Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management

Table of Contents
Entrepreneurship and Small Business Management........................................................................1
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different Type of Entrepreneurial Ventures and their relation with typology of
entrepreneurship...........................................................................................................................1
P2 Similarities and Differences between Entrepreneurial Ventures............................................2
LO 2.................................................................................................................................................3
P3 Impact of Micro and Small businesses on the Economy........................................................3
P4 Importance of Small Businesses and Business Start-ups to the growth of social economy...5
LO 3.................................................................................................................................................7
P5 Characteristic Traits and Skills of successful Entrepreneurs..................................................7
P6 Aspects of Entrepreneurial Personality reflects entrepreneurial Motivation and Mindset.....8
LO 4.................................................................................................................................................9
P7 Role of Background and Experience in fostering and hindering Entrepreneurship...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Ability to develop, organise and run a business is known as entrepreneurship which
requires to bear all the risk and losses and enjoy all the profits and perks. The individuals who
undertakes and perform all the required activities for business enterprise are known as
entrepreneurs. From this explanation it may look like this is business and businessman. But there
is significant difference between business and entrepreneurship which is that entrepreneurship
has a special element of innovation that is not there in business. This report includes discussion
about entrepreneurship and also discuss Mark Zuckerberg one of the most successful
entrepreneur world has known. Mark Zuckerberg founder of Facebook which is a social
networking site. Entrepreneurs seek to feel the gap between customers and consumers demand
and wants and products that are available. This report discusses all factors and features of
entrepreneurship that starts from explanation of various type of entrepreneurial ventures to
whether entrepreneurship is affected from background of entrepreneur.
LO 1
P1 Different Type of Entrepreneurial Ventures and their relation with typology of
entrepreneurship
Small Business Entrepreneurship- Small business entrepreneurship refers to small businesses
that are developed and run by individuals. These businesses are grocery stores, hairdressers,
travel agents, carpenter, electricians etc. These people run their own businesses. Local or family
people are hired by them to help them (Guerra, Clarysse and Wadhwa, 2019). Profit earned from
these businesses is very minimum and individual is able to fulfil only basic needs in most of the
cases.
Scalable Start-up Entrepreneurship- Entrepreneurs who know that their vision could change
the world start this type of businesses. Investment and funding of these type of businesses are
sourced from venture capitalist who are able to see the benefits and profits that company will
have. Employees which are hired in this type of companies are bright and best among the
available. These businesses are generally successful and entrepreneurs' focus remains on
increasing scale of the business which requires more venture capital. The entrepreneurs that start
and run these type of businesses can be considered as research entrepreneurs. They first research
about possibility and what they can offer and in what manner their research can change the
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world. These entrepreneurs do not believe in copying idea of someone else. Facebook is an
example of this entrepreneurship venture.
Large Company Entrepreneurship- Companies that have a definite life cycle and sustain in
business through constant innovation and offering new products are this kind of entrepreneurship
ventures. These companies require huge capital investment and focus on providing what
customer is willing to buy. Such companies are affected by various factors like change in
customer taste, new technologies, legislation change and competitors. These companies and
ventures produce their products in large quantity and offer their products to large number of
people by setting their customer focus. Profit earned by these companies are huge and
disbursement mostly depends on the legal structure of the company. These type of ventures are
started and run by entrepreneurs that can be considered as determined entrepreneurs these
believe that their vision will work, and they are able to achieve what they want to achieve. Many
times these entrepreneurs leave legacy that businesses run beyond their lifetime for this their
focus remains on scaling.
Social Entrepreneurship- Innovators who start their venture so that they can solve problems of
society and can make the world a better place. Their businesses can be non-profit, for-profit and
hybrid but their main concern is solve problems of individuals of the society (Leitch and Volery,
2017). Entrepreneurs who wish to serve society and its people by providing what is required to
them and what can add value to the life of individuals if they are having it. These thoughts and
vision encourage individual to become social entrepreneurs.
P2 Similarities and Differences between Entrepreneurial Ventures
Similarities or common features of entrepreneurial ventures are as follows-
Except Small business entrepreneurs all other businesses seek to provide something that is
innovative and what people have not experienced yet.
Except Social business entrepreneurship other businesses are focused on increasing their profit,
which may different in its size on the basis of nature and size of the venture (Mazzarol and
Reboud, 2017). For example, multinational company entrepreneur is likely to earn more profit
than a large company operating within the boundary of a nation.
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