Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses the different types of entrepreneurial ventures and their associated typology. It also explores the impact of small and micro businesses on the economy and the importance of small and start-up businesses in social and economic growth. Additionally, it highlights the various traits, skills, and characteristics that are necessary for success in entrepreneurship.

Entrepreneurship and
Small Business
Managament

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different type of entrepreneurial ventures and associates with different typology................3
Critically analyses typology of entrepreneurial ventures............................................................4
P2 Differences and similarities between entrepreneurial ventures..............................................5
LO2..................................................................................................................................................7
P3 Impact of Small and Micro business on economy..................................................................7
P4 Importance of small and start up business in growth and development of social economy. .8
LO3..................................................................................................................................................9
P5 Various traits, skills and characteristics that need to be present in entrepreneur...................9
P6 Different entrepreneurial aspects of personality and the impact on the entrepreneurial
motivation and mindset..............................................................................................................10
LO 4...............................................................................................................................................11
P7 Impact of background in hindering or fostering of the entrepreneurs..................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship refers as an ability of people or individual to establish new and
innovative type business idea by taking risk to keep hope that maximize profitability will be
earned. So, entrepreneurship is the term of developing a new business venture which helps to
fulfil all needs by making lots of purchasing of products and services. A successful entrepreneur
has some specific skills, knowledge and potential for running business smoothly in the
competitive market. The brief study provides understanding about different type of entrepreneur
venture who plays significant role within country in this report.
LO1
P1 Different type of entrepreneurial ventures and associates with different typology
There is various type of entrepreneurial such as public, private and voluntary ventures
which are described as follows:
Private enterprise
These type organization operates by individuals or two and more partners without
involving governmental activities and offers wide variety products and services to the customer.
The main objective of these corporations is to earn high profit in it’s sector and establishes good
relationship with the user. There has an example of Next plc that is a private corporation which is
headquartered in England, UK. It is a British multinational retailer company which is operated in
multiple sectors i.e. clothing industry, footwear industry and home accessories as well. it run it’s
business in various countries i.e. Asia, Europe, Middle East and UK through it’s 500 retail stores.
Management of Next plc is mainly focused on the customer’s requirement’s, preferences and
desires and meets their objectives by offering expected products with value-added services. The
organization has specialization in clothing so it is famous as clothing retailer (Burns, 2016). it
has established loyal brand image in customer’s mind to stand on it’s commitment.
Public enterprise
It is operated by owners or in partnership to generate high revenue. Such type enterprises
are controlled by shareholders who are elected by general public so that they can fulfil needs and
preferences of customers can fulfilled effectively. M&S is a great example of public limited
company which is headquartered in UK and posses’ wide product line. The main objective of the
organization is to give value to the customers choice so that achieves high profitability within
company (Cramer, 2016). The main vision of the organization is to influence customer’s
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experience by providing high quality products and services like financial services to the
customer at reasonableprice and in return gain high selling revenue within company.
Voluntary enterprise
These type organizations are charitable that has goal to offer good public services as
result improves their lifestyle. Such kind organizations are designed to offer services and
supports like financial support, medical support and others to the public which improves their
living standard like other potential people. Oxfam is the best example of voluntary organization
which is headquartered in UK has main goal to eradicate poverty across the UK and offers better
life to the people who does not enable to live independently (Crick, Chaudhryand Crick,
2017).The main mission of Oxfam’s members is to improve people life by suppressing and
eradicateall social evils such as gender inequality, poverty, unemployment, discrimination and
others. Such kind corporations do not have goal to earn profit but keeps people wellbeing within
country. It is non-profit type enterprises whereas staff does not get any salary so they are known
as volunteers.
Critically analyses typology of entrepreneurial ventures
Lifestyle ventures
Lifestyle ventures are specifically associated with public needs and preferences which
has motto to influence quality of people’s living standard by giving value-added services. These
type ventures entrepreneur doers not have concentration on market and competitors because they
have high concentration on people wellbeing. Such kind ventures have fewer resources of
income but runs business in particular segment instead of multiple one. The main disadvantage
of the lifestyle ventures is that it requires high investment and creative workforce so that they can
differentiate their brands from others in the business market (Meyer, 2019).
