Entrepreneurship and Small Business Management

Entrepreneurship and Small Business Management
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Table of Contents
LO 1: Exploring the types of ventures that can be used for entrepreneurship................................3
P1 Examining the various kinds of entrepreneurial ventures and explaining their relation in
entrepreneurship..............................................................................................................................3
P2 Exploring the similarity and points of difference among entrepreneurial ventures...................4
LO 2: Assessing the impact of small businesses on the economy of UK........................................7
P3 Assessing the impact of micro and small businesses on the economy.......................................7
P4 Explaining the importance of small businesses and start-ups towards the growth of social
economy...........................................................................................................................................8
LO3: Determining the key aspects of an entrepreneurial mind-set.................................................9
P5 Determining the characteristics and skills of successful entrepreneurs that make them
different from business managers....................................................................................................9
P6 Assessing the aspects of entrepreneurial personality and its impact on entrepreneurial
motivation and mind-set................................................................................................................11
LO4: Evaluating the various environments that boost or hinder entrepreneurship.......................12
P7 Examining the ways in which background and experience can hinder or foster
entrepreneurship practices.............................................................................................................12
Reference List................................................................................................................................14
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LO 1: Exploring the types of ventures that can be used for entrepreneurship
P1 Examining the various kinds of entrepreneurial ventures and explaining their relation
in entrepreneurship
According to Birley (2015), the impact of entrepreneurship has a tremendous effect on the
economic perspectives of any country and it also assists social development to a great extent.
The various kinds of entrepreneurship ventures have a distinct feature that differentiates in terms
of scope and impact of the business. There are four major types of entrepreneurial ventures that
include Small Business Entrepreneurship, Large Companies, Scalable Startups and Social
entrepreneurship.
Figure 1: Types of entrepreneurship ventures
(Source: Bridge and O'Neill, 2012, p.121)
The major emphasis of the report is based on the Small business entrepreneurship and the
various functionalities of this type of entrepreneurship suggests the impact it has on a nation’s
economy. Buttner and Moore (2014) argued that small business ventures have tremendous scope
in terms of business opportunities and capability of entrepreneurs to engage in business
independently. As per reports, in UK around 95% of the companies are Micro and small
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Small Business Entrepreneurship
Large Companies
Scalable Startups
Social entrepreneurship

businesses. In 2015 alone, around 581,000 companies were created. Ably funded by the
government scheme named Startup Britain, the small businesses are becoming a fast growing
phenomenon (Telegraph.co.uk, 2017). Small business entrepreneurships can be any individual
that have proper financial stability and vision for their business. It could easily be a grocery
store, travel agents, electricians, hairdressers and many other individual entities that run the
business. As entrepreneurship is something where a new business is set up and financial risks are
taken, small business entrepreneurship present limited profitability but the risk of losses are also
a bare minimum.
Another type of entrepreneurship that is inherent in the business environment includes scalable
startups. The value that these kinds of ventures bring to the economy is the fact that innovative
business ideas with benefits in future are able to attract investment from mostly venture
capitalists. This assists in hiring the best of staff and a scalable business model can be
established. Cooper (2015) opined that innovative businesses such as scalable startups usually
benefit the economy through their distinctive and useful products that is supported by incessant
investments.
This brings the larger entrepreneurship ventures next, this type of venture includes sustainable
businesses that have long-term objectives. As per d'Amboise and Muldowney (2013), larger
business ventures have a certain lifecycle and business can only progress through continuous
innovation and developing newer products. Various pressures including customer taste and
preferences, advent of new technology and various legislation changes impact business and these
companies must cope with such issues. Larger companies can handle such situations by either
acquiring businesses with innovative features or conducting innovation themselves.
Lastly, the Social entrepreneurship venture is the type of business which specifically caters to
major social issues and needs in a country. The operational activities are similar to that of
scalable startups but are based on helping in solving social issues. Ghobadian and Gallear (2015)
suggested that social business ventures mostly are either non-profit or hybrid organisations.
Solving socially relevant issues helps in community development and that can have an influence
on the economic facet of a country.
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