Entrepreneurship and Small Business Management

This report discusses the concepts of entrepreneurship, different types of entrepreneurial ventures, and their impact on economic growth. It also explores the similarities and differences between ventures, the role of micro and small businesses in the UK, and the importance of small businesses and business start-ups in the country's social economy. Study material and solved assignments on Entrepreneurship and Small Business Management are available at Desklib.

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Entrepreneurial ventures........................................................................................................3
P2: Similarities and differences between ventures......................................................................5
LO2..................................................................................................................................................7
P3: Impact of micro and small businesses...................................................................................7
P4: Importance of small businesses and business start-ups.........................................................9
LO3................................................................................................................................................10
P5: Characteristics traits and skills of successful entrepreneurs...............................................10
P6: Aspects of entrepreneurial personality................................................................................12
LO4................................................................................................................................................13
P7: Background and experience hinder and foster entrepreneurship........................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is a quality which is always existing inside an entrepreneur. There is
entrepreneur is a person who find a new business opportunity in the market, and then open or
start its enterprise for gaining effective returns in the selected market segment. Nowadays
different types of entrepreneurial ventures operate by the various types of entrepreneurs. In this
dynamic and modern world, it is very necessary to an entrepreneur to provide such products and
services in the market which still has provided by any other company or company. Exclusiveness
in products and services is highly required in initial stage any enterprise, so an entrepreneur
should properly consider this factor. There are these all businesses or ventures are plays very
excellent role in economic growth of the country. This report discusses actual concepts of
entrepreneurship. Major role of micro and small businesses in economic growth also has been
discussed in this report. There are some main characteristics and skills also has been discussed in
this report which each entrepreneur needs to be improved for becoming a successful
entrepreneur.
LO1
P1: Entrepreneurial ventures
Currently there are different entrepreneurial ventures existing in various market segments
(Boohene and Agyapong, 2017). For example; high growth, medium, lifestyle and survival.
These major entrepreneurial ventures or enterprise have been discussed below;
High Growth: High growth ventures always runs at the large scale in the market. Basically,
most high growth ventures run their operations at the international level, because these always
has very large structure. Currently the British Petroleum in the best example of high growth
venture, because it serves across the UK and in the many other countries as well. high growth
ventures mostly started by those entrepreneurs who has always passionate for achieving high
success in their respective life. Strong planning, marketing, HRM and finance functions are
highly required in high growth ventures. There are high growth ventures always provides great
employment opportunities within any place, because their operation spread at the very large scale

within market. That’s why they required large number of human resources who day or night
work within their daily operations for achieving final goal.
Medium: Medium-sized venture always operates their daily operations at the regional or
national level (Siqueira, Webb and Bruton, 2016). These medium-sized ventures not able to
generate high employment opportunities in the market, because their operations not spread like
high growth ventures. Currently there are Iceland food ltd. company in the best example of
medium-sized venture within the United Kingdom. Basically, Iceland food ltd. is one of the most
popular retailers in the UK. Most medium-sized ventures started by mainly those entrepreneurs
who has quality of run a business or company. Generally, medium-sized ventures believe in
using high technology within their daily operations for gaining huge competitive advantage
within selected market segment. Effective planning, marketing, HRM and finance functions are
required in high medium-sized ventures.
Survival: Earn high profit within various market segment is not the main objective of an
entrepreneur behind operating a survival venture, because a survival venture always operates to
work in social welfare. There are the children’s society it the best example of survival venture.
Basically, it is a famous charity organisation within the UK. There are charity and donation main
sources of earning for this survival venture. Survival ventures generate very less employment
opportunities in the comparison of high growth and medium ventures. There is no need of strong
planning, marketing, HRM and finance functions in the survival ventures.
Lifestyle: Lifestyle type of ventures has always started by those entrepreneurs who want to try
an open a small business intimation stage for reaching high success in the future. These has no
required to use hi-fi technology as high growth ventures. An entrepreneur is required very low
cost for starting a lifestyle venture. There is ordinary planning, marketing, HRM and finance
functions are required in lifestyle ventures.
Typology of Entrepreneurship
Various entrepreneurial ventures are fully relating with this typology of entrepreneurship
(Bridge, 2016). Basically, there are three types of entrepreneurship exists, like; large, scalable
and survivor etc. These different types of entrepreneurship have been discussed below;

