Entrepreneurship and Small Business Management

This homework assignment provides a detailed analysis of entrepreneurship and small business management, covering various aspects such as different types of ventures, the importance of small businesses, characteristics of successful entrepreneurs, and the impact of background on entrepreneurial success. It also includes a reflection on the motivation and mindset of entrepreneurs.

Entrepreneurship and
Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P.1 Different types of entrepreneurial ventures...........................................................................1
P.2 Difference and similarities between entrepreneurial ventures..............................................2
P.3 Assess data and statistics of micro and small business.........................................................4
P.4 Importance of small business................................................................................................5
P.5 Characteristics and skills of successful entrepreneurs...........................................................6
P6 Reflection of Motivation and Mind-set of Entrepreneur........................................................9
P7 Impact of Background on the Entrepreneurship...................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is very important for all organization and all firm start their business
from small business and it success only through well entrepreneur. Skilled and Entrepreneur
demands by all type of organization because it creates new ideas in organization that helps in
improve and develop of performance, productivity and profitability (Zahra and George, 2017).
So, they also expand business and develop new products for growth of business. For overall
work and achievement they motivate to employees that helps in provide products and services
and produce value for increase goodwill of organization. Entrepreneur and small business
manager both are lead their employees and business. This report will be cover types of
entrepreneur venture and similarities and difference between them. Impact of micro and small
business on economy, importance of small business and skills of successful entrepreneur and its
characteristics.
Task 1
P.1 Different types of entrepreneurial ventures
Ventures will be those business organisation which are intended to work within
community and industry to produces products and services. Entrepreneurial ventures has four
types and through all ventures work for increase value and growth of organization that increase
profit and work with limited resources in effective and systematic manner.
Low growth venture:- this type of ventures is known as small business and it presents in
small and medium business because there small quantity of employees engaged and annual
turnover also very low. So low growth ventures make plan for achieve goal at small level. It
provides motivation to employees and members of organization for work with limited resources.
High growth ventures :- organizations adopt high growth ventures for increase profit
and growth. This types of ventures use for large scale organization. This types of ventures helps
in organization there workers are engaged in large quantity and annual revenue also very high so
high growth ventures create different great ideas that helps in improve works and helps in profit.
Because large scale industry has needs of huge budget so skilled and efficient entrepreneur
provide all things in effective manner.
Scalable ventures :- this types of ventures always include large enterprises and work on
high scale. It need is very high in large and huge enterprises because it has to make strategy on
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large level and investment also very large so skilled and efficient entrepreneur present in large
organization (Kloepfer and Castrogiovanni, 2018).
Social ventures :- social ventures are use in volunteer organization that works for social
welfare and not focus on making profit. Social ventures provide ideas and helps in increase
strategy and collect donation from different sources and use for invest in different social welfare.
It main purpose is helps to poor people.
Typology of entrepreneurship:-
Survival firms :- survival firms are those firms that carry family business and all
generations are engaged in organization for carry forward and improve and develop to
organization according to change everything. Arcadia is survival firms in UK because it carries
by family members. Survival firms are included in high growth ventures because it increases
business quickly through increasing profit and revenue.
Lifestyle firms :- it is a typology of ventures that establish and operate by individual and
group of peoples. Fashion seller and manufacturer of clothes are included in this venture. It is a
low growth venture because it start from low level and increase their business slowly. It has to
also produce their all products according to choice and trend of customers.
Aggressively growth ventures :- it is included in scalable ventures because this type of
organizations growth very fast and increase technology and adopt strong innovations for improve
and develop very fast.
Social enterprises :- it is a type of social ventures and it includes NGO's. Cancer care is
asocial firm in UK. That focus on helps to cancer patient and provide free treatment of them.
This type of firms work for social welfare and helps to poor people for improvement (Eftekhari
and Bogers, 2015).
