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Exploring Entrepreneurship and Small Business Management

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Added on  2020/10/22

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This assignment provides an in-depth exploration of entrepreneurship and small business management, drawing from various academic sources and real-world examples. It examines the state of the art in small business and entrepreneurship, strategic corporate entrepreneurship, and the impact of unemployment and income on entrepreneurship. The assignment also discusses the characteristics of successful entrepreneurs, poverty and inequality in the UK, and the relationship between entrepreneurial orientation and performance.

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Entrepreneurship and Small
Business Management

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Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. Different types of entrepreneurial ventures & relation of entrepreneurial ventures to the
typology of entrepreneurship..................................................................................................1
CONCLUSION................................................................................................................................3
P2. Similarities and Differences between entrepreneurial ventures:......................................3
M1. .........................................................................................................................................4
D1. .........................................................................................................................................5
P3. Statistical Presentation Of SME and It's Impact On Economy........................................5
P4. Insight And Explanation On Growth Of Social Economy After “Brexit”.......................6
P5. Characteristic, Traits and Skills Of Successful Entrepreneur..........................................9
P6. Assessment of Entrepreneurial Personality...................................................................10
M3. .......................................................................................................................................11
D3. .......................................................................................................................................11
CONCLUSION....................................................................................................................11
P.7 Mini Research On the background and Experience of Famous Entrepreneurs..............12
M4. .......................................................................................................................................13
D4.........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
ONLINE REFERENCES...............................................................................................................15
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INTRODUCTION
Entrepreneurship can be defined as an activity done by the entrepreneur by taking any
action to make a change in the world. The project report lays emphasis on the Entrepreneurship
and ways to manage new business. The report focus on some very famous and renowned
personalities that are business tycoons in the today's world. The assignment further, discusses
about types of entrepreneurial ventures; similarities and differences between them. Further, this
assignment gives a brief as to the impact of micro and small business on the economy. This duty
assignment, talks about the traits, skills, and features of an entrepreneur and also about their
personality and mindset.
Task 1
P1. Different types of entrepreneurial ventures & relation of entrepreneurial ventures to the
typology of entrepreneurship
Define Entrepreneurship: Entrepreneurship is defined as the process of creating a business or
even business with an ability to generate profit with taking risks.
Entrepreneurial ventures and different types of entrepreneurial ventures:
An entrepreneur is an individual who starts and runs a business with limited resources
and planning, and is responsible for all the risks and rewards of his/her business venture.
There are 4 types of entrepreneurship:-
Scalable Start-up Entrepreneurship:- Unlike small businesses, scalable start-up's are the
entrepreneur hotspots that are similar to the Silicon Valley, Shanghai; New York and
Bangalore do. These risk takers and their venture capitalist know that they have the
possibility of changing the world. This is the business that can increase the revenue
without additional sky-high incremental cost.
Social Entrepreneurship:- It also refers to the voluntary organisation. Applies the
commercial strategies to maximise the improvements in finance. It seeks to maximize the
profits while maximizing the benefits to society and the environment. Profits are
principally used to fund the social programmes.
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Female Entrepreneurship:- A type of entrepreneurship in which the feminist entrepreneur
by applying the feminist values and approaches through entrepreneurship focus on the
quality of life and well being of girls and women.
Typology Type of entrepreneurship
Small It is a business, which is privately owned and
operated with a few employees and relatively
low volume of sales. Small business are
generally private owned corporations;
partnerships or sole proprietorships. Legal
definitions of small varies by country to
country and by industry, that ranges from
fewer than 15 employees. Social
entrepreneurship represents small enterprise.
Medium Small and Medium Size Enterprise are those tat
employ less than fewer number of employees
in the organisation. Generally those with less
than 50 employees comes in the category of the
female entrepreneurship. Female
entrepreneurship represents medium size
enterprise.