Large: Large entrepreneurship mainly includes those entrepreneurs which has ability to gain
very high growth within various market segments. There is large entrepreneurship is always able
to find various business opportunities in different market places. Basically, high growth ventures
are completely relating to this large type of entrepreneurship, because only public ventures are
capable to run business operations at the large scale in the market.
Scalable: Scalable entrepreneurship has included those entrepreneurs who always come with a
unique and exclusive idea for gaining very high profit in market. In this situation, there are high
growth and medium-sized ventures are completely relating this type of entrepreneurship, because
both ventures have capabilities to implement different unique ideas in their business operations.
Social: Social entrepreneurship has included those entrepreneurs who run their operations only
for working in the social welfare. In this situation, only survival ventures are relating to this
social type of entrepreneurship, because a survival venture never works for earning profit in the
market (Dupuis, 2018). The main objective of a social entrepreneur is to maintain a happy and
healthy environment within the society.
P2: Similarities and differences between ventures
There are various similarities and differences existing between entrepreneurial ventures.
Some major similarities and differences of various ventures has been discussed below;
Similarities
Brand Image: There are each venture (high growth, medium, survival) always takes various
productive steps towards making their high brand image in the market. top-level management
within every venture is always responsible to maintain a positive brand image in various market
segments, because when any venture maintains its positive brand image in the market, then it
will be able to gain excellent results in the market. The main reason behind statement is, most
people within market always like to take products and services from those ventures who has
positive brand image. In this satiation, many times all ventures fulfil CSR (corporate social
responsibility) as well, because those ventures always has high value in the market which fulfils
CSR on time.

Human Resource: A venture can’t run its different activities or operations without involving
human recourse inn its workplace (Kedah and et.al., 2019). There are human resource refers
employees or people of an organisational. In this situation, employees are one of the major
resources for a venture who day of night put their huge efforts in the workplace. There are top-
level management of all ventures always take many productive steps towards gaining effective
employees, because if any venture has a workforce of effective employees, then it can gain
excellent results in the market. On the other side, these all ventures (high growth, medium,
survival) provides some productive training sessions also to improve performance level of their
employees.
Fund: Every venture has highly required specific fund also to run their various operations in the
market. A venture is not able to achieve its objectives without specific fund or budget. There is
all high growth, medium and survival ventures use various potential funding sources for
fulfilling their financial needs. Top-level management of each venture always need to raise fund
from different sources, because no venture can survive in the market without using appropriate
fund. There is fund give opportunity to each venture or business to turn its various decision into
actions.
Differences
Basis High Growth
Ventures
Medium-Sized
Ventures
Survival Ventures
Scope High growth ventures
always run their
various activities at
the large scale in the
market (Burton,
Sørensen and
Dobrev, 2016). A
high growth venture
always has very large
size in the
comparison of
Medium-sized
ventures always have
something less scope
in the comparison of
high growth ventures.
Most medium
ventures mostly run
their business
operations at the
regional and national
level. Currently only
A survival venture
always runs its
operations at very
low scale in the
market. These
ventures expand their
services on the basis
of their fund inflow.
For example; a
survival venture gains
high fund in charity

various businesses.
Most high growth
ventures always able
to run their
operations at the
international level.
few medium ventures
are existing in the
United Kingdom
which run their
operations in the in at
the international
level.
or donation, in which
it can easily expand
its services at the
international level.
Shareholders Companies or
Businesses which
comes under high
growth ventures are
always sells their
shares publicly.
People within the
market can easily
purchase shares of
high growth ventures,
because most public
ventures sells shares
publicly to raise huge
fund.
Most businesses
within medium
ventures not sells
their shares publicly,
because many times
owners and upper
management of
medium ventures
offers shares to only
their close people,
like; friends and
family members etc.
Survival ventures
always have zero
involvement of
shareholders. Reason
is, social ventures not
works for earning
high profit (McNally,
Honig and Martin,
2018). These
ventures raise fund
only through their
charity and donation.
Technology High growth ventures
have always required
very high technology
in their daily business
operations, because
these ventures run
their operations at the
large scale in the
market (Nambisan,
Siegel and Kenney,
Medium ventures
also always need to
implement
technology, but not
high-fi technology as
high growth ventures.
Reason is, a medium
venture always run it
business operations
some selected zones,
Most survival
ventures not use
high-fi technology,
because these
ventures have no
need of producing
different products and
services. These
ventures use only
small technological

