Entrepreneurship and Small Business

This assignment delves into the multifaceted world of entrepreneurship and its influence on small business management. It analyzes various aspects of entrepreneurship, including its definition, characteristics, and the role it plays in economic development. The document explores the challenges and opportunities faced by entrepreneurs, along with strategies for success in the competitive landscape of small businesses. Additionally, it examines the impact of factors such as technology, globalization, and government policies on entrepreneurial ventures.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various types of entrepreneurial ventures and their relation with typology....................1
P2. Similarities and differences between entrepreneurial ventures........................................2
M1 Diverse range of entrepreneurial ventures.......................................................................3
D1 Scope, development and growth of entrepreneurial ventures...........................................4
TASK 2............................................................................................................................................4
P3. Micro and small businesses impact on economy.............................................................4
P4. Importance of small businesses and business start-ups....................................................6
M2 Differences small, medium and large businesses make to economy...............................7
D2 Small businesses have an impact on different levels........................................................8
TASK 3............................................................................................................................................8
P5. Characteristic traits and skills of successful entrepreneurs..............................................8
P6. Entrepreneurial personality can reflect entrepreneurial motivation and mind-set...........9
M3 Different lines of argument relating to entrepreneurial Characteristics.........................10
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs..........10
TASK 4..........................................................................................................................................11
P7. Way in which background and experience hinder or foster entrepreneurship...............11
M4 Link between entrepreneurial characteristics and affect of background and experience12
D4 Evaluate how background and experience influences entrepreneurs.............................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneur and small business management both offers learning to an individual as
well as student who want to begin their own business. It provides employment opportunities to
people which aid to reduce poverty line. An individual who starts micro enterprise, have possess
skills of enterpriser. If any company wants to survive for long term in the market, then they have
to do their business innovatively as well as creatively. Micro and small businesses provide
growth to the nations. When people start small enterprises then it is essential for them to produce
goods and services in an innovative manner (Bridge and O'Neill, 2012). It will aid them to
survive in market and they can take advantages from their competitors also. In the present report,
difference between social and lifestyle entrepreneurship will be determined. Along with that,
there are some successful businessmen in the UK such as Richard Branson and Mohammad
Yunus that will be compared in the report based on their characteristic traits and skills. They
both have different skills, knowledge and capabilities. The way their background and experience
influence them positively and negatively will also be shown here.
TASK 1
P1. Various types of entrepreneurial ventures and their relation with typology
Business visionary is a person who bears risk and develop new goods and services for
their customers in an innovative manner. He is an individual, who is self-motivated as well as
generate new ideas for organisation which aids in their growth and success. There are various
forms of entrepreneurial ventures that are described as below:
Small business entrepreneurship: In the present scenario, there are numerous people
who begin their business in a little range. In the UK, there is approximately 4.8 million
independent companies that are developing consistently. It additionally aids to enhance
employment as well as growth to economy. They provide occupations to general public who is
not utilized by substantial organizations since they don't satisfy prerequisite of them (Preuss,
2011).
Scalable start up entrepreneurship: This sort of enterprise means people who begin
versatile start up, start doing their business when they become more familiar with their vision
that can change the world. These kind of concern draw in more financial specialists for their
business. Persons who are working with these kind of enterprises are ideal and brightest. They
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extraordinarily concentrate on investments and need fastly extension moreover. They are more
inventive as well as risk taker compare to other form of entrepreneurship.
Large company entrepreneurship: These kind of business, needs more development
and inventiveness in their goods and furthermore they offer many sorts of products and
administrations to their clients and customers. On the off chance that they need to contend in
commercial center as well as develop new items or services and they can likewise adjust their
existing goods. Along with this, in substantial organizations there are various types of
individuals and they have their own way of life.
Types of typologies:
Serial entrepreneurship: It is most popular model with the passage of time. These types
of business executives come up with new innovative ideas and techniques so that they can start
their concern in new nation. (Henrekson and Sanandaji, 2014). These are opposite of typical
speculator who came up with new thoughts and ideas. They play an important role in day to day
functioning of firm, in case of serial magnate they are different, after start operations in business
entity give responsibility to others and move on to new ventures. These type of person has a lot
of new design and plans for different businesses. These businesspersons are not concentrate on
any one particular career, in fact, they enjoy process of starting new venture one after another.
