Entrepreneurship and Small Business Management in UK Assignment

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Types of entrepreneurial ventures and their typologies....................................................3
P 2 Differences between three main entrepreneurial ventures...............................................4
LO 2.................................................................................................................................................6
P 3 Interpretation and assessment of impact of micro and small businesses over economy..6
P 4 Explaining importance of small businesses start ups in growth of social economy........7
LO 3.................................................................................................................................................9
P 5 Determining characteristic traits an skills of successful entrepreneur and their difference
with managers.........................................................................................................................9
P 6 Assessment of reflection of personality over entrepreneurial motivation and mindset. 11
P 7 Examining impact of background and experience over hinder and foster of
entrepreneurship...................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship refers to those business units that are concerned with those business
units that being set up by entrepreneur as to target a huge return with a huge amount of
uncertainty. Small business units on the other hand are businesses that have been started with a
small capital investment. Present study includes different types of entrepreneurial ventures and
their related typologies. Similarities and difference between entrepreneurial venture is also being
explained in this project. Further, it also provides illustration of impact of small and micro
business units over economy and social economy of UK.
In addition, the assignment also shows characteristic and skills of some major
entrepreneurs and their difference with managers. Furthermore, it also shows assessment of
reflection of entrepreneurial motivation and mindset over their businesses, hinders faced by them
along with a brief description of their background and numerous experiences.
Types of entrepreneurial ventures and their typologies
Entrepreneur is the person who assumes risk and manage activities in such manner so that
business can be established successfully. Entrepreneurship is the ability or skill of person that
makes them unique from other people (El Ebrashi, 2018). Various ventures are explained as
below:
Small growth venture
This is independently owned firm which is run by single entrepreneur. The long term
goal of such type of business is to sustain in the market for longer duration and generate money
on day to day bases (DeTienne, McKelvie and Chandler, 2015). Hairdressers, travel agents etc.
are example of small growth business. Such type of entity generally hires local citizens and pay
minimum salaries to them. Owner has to invest own fund in such kinds of business in order to
run the firm and also if they fail to generate profit then they have only option to shut down that
venture.
Large growth venture
This is another type of venture in which entrepreneur conducts operations at large scale.
It always prepares to provide high quality products to consumers in order to retain them in the
organisation for longer duration (El Ebrashi, 2018). Amazon is the great example of large
growth companies. Such kind of ventures make changes in their strategies with the changes of
taste or preference of consumers, raise competition etc. The main aim of large business is to gain

competitive advantage and enhance its profitability to great extent. Large business get funds
from banks, investors etc. and they may sell their assets or transfer it if they fail to generate profit
(Margiono, Zolinand Chang, 2018).
Social venture
This is another type of entity which aims to serve consumers well and improve their well
being. The major purpose of such kind of ventures is to fulfil social neds of consumers or
citizens. Non-profit companies, trust etc. can be example of social ventures.
Topologies of entrepreneurship:- Scalable entrepreneur typology: This type of typology pays more attention on
innovation. It aims to create new market or implement new ideas through which business
can grow well. This type of typology is implemented by social ventures. Life style typology: It is the type of typology in which entrepreneur reinvest the existing
profit in order to maintain competition in market (Neumeyer and Santos, 2018). Such
kind of business work at single location and do not much focus on expansion. This type
of typology is implemented by small growth businesses. Gazelles typology: This is another kind of entrepreneurship typology which is generally
implemented by high growth companies that always focuses on consistent expansion and
raising employment opportunities (Rawhouser, Villanueva and Newbert, 2017).
Difference between ‘serial entrepreneurs, intrapreneurs and owner-managers
Basis Serial entrepreneur Intrapreneurs Owner managers
Activities They are directly
involved in the
organisation.
Their involvement in
the business is more
than delegation.
Their involvement in
the organisation is
upto the delegated
authority.
Risk taking They have moderated
risk in the business.
Intrapreneurs are
medium risk in the
business.
They need to be
careful for their
working, although
they do not take any
kind of risk of

