Entrepreneurship and Small Business Management - European nation

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial venture and their relation with the typology of
entrepreneurship..........................................................................................................................1
P2 Present the similarities and dissimilarities among different entrepreneurial venture ...........2
TASK 2............................................................................................................................................4
P3 With relevant data and statistics illustrate how micro and small business impact on the
economy......................................................................................................................................4
P4 How small businesses and start up business contribute to the economy after the incidence
of the Brexit.................................................................................................................................5
TASK 3.......................................................................................................................................6
P5 Examine the characteristic,traits and skills of two successful entrepreneur which
differentiate them from other managers. ....................................................................................6
P6 Reflect aspect of the entrepreneurial personality motivates others........................................7
TASK 4............................................................................................................................................9
P7 Illustrate how background and experience can hinder or foster entrepreneurship................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Entrepreneurship is the essential component which help nation to succeed and survive in
changing and competitive global scenario. An entrepreneur is the person who set up a new
enterprise after estimating all financial risk for making profit (Preuss, 2011). Entrepreneurship is
the capacity and willingness of the individual towards establishment,organization and
management of the productive enterprise for attaining profit. In this assignment there is a
discussion about the different entrepreneurial venture and relation with typology. Also, there is a
brief study taken place to know how Brexit impact the economy. It also describe the support of
small and medium business for recovering the adversity taken place due to UK separation from
European nation. Moreover,it present the two successful entrepreneur characteristics and skill
which support them in making strong presence in the market . In addition, it present a content
which inform how entrepreneurs past life motivate them to become different from others.
TASK 1
P1 Different types of entrepreneurial venture and their relation with the typology of
entrepreneurship
Entrepreneur : An entrepreneur is an innovator or developer who find the opportunities
and convert them into valuable ideas through time,money and skills for getting rewards.
Entrepreneurship : It is the process under which individual examine
opportunities,allocate resources and create a value. Entrepreneurship is the method of
designing, launching and continuing a small business.
Entrepreneurial venture : It is an organisation which place innovation in order to earn
economic and social value. These ventures main concentration is generally on bringing
something new and innovative. Because of the presence of these ventures, society get the thing
which is entirely unknown to them. (Scarborough, 2016)
Different types of entrepreneurial venture are as follow :
Small business entrepreneurship : Small businesses generally start from taking fund
from relatives ,friends and loan. These business usually do the similar kind of work which is
already in existence. It includes grocery stores, salon, travel agent,plumber,electricians and many
more. Small business entrepreneurship owner is generally sensitive as they treat their business as
part of family.
1

Large scale entrepreneurship : These entrepreneur continuously brings new product
into new market for their customer in order to meet their change in taste and advancement in the
technology. These enterprise generally grow by doing innovation, offering different product. Due
to innovation large company activities,culture and working get fully disturbed.
Social entrepreneurship : These are the innovators who create a product and service in
order to solve the social needs and problems. Their main aim is not earning profit but work for
the welfare of the society (Storey, 2017). They want to create a world good place by uplifting
the poor class.
Typology of entrepreneurial venture
Serial entrepreneur : These are the entrepreneur who continuously start new enterprise
and sell off that enterprise at a later stage They start business with a new idea and then later sell
it the subordinate to make another idea reality.
Lifestyle entrepreneur :Lifestyle entrepreneur start business in order to make changes
in their present life style by earning profit. It is started by an individual to satisfy their passion
and preference of the life. Lifestyle entrepreneurship gives individual freedom to pursue their
interest of the life at the same time with their business .
Female entrepreneur : Females who initiate or implement business activity is known as
female entrepreneur. Female entrepreneurship is supported by the women participation in equity
and employment. Female entrepreneur are those who contain feminist values in their working.
Social entrepreneur : An individual who starts a business with the aim of serving the
society. They provide the entrepreneurial approach to organise, create and manage the social
problems (Dennis, 2011). Social entrepreneurs bring several changes in the nation for reducing
the social problem through innovation and path breaking solution.
2

