Entrepreneurship and Small Business

This document discusses the different types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It explores the similarities and differences between entrepreneurial ventures and examines how micro and small businesses impact the economy. It also explains the importance of small businesses and start-ups to the growth of the social economy. Additionally, it determines the characteristic traits and skills of successful entrepreneurs that differentiate them from other business managers.

Entrepreneurship
and
Small Business

Contents
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1. Examine different types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship......................................................................................................................................4
P2 Explore the similarities and differences between entrepreneurial ventures.........................................5
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..................................................................................................................................................8
TASK 3.....................................................................................................................................................10
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers........................................................................................................................10
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
...............................................................................................................................................................11
TASK 4........................................................................................................................................................11
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship....................................................................................................................................11
CONCLUSION.........................................................................................................................................12
REFRENCES............................................................................................................................................13

INTRODUCTION
Entrepreneurship refers to a way in order to set up a business unit through analyzing and
evaluating different risks which are related to startup a new venture such as financial as well as
managerial risk. Entrepreneurial ventures is started by an entrepreneur who have ability to take
risk in order to set up own business (Chi, Tansuhaj and Sun, 2016). Along with this it may have
various ownership structures and an entrepreneur must need to have some specific skills and
ability which help them in development and management of a business unit properly. Moreover,
experience as well as personal background of an individual may also have diverse impact on
entrepreneurship which may be promote a business unit. Skills and ability of an entrepreneur can
be god gifted by birth or it can be enhanced by attending classes or sessions. Topics covered in
this report are various types of entrepreneurial ventures and it impact on country economy. Apart
from this, it include skills and mindset which are required in order to set up a business unit as
well as it will also include factors such as experience and personal background that may impact
on a start-up of business unit.
TASK 1
P1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurial venture refers to a business unit which is established by an individual in
order to fulfill need and demand of their target audiences. Along with this, an entrepreneurship
venture can be established in order to serve society. There is various type of entrepreneurial
venture which are mentioned below:-
Small business entrepreneurship: It refers to that startup businesses unit which can be only run
by owners and in this number of employees are very low such as approx 5 staffs. Along with
this, in this type of venture revenue or profit generation is not too high as well as these ventures
are continuously focuses on attracting more and more customers due to which they design and
development its products or services accordingly (DAILY, KIEFF and WILMARTH , 2014).
Respective type of business unit can be established with members of family or with friends as

partnership. Moreover this type of business unit must conduct analysis and then develop as per
the demand of customers.
Scalable startup entrepreneurship: It refers to those business units which starts its business
through innovative and creative ideas that mainly focus on serving innovative products or
services to its customers or potential audiences from beginning. Basically entrepreneur who are
going to established this type of venture believe that their idea may change the world, due to
which start arranging capital from various investors in order to start their activities or operations.
This type of business units are mainly based on their innovative ideas which help them, in
attracting customers appropriately and effectively.
Large company entrepreneurship: It refers to those type of entrepreneurial business unit which
have limited life cycle as well as they are mainly focus on serving new products or services to its
customers in order to sustain for a long time at a particular marketplace (Davidsson, 2015).
While operating or conducting activities in respective industry an organization may face some
difficulties such as demand of customers, legalizations, policies and many more things are
changing on continuous basis due to which owner or entrepreneur of this business has to develop
strategies and polices accordingly in order to fulfill need as well as demand of customers in
effective way that leads to enhancement in profits and market shares.
Social entrepreneurship: This refers to type of entrepreneurial venture which mainly focus on
solving problems or issues of potential customers by offering them products or services
accordingly that fulfill demand and need. Along with this their main aim is to develop a better
world for people or customers. Social entrepreneurship venture can be in various forms such as
for profit motive, non-profit motive or hybrid.
P2 Explore the similarities and differences between entrepreneurial ventures
Similarity between Small business entrepreneurship and Scalable startup entrepreneurship
Innovation: It refers to factor which is adopted by a company in order to satisfy need and
demand of customers in effective manner by offering innovative as well as creative products and
services. Along with this by offing innovative products and services, company able to enhance
their profitability ratio as well as market shares (Decker, Haltiwanger and Miranda, 2014). In
respect of small and Scalable business enterprise they both adopt innovation factors which help

