Entrepreneurship and Small Business Management

This report explores the different types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It also discusses the impact of micro and small businesses on the economy. Additionally, it delves into the traits, characteristics, and skills of successful entrepreneurs, using Richard Branson and JK Rowling as examples.

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Different type of entrepreneurial ventures and the relation to the typology of
entrepreneurship.....................................................................................................................3
P2 Similarities and difference between entrepreneurial ventures..........................................4
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and private sector.................................................................6
P3. Interpretation of relevant data and statistics to define how micro and small businesses
effect on economy..................................................................................................................6
P4 Importance of SME to growth of social economy............................................................9
M2 classification small, medium and large businesses make to the economy, applying relevant
data and statistics....................................................................................................................9
PART 2..........................................................................................................................................10
P5. Traits along with characteristics, and skills successful entrepreneurs...........................10
M3 Different lines of argument relating to entrepreneurial characteristics.........................11
P6. Elements of entrepreneurial individuality depict motivation.........................................12
P7: Background and Experience could hinder or offers Entrepreneurship..........................12
M4 link between the characteristics and the impact of personal background and experience to
specific successful entrepreneurs.........................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
The Entrepreneurship is the pattern of performing the business to attention of large number of
individuals The owner of an entrepreneurial venture is termed as an entrepreneur. The present
report seeks to explore the different types of entrepreneurial ventures along with the typologies.
Moreover, it also involves the effect of SMEs on the national economy. Moreover, it involves the
elements of the entrepreneurial individuality that is represented the assistance of OCEAN model.
Lastly, it involves the skills of two very popular entrepreneurs including the elements that offer
the entrepreneurship.
PART 1
P1 Different type of entrepreneurial ventures and the relation to the typology of entrepreneurship
Entrepreneur could be viewed as an individual that is not afraid to experience risks as they have
the purpose to bring up with innovative and different offerings that have the potential to resolve
the issues faced by society at large. In relation to this, it is found that there are various types of
entrepreneurial ventures upon which a discussion is given beneath:-
Small business:
These are the way of entrepreneurial ventures which require lower amount of venture capital. It
is usually started by one individual and has the aim of generating satisfactory amount of
profitability and revenues through provision of goods and services of high quality. These
businesses function with the motive of earning huge profits. They consist of less than 50
employees and have an overall net worth of 2 million Euros. They do not have a wide scope as
the only purpose is to earn high in bring in the way of profits. Small businesses are majorly
found within the confines of construction and production sector. To example: Orion Elect
Rotech Limited
Large Enterprise:
These ventures require large amount of investment. High financial resources offer assistance to
them in expanding the growth and developing themselves in accordance with the market. The
main motive is to earn huge revenues as well as profits by undertaking risks. This company
consist of on 5000 individuals and have an overall turnover of 1.5 million Euros. They have a
wide scope as they intend to enhance the scale of operations with the passage of time. To
example: Marks and Spencer, TESC and many more.
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Social Enterprises:
These are the ventures which are setup with the sole purpose of ensuring social welfare of
individuals. Social entities are generally managed and run by trustees that intend to work in a
collaborative manner to the welfare of society as a table. These entities are usually funded by
large scale organisations as the aim is to earn goodwill in rapid course of time. To example:
Oxfam, Save the Children and many more.
Scalable Enterprises:
These are the ventures these entrepreneurs do not intend to run within the confines of small
business area. These entities emphasize on the provision of high quality offerings with a view to
maximise the profitability. They have restricted scope owing to its functioning with the concern
of all the partners. The main purpose of scalable enterprises is to enable business development.
Example: Partnership and automate solution
Types of entrepreneurship
Below discussed are the various typologies of entrepreneurship:-
Lifestyle enterprises:
These are the entities which are mainly aimed at inflating the standard of living of individually
by providing them with job opportunities. As a result of this, the lifestyle and living standards get
significantly enhanced.
Growth firm:
These are the entities this sole motive is to earn high profits and sale. The entrepreneurs hereby
bring up with new ideas so as to solve the issues faced by society and subsequently fill the
market gap to enhance the venture’s profitability (Bridge and O'Neill, 2012).
P2 Similarities and difference between entrepreneurial ventures
There are different types of entrepreneurial ventures that have already been discussed
above. In relation to this, it is also determined that these ventures differ from and are alike each
other on the basis of a number of elements. It is essential to take in account the similarities and
classification lying between the different entrepreneurial ventures to ascertain probable
opportunities and threats associated with the similar. In context to this, a discussion on the
similar is given beneath:-
Similarities between small, large, scalable and social entrepreneurs
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 All these entrepreneurial ventures run with the motive of attaining development and
growth so as to enhance the scale of operations.
 All the ventures intend to maximise the amount of profits so that the growth prospect to
the entities could be significantly enhanced.
