Small Business and Entrepreneurship

This assignment explores the factors influencing the success of small businesses. Students are tasked with analyzing relevant academic literature and identifying key variables that contribute to entrepreneurial ventures thriving. The provided list of references offers a starting point for research, focusing on topics such as strategic entrepreneurship, financial management challenges, entrepreneurial cultures, and the impact of education on entrepreneurial intentions.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship..........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures............................................3
TASK 2............................................................................................................................................4
P3 Assess relevant data and statistics to illustrate how micro and small businesses impact on
the economy................................................................................................................................4
P4 Importance of small businesses and business start-ups to the growth of the social economy
.....................................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from
other business managers..............................................................................................................6
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset..8
TASK 4............................................................................................................................................9
P7 Background and experience can hinder or foster entrepreneurship.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Entrepreneurship consider as an activity of setting up a business by taking on financial
risk with the hope of generating huge profits. It is related with the capacity and willingness to
develop, organize and organise a new venture to manufacture products and services with the aim
of satisfying customers needs and wants. In this context, entrepreneurs are the person who take
risk and initiative to start a new business to produce new and innovative products to invite large
number of customers (Albort-Morant and Ribeiro-Soriano, 2016). This will directly contribute in
enhancing the chances of attaining success at market place. Along with this, various types of
venture operate their business in market for generating larger profitability. Current report is
going to discuss various types of entrepreneurial venture along with different entrepreneurial
typologies. Difference and similarities between different entrepreneurial venture is also
mentioned in this project. Impact of small and start-ups on overall economy growth is cover in
this project. Furthermore, traits, skills and characteristic of successful entrepreneurs is discussed
here. At last how experience and background hinder of foster the entrepreneurship process is
mentioned in the project.
TASK 1
P1 Types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
Entrepreneurship is a process of launching a new venture with the hope of attaining
success at market place. In this, entrepreneur play a significant role in starting a new business as
they take risk, identify the human needs and manufacture a quality services to satisfy the
customers needs. This will directly contribute in enhancing the chances of attaining success. For
attaining the same, entrepreneurs undertake research to determine the opportunities present in the
market and also use available resources to attain the success. In this context, there are various
type of entrepreneurs can be understood by following points:
Large scale enterprise: These are the one who focus on the attaining growth at market
place by producing as well as offering new and innovative products to its customers as per their
needs. The main focus of this business is to generate high profitability at market place (Burns
and Dewhurst, 2016). For attaining the same, they require huge amount of financial resources to
established their commercial activities. Main aim of this type of business is to attain competitive
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advantage by introducing innovative products and services at market. Along with this, these type
of business do changes within their product line at the market trends and changes as well. With
the assistance of this they can easily sustain in market for longer period of time.
Small scale enterprise: It is also a another type of business which start their business at
small scale to generate more profits. Along with this, it also employs a small number of workers
and does not have high sales in the market (Burns, 2016). These type of business are privately
owned and also self managed. Grocery stores, cafe, and many more are the type of small scale
business. One of the main advantage of this type business is that it provide employment
opportunities to the local people which aid in improving their living standard. This will
contribute in making economic growth strong.
Social enterprise: These type of business are work for society development. The main
focus of this business is to improve living standard of society by fulling their basis needs and
wants. The main purpose of these business is to improve welfare rather than generating
profitability. As these enterprise is non-profit organization.
Scalable business enterprise: This type of business enterprise focus on the manufacture
quality products rather than quantity. In this context, this type of business focus on the vision and
communicate with investors about their aim and vision. It help in attracting number of investors
and at the same time also maintain their profitability level at market place.
Typology of entrepreneurship
Female entrepreneur: When all the decision and initiative are taken by the female to
start a business is called female entrepreneurs. They are more creative and introduce innovative
ways to perform the business at market place. These type of entrepreneurs provide employment
opportunities to the people within their business to handle its operations in effective manner. The
main feature of these type of entrepreneurs is that they can easily maintain a balance between
their personal and professional life. As they are focus on society development and also do efforts
to develop society standard.
Male entrepreneur: These type of business are managed and handled by the males as
they focus on attaining competitive benefits within the market. For this, they provide unique and
innovative products which help in inviting large number of customers (Doern, 2016). They take
risk to convert into huge profit. Along with this, the main aim of these entrepreneurs is to
generate more profits by serving quality services to the potential customers.