them in offering effective and appropriate products as well as services in order to fulfill need,
requirement and demand of customers.
Capital Required: It is consider as most essential factor which help a company in conducting
their work as well as process in effective manner through which they able to attain goal and
objective. Along with this through appropriate capita company also able to fulfill customer’s
requirement and need. In respect of both type of entrepreneurial venture they required capital in
order to start their business operations as well as functions which help them in satisfying need
and demand of customer properly.
Management: This refers to factor which help an organization in conducting its business in
effective way in order to fulfill customer’s need and demand. By this company able to conduct
its operations as well as functions properly (Dees, 2017). In respect of small business
entrepreneurship and Scalable startup entrepreneurship they both adopt proper management so
that they able to attain its goal and objective of attracting customers as well as enhancing
profitability ratio and market shares.
Difference between Social entrepreneurship and large company entrepreneurship
Basis Large Company
Entrepreneurship
Social
Entrepreneurship
Goals and objectives The main aim or goal these types
of ventures are to sustain in
market for a long time due to
which they develop innovative
as well as creative products and
services in continuous basis.
Whereas main aim and
objective of this enterprise is to
serve society in order to develop
it as a better place for leaving.
Risks In this type of enterprise risks is
medium because they may often
to manage sell huge amount of
products and services due to its
brand value (Demil, Lecocq and
Zott, 2015).
Here, in respective venture risks
are not too high because these
businesses units are getting
support from government as
well as public due to their
vision which help them in

attaining their goal and
objective.
Numbers of employees In respective entrepreneur
number of employees may be
approx 1000 or more then it.
In this number of employees are
depending on size of a
company.
TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Now a day trend of opening or establishing entrepreneur is growing and it can be at small
as well as micro level. Government of almost every country is also supporting entrepreneurs who
are having innovative as well as creative idea because it will help them in developing their
economy and standard of living (Drucker, 2014). There are also various reports or articles are
published which shows how micro and small business enterprise impact on economy in positive
manner. According to some reports establishing a small venture required less amount of
investment. Moreover, on the basis of articles not all small ventures are supported by state or
local government because they also generate less revenue and sometime they may face loss. Due
to which very less investors want to invest in small entrepreneurship ventures. According to the
view point of Daily, Kieff and WilmarthJr (2014), small businesses are considered as a major
portion of up to dated capitalism. Along with this it is also considered as driving force which
helps country in development and growth of economy. But there is a factor that is owner of a
small business didn’t want to become owner for same level business for a long time, they want to
establish a big venture after succession of small one. This will encourage them in order to push
their boundaries which will strongly impact on economy at world wide level. Addition to this, as
per the view of Cassar, Ittner and Cavalluzzo (2015), Size as well as profit margin of small
business ventures are lower as compare to large entrepreneurship ventures, but it does not mean
that impact of small business ventures are not effective for economy of a country. Along with
this enhancing in market of small business enterprise reduce the boundary among small as well
as large firms.

Economic Growth in 2018 in US
Small Business
Medium Size Business
Large Business
Fig: Economic Growth in United States
(Source: Economic Growth in United States, 2018)
From above given data it can be analysis that now a day market of small and micro
business enterprises get increased as compare to middle and large ventures. Establishing a new
venture is not so easy because owner of a company has to conduct various things such as market
analysis, identify potential customers and location, arranging budget, and develop products and
services and many more. Moreover, for establishing small and micro business less amount of
funding are required as well as entrepreneur who are establishing this type of ventures are highly
creative and innovative.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social economy refers to a rich diversity which is established through enterprises and
organisations such as cooperatives, associations, mutual, foundations, social enterprises,
institutions and many more. These economies can be in large, medium and small size which will
directly or indirectly impact of society (Fernhaber, Gilbert and McDougall, 2014). The major
goal as well as objective of these ventures are to serve society properly by offering products and
services according to need of customers. Along with this, small business and business start ups