P2 Present the similarities and dissimilarities among different entrepreneurial venture
Basis Lifestyle entrepreneur Serial entrepreneur
Similarities  They want to create
something different for
the society.
 They make efforts to
provide qualitative
product to the
customer.
 They want to provide
something new which
is unknown for the
world.
 They provide the
product with different
features and quality.
3
Illustration 1: What is entrepreneurship.2015

Dissimilarities  An individual start this
kind of business for
making changes in
their life style and not
only start for making
profit.
 They start a business to
satisfy their passion
regarding that area
(Neck and Greene,
2011).
 An serial entrepreneur
is a person who start
one business and then
move to another by
giving its responsibility
to some subordinate.
 They start a business
activity to earn large
percentage of profit.
Basis Female entrepreneur Male entrepreneur
Similarities They want to make profit for
getting desired position.
They also want to earn the
profit to sustain longer period
in the market.
Dissimilarities  Women entrepreneur
means a women or
group of women who
carry out all the
activities of the
business.
 Female perform the
multiple task at a time
like managing family
and work.
 Female entrepreneurs
focus generally remain
on the social
contribution.
 Male entrepreneur
means a man or the
group of male who
initiate and organise a
business enterprise.
 Male activities is
generally limited to the
office work.
 Male entrepreneur aim
is to reduce the cost and
to provide qualitative
product.
4

TASK 2
P3 With relevant data and statistics illustrate how micro and small business impact on the
economy.
Corporate world is classified into various parts such as; small, medium and large business
which are distinct from each other in various terms (Akehurst, Simarro and Mas‐Tur, 2012).
Thus, major difference between these four organizations are described as follows-
Micro : The organisation whose employees are less than 10 then they come under the
category of micro business and the fund invested here is also less than £2 million .
Small- If an organization is having not more than 50 members then they are falls under
this category. However, approximately 95.49% of businesses are matching this definition and
consider as micro company. In fact, these organizations are having short vision and mission
because of minimum funds. The medium business whose investment is less than £10 million
come under this category.
Medium- These organization are having not more than 250 employees with minimum
benefits. In medium business investment is less than £50 million.
Micro and small business are having major impact on success of organizational economy
because these associations are coming with creative ideas for others.
Small business create a big impact on the growth of the economy. The first and most important
thing they do is cresting job.
Employment : SME 'S create employment 16.1 million for the development of the
economy. In which 60 % of all private sector employment in UK (UK Small Business Statistics,
2017). Due to the presence of the small scale and medium scale organisation there is a increase
in the employment of the country.
Turnover : SME'S combined annual turnover was £1.9 trillion. In UK ,there is 51% of
all private sector turnover. Therefore, it can be analysed that small and medium enterprises have
major impacts on the UK economy due to having more turnover that contribute in GDP or
growth rate of the country.
5

P4 How small businesses and start up business contribute to the social economy after the
incidence of the Brexit.
There were major impact on UK economy during Britain exit from European Union. As
per the discussions of broad consensus sand economists, it has been analysed that Brexit reduced
UK's real per capita income level (Audretsch, 2012). Brexit is the term used for British
separation from the European union. After Brexit, the government of United Kingdom focused
on introducing new business venture and supported to small firms for launching various
businesses so that they can survive from critical conditions as well as economic fluctuation. UK
increased values on the basis of import and export as well as foreign trade servicing. Small
business is the business which is established with the small amount of fund and resources where
as start up are those which entrepreneur start with the new idea and concept. Start up can be
established on the small scale or large scale. These assist to maximize opportunities for small and
medium business organization as well. There are further elements of growth determined below
as-
Create employment : After Brexit, government of UK paid their maximum attention
toward the small and medium business growth. The small and medium enterprise provide the
employment to the people of the society who get their jobs loss after the incidence of Brexit.
There are many start-ups and SME'S which support society people to earn their living through
generating various kinds of opportunities.
Innovation : Due to the incidence of brexit, innovation get promoted in the society under
which employees are developing newly products and services. The government of UK focused
on increasing more businesses and invited small entrepreneurs so that they can come with
different ideas, innovation, thoughts and creativity. It helps them in starting their own business
venture with an effective manner so that it can provide major contribution on increasing the
level of economies (Duval‐Couetil, 2013). New innovative goods and services are to be
generated or launched.
Wealth distribution : After the incidence of the brexit UK government does not have
adequate fund to carry out its operational activities. In that scenario small and medium business
provide the fund to the economy so that there is increase in the nation wealth. By getting fund
from the small business country able to reduce the gap between lower and upper class.
6