 All of the entrepreneurial ventures capitalise upon innovation as the primary aspect to
gain the attention of large number of individuals and significantly attain competitive edge
at market-places.
 All the ventures tend to cater to the requirements and demands of market-places and fulfil
the similar to accomplish growth.
Difference between small, large, scalable and social entrepreneurs
Basis Small size Large size Social Scalable
Meaning These are the
ventures that
function at a small
scale.
These business
function at large scale
level by emphasizing
on location as the
primary aspect.
These ventures
function to the
society welfare at a
moderate level
(Dracker, 2014).
These are the
ventures which
function at scale
level.
Objects These businesses
intend to attain
maximum profits
and thereby
accomplish growth.
The main purpose of
this entrepreneurial
venture is to
accommodate
expansion of the
business operations.
These entities
intend to work to
the welfare and
development of
society and
completing the
requirements.
These businesses
intend to increase
profit through
expansion of
operating
activities.
Capital These kind of
entrepreneurial
ventures require
relatively lower
amount in the way of
capital investment to
These entrepreneurial
ventures requirement
high amount of
investment as capital
to accommodate
expansion in
These types of
ventures procure
funds from society
as they work for
social welfare.
These ventures do
not require large
investment to
starting the
business functions.
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carrying out business
practices.
maximum geographies
(Curator, 2016).
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and private sector
The various ranges of the entrepreneurial operation defines the type and nature of the
organisation in which the business and its all the activities takes place in the respective market.
The integral approaches of each and every relay in the business entity is also states the type of
range where the organisational can significantly stand and secure the position. The public sector
is majorly based on the appeals and the overall contribution of the normal public who are
associated as the member in the organisations’ ownership with their significant amount of share.
P3. Interpretation of relevant data and statistics to define how micro and small businesses effect
on economy
Within the confines of any corporate sector, it is the SMEs that capture the largest part of the
total proportion. These entities significantly contribute to the growth and development of a
national economy. With respect to this, it is witnessed that the quantum of SMEs has increased
on the period of time. This has led to a rapid increase in the revenue generated as a table. Effect
of SMEs is discussed in context of United Kingdom as follows:-
Figure 1: Comparison of SMEs and large businesses in UK
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As per the above graph, it could be said that there are large number of small and medium sized
enterprises within each and every sector in the confines of UK. Across the boundaries of this
nation, there are on 4.5 million small and medium sized businesses, which account to 99% of the
total businesses of United Kingdom. Thus, the revenues generated by these businesses have a
significant contribution towards the Gross Domestic Product of the country. Among the total
number of businesses across the country boundaries, 96 % are inhalational to accumulate micro
businesses that have staff of up to 9 individuals. Businesses are recognised to be providing 33%
of the overall job opportunities along with 22 % of the overall turnover.
Figure 2: Share of businesses in UK
As per the graph shown above, the quantum of small as well as micro business entities is much
more than medium and large scale enterprises within the confines of United Kingdom. In relation
to this, small and micro company gain 37 % turnover while providing 48 % of the jobs to local
people in United Kingdom.
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Figure 3: Business Type of Micro and Small Businesses in UK
The small and micro businesses could be duly categorised in segments like innovators (12.2%),
non-innovators (23.9%), exporters (13.6%) and non-exporters (33.2%). Thus, it could be seen
that the ways could be different, but SMEs contribute to the growth of British economy in a
significant manner.
P4 Importance of SME to growth of social economy
SMEs place a significant effect on the economic growth as could be seen here of
economy of United Kingdom. This nation has been feeding a large number of SMEs by
providing them assistance in terms of infrastructural and technological facilities. The out bring
gained by SMEs infers a major boost in the growth and development of economy of UK.
Moreover, the significance of enterprises in relation to the growth of social economy is discussed
as under:-
 Standard of living: Small and medium enterprise tend to inflate the standard of living of
individuals by rendering them the opportunity to work with them. As a result of this, the
individually do not leave UK to the purpose of getting employment in any other region.
This leads to growth of the living standards as well as British economy.
 Innovation: SMEs are the renowned stage of innovation. This company offers the
creativity among the individuals so that entity as a table may bring up with innovative
practices and offerings that own the capability of disrupting the market-places. When
enterprises incorporate innovation within the practices, it gives an overall push to the UK
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economy as the people of this nation have an inclination towards innovation,
differentness and creativity.
 Providing jobs: UK entails of numerous individuals that are semi-skilled and lack the
appropriate skill set of large scale organisations. SMEs offers work to individually and
develop the inhalation by provide nag them training. In this manner, small and medium
entities are able to retain individuals within the territory of UK.
