Entrepreneurship & Small Business Management (pdf)

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and their relationship with typologies.............................1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
TASK 2............................................................................................................................................5
P3 Assessing and interpreting the impact of micro and small businesses in economy...............5
TASK 3............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs.................................................8
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial
motivation and mind-set .............................................................................................................9
TASK 4..........................................................................................................................................10
P7 Factors that foster or hinder entrepreneurship.....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refers as an important process through which a person run their
business by taking risk and converting into larger profitability. It is a dynamic process to create
the chances of attaining wealth which may leads in improving the economic growth. In addition
of this, entrepreneurs also define new and innovative ideas to set their business and at the same
time also deliver quality products and services (Blackburn, Hart and Wainwright, 2013). For
attaining higher growth level in market, entrepreneur should make innovative products to invite
larger number of customers towards its products. In addition of this, small business management
is also play important role in managing as well as developing process in an effective manner for
attaining positive outcomes. The main aim of this is to generate profitability level at market
place. Current report is discussed about venture types with typologies. Along with this, impact of
small business also defined in this report to improve the economic growth. Furthermore, key
aspects of entrepreneurial aspects also mentioned in this project which foster on hinder the
entrepreneurship.
TASK 1
P1 Types of entrepreneurial ventures and their relationship with typologies
Entrepreneurial ventures:
It is refer to smaller venture which is operate with the aim of attaining day to day profit.
Along with this, it is that type of business which make as well as run by individual with new and
innovative way to attain number of opportunities. This will directly contribute in developing
economic growth. Along with this, entrepreneurial venture are contribute in developing
economic condition and creating wealth by taking huge risk. This will aid in producing creative
goods and services.
Entrepreneur:
An individual who run their business with limited resources and huge risk as well. Along
with this they are only one person who make new and creative goods, take risk with the purpose
of generating larger profitability (Bridge and O'Neill, 2012).
Types of entrepreneurs: There are some entrepreneurs who operate their business with their
specific goals and objectives. All these can be understood by following points:
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 Serial entrepreneurs: These type of people are start their business with new and
innovative ideas and also implement on continuous basis. They having enough funds to
operate their business in appropriate way (Carsrud and Brännback, 2011).
 Social entrepreneurs: These type of people who operate their business for resolving
society problems not generate profits. Along with this, they are capable for handling
issues of society in order to provide them solution. This will lead in improving
development of economic growth.
 Female entrepreneurs: These type of entrepreneurs are mostly women who start entire
business activities with effective way. These type of companies ate owed by female
entrepreneurs as they are highly responsible for determining 51% employment.
Concept of entrepreneurship:
It is consider as an important process of designing, preparing for launching new and
innovative business with the purpose of attaining profitability level. In this they take huge risk to
convert into profit. Along with this, it is an effective and creative process which take lots of time
and energy to run business for grabbing customers attention towards attractive products.
Key ventures of entrepreneurs:
 Small business entrepreneurship: In current scenario, various small business are operate
in UK market. Mainly, approx 6 million operate their business at small level with the aim
of improving the economic growth (Micro and small-business ventures, 2017). This type
of business includes various firm such as travel agents, carpenters, electricians, cafe
owner and many more. IN addition of this, all these type of business operate in their risk
which the aim of attaining larger profitability at market place.
 Scalable entrepreneurship: These type of venture are define new and ideas with the
purpose of change the world. In addition of this, they also manager as well as arrange
funds for market to improving the overall performance level.
 Social entrepreneurship: These type of business are operate with the purpose of providing
benefits to society by providing them quality products (Chittithaworn and et. al., 2011).
They also set their process for improving their living standard which contribute
developing economic growth of the nation. One of the main aim of this type of business
organization is to provide solution to the society in order to improve their living standard.
Relation of venture with entrepreneur typology-
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Under this all types of entrepreneurial ventures are largely connect with typologies as
scalable entrepreneurship is relate with lifestyle ventures. Thus, there are some typologies which
is relate with types of venture which operate in market place.
Types of Typology: It includes various type of typologies are as follows:
 Lifestyle Ventures: These type of business are start with the purpose of attaining
immediate profits at market place (Chrisman and et. al., 2012).