2018). Basically,
when a venture runs
its operations at the
large scale, then it
highly required high-
fi technology to
properly operate it’s
all operations.
that’s why it can run
its operations with
ordinary technology
as well.
tools and gadgets,
like; calculator,
personal computer,
smart phone etc.
LO2
P3: Impact of micro and small businesses
Currently micro and small businesses play very great role in the UK, because the country
is easily able for growing its economic conditions with the support of these businesses or
ventures. Currently the United Kingdom is one of the richest countries in the world because of its
various micro and small businesses. Without these all businesses, the UK can’t maintain its high
reputation in all around the world (Niosi, 2018). Some major data which shows the contribution
of micro and small businesses
Currently 5.9 million businesses or ventures are running in the United Kingdom, in which
5.82 businesses are only small and micro (Essential Facts You Should Know about SMEs in the
UK, 2019). It means, currently there are number of small businesses is very high in the country.
These 5.82 million businesses are 99.9% of the total businesses of the United Kingdom.
These micro and small ventures or businesses have provided great employment
opportunities to approx. 16.9 million people in the UK. In short, 60% employment of total
employment percentage have been given by only small businesses or ventures in this country. On
the other side, these small ventures have generated turnover of £2.2 trillion in the last financial
year, which was 52% turnover of all ventures and businesses. This contribution of different
micro and small businesses has very positively affected small economic environment of the
United Kingdom.

Figure 1: Contribution of micro and small businesses in the economic growth of the United
Kingdom
Source: Essential Facts You Should Know about SMEs in the UK, 2019
Evaluation
On the basis of these findings, nowadays lots of people in the United Kingdom are
completely depends on various micro and small businesses for employment purposes. Without
these ventures or businesses, the UK is not able to improve and develop its existing economic
conditions. Currently the United Kingdom is one of the richest countries in the world because of
its various micro, small and medium sized businesses or ventures. These ventures are very
effectively contributing in GDP of the UK as well.
P4: Importance of small businesses and business start-ups
Nowadays different small businesses and business start-ups plays very great role in
social economy growth of the United Kingdom (Liang, Wang and Lazear, 2018). There is
development of social economy is very important task to the government of any country, in
which government of the United Kingdom is also responsible to grow its social economy. But
currently government of the UK no need to put its huge efforts for developing its social
economy, because existing small businesses and business start-ups plays an excellent role for
developing the UK’s social economy. There is some major importance of these businesses and
start-ups has been discussed below;

Employment Opportunities: Business start-ups and small businesses provides very excellent
employment opportunities to different local people of the United Kingdom. Currently many
people within the country are completely depending on these businesses or start-ups for fulfilling
their job needs. When any country has very less unemployment, then that country can easily
grow its social economy. In this situation, currently the United Kingdom is developing its social
economy with the support of its existing small businesses and business start-ups. In this dynamic
world, unemployment is very big issue for different countries, but these all businesses and start-
ups highly contributes in decreasing levels of unemployment.
Innovation: Currently different small businesses and start-ups innovates various products and
services in the country. In this situation, the United Kingdom is able to achieve very high foreign
exchange by this factor of start-ups and small businesses. Currently innovation is everything for
a business, because if businesses and starts-ups of a country produces different innovative
products and services (Garud, Gehman and Tharchen, 2018). Then that country can easily earn
very high foreign exchange by selling that innovative products in the market.
Encourage Youth: Small businesses and business start-ups encourages and motivates also to
youth for starting more new ventures and businesses within the country. This factor of small
businesses and business start-ups is very favourable to grow social economy of the UK. When
most youth starts new businesses and start-ups, then these youth can indirectly generate lots
employment opportunities as well. This is one of the best contributions of different small
businesses and business start-ups in the social development.
Evaluation
Small businesses and business start-ups of the United Kingdom has putted very positive
impact on its different levels of economy. For example; local, regional, national and
international. There are these businesses provides their services at every level of the economy.
Nowadays local people in the UK are capable to fulfil their different needs with the support of
these businesses. Existing government of the UK need to motivate its youth for becoming a
successful entrepreneur, because this step of local government can increase number of businesses
in this country. It is too necessary to increase businesses within the country, because when
businesses increase in this country, then these businesses can generate very high employment

