Sample assignment on Entrepreneurship & Small Business Management (Solved)

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Types of ventures and their relation with typology...............................................................3
P2: Discuss similarities as well as difference between various entrepreneurial venture.............4
TASK 2............................................................................................................................................7
P3.Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy................................................................................................................7
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................9
TASK 3..........................................................................................................................................10
P5. Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers............................................................................................................11
P6. Assessing aspects of entrepreneurial personality that reflect entrepreneurial motivation and
mindset ......................................................................................................................................12
TASK 4..........................................................................................................................................13
P7: Examine, background and experience that can hinder or foster entrepreneurship..............13
CONCLUSIONS............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship are one who run as well as manage their own enterprise as they have
the ability to take risk and earn huge revenue from their idea. They are basically the innovators
which take positive initiative to enhance the competition in global market (Agwu and Emeti,
2014). For the better understanding report cover following topics such as various types of
entrepreneurial venture as well as typology. Along with that it carries similarity as well
difference between ventures. Further, impact of micro business on economy, significance of start
up in the growth of economy and trait of successful entrepreneur which maker them different
from business manager. Lastly, discussion is made on personality reflect of entrepreneurship
motivation mindset, background and experience that can hinder entrepreneurship.
TASK 1
P1: Types of ventures and their relation with typology
Entrepreneurship emphasize on conversion of their productive idea into reality which
make them, different from other business. In simple words, it include starting of new business
which involve working or role of various department to achieve overall objective of an
organisation. Whereas, an Entrepreneur is one that manages the operations of various business
by taking financial risk with the objective to achieve their pre determined plans (Ahlstrom and
Ding, 2014). Thus, an entrepreneur run its own venture which depends upon the innovative idea
rather than carrying forward the existing ones. They are basically responsible to encounter the
risk, perform their business with restricted resources and gain huge success.
Various types of Entrepreneurial Ventures: There are several types of entrepreneurial
ventures which are determined below:
Small business entrepreneurship: It refer to the people who run their business at small
level or scale such as consultant, grocery store and so on. They basically cover those people who
are in their reach or mile radius. The legal definition of "small" varies by nation and sector,
varying from less than 15 staff under the 2009 Australian Fair Work Act, 50 staff in the
European Union, and less than 500 staff qualifying for many U.S. staff. Small business
management programs. It is also possible to classify small companies according to other
techniques such as sales, assets or net income. They run business with the purpose to fulfil their
need due to which they do not have any motive to earn huge profit. For example, Seed

entrepreneur investment scheme offer various tax benefit to the investor who are keen to make
an investment in small or start up business (Seed Enterprise Investment Scheme, 2019).
Scalable start up entrepreneurship: They start a business with the dream to earn profit
due to which they invite various financial investors. Without extra sky-high incremental
expenses, a scalable company can boost its revenue that explore its typology in the
entrepreneurial world. Defining when your start up is prepared for it is the first and most
important step. It is evaluated that in 2011, about 3200 start-ups were surveyed in the Startup
Genome Report. The findings were as follows: due to early scaling, 74 percent of startups failed.
Moreover, premature start-ups are growing 20 times slower than correctly scaled start-ups
(Startups Genome. 2019). In context to Abundance investment, their main motive is to expand
the business for which they take risk with the hope to get back huge return. Thus, because of it
company makes the investment in various business as well as projects.
Large company entrepreneurship: Such entrepreneur significantly cater the changing
need as well as taste of customer according they come up with innovation. The growth of large
entrepreneurs based upon customer marker and product development of the organisation it is
essential in term of managing the customer experience and managing the changes with different
working conditions. As apple is one of the large entrepreneurship that was formed in term of
exploring the business at large scale (Apple market growth. 2019). For instance, Sainsbury which
is leading retail store proving new product in new market to acquire huge market.
Social Entrepreneurship: It include those entrepreneur who basically make efforts to
cover the social needs of people. it is evaluated that Through their initiatives, these people are
prepared to take on the risk and effort to generate beneficial changes in society. Broad use of
moral methods such as investment effect, consumerism consciousness, and corporate social
responsibility programs promote social entrepreneurs ' achievement. Their purpose of Teach first
is not market expansion or profit expansion but they work for social welfare. Thus, because of
which company provide education to the one who is deprived of it.
Typology of entrepreneurship: It refer to the differentiate of various entrepreneurial
venture based on the purpose, structure, size as well as formation. Further, it includes three types
of groups such as individual group, public sector as well as corporate entrepreneurship.
Hence, various types of entrepreneur that are related to the entrepreneurial typology such
as small or medium business are the part of typology. Moreover, one of the types of entrepreneur

is survival venture that helps to cater those families that are deprived of fulfilling the basic needs.
Thus, it cover financial expectation which depicts that an entrepreneurial typology is an
essential part of scalable entrepreneurship.
P2: Discuss similarities as well as difference between various entrepreneurial venture
Entrepreneur venture: It refer to the start up that establish by identifying the market
opportunity or to provide solution of any problem. There are different types of venture which
have its own purpose and reason of existence. Like, the purpose of large entrepreneur venture to
to expand its business both in national as well as international boundaries.
Lifestyle venture and small profit venture
Basis of difference Lifestyle Venture Smaller profit Venture
Similarity With the change in lifestyle,
trend as well as preferences
and taste of customer an
entrepreneur are more likely to
run their business in such a
manner they do not feel short
of fund while fulfilling their
existing needs or demand.
Like other ventures their
purpose is to gain additional
revenue by maximizing the
chances of profit.
Difference Within lifestyle venture an
entrepreneur give major
priority to the business in order
to get good lifestyle and fulfil
their livelihood. They are
satisfied by feeding their
family without any crises due
to which they do not think to
earn huge profit or do not
make much efforts for further
expansion or diversification of
their venture.
In this case the motive of an
entrepreneur is to earn profit
due to which they make
several efforts to grow
business not internationally but
within their geographical
location only. Moreover, it is a
time taking process as the
venture lack in economies of
scale as well as massive capital
to expand business. Thus, here
the entrepreneur move forward

by taking systematic steps to
retain existing customer as
well as attract new or potential
customer.
Example Fizzle company is one of the
lifstyle venture that is
enhancing the living structure.
Advent Venture Partners is one
of the growing venture in
capital investments (Advent
Venture Partners, 2018).
Small business entrepreneurship and Large company entrepreneurship
Basis of difference Small business
entrepreneurship
Large company
entrepreneurship
Similarity  The objective of small
business enterprise is to
earn suitable profits so
that they can lead their
life happily
(Staniewski, 2016) .
 The purpose of small
business is to identify
the need or problem
faced by people by
converting it in a
valuable product that
satisfy the requirement
 Large entrepreneur
objective is to earn
huge profit by
expanding its product
range to various
market. Therefore, such
entrepreneur does not
only remain restricted
to earn livelihood but
they help in expansion
of business to increase
the market share as
well as profitability of
business.
 Large enterprises
include training and
development
programme which is

of customer. For
instance Airdri which
is an electric products
manufacturing
organisation is
considered in the small
entrepreneurship.
designed for employee
so that they get good
return out of their
innovation. Type of
large supermarket
chains are working in
the UK such as Tesco,
Salisbury and Marks
and Spencer.
Difference Though small enterprise wants
to earn revenue but just for the
sake to fulfil their requirement.
They do not have any
intension of expansion
(Albort-Morant and Ribeiro-
Soriano, 2016).
High growth venture establish
with the motive of profit
maximisation due to which
they huge efforts through
promotional strategy. Such
strategy helps in the
recognition of product that
enhances the sales as well as
growth of company.
Scalable and social entrepreneurship
Basis Scalable entrepreneurship Social entrepreneurship
Similarities  The primary purpose of
scalable
entrepreneurship is to
expand the sales of
company. Further, to
accomplish such
purpose company make
the use of social media.
 Their primary purpose
is to earn profit is to
look after social
welfare by covering
social needs. Like,
scalable enterprise even
they uses social
networking sites.

Differences  Such entrepreneurs
operate with the self
motive they first
priority to develop their
business rather than
looking for social need
(Ateljevic and Page,
2017).
 Social entrepreneurs do
not have interest
associated with earning
profit. They just
operate to sole the
issues associated with
social needs .
TASK 2
P3.Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
In business scenarios, entrepreneurial business could be divided into equal portion that
are micro and macro level (Busenitz and et. al., 2014). As per these scenario these types of
business are required minimum amount as compared from large companies or business. This is
because these business are mainly focused to deliver the best services and develop small profit
and have less turnover ratio. Micro business are termed as small business that operate business at
small level and number of worker are also lower such as only five members and the total capital
required is approx $35000. In UK, an entrepreneurs are important for each and every kind of
business and they are crucial part of country that bring innovative ideas, methods, system and
approaches to run and manage business operation. That directly support in to bring boost within
economy. Some of the major impact of small business for better economy of a country are
discussed below:
Increasing job opportunities: It is observed that an entrepreneur could establish new
project or businesses in respect to new goods and services that are as per the demand of
customer. Thus , these new start-ups requires staff to run and operate business operation in a
meaningful manner. This support in raising the job opportunity and increase employability
within economy (Doern, 2016).

Increase Per capita income: It is refereed to the income of an individual that they earn
while doing a specific job within a particular nation. In context of UK, there are number of small
and new start ups that require large number of individuals. As more employed people within
economy help in more contribution to per capita income of country.
Optimum utilisation of resources: In business, there are variety of resources that are
needed to be required by the entrepreneur in producing different types of product and services. In
order to complete production process entrepreneur of small business requires raw inventory,
labour, fund, machinery etc. Thus it is very important for them to make proper use of these
resources that help them to increase productivity, profitability and overall performance of small
business.
In fast and growing environment the impact of medium sized and small business have
improve the overall economy of nation in cheerful manner. It could be presented with the help of
chart and graph that is to easy to understand (Donnellon, Ollila and Middleton, 2014):

The graph above help to find out that economy of UK is continuously increasing and
there are sudden increase in the number of medium and small businesses that directly increase
overall performance of nation. It has been analysed that positive and increased growth are better
for both aspects such as raise in standard of living and increase per capita income in most
effective and appropriate manner. Hence these new start up are beneficial for company that
further support in future growth of country as well as enterprises.
Businesses per 10,000 adults
Size (number of employees)
Resident
Adults All
Mid-year
2008 1 None 2 1-49
50-
249 250+ sizes
United Kingdom 49,884,300 724 238 5 1 969

North East 2,109,600 487 170 4 1 662
North West 5,574,400 636 223 5 1 865
Yorkshire and the
Humber 4,246,800 595 213 5 1 814
East Midlands 3,613,500 609 235 6 1 851
West Midlands 4,357,300 596 232 5 1 834
East of England 4,631,900 818 258 5 1 1,083
London 6,195,600 1,077 266 6 2 1,352
South East 6,780,600 825 265 6 1 1,097
South West 4,288,400 813 265 5 1 1,084
England 41,798,300 752 243 5 1 1,001
Wales 2,437,200 601 215 4 1 821
Scotland 4,254,900 557 199 5 1 762
Northern Ireland 1,393,900 625 257 6 1 889
(Source: Department for business innovation & skills, 2011)
At the beginning of 2018, there were 5.6 million tiny companies. The company
population of the private industry dropped by 0.5 percent(-27,000 workers) compared to the prior
year, while the jobs of both the private industry rose by 2 percent (+ 304,000).This difference is
due to the amount of smaller non-employing enterprises dropping by 1% (-50,000), but the
amount of bigger employing enterprises is increasing by 2% (+ 23,000). The decline in the
company workforce is the series ' first drop, which began in 2000. However, 2.2 million(+ 63
percent) companies still existed more than in 2000.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy
Social economy is a type of economy in which enterprises by rich diversities of
organisation and foundation are called as social economy. Start up is a firm that initiated through
entrepreneurs or individual founders to search repeatable as well as scalable business model
(Welter and Gartner, 2016). Under this, founders design the start ups through validate business
model. The small businesses are partnerships, sole proprietorship, owned corporations etc. which
have less staff as comparison to regular size corporation. The small business need support of

government in order to operate business in an economy. Their main role is to enhance growth of
an economy and also contribute efforts to maximise revenue for country. Start ups and small
business both are imparting in economic growth after Brexit. This situation arise to British after
exit from the European Union. These firms provided full support to nation and aids in economic
growth. The importance of contribution of Start ups and small business in social economy
mention below (Dugguh, 2017):
Employment- The small and start-up both businesses are start as well as operate their
business in the local or small areas. These both are helpful in provide the employment services to
people. These are helpful in develop the many job opportunities for those people which have
some knowledge, creative or innovative mind etc. Through this firms can attain their short term
objectives in an effective manner (Gundry, Ofstein and Kickul, 2014).
New product innovation- Start ups and small scale firms contributes in development of
social economy by providing the innovative products as well as services to people. It will help in
gain attention of large number of people and sustain business for long time period. Through
introducing the innovative products at market place, firms can enhance its profit and develop
social economy (Dunne And et. al., 2016).
Enhance living standard- As small and start up businesses are helpful in provide the job
opportunities to people at large scale in United Kingdom. Through this, local people can earn
money and their living standard will be enhanced. With the help of this, people are able to spend
their money to purchase the needed and luxurious products in an effective manner.
Increasing domestic business culture- At the time of Brexit, start up has played a
necessary role because the large size business organisations affected more. In this way, country
faced the problem of less economy and also negatively impact the living standard of people. In
context to this, they expanded business during the loss of economy and also contribute towards
economy. When the business at domestic level get increased then it helps in grow social
economy in an effective or significant manner (Stamboulis and Barlas, 2014).
These all the mention points stated that small and start ups both contributed towards the
social economic of country during Brexit. It is necessary for United Kingdom to increase Foreign
Direct Investment in order to overcome from any kind of uncertainties. On the other hand, start
ups can enhance their investment for introducing the innovative idea or develop innovative
products at market place. It will help in gain attention customers as well as foreign investors.

TASK 3
P5. Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers.
Entrepreneurship refers to the process of scheming, unveiling and running a new
business, usually small, that involves a high risk undertaken by such persons in order to generate
more profits. Usually, an entrepreneur is seen to be one who introduces to the world a fresh
perspective to look at the things either existent or acquainted by them. Thus, surpassing the
conventional way of managing, launching as well as running a business. An entrepreneur is one
who is full of fresh ideas that have the ability to change the strategic actions carried out by the
existing business managers (Fatoki, 2014).
Successful Entrepreneurs such as Jeff Bezos have certain characteristic traits in common
that set them apart from regular business managers. One of the most distinctive feature of these
two is that related to being a risk taker. Risk taking ability helps in bringing about creative as
well as innovative side and on the other hand, it enhances the eye of an entrepreneur to identify
opportunities as and when they come regardless of how big or small they are. This is the main
self-motivational approach of this entrepreneur so that best results can be achieved in more
effective way. Bezos both were able to identify the power of internet. This helped them in
harnessing the ability of highly developed operational and supply chain management systems
along with technology so as to exchange goods and services through an application wherein
Amazon only served as a medium rather than being a seller of commodities itself (Saleem,
2017).
In addition to this, an agile and adaptive nature has also done wonders for
entrepreneurs such as Jeff Bezos. The successful entrepreneur was able to adapt to the changing
environment which transitioned from a VCR Era towards a Digital Age rather quickly. Not only
this, flexible nature indicated by these leaders also evidences the adaptive nature which is rather
important if one wants to stay updated with the global changes occurring now and then. The
Another example that can be utilized here is that of Elon Musk. As mentioned above, an
entrepreneur is one who is innovative in their work style. Musk is one of the most befitting
example of this characteristic trait and skill. This entrepreneur changed the automotive industry
in a way that surpassed the expectations of users worldwide. By successfully launching in the

