Entrepreneurship and Small Business Management

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 different types of entrepreneurial ventures and explain their relationship with typology of
entrepreneurship..........................................................................................................................3
P 2 similarities and differences between these ventures..............................................................4
LO 2.................................................................................................................................................5
P 3 Impact of micro and small businesses that has impact on the economy...............................5
P 4 Importance of small business and start ups for the growth of social economy.....................5
LO 3.................................................................................................................................................6
P 5 Characteristics and skills of entrepreneurs and difference between them and business
managers......................................................................................................................................6
P 6 aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. .7
LO 4.................................................................................................................................................8
P 7 Background and experience of entrepreneurship..................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Every large company started out as a small business, led by an entrepreneur. As our economy
becomes more volatile, having the skills and knowledge to start a new business may mean the
difference between prosperity and poverty. This report highlights issues such as different
entrepreneurial ventures and their typology. Similarities and differences between these type of
ventures. Contribution made by small and micro business and their importance. Traits and skills
of entrepreneurs, five trait model and background of entrepreneur has been highlighted (Mazars-
Chapelon, Chapellier and Mignon, 2018).
LO 1
P 1 different types of entrepreneurial ventures and explain their relationship with typology of
entrepreneurship
Small business entrepreneurship-
Nowadays startups on a small scale are considered as the most viable aspect of
entrepreneurship. More than 80 per cent of the companies in UK are operating on a small scale.
They employ over 50 per cent of people in the private sector. This type of business gains capital
from banks, family or friends.
Scalable start up Entrepreneurship-
This setup of business is based on the vision, will power and confidence of the
entrepreneur as they believe that their vision can change the way of working. This is known as
scalable start up entrepreneurship. This type of business has a different way of raising funds and
that is through venture capitalist. This way they are able to look for employees that are skilled.
For instance business such as facebook, instagram, whatsapp comes under this form of business
which makes allocation of funds raised difficult. The typology of this form of business is
scalable as they want repeated business (Linton and Solomon, 2017).
Social entrepreneurship-
This form of entrepreneurship is done when entrepreneur wants to do something good for
the society and help them for a better cause. Their motive is to work for the betterment of the

environment instead of making money. Typology of this form of entrepreneurship states that it
consists of strong discipline, stable and strong traits of leadership and innovation and ability to
work on the goals that are fixed.
Large company entrepreneurship-
These types of companies operates on a large scale such as Google, Microsoft, Apple etc.
main focus of these businesses is working on innovating ideas and bringing them into the market.
Typology of this form of business is that they want to come up with new and core products in
order to come up with the needs and wants of the market (Klapper, Biga-Diambeidou and Lahti,
2016).
P 2 similarities and differences between these ventures
Attributes Small Scalable Social Large
Objective These businesses
operate on a low
scale which
limits their
power to earn a
substantial
amount of profit.
These businesses
want to bring
change with the
method and
pattern of their
working.
The aim of
companies
operating in this
sector is to focus
on the betterment
of the society.
These businesses
has only one aim
and that is to
earn more and
more profits.
Financial source These businesses
raise money from
friends and
families.
This type of
business raise
money with the
help of venture
capitalist
These firms get
money in the
form of donation
from big
businessmen or
NGOs.
They raise
money through
bank, investors
or retained
earnings.
Organizational
structure
Structure is flat. These type of
companies has
tall and different
structure as their
employees are
not allowed to
No fixed or
specific
structure.
Structure of these
companies are
functional.