TASK 3
P5 Examine the characteristic,traits and skills of two successful entrepreneur which differentiate
them from other managers.
Entrepreneur is the person who want to work or himself or himself. They are the ones
who organise,manage or estimate the risk of the organisation in order to earn large amount of
profit. Entrepreneurship is an business idea which generally a new innovation,product or service
different from existing enterprise (Durst and Runar Edvardsson, 2012).
Walt Disney and Anita roddick are the two successful entrepreneur whose characteristic
and qualities separate them from other enterprise persons.
Walt Disney full name is Walter Elias Disney. He founded Walt Disney company in 1923
and create a big impact on the entertainment industry. Walt made the first cartoon with the
synchronized sound, theme park and animated film. He was world wide known for his creation
which is mickey mouse. Walt have the characteristic which separate him from the crowd of the
businesses which are as follows :
Accept failures : Walt Disney got failed several times before achieving the desired
position but he learned from that and move forward. Walt failed in several things like first studio
laugh O grams and the lucky rabbit. He learned from his past mistake and make most beloved
character mickey mouse. Due to his failure, he lost his studio,his equipment and his creations.
Manager never accept failures they always try to make their sub-ordinates responsible for that.
Walt have several skills which help him to become a successful entrepreneur which are as
follows :
Self assessment : Walt always believe in his idea even when the world say that no one
come to watch an animated feature film (Tessema and Gerba, 2012) . The people and his brother
Roy say that his idea of the theme mark is not right but he always trust on his skills and
invention. Disney had an unshakable belief in himself which help him to provide the innovate
thing to the world. Manager never assess their work they always supervise other individuals of
the society.
Risk taking : Risk is the path through individual is able to achieve success. Walt never
hesitated from taking risk. Disneyland was the biggest risk-taker of the American industry. Due
to his habit of taking risk, Walt have to mortgage or sell his personal property. Manager never
7

take risk because they does not want to take responsibility of the mishap occurred because doing
innovations in the organisation.
Anita roddick is the successful entrepreneur who founded the body shop company in
1976. She started his enterprise not to become rich but to survive for their living. Anita opened a
business to support his daughter and herself. She created a line of cosmetic product from natural
ingredients and rather than rely on the retail counter. She sold the products directly to the
customer. There are various characteristics which Anita possessed and make her such a
successful entrepreneur which are as follows :
Vision : Anita's unique visions helped her to create a successful business. She has the
strong belief that success should not come on the cost of personal values. Roddick want to
protect the environment and the animals for which she make a cosmetic product with natural
ingredients (Bernhard and O'Driscoll, 2011). For making his dream fulfil she provide a good skin
care whose containers can be refilled. Manager does not have any vision because they make all
efforts to improve current position.
Anita roddick have several skills which help him to become a successful entrepreneur
which are as follows :
Passionate : Passion is very essential for the success of the activity. Anita roddick was
passionate about the environmental and social activities. she wanted to protect the society and
life of the animal. To fulfil this aim, she opened the body shop under which beauty products is
not made from the skin of animal. Managers is generally not passionate about their work because
they perform the activities in the organisation to earn their living.P6 Reflect aspect of the
entrepreneurial personality motivates others.
Risk taking : Anita never hesitate to take a risk. She invented the products made of
natural ingredients very first time. There may be big chance that she failed because prior to her
nobody bring such type of product. But the chance of failure does not stop her and She make a
completely different product. The body shop was one of the first businesses which prohibit
animal testing and promote free trade. Manager never initiated risk due to not becoming
responsible for the failure.
P6 Reflect aspect of the entrepreneurial personality motivates others.
Entrepreneur through its success and past history encourage other individual of the
society that if they can reach to respective position than anyone can attain it. Entrepreneur
8

