Entrepreneurship & a Small Business Management - Assignment Solution

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship..................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures......................4
TASK 2............................................................................................................................................5
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...........................................................................................................5
P4 Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................6
TASK 3............................................................................................................................................7
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.......................................................................................7
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.............................................................................................................................7
TASK 4............................................................................................................................................8
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship refers to the process in which an individual build their own business or
start-ups with the motive of earning profit (Brustbauer, 2016). Along with this, they are also held
responsible to bear most of the risk. Entrepreneurship invest capital, hire labour for
manufacturing of goods and services which will help in formation of an organisation. It assist in
generating money, growth as well as innovation. There are various types of entrepreneurship
such as culture, social, feminist and many more. The respective report is based on
entrepreneurial ventures and their typologies as well as relation between them. In addition to this,
it also explains about similarities and differences between several entrepreneurial ventures.
Along with this, with the help of certain examples it elaborate impact of micro and small
business on the economy. At the end, it explains the impact of family background and their
experience which foster or hinder entrepreneur to become successful.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurial venture is define as an company which apply innovation and
opportunities in order to develop social or economic value (Carraher and Van Auken, 2013).
There are different types of entrepreneurial ventures which are described below:
 Social Entrepreneurship: This is a type of entrepreneurial venture whose main motive
is provide quality goods and services to societies, communities and many more in order
to fulfil their needs. Along with this, they focus to provide better place in the world not to
make profit. For example: RingCenrtral, and so on.
 Large Company Entrepreneurship: This entrepreneurial venture basically focus on
producing innovative products in order to attract customers. Along with this, they also
offer new products and services top fulfil their customer needs as per the changing
environment. For example: Google, Microsoft and many more.
Typology of Entrepreneurship
 Serial Typology: This typology refers to those entrepreneurs who always start their
business with new and innovative ideas. These entrepreneurs delegate responsibilities to

other person and move forward to another others ideas as well as ventures. For
example:Donald Trump, Mark Cuban and many more.
 Survival Typology: It refers to those typologies in which respective entrepreneur fight
for survival in the marketplace for long period (Dana, 2013). Along with this, there main
motive is to earn profit by providing products and services to their potential consumers.
For example:mini marts, small retail stores and so on.
Relation to the typology of entrepreneurship:
Entrepreneurial
Ventures
Examples Sector Relation to the
typology of
entrepreneurship
Social
Entrepreneurship
Speak set Public Serial
Large Company
Entrepreneurship
Google Subsidiary Lifestyle
P2 Explore the similarities and differences between entrepreneurial ventures
Every entrepreneurial venture has some some similarities and differences between them
(Devece, Peris-Ortiza nd Rueda-Armengot, 2016). The similarity and difference between social
entrepreneurship and large company entrepreneurship is explained below:
Similarity between Social Entrepreneur and Large Company Entrepreneur
 Continuous Innovation:Both Social as well as Large Company Entrepreneur focus on
their continuous innovation ideas and methods by providing goods and services to their
potential customers as per their requirement.
Difference between Social Entrepreneur and Large Company Entrepreneur
Basis Social Entrepreneur Large Company
Entrepreneur
Aim Its main aim is to provide
products and services to their
customers to fulfil their need
and demand rather than to
The main aim of respective
company is to generate profit
by providing goods and
services according to customer

generate profit. requirement and latest trend.
Risk Social entrepreneur has less
chances of risk as it has
support of government due to
which risk can be handled
effectively (Kassean and et.al.,
2015).
It has high chances of risk as
any change in the economy
directly affect their overall
productivity and profitability.
Hence, any entrepreneur venture has similarities as well as dissimilarities between them.
They are neither same nor different.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Micro and small business of United Kingdom has directly and indirectly created the
positive impact on the economy of the country (Hughes and Jennings, 2012). This is because
small and medium entrepreneurial venture has provided job opportunities to employees which
has increased their standard of living. Along with this, it has also improved the quality of good
and services which are supplied to their potential customers. It helps these enterprise to acquire
new customers and retain their existing customers. There are some data and statistics that
describe that micro and small business has a positive impact on the economy of the United
Kingdom.

