisation if it is
beneficial. Many new aspects are also introduced in the business because of the vision of
the entrepreneur and proved very beneficial in the long run and these qualities are lacked
by managers of other businesses. Both the entrepreneurs that are Bill Gates and Steve
Jobs are very creative and because of this both have done an exceptional work in
different fields.
 Risk- Entrepreneurs that are successful does not shy away in taking risks so that business
can grow to a next level. It can go either way as if the plan is not good it have the
potential to destroy the company too but as it is said higher risk gives higher rewards and
it is lacked by other business managers. Bill Gates and Steve Jobs both does not shy away
in taking risks and that proved very beneficial as companies of both are performing
exceptionally well.
Skills-
 Communication- Successful entrepreneurs have an excellent communication skill and
reaches the desired person effectively and efficiently. The things that are conveyed are
done in a very precise and careful manner so that there would be no other meaning and
neither it can misunderstood. It helps in improving the time period in which work is done
as well as duplication of efforts and errors in the work is minimised due to this skill
which other business managers does not possess. Bill Gates and Steve Jobs both have
excellent communication skills that is a very beneficial aspect and thus helping them to
expand in their regions (Mills and Dang, 2020).
 Listening ability- It is very important skill of a successful entrepreneur as other person
fells connected with the organisation when listened to the thoughts and feelings of an
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individual. It is very important to listen to others without coming to a conclusion and this
is an aspect that the managers of other businesses lacks. As it is a key aspect in binding
the employees with the business without using any type of force. Both the entrepreneurs
are very good at listening to others and grabbing thoughts of different people that helps in
taking decisions in the business.
 Perseverance- Successful entrepreneurs does not give up in hard times as it is though
that it is a time that can teach some aspects and instead of running away from the
problem entrepreneurs tends to face all the challenges. It is very important in building a
strong foundation of a business and these skills other manages don't possess. Both the
entrepreneurs are very calm and did not give up because of failures rather they've came
more stronger every time.
 Confident- It is a very important skill that makes entrepreneurs successful. Mostly all
entrepreneurs are very confident and brings a positive aura in the company that helps in
increasing the performance of both the owner as well as the employees. It is very
beneficial as this confidence can be passed on and thus can be critical in achieving the
goals laid down by the organisation and other business managers does not have that skill
which makes a big difference in the working. Both the entrepreneurs are very confident
as many people said in starting that the business idea is not good but both of them were
confident enough on the idea and hence it proved very beneficial for for the individuals
and the company too (Nguyen, 2020).
P6. Discussion of entrepreneurial motivation and mindset that reflect the personality of the
entrepreneurs
Entrepreneurs personality aspects reflects entrepreneurial motivation and mindset and it
is explained below in detail-
 Openness- It is a aspect in which an entrepreneur does not hesitate in trying new things
and thinking innovative techniques that can be used in the business so that it could be
made profitable. Both Bill Gates and Steve Jobs were very open about all the aspects that
can prevail in the market and does necessary changes and innovations according to the
needs and requirements of the company.
 Conscientiousness- In this entrepreneurs are conscious enough about different things and
various aspects that are very reliable. Bill Gates and Steve Jobs both take decisions
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regarding working of the business after various analysis and research and are very
particular about all the things that are happening in the business (Nguyen, 2018).
 Extraversion- It is an aspect in which entrepreneurs look up for meaningful interactions
with intellectual personnels so that it can help in the growth and profitability of the firm.
Both the entrepreneurs are extroverts and fells good and energetic while interacting with
others and is proved very beneficial for all individual, employees, and organisation.
 Agreeableness- In this entrepreneurs interact with others and analyse their point of view
of thinking and agree on certain things that are correct and can be implemented. Bill
Gates and Steve Jobs both are loyal and have empathy towards others and this helps in
increasing the morale of others too and benefits overall growth and development.
 Neuroticism- It includes negative aspects that an entrepreneur might have which include
a sense of fear and anxiety, insecurity in working of the business, etc. Both the
entrepreneurs that are Bill Gates and Steve Jobs are very positive and doesn't have any
negative element at all rather both brings a positive aura in the organisation which is very
beneficial in the working of the business (Østergaard and Marinova, 2018).
TASK4
P7. Explanation of entrepreneur background and experience that hinder or foster
entrepreneurship
Background and experience of an entrepreneur can foster and at the same time can hinder
entrepreneurship and this aspect is explained below briefly using relevant examples-
Background-
Bill Gates original name was William Henry Gates III and was born in Seattle,
Washington on 28 October, 1955. He was born in a middle class family that have no connection
with entrepreneurship. So background of Bill Gates is not very influential that could helped him
in becoming entrepreneur but the experience that he got proved to be very crucial and changed
all the equations (Randolph, Li and Daspit, 2017).
Steve Jobs original name was Steven Paul Jobs was born in San Francisco, California on
24 February, 1955. He was a adopted child but grew up in a foster family that took care of him as
a child. Though Steve Jobs was adopted still he doesn't have any connection with
entrepreneurship neither from the side of his biological parents and nor from the foster family
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but he didn't took it as a disadvantage and his reluctance to give up made him a successful
entrepreneur (Ratten, Ferreira and Fernandes, 2017).