 Survival ventures: Under this, business are start for earning profits for the family. Along
with this they operate their business for generating profits for improving their living
standard. Grocery stores, internet cafe, barber stores and many are comes under this
business.
 Managed Growth Ventures: These types of business run their business with smart man
who effectively understand that how to make money. In addition of this, the people invest
in those business for attaining profitability level. The main aim of this business is to
manage their growth level at market place.
P2 Similarities and Difference between entrepreneurial ventures
Various types of entrepreneurial ventures are run their business in society for developing
the economic growth of the nation. All these are totally different from each other and also having
some similarities. This can be understood by following similarities and differences between
entrepreneurial venture are as follows:
Similarities Lifestyle Ventures Social entrepreneurs
 These type of ventures
does not operate their
business for earning
profits.
 Lifestyle ventures are
start as small business for
improving the economic
growth (Dennis, W.,
2011).
 These type of business are
start with the aim of
improving society growth
by providing them quality
services.
 These type of business
also start as a small
business and also perform
their duties for society.
Differences Lifestyle Ventures Serial entrepreneurs
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 These type of business
operate business with
limited funds.
 These business does not
use any kind of strategies
to operate their business.
As they start business
with own passion.
 Them aim of this is not
generate profits as they
operate their business
according to their life
style.
 These type of ventures are
which generate funds for
investors to run their
business.
 They adopt strategies for
implement business
activities.
 These type of business
having specific location to
serve their services.
 The main purpose of this
business organization is to
earn profits to enhance
their performance.
Similarities Female entrepreneurs Male entrepreneurs
 Female entrepreneurs are
easily manage their
personal and professional
life as they focus in their
work effectively.
 Women are more creative
and also define new and
innovative ways to
perform their work
(Drucker, 2014).
 Male entrepreneurs are
highly focus on perform
their business.
 Men perform their work
with new and innovative
ways to create the chances
of attaining better results.
Differences Female entrepreneurs Male entrepreneurs
 Women entrepreneurs are
take more time of take
any kind of decisions
 Male entrepreneurs are
task oriented as they
perform their work with
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within their business.
 They focus on producing
creative and quality
products to society.
 They are less confident at
the time of taking
financial activities and
risk.
 They always provide
better direction as well as
relationship with their
workers and customers as
well.
more confidence.
 Male entrepreneurs are
easily take decision and
improve their productivity
as well.
 They always tries to
reduce cost of the
production which may
helps in improving
economy of the nation.
 They easily take financial
risk and also convert into
more profits.
TASK 2
P3 Assessing and interpreting the impact of micro and small businesses in economy
Various types of business are operate their activities in society as they directly contribute
in developing economic growth. All these can be understood by following types:
Micro business: This type of businesses are operate by single person as no of workers are
0-10. Along with this, various types of micro business which operate by the women and
youngsters. In this owner of the business perform all the activities according to their skills which
may provide support to enhance the chances of attaining higher profit (Fassin, Van Rossem and
Buelens, 2011).
Small business: These type of business are refer to those people who operate their
business with the aim of generating profits. Under this the workers number of 0 to 500. Under
this, number of small business run in UK market. Along with this, this type of business offer
number of job opportunities to local people to enhance their living standard.
Medium size business: These type of companies are divided in small and large business.
Under this no of workers is 250 to 500. As they operate their business for reducing the
employment within the economy.
Nature of Small business:
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 Manufacturing firms: These type of business are having 250 workers as they produce as
well as manufacture raw materials to convert into finished goods.
 Services: In this, annual income is approx 2 million in which business serve its quality
services to customers as per their needs and wants.
 Wholesaling: Under this, they provide goods and services to consumers which may leads
in satisfying customers needs (George and Bock, 2011).
 Consulting: These type of business are provide sources of management in order to to
managing all the finance sources in effective manner.
Characteristics of Small businesses:
 Small business operate as well as manage by single person in which all the risk and losses
are manage by owner because there is no delegation of authority.
 Along with this, family are runs this type of business with hired workers.
 This type of business make short term planning to attain better results.
Impact of economy of SME'S: Under this there are some impact of small business on economic
condition. Which can be understood by following points: Local impact: SME'S having huge impact on local companies as it provide employment
to people for improving their living standard. It positively impact on local business which
deliver quality products and services to larger number of customers. Regional impact: In this, SME'S largely impact on region by delivering innovative and
creative products and services as per customers needs and wants. As it helps in
understanding customers needs and wants in most effective manner.
