The Impact of Entrepreneurship on Small Business Management

The provided assignment delves into the significance of entrepreneurship and small business management in stimulating economic growth. It highlights the essential qualities, such as confidence, experience, and risk management, that entrepreneurs must possess to successfully operate a small or medium-sized enterprise (SME). The document also touches upon the rewards aspect, which motivates employees to achieve goals within the SME. Overall, the assignment underscores the importance of entrepreneurship in driving economic development and promoting sustainable growth.

Entrepreneurship and Small
Business Management

INTRODUCTION
Enterprise led by small business entity. Every large company establish their organisation
as a small scale enterprise. In this emerging world everyone wants to set their own business
which develops with skills and capabilities in order to remove poverty in country. From this
point they came up with the idea to set their own business entity at small scale. To start a new
business, creative minds plays a vital role in establishing a unique business. As to start business
with small scale, the entrepreneur set their mind regarding profit basis. For successful business it
initiates time and efforts to form a business and risk are also involved while dealing in market.
Report will include the various range of ventures that evaluates the same and different
concepts with the enterprise ventures. It includes the micro business impact on the economy.
Further it includes various aspects of enterprise personality to reflect the motivation and mindset
of entrepreneurial. Lastly the report ends with evaluating the different environment aspects that
affects the entrepreneurship.
LO1 Illustrating the range of Ventures type
P1 Various types of enterprise ventures and its relation to typology of entrepreneurship.
Enterprise means acting or creating a company to set up their business entity in the
emerging market. Thus, business are not only set up they are developed, organized and managed
to face risk with their competitors. Thus, the difference between serial entrepreneurs,
entrepreneur and owners and mangers are as serial entrepreneurs are such entrepreneurship
which comes up with different ideas and then start their business with such ideas. E.g. Donald
trump which changes the working of country with their innovative thought and ideas.
Intrapreneurship is somehow related to entrepreneurs but they mainly focused on large
organisation e.g. Facebook which is the best example. Owners and managers means person who
plays an important role as owners gives instruction which the managers of the company had to
follow. E.g. Their management and leadership style to trained the employees. There are mainly
different types of entrepreneurial ventures such as ~
 Existing Ventures: Mostly individual itself establish a small business entrepreneur and
to survive in the country they establish a small business. In this type of business it is not
registered under the companies Act. Also, they have no premises to expand such business
(Management – Entrepreneurship & Small Business management, 2019). They have few
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investments to establish the structure in the company and also they have no transaction
with the banking sector. They bring funds from themselves and also if the business didn't
work out they have to shut down the enterprise. Thy operates business just to survive in
the country and they totally depend on profit of the enterprise.
 Lifestyle ventures: This ventures maintains the lifestyle by having the continuous flow
of income for owners based on work schedule. It indicates they have proper place to
execute the work and had employees to complete the assigned task (Burns and Dewhurst,
2016). To enhance the employees they offer salary and bonus to the employees to
motivate them towards work. In these ventures, proper management team is planned to
execute the work in terms of operation. If the enterprise didn't work out they can exit the
business by way of shutting down or sell or transfer the property to others. For the
smooth running of business they can finance by their own or by family, friends and can
take help from bank.
 Managed growth ventures: In this type of venture they manage their annual growth rate
at 10-15%. For the continuous working of enterprise they raise finance from family,
friends, bank and can take from private investors (Burns, 2016). To motivate employees
towards working they praise them by way of salary, Performance incentives and by
equity capital of the enterprise. By the successful growth in the business they manage to
expand their business into different sector. This ventures helps the enterprises to enhance
their brand name in the market.
 Aggressive growth ventures:This ventures specially focus on national and international
market. In these ventures the technology investment is high as for the result of having
more than 20% annual growth rate in the market (Trehan, Higgins and Jones, 2018).
They are usually funded by equity and capita gain. If the business is not running
smoothly they can sell, merge or go to public for offering or acquisition of the business.
There relation in respect of Typology which means that they are to examined and
evaluated relating to their types and symbols on which the study is conducted. of
entrepreneurship are:
 In respect of survival entrepreneur, the typology related to services are none as they are
operated by the individual person (Typology of technology- based entrepreneurs, 2019).
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They have to run the business for their day to day earning. New technology results in no
use to this venture.
 In Lifestyle ventures, they continuously bring changes in the ventures and due to that
they have to maintain limited technology for having growth in the business.