M2 classification small, medium and large businesses make to the economy, applying relevant
data and statistics
The different types of business are classified on the basis of the size and their nature of
the operational activities that it certainly per ways iin orders to run their business. The SMEs
including the small medium and large enterprises certainly have an impact on the various levels
of economy including the local regional rational as well as on the global level. The SMEs have a
different role in providing the growth and structural development to the deprived as well as
struggling sections of the society. Hence with the view of entrepreneurial aspects it can be
regarded that the each and every type of business company has its very significant amount of
contribution and participation in the overall survival as well as the on the growth of the business.
The small business ways provide the employment to the local population of the particular place
where the company is prepaying its functions. The medium sized organisations are effectively
playing the role to manage the economic sources in the nation. As theses industries efficiently
provide the goods ad service iin the reasonable product and maintain the effective flow in the
market by purchasing the raw material from the suppliers at the standard prising. The large
industries often support the economy by enduring the business in various regions in the nation as
well as in the global level. Thus it can be inferred that the large organisations also affect the local
as well as global parameters of economy in certain ways.
PART 2
P5. Traits along with characteristics, and skills successful entrepreneurs
Entrepreneur could be inferred as the individual those that are eager to enduring risk that are
incoming with success. In context to this, the 2 very well-known entrepreneurs are Richard
Branson and JK Rowling. The traits, skills and characteristics are briefly described as follows:- Characteristics
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 Belief: This is regarded as a prominent characteristic of an entrepreneur whereby they
own confidence in the skill, competence and ability. Richard Branson and JK Rowling,
both were entrepreneurs that attain the belief and trust in themselves, providing them aid
in achieving rapid success. Traits Creativity: The entrepreneur is an individual that aims to gain the most effective outcome
from their creativity to bring with different offerings within market-places. Richard
Branson previously also connected with projects regarding entertaining services as well
as humanitarian service. Also, “Harry Potter” series of JK Rowling is liked people of all
age groups. Skills
 Learning Skills: Entrepreneurs are usually known to be eager to learn new things by
setting networking with individuals having more experience than them. The learning
largely owes to the childhood experiences, family experience, nearby scenario,
acquaintances. The similar could even be witnessed here of the respective entrepreneurs
as they considered the past faults as the learning and paved way to future so they can
avoid the same errors again.
M3 Different lines of argument relating to entrepreneurial characteristics.
There are multiple arguments can be used in support of the characteristics and attributes
of entrepreneurs as it has been infred that there are two crucial abilities should be there iin the
entrepreneur in order to effectively gain their objective and goals. The charcterstics along with
the traits and skills are encompassed with different integral features of the individual on which
they can work dam practice to develop each and envy factor of skills and traits in order to
become the most successful and efficient entrepreneurs. These abilities allows the entrepreneur
to effectively deal with the adverse condition that are more likely to be happen in the business
and this also enables them to find the most suitable and effective alternatives to cope with such
barriers. Here the belief is taken as the inner characteristic which should be [resent in the mind of
the entrepreneur at a moderate level as the much or less degree of believe is nothing but a loss
incurring elements. The entrepreneurs are considered to be those persons who have a high
willingness to attend their goals and respective target in order to do the most significant jobs and
get the highest level of distinctive outcomes from them the characteristics and certain traits
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effectively essential in the day to day practice of an entrepreneur. The creativity and innovative
approaches which an entrepreneur uses in the operations and task are certainly developed as the
trades to accomplish the significant amount of growth in there career. As if this fact it can be
ascertain that the effective learning skills are essential to adapt and learn the newer trends and
principles of the current shirts of market and to study the external factors with which Daikin
there strategies and planning to work according in such a manner that they can cope with the
negative and adverse effects of the market and create them in the most effective scenario of
working for them.
P6. Elements of entrepreneurial individuality depict motivation
An entrepreneurial individual encompasses numerous traits and skills as values, belief, cognition
and motivation (Santos, 2012). With respect to this, OCEAN model is put to use to exhibiting the
way through which elements of entrepreneurial individuality implement the mind-set and
motivation. The model is presented beneath in light of Richard Branson and JK Rowling:-
Openness: This in ways those entrepreneurs certainly own the zest of energy to attain
new inhalation. As they are eager to experience new projects that could inflate the learning and
inhalation base. Richard Branson and JK Rowling, both were open to take up new opportunities
to gain success.
Conscientiousness: It exhibits that entrepreneurs own the ambition as well as discipline
to accomplish the goal prior set by them in due course of time. In the similar manner, both the
entrepreneurs were eager to experience entrepreneurship so that they could offers offerings
which could gain the attention of large share of audience.
Extraversion: This aspect states that entrepreneurs are emotionally reactive and
energetic to the environment. They study the surroundings to identify the opportunity to build up
a venture. Richard Branson as well as JK Rowling were quite assured and confident thus with the
ooooooooooooo00 innovative and creative approach, they came up with influential offerings as
Virgin Airlines and Harry Potter book series.