Large These are such type of entrepreneurship, in
which a lot of retail and wholesale business are
involved. To please the corporate clients in
many fundamental respects clients. Not
different from pleasing the individual
customers. It is such an enterprise that has at
least 5000 employees in the organisation.
Scalable represents large enterprise.

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CONCLUSION
Here, in this report, various typologies of entrepreneurship is explained and different
types of entrepreneurial ventures are explained. Along with this the relation of typologies to the
entrepreneurial ventures is explained.
P2. Similarities and Differences between entrepreneurial ventures:
It is based on:-
Business Structure- Small Business Entrepreneurship is being treated as a privately
owned and operated with a few employees and relatively low volume of sales. Small
business are generally private owned corporations; partnerships or sole proprietorships.
(Dees, 2017). On the other hand Scalable Start up Entrepreneurship is unlike small
businesses, scalable start-up's are the entrepreneur hotspots that are similar to the Silicon
Valley, Shanghai; New York and Bangalore do. .
Size- Micro and small businesses both aim for survival in the market. Medium and large
companies are liable to pay tax. Small and medium both are kind of similar enterprises in
most.
Ownership- One is completely Voluntary and works for society with the motive of
maximizing profits and on the other hand, small business entrepreneurship is completely
a private sector.
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Business Structure Size Ownership
Small Business
Entrepreneurship is
being treated as a
privately owned and
operated with a few
employees and
relatively low volume
of sales. Small business
are generally private
owned corporations;
partnerships or sole
proprietorships. (Dees,
2017). On the other
hand Scalable Start up
Entrepreneurship is
unlike small
businesses, scalable
start-up's are the
entrepreneur hotspots
that are similar to the
Silicon Valley,
Shanghai; New York
and Bangalore do.
Micro and small
businesses both aim for
survival in the market.
Medium and large
companies are liable to
pay tax. Small and
medium both are kind
of similar enterprises in
most.
In small business
decisions were made
by owner and some key
leaders. And in
voluntary business
distributed decision
making is done by
organizational
hierarchy.
One is completely
Voluntary and works
for society with the
motive of maximizing
profits and on the other
hand, small business
entrepreneurship is
completely a private
sector.
M1.
The entrepreneurial ventures are in three stages and the description is as follows:-
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Entrepreneurial:- An entrepreneur is the one who takes risks of starting and running of a business
or a firm. Entrepreneur starts that business with the limited resources and takes up the account of
all the risks and rewards.
Entrepreneurship:- This is an entrepreneur of a bigger organisation who is highly self motivated.
Managerial:- In this case the individual of an organisation manages people, to accomplish the
desired goal of a business from the number of people.
The public sector entrepreneurship generates a greater sense of economic prosperity by
transforming the status quo which is more conducive to the economic units. On the other hand,
the corporate entrepreneurship refers to such an entrepreneurship which is not that much liberal
as that of public.
D1.
These are equally important for level of company. The scope and development is
increasing just because of recession in the UK.
P3. Statistical Presentation Of SME and It's Impact On Economy
Definition of micro business and small business
Micro Business: Micro Business is a type of business which are operated at very small scale.
Small Business: Small business is any kind of company in employees working in it are less than
500 in number.
SME is Small And Medium Scale Enterprise. Here, the information is given on basis of
no. of firms that are in operation since, 2000 (Mariotti and Glackin, 2015). Now, it includes, each
and every type of business irrespective of whether the business is based on region; industry;
births and deaths and also regarding, if there is any female who is representing the business.
In the year, 2017 there were almost 5.7 million business in all over UK.
Over 99% of business in UK comes in category of Small and Medium Size
Enterprise (SME) and around 250 people are employed here.
Approximately, 21% of SME's are leading by females and in FTSE, there were
100 female board members.

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SME's provided a total of 16.1 million of employment and 60% of employment in
private sectors in UK.
Annual Turnover of all the SME's if clubbed together, then it was £1.9 trillion,
which is 51% approximately of all the private sector turnover in UK.