motivate other persons of the society that they can achieve anything which they want even if
there is adverse situation (Wright and Stigliani, 2013). Entrepreneur characteristic provide the
path through which organisation able to achieve its desired objective.
Entrepreneur has use big five personality dimensions which help their employees and
staff members to perform their work effectively. It is considered as to be underlying major
attributes and traits for developing person overall personality attractive and unique in better
manner. Entrepreneur due to these five personality attributes able to evaluating or understanding
the customers and segment buyers into different personality. It is used by entrepreneur for
motivating their staff members for doing effective work to attain goals and the outside persons.
OCEAN personality attribute can assist in describing about actual personality of person but it is
not person whole personality. These traits are described as follows:
Source: OCEAN ,2017
 Openness to experience – In this stage, a person who likes to learn new things and also
they like to utilize new anticipation which is mainly score the high in openness. It
includes various attributes or traits that can be originator and insightful for spreading
9
Illustration 2: OCEAN

wide variety of interests (Meyer, 2011). Walt Disney and Anita roddick always ready to
learn new things,they make changes in their business idea according to customers needs
and want. They also make modification in their product and services time to time even
after launching the product to satisfy their customer. From this trait, individual learn that
they should make changes in their strategy and idea according to prevailing situation.
 Conscientiousness – In this, those people are involved who have high degree of
conscientiousness which are totally dependable and efficient in each manner. There are
various traits which includes to became arranged, exhaustive, dutifully,achievement
oriented and Methodist. Anita roddick and Walt Disney is so much focused about their
work that they achieve the target which they want to . Due to the presence of such feature
in them, employees able to achieve their personal and organization goal with schedule
time. From them, individual learn that if they want to achieve something in the life than
they have to work with full dedication and passion.
 Extroversion – They are those individual which have common traits such as energetic,
talkative and forceful in nature. Extroverts get their energy and drive from others at the
time when introvert are self motivated the other persons. Business individual should have
the qualities to indulge employees in their working. Both the entrepreneurs have possess
this feature in their quality due to which they are able to get the work done from their
sub-ordinates in a effective manner. From them individuals learn that they should know
how to communicate their ideas to others.
 Agreeableness – Such type of person are those who friendly, cooperative and caring in
character or nature. Their traits and character involves they are being kind, empathetic
and affectionate. They always motivate their staff or subordinates to perform better. Anita
roddick and Walt Disney both have this feature and they trust their employees in order to
achieve desired target or goal. They understand that business can achieve its aim only
with cooperation and mutual trust. By this individual and business person learn that they
should not doubt the working of their employees every time.
 Neuroticism – These are sometimes known as emotional stability. This dimension is
mainly related with one emotional stability and making negative degree of emotions.
People who score high neuroticism often experience along with emotional instability and
getting negative results. They are such person who have some traits like moody and
10

tense. Such skills help them in making their business enterprise but not benefical for the
other persons. (Mugler, 2017). Both the above successful entrepreneur does not contain
this feature in their personality. These are not able to motivate any individual of the
society because of their wrong personality.
TASK 4
P7 Illustrate how background and experience can hinder or foster entrepreneurship.
Background and experience can make positive or negative impact on the individual. It
depends on the individual that how it takes its past life whether to motivate or demotivate. For
example: if the person has bad past life than it teach that the person have to work hard whatever
be the situation to change its upcoming life. Similarly, positive background motivates to do
something different for making life more better or it can also spoil the person that why they
would do hard work they have everything.
There are various personalities traits and characteristic which entrepreneur contain in
their nature from birth. While others characteristics is develop by entrepreneur by facing
different situations of the life. Entrepreneurs who belong to self employed family generally have
freedom and responsibility (Storey, 2011).
Walt Disney is a cartoonist ,director,screen writer,animator and highly successful
entrepreneur who was born on 15 December 1901. Walt was the fourth son of Elias Disney and
Flora call Disney. His father was a strict person. He often used to punish his child. When Walt
born then his father work as a contractor. Then after that he opened a farm in marceline,Missouri
which later failed and they moved to another city of the Missouri and start delivering a
newspaper. He grows in the Hermosa community of Chicago. He spent his childhood in art and
drawing . Walt attended McKinsey school at Chicago. He dropped the school at the age of 17 to
serve the people in the world war I.. His past bad experience which is full of struggle
environment encouraged him to do something unique and different for himself and his family
which later on help him to become such a successful entrepreneur.
Anita roddick was born on 23 October 1942 in littlehampton, England and she was third
child among four children. Her mother Gilda roddick and father Henry roddick run a cafe and
have a habit of recycling (Brush, 2013). She grew by working in a cafe which her parents owned.
Working at cafe, she develop a strong work ethic and learn minute things of the business. This
11