opportunities also across the United Kingdom (Zucchella and Magnani, 2016). That’s why
government of the UK has always required to promote micro, small and medium sized
businesses within its authorised zone.
LO3
P5: Characteristics traits and skills of successful entrepreneurs
A successful entrepreneur always has some different characteristics and skills in its
personal life in the comparison of other business managers. Currently Sir Richard Charles
Bronson is one of the best examples of successful entrepreneur. Basically, Mr. Bronson is the
founder of Virgin group. By using own extra-ordinary characteristics and skills, Mr. Bronson
was able to build very high brand image of its enterprise. Nowadays many new entrepreneurs
completely follow Sir Richard Bronson for learning different entrepreneurial skills from him.
There are some major skills and characteristics of Mr. Bronson has been discussed below which
can support to a new entrepreneur for becoming a very successful entrepreneur in the selected
industry or sector.
CHARACTERISTIC TRAITS
High Confidence: This is the first characteristic trait of Mr. Bronson which every new
entrepreneur should follow for achieving high success in the entrepreneurship (Kreiser and et.al.,
2019). There is high confidence is very necessary for an entrepreneur, because if an entrepreneur
has trait of high confidence, then its will be able take any risk in its entrepreneurship career. Of
course, sometimes an entrepreneur has required to take risk for getting appropriate results, in
which this high confidence trait helps to entrepreneurs for taking risk. Currently those
entrepreneurs gain effective results in the market who has high confidence in the comparison of
other entrepreneurs. That’s why every entrepreneur should learn this trait from Mr. Bronson.
Creative: Creativeness is also highly required to become a successful entrepreneur like Sir
Richard Bronson. Mr. Bronson is very creative person, because he always innovates such
services within its business environment which provides excellent return to him in ten market.
Within the support of this trait, he was able to make its enterprise very popular in all around the
world. People or customers within market always like to buy services from the Mr. Bronson’s

company, because his company maintains exclusiveness within its services (Zhang and Cueto,
2017). In this situation, many new entrepreneurs should learn this trait also from Mr. Bronson for
becoming very successful entrepreneur.
Punctual: Sir Richard Bronson are very punctual in its personal life. This trait also is very
supportive to him for gaining very high return in the market. He is easily able to be punctual,
because he has very excellent time management skills. In this situation, every new entrepreneur
should learn from Mr. Bronson about how to be highly punctual within personal life. Basically,
punctual train helps to an entrepreneur for completing its each entrepreneurship task on time.
That’s why this characteristic trait is plays very excellent role to a person for becoming a
successful entrepreneur.
SKILLS
Communication skills: Mr. Bronson has well-developed communication skills also which
supports him to properly communicating with different people. According to Mr. Bronson, if any
person has well-developed or well-improved communication skills, then that person can easily
put very positive impression on other people. This is the main reason that, every person should
develop its communication skills for becoming a successful entrepreneur.
Decision-making skills: Effective decision-making skills also has highly required to become a
successful entrepreneur (Brush and et.al., 2019). Sir Richard’s decision-making skills are very
productive, because he doesn’t take too much time for taking a productive decision. In this
situation, other entrepreneurs also need to follow these skills of Mr. Bronson. Different
entrepreneurs should take some productive steps for developing their decision-making skills.
Problem solving skills: Problem solving skills also plays excellent role for becoming a
successful entrepreneur. Mr. Bronson has well-improved problem-solving skills as well.
According to Sir Richard Bronson, problem solving skills gives opportunity to an entrepreneur
for solving different challenges and problems of its entrepreneurship career. That’s why very
new entrepreneurs should focus on developing these problem-solving skills.