Experience-
Bill Gates as discussed earlier was not sound enough in terms of background but his
experience was immense that made him one of the most successful entrepreneur of all time. As
he was very keen to know about different technologies and made a program named tic-tac-toe
that is helpful in playing gamed in his teenage (Trehan, Higgins and Jones, 2018). This was a
starting for Bill Gates and after than in the year 1975 he founded a software business that is
largest in the world that is Microsoft with his friend. Now he is philanthropists, developer of
software, and a business magnet too.
Steve Jobs background was not good enough but still he managed to be on the list of
one of the most successful entrepreneurs of all time. In his starting days he was very involved in
electronics, other gadgets, and various other things. He worked as a mechanic too for some time
and after that job he started collecting dismantled items of computer and then assembles it and
make it a good one that can be used and after that selling it to others (Snow, 2016). This was a
stepping stone and after that he founded Apple company in the year 1976 with one of his friends
and this changed the electronic market drastically which proved very beneficial for both of them.
CONCLUSION
From the above report, it can be concluded that Entrepreneurship and Small Business
Management refers to use of entrepreneurial skills for setting up small businesses and managing
them effectively and efficiently to earn higher-level profits in the future. There are different
types of entrepreneurial ventures and they can related to the typology of entrepreneurship. There
are similarities as well as differences in the entrepreneurial ventures. Micro and Small
Businesses create an impact on the economy. There is an importance of small businesses and
business start-ups for the social economy. Successful entrepreneurs have certain traits and skills
which makes them different. Aspects of entrepreneurial personality can affect entrepreneurial
motivation and mindset. The background of the entrepreneurs can either foster or hinder the
process of entrepreneurship.
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REFERENCES
Books and journals
Audretsch, D. B. and Lehmann, E. E., 2017. Economic performance and the knowledge spillover
theory of entrepreneurship: a comment. The Journal of Technology Transfer. 42(5).
pp.1234-1235.
Babunashvili, T., 2019. The role of innovative entrepreneurship in small and medium-sized
business and the potential of alternative energy in Georgia.
Baker, T. and Powell, E. E., 2019. Entrepreneurship as a new liberal art. Small Business
Economics. 52(2). pp.405-418.
Bello, M. A., 2019. Entrepreneurship in Sub-Saharan Africa: an exploratory study of
entrepreneurial opportunities identification among early-stage small business owners in
Nigeria (Doctoral dissertation, Keele University).
Dana, L. P., Grandinetti, R. and Mason, M. C., 2016. International entrepreneurship, export
planning and export performance: evidence from a sample of winemaking
SMEs. International Journal of Entrepreneurship and Small Business. 29(4). pp.602-
626.
Harrison, R. T. and Leitch, C. M. eds., 2018. Research handbook on entrepreneurship and
leadership. Edward Elgar Publishing.
Horodnic, I. A. and Williams, C. C., 2019. Evaluating policy approaches for tackling informal
entrepreneurship. Journal of Small Business and Enterprise Development.
Kabange, M. M., 2019. The interplay of different types of capital on amplifying small business
entrepreneurship performance in Cameroon: a case of Douala and Yaounde(Doctoral
dissertation).
Mills, K. G. and Dang, A., 2020. Creating “Smart” Policy to Promote Entrepreneurship and
Innovation. In The Role of Innovation and Entrepreneurship in Economic Growth.
University of Chicago Press.
Nguyen, B., 2020. Local institutions on small firm investments: degrees of institutional
persistence matter. International Journal of Entrepreneurship and Small
Business. 41(1). pp.33-57.
Nguyen, C., 2018. A qualitative study of factors that influences entrepreneurial intentions among
business students and small business owners. Journal of Asia Entrepreneurship and
Sustainability. 14(1). pp.3-27.
Østergaard, A. and Marinova, S. T., 2018. Human capital in the entrepreneurship
ecosystem. International Journal of Entrepreneurship and Small Business. 35(3).
pp.371-390.
Randolph, R. V., Li, Z. and Daspit, J. J., 2017. Toward a typology of family firm corporate
entrepreneurship. Journal of Small Business Management. 55(4). pp.530-546.
Ratten, V., Ferreira, J. J. and Fernandes, C. I., 2017. Balkans entrepreneurship: the role of
internal and external knowledge for business creation. World Review of
Entrepreneurship, Management and Sustainable Development. 13(2-3). pp.126-140.
Trehan, K., Higgins, D. and Jones, O., 2018. Engaged scholarship: Questioning relevance and
impact in contemporary entrepreneurship/small and medium-sized enterprise
research. International Small Business Journal. 36(4). pp.363-367.
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Snow, R., 2016. The Entrepreneurship Center at the Mississippi Development Authority: An
Assessment of the State’s Small Business Engine (Doctoral dissertation, University of
Mississippi).
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