Entrepreneurship and Small Business Management

This assignment explores the various ranges of venture types considered as entrepreneurial and assesses the impact of small business on the economy. It also determines the aspects of an entrepreneurial mindset and explains the environments that foster or hinder entrepreneurship.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
1

Table of Contents
Introduction........................................................................................................................3
LO1: Explore and illustrate various ranges of venture types which is considered as
entrepreneurial...................................................................................................................3
P1: Examining various types of entrepreneurial venture by relating to the typology of
entrepreneurship................................................................................................................3
P2: Explore the similarities and difference between entrepreneurial ventures.................4
LO2: Assessing the impact of small business on economy..............................................5
P3: Interpreting and assessing data and statistics to show impact on economy..............5
P4: Explaining the importance of small business and start up business to grow social
economy............................................................................................................................6
LO3: Determining the aspects of entrepreneurial mindset................................................7
P5: Determining the characteristic traits and skills required for successful entrepreneurs
...........................................................................................................................................7
P6: Assessing the entrepreneurial aspects that reflects motivation and mindset.............9
LO4: Explaining various environments that foster or hinder entrepreneurship...............10
P7: Examine with example the background and experience..........................................10
Conclusion.......................................................................................................................10
Reference List..................................................................................................................11
2

Introduction
In the global economy world the role played by entrepreneur is action oriented which
highly motivates individuals to achieve goals. In case of small business
entrepreneurship contributes large share of new jobs and creates opportunities for
those who are looking for job (Linton and Solomon, 2017, p.196). The present
assignment will deal with the case of opening a new branch in UK with an objective to
expand their products and services. It will explore the range of venture types and
identify the aspects of an entrepreneurial mindset. Moreover, various environmental
factors that will foster or hinder entrepreneurship will also be identified.
LO1: Explore and illustrate various ranges of venture types which is considered
as entrepreneurial
P1: Examining various types of entrepreneurial venture by relating to the
typology of entrepreneurship
The term entrepreneurship is the capacity and willingness that is associated to manage,
organisation and develop business venture by taking risk with the aim of making profit.
This concept is required while starting new business or expanding the business in other
location. Gibson (2017, p.716),defined entrepreneurial venture as an advisory services
that is given to the company at an early and middle stage to make economical and
social value. The term entrepreneur is most often contrasted with manager as they are
known to be the important person associated with an enterprise.
Entrepreneurship is associated with the task where there is a requirement of sensing
opportunities and creates new products for the organisation. They provide opportunity to
the business to make profit and maintain or gain competitive advantage in the market
place. A person getting the role as an entrepreneurship for the growth and create lot of
employment opportunities.
Entrepreneurial venture plays its role in economic growth and making suitable standard
of living for the country. Every start up company thinks that they are working less than
3

they have to do for getting better future. However, their little work gives a lot in
enhancing countries economy and growth. For growing countries economical statues
small business provides lots of scope in creating job opportunities. When one fulfils the
role of an entrepreneurs there becomes less job seeker in the country but they provide
employment opportunities to large number of population who are having the capacity in
handling responsibilities (Dana et al. 2016, p.4). Moreover, entrepreneur setting new
business ideas also gives positive impact for growth and development in regional areas.
In underdeveloped areas improvement are made in infrastructure by making better
roads, developing schools and hospitals. This is the way through which improvement is
made.
Solomon and Linton (2016, p.1) added that by increasing the living standards of
common people is also the key goal of entrepreneur and contribute their work in
economic development. Such is done by developing new techniques to innovate
products and services which improve quality of life for the customers and the
employees. Moreover, ideas are bought for the organisation that will help them in
minimising cost of production and maximise the rate of production. This is a way that
enables a business unit to be productive in the market place and perform better in the
market place.
P2: Explore the similarities and difference between entrepreneurial ventures
Entrepreneur and manager are associated with the organisation for controlling,
managing and administrating. The term entrepreneur is one of the individual who is
having skills, ideas and courage to take risk and take effective measures to solve it.
Besides, manager is associated with a company to manage organisation operations and
functions. Therefore, it can be stated that entrepreneur is the person that takes financial
risk in order to make profit whereas, managers controls the organisation by managing
and administrating organisational task (Jaén et al. 2017, p.31). The main motive of
manager is to focus on ongoing operations and entrepreneur focuses on business start-
up.
4