Small profit ventures
These type ventures start up it’s new business, products and services in existing
corporation which gives values to the public but generate small profit by entrepreneurial
actions.such kind ventures needs string management who can determine opportunities and risks
in the business market and helps to uplift brand position by generating high profitability within
company. The main objective of entrepreneurial ventures is to improve potential in the business
to stimulate growth in a effective way.
High growth ventures
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The high growth ventures keep similarity like small profit ventures and lifestyle ventures
in term of public welfare but keeps difference to them in term of profit earning. High growth
venture’s objective is to generate high revenue in the business market and beat competitors by
offering high standard quality products to the customer (Morris, and et.al.,2018). These kind
ventures keep high attention on competitors’ activities in the business market instead of
customers and provides those products and service to them which generates competitive
advantage and captures large market shares. The main drawback of such kind ventures is that
they need highly skilled and talented staff and high investment to run it’s business precisely in
the competition market.
P2 Differences and similarities between entrepreneurial ventures
Similarities between lifestyle venture, small profit venture and high growth ventures
Management: It is one of the most common similarities between lifestyle, small profit and high
growth ventures. The reason behind is that they all are effectively aligned lots of resources which
assists to achieve specific objectives within period of time. However, managers of all ventures
have primarily role to develop profitable opportunity for the organization which fulfil all goals
either long-term or short-term on time (Neill, Metcalfand York, 2017). Therefore, managers are
effectively managed and utilized all resources within company which obtains optimum profit and
expands business and it’s operation positively.
Differences between lifestyle, small profit and high growth ventures
Attributes Lifestyle ventures Small profit
ventures
High growth
ventures
Decision-making
authority
In these type
corporation,
shareholders and
management takes
decision based on the
customer’s needs and
expectation so that they
can offer value added
products and services
to them and achieves
There are some
corporation whereas
decision is taken
through member
who invested for
offering support so
that maximize profit
can offer to the
society.
On the other hand,
High growth
ventures takes
decision based on
market environment
condition so that can
achieve competitive
advantage in the
business market.
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all objectives of the
company in predefined
period.
Scale of operation
These kind ventures
are wider as compared
high growth venture
therefore it can recruit
large number of people
within firm. These type
ventures posses’ large
market share on it’s
certain products and
services and offers
them across the world,
in other word these
ventures operates
multiple countries and
offers worldwide
products services.
These type ventures
has strong
workforce but
posses’ limited
resources and funds
in the firm so it has
small scale business
operation the
business market.
On the other hand,
these ventures have
small or big scale
operations
accordingly capital
and resources
availability but in
the most of instance
posses’ small-scale
operations rather
than lifestyle
ventures (Ghouse,
McElweeand
Durrah, 2019).
Objectives or goals of
the businesses’
The main goal of
lifestyle ventures is to
generate high profit
that can increase
shareholder’s funds
and offers resources at
affordable rate. But
they have high
concentration on
customer’s needs and
expectation instead of
market advantage
While small profit
growth ventures
have motto to offer
support to those
people who are
dealing with social
evils like poor
financial condition,
discrimination,
gender inequality
and others. These
kind ventures does
The main objective
of the high growth
ventures is to earn
more and more
revenue while
offering best
customer
experience.
Therefore, they
mainly focus on
competitors
activities and
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which denotes that they
want to improve
quality of people life of
each customer by
offering high quality
products at reasonable
price as much as
possible.
not have mean with
earning high profit
on product and
support services.
This motive denotes
that small profit
ventures are act as
well wisher of
people within
country.
demands of product
in the competition
market so that they
can offerthose
products to the
customer which
gives value of their
money and generate
high competitive
advantage in the
competition market.
LO2
P3 Impact of Small and Micro business on economy
Small business refers to enterprise that have limited employees ranging from 10-50 that
work together for accomplishment of specific tasks and earn better living fort family members.
Micro business have small scale of operation, resources as compared to small enterprise thus
employing individual between 0-9 so that various services can be render to customers and
sufficient amount of profit can be earned (Bylund and McCaffrey, 2017). Therefore various
impact of small and micro business on economy are as follows:
Turnover: Small and micro business have contributed in overall generation of two third
employment opportunities and total value addition in GDP that is 52.8%. It has contributed
generation or production of various products and services and satisfaction of customers needs
beyond their expectancy. Small and micro enterprise provides products at reasonable cost that
have enhancement total turnover of private sector and growth of economy.