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Lifestyle entrepreneur: These type of entrepreneurs are focus on profits in which they
start a business as per their own interest and knowledge as well. By this they do more efforts to
generate more efforts. They can be small and large because they start their business based on
their personal area of interest.
Serial entrepreneur: These type of entrepreneurs always take challenges and risk with
the aim of attaining success at market (Dugguh, 2017). They work with high passion and focus to
manufacture unique products to invite large number of customers. The main feature of these type
of entrepreneurs is that they take more challenges after successfully set their business. As they
likes to do challenging task within the market for attaining success.
P2 Similarities and differences between entrepreneurial ventures
Difference between serial and lifestyle entrepreneurs
Lifestyle ventures Serial ventures
Lifestyle entrepreneurs are the person who
select the business that is related with their
area of interest.
Serial entrepreneurs are the one who put new
and innovative ways to start a new business at
market place.
The main focus of life style entrepreneurs is on
the life rewards provide to the people that
enjoy what they are doing actually.
Serial entrepreneurs focus on introducing
unique and innovative products to invite
customers and satisfy their needs.
Similarities between lifestyle and serial entrepreneurs
Lifestyle ventures Serial ventures
These type of venture always introduce
something new in market place as per their
area of interest.
Serial ventures also likes to put innovative
ways and concept within the business
activities.
The main focus of these type of venture on
their interested area to improve the chances of
attaining success in that area.
Serial entrepreneurs are also more passion
towards their work and business as well to
improve their performance (Fatoki, 2014).
Difference between male and female entrepreneurs
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Female entrepreneurs Male entrepreneurs
The enterprise which managed and controlled
by a female person. These type of
entrepreneurs are focus on developing society
standard along with generating profits.
The business start and run by a male
entrepreneurs who focus in attaining
competitive advantage. For this they offer
quality products to their potential customers.
They are more concern with the risk taking
within their business activities.
They likes to take more risk to convert into
financial returns.
Similarities between female s and male enterprise
Female entrepreneurs Male entrepreneurs
They do their best efforts to make their
business successful at market place (Fayolle
and Gailly, 2015).
Male entrepreneurs also focus on attaining
success at market place.
For inviting customers towards its services,
female entrepreneurs formulate innovation
within their business which help them in
capturing larger market share.
Male entrepreneur also implement innovation
in their working activities to invite customers
which directly contribute in increasing overall
profitability level of the company at market
place.
TASK 2
P3 Assess relevant data and statistics to illustrate how micro and small businesses impact on the
economy
Micro and small business are consider as a backbone of an economy as it help in
providing employment opportunities to local people which help in improving their standard of
living. This will directly contribute in making economy condition strong. In context of this, small
and medium enterprise also increase the innovation which may directly contribute in attaining
competitive advantage at market place. It positively impact in the UK economic condition by
enhancing productivity and overall growth of companies. In this context there are some impact
of small and medium business enterprise on the economy (Karadag, 2015).
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Impact of Micro and Small Business Enterprises
Both the micro and small business are said to be as the backbone of the economy as
because the amount of the business entities is increases in all over the world. These types of
business increases the economy of the country just by rendering the services and delivering the
products to their customers. There are many small businesses in the country which are giving tuff
competition to each other in the competitive market (Obeng, Robson and Haugh, 2014). Along
with this it is important to understand that these type of firms are having the wide source of
employment as they are providing the job to those individuals which are not as much
experienced and skilled. Otherwise these individuals will face the difficulty as all the top
companies are engage in hiring those persons who are highly skilled so that they can enhance
their sustainability in the business market.
As per the outcome of the survey, around 5.7 million private organisations has
established their business in the year of 2017 and still are operating that successfully. Since
2016, the increment of 3% has been noticed in the business activities. When the statistical data of
small businesses is taken into consideration then the economy has accounted about 99.3% from
the starting of 2017. Apart from this, the total workers in small and medium enterprises were
approx 13.1 million in UK. Thus, the revenue generated and annual sales of small and medium
enterprises operating in UK is around £1.9 trillion and this is approx 51% of total turnover of
each business enterprises dealing in private sector in UK.