stage developed the qualities of an entrepreneur in Anita. Roddick after leaving school went to
take training as a teacher at bath college of higher education. The body shop get huge success
because of the roddick own principle and experience. The past life and the travel throughout the
world taught her many things like what kind of products women used to clean and care its
bodies. This all things help roddick to make a product which is useful and acceptable by the
people of the society. Anita positive background motivate her to do whatever she like.
CONCLUSION
From the above discussion,, it is conclude that an entrepreneurship is not only work for
welfare businesses but also perform effective role for development of society. It involves various
types of entrepreneurial venture such as small, large and social and their relation with different
typologies of entrepreneurship which are serial,female and lifestyle entrepreneur . Small business
and start up support UK economy by contributing amount to the nation income. Due to small
business country able to create employment and bring innovation for their society people after
the incidence of Brexit. It present two entrepreneur, Anita roddick and Walt Disney
characteristic and traits which help them to come out differently from other persons of the
society. Along with this it also discuss how entrepreneur personality motivate many other
businesses persons through the help of ocean acronym. Through this report it is known how
individual get motivated from their positive or negative background.
12

REFERENCES
Books and Journals
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
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.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(2) . pp.149-162.
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management, 49(1). pp.55-70.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development, 23(9-10).pp.787-814.
Akehurst, G., Simarro, E. and Mas‐Tur, A., 2012. Women entrepreneurship in small service
firms: Motivations, barriers and performance. The Service Industries Journal, 32(15).
pp.2489-2505.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1). pp.75-93.
Audretsch, D., 2012. Entrepreneurship research. Management Decision.50(5). pp.755-764.
Duval‐Couetil, N., 2013. Assessing the impact of entrepreneurship education programs:
Challenges and approaches. Journal of Small Business Management. 51(3). pp.394-409.
Durst, S. and Runar Edvardsson, I., 2012. Knowledge management in SMEs: a literature
review. Journal of Knowledge Management.16(6). pp.879-903.
Tessema Gerba, D., 2012. Impact of entrepreneurship education on entrepreneurial intentions of
business and engineering students in Ethiopia. African Journal of Economic and
Management Studies.3(2).pp.258-277.
Bernhard, F. and O'Driscoll, M.P., 2011. Psychological ownership in small family-owned
businesses: Leadership style and nonfamily-employees’ work attitudes and behaviors.
Group & Organization Management, 36(3). pp.345-384.
Meyer, G.D., 2011. The reinvention of academic entrepreneurship. Journal of Small Business
Management,49(1), pp.1-8.
Marlow, S. and McAdam, M., 2013. Gender and entrepreneurship: Advancing debate
and challenging myths; exploring the mystery of the under-performing female
entrepreneur. International Journal of Entrepreneurial Behavior & Research, 19(1).
pp.114-124.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-175.
Storey, D.J., 2011. Optimism and chance: The elephants in the entrepreneurship room.
International Small Business Journal, 29(4). pp.303-321.
Brush, C., 2013. International entrepreneurship (RLE international business): the effect of firm
age on motives for internationalization. Routledge.
13

Carraher, S.M., 2012. The future of the Journal of Management History. Journal of Management
History. 18(1).
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal, 31(1). pp.3-22.
Online
The big five personality traits. 2018. [Online]. Available through: <https://bigthink.com/robby-
berman/the-5-personality-types-and-why-you-care>
UK Small Business Statistics. 2017. [Online]. Available through:
<https://www.fsb.org.uk/media-centre/small-business-statistics>
What is entrepreneurship.2015.[Online]. Available through:
<http://www.viemonsta.com/2016/11/what-is-entrepreneurship.html>
14