Social entrepreneurship: Just as a magnate they can change face of entity same as social
promoters reshape environment of society. They take risk and deed restructure the society
bringing opportunities for the country. These speculators open up the ideas which are user-
friendly, understandable, ethical and not for profits.
P2. Similarities and differences between entrepreneurial ventures
Social business enterprise is extremely famous process, since it is largely utilized by new
organisations those need to develop in social as well as financial world. It can be distinctive as
indicated by size and goal of association. A few person who begins concern for personal life
style. They never begin business to earn more revenues. Generally those type of entrepreneur is
focus on the reward and enjoy it. For this type of entrepreneur they should be enthusiastic
towards their work.
There are various differences between social and lifestyle entrepreneurial ventures which
are mentioned as below:
Social entrepreneurial Lifestyle entrepreneurial
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This type of business need investors to invest
in business which helps them to provide
growth and development to the nation.
In this, there is no need of investors to the
enterprise (Gorgievski, Ascalon and Stephan,
2011).
They have specific location for their concern. They don't have any particular area for their
enterprise. They do their work freely as well as
can run their firm anywhere in the world.
This kind of entrepreneur always want to earn
profits.
They want to take adventures instead of gain
profits.
They focus on business goals and objectives. They concentrate on their life goals.
They have to manage their organisational
structure in an effective and efficient manner.
Lifestyle entrepreneurs stay involved at the
transactional level.
They need to work for 80 hours a week. They generally do their tasks 4 hours a week.
They give charity to people. They only provide their time to persons.
There are also some similarities between them which are described as below:
 Both types of entrepreneurial ventures take risk in their business.
 They possess leadership quality which aid them to accomplish the desired goals and
objectives in an effective manner.
 They also need motivation to do their work appropriately (Blackburn, Hart and
Wainwright, 2013).
 Both of them take advantages from their competitors as well as build their reputation in
the market.
M1 Diverse range of entrepreneurial ventures
Entrepreneurial ventures have many small businesses in it so that people can easily
understand about enterprise. It will aid to provide experiences as well as they can control risk by
using various instruments which is related with micro organisations. If people understand
enterprise then they can easily complete their project in effective as well as efficient manner.
Along with this, they can do it within given time period. Small entrepreneurship can be come
under private sector and large can be come under public sector.
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D1 Scope, development and growth of entrepreneurial ventures.
Small businesses have very wide scope in UK as well as it provides growth and
development to nation. It will aid them to give employment opportunities to people so that they
can reduce poverty line of country. These forms of enterprises are also flexible in nature which
assist them to adapt changes easily (Acs, and et. al., 2011). Employees of company have to use
appropriate ideas for their business which will aid them to cater growth and development. Along
with this, it is essential for them to utilize resources effectively so that they cannot face any
problem. Scope of entrepreneurial ventures are very wide as well as they are growing rapidly in
UK. As result to, it provides growth and development to nation.
TASK 2
P3. Micro and small businesses impact on economy
In United Kingdom, there are approximately 4.9 million people who are involved in these
types of organisations. They provide development and growth to country as well as job
opportunities to people. It is essential for them to work more creatively and innovatively so that
they can attract more customers towards them. They can produce new goods for their clients as
well as make necessary changes in the existing products. There are not more than 250 employees
who are employed in small businesses. If organisation wants to satisfy their customers then it is
essential for them to satisfy their needs and wants in an appropriate manner. Turnover of small
enterprises is continuously increasing from last some years.
Micro and small businesses render a positive impact on the country. They give
opportunities to people so that they can attain financial independence. Along with this, they
promote innovation as well as occupational possibilities. There are various challenges which are
being faced by them like money management, hiring right person, marketing, etc. Many times,
they have big thoughts regarding business but no people believe in ideas of these people. (Fassin,
Van Rossem and Buelens, 2011). Some large enterprises have started their concern in garages
like Amazon, Microsoft, etc. As their founders had innovative thoughts regarding their
association, so they are now successful in their business. These types of enterprises generate
employment opportunities for people which help them to reduce poverty line in country. They
cater approximately 70% to 80% jobs to citizens residing in the nation where these firms are
operating.