 National impact: Under this, SME'S directly impact on nation as it helps in developing
the economic growth of the nation. As it create various opportunities to local people by
providing them job. With the help of this, they easily generate money for improving
growth level.
P4 Contribution of small businesses and start-ups in growth of social economy
BREXIT – This was a British term and it was arrived from the Greek word “British
Exit”. This was the most popular term used in order to make discussion about the withdraw of
UK from the European Union nations. This process started in March 2017 and the people were
voting for the Exist of Britishers but on the other way the Chairman was not in favour finally
when the results were announced at that time Prime Minister resigned from his seat (Gorgievski,
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Ascalon and Stephan, 2011). This was the emerging factor as the new PM was now trying to
break the chain of EU negotiation.
Difference between Start-ups and small-business - The major difference between small
business and start-ups are evaluated below as:
Small-business Start – ups
 These business are started with the help
of new ideas and there main aim is to
earn livelihood for people.
 They are focused on providing
traditional products to all their
customers.
 These small business are generally less
scaleable as compared to start up
business.
 The nature of business is privately
owned and they are having less then 300
employees who are working under them.
 They are newly started business and they
have chances for achieving growth in
their operations.
 There are focusing on innovative ideas in
order to earn higher market shares.
 They are having scalable type of
business model
 The business ideas are innovative thus
they are offering customized products to
their customers.
Impact of small-business on social economy of UK are described below as:
Economic and Social Development: The small business operations are valuable for the
social development of the nation (Goss, 2015). The small business operations have provided
employment to more then 5 million people in UK and this is the most valuable factor which
results in overall economic development. Improvement on social security: This is the most important factor as it results in
promotion of economic development in UK by stabilising the income factor. This result
in providing income to the family members if any person has loss their life, retirement
and disability. This is having implications in economy and this results in establishing
Balance of Payment in Economy. Effect on revenue and taxes: As they are more employment opportunity in UK economy
so people are earning money and this results in economic development of nation. If there
is employment then people had to pay compulsory taxes so more amount of cash will be
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collected which helps in growth and development of firms. There is an effective relation
between taxes and revenue because if the income factor will be maximised then it will
result in maximising the income factor (Jones and Rowley, 2011).
 Effect on poverty and other factors: This is the most effective factor for the growth and
development of the economy because poverty results in slow growth in the economy. The
small business operations are valuable in order to provide income to people so they can
easily fulfil their needs and wants in the economy.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
The development of new and innovative ideas are easy but it is very difficult task in order
to become an entrepreneur. If person wants to start up their own business operations then they
should posses some skill and capabilities in order to achieve growth and success in their business
operation's. The skill and capabilities of enterprise and mangers are evaluated below as:
Skills /Characteristics Entrepreneur Manager
Strategic Vision If a person wants to achieve
growth and success in their
operations then development of
business idea is not sufficient.
They have to plan and develop
strategies in order to effectively
carry out all their business
activities (Karlan and Valdivia,
2011).
The mangers should set vision
which are beneficial for all the
employees in order to carry out
their assigned business
operations effectively.
Communication The communication skills plays
an important role in order to
successfully carry out all the
business activities by their
employees.
This is the most important skill
that is present in Managers and
this is the most beneficial factor
in order to gain trust and
confidence of employees.
Delegation The persons who wants to gain The Manager should divide all
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success in their ventures should
focus on team working in order
to carry out the whole business
operations effectively.
their working equally among
the employees in order to
complete all their operations in
desired time frames.
Critical thinking The entrepreneurs are deeply
focusing on the assigned task
that are allotted to them. All the
actions are taken according to
their desired needs and wants.
The managers are taking deep
inside in order to know about
all the plans and policies
effectually.
The Skills and traits of an enterprise are evaluated below as:
The enterprise should focus on their assigned business goals and objectives in order
achieve their target in desired time frames that have been allotted to them. For this entrepreneurs
needs to provide better support to workers as they effectively implement all the activities in
appropriate manner. This will aid in improving desirable results in appropriate way.