Employment
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(Source: UK National Office of Statistics)
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From the above graph it has been identified that there is changes with employment within two
years i.e., 2016 and 2017. as in 2016, there is increases in employment 45% where in 2017 in
37%. The interpretation from the above graph clearly identifies that there is an negative outcome
when it comes to employment of people in small and medium enterprises. The decline in trend of
employment can be referred to instance of brexit post which UK is not perceived as an attractive
nation.
Turnover
(Source: UK National Office of Statistics)
As per the above illustration it has been analysed that turnover ration of SME employers
was high in 2017 as compared to 2016 by 2%. Whereas, in 2016 There was a sudden decline in
the turnover by 1%. The above presented illustration is sufficient to identify that there is an
increase in the turnover of SME's which signifies that there is a swiftness when it comes to
selling an inventory. This fact denotes that people in the country are possessed with a higher
purchasing power than the year before.
Goods and Services Export
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(Source: UK National Office of Statistics)
From the above graph it has been identified that, when employees are 50-249 explort of goods
and services are 37%, export of products are 26% as well as export services are 17%. whereas,
when staff member was 1-9 export services was 12%, export of good was 9% and export of
goods and services was 18%. Therefore it can be interpreted from the above illustration that
there has been a tremendous increase in the exporting of goods and services which has been
facilitated by small and medium sized organisations. The increase in exports improve balance of
trade and improves foreign exchange reserves of the country.
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Import
(Source: UK National Office of Statistics)
From the above garph it has been identified that, when companies operating at a small or
medium scale does not import their inputs. For instance organisatios with less than 9 members
operate with resources and inputs of host nations and 80% of thier materials are sourced locally
as compared to medium sized enterprises which are operating with 40% imports. The lower
number of imports states that organisations are capable of sourcing their own operations and
simultaneously improving balance of trade.
Training and Development
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(Source: UK National Office of Statistics)
In comparison of 2016 and 17, SMEs was providing training to employees was high in 2016 as
there are providing training to 50-249 staff members as it get decrese in 2017 by 6%. This stands
in correlation with the decline in the employement which has been carried out in the country.
However there has been postitive shifts when it comes to turnover and exports in the country
which are sufficient to state that there has been a lesser requirement when it comes to organising
training and development activities in such enterprises.
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P4 Importance of small businesses and business start-ups to the growth of the social economy
Here, it comes with the issue of Brexit, in which UK has left the European Union. On 23rd
of June in the year 2016, approx 50% of citizens had voted in favour of removal and it has been
advocated by Eurosceptic. Thus, by 29th of march 2019 was the day on which the UK was finally
separated from the European Union. This date of withdrawal was finalized by both UK and
European Union in order to end the process of negotiation.
Threat of Brexit on UK – This is the problem for the government of UK has they are not
able to take decisions freely (Ramadani and et. al., 2015). This impact on the growth of the
economy in the negative sense, therefore it is essential for UK to make effective policies so that
they can able to promote the small and medium enterprises. Here is the comparison between the
both enterprises -
Basis Small Start-Ups
About These type of business are run
at small scale and have less
workers, and are owned
privately and not having the
sufficient volume of sale.
These are the scalable business
which are owned by the
individual.
Growth Rate The growth rate of this
business is less as there are
high rivals in the business
market.
The growth rate of this
business is high as they are
having the aim of producing
the creative and innovative
products for their customers.
Benefits
1. Reduction in Poverty – The small and start-up business ahas provided the employment
to various individual and citizens of UK, therefore this assist the people in reducing the
level of Poverty.
2. Wealth Distribution – The small and start-up businesses assist the UK in an proper
distribution of amount as this enhance the opportunities for the individual to earn and
gain money (Ratten, 2014).
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TASK 3
P5 Characteristic traits and skills of successful entrepreneurs that differentiate them from other
business managers
Entrepreneurs are the person who run a new business venture with the aim of attaining
competitive benefits in market. They take risk and challenges to attain huge profitability within
their business to attain success. In this context, they have specific skills, traits and characteristic
that make them different from others. To become a successful entrepreneur, they requires unique
and specific skills, traits so that they can successfully run their business at market. In this
context, Mark Zuckerberg and Bill gates are successful entrepreneurs who have specific and
unique abilities that make them successful and differentiate from other managers. Some skills,
traits and characteristic are there which should be in a entrepreneurs:
Skills of Mark Zuckerberg
 Creative and innovative: It is important for entrepreneur to be more creative and
innovative as it help in inviting large number of customers towards its offerings (Rey-
Martí, Porcar and Mas-Tur, 2015). Entrepreneur believes in introducing creativity within
their business to sustain in market for longer period of time. Mark Zuckerberg is more
creative which can be seen in their success. It make also different from other business
manager because manager do not motivate their workers to think innovative ideas at
workplace.