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Small organisations provide growth and development to nation. They produce products
more innovatively as well as creatively which aid them to attract more clients towards their
goods and services. Many large organisations depend on micro enterprises for the completion of
activities through outsourcing. They also implement innovative solutions on their existing
problems which assist them to make their products more effective as well as efficient. As a
result, it helps them to increase their productivity and profits and thus, the economic condition of
nation improves.
Micro companies are much flexible in nature so that they can easily adapt changes and
apply in their business. These form of enterprises are customer oriented and thus, it is essential
for them to satisfy their needs and wants in an appropriate manner (Carraher and Paridon, 2015).
Many of general clients will stay loyal to their preferred small concern at the time of crisis.
Small associations will not always stay tiny, they grow nationally as well as
internationally. Example: Microsoft. There are many competitors available in the market so it is
essential for company to compete with them which helps in enhancing their profits and thus the
capabilities to grow and become successful with contributing in the development of nation.
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P4. Importance of small businesses and business start-ups
These forms of enterprises provide growth and development to economy. They provide
occupational possibilities to people which helps in removing poverty from country. Micro
organisations are the backbone of United Kingdom. There are various characteristics of these
types of companies such as future growth, flexible, economic development etc. Along with this,
they promote competition in the market.
In small businesses and start-ups, they cannot employ more than 250 workers. In the UK,
there is approximately 5 million micro organisations. They contribute in the development of
economy by creating new employment opportunities for general population. On the off chance
that they increment creation of their products and administrations then also they will build their
business with goal that will expand growth of nation (Neck and Greene, 2011).
They additionally gets the monetary development in country so, they can contribute in
economic improvement. They likewise give chances to people who are utilized by some other
substantial association. They also use new strategies for their items and administrations and if
there is any current issue then they will solve them by utilizing new tools and techniques. Some
vast organisation don't do every their operations without anyone else's input so they relies on
upon small enterprise for wind up of their exercises which is identified with their business.
Every form of company has future growth in the market. It is essential for them to
produce high quality products for their clients so that they can satisfy their needs and wants
which will aid them to compete with their competitors as well as enhance their revenues. Small
organisations and start-ups are much flexible in comparison to large associations. As the business
environment is dynamic in the present era so, they can accept changes easily and implement it in
their concern in an effective and efficient manner.
Manager of these companies have to produce goods in an innovative manner so that they
can attract new customers (Nakara, Benmoussa and Jaouen, 2012). They also need to provide
unique solutions to their existing problems which help them to improve their items and services.
They can develop an effective relationship with their customers which will aid them in growth
and success of business. If micro associations satisfy their demands according to their choices
and preferences, it will assist them to retain loyal customers in company and attract more clients
towards them.
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M2 Differences small, medium and large businesses make to economy
There are various successful business persons in UK such as Richard Branson. They do
their work in innovative as well as creative manner. Every sort of organisation such as small,
medium as well as large provide growth and development to country. They give job
opportunities to people as well as develop goods innovatively. It will assist them to provide
satisfaction to their customers. Most of large companies are depend on small enterprises for their
activities.
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D2 Small businesses have an impact on different levels.
It provides wide impact on local as well as regional people. It also influences every level
of organisation either directly or indirectly. Thus, they can get essential information from
available data that will aid them in decision making (Chittithaworn and et. al., 2011). Culture of
organisation can get affected because every concern has their own policies. Thus, development
must be done on overall basis. At regional level, it helps in rotating money in local market and
national level, it aids in providing support in national economy so that they can do better
production.