 In managed growth ventures they related to incremental strategic growth which results in
moderate technology changes In the market.
 In reference to aggressive growth ventures the technology is high as they directly deal
with public (Cowling and et.al., 2015). As in this venture they depend on high operation
management team to further examined the activities in company. That's reason to updates
typology in high.
P2 Evaluating the same and different aspects between entrepreneurial ventures.
The difference between the enterprise ventures are that ~
Factors Existing Lifestyle Managed growth Aggressive
growth
Settle business They have to
manage their day
to day activities
to earn profits.
In this they have
to check weekly
and monthly
operation for
smooth running
of business.
Once the business
grow in this
sector they have
to manage for 1-2
years of their
operation (Doern,
2016).
They need 2-5
years to manage
their time period
for smooth
running of
business.
Rewards and
Appraisal
No such reward
as they earn on
the basis of
routine income.
Salary and bonus
are initiated to
motivate the
employees
towards working.
It results in higher
growth so they
offer salary along
with performance
appraisal for
better
performance
It issues equity
along with public
and enjoy many
benefits and
welfare scheme of
employees (Wang
and Liu, 2016).
Sources of They have to They can take They can also In this they offer
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finance finance own
without taking
help from anyone.
help from family,
friends and bank
to invest in the
business.
take help from
family, friends,
bank and privet
investors to invest
in the business.
share to the public
and issue shares
in the market.
The major similarities to implement on entrepreneurial ventures as firstly related to
innovative ideas. All the ventures established their business on the basis of bringing new ideas in
the market. To attain success and profits in the business innovative ideas are major criteria for
the success of business (Ateljevic and Page, 2017). New ideas can be in any form as it can be in
relation to products, services technology and brand name which enhance the productivity of the
company. Secondly success, for any ventures whether its starts up, joint venture. Success is the
major aspect to establish the business.
M1
In Case of Sainsbury (corporate sector), the entrepreneur are established inside the
enterprise. The new concepts, ideas and thoughts help the business to grow in the wider ranges in
market. This helps to motivate employees to work harder in the organization to expand its inner
scale. Straight vision and clear understanding helps them to innovate products and services in the
emerging market (Welter and Gartner, 2016). In case of TESCO (public sector), they have to
invest large of their earning for the welfare of the public. This involves risk as it affect the
economies of scale.
D1
The scope of public sector entrepreneur ventures are vast in case of developing country as
they are self employed and they engage their business activities from small scale enterprise.
They have the large scope of growth in the emerging market. Development comes up with
innovation in new products. If they plan to invent in new technologies and creativity in products,
it helps to develop their business activities (Karadag, 2015). Growth depends upon the enterprise
terminal stage to invest in business. The way to approach investor, customers and bring products
in the market express their growth rates. They are successful and challenging also they enter into
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the market with strong competitor and their stability in the market is also not beatable by their
competitors. If they want to borrow funds from the investor they can easily apply due to their
reputation and strong brand image in the market.
CONCLUSION:
According to above case study it can be concluded that entrepreneurship and small
business management helps the business to encourage the economy of the country. For
establishing new business in the country various skills, capability and knowledge are required to
earn profits and maintain sustainable growth at small scale.
LO 2 Impact of Micro business on the economic growth
P3&M2 Illustrating the micro business impact on the growth with the relevant data.
Relevant data are collected on the basis of small and micro sized business in UK
economy (Small and medium Sized Enterprises: Local, Strength, Global research, 2000).
Illustration 1: Small and medium Sized enterprises
Source: - Small and medium Sized enterprises, 2000
Small business plays a significant role in relation to the economy of the global world. In relation
to the above data 93% firms and very few in relation to the employment rates are shown in the
figure in case of UK. While as compare to US only 38% ratio is for the growth structure.
Impact of micro sized organisation in relation to economy:
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If ratio of medium sized business increase the growth structure also increase with this
effect. For the medium sized enterpriser if the growth in terms of job vacancy is increased it
provides chances to more employment in the business. The chances to provide employment to
people results in increasing the capacity of the employees which results in more productivity to
the company (Pham, 2018). There are more chances to earn profits by raising capital to the
employment ratio. If the unemployment is reduced in country it reflects the less poverty sign and
helps to expand business in different sector in the organisation.