 Flexible and adaptable: This skill is also important for entrepreneurs at the time of
running their business successfully. If entrepreneur have this skills than they easily do all
the necessary changes within their products to satisfying their customers needs (Shaw,
2014). Mark Zuckerberg have this skills through which they can easily do changes. This
is the main reason they he is more successful and differentiate from other manager. As
business manager follow the top management rules that is not changeable by the manager
at workplace.
Trait and characteristic of Mark Zuckerberg
 Vision: It is important characteristic of Mark Zuckerberg as they have clear vision within
their business. By this they easily attain success at market. In this context business
manager follow the vision that set by top management of the company.
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 Willingness to work hard: Being a successful entrepreneurs, they must be willing to put
their best efforts in the business so that they attain success. In context of this, Mark
Zuckerberg is hard workers as they take challenges to get competitive benefits. They
differentiate from the business manager because manager encourage workers to do hard
work at workplace to attain their target.
Skill of Bill Gates
 Time management: Bill Gates has knowledge about how to manage time and business
activities. This is the main reason that they attained success within the business. As
business manager manage time but at the same time they also make pressure on workers
to complete their target. This make employees demotivated towards the working
activities.
 Communication: This skill also help an individual to a successful entrepreneurs as they
easily interact with their workers and make them aware about all the policies present in
the company. Bill Gates has this type skill as they keep better relation with their workers.
It is also make them differentiate from business manager because sometime, they fail in
interacting with their workers that create issues among them and also negatively impact
on the business image.
Trait and characteristic of Bill Gates
 Self-motivation: Successful entrepreneur are self motivated within their business which
make them able to put their best efforts for attaining success. The main reason behind
success of Bill Gates is they self motivated that make them successful at market (Siegel
and Wright, 2015). On the other side, business manager are not self motivated as they
motivate their employees to perform their best.
 Take risks: A successful entrepreneurs has ability to take risk and convert into more
financial benefits. Without taking risk entrepreneur fail in meeting their targets. Bill
Gates is risk taker within their business which make them a successful entrepreneur. On
the other side, manager is not taking risk but they manage the risk within the business.
This is the main reason that entrepreneurs has ability that make them different from other
manager.
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P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset
To become a successful entrepreneur, specific skills and features are required. By which
a person can easily start their new business and attain success at market. In addition of this,
entrepreneurial personality is also affect the mindset and motivation of entrepreneurs. In this
context, Bill gates and Mark Zuckerberg are the successful entrepreneurs who have specific and
unique traits that provide support to attain success within their business. Both are having unique
personality which reflect them different from others (The Big Five Personality Traits, 2019). For
this, there is a Big five framework model that use to evaluate the dimensions of entrepreneurial
personality. It includes some points of personality can be understood by following description:
Openness to experience: This model is related with the creativity of people. In this
entrepreneurs needs to be more creative, imaginative and creative as well so that they can easily
perform their business activities and at the same time also can satisfy customers needs and wants.
With the assistance of this skill, entrepreneur is open to trying new things which support them in
producing unique and quality products. By this they can easily attain success at market place.
Conscientiousness: It is related with the high level of thoughtfulness and goal directed
behavior. In this entrepreneurs needs to focus on attaining set goals and objectives in stipulate
time frame. Along with this, highly conscientious entrepreneurs spend time in planning ahead
and also finished all the important task of the business so that they can easily attain their set
target and attain competitive advantage at market.
Extraversion: This type of trait is relate with sociability, assertiveness, talkativeness.
Thus, entrepreneurs needs to have ability so that they can easily communicate with target
audience towards the business objectives. With the assistance of this they can easily invite as
well as attract more and more investors towards the business enterprise.
Agreeableness: This trait includes attributes like altruism, trust, affection and kindness as
well. By this personality trait of entrepreneur help them in bringing corporations among all the
workers within the business. This will directly contribute in effectively executive all the business
activities in systematic manner.