TASK 3
P5. Characteristic traits and skills of successful entrepreneurs
Each and every person is different from each other. Not all individuals have some nature
and pattern of working. Hence this signifies that every person have some special skills,
characteristics and traits which they get inherited from their birth or get learned from others. An
entrepreneur is a person who take initiative of some innovative idea and bear all such risk factor
which are associated with it and execute that plan for attaining success and introduce something
new in market. This factor helps in improving the economic condition of country and introduce
many new job opportunities for those who have many special skills but do not be able to show it
due to some factors (Carland Jr, Carland and Carland III, 2015).
As per discussion, it is clearly examine that managers and entrepreneur both are different
from each other. They have not same skills, pattern and traits through which execution of work
get done. A major differentiation between Virgin owner who is Richard Branson, one of a
famous and most successful entrepreneur and managers of an organisations are as follow.
There are various traits and skills of Richard Branson, which are mentioned as below:
Innovative: He is much creative and always implement new thoughts in his business which will
aid him to compete their competitors in marketplace.
Risk taker: Every one knows that a business person is a hazard taker. They have capacity to
manage danger which may be connect in business. A percentage of an entrepreneurs are effective
and some can be unsuccessful, thus it may be not essential that every business person who is
successful take risk.
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Self motivator: Basically, they are self motivated as well as they have skills and abilities which
can also inspire them. They are so passionate towards their work and done their work in effective
as well as efficient manner.
Communication skills: An successful entrepreneur must have some skills so that they can
communicate everything in a better way. If they have better abilities then they can deal with their
suppliers as well as customers effectively and efficiently.
Decision making skills: It is necessary that every business person can take decision
appropriately without harming any one in organisation. It will assist them to enhance their
revenues as well as market share.
P6. Entrepreneurial personality can reflect entrepreneurial motivation and mind-set
An enterpriser is a person who bears the risk associated with new business and grab all
market opportunities. His aim is to generate more profit so that their business can survive for
long term at market. An entrepreneur should maintain a positive mind-set while working on any
project. This positive mentality aid him to achieve all targets in a significant manner and thus,
this will lead to increase the chances of success. This is a major thing because if an individual
has negative aspects for any of an operation then it leads to push them backwards on place of
moving forward.
As per the given scenario, many times, firm suffered with heavy loss and all of their
customers prefer and move on to other signals. However, Branson did not lose his hope and
continuously worked on all issues being faced by the organisation. Even their business in India
was shut down and they moved again back to their local parent country, UK (Sahut and Peris-
Ortiz, 2014). This factor lead to suffer heavy failure to management. Everyone was losing their
hope that company is about to shut down their operations. Their market value also leads to get
went down. All these things show negative signs and management thought that business not
leads to get continue any more. Along with that, they also faced so many problems with their
merger companies and sue them in court.
But all these things did not put any impact on the mentality and working pattern of owner
of organisation. In-fact these barriers motivate him most and he started working with more.
Sometimes, all such things hinder an individual to work forward and restrict him to work with
more efficiency. So, an entrepreneur should have to get motivated all times because he is a leader
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and plays an important role in an organisation. If he starts adopting a negative mind-set, his
employees will not lead to work in an effective manner.
Hence an entrepreneur always take out new idea with some unique and more features.
Many of the times, they got failed and thus, this creates a negative environment around them
which is not right. But they should have to learn from these failures. They have to use these
things to foster them more. If any of an factor gets eliminated or cannot be used by a person
properly then that particular person is not an entrepreneur (Raposo and Do Paço, 2011). A
particular is one who always prepare himself to overcome from any problem and barrier. All the
qualities of a leader are from birth and do not get learned from anywhere else. This is a basic
thing for any individual which signifies that a person who have positive mind-set and is always
motivated leads to make a successful personality and Richard Branson is the best example of
this.
M3 Different lines of argument relating to entrepreneurial Characteristics.
Business person having best possible aptitudes and information which will help them in
doing businesses and furthermore utilized the advancement and imagination in their items which
help in fulfilling the objectives and destinations. There parts in commercial center is likewise
extremely essential. They make arrangements for their business with the goal that they can do
their operational exercises in the viable way. Business visionary need to break down past records
which will help them in their future arranging with respect to their business. They wipe out
undesirable blunders from their association. Entrepreneurial skills can be learn out by person
which will help him or her in their growth and development.