Increase in competition level: Many small and micro businesses are continuously growing in
Romania due to increased in demand of various product and services. Therefore it has provided
opportunities to many individual to start their own business for earn sufficient profitability and
market share (Fairlie and Fossen, 2018). Small enterprise due to increase competition has
brought innovation and creativity so that wants of people can be fulfilled in effectively manner.
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Growth in GDP or economic development: Small and micro business have actively
contributed in adding value to GDP of country such as with a average growth of 5.84% and
average value addition in 2.24%. Economic of Romania have grow from 48.1% to 48.6%
because of development and growth of small and micro business. Therefore total increment in
GDP due to small and micro business is 71.3 in 2010.
Employment Opportunities: 99% business in Romania belongs to small and medium enterprise
that have contributed in generation of lot of employment opportunities for people. Job
opportunities have increased in Romania from 32% to 46.3% that have contributed in
enhancement of living standard of people.
P4 Importance of small and start up business in growth and development of social economy
Small enterprise and start-up business have limited resources and few customers that
operated to earn profit by providing products at lower rates so maximum number of people can
be influenced to make purchases. Small and Start-up enterprise are continuously growing that
have provided numerous benefits to local residents of country such as enhancement in their
disposable income and generation of employment opportunities.
Contribution in local government taxes: Small and start-up business that have more customers
and profitability have to pay taxes to government thus fund of companies is used for well-being
of various individual that live in particular society. There are some small and start-up
organisation that have huge turnover and market share thus they have paid taxes which is used in
development of various infrastructure and facilities for society or communities.
Better satisfaction of customer requirements: One of the main importance of small and start-
up business for social economy is that due to limited operation and close relationship with
customers companies are able to effective satisfied their needs (Wagner, 2017). They can easily
know about recent trends and customer preference thus take advantages of available
opportunities to expand their market share by manufacturing product as per their requirements.
Innovation: Small and start-up enterprise contribute in brining innovation and creativity within
society as newly established firm bring new ideas to influence or fulfilled customers needs for
achievements of organisational goals. These organisations can easily and rapidly changes their
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styles of operation, products and services in order to grow and survive in competitive market and
earn sufficient amount of profitability.
Improvement in living standard of people: Due to increasing small and start-up enterprise
many employment opportunities have been grow for individual that live in society. They can
easily get job as per their skills and capabilities therefore it has increased overall disposable
income of customers and lifestyles. People can easily get qualitative products and services at
reasonable rates that help in making their lifestyles better.
LO3
P5 Various traits, skills and characteristics that need to be present in entrepreneur
Entrepreneur have special skilled to bear risk, bring innovation and creative ideas so that
requirements of individual can be fulfilled. They have specialised characteristics, skills as
compared to manager of organisation. Manager does have ownership right whereas entrepreneurs
have full right to take all crucial decision of organisation. Manager minimise risk on the other
hand entrepreneurs have ability to take risk in order to get competitive advantages. Therefore
various characteristics, traits and skills that are present in entrepreneur are as follows:
Risk taking: Entrepreneur has ability to take higher risk in order to start new business and earn
sufficient amount of profit for growth and expansion of business. They are always ready to face
challenges, specific amount of risk to achieve specific goals. Such as Aristide Blank and Nicolae
Malana have taken financial and other risk to grab particular opportunities and start their
respective enterprise.
Independent: It is another trait; characteristics of entrepreneurs that stated it can take decision,
risk and face various challenges independently. Aristide Blank and Nicolae have independently
taken decision of business so that it can grow and expand its operation (Michael, Storey and
Thomas, 2017). Positive attitude have always motivated and inspired to take self starter move in
order to get differentiate position, status, respect as compared to other people in society.
Passionate: Entrepreneur are highly passionate about various activities of business thus devote
lot of time and energy for success and growth of enterprise. Nicolae has put its best efforts day
and night so that company can sustain in competitive market. She was highly passionate and
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concerned about benefits and losses of business thus formulated effective strategies to maximum
its profitability.