By the bar above graph it is examined that Brexit has a great impact on micro and small
business of UK. At this area there are approx 5.7 millions small and micro businesses that are
developing their business nearby 73% jobs in private sector. As per this analysis, there are
approx 2 millions employment that small and medium enterprise generate. By evaluating this
analysis of 2016, annual turnover of UK is approximately £1.9 million. These venture provide
job as well as growth opportunities at all the levels of economy. Due to this reason standard of
living and GDP of respective country is increased. Along with this, it is also examined that
nearly 50-250 employees are working with medium enterprise which result in high profitability
ratio.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social economy is defined as a kind of variety of enterprises and organisations such as
associations, mutuals, foundations and many more (Lavia López and Hiebl, 2014). The economy
has some characteristic such as democratic governance, voluntary as well as open membership
and many more. The importance of small business and start ups are described below:
 Economic growth: Small business and start ups are beneficial for the economic growth
of the country. Along with this, it also helps in generating job opportunities for
Illustration 1: Brexit’s impact on small businesses: the experts may be spot on after all
(Source: Brexit’s impact on small businesses: the experts may be spot on after all. 2019)

employees that contribute for the country's economic growth (Light and Dana, 2013). In
addition to this, small business and start-ups focus more on innovation which make them
sustain in the market for long period.
 Promotion of research and innovation system: With the help of advance technology
small business and start-ups can build connection with knowledge institutes such as
college, schools and others. Along with this, they can also guide students and encourage
them to implement ideas for having a start-up company. This process can be done with
the aid of promoting research and innovation system.
Hence, these benefits of small businesses and start ups help in overall productivity and growth of
country's GDP.
TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
There are various traits and skills of entrepreneurs which help them in order to become
successful and also make them different from other business managers (Oviatt and
McDougallCovin, 2015). The characteristic traits and skills of entrepreneurs are explained
below:
Characteristic skills of Bill Gates:
 Bill Gates is innovative and kind personality who always come up with new ideas which
help him in growth and development of his business. Along with this, he also indulge in
social work and donate funds to NGOs, charity and many more.
Skills of Bill Gates:
 Bill Gates is a daring personality who is a risk taker and invest in it is company for
growth and development. Along with this, he is also a learner which means he never
leave a chance to learn new things from his surroundings which can enhance his skills
and knowledge.
Characteristic Skills of Peter David Jones:
 Peter David Jones is an entrepreneur who has a good communication skills and can
effectively interact with his clients or customers. In addition to this, he was also a
passionate entrepreneur who has also has his famous television show named Dragon Den.

Skills of Peter David Jones:
 Peter David Jones was punctual towards his work and has a great value of time and
money. Along with this, he had the ability to take risk as well as to handle its outcomes.
Therefore, it can be said that these characteristic or personality traits as well as their
respective skills make them a successful entrepreneur and different from other entrepreneur.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
There are certain aspects of entrepreneurial personality that reflect their motivation as
well as mindset (Sirelkhatim and Gangi, 2015). This can well elaborated with the help of Big
Five Trait Personality Model. This model explains about five sectors that is openness,
conscientious, extraversion, agreeableness and neuroticism. These five sectors helps in
describing an individual personality. These factors are explained below:
 Openness: The first stage of big five personality trait model reflect that in this an
individual feels thirsty to learn and gain knowledge about new things which can help
them in their growth and development. Along with this, at this stage a person is eligible
for leadership position who can guide their team members as well as can handle any kind
of situation or conflict in effective manner.
 Conscientious: Another stage of respective model explains that an individual is focused
more on achieving their goals and also take care of small details. They also pre prepare
their task before deadline so that they can utilise their time in other sectors also.
 Extraversion: The third stage of personality model describes that an extrovert person is a
one who interacts with every individual and have a large circle of friends. Along with
this, they also enjoy to gain attraction of every person towards themselves. These
individuals are energetic and active.
 Agreeableness: Next stage of respective model is agreeableness which states that these
individuals are kind, altruistic and always think about others rather then themselves. In
addition to this, they always step forward to help people in overcoming their respective
problem.
 Neuroticism:Last stage of big five personality trait model state that these people stay
away from other and are usually sad or upset. They do not have much friends and also get
worried about small happenings in their surroundings.