impact on society in positive manner and it is possible through various aspects, some major of
them are describe below:-
Financial Independence: In every country small business enterprise makes peoples financially
independent. This is so because establishment of small business enterprise generate employment
as well as it will also help in developing standard of livening properly. Small business enterprise
generates employment for both male and female which develop equality and financial
independency of population. Financial indecencies of a person or a country help in enhancing
stability of life properly.
Innovation: Innovation is essential for both every one because by it they able to enhance their
opportunities that leads to growth. Small business ventures are established through a new and
unique idea which helps them in satisfying need and demand of customers properly (Glaeser,
Kerr and Kerr, 2015). Along with this in respect of it these ventures also adopt innovation as
well as generate innovative idea which helps in attaining goal and objective by providing
products and service properly and effectively.
Job Opportunities: Establishing of small business generate employment in country for
candidates of local, state, national as well as international level. This will also leads to
enhancement of standard of living because when there is more job opportunities are in market or
a country it will directly and indirectly leads to growth of economy which leads to standard of
living.
These are some major benefits or importance which a society can get through
development or enhancement of small and micro business enterprise. This will also help in
growing economy of a country in proper may which leads to increase in opportunities for society
or populations.

TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
There are various skills and traits of an entrepreneur which make them different from
other business managers. Some of these skills are form birth as well as some are enhance through
sessions and learning. These various characteristics, traits and skills are important for an
entrepreneur in order to established a successful business as well as increase its growth (Gupta,
Chiles and McMullen, 2016). In respect to establish a business unit, an entrepreneur needs to
consider various procedures which help them in accomplishing things or activities properly.
Some of personal characteristic of an enterprise are given below:-
● They must have ability and skills to generate new as well as innovative ideas in order to
attract customers.
● A strong entrepreneur must need to have ability to take risks so that they can face or fight with
every situation properly.
● Along with this they must also need to have vision and goals so that they conduct work
accordingly in order to achieve it.
● An entrepreneur must have motivation so that they conduct work for achieve goals properly.
● Moreover an entrepreneur should have good management skills so that they able to manage
and control resources, financial and human resources properly as well as effectively (Jaskiewicz,
Combs and Rau, 2015).
There are also some personal skills which are required for an entrepreneur are mentioned
below:-
● Entrepreneur must have effective communication skill so that they can interact with range of
people in proper manner such as suppliers, distributors, clients, employees and many more.
● Along with this they must need to have leadership skills so that they able to show path to their
employees for attaining goals.
● An entrepreneur must need to have time management skill which is essential or important for
complete tasks as well as activities on time in order to achieve goal successfully.

P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
The entrepreneurial personality of a person is important for establishing a business as
well as become motivated so that they can deal with various problems and risks that associated
with business in effective way which directly leads to attainment of goal and objective. Along
with this entrepreneurial personality of an individual include various characteristics by which a
person may create new as well as innovative ideas which can be implementing in order to
generate or enhance revenue (Naudé, 2014). These ideas or activities must meet need as well as
demand of potential or target customs. For which it is essential to conduct evaluation and
constantly develop new and innovative ideas for sustainability at a market place for a long time.
Moreover they also need to have ability to take risks as well as use or utilize resources in
effective ways by reducing wastage. For which they must need to set the goals, mission and
vision for its business which help in developing strategies, plans and policies to achieve goal and
objective properly. It is also necessary for an entrepreneur to identify opportunities so that they
can develop strategies which leads to increase in sales and generate revenue.
TASK 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
Personal background and experience of a person is highly impact on a business and its
activities as well as it will also promote business entrepreneurship or venture. Personal
background of an individual includes support from friends and family which help them by
providing support in various ways such as motivation, financial background and others.
According to this process, if a person gets appropriate support from its friends and family then
they get motivated and encourage conducting business activities correctly (DAILY, KIEFF and
WILMARTH , 2014). Support of family as well as friends can increase motivation and ability to
take risk which can promote entrepreneurship activities. Along with this, financial background of
an individual also impact on risk-taking ability of a person and help them in starting a business.
Moreover if a person not able to get support from family and friends then they may feel
demotivated which directly impact on its entrepreneurship activities in negative manner.
Personal experience also increases opportunity for establishing entrepreneurship in proper