The entrepreneurs should not be afraid to take risk because this is the major factor which
help them to fight with all the difficulties and they will achieve growth and success in their
ventures. As they easily increase the chances of attaining higher profitability level. Which
directly contribute in improving the performance level of an enterprise (Zott, Amit and Massa,
2011).
The entrepreneurs should have confidence among themselves so they can easily face all
the difficult situations which come across their life. This will leads in determining the ways to
resolve issues and conflicts situation which may leads in enhancing the performance level.
They should able keep their foot forward and ready to accept challenges in order to
achieve growth and success in their business activities.
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation
and mind-set
Entrepreneurial personality is play important role in developing business and economy as
well. Thus, it is necessary for owner to having good personality so that they easily set their mind
set and motivation as well. Along with this, personality, traits, skills and having good personality
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individuals easily attain better success within their business. With the help of this traits,
entrepreneur easily make their strong personality as they easily carried out their activities in an
appropriate manner. In addition of this, it is also said that entrepreneurial personality largely
affect the motivation and mind set of people. In this context, the Big Five model helps in
examining traits of people:
Openness to experience: It shows creativity, innovation and creative thinking as well. In
this entrepreneur should be open minded which helps in improving the performance level of
business.
Conscientiousness: This factor relate that the entrepreneurs should be appropriate and
effective so that they easily achieve their set goals and objectives by performing their task with
high efficiency. With the help of this they easily generate larger profitability.
Extraversion: It is also an vital factors in which entrepreneur is energetic as they easily
perform their work which may leads in becoming a leader.
Agreeableness: It is important for entrepreneur should be make good in nature as they
effectively work with their workers. This will helps in increasing the trust of the staff members
in them.
Emotional stability: For effectively complete the entire work, entrepreneurs should be
calm and focus at the time of implementing their activities. This will helps in improving their
abilities and knowledge as well.
TASK 4
P7 Factors that foster or hinder entrepreneurship
Number of factors are directly affect the entrepreneurship as it is important for
entrepreneurs have to effectively control in their practice in order to increase the chances of
improving their strength level. In this context, past background, living standard, family
background and many more are largely affect the entrepreneurs activities. If an entrepreneurs
belong form good family background as they easily take right decision and make their business
activities effectively. With the help of this they easily run their business and attain better success
at market place.
In addition of this, education level also affect the behaviour and attitude as they easily
handle as well as manage any kind situation in appropriate manner. With the help of this they
easily perform their business activities in appropriate way (Aspects of Entrepreneurial
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personality, 2017). Along with this, a qualified person easily manage their work and practices
which may aid in attaining set goals and objectives in appropriate time frame. By having better
education, entrepreneurs easily take decision and also implement innovative ways to operate
their business activities with the purpose of attaining desirable goals and objectives. This will
make them capable to enhance their skills and knowledge.
Thus, positive and negative attributes are also hinder on entrepreneurs which is create due
to former knowledge and experiences. Entrepreneurship play vital role in improving the
performance level of the company and its activities as well. By this entrepreneurs can increase
the chances of attaining desirable goals and objectives in appropriate period of time. For
example, Travis Kalanick motivate their workers at workplace as all these are easily perform
their duties for attaining set goals and objectives in an effective way. It directly contribute in
becoming as successful entrepreneur at market place.
CONCLUSION
From the above mentioned report, it can be concluded that entrepreneurship is one of the
important activity for executing as well as developing a new business. Under this, individual runs
business with the purpose of attaining higher growth is known by entrepreneur. Mainly, they
start their business at small level in order to attain higher profitability level. Along with this,
various type of entrepreneurial ventures are also there in society in which entire decision is based
on entrepreneur that what king of business they want to do in market. Furthermore, various type
of entrepreneurial ventures with typologies is also discussed in this which may leads in
enhancing the economic condition in most effective manner. It also define the main different
between small business and start-ups which play vital role in growth the economic growth of the
nation. Skills and traits are also required for person to become a successful entrepreneur.
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REFERENCES
Books and Journals
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Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
Dennis Jr, W. J., 2011. Entrepreneurship, small business and public policy levers. Journal of
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
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Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
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Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
Micro and small-business ventures. 2017. [Online]. Available
through:<https://www.smallbusinessbank.com/about/micro-vs-small-business/ >.
Aspects of Entrepreneurial personality. 2017. [Online].Available
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