Impact of large business in relation to economic sector:
To enlarge business in large sector it not only helps in domestic sector but helps globally to
expand the economic actives in the country at large scale (Lampadarios, 2016). If the business is
large the investors and lender easily lend money to the company and also trust the company
because of its brand name in the global market.
P4 Importance of micro business and start-ups to the economic growth of social economy
Social economy means depends upon the common objective of the company which is
related to society, their values and rules which they imposed in the organisation. factors reflects
the growth of economic factors in relations to society. Its importance to small business and start
up for the growth in UK are Firstly in terms of GDP Growth factor. As if entrepreneur
establishing its business, it helps the country to earn profits by producing and delivering products
in the market. As growth never stops in the sector it's the person choice to take the right
advantage to enter in the business.
Secondly it can be in terms of turnover ratio. If the small business can earn nominal
profits, they carry out the turnover profits to the upcoming year (Dada, Watson and Kirby, 2015).
Turnover decides the whole working of the company and also gives idea of company future to
stand in the near market. If the enterprise suffer loss in the any department than it affect the
whole department operation in the business.
To start small business it helps people to use their skills and knowledge in the form of
Employment (Welter and Gartner, 2016). Theses small start up helps the country to remove
from the poverty sector and provide chances to people to engage their resources in some useful
purpose and maintain this livelihood in the society.
D2
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SMEs helps to expand their business by brining new ideas and creativity in the business
and they are successful in the international level. This happens because of new technological
changes in market. Technology plays an important role to expand their business into different
sector (Wapshott and Mallett, 2015). This helps people to find jobs, easy availability of products
and services and business expansion can be done in smoother way. The start-up are also effective
at this stage as they provide more growth to the company structure and also job opportunities are
provided at large scale.
CONCLUSION
From the benefits of the above study it can be concluded that different types of business
provides the employment opportunities which enhances their economy and also bring profits in
the market. This strategy helps country to grow at large scale in the market.
LO 3 Determining the key aspects of entrepreneurial mindset
P5 Determining the skills and traits for successful entrepreneurs from other business managers.
Entrepreneurial mindset involves the creative, innovative and unique mindset to commit some
work for better use. They include various types such as getting positive results, profits earning,
facing risk and enjoy their work. Thus, entrepreneurs are the person who are individual and they
start their business with the aim of gaining profits and facing risk. Various Characteristic that
develop entrepreneurs differ from other managers such as ~
 Self confidence: This is the basic characteristics that helps business to grow in the
emerging market and continue making profits. They are had to build confidence that
there business will survive at any risk.
 Accept challenges: Without accepting challenges, target have no used to establish a
business. Targets are previously set and challenges are sorted so that business gets to
assumption for the certain time period (Lewis, Megicks and Jones, 2017). There are very
competitors in the market and if they are not ready to face the challenges than there is no
use to characteristics from different mangers.
 Targets to be Achieved: Successful entrepreneurs had to deal with some to do list to set
some goals and targets which is to be achieved at certain time period. If the set targets are
examined work hard to achieve the target and beat the previous records.
Various Skills for Successful Entrepreneurs ~
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 Technological Skills: With the up gradation in technology it helps the entrepreneur to
grow there business at next level (Cowling and et.al., 2015). As people are attracted
towards the fast and innovative technology to provide services and get delivery and that
the reason of getting more profit to business.
 Human Relationships skills: To make a successful entrepreneur the best way to initiate
skills is to build the relationship with customers, investors and users (Dada, Watson and
Kirby, 2015). They give business to the company if they are happy with the services
which enterprise is offering. This enables them to came more closure to the customers.
 Communication Skills: communication is the best strategy to get the business. As
customers are usually attracted with the people they communicated which behave well
while interacting. Investors first see the communication technique of the enterprise and
then ready to invest in the business.
P6 Aspects of entrepreneurial personality reflect motivation and mindset.
For running the successful business, mindset and motivation are major aspect to achieve targets.
 Positive thinking: To make a successful enterprise, positive thinking is the biggest aspect.
To set a business it takes time to be on a smooth scale. So positive thoughts and ideas
always helps the entrepreneur to be patience to handle the decision in the right way.
 In charge of certain Responsibility: Successful entrepreneur never gets back to take any
responsibility. As they are always ready to face new challenges which can be raised by
the competitors in the market (Doern, 2016). They have certain responsibility regarding
employees interest and welfare which they have to take care to continue the dignity for
success.