manner. If experience of a person is good then he/ she can continue its business for a longer time
by generating proper profitability ratio. But whereas if an experience and support of a person in
not proper then it will directly impact on its entrepreneurial activities due to which they may face
loss or decline situation. Along with this, personal background and experience of an individual
help as well as allow them to establish a successful business in order to serve society with its
innovative products and services. Example:- Ms Rana Harvey who is a chemist and established a
business with the name of Monster Group. During this process, she plans her business, conduct
recruitment of employees and develop strategies as well as plans in order to do marketing and
dealing with risks for attaining its goal. She is self-motivated woman who used her office as a
chemistry lab in order to conduct work properly without getting bored from work (Chi, Tansuhaj
and Sun, 2016). Moreover she have some other skills or abilities such as she is self-motivated as
well as she also take participation in business programs in order to gain experiences so that she
can do her work in proper way. Along with this she also do future planning which focuses on
various activities such as financial management, works hard to run operations, motivate
employees and many more.
CONCLUSION
From above discussed points it can be conclude as well as evaluate that now a day it is in
trend to establishing entrepreneurship unit is order to become independent and successful. Along
with this governments are also supporting those individuals who want to established an
entrepreneurial unit because by it country able to enhance their standard of living as well as
economy. While establishing a successful entrepreneurial unit an entrepreneur faces various
issues or problems which directly impact on their working. So in order to avoid barriers an
entrepreneur must conduct evaluation as well as analysis of market which help them in
identifying their potential customer and their needs, demand and requirement. A person have
various options related to which type of entrepreneurial business they want to established in
order to attract customers. Along with this, they also required various skills, knowledge and
ability so that they can conduct or operate their business in appropriate manner.

REFRENCES
Books and journals
Chi, T., Tansuhaj, P. and Sun, Y., 2016. International Entrepreneurship Activities and Business
Performance: An Empirical Study of Chinese Textile and Apparel SMEs.
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Financing Innovation (pp. 13-16). Routledge.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing, 30(5), pp.674-695.
Decker, R., Haltiwanger, J., Jarmin, R. and Miranda, J., 2014. The role of entrepreneurship in US
job creation and economic dynamism. Journal of Economic Perspectives, 28(3), pp.3-
24.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Demil, B., Lecocq, X., Ricart, J.E. and Zott, C., 2015. Introduction to the SEJ special issue on
business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), pp.1-11.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fernhaber, S.A., Gilbert, B.A. and McDougall, P.P., 2014. International entrepreneurship and
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In Location of International Business Activities (pp. 94-136). Palgrave Macmillan,
London.
Glaeser, E.L., Kerr, S.P. and Kerr, W.R., 2015. Entrepreneurship and urban growth: An
empirical assessment with historical mines. Review of Economics and Statistics, 97(2),
pp.498-520.
Gupta, V.K., Chiles, T.H. and McMullen, J.S., 2016. A process perspective on evaluating and
conducting effectual entrepreneurship research. Academy of Management
Review, 41(3), pp.540-544.
Jaskiewicz, P., Combs, J.G. and Rau, S.B., 2015. Entrepreneurial legacy: Toward a theory of
how some family firms nurture transgenerational entrepreneurship. Journal of Business
Venturing. 30(1). pp.29-49.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.