Emotional stability: It is related with moodiness, emotional instability and sadness. Thus,
it is important for entrepreneurs to keep emotionally stable at the time of complex situation so
that they ca easily take right decision and improve their work efficiency within the organization.
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Different lines of argument relating to entrepreneurial characteristics
Every entrepreneurs have some characteristic that make them unique from others as it is
different from other entrepreneurs. The main reason behind this is that their culture, family
background is different. There are many entrepreneur who belongs from the business family and
this would be the basic reason that their characteristic reflects the ability of risk taking. On the
other hand, entrepreneur who have no connection with the business family then never prefer to
invest large amount where the amount of risk is more. This is the basic different that can
demonstrate the difference between the characteristic on the basis of the different determinants
from which they belong,
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurship is a process which includes various elements that direct affect the
overall activities of entrepreneurs. In this context, background and past experience of
entrepreneurs play a significant impact on the entrepreneurial process in both positive and
negative way. It also change the way of taking decision within their business. For example, If
background of person is not related with the business than they face some issue while launching
their business whereas if they belongs to the strong background then they easily run their new
business. In this context, there are some major factor that hinder and foster the entrepreneurship
process are as follows:
Family background: It is one of the important factor that put great impact on the
motivation and mindset of an entrepreneurs. In this context, Bill Gates belongs to strong family
in which his father was a lawyer who make him positive and also motivate to take their own
decision. This is the main reason they effectively run their business (Volery and Mazzarol,
2015). On the other side, Mark Zuckerberg also belongs to supported from their family. They
also motivate him to never loose their confidence. It positively impact on their entrepreneurial
process.
Nationality: It is also a factor which impact on the motivation and mindset of
entrepreneur. In this context, Mark Zuckerberg belongs to the America in which they put their
best to attain success within their business.
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All these are the important aspect that positively impact on the mindset and motivation of
the entrepreneur through which they easily attain success at market place.
CONCLUSION
From the above mentioned report it has been concluded that entrepreneurship is a process
of establishing a new business in market place with the aim of generating larger profitability. In
this entrepreneurs are the person who take financial risk and start their new business with the
hope of converting risk into profit. Along with this, different type of new venture is also operate
their business to invite larger number of people towards its offerings. In this, government of the
nation is also provide their better support to small business enterprise to make their business
success at market place. As it help in provide employment opportunities to local people which
help in improving their living standard. It directly contribute in making economic condition
strong. Apart from this, various special skills, traits, characteristic is also required to become a
successful entrepreneur. By this they can easily operate their new business and attain success at
market place.
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REFERENCES
Books and journals
Albort-Morant, G. and Ribeiro-Soriano, D., 2016. A bibliometric analysis of international impact
of business incubators. Journal of Business Research. 69(5). pp.1775-1779.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International Small Business Journal. 34(3). pp.276-302.
Dugguh, S. I., 2017. Entrepreneurship and small business: Strategic approach to alleviating
poverty and corruption in Nigeria. GSTF Journal on Business Review (GBR). 3(1).
Fatoki, O., 2014. The causes of the failure of new small and medium enterprises in South
Africa. Mediterranean Journal of Social Sciences. 5(20). p.922.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of small business
management. 53(1). pp.75-93.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal. 5(1). pp.26-40.
Obeng, B. A., Robson, P. and Haugh, H., 2014. Strategic entrepreneurship and small firm growth
in Ghana. International Small Business Journal. 32(5). pp.501-524.
Ramadani, V. and et. al., 2015. The context of Islamic entrepreneurship and business: Concept,
principles and perspectives. International Journal of Business and Globalisation. 15(3).
pp.244-261.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business. 22(2). pp.266-274.
Rey-Martí, A., Porcar, A.T. and Mas-Tur, A., 2015. Linking female entrepreneurs' motivation to
business survival. Journal of Business Research. 68(4). pp.810-814.
Shaw, G., 2014. Entrepreneurial cultures and small business enterprises in tourism. The Wiley
Blackwell companion to tourism, pp.120-131.
Siegel, D. S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
Journal of Management. 26(4). pp.582-595.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small
Business Journal. International Small Business Journal. 33(4). pp.374-396.
Online
The Big Five Personality Traits. 2019. [Online]. Available
through:<https://www.verywellmind.com/the-big-five-personality-dimensions-
2795422>.
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