In the year, 2017 almost, 1.3 million were employed in business and 4.3 million
were those who were not employed in business.
In London (UK), there were around 1,519 business per 10,000 thousand resident
adults and in North East there were approximately, 657 per 10,000 thousand
adults.
Service industries in UK that were accounted for 74% businesses, having turnover
of around 71% and 79% were employed.
Manufacturing Sector of UK is accounted for 5% of business; 10% of
employment and 15% turnover.
CONCLUSION
Now, moving to the trends in business population. There has been a continuous growth in
total business population (Scarborough, 2016). Majority of population growth since the year,
2000 that, has been due to non-employing business that accounted for overall increase of 89%.
There are non employing business that are responsible for a total of 79% of 1,97,000 increase in
previous year (Schaper and et.al., 2014). Here, the focus is laid on the working of small and
medium size enterprise. The emphasis is given on the data of number of working samall and
medium size enterprise in UK, London.
P4. Insight And Explanation On Growth Of Social Economy After “Brexit”
Social economy is generally taken to the third sector in which mixed capitalist economies
distinctive from private and public sectors. It can be defined as the collection of different social
objectives in different organisation that helps to make it up. Small businesses and start-up's
enterprises makes high growth in social economy with employing local workers. As a result, it
contributes to bring more innovative results in the community where business established. As a
result, it assists to concentrate on providing several opportunities to people who many not be
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employable on larger corporation. There are several businesses employed people with increasing
new jobs each year with more than 20%. It assists to make employment growth so that effective
results will be gain to attain overall targets and effectiveness (Poverty in the UK: statistics,
2018).
In addition to this, it is essential to focus on rising policies with greater fairness to
accomplish aims. Levels of inequality also deployed to address issues of past decades. Wealth
distribution housing cost that are undertaken with divided lines of income, geography, ethnicity,
age, etc. It ranks with more income that unequal within the country. As a result, income of
people increasing by 20%. It helps to increase employment opportunities that helps to
concentrate on provision infrastructure that contain by social amenities and innovations in small
and medium enterprises. As a result, it helps to increase awareness that helps to create more
effectiveness.
Illustration 1: Reduction on poverty and inequality
(Source: Labour's record on poverty and inequality, 2013)
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“Brexit” is a term, which means:- Exit of British/Britain from the European Union. The
process of Britain's exit from the European is because of the decision of that time president Mr.
David Cameroon in the year, 2016 (Burns and Dewhurst, 2016). Because of this decision, the
growth of economy also get affected and it was having the worst economic impact on UK as
compared to that of European Union. The very first impact was in respect of the unemployment.
Expanding in International markets, A lot of fluctuations in the exchange rates made by
the British goods and services which is more affordable for the international buyers and provides
them the additional opportunities for the businesses.
Poverty in Britain is a major issue and that too at the time of Brexit. Approximately, 14
million people are in jail of poverty. Child poverty is increasing continuously in Britain.
Brexit has also lays more focus on the employment of people. By the score of britain;s
population is suffering from the issue of job security. Of rthe major population, approximately
48% of EU nationals have reported increase in workforce.
Illustration 2: Wealth Distribution
(Source:- Brexit And Wage inequality before And After,2018)

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Social economy can be defined as, those areas that are helpful in fulfilment of social
objectives. Startup companies are generating profit and that revenue contributes in improving the
economic value of society members and support in improving wealth condition.
Brexit has affected the profitability and sustainability of many large business unit. By this
way these entities were unable to conduct their operations. At that time small business have
employed the people those who have been terminated by big organisations. This has helped in
minimising poverty and improving standard of living of population.
Profit generated by small companies help in raising infrastructure in country and
improving wealth of people. By this way they can nourish their family easily.