Hence, with the aid of these five stages of personality model, an individual personality
can easily be described in the form of their behaviour, body language and many more.
TASK 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
Every entrepreneur has some or the other family background or experience in the form of
caste, religion, gender and various other factors. Many entrepreneurs have treated such hurdles as
their opportunities and became successful in today's Era.
Oprah Winfrey, who is a media executive, host of talk shows, an actress, television producer and
a philanthropist. She belongs to a poor family where her father Vernon Winfrey was a coal miner
in Armed forces. In addition to this, she was born in Mississippi to a teenage unmarried women
and her upbringing was in Milwaukee. In her interviews, she said that she was molested in her
childhood and got pregnant at age of 14. her son died because he was prematurely as well as
infancy born. After going through such misshapenings and obstacles she never gave up. Along
with this, at the age of 19, she became co-anchor in local evening news at Tennessee. Therefore,
this reflect that there were many stages in her life that hinder her to become a successful
entrepreneur such as his past experience, family background and many more. But she took these
as her opportunities and fought for it and now she is leading women in today's arena who is
running her own business as well as is a successful entrepreneur
CONCLUSION
Hence, it is concluded that in order to become a entrepreneur one must decide in which
sector as well as typology business must be launched. Along with this, a successful entrepreneur
is a person who is innovative, creative, patient and so on. In addition to this, an entrepreneur
must produce goods and services in order to sustain in the market for long period as per customer
needs and demands. An entrepreneur always have family background or experience which either
foster or hinder them to become successful. This helps in understanding about their obstacles and
the ways they treat these obstacles as their opportunities.

REFERENCES
Books and journals
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal. 34(1). pp.70-85.
Carraher, S. and Van Auken, H., 2013. The use of financial statements for decision making by
small firms. Journal of Small Business & Entrepreneurship. 26(3). pp.323-336.
Dana, L.P., 2013. When economies change hands: A survey of entrepreneurship in the emerging
markets of Europe from the Balkans to the Baltic States. Routledge.
Devece, C., Peris-Ortiz, M. and Rueda-Armengot, C., 2016. Entrepreneurship during economic
crisis: Success factors and paths to failure. Journal of Business Research. 69(11).
pp.5366-5370.
Hughes, K.D. and Jennings, J.E. eds., 2012. Global women's entrepreneurship research: diverse
settings, questions, and approaches. Edward Elgar Publishing.
Kassean, H. and et.al., 2015. Entrepreneurship education: a need for reflection, real-world
experience and action. International Journal of Entrepreneurial Behavior &
Research. 21(5). pp.690-708.
Lavia López, O. and Hiebl, M.R., 2014. Management accounting in small and medium-sized
enterprises: current knowledge and avenues for further research. Journal of
Management Accounting Research. 27(1). pp.81-119.
Light, I. and Dana, L.P., 2013. Boundaries of social capital in entrepreneurship. Entrepreneurship
Theory and Practice. 37(3). pp.603-624.
Oviatt, B.M. and McDougall‐Covin, P., 2015. International entrepreneurship. Wiley
Encyclopedia of Management. pp.1-3.
Sirelkhatim, F. and Gangi, Y., 2015. Entrepreneurship education: A systematic literature review
of curricula contents and teaching methods. Cogent Business & Management. 2(1).
p.1052034.
Online
What Is Entrepreneurship? – Types & Importance. 2019. [Online]. Available
through:<https://www.feedough.com/what-is-entrepreneurship-types-importance/>.
THE IMPORTANCE OF STARTUP COMPANIES FOR ECONOMIC DEVELOPMENT. 2019.
[Online]. Available through:<https://www.linkedin.com/pulse/20141122084428-
77551011-the-importance-of-startup-companies-for-economic-development>.
Brexit’s impact on small businesses: the experts may be spot on after all. 2019. available
through:<http://theconversation.com/brexits-impact-on-small-businesses-the-experts-
may-be-spot-on-after-all-90561>.