D3 Characteristic traits, skills and motivational drivers of successful entrepreneurs.
Prefessor Muhammad Yunus is a successful entrepreneur in Bangladesh. He is a good
learner as well as creative thinker. He wants to reduce poverty line in country and much
passionate towards his work. He believes in development of whole society rather than individual
growth (Burrows, 2015). He developed many motivational program for poor people so that they
can enhance their knowledge. Yunus gives loan to person at low interest rates. His
communication skills is too good as well as takes risk to do anything.
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TASK 4
P7. Way in which background and experience hinder or foster entrepreneurship
Background and experience both act in a positive or negative way as it affects the
lifestyle of an entrepreneur in every aspect. For example: Muhammad Yunus is very much
influenced by his parent’s profession. Every businessmen is inspired by his or her family towards
their personal goals and objectives in both manner. At the beginning stage, economist professor
also follows footprint of his father by established business of printing and packaging company.
But Yunus has different an aim and motive as he wants to teach economics and continue his
study to enhance his knowledge and skills. Apart from this, he believes in eradicating poverty
from the whole society by implementing various useful programmes which are successful for
community members by taking the help of students.
On the contrary, this background or past experience of Muhammad Yunus played an
eminent role in his current life cycle because it assisted him in resolving recent circumstances or
upcoming challenges and risks (Gordon, Hamilton and Jack, 2012). On the other hand, in
coming days, he wants to improve the condition of weaker sections of society by implementing
many more techniques or impressive policies. According to the given scenario, there is a
shortage of capital for poor people that has a great impact on their livelihood as because of
insufficient fund, they are not able to fulfil their basic needs and wants. Therefore, Yunus want
to protect the life of exploited peoples by preparing effective strategies of providing loan with
minimum interest rate which consists of various useful ideas.
Basically, ancestors and family members of an entrepreneur play a vital role in their
lifestyle in every aspect at various stages of their life because they are the first teacher or friend.
On the other hand, experiences are own learning of an individual which was gained by
themselves in a particular time period. For example: Muhammed Yunus enhances their
knowledge by experiencing various things in their overall life cycle (Roth, 2014). A cited case
study is all about inspirational path of famous economics scholar whose main motive is to
eliminate obstacles of weaker society in living their life comfortably by implementing facility of
Grameen bank. Somehow experiences is very much indispensable for every entrepreneur
because it act a useful or impressive tool in eliminating various business problems or obstacles.
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At last, according to given scenario, it can be understood that an entrepreneur gets
encouraged towards his personal objectives by the support of his family background as well as
experience gained.
M4 Link between entrepreneurial characteristics and affect of background and experience
Richard Branson is a very successful entrepreneur. He belongs to a traditional family as
well as excelled in sports. He dropped out of a school and launched a magazine, which become
more famous in market. Background of a business person can affect his career either positively
or negatively. It can gives them motivation which will aid them in their growth and success.
D4 Evaluate how background and experience influences entrepreneurs.
It can influence entrepreneur in positive as well as negative manner. Richard Branson
started his career in early ages compare to Muhammad Yunus. Both of them face same issues i.e.
financial problem. There backgroud provides them motivation as well as demotivation. Branson
and Yunus, struggled to much in their life (Roth, 2014). They also need to do their business in
innovative manner so that they can enhance their revenues. It will assists them in their growth
and success. Along with this, they can compete their competitors in market, as result to, it can
increase their goodwill.
CONCLUSION
As per the above mentioned report, it has been concluded that entrepreneurship and
small business enterprises provide growth and development to economy. It aids to generate
employment opportunities in nation which helps to reduce poverty line. Every person has
his/her own skills and knowledge to do their business as well as have perceptions to complete
their task. In this report, there is a description of various types of entrepreneurship such as
lifestyle, small scale, scalable and further more. There are some differences as well as
similarities between lifestyle and social entrepreneurship, which is described in this
assignment. There are many business persons who are very successful in UK, example Richard
Branson, Mohammed Yunus. There experience and background can affect their career either
directly or indirectly. Every manager of organisation has their own skills and characteristics
which will assist them in their occupation.
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