There was a possible reduction of Foreign Investment. Now, after the completion of
Brexit, the cost of Trade and Tariffs was higher as a result of which the investments got
decreased in UK (Hatten, 2015). When all this happened, then, FDI also got affected from its
negative effect. The resultant outcome was, inflows in FDI was lessened by 22%. United
Kingdoms, which used to be just a part of single market and had attracted many foreign
customers just because of the reason, no taxes and tariffs was levied on them and they could
easily export their products to other European Nations (Scarborough and Cornwall, 2015). One
more issue was regarding the Uncertainty Of Future Trade Relations. This could be the major
issue between trade relations of UK and European Nations. The trade relations between both
nations would have stopped.
In business nothing is big or small, it only depends upon the thinking of an individual. All
the successful and legendary business tycoons, whose case studies are been studied in the
management institutions have done their start-up's through small level (Julien, 2018). They have
also faced a lot of challenges and hardships at the initial level. But, they were passionate enough
and were focused towards doing something for the nation and to contribute in the economy of
country. So, the newly business school graduates can also contribute a lot in the economy of
business by applying their creative thinking and with the passion of improving the country's
economy and taking it to a newer height (Storey, 2017).
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Main thing, that contributes to the growth of economy or due to which the economy of a
country is measured is GDP. It is known as Gross Domestic Product (Andersson and et.al.,
2018). With its help only, economic health of a country is checked. Now, it can be calculated in
two ways:- 1.) Either by adding up the yearly earning of everyone in one year or by adding up
the expenses of everyone on yearly basis.
P5. Characteristic, Traits and Skills Of Successful Entrepreneur
Successful Entrepreneurs like Mark Zukerberg And Warren Buffet have following traits
in themselves and that makes them stand out of the crowd (Matchaba-Hove, Farrington, and
Sharp, 2015).
Disciplined:- This is the first and foremost thing which is required to be a successful
entrepreneur. One should keep on eliminating any sort of hindrance and always try to
work on the overarching strategies for the successful accomplishment of goals.
Confidence:- This is the second most essential thing that, an individual must have.
Reason Being, he is having knowledge that he will exude or implement at time of
achieving his desired goal (Hatten, 2015). For example: Mark Zukerberg is an
entrepreneur who was very confident for his innovative application. Thus, this
confidence has supported him to do well and achieve his goal.
Determination:- One has to be fully determined to achieve his goals and should not be
thwarted by the failure or defeats that come between the goal. Successful
entrepreneur just make their efforts in order to get succeed in their endeavours.
Open Minded:- One has to be fully open minded and should take each event and
situation as an opportunity (Mahadea, and Kaseeram, 2018). Always welcome new
ideas that are generated to the work flow and efficiency and potential of new
business. Mark Zukerberg was open minded that had helped him to think broadly and
prove himself in market.
Creativity:- One has to be creative enough to keep on trying new ways of completing
any task. By making connections between two different events they will re purpose
the product or design it in such a way that, it will be marketed to new industries.
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Following are some of the essential skills that are required to be a successful
Entrepreneur:-
Ambition:- Until and unless there wont be any goal/motive in life its like living
unnecessary and without any zeal to chase that goal. So, a successful entrepreneur
persists just because of ambitious nature (Goss, 2015).
Willingness To Learn:- The moment one stops learning, his life becomes constant. A
successful entrepreneur always keeps on learning and then only able to achieve new
heights in Corporates. Warren Buffet was having willingness to learn that had helped
him in establishing his business successfully.
Perseverance:- Many times in doing any new work a person either faces a lot of
hindrances/obstacles in doing it or gets failed in completing that task. But, it doesn't
mean, that we stop trying from the next time. In entrepreneurship also, entrepreneurs
achieve failures in starting, but, later on, because of their determination and courage
they achieve success (Laukkanen and Tornikoski, 2018).
Risk Taking Ability:- Without risk, a successful entrepreneur can't be born. In
entrepreneurship, there is risk involved in each and every step so, being focused on
goal an entrepreneur can exude the obstacles and can achieve success.