On other hand, intrapreneur is an employee of an organisation who is paid
remuneration as per the business success. Storey (2016, p.6) stated that there is a
difference between an intrapreneur and entrepreneur as one is associated to promote
innovation and the other who starts a new business with new idea. In addition,
entrepreneur uses own resources and intrapreneur uses resources that are provided by
the company. Boso et al. (2017, p.247) added that intrapreneur enjoys the authority of
innovating the products and services whereas, entrepreneur add value to the products
and services. They usually take appropriate decisions for making the services and
products profitable in the market place. Apart from that economic development is also
the development of community which requires building proper infrastructure,
educational institutes and healthcare so that the people get improved in much better
way. Exporting products in foreign market also contribute in making economic
development.
In addition the manager of a company gets their work done through the subordinates
associated with the company where the aim is to accomplish business goal and
objectives in an efficient and effective manner, besides, the manager is encompassed
to five primary functions that goes under a manager. These are planning, organising,
controlling, motivating, coordinating and directing. With the presence of a manager an
organisation carry out their work process in an efficient and systematic manner
(Schaper, 2016, p.5). Following the five primary functions enable the organisation to
make the production rate higher and fulfil the requirement of customers.
Hence, there lies difference between entrepreneur and a manager as both has different
responsibilities to perform with the organisation. For an entrepreneur achievement tends
to be a great motivational factor for achieving goal but for a manager the main
motivational factor is power.
5

LO2: Assessing the impact of small business on economy
P3: Interpreting and assessing data and statistics to show impact on economy
Narooz and Child (2017, p.14) defined creativity is the capability that is present within
an individual to create something new and unique whereas, innovation is the invention
of creating something new that was not created before and not present in the market
place. Therefore, with the role of entrepreneur ideas are generated within a business to
make profit in the market place and give opportunities to the individuals who are looking
for it. Huxtable-Thomas and Hannon (2016, p.155) stated that the contribution of small
and medium business is ranging high which is reported by US Small Business
Administration (SBA). According to the report 99.7% are the employer firms of small
business and 64% new jobs opportunities are provided by small and medium business
enterprise. Besides, they contribute 44% in the US private payroll.
Singh et al. (2016, p.316) stated that small business contribute their profit in enhancing
local economies by in developing and growing their communities. Small business
enterprise helps in increasing economic growth as they provide employment
opportunities to the people who are potential enough in handling their respective roles
and responsibilities in earning organisation profit. When it is considered in context to
international market then the start up companies dealing with export companies also
earns from foreign market. Hence, new talents are attracted towards new firms as they
give scope to execute their ideas. In addition, Boso et al. (2016, p.1) small business
have the capacity to respond and adopt quickly according to economic changes. It is
possible for them as they are customer-oriented and the loyal customer’s shows loyalty
towards small business firm. However, being small business is quite challenging part to
sustain in the market place for long period as customers stay loyal to those companies
that already exist.
Most of the small firms are independently owned and their business operation is carried
out having few numbers of employees. Welsh et al. (2017, p.1) added that for
enhancing UK economy small business are the backbone that creates job opportunities
and contribute a vital part in opening new markets and driving growth by brining
6

creativity and innovative thought. Being customer oriented it gives lots of scope to the
small business firm where they look after the requirement of the customers and supply
production as per their need. Hence, they not only focus in making profit but also focus
in achieving customer loyalty (Kulchina, 2017, p.1). According to Entrepreneur
Magazine, there are around 25 million to 27 million small businesses in US. This
indicates that the job facility given to the candidates is within the range of 60-80%.
P4: Explaining the importance of small business and start up business to grow
social economy
There are people who are not aware of small business due to which they sometimes
lag behind in developing the economic condition of their own business. Besides, for a
start up company it becomes important to make their own position in the market place.
For developing social economy the small business are more sustainable and contribute
in enhancing growth. In America, there are around 28 million small business holders in
the market place. They contribute huge part by employing 55% candidates in their firm
so that they can increase the rate of production and gives opportunities to new firms
(Ziyae and Heydari, 2016, p.1169). Moreover, they make 54% account transaction in
every year. With the changing globalisation small business creates 66% of new jobs
and overall small business provides suitable stability in the work culture of UK. With the
growing economic condition small business made nearly 600,000 franchises including
restaurants, retail outlets, coffee shops and gas stations. This has given the country 8
million jobs and the retail sales came up to 40%.
It is obvious that opening a business in new area is challenging and is risky but the risk
can be overcome if proper market research is done regarding the geographical location
and demographic factor then there are chances to make profit (Kaushal and Mishra,
2016, p.9). Moreover, the owner of the business needs to be skilful in handling and
managing risk. Since the year 1977, the rate of failure in small business has dropped to
30% as they are focusing on giving better training to new candidates and enjoys the
facility in accessing information. Hence, small business is giving more contribution in
developing social economy as they are making their employees more skilful so as to
7