Difference Entrepreneur Intrapreneur Owner-managers
He is regarded to as
owner of company
who is responsible for
running and owing the
organisation
While he is regarded
to as employee of
company
On the other hand
they are person who
are both owning and
managing business
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P.2 Difference and similarities between entrepreneurial ventures.
Difference between entrepreneur ventures:-
Bases High growth venture Low growth
ventures
scalable ventures Social ventures
Purpose This type of ventures
has purpose is
earned high profit.
It has purpose of
earn low profit
and increase
slowly.
Its purposes is
aggressively
improved and
expand for profit.
It purposes is not
make profit but
provide welfare
and helps to poor
people.
Capital
investment
Its invest more
money and high
capital for adopt
technology that
helps in improve
business.
It less focus on
technology and
invest less money.
It highly invests
capital in
technology.
It does not focus on
capital investment
because it is not
work of operations.
Managerial
style
Managers of these
ventures adopt
autocratic style for
manage all
performance and
making decision
(Dees, 2017).
Low growth
ventures adopt
democratic style
because It has to
take decision with
people otherwise
labor turnover
increase and it
effects on
performance.
It uses strategic
style for
management.
Social ventures use
coaching
management style
for lead, inspire
and encourage to
employees of
organization.
Source of
finance
High growth
ventures has many
sources of finance
like equity, debt,
term loans and
Low growth
ventures has
sources of funds
like government
funding, friends
Scalable ventures
source of funds
that public
markets, banks
and private
Its source of funds
through donation,
charity for welfare
of poor people.
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venture funding that
use by these
ventures for increase
capital and finance.
and family. investors.
Similarities between entrepreneurial ventures:-
Create ideas :- entrepreneurial ventures are four types like high growth, low growth,
scalable and social ventures and all ventures has similarities that they create new ideas for
achieve their targets and meet objective.
Optimum utilization of resources :- all ventures also focus on optimum utilization of
available resources because all has purpose is achieved target and more productivity with low
cost and limited resources.
Increase investment :- every ventures and organization has to need of investment that
helps in run business and increase revenue so all ventures also maintain sources of finance
according to size of business for fulfill their target.
P.3 Assess data and statistics of micro and small business
Micro business is companies that annual sales and assets only 250000 per year and total
number of employees engaged in this type of business are 250. In United Kingdom, 5.2 million
SME's it is 99 % of total business. Small and micro business in United Kingdom play vital role
and increase all over profit and it put also impact on economy. It means that small and micro
business is provided growth of economy through contribute with different sectors so its helps in
growth of country and maximum contribute. Maximum employment is provided in United
Kingdom through small and micro business because is provided 70 % employment and 15.7
million people engaged in SME's. So it shows that 50 % of entire population engaged in small
business. It focuses on increase 25000 jobs by 2021. Firms like T.V. Production, machinery
repair and health care are included in SME's. So it proves that this types of organization majorly
provide employment so it effects on economy because through this economy growth and people
also success through that and increase standard of living and prevent poverty as well.
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Figure 1: Growth in UK businesses in the private sector by number of employees (2000-2018)
[Source: UK SME Data, Stats & Charts, 2019]
Figure 2: Median Profit of SME’s With a Turnover of Less Than £25m, By Sector
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[Source: UK SME Data, Stats & Charts, 2019]
Turnover also increase through small and micro business in UK because through this
almost 47 % turnover create. It means that approx half part of turnover contribution is provided
by small and micro business. Its turnover reached £1.8 trillion and it helps in growth of economy
of country. It increases export and increase productivity that earn foreign currency and it focuses
on increase business at global level that engage more employees for increase productivity. This
helps in increase in turnover and economy as well. So it plays vital role in economy of UK and
peoples get opportunity for job. Technology improve and develop through SME's because they
provide products and services to customers according to their choice, fashion and trend. So all
above data prove that small and micro business in UK contribute majorly in economy and
increase foreign currency through import and export (Belz and Binder, 2017).
P.4 Importance of small business
Small business play vital role in UK that give major contribution in increase economy
that helps in growth and increase standard of living. These things help in decrease poverty and
improve financial condition of peoples. Following are importance of small business.