P6. Assessment of Entrepreneurial Personality
Some aspects of entrepreneurial personality are as follows:-
Passion:- Mark Zuckerberg was very passionate to become an entrepreneur as compared
to Warren Buffet (Laukkanen and Tornikoski, 2018).
Resilience:- Warren buffet was very resilient in his working as compared to Mark
Zuckerberg (Kuratko, 2016).
Strong Sense Of Self:- Any person who just don’t want to be an entrepreneur will be
having a number of excuses. But, the person who actually wants to be an entrepreneur
will explain regarding the ways in which the problems can be overcome. Warren buffet is
having strong sense but, mark Zuckerberg fits less in this aspect in his personality.

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Flexibility:- Being able to get familiar with the changes and challenges in the competitive
business environment plays a very crucial role. Both the business leaders are flexible in
the entrepreneurship.
So, the owners of both the corporate are different at their places and have different importance.
Comparison On Real Life of Mark Zuckerberg and Warren Buffet is as follows:-
Buffet is doing a great job in giving donations to charity on the other hand, Zuckerberg is the
world's richest person who is having Amazon and founder Jeff Bezos, the world’s richest
person with a $144.8 billion fortune, and Microsoft Corp. co-founder Bill Gates, with
$92.8 billion. wherer as Buffett, 87, once the world’s wealthiest person, is sliding in the
ranking thanks to his charitable giving, which he kicked off in earnest in 2006. He’s
donated about 290 million Berkshire Hathaway Class B shares to charities, most of it to
Gates’s foundation.
M3.
The arguments in the respect of entrepreneurial ventures are as follows:-
An entrepreneur musty have an ambition to achieve a desired objective and goal of business. He
must have that creativity that drives his organisation towards success.
D3.
An entrepreneur is required to be fully motivated; determined; have a sense of creativity
and not only this, he should be having the willingness to learn.
Freedom Oriented:- Mark and Warren Buffet were completely freedom oriented and
started their career with small business.
Visionary:- After meeting with other business tycoon they decided to change their firm to
a software organisation.
CONCLUSION
In this case, the focus has been laid on the assessment of the personality of the two
entrepreneurs that has the features and traits of both the entrepreneurs Mark Zuckerberg and
Warren Buffet.
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P.7 Mini Research On the background and Experience of Famous Entrepreneurs
The project report focuses on the background of two very famous business personalities:-
1.) Mark Zukerberg:- Owner of Facebook; 2.) Warren Buffet:- Owner Of Berkshire Hathaway.
Background of both these famous business tycoons is both were born and brought up in a
very comfortable and well educated families (Goss, 2015). One side where, Zukerberg was
whole heartedly, interested in computers and created a basic messaging program "Zucknet".
Gradually, he started making some programs at college level and made a social site that allowed
users to create their own profile and upload the pics and videos and also greet their relatives on
any special occasions. Mark Zukerberg had critical thinking capabilities; this has helped the
person in always think ahead and proving own self to the world. Education background and
family support has motivated person in facing difficulties of market and finally establish the
Facebook application.
On the other hand, Warren Buffet, worked as a stockbroker, with his father in the
childhood. and gradually, he started his business career at 13 years of age with horse-racing tip
sheet (Matchaba-Hove, Farrington and Sharp, 2015). He sold securities for his company- Buffet
Falk. By investing in other companies and purchasing their shares Buffet, opened his own
company, Berkshire Hathaway. He belongs from poor family but support of family members has
encourage him to do well and always work hard to achieve the goal.
So, with this it clear that, one should have courage and firm determination for making the
dream of entrepreneurship come true. There should be risk taking ability in the person who is
willing to enter in it (Julien, 2018). Because, this complete field is full of risks sometimes there
will be thrones of failure in your hand and sometimes you may get fruits of success. Along with
this, one has to be open minded regarding whatever suggestions he get from his colleagues and
subordinates should be whole heartedly welcomed by the to be entrepreneur (Storey, D., 2017).