carry their task effectively (Belas and Ključnikov, 2016, p.104). Hence, these
businesses have the strength to adapt according to the economic condition and be
flexible in the market place. Having the capability to change their operation as per the
changes in policies, small businesses are able to meet market needs and their visibility.
LO3: Determining the aspects of entrepreneurial mindset
P5: Determining the characteristic traits and skills required for successful
entrepreneurs
When carrying out the role as an entrepreneur it is essential to have strong skills and
ideas to present a new business in the market and help them in making profit by taking
risk. Therefore, to represent as a successful entrepreneur it is essential to have key
qualities such as building team, creativity and the ability to adopt according to the
changing economic structure. When it is about the characteristics of an entrepreneur
then being disciplined is important. The entrepreneurs are focused while making
decision for the business and they try to eliminate the obstacles that come in between
while achieving goal (Jaén et al. 2017, p.31). They have the capability to change their
strategies according to market condition and gives full effort in accomplishing it. Being
optimism is their effective asset as it help entrepreneur to go through hard times.
An entrepreneur always takes the initiative to stand for the business in difficult times
and improve business project by solving business problems. Boso et al. (2017, p.247)
stated that a successful entrepreneur is always creative in recognising opportunities in
the market place and posses strong skills. An entrepreneur creates their own vision and
set objectives for their own self so that they can create opportunities for start up or new
business. An entrepreneur stands with the responsibility to work as company’s head
and decides the future of the business. The characteristics of risk tolerance are the
most important one within an entrepreneur as they work for launching new product and
services in the market place. Besides, risk can be minimised by researching market,
industry and business concepts. Workings as an entrepreneur for a start up the
entrepreneur are flexible with the decision and give direction according to the plan.
8

Singh et al. (2016, p.316) stated that entrepreneurs are always future oriented,
optimistic and enthusiastic as they believe in gaining success by making profit.
Similarly, an entrepreneur holds high energy and thinks from the business perspective
to increase market share for the business. Moreover, they have the potential in setting
business process and systems to make business operation successful. In addition, they
are focused on earning revenue by maximising production rate and reduce cost of
production. When it is considered about the manager of a company they are
responsible in carrying out the role of training the new candidates. Managers also think
about making profit for the business but they are mainly associated with the task of
planning, controlling, and organising (Huxtable-Thomas and Hannon, 2016, p.155).
Besides, managers have problem solving skills that is only associated with the
employees and customers. If the employees are facing issues regarding any conflict
situation manager takes initiative to solve it.
On other hand an entrepreneur have the skill and ability to manage money. An
entrepreneur plan in such way, that can help the business with proper utilisation of
money without making any waste. Moreover, they have the ability to raise money and
help business from risk. Having the ability to be productive is very important in today’s
business world as every business is running to make profit and gain maximum number
of customers to increase sale. The best thing about entrepreneur is that they have the
ability to identify strength and weakness (Narooz and Child, 2017, p.14). Opportunities
are utilised by them to strengthen their position and focus on eliminating threat by
making effective decision.
P6: Assessing the entrepreneurial aspects that reflects motivation and mindset
Entrepreneurs have their own mindset where they find out ways in reaching customers
make them influence to buy their product and services. According to them they find that
there is a necessity to develop products according to the needs of customers. Narooz
and Child (2017, p.14) added that entrepreneur have the quality in motivating
themselves so that they make great achievement in the market place. Achievement
motivation gives them success in their field. However, they have the mindset to motivate
9

others such as the employees who are associated with the company. This reflects their
professional mindset as they use the characteristic of motivation among the employees
so that they get influenced in carrying out their respective role.
In addition, entrepreneurs believe in making difference so that they can be identified in
the market place. Linton and Solomon (2017, p.196) stated that the more efficient will
be entrepreneurship policy it gives stronger scope in motivating individual
entrepreneurial. Being confidence is one of the essential characteristics seen within an
entrepreneur as in their profession confidence is required to handle challenging
situations and conflict business conditions. Entrepreneur always work for the business
by bringing new ideas for them due to which pertaining confidence is essential in
eliminating risk and bring profit. This is their professional mindset as well that help
entrepreneur in building relationships within and outside the company. Dana et al.
(2016, p.4) stated that relationship is needed in building effective team which is based
on personal integrity and conducting open communication.
In addition, entrepreneurs have the mindset regarding financial information and
calculating financial statement of the company. They think about cash flow and earning
revenue. This able them to think about lowering cost of production and does not support
any wastage of resources. Due to this, they take initiative in maximising the production
rate by lowering cost of production. Most efficiently they welcome the changes that are
seen in economic condition and market place. Gibson (2017, p.716), added that the
mental representation of an entrepreneur allows a business to get suitable opportunity
through which they can contribute in growing economic condition and make position for
themselves.
LO4: Explaining various environments that foster or hinder entrepreneurship
P7: Examine with example the background and experience
An entrepreneur background and experience influence them a lot to make success in
their working life. For example, if the entrepreneur is new in its profession then at first
stage difficulties can be faced. The entrepreneur may not be aware business risk
10