Creation of employment :- small business create large employment in UK. Many
business establish and run in UK but mostly include in small business. Small business includes
machine repair, health care and many work so peoples are done job in UK with small industries.
It provides satisfaction to customers for provide effective goods and services for attract
customers. Import and export also increase through this business that has need of large number
of employees and it creates more and more employment.
Innovation :- innovation also increase through this and small business important for
increase innovation in organization that helps in improve and develop products and services.
Because they do business at global level so different demand, choice, fashion and trends are
running in different countries and all these things frequently change. So they have to adopt and
establish new innovations and technology for Improve according to demands and produce more
products for distribute large number of products.
Engage significant number of people :- small business is important for include all type
of people because it establishes for produce products but these work has no need of large skills
and efficient employees. So it includes and engage all type of people like poor people,
uneducated people and lower class of people. All people earn money because business provide
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wages and salaries on daily bases and weekly bases. It prevents poverty and aware to people for
do work (Ramoglou and Tsang, 2016).
Increase standard of living :- in UK small business settle at large level small business.
Mostly and large population of UK engage in small business for earn money so through this it
fulfills their needs and get satisfaction. Standard of living increase of people because every
people earn money and they also gain knowledge.
Corporate social responsibility :- CSR majorly increase through small business in
social economy and all are followed this framework because it provides benefits to employees of
organization and produce products according to customers choice and trend. It also has to
understand beliefs of society because society has different types of beliefs. Small business
responsible for employees health and safety that attract to employees and they work their full
efforts. They have top care environment and maintain sustainability through prevent pollution
and limited use of natural resources and save for future generation. Overall it is also important
for maintain CSR because investors increase their investment for increase their capital. This
framework use for development of social economic.
Local improvement :- small business established in United Kingdom so local
improvement also increasing because new industries and factories established and different
areas. So electricity improve in local areas and roads also improve in nearby areas of factories.
Transportation develops through small business because import and export and business in
country is possible only by well transportation. All these things helps in local improvement (Acs,
2016).
P.5 Characteristics and skills of successful entrepreneurs.
Philip green is a successful entrepreneur because it has many traits and characteristics that make
him successful, well and great entrepreneur. Following are traits and characteristics of Philip
green:-
Innovative :-Philip green has main characteristic is innovative Because through this trait
they innovate many new ideas for improve and develop business so he expands business only by
innovation. Entrepreneurs conduct research of markets and understand all things like customers,
trend, thinking of customers. Bases of all research it innovates ideas for improve and launch of
new products for provide customers satisfaction through fulfill their needs. This helps in attract
customers and make image in market.
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Risk taker :- it is a major trait and characteristics of entrepreneur Philip green. He is a
risk taker and tolerance power is also very high. So it is major reason of success. Through this
trait he invests high and large amount of capital in scheme for increase business and take high
risk so this trait also make to him success. If entrepreneur do not take risk that they can not invest
capital and profit also not increase of organization (Acs, 2018).
Skills :-
Confidence :- this skill is contributed in success of business of Philip green. Through this
he motivates to employees. Confidence is very important for entrepreneurs that provide self
respect and they do work very effectively with patience.
Coordination :- it is very important for entrepreneur and it is major skill that establish
coordination in organization so sir Richard success through these skills because he establish
coordination between them so all employees of organization work with together and in effective
manner.
Sir Richard branson is an entrepreneur of virgin airways and his characteristic and traits
are very helpful in success of business. So following traits are present in him :-
Leader :- sir Richard Branson has important trait is leader because through this trait
entrepreneur can lead to employees of their organization. This trait is make successful to
entrepreneur in their business and he also motivates to their employees and improve their skills
and knowledge of employees through provide training that helps in increase productivity and
profitability.
Vision and mission :- entrepreneur Richard Branson has clear goal, mission and vision
about their business so it helps in achieve their targets and goals that make him successful.