business.
Motive Their major
motivation is to create
range of opportunities
to generate money.
Their motive is to
enhance the ability of
company to gain
corporate rewards.
A manager's motive is
to take promotions and
rewards from
organisation.
Differences between three main entrepreneurial ventures
Basis Large growth Small growth Social ventures
Type This high 000growth
organisation comes
under the public-
private venture and
joint ventures type.
This low growth
ventures also comes
under the start up
(Burchardt ant et.al,
2016).
This social ventures
comes under franchise
venture type.
Aim Aim of these ventures
to earn more profit and
to maximum profit.
Aim of the small
business venture is to
deliver the small-scale
products at low price
to the customers.
This social venture is
set up with the aim of
gaining sustainable
social environment in
the society and work
for their betterment.
Products This high growth
ventures includes the
large retail
supermarket,
manufacturing of car,
big hotels and many
more.
Low growth venture
includes grocery store,
bakeries, hair dresser,
photographers,
restaurants, etc
These ventures deliver
the products and
services which are
related to daily life
style of the people, and
services to society.
Market share Half of the market
share in the market is
by the high growth
It has very limited
market share and some
it has no market share
It has limited market
share

ventures. by the company.
Opportunities Market opportunities
for the high growth
ventures are very high
and also have the
opportunities to share
market globally.
It has the large
opportunities but only
in domestic level.
There are wide
opportunities in the
market for the social
ventures because its
services and products
are used for benefit of
the society.
Investment These types of
ventures need high
amount of investment.
These low growth
venture can be
established by
investing low amount.
For social venture
there is also no need to
spend such high
amount (Zhang and
Cueto, 2017).
Similarities of entrepreneurial ventures
High growth ventures, low growth ventures and social ventures have differences on their
aims, products and objective where they all entrepreneur ventures share some similarities as
well. As these all ventures are set to be operate in the market with the new ideas their aim is to
provide new, different and innovative products and services that the competitors are not able to
provide to the customers. These all type of ventures start with new ideas. Another similarity is
being risky, these all high, low and social ventures begin to operate in the market with the risk
whether the business would successful or not, able to fulfil the requirements and need of the
customers, all these entrepreneurial ventures have to take risk to perform in the market
(Piperopoulos and Dimov, 2015). And other similarity they share is that all these ventures
established by the open minded entrepreneurs, who are willingly invest in their business
without having any fear of loosing their capital, image or market. They think beyond the
boundaries to lead their enterprise in the segment market.
Interpretation and assessment of impact of micro and small businesses over economy
Micro business

The major factor of classifying micro and small business enterprise is their number of
employees. Micro enterprise employees less than or equal to 9 employees .
Small business
Small business can be defined as an independently owned and control business that
employes more than 9 but upto 250 employees in their business.
As per the statistical data analysis, UK contains the largest amount of small and micro
business units. Currently, micro businesses and small businesses are trading in UK. With the
help of grabbing the largest amount of market by these businesses, they are playing a vital role in
the growth of overall economical development.
In UK, micro and small business units have a huge impact over the economy. Both type
of businesses have helped in enhancing the economic value of the UK. Further, there impact can
be analysed as under:
 Impact over wealth: By increasing number of micro and small businesses and with the
increase in growth and probability of these business, more funds are generated in the
economy (Kuratko, 2016). It resulted in enhancement of wealth of over all country with a
sustainable rate.
 Enhancement of job opportunities: With the increase in micro small businesses, need
of workers goes on high. It results in enhancing the job opportunities in the UK's
economy. Therefore, it can also be said that micro and small businesses plays an
important role in job creation in the economy of UK. These businesses have generated
over 45000 new job opportunities in the economy.
 Encouraging self employment: Micro and small businesses are set up by individuals or
group of individuals. In this regard, they have a huge impact over the generation of self
employment. Further, through their growth, they also attracts a huge number of
individuals to open their own start-ups. Therefore, they have a huge impact over the
creation and development of self employment within the business.
 Enhancement in GDP: By generating higher amount of profit from the business, they
provides a larger amount of finance to the UK. Further, by generating foreign direct
investment for running their own businesses they also brings foreign money within UK's
economy. They are contributing above 50% in the GDP of UK. In this order, they have a
huge impact over enhancement of GDP of UK.