 Satisfaction Level: Some successful entrepreneur not only work to earn money but for
personal satisfaction level. This mindset and motivation help them to move in the
successful entrepreneurship. To judge the capabilities and skill of entrepreneur enhanced
the satisfaction level of job.
 Availability of Resources: For successful entrepreneur, the resource are mandatory to
achieve the success (Burns, 2016). Resources such as place, area, cash flow, people to
run the business. To start the business these are major aspects which provides profits and
brand name to the business.
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 Unemployment in Job: To run business, the biggest mindset is if the business is not there
they will be unemployed and cannot maintain their life and family status. This motivates
the entrepreneur to stand in the market with fully confidence and challenge the
competitors to damage their image in the market.
M3
As for individual entrepreneur, their background is the major aspect to overcome from the
problems and face the issue that are coming in the enterprises (Suriyankietkaew, 2019). There
skills and knowledge helps them to bring innovative thoughts and ideas and they can implement
them to expand their business. This strength encourage them to grow in the business.
D3
The examples of Mrs Zara working in Sainsbury company for 10 years. The
characteristic, skills and motivational are discussed with proper examples. Freedom to do job is
one of the characteristics that Zara implemented after left the job of Sainsbury company
(Lampadarios, 2016). Its Skill is that she is brave in nature as she itself opened a small enterprise
consisting of technical firm and manage the resource to make its successful. From the point of
view of motivation she had a clear vision to run its enterprise and she is innovative to bring new
techniques in the firm.
LO 4 Different environmental factors that affects entrepreneurship
P7 Relevant examples using background and experience to hinder or foster entrepreneurship.
Background Factors: For interpreting the background of the entrepreneurship, the best
examples for analysing the background is of Hilton Hotels and its strategy to became the best
among the hotels.
Hotel Overview: Hilton Hotel is a luxurious hotel having their brand in more than 190 countries
and usually targets the luxurious or superior business class audience. The first Hilton Hotel was
founded in the year 1919 in Dallas, Texas. Today, the hotel is an extremely popular name and
has the current revenue of US$8.90 billion. However, later in the year 2013, the Hilton
Worldwide which is the parent company of Hilton Hotels raised their IPO and hence became a
public company.
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Personal background: Conrad Hilton was the founder of the Hilton group of hotels and was the
first owner and beginner of the series of hotels that would turn out to be so luxurious in the
future. Initially intending to become a banker, the owner Mr Hilton instead decided to buy a
hotel and convert it into something more elite and polished with is brand name. This was the
beginning of acquisition and conversion of properties into various hotels which Conrad began
and it never ended until he died a natural death at the ripe age of 91 years.
Experience: It is extremely essential that as time passes, one gains more experience and
therefore, this need to be regularly incorporated in the operational activities. Hilton Hotel has
always based its expansion on this very concept and they have always incorporated newer
technologies and innovative ideas without getting redundant despite it being such an old hotel
franchisee. This has what led them to the top and made a huge name in the luxurious hotels
worldwide.
M4
Characteristics such as confidence helps the entrepreneur to build the business in the market.
Individual confidence establish the background of the person but sometimes it affects the person
as well (El-Gohary, Selim and Eid, 2016). As they already estimate success in market and this
result in heavy losses to the enterprise. Similarly, as with Skills and education have close
connection. The education of the individual enhance the background of the enterprise through
their skills.
D4
The negative aspects such as risk which influence the experience and background are
related to risk factor. In terms of Financial risk, every business has the specific budget to initiate
the project and expansion of business. For setting up a new venture finance is the major criteria
to deal with various products and services (Wapshott and Mallett, 2015). Company can grow
their structure or earn profit until they are financially stable. If Hilton hotel didn't have
investment to innovate new things in market such concept can be termed to be in a negative
aspect. The positive aspect is that of rewards. To motivate employees towards work the best way
to help them is promoting rewards in case of hard work and target achievement goal. Rewards
can be in case of salary increment, promotions and extra benefits which motivates them to
achieve goal in the enterprise.
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CONCLUSION
According to above study it can be conclude that entreprise and small business
management helps the business to encourage the economy of the country. For setting up new
business in the country various skills, capability and knowledge are required to earn profits and
maintain sustainable growth at small scale. It is examined in this report that micro business plays
an effective role to integrated the economy of the global world. Employment rates are usually
affected when the economy of the country fluctuates. For smooth running of business, the major
aspect is to assemble the needs and demands of the consumers and fulfill with high quality
wants.
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