Creative and innovative: Successful entrepreneurs always find innovative or creative method
for performing specific task so that needs of existing as well as new customers can be fulfilled.
Both Nicolae and Aristide by introducing new and creative idea on continuous basis have
fulfilled wants of people in best possible manner and became of the successful entrepreneurs in
Romania.
Inquisitive: Entrepreneur have interest new and innovative things or have more and more
knowledge so that they can differentiate form other. Such as Nicolae and Aristide Blank are
always ready to have more and more knowledge about various things that helped them to bring
new changes in organisation so that it can gain competitive advantages.
P6 Different entrepreneurial aspects of personality and the impact on the entrepreneurial
motivation and mindset
An entrepreneur needs to have a certain category of personality traits that can be attributed to the
success of the entrepreneurial venture and the mindset that they utilise while operating on the
new venture idea that they have established, in order to identify the different personality aspects,
the Ocean Model of behaviour can be used. This model basically categorises 5 different
behavioural characteristics that impact the entrepreneurial mindset and the motivational level as
well (O.C.E.A.N Model of Personality, 2015). These can be identified as:
Openness: The openness indicates the level of curiosity that is possessed by an individual
towards the different things that either surrounds the people or the experiences that they incur.
People who are more open to incurring different experiences and can indulge in deliberation are
more creative than the ones who are rather closed and possess limited knowledge. It is necessary
for an entrepreneur to be inclined towards openness so that creativity and innovation can be
integrated and overall benefits can be drawn.
Conscientiousness: The trait of conscientiousness signifies the degree to which an entrepreneur
is disciplined and regulated rather than being spontaneous and quick in integrating the change in
the actions (Rossi, 2019). An entrepreneur should try to adopt a medium ground where they
should not be too disciplined in their approach as this will lack innovation but too much
spontaneity can also be extremely risk affecting the overall business.
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Extraversion: This basically refers to the ease with which the entrepreneurs are able to get along
with the other people i.e. their extrovert nature as opposed to the introvert nature that they might
possess. The entrepreneur is the one who start a new and innovative venture and therefore
relationship building and networking is very important in the success of the business. Hence it is
necessary to be an extrovert at least to an extent for the entrepreneur so that the necessary
contacts and relationships can be developed.
Agreeableness: The personality trait of agreeableness refers to the capability of getting along and
adjusting with different people having different belief systems and attitude (Doppelt, 2017). An
entrepreneur has to work with a multiple number of people that will assist them in fulfilling
different aspects and responsibilities of their business. Hence it is necessary to increase the
degree of agreeableness for the entrepreneurs so that they can operate more systematically.
Neuroticism: This is the last personality trait that has been included in the Ocean model and here
the emotional stability of the entrepreneur is evaluated i.e. how easily a person can get affected
by the things occurring in their daily lives and whether there is a tendency to perceive things
negatively amongst the entrepreneurs. This is a very important aspect that affects both
motivation and mindset of the entrepreneur where an individual who is more positive will be
able to meet failures more bravely and thus only these kinds of entrepreneurs achieve success in
the long run (Parker, 2018).
It is critical to identify that the multiple traits affect the overall motivational level and mindset of
the entrepreneurs and can either encourage them to work more exhaustively and skilfully
increasing the chances of success if their venture or it can lead to the development of the damage
to the manner in which business is performed.
LO 4
P7 Impact of background in hindering or fostering of the entrepreneurs
The background acts as the base on which the profound career and future of the entrepreneurs is
based. The background here signifies the family support, social and cultural environment, factors
that affect the overall decision making etc.
The owner and establisher of the Malaxa Factories i.e. Nicolae Malaxa is a well known
entrepreneur who is the leader in the locomotive industry in which he established the business
(The 5 most successful Romanian entrepreneurs of the last 100 years, 2018). Father of Nicolae
Malaxa passed away early when Malaxa was very young and he was raised by his mother and
11

sisters. He was often eve teased and faced a certain degree of hostility from his peers. He went
against the usual norms and after becoming an engineer he joined the Romanian Railways
Company and then later on switched multiple numbers of jobs. When Malaxa first took up heavy
loans to start up his factory, this was opposed by his family members stating that it was a foolish
decision to let go off a well paid job and begin a business of his own. This admittedly delayed
the overall process of the success of the factors which could have been achieved much quicker
by Malaxa if the said break of two years had not been taken (Kuratko, 2016). Hence the
background factors of Nicolae Malaxa had been more supportive of the dream with which he
was working and the early childhood had been more comfortable and encouraging.