In this regard, it can be analyses that the UK have a huge number of micro and small
business enterprises that have a major impact over the growth of overall economy of UK.
Explaining importance of small businesses start ups in growth of social economy
Social economy
social economy refers to a combination of various capitalistic economies apart from
private and public sector companies. It involves a major diversified entrepreneurs and business
organisations.
Being a largest part of UK's economy, small size businesses and start-up companies, they
plays an essential role in the growth of social economy as well along with the financial growth.
Importance of these business units in the social economy can be analysed as under:
Illustration 1: Growth in UK's start up companies
(Source: 2019 Startup Outlook UK Report, 2019)

 Enhancing personal relationship: Small businesses and start ups keeps face to face
contact with the customers and suppliers as well. In this regard, they enhances amount of
personal relationship in the society (Burns, 2016). Further, as person to person relation
leads in development of strong relationship among individuals, they helps the UK in
developing strong relations in the society.
 Increasing efficiency of responding to various challenges: Start ups and small
businesses have unique ideas of doing business activities. They also have unique ideas in
facing each business problems. For example, as Brexit had a huge impact over the
businesses of UK. They had to face a huge loss due to negative impact of Brexit. All the
small business units and start ups develops their own ideas to face problems faced by the,
due to Brexit. In this regard, they helped in dealing with the Brexit effectively and
enhancing the efficiency of social economy of UK.
 Increasing number of innovations: Generally start ups companies are being formed
with having a innovated ideas, innovated products and services to be sold in the market.
In this regard, they provides innovations to the society. With the help of which social
economy can develop effectively in world wide.
 Technological advancement : start up companies and small businesses also brings new
technologies in the market. Further, they also keeps launching the latest technological
equipments in the market. In this regard, they plays a vital role in development of
technological advancement in the UK. Therefore, both start ups and small businesses are
important in the social economy to build technological advancement in the country's
social economy.
 Reduction in poverty: With the help of providing more job opportunities, the these
businesses also help in reduction of poverty within the whole country.
 More revenue to Government: Enhancement of business revenue directly results in
enhancing the revenue of government in form of taxes, duties, fee, etc.
 Foreign exchange gains: New small and micro businesses can bring more foreign
exchange money within the business by attracting foreign investors towards the business
enterprise and make them invest in their business.

In this regard, it can be analysed that both small business units and start ups are important
to enhance and develop the social economy of UK.
Determining characteristic traits an skills of successful entrepreneur and their difference with
managers
Entrepreneurial mind set
The term entrepreneurial mind set can be defined as a mind state through which an
individual performs various activities relating to enterprise for gaining maximum outcomes.
There are majorly 4 types of entrepreneurial mind set namely, CEO, investor, entrepreneurand
owner of business. There major importance in the a busines organisation is that all of them
performs their major activities for providing major corporate benefits and generate profits for the
company as well.
In UK, there are various numerous famous entrepreneurs. They started their business and
earned a huge profit from their business as well. Jeff, Simon Cowell and Peter John are one of
the major entrepreneurs of UK.
Jeff bazos
Illustration 2: Impact of micro and small
enterprises
(Sources:Archived — Key Small Business
Statistics. 2018)