practically. Moreover, when start business decides to come up in the market place, they
always like to prefer an experienced entrepreneur who will be working for them rather
than new entrepreneur. Besides, if new entrepreneur make positive impression in the
market place from the beginning then they get high demand among the small business
firms (Kaushal and Mishra, 2016, p.9).
In addition, innovative entrepreneurship is required to get the ability in managing
changes and improve management skills. Besides, if necessity characteristics are
present within an entrepreneur and they are confident enough to take risk and cope up
with challenging situation then it may come as foster to enhance their entrepreneurship
skills. Entrepreneur having weak communication skill are not able to make strong
position in the market place as they difficulties in communicating with different investors
who will be contributing fund. Therefore, having positive background and experience is
essential to lead the role of entrepreneurship (Storey, 2016, p.6).
Conclusion
Therefore, it can be concluded that, the role played by an entrepreneur is essential to
develop small business enterprise in the market place. An entrepreneur takes the risk
and brings out opportunities from it to grow the business. Besides, small businesses in
UK are vital in contributing their role in developing country’s economic condition. Small
business is important to enhance the growth of social economy. However, there lies
difference within the role of an entrepreneur and a manager as a manager is
responsible only with making planning and controlling. Apart from the role played by
entrepreneur and manager, an organisation is influenced with human resource practise
as they contribute their role in recruiting skilled candidates. Hence, they also contribute
in enhancing small business to flourish successfully in market place.
Reference List
Belas, J. and Ključnikov, A., 2016. The Most Important Attributes of Entrepreneurs.
Case Study of the Environment of Czech SMEs. International Journal of Entrepreneurial
Knowledge, 4(1), pp.104-111.
11

Boso, N., Danso, A., Leonidou, C., Uddin, M., Adeola, O. and Hultman, M., 2017. Does
financial resource slack drive sustainability expenditure in developing economy small
and medium-sized enterprises?. Journal of Business Research, 80, pp.247-256.
Boso, N., Oghazi, P., Cadogan, J.W. and Story, V.M., 2016. Entrepreneurial and
market-oriented activities, financial capital, environment turbulence, and export
performance in an emerging economy. Journal of Small Business Strategy, 26(1), p.1.
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 Management, 6(1), p.4.
Gibson, B., 2017. Teaching entrepreneurship and/or small business management: shifts
in content tensions in Australian Universities. In United States Association for Small
Business and Entrepreneurship. Conference Proceedings (p. 716). United States
Association for Small Business and Entrepreneurship.
Huxtable-Thomas, L. and Hannon, P., 2016. The Role of Entrepreneurial Leadership in
City Region Economies: A Case of Developing Small Firm Leaders. In Entrepreneurial
Learning City Regions (pp. 155-179). Springer, Cham.
Jaén, I., Fernández-Serrano, J., Santos, F.J. and Liñán, F., 2017. Cultural Values and
Social Entrepreneurship: A Cross-Country Efficiency Analysis. In Social
Entrepreneurship in Non-Profit and Profit Sectors (pp. 31-51). Springer International
Publishing.
Kaushal, N. and Mishra, S., 2016. Leaders as Managers: A Study of Entrepreneurial
and Management Skills of Nation’s Leaders. International Journal of Innovative
Research and Development, 5(12), p.9.
Kulchina, E., 2017. Do foreign entrepreneurs benefit their firms as managers?. Strategic
Management Journal, 13(1), pp.1-33.
12

Linton, J.D. and Solomon, G.T., 2017. Technology, Innovation, Entrepreneurship and
The Small Business—Technology and Innovation in Small Business. Journal of Small
Business Management, 55(2), pp.196-199.
Narooz, R. and Child, J., 2017. Networking responses to different levels of institutional
void: A comparison of internationalizing SMEs in Egypt and the UK. International
Business Review.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship.
CRC Press.
Singh, M.P., Chakraborty, A. and Roy, M., 2016. The link among innovation drivers,
green innovation and business performance: empirical evidence from a developing
economy. World Review of Science, Technology and Sustainable Development, 12(4),
pp.316-334.
Solomon, G.T. and Linton, J.D., 2016. Standing at the crossroad of knowledge:
Technology, innovation, entrepreneurship and the small business management–Policy
perspectives. Technovation, (57-58), pp.1-3.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Welsh, D.H., Kaciak, E. and Minialai, C., 2017. The influence of perceived management
skills and perceived gender discrimination in launch decisions by women
entrepreneurs. International Entrepreneurship and Management Journal, 13(1), pp.1-33.
Ziyae, B. and Heydari, R., 2016. Investigating the Effect of Self-Leadership on
Entrepreneurs’ Innovation in Small and Medium-Sized Enterprises. International Journal
of Humanities and Cultural Studies (IJHCS) ISSN 2356-5926, 2(4), pp.1169-1182.
13