He should accept each and everything with free mind. Having creativity of thoughts that should
be visible in the actions taken by him. It means that, every consumer is waiting for something
new and the entrepreneur should take suitable actions and should launch new products in order to
meet out the needs of ultimate consumer (Scarborough and Cornwall, 2015).
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So, these are some ways/tactics that will definitely, prove to be helpful for the
entrepreneurs. Mark Zuckerberg and Warren Buffet are those legendary entrepreneurs who have
set an example for upcoming entrepreneurs in the practical world (Storey, D., 2017).
Thus, it can be said that family background, education, status play significant role in
making a successful Mark Zukerberg entrepreneur.
M4.
There is a deep relation between the traits and features of an individual to that of his
personal background. Some are the factor of hindrances sometimes. The features of an
entrepreneur are:- he should be disciplined; motivated; confident and determined. Mark
Zukerberg and Warren Buffet both were having such features and qualities. By the score of, both
these entrepreneurs were successful in their life by adopting such type of qualities.
D4.
The background of both these entrepreneurs, were somehow or in other way, were
influenced by the support of their family. If talk about, Warren Buffet, then he was not supported
by his family but, the passion of becoming an entrepreneur motivated him and he was forced by
his passion to make the efforts in this field. On the other hand, mark Zuckerberg was supported
by his family members and he was just not required to make any effort for driving his passion
towards his goal.
CONCLUSION
In this report, a complete focus is made on the features; skills and qualitative traits that
are required to become an entrepreneur. The assignment further focuses on the, statistical data as
a proof in respect of impact of SME's on the economy. Report, is emphasizing the impact of
"Brexit" on the growth of economy and providing an insight to the upcoming entrepreneurs in
the corporate world on the start-up's. Now, at last, the report, is trying to highlight, the
experience of legendary business tycoons, that will prove to be fruitful for the future
entrepreneurs in doing the start-up's.

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REFERENCES
Books And Journals
Andersson and et.al.,, 2018. Female top management in family firms and non-family firms:
evidence from total population data. International Journal of Entrepreneurship and Small
Business.35(3).pp.303-326.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hatten, T. S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Hatten, T., 2015. Small business management, entrepreneurship and beyond. Cengage
learning. Boston, pp.491.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kraus, S. and Rigtering, C., 2017. Strategic corporate entrepreneurship: a configuration
approach-based case study. International Journal of Entrepreneurial Venturing.9(2).
pp.101-121.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning
Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research.24(2).pp.499-520.
Mahadea, D. and Kaseeram, I., 2018. Impact of unemployment and income on entrepreneurship
in post-apartheid South Africa: 1994–2015. The Southern African Journal of
Entrepreneurship and Small Business Management.10(1).pp.1-9.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management. Pearson.
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Matchaba-Hove, T., Farrington, S. and Sharp, G., 2015. The entrepreneurial orientation-
Performance relationship: A South African small business perspective. The Southern
African Journal of Entrepreneurship and Small Business Management.7(1).pp.36-68.
Morris, M. H. and et.al., 2018. Distinguishing Types of Entrepreneurial Ventures: An Identity‐
Based Perspective. Journal of Small Business Management.56(3).pp.453-474.
Scarborough, N. M. and Cornwall, J. R., 2015.Entrepreneurship and effective small business
management. Pearson.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M. T., and et.al., 2014.Entrepreneurship and small business.
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship.pp.176-
193.
ONLINE REFERENCES
Characterstics orf Successful Entrepreneur. 2017. [Online]. Available through
<https://www.investopedia.com/articles/personal-finance/101014/10-characteristics-
successful-entrepreneurs.asp>
Poverty in the UK: statistics. 2018. [Online] Available through:
<https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN07096>.
Labour's record on poverty and inequality. 2013. [Online] Available through:
<https://www.ifs.org.uk/publications/6738>.
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