Jeff can be consider as the bets example of entrepreneur that who developed Amazon s a
start up business or entrepreneurial in UK in 1995 and created a different image in front of the
whole world. The personal traits and skills of Jeff are as under:
Traits of Jeff
 Ambitious: Jeff was one of the most ambitious personality in the world. Its ambitious
personality resulted in achieving success and gaining positive response from the world.
 Adventurous: Being adventurous is the most important need of each individual who
wants to succeed in the future (Liu and et.al, 2017). Adventures can be in the form of
risks taking without which no one can succeed. Jeff have this personality which helped
in taking numerous adventurous in the life and brought a new concept of online shopping
in the market. This risk helped in gaining a huge success through the new idea. Happy: Further, Jeff keeps happy in each type of situations. It helps in responding to
each situations in the most effective way and keep doing entrepreneurial activities
smoothly . In this regard, this personality trait of Jeff also helped in gaining success (The
Top Personality Traits of the World's Richest Man, Jeff Bezos, 2018).
Skills of Jeff:
 Effective leadership style: Jeff have a great skill of leadership. It enhances the ability of
making employees to work in an efficient manner. It helped the Jeff in building the
quality of performance of overall business.
 Responding to problems effectively: By experiencing worst situations, Jeff developed
an ability to resolve each problem easily and develop effective of the overall business,
Peter Jones
Peter Jones is also one of the leading entrepreneur who developed BBC2 television show
that is currently famous at worldwide. Personal traits and skills of Peter are as under:
Traits of Peter
 Positive nature: Peter always have a positive nature towards each situations, it results in
enhancing the effectiveness of working and facing worst situations easily as well.
 Ambitious: Peter was ambitious towards work. It resulted in enhancing the efficiencies
in achieving higher positioning in the society. Focused towards goals: Peter John is focused towards it goals. With the help of this
trait, a achievement of each set goals and objectives became much easy.

Skills of Peter
 Effective communication skills: By creating a new news channel, the communication
skill of peter became much effective. It helped in maintaining effective contact with each
employee and enhance their working as well.
 Creativity: The key skill peter developed was the creativity. It resulted in developing
channel in the most effective way and attract maximum viewers as well.
Difference between managers and entrepreneurial
Basics Managers Entrepreneurial
Meaning Manager refers to individual
that performs functions to
develop and implement
various effective strategies for
business as to provide it
growth.
Entrepreneurial are individuals
or group that starts a new
business with a different and
unique concept as to generate
profits from the market.
Innovation and invention Managers innovates the
strategies and plans of the
business as to make them more
effective.
Entrepreneurial invents a new
product or services and
brought them into the market
as to provide them to
customers
Relation with owners They are employees of
company (JAIN, 2017).
They are owners of business.

Assessment of reflection of personality over entrepreneurial motivation and mindset
In order to analyse the personality of entrepreneur, their mindset and motivation, OCEAN
model can be used. This model provides some bases through which the whole personality of the
entrepreneur can be analysed. OCEAN model of entrepreneur is as under:
 Openness: It refers to curiosity, adventurous nature, creativity, etc. An entrepreneur
needs to have openness in its personality.
 Conscientiousness: Conscientiousness can be defined as the ability of effective
management and organisation of each activity. It is the most important requirement of
being an entrepreneur.
 Extraversion: This quality says that an entrepreneur needs to be enthusiastic, energetic,
talkative and passionate towards the work.
Illustration 3: OCEAN Model
(Source: Big Five personality traits. 2018)