Because if vision and mission is clearly established so entrepreneurs make and create effective
plan for achieve target and objective (Eesley and Miller, 2018).
Skills:-
Communication skills :- effective communication of Richard Branson make him to
success. If entrepreneur communication is effective so it takes easily success. Sir Richard
interact with their employees and members of organization so they attract and inspire from him.
He also listens to their members that it helps in success in their business.
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Manage money :- This entrepreneur has skill of manage money and he easily run their
business and this skill make successful. Entrepreneur easily make plan and strategy for invest
their money and capital at right place for get return.
Difference between manager and entrepreneur:-
Points Entrepreneur Business Manager
Risk Entrepreneur always take risk
for achieve target and expand
their business so it bears
financial risk (McKeever,
Jack and Anderson, 2015).
Mangers does not bear risk and
it works only for salary.
Focus Its focus on expand business
and increase revenue and
profit of organization.
Managers focus on to do work
smoothly and manage existing
work.
Motivations Its get main motivation from
achievement success.
It get motivation according to
their power that get with their
position.
Reward It has reward is profit of
organization.
It has reward is salary.
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P6 Reflection of Motivation and Mind-set of Entrepreneur
The mind set of an entrepreneur and their motivation level reflects in their personality.
This approaches shows their mind set and this reflects from their personality. There are some
approaches of individual person shows their qualities in the entrepreneurship (Chedli and
KCHAICH, 2016). The reflection of the qualities in entrepreneur’s personality can be explained
with ocean model.
Ocean Model
Openness to Experience
Vision of an entrepreneur wide and open for the new ideas. This helps them to try new
things in the business. The person checks the vision of the organization on the daily basis which
helps him to stick up with the organization goal. This behavior of Richard Branson shows their
quality and skill of an entrepreneur. This wide mind set makes him open to the new ideas which
can help them to grow in the business. This open mind set reflect with their personality and
approaches (Barba-Sánchez and Atienza-Sahuquillo, 2017).
The wide vision provide them to gain ideas from the colleagues which improves their
performance. This behavior towards the employees of the organization reflects the motivation
level and dedication towards the company and company goals. This motivation of Richard
Branson motivate other employees to perform better. This motivated personality and mind set
increase the opportunity for the organization (Schjoedt and Shaver, 2019).
Consciousness
This quality of an entrepreneur reflects from their mind set. They learn on the daily basis.
Their approaches towards the learning outcomes form the different challenges shows their
positive behavior this shows. The reading and learning is important part of Richard Branson and
this helps them to calm down and think different. This reflects through their mind set and this
behavior improve their knowledge which improve their motivation level. Learning from reading,
challenges and failure shows their mind set and their motivational personality.
Extraversion
The approach of the entrepreneur towards the challenging is from all direction to seek for
the best way to solve the problem or complete challenge. Mindset of the entrepreneur allows
them to look for the different directional approach towards the challenge and this improves their
problem solving skills which is helpful for the organization. This kind of thinking in the
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challenging situation reflect the self-motivation of Richard Branson (Gomezel and Rangus,
2018). This how the problem solving approach shows the mind set and motivation level of the
entrepreneur.
Agreeableness
Person with this quality have better attitude and behaviour with the employees. They
usually get agree with the employees and their ideas. This helps him to satisfy the emotional
needs of employees and gain their trust. The personality of Richard Branson is always seeking
for challenges and he is not afraid of these challenges. This make them feel adventure in the
business. In the business an entrepreneur have to face challenges on daily basis and a good
entrepreneur never afraid of the new and tough challenges and they take it as opportunity and
make it good for the company by their effective approach. The accepting the challenges is in
their behavior and are reflecting from their personality (Zhao, 2016). If they face any kind of
failure learn from it and it shows their motivation in daily life.
The accepting the challenges is good quality for the personality of Richard Branson. The
person is the manager and the leader of the company and it is good for the organization that
leader of the organization is ready to accept the different challenges in the daily routine. This
shows their motivation level and positive approach towards the organization and this is visible in
their lifestyle (Mukherjee, 2016).