Another example of entrepreneur that can be studied here is of Aristide Blank who completely
changed the outlook of the Marmorosch- Blank Bank (The 5 most successful Romanian
entrepreneurs of the last 100 years, 2018). Although this entrepreneur was convicted and sent to
jail where he later died, he can be attributed to be one of the most successful entrepreneurs with
the strong decision making skills and the ability to manage and lead even an almost bankrupt
organisation which made it successful once again. The childhood of Aristide Blank was very
obscure and his father was found to be an associate of the then notorious financier Marmorosch.
The wrath that he Blank had to face from the society and his friends was cruel hindered his
education as well his growth but then he decided to enter the management of the Marmorosch-
Blank Bank itself whose operation was termed as notorious (Read and et.al., 2016). Due to the
good and credible policies that re develop and implemented, the once defamed organisation
turned into an internationally reputed bank where the branches of the Marmorosch- Blank Bank
spread put in as many as 25 countries within 7 years.
Therefore both the entrepreneur show that strong will and positive attitude along with relentless
pursuit of the success are the aspects that lead to the success of the entrepreneur irrespective of
the fostering or hindering due to the background circumstances.
CONCLUSION
From the above discussioncan be analysed that entrepreneurs requires to have
entrepreneurial skills in order to start up business and runs it smoothly to generate high
profitability in the firm. It has concluded different types of entrepreneurial ventures i.e. public,
private and voluntary enterprises and associated with typology of entrepreneurship in this report.
It has analysed about similarities and differences among entrepreneurial ventures such as
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lifestyle ventures, small profit ventures and high growth ventures. Importance of small
businesses and business starts-ups for improving of social economy has concluded in this report.
Identify the characteristics traits and skills of successful entrepreneurs that differentiate them
from other firm managers. Critically has analysed background and experience that improved
positively and negatively, by comparing and contesting ideal entrepreneurs.
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REFERENCES
Books and Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Bylund, P. L. and McCaffrey, M., 2017. A theory of entrepreneurship and institutional
uncertainty. Journal of Business Venturing, 32(5). pp.461-475.
Cramer, S.M., 2016. Teaching and Researching Entrepreneurship: the Small Business Institute
2016. Ticker, 1(3), pp.7-9.
Crick, J.M., Chaudhry, S. and Crick, D., 2017. Risks/rewards and an evolving business model: a
case study of a small lifestyle business in the UK tourism sector.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fairlie, R. W. and Fossen, F. M., 2018. Opportunity versus necessity entrepreneurship: Two
components of business creation.
Ghouse, S.M., McElwee, G. and Durrah, O., 2019. Entrepreneurial success of cottage-based
women entrepreneurs in Oman. International Journal of Entrepreneurial Behavior &
Research.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Meyer, N., 2019. South African female entrepreneurs’ business styles and their influence on
various entrepreneurial factors. In Forum Scientiae Oeconomia (Vol. 7, No. 2, pp. 25-
35). Wydawnictwo Naukowe Akademii WSB.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Morris, M.H and et.al., 2018. Distinguishing types of entrepreneurial ventures: An identity‐based
perspective. Journal of Small Business Management, 56(3), pp.453-474.
Neill, S., Metcalf, L.E. and York, J.L., 2017. Distinguishing entrepreneurial approaches to
opportunity perception. International Journal of Entrepreneurial Behavior & Research.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Read, S., and et.al., 2016. Effectual entrepreneurship. Taylor & Francis.
Rossi, P., 2019. Conflicts in Leading and Managing Change: Towards a Reflexive
Practice. Leading Change in a Complex World: Transdisciplinary Perspectives.
Wagner, M. ed., 2017. Entrepreneurship, innovation and sustainability. Routledge.
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