P6: Aspects of entrepreneurial personality
There are various aspects of entrepreneurial personality are directly reflecting to
entrepreneurial motivation and mindset. An entrepreneurial personality always be highly
motivated in its personal life, because motivation plays very important role in the all over growth
of an entrepreneur. On the other side, there are positive mindset also highly matters in the
entrepreneurship. In this situation, each entrepreneur always needs to maintain positive mindset
and mentality within its personal life, because positive mindset mostly encourages to people for
achieving very high growth in its entrepreneurship career. Many times, different factors
negatively affect to the mindset of an entrepreneur. In this situation, every entrepreneur should
remove those all factors from its personal life which can affect bits career of entrepreneurship. It
is very necessary task to an entrepreneur, because many times an entrepreneur become failure
because of its negative mentality. Currently there are various motivation theories available which
an entrepreneur should highly consider in its career of entrepreneurship (Kuratko and Morris,
2018). These all motivation theories will defiantly support to each entrepreneur who will follow
them in its daily operations of entrepreneurship.
On the other side, there are self-motivation abilities also always has highly required in an
entrepreneurial personality. In this situation, every entrepreneur should try to develop its self-
motivation abilities, because self-motivation always supports to an entrepreneur for motivating to
become a successful entrepreneur. There is each entrepreneur should maintain that mindset
which can run its entrepreneurship career always on the progressive path. Basically, there are
positive mindset always provides continuous progress to an entrepreneur. That’s why every
entrepreneur always need to be highly motivated in its decided goals in decided time period. On
the other side, there are positive mindset supports to entrepreneurs for properly dealing with
different challenges of entrepreneurship.
LO4
P7: Background and experience hinder and foster entrepreneurship
There are a lot of entrepreneurs who are not educated enough but they have confidence to
start up their own businesses with their unique ideas. Richard Branson is one of them who started
his magazine called student which made him confident enough to keep investing in new ideas

which he has in mind. Richard dropped out of school when he was 16 years old and started his
own businesses ever after (Vollmer and et.al., 2020). He did not have a background of successful
or upper-class family which supported his dreams but he had himself to start up his own
organization which was named Virgin. Virgin today has expanded in a lot of industries like
Trains, studio recording, etc which is making Richard be net worth of $4.4 billion. It is very
essential in an entrepreneur to have skills like risk taking because they are new to the industry
and the product which they are expanding into is new. These products can work in the market
and may not work as well which is why it is very important for the entrepreneurs to be able to
take the risk. Richard had lost its company to EMI by $1 billion which made him feel very bad
and he lost hope. It was after sometime that Richard gathered the courage again to expand and
enter the market again so that he can again stand up on his own feet.
Richard Branson is the fourth richest man in United Kingdom which is all because of his
hard work and not because of the family he comes from. Richard’s father was a lawyer and
mother were a flight attendant which and Richard faced Dyslexia in his childhood which made it
even difficult for him to stand up on his own feet in the market. There is a lot of competition in
the market which Richard had to face and due to lack of knowledge and experience in the market
he lost his first company to EMI, though he sold it for a good amount but he was not satisfied
(Gomaa and et.al., 2017). Richard wanted to help the people because he also suffered from a
problem when he was young which is why he took up V2 studio up again in the market and
started again and within no time he could stand up on his own feet again in the market. It was
when Richard entered the market again that time, he had experience how to deal with situations
and what he should be investing in which is going to make his company grow in the market.
Richard took a lot many decisions in the second time he entered the market which is making him
successful and unique in the market. The competitors in the market did not want to compete with
him again because he had a different take and knew how to deal with all the situations. He has a
solution which is cost saving for the organization which is a great factor for the organization to
survive in the market.

CONCLUSION
It can be concluded there are different types of entrepreneurial ventures exists in the
market, in which these ventures are completely relating with the typology of entrepreneurship.
Currently there are micro, small and medium sized businesses gives great contribution in the
United Kingdom’s economic growth. Currently the UK is one of the richest countries in the
world because of its various micro, small and large sized businesses. There are lots of UK’s
ventures are successfully running their business operations outside of this country. It means, such
ventures are providing very high foreign exchange to the country. Currently each country wants
to increase its export ratio and decrease its import ratio, because when a country mostly exports
different goods and services in other countries, then it can easily gain very high foreign
exchange. That’s why the UK is able to gain high foreign exchange within the support of its
different businesses or ventures. Mainly these various businesses have provided excellent
employment opportunities to different people within this country. On the other side, there are
some major characteristics and skills also has been discussed above which every new
entrepreneur should develop in its personal life to become a successful entrepreneur.

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Online
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through: <
https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk >.