Entrepreneurship and Small Business Management

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Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial venture along with their typology.............................................1
P2 Similarities and differences between different entrepreneurial ventures..........................2
TASK 2............................................................................................................................................3
P3 Interpret of data and statistics to understand micro and small-business...........................3
P4 Importance of small businesses and business start-ups to the growth of the social economy
................................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Characteristic, traits and skills of successful entrepreneur that distinguish them from
business's manager.................................................................................................................6
P6 Aspects of entrepreneurial personality to understand entrepreneurial motivation and
mindset...................................................................................................................................7
TASK 4 .........................................................................................................................................9
P7 Background and experience of an entrepreneur impact on entrepreneurship...................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
Entrepreneurship is defined as a process of launching, developing, running and
organising a business's venture by monitoring different risk factors. In simple terms it is launch
of new venture or business's in market to enter in global market for earning large amount of
profits. Small businesses perform their operations at local level with small investment for earning
good returns in organisation. In this report different types of entrepreneurial venture along with
their typology and their similarities and differences will be discussed. Along with this interpret
and assess of relevant data to understand their impact on economy of business's. Moreover
characteristic, skills, traits of successful entrepreneur are also be discourse in report (Baldock
and North, 2015). At last aspects of entrepreneurial personality and their mind set and motivation
to understand how background of an individual impacts on entrepreneur and business's.
TASK 1
P1 Types of entrepreneurial venture along with their typology
There are different types of entrepreneurial venture such as small businesses, large
business's and scalable businesses present in market. To better understand types of
entrepreneurial venture are mention below:
Small business's entrepreneurship
In present scenario majority of businesses are small in overall world. Small entrepreneurs
or businesses perform their operations in a minimum area. Hairdresser, consultant, travel agents
etc. are some example of small business's. The major motive of small entrepreneur of is to earn
more profits. Small business's engage 50 employees’ to complete their work and it earns a profit
up-to £ 10 million. Further small entrepreneurs follow lifestyle typology they work with motive
of earning more amount of money (Comunian, Taylor and Smith, 2014). So individual is able to
lead a comfortable and luxury life.
Micro business
Micro businesses are those in which less than 10 employees are involve to operate a
business's. They operate their business's at small level due to which micro organisation earn a
profit of £ 2 million. Micro business's includes catering, childcare, computer services etc. all of
this business's perform their operations in a few areas. Micro entrepreneurs follow survival

typology to complete their business's. This leads them to stay in market for longer period by
helping them to earn a constant level of profits.
Scalable start up entrepreneurship
This type of businesses are raised for a particular and specific market area. The main
motive of scalable enterprise is to change the method of completing a work in society. Example-
To accept payment in digital way instead of cash payment, to do online shopping rather than in
stores. The main vision of scalable enterprise is to change the vision to complete their work.
Scalable businesses are supported by investor so it is easy for them to recruit skilled employee's .
This helps them to complete their work with more efficiency and effectiveness. This type of
entrepreneurs follows male and female typology to influence, engage large number of individual
in organisation.
Social entrepreneurship
Social businesses introduce in market to satisfy needs and demands of customer through
bringing new and innovative products for satisfying need, wants and demand of customers.
Rather than earning profits they work for providing benefits to society (Grix, Brannagan and
Houlihan, 2015).
Public Entrepreneurship
Organisation which perform their work under operations of government are included
under public sector enterprise. Railways, income tax department and profits, legal services are
example of public business's that work to provide effective services for customer's.
Private Entrepreneurship
Organisation which are established and controlled by a single entity are included in
private sector enterprise. The major intention of private enterprise is to earn high amount of
profits. They follow legal rules, regulations and policy of government but whole decisions are
controlled by them only.
P2 Similarities and differences between different entrepreneurial ventures
Differences
Basis Small Business Scalable Start up Micro business's
Purpose The main motive of
small business's is to
Scalable organisation
work with purpose of
Micro business's work
to satisfy needs and

earn high amount of
profits through
providing good quality
services to customers.
bringing changes in
society through
introducing new
method in market.
demand of customer's
that helps them to earn
sufficient amount of
profits.
Number of employee's In a small-business
there are less than 50
employees engage in
completing their work.
Scalable business's
recruits small number
of employee's between
10 to 25 for
accomplishing their
objectives.
Micro business's are
those which operates
business's in few areas
of market. Therefore,
they engage up-to 10
employees to complete
their work.
Similarities
Basis Small Business Scalable Start up Micro business's
Customer's satisfaction Small entrepreneurs
and business's produce
goods that are able for
satisfying needs and
demands of
customer's.
While in scalable
business's they work
with motive of
removing problems
from society through
satisfying their needs.
In the micro
organisation they work
with providing their
goods for satisfying
demand of customer's.
Risk factors Small-business are
new in market
therefore they face risk
at moderate level to
complete their work.
Scalable business's
manufacture products
that are new and
innovative products in
market. So due to
society acceptance
moderate risk is faced
by them.
Micro business's face
launch and sale their
product in market to
earn sufficient profits.
Therefore macro
environment aspects
creates risk factors for
organisation.

TASK 2
P3 Interpret of data and statistics to understand micro and small-business impact on UK
economy
According to present market scenario SME are performing as a backbone for the
economic condition of UK. Small businesses are those which engages in small areas for
business's (Karatas‐Ozkan and et. al., 2014) Organisation in which maximum 250 employee's are
engaged to accomplish organisational objectives are consider as SME. UK is a developed
country it represents that its residents are well established and spend their income on luxury
items. Moreover, importance of SME is seen in rural areas as well as in cities by developing their
economy. As the more employment is generated in the country, the people in the country will be
more satisfied. The government of the UK should help the small businesses, support the new
startups in the country as providing financial help to them and took the necessary steps to
enhance the small business in their country. SME plays an essential role in a country as they help
to earn more amount of profits through providing and offering personalized and unique services
to its customer's.
Some factors that show importance of SME in UK are mention as follow:
Generating employment
For completing different operations, it is essential for organisation to provide
employment for local individuals. This helps them to complete their work within minimum time
period. According to the data of British union more than 60% individuals engage in private
sector are employed by SME. The employment is increasing continuously so the youth can do
the part-time jobs while studying and earn their pocket money, the women are also getting jobs
like they can do work from home in some cases and work independently, which raise the
standard of their living. The more employment present in the UK so the fewer people would
immigrate from their own country as there is lot of scopes and opportunities for the people is
present in the country. It also leads to a good mental health of the people. This determines that
small, micro and scalable business's providing employment at large level.
Innovation in products or service
SME deals and operate their business's at small level therefore it is important for them to
capture good area of market in order to stay for longer period in market. To attract more number
of customer's small-business brings innovation in their products to sale their products for large

number of customer's. The invention of the new product will increase the demand if liked by the
customers, so there is possibility of innovating on the present product for more demanding in the
market. The innovation is a continuous process as the technology is getting faster and the proper
use of the technology in SME would lead to maximum profits in their businesses. The main
benefits of SME are that helps UK to increase their GDP. This determines that they manufacture
new and innovative products at local level as it helps to buy resources at low prices within
minimum delivery time period (Lee and Drever, 2014).
Competitive advantage
This is mandatory for all countries to secure interest of local companies in industry. In
order to deal with this SME plays a significant role in strengthening the economy of UK because
local business's recruit and uses inside trading methods in order to manage and control their
business's. Due to this it is easy for them to complete their goal within minimum time period.
Moreover, this helps them to manufacture goods according to local residents of UK this helps
them to gain competitive edge in market. Because the SME has more knowledge about the local
market they understand the markets and needs of the customers. As they provide the product at
reasonable prices to the customers and with good quality of the product, it fascinates the
customer's mind. As they have competition with branded products also so the SME should
recognize all the factors about the market, should plan accordingly. To attract more number of
customer's small-business brings innovation in their products to sale their products for large
number of customer's. The invention of the new product will increase the demand if liked by the

customers, so there is possibility of innovating on the present product for more demanding in the
market.
Interpretation- The above data show that there are large number of employees working
with small, large and medium organisation. This table or graph represents large number of SME
are constantly open by UK residents as there is large scope exist in industry. (Qian and Haynes,
2014). On other side employment rate according to data and statistics of UK is increasing day by
day. As per their survey in organisation SME provides employment to more than 50%
individuals in private sector. While on other side turnover of small industry is positively
impacting on organisation. All of this factors are beneficial for UK due to which it is easy for
them to retain in industry for longer period. So as the data analysts , the growth rate of the SME
is increasing at high level, so the government should provide support to the SME and help them
with funds. Also spread awareness among the people to join the small business or if they have
innovative ideas for doing startups, they should contact the government authorized units and can
discuss their idea. In context of SME it is easy for them to manufacture and produce goods at
small level due to which it is easy for them to target a specific area of market and customer's
through providing effective services to them. As increment in the GDP rate of the UK which
makes the UK economy more large among all the countries in the world.
P4 Importance of small businesses and business start-ups to the growth of the social economy
Most of large businesses are able to dominate the market but similarly small-business and
start-ups are essential part for organisation which helps a country to keep moving their economy.
Small businesses create job opportunities as well as provide economic growth in rural as well as
urban areas of market. In this task for better understanding about small-business some essential
factors are mention as below:
Diversity
Small businesses are more flexible as they are small in size so it is easy for them to adopt
new and essential changes that are required by organisation. In context of UK their residents
belong to different culture, background and value. As people share something innovative in the
business, that takes consideration in it because the people who works together and feel that they
are equal, so all the ideas are considered among them, they share their part experiences at the
workplace so it may help them to expand the business and more productivity with low cost. As
they are small, so it is easy for organisation to complete their work within minimum time period

(Wright and et. al., 2015). Moreover, the greater diversity is adopted by business's helps them to
stand against tough conditions in market.
Turnover
Most of small-business and start-ups eventually faces less opportunities in market due to
their less turnover. This is beneficial for SME to undertake a chance of learn, recover and
reconstruct a business's in market. As it assists to stay in market for longer time period. It
determines small business's helps a country to keep a country economy strong. In context of
SME this is mandatory for them to capture high market area through their constant efforts and
directions. It would lead the SME to grow in the markets as they have gained many experiences
from their previous tries, they give next chance to develop the business improvising in the
strategies which is followed for increasing their turnover.
To enter in niche market
Large firms face high overheads as their cost is high to generate large number of input in
organisation. In context of SME it is easy for them to manufacture and produce goods at small
level due to which it is easy for them to target a specific area of market and customer's through
providing effective services to them. The SME also gets reviews and feedback time to time, from
the customers so that they can improve in the products, costing of the products. They find some
new market near by them to market their products and make their reach at distances.
Example- A jewellery maker develops positive relations with clients to complete their work
effectively.
TASK 3
P5 Characteristic, traits and skills of successful entrepreneur that distinguish them from
business's manager
A successful entrepreneur is different from employees and managers that are performing
their work in the organisation. Therefore, some of their characteristic, skills and trait are separate
from others that leads them to complete their work from others (Wright and Westhead, 2016).
Some insights of Sarah Brown and Richard Branson as an example are mention as follow:
Management skills and knowledge

Successful entrepreneurs make a big picture in their mind about their work and day to
day activities which is performed by them to achieve their business's objectives. An organisation
performs multiple task so it essential for entrepreneur to manage it effectively. For a manager
they aware about only to complete a task in a specific time period while entrepreneur perform
whole scenario in which different activities are written that undertakes when, who and where a
task take place. Like Sarah Brown constantly efforts to launch and run NGO in society for
providing several benefits to individuals and needy people.
Flexibility
Most of entrepreneur are flexible to complete their work as they learn, adopt and new
methods to complete their work effectively. But it is difficult for manager to learn new things as
they complete their work through following traditional methods. But for an entrepreneur it is
easy to complete their task through implementing new methods this leads them to achieve their
goals within minimum time period. Example- Richard Branson adopts flexibility to complete
their work in minimum time period by learning new techniques and methods.
Traits of an entrepreneur
Passion
This is most significant of characteristic for an individual for becoming an entrepreneur.
In these they are able to complete their work in minimum time period most of times successful
entrepreneurs work for whole day in order to earn good amount of profits (van der Schans,
2015). But manager follows only working hours for completing their work due to which they are
different from managers.
Strong work ethic
Entrepreneur who wants to achieve high success in market make sure that they are always
first to reach at office. As this helps them to perform their work with follow of ethics and rules.
These people ensure that organisational operations are performed with proper follow up of
ethics. Managers are those who only focus on to complete a work rather than follow of practices,
laws and regulations. Sarah Brown strongly focused towards all members and employee's follow
strong work ethics for completion of their work effectively.
Skill of an entrepreneur
Creativity