 Agreeableness: An entrepreneur should have a combination of friendly and challenging
nature. This combination give the best result to the entrepreneur in the form of achieving
their set goals and objectives.
 Neuroticism: This personality refers to having secure and confident nature. It is also a
key requirement of an entrepreneur as it can help in performing each business activity
confidently.
The personality of an entrepreneur reflects his motivation and mindset in many ways. The
background of the Jeff Bezos made him a successful leader. His personality explains that he is a
good communicator. Being a good communicator is one of the major requirements of being a
good leader and taking the organisation further (Chang, Wang and Arnett, 2018).
Communication is one of the most important skill of a leader, because without having good
communication skills a leader might face situations related to growth and development of his
own and the organisation as well.
Good communication allowed Jeff Bezos to speak to more and more people and tell them
about his idea of Amazon. People when became aware about the amazon, they helped Jeff Bezos
in taking his idea further and ensuring better growth and development. It is one of the most
important aspect that allowed him to receive better motivation to take the organisation further
and ensure better growth and development of the self and the organisation.
The other aspects which are present in the personality of Jeff Bezos is his confidence.
Having a good confidence allowed him to achieve better growth and development and provided
him with better motivation and mindset. It was important for him to ensure that he is presenting
his ideas to his investors and vividly and making the Amazon grow and achieve required growth.
Good confidence allowed him to receive new set of growth and ensure that he can take his idea
further and can ensure that he is able to achieve set growth. It is one of the most important aspect
which provided him with required motivation and changed his mindset to become more positive
and growth oriented.
The personality of Jeff Bezos holds empathy. Empathy is one of the most important
characteristic of Jeff Bezos. It helped him in understanding the needs and requirements of the
people and what kind of products they need in the market to ensure better fulfilment. Having
better empathy allows Bezos to understand the importance of the people and developing the
products and services as per their particular needs in order to achieve set growth and

development. This ensured that Amazon is reaching required heights and provided Bezos with
motivation to ensure better growth and development of his own. It showcases in what manner the
personality of Bezos allowed him in having a better growth and ensured that he become a
successful entrepreneur.
Further, Peter John learned creativity skills. It helped in creatibg the BBC 2 news channel
in an attractive manner. Peter promoted the channel in an effective way as well. It leaded in
attracting maximum amount of viewers of the channel and promote the channel at world wide
level.
Examining impact of background and experience over hinder and foster of entrepreneurship
Background and experience of a individual have huge impact over the way of responding
hinders and provide them success from it. Jeff can be seen as the best example for it.
International entrepreneur : Jeff have faced experienced numerous problems and have
experience to face them easily. For example, when jeff brought a new concept of online trading
in all over the world, no one was agreed to accept the new concept (Piperopoulos and Dimov,
2015). It resulted in facing a huge loss from the business. But Jeff didn't get upset. Keeping
innovating and advertising the concept and making people aware of the new techniques helped in
facing the problem easily and lead in providing a success worldwide ultimately.
With the help of this experience, now Amazon develops the best risk assessment and
management strategies. With the help of it, the company has enhanced its efficiency of
responding to various financial problems and achieving a huge success as well.
Family background reflects the mindset and thinking of an entrepreneur. With the help of
gaining appropriate education, entrepreneur can develop effective management and organise
business operations. Further, these factors also helps an entrepreneur in facing various hinderies
and gaining success as well.
Social entrepreneur : Speakset' technology founder Ewan Marshall is a successful social
entrepreneur who created a technology of making video call through television, laptop or
computer especially for the old age group people to connect with people. This has been largely
used by charities and NGOs.
Local entrepreneur : David and Simon Reuben , are the local entrepreneurs that has the
net worth of $5.53 billion. They started their business in scrap metal industry, after the success
of which they went on to venture other businesses and become successful.

CONCLUSION
From the analysis of above study, it can be concluded that there are various types of
entrepreneurial ventures each have their different typology of entrepreneurship. All the
entrepreneurial ventures are the same. Although there are some points at which they differs from
each other. As per the statistical data, small and micro environmental factors have a huge impact
over the development of UK's economy. Further, all these businesses are also important to
develop the social economy of country. Both entrepreneurial and managers are different from
each other. Personality of an entrepreneurial have a huge impact over their motivation and
mindset of doing business. Moreover, their background and experiences plays a vital role in
foster or hinder their entrepreneurship.

REFERENCES
Books and journal
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El Ebrashi, R., 2018. Typology of growth strategies and the role of social venture’s intangible
resources. Journal of Small Business and Enterprise Development. 25(5). pp.818-848.
Margiono, A., Zolin, R. and Chang, A., 2018. A typology of social venture business model
configurations. International Journal of Entrepreneurial Behavior & Research.24(3).
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Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
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Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
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