market automated vehicles that does not require a driver to be present to ignite the engine and
drive the car itself, Elon proved to the world that anything is possible.
Lastly, an entrepreneur needs to be a visionary who is always able to motivate
themselves as well as their team members to achieve the goals and objectives in the stipulated
time period. Elon Musk has been a highly driven leader who was able to use their
communication, leadership, negotiation as well as time management skills to mitigate risks for
successfully launching its Apollo project to Mars even though it failed many times previously.
Hence, entrepreneurial skills and traits are one of the major contributing factors that help
in moulding the personality of a business manager and distinguishing them as entrepreneurs from
others (Fatoki, 2014).
P6. Assessing aspects of entrepreneurial personality that reflect entrepreneurial motivation and
mindset
Entrepreneurial personality relates to those characteristic traits and skills that help an
individual to generate new ideas, identification of opportunities that are unprecedented and have
a potential to generate revenue. The aspects of this concept may reflect entrepreneurial
motivation and mindset through their ability to drive innovations and harness ongoing changes
that are occurring in a given business environment. As mentioned above, a successful
entrepreneur is one who is able to undertake risks, innovate, visionary, agile and adaptable.
Through the combination of these qualities and leadership skills, an entrepreneur is able to
execute difficult tasks and ideas with finesse (Gundry, Ofstein and Kickul, 2014).
By analysing these concepts closely one can infer that there is a close relationship
between characteristic traits that form their personality as well as motivation and mindset. Ones
personality is moulded by the situations faced and challenges overcome since childhood. These
obstacles help in preparing the mindset as well as ability to be positive in any situation. Being an
entrepreneur, these are some of the characteristic traits that are already embedded in them which,
as a result, make them motivational and strong from within. If these are not present, a person
would not be called an entrepreneur in the first place thus contradicting the statement being
assessed itself (Ratten, 2016).
As far as creative freedom and innovation is concerned, these aspects help in creating the
leadership and management skills of an entrepreneur. Being creative and innovative not only
makes an entrepreneur flexible but also empathetic towards their colleagues and subordinates.

Thus, leading to a much more open approach adopted by such entrepreneurs while motivating
and leading there team members. It is important to note that every entrepreneur will have a
different way of looking at things and eventually adopt a separate approach to address the same
issue or matter at hand. The way these persons motivate and think or take decisions formulate
their personality which in turn reflects their entrepreneurial motivation and mindset. In addition
to this, education and life experiences also draft how one looks at life in particular, thus, acting
as a catalyst to address obstacles that come in their path as a risk taker (Hattab, 2014) .
Therefore, one can assert that an entrepreneur needs to be continuously evolving so as to
generate new ideas, implement them and create revenue as well as inspire others. This evolution,
however, needs to be relevant to a certain set of customers who would be benefited through the
creation of a service or product as a result of innovation brought in by these persons. Therefore,
it is highly important to set goals, motivate others and achieve these objectives through continual
risk taking, improvement and innovation strategies both in decisions as well as in actions.
TASK 4
P7: Examine, background and experience that can hinder or foster entrepreneurship
Entrepreneurship process includes initiation, coordination as well as manage the
operations of new enterprise. Similarly, entrepreneur are often called innovators as they have the
capacity to start unique business based on unique concept. The ability of an entrepreneur gets
highly affected by their background, experience as well as role of family to set up successful
business (Ramadani and et. al., 2015)).
Education- Education refer to the knowledge of an entrepreneur that enhances their skill
set for future. Further, if an individual acquire such skill they they will come up with more
relevant or innovative idea. This may lead to generation of start up or new business venture.
Like, Jeff Bezos is a successful entrepreneur as well as CEO of Amazon due to their knowledge
and never giving up attitude made him one of the wealthiest person who run overall business.
Whereas, Elon Musk became a technology entrepreneur with the CEO of Tesla. His innovative
ideas helped him to conduct various innovations like they developed solar energy service.
Family background: Family background plays an essential role that affect the values,
thinking ability. Like, if an entrepreneur comes from that family which have moral values then
they will have understand then their thinking as well decision making ability will be effective.

For example, Jeff Bezos and Elon Musk both belongs to an educated family that helped them to
think out of box and leads to creative thinking.
Social networks: If an entrepreneur is good in making relations with other members then
it leads to good connectivity or relationship among them. Family background helps a lot in
developing such trait that helps in experiencing new things. For example both the entrepreneurs
such as Jeff Bezos and Elon Musk became creative thinkers due to their positive as well as
negative experiences of their lives. This made them capable to take the risk and gain success in
their respective areas.
CONCLUSIONS
From the above report it has been analysed that an entrepreneur plays a significant role
for the development of overall economy. This not only helps in providing employment
opportunity but also helps in raising the living standard of people. Moreover, their unique
concept is based on the innovative or creative thinking ability which maker them different from
other business. Therefore, the journey of entrepreneur depends upon various factor such as
family background, education as well as social connectivity which makes them successful
entrepreneur.

REFERENCES
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