Agreeableness: This factor depicts the scale of cooperation of entrepreneurs at the time
of work activity. This means it is a measure of the agreeableness to other individuals. In context
to this, both the entrepreneurs were quite cooperative in the entrepreneurial lives and owned
empathy towards others.
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Neuroticism: This aspect of entrepreneurial individuality demonstrates the control that
entrepreneurs own on the emotional state. Richard Branson and JK Rowling were stable and did
not let any of the hurdles of life hamper the motivation and mind-set.
P7: Background and Experience could hinder or offers Entrepreneurship
The lives and individual backgrounds of individuals place a significant influence on the
manner in which they get the professional life. In relation to this, it could be seen that
entrepreneurs are largely affected by the background of the parents, education and the individual
experiences of life time. The report is dealing with 2 main entrepreneurs named Richard Branson
and JK Rowling these life have been full of ups and downs yet they both of them were adamant
to pave the way to entrepreneurship and as a result of the strong will, are today recognised as
globally renowned entrepreneurs. Thus, it could be seen that there are a number of aspects which
have hindered or provided the course of entrepreneurship to the respective 2 entrepreneurs. A
detailed discussion on the similar is presented as underneath:-
Level of Education: The education which an individual has received places a significant
influence on the way of experiencing entrepreneurship. In relation to JK Rowling, it has been
determined that her education has strongly shaped the way to pursuing entrepreneurship as a
table. It has been witnessed she underwent an entrance examination to seek access to a renowned
college. However, it was seen that she failed in the exam and thus could not get the admission. In
the latter course of her life, JK Rowling took BA course in French (Galloway, L., Kaposi and
Sang, 2015). Later than that, she underwent work as a researcher that largely provided assistance
in moulding her individuality as an entrepreneur. After this, she came up with a series of novels
which helped her in gaining massive growth and recognition across the global periphery. On the
contrary, it was seen that the education background of Richard Branson was very poor. This
could be said on the basis of the fact that his teachers assumed him to either land in jail in some
years or as an entrepreneur with a prosperous venture. However, it was later that he became the
owner of Virgin Atlantic Group and became a renowned entrepreneur and inspiration to people
worldwide.
Family backgrounds as well as experience: It is acclaimed that family background as
well as individual experience of individuals also has a significant effect on entrepreneurship.
With reference to Richard Branson, it has been found that his family background accommodated
him to bring a successful entrepreneur. His parents supported his journey as an entrepreneur as
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her mother was herself an entrepreneur. In case of JK Rowling, it is seen that she used to recite
fantasy stories written by her to her sister. Her life was tough as her mother was diagnosed with
multiple sclerosis. Also, she did not have good relation with her father which moreover affected
her life negatively. But her will and passion towards writing made her the author of a renowned
series named Harry Potter.
Link between entrepreneurial characteristics and the impact of personal background and
experience to specific successful entrepreneurs.
M4 link between the characteristics and the impact of personal background and experience to
specific successful entrepreneurs
The effective and growing career of any business can be ensured with its present activities and
all the steps that the company and the entrepreneurs follow. Thus it has also been observed that
for the prosperous growth and the development of the entrepreneurship it is essential rat the
entrepreneur must have an efficient support of the background and personal acquits that help in
gain the edged effectiveness in the work and will also help in deterring the future prospects of
the entrepreneur. Thus in the context of both entrepreneurs it can be said that JK Rowling got an
effective care and ethics way her personal as well as professional background as it is well
renown that the family also plays and essential role to support the innovative mind-set of the
entrepreneur, therefor here it has also been observed that JK Rowling also nurtured with the
right an positive attitude from her family and it majorly helped and encouraged her to write
further and make her series so popular overall the globe. The experiences that both the
entrepreneurs got in their life and carrier are the one that help them in ascertaining the further
steps in the future regarding any discoing. Ther are many aspects which can be seen while
operating the business as impacting the functions of the firm in either positive or negative
outcomes. Thus in order to effectively maintain the equal balance among each and very factor in
their respective career, both entrepreneurs Richard Branson and JK Rowling are enabled with the
positive and most effective support that helped both of them to continue their work even iin the
most adverse conditions.
CONCLUSION
According to the different typologies of entrepreneurship and the informative knowledge,
it could be concluded that entrepreneurial ventures and typologies are of numerous types.
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Moreover, it has been determined that SMEs offers employment to local people, raise the
standard of living and bring up with innovative offerings. This reflects the contribution towards
the growth of an economy. Along with that, it has been analysed that entrepreneurs own
entrepreneurial elements as Openness, Conscientiousness, Extraversion, Agreeableness and
Neuroticism. Also, it has been said that there are numerous aspects which hinder or offers
entrepreneurship as family background, education and experience.
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