Neuroticism
This means a good entrepreneur don't have any kind of unwanted mood swing. The
behaviour of the entrepreneur is constant and according to the situation which helps him to stay
stable. The good control on the feelings helps an entrepreneur to treat the employees in the right
way which helps him to providing more control on the situations.
These qualities make them the best entrepreneur and their personal qualities like
dedication fore work, want more than money, positive thinking and positive actions and staying
motivated makes them great entrepreneur.
P7 Impact of Background on the Entrepreneurship
The first entrepreneur who is considered as one of the best entrepreneur all over the
world. Philip Green is from UK and the founder of the company Arcadia which is well known
organization
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in the world. Philip Green was born in year 1952. Arcadia is the retail store including the
Topshop, Topman, Wallis, Burton and outfit and others. The BHS chain is also the part of the
group. Green was born in a middle class Jewish family and his father was a successful property
developer. In the age of nine he was send to the non closed Jewish boarding school. In the age of
twelve his father died cause of the heart attack. After leaving the boarding school at age of
fifteen joined a job with footwear importer. In age of 21 he started his own business and
imported jeans from far est to sell it to the local market. His family helped him to in loan of
20000 Euros. Then he bought a reversed cloth batch and hang it on hanger and sell it to earn the
profit. Initial poor condition of the family and education background helped him to grow as great
entrepreneur.
The poor financial condition of family helps him to develop the creative thinking to
perform the business. In the starting of the business he faced many problems which affected his
business and after experiencing these failures he started learning from the mistakes and this helps
him a lot to lead the Arcadia retail company. Now the Arcadia is one of the largest street chain
company for retail shop in UK.
The second entrepreneur is Sir Richard Charles Nicholas Branson is businessman and the
founder of the Virgin group which controls more than four hundred companies. He started the
business of a magazine at age of 16 which title was Student. In 1970 he has started the business
of mail order and then opened a store of records. In 1980 his business starts to grow because he
started an airline named as Virgin Atlantic Airline. He was considered in the top 100 effective
personality in the world. Richard Branson was not good at studies but this didn't stop his
capabilities. The creativity and the business mind which was developed at age of 16 helps him a
lot to grow as a business tycoon. Richard Branson gained the experience from the business he
has done in the past and implementation of this experience in the new business help him to get
rich and a great entrepreneur.
CONCLUSION
From above study it has been summarized that entrepreneurship play important role in
organization for success and increase of profit and revenue of business. It also expands business.
This report also covered that different types of ventures present in different organization. Small
and micro business play vital in UK and most population engaged in this organization. Skills and
characteristic make successful to entrepreneurs in their business and helps in take risk.
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REFERENCES
Books and journals
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Acs, Z.J. And et.al., 2016. National systems of entrepreneurship. Small Business Economics.
46(4). pp.527-535.
Barba-Sánchez, V. and Atienza-Sahuquillo, C. 2017. Entrepreneurial motivation and self-
employment: evidence from expectancy theory. International Entrepreneurship and
Management Journal. 13(4). pp.1097-1115.
Belz, F.M. and Binder, J.K. 2017. Sustainable entrepreneurship: A convergent process
model. Business Strategy and the Environment. 26(1). pp.1-17.
Chedli, E.P. and KCHAICH, M. 2016. ENTREPRENEURIAL MOTIVATION AND
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Ramoglou, S. and Tsang, E.W. 2016. A realist perspective of entrepreneurship: Opportunities as
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Schjoedt, L. and Shaver, K.G. 2019. Entrepreneurs’ motivation: a conceptual process
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Zahra, S.A. and George, G. 2017. International entrepreneurship: the current status of the field
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Zhao, Y. 2016. Entrepreneurial mindset. Education for Sustainable Happiness and Well Being,
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Online:
UK SME Data, Stats & Charts. 2019. Accessed through: <https://www.merchantsavvy.co.uk/uk-
sme-data-stats-charts/>
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