Way to complete a work which is performed and adopted by entrepreneur is always
creative due to which it is always different from others. They also focused on those factors that
helps them to complete their work with efficiency and effectiveness and in a unique way (Storey,
2017). Managers does not take risk to complete their work in different way that is separate from
others. Richard Branson got success after publishing the book or magazine that represent creative
skills is also works as a crucial factor for organisation.
Communication skill
Entrepreneurs are those people who take whole decisions for organisation. Therefore, to
implement them effectively in all departments this is necessary for them to communicate it
effectively with stakeholders of organisation. So entrepreneur utilize their communication skill to
complete their work. On other side managers are not able to influence employee's for engage
them in their work due to poor communication skills. Sarah Brown is managing a NGO therefore
to gather funds it is essential for them to influence people by utilising communication skill in
order to raise funds from individuals.
P6 Aspects of entrepreneurial personality to understand entrepreneurial motivation and mindset
Entrepreneur personality is the key that leads an organisation to become successful in
industry. Therefore to understand it effectively big five personality model is implemented for
understand of entrepreneurial mindset and motivation. Some essential aspect of them are
mention as follow:
Openness
Openness trait reflects the creativity, curiosity, learning ability of a person. Individual
who are high in this trait are able to complete a work in an appropriate manner (Spence, 2016).
Along with this openness factor helps them to generate healthy premises in organisation that
leads an entrepreneur such as Richard Branson and Sarah Jane Brown to make effective
decisions for completing a work.
Conscientiousness
This factors focuses on aspects such as self-disciplined, reliable and complete a work
with more efficiency and effectiveness. Individuals who are high in this trait complete their work
in an organises manner. On other side individuals with low this trait is not able to complete their
work in developing structures and schedules for organisation.
Extroversion

The person high in this trait are able to complete their work with a group of different
people that are engage in organisation. This factor consists of sociability, talkativeness and
assertiveness to involve large number of people for completing their work (Shaw, 2014). On
other side individual with low impact of this trait face complexity to complete project in team.
Entrepreneur like Richard Branson and Sarah Brown influences more persons to complete their
work.
Agreeableness
This dimensions of personality includes factors such as trust, altruism, affection, kindness
etc. People who are high in this trait perform a work within teams and group they are high to
become cooperative and competitive for completing a work. Agreeableness factor assist an
individual to generate interest among other people for completing their work. In context of
entrepreneur this factor is more beneficial for them to recognise as a well-known entrepreneur in
market.
Neuroticism
Neuroticism is a trait which undertakes sadness, emotional stability, moodiness factors of
an individual. Person who are high in this trait are not able to complete a work with more
efficiency as it relates with anxiety, fear and sadness due to which it is complex for them to take
effectual decisions. Therefore, Sarah Brown and Richard Branson reduces this factor to take
effective decisions.
TASK 4
P7 Background and experience of an entrepreneur impact on entrepreneurship
Every entrepreneur faces complexities and struggle to become a successful entrepreneur.
Their different methods are adopted by them to remove barriers from achieving their goals.
Further result is totally depending on attitude and personality of individual. Similarly Sarah Jane
Brown and Richard Branson face some obstacles to complete their work but it plays a key role
for them to become a successful entrepreneur (Sahut and Peris-Ortiz, 2014).
Sarah Jane Brown
Sarah Jane Brown is the founder of Piggy banks, children's charity organisation which is
a public relation organisation. Sarah was born on 31st October in the year 1963 in Beaconsfield.
Sarah completed her education from Acland Burghley school and to completes graduation she

enrolled for University of Bristol for obtaining degree of Psychology. At early life parents of
Sarah are separated from each other due to she face difficulty but to ambition she establish
herself as a successful entrepreneur.
In context of entrepreneurship Sarah her career working with a consultancy organisation
named as Wolff Olins. Their is understand importance of public relations and experienced to
solve different problems of clients. Due to this factor at age of thirty she established charitable
trust for providing benefits to society. It results constant effort leads Sarah to achieve her
ambition.
Richard Branson
Richard Branson is a well-known entrepreneur that is recognised for his Virgin group. He
was born on July 18 in the year 1950. His education was completed from Scaitcliffe school and
later attend Cliff View House school. Richard is suffered from dyslexia in his early stage of life
due to which it is difficult for him to complete education successfully (Rostami and et. al., 2015).
This problem not work as an obstacle for him as to overcome from this Richard utilize
confident and compassionate to complete his vision. The government of the UK should help the
small businesses, support the new start-ups in the country as providing financial help to them and
took the necessary steps to enhance the small business in their country.The major reason behind
success of Virgin group is passion and constant efforts of Richard that leads organisation to
which a huge success. Moreover critical thinking helps them to overcome from financial crisis
and helps them to gain competitive advantage in industry.
CONCLUSION
In the end by sum of all the points it is concluded that entrepreneurship and small
business's are two crucial factor for organisation. This leads an country to boost their economy
through generating employment and increase in their import and export activities. Moreover, a
graph is also included in this report that show the impact of SME in the economy of a country.
Entrepreneurs are those person who reflects a different mindset to achieve huge success in the
society. For better understanding of an entrepreneur big five personality model is also included
in this report. Further two successful entrepreneurs of UK are also included for better
understanding of entrepreneurial aspects to become an successful entrepreneur.

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