Entrepreneurship and Small Business Management

Entrepreneurship and
Small Business
Management

INTRODUCTION
Entrepreneurship is the procedure within that particular person develop or implement
some innovative ideas for business generating. In relation to this, entrepreneur is the person who
come with new idea in market for business success (Dees, 2017). Along with this, they are risk
taker because without taking risk there is less chances of gaining success. There are several
successful leaders and manager in business environment who analyse need and wants of
customers for fulfilling them in better manner.
This report is divided in two parts, out of this part a include type of entrepreneurial
venture along with their scope, development, growth and relationship with typology of
entrepreneurship. In addition to this, likenesses just as contrasts inside pioneering adventures will
expand by giving instances of both open and corporate division. Additionally, it will going to
look at effect of independent company on national, worldwide and social economy. Aside from
this, part b will investigate qualities attributes, aptitudes just as inspirational drivers of
accomplishment business person. Alongside this, few qualities of pioneering character will talk
about which bring about inspiration.
PART A
Entrepreneur is the individual who have innovative as well as creative mind and always
try to come up within something new in market which was not existing. Along with this,
entrepreneur is the risk taker and want to enjoy monetary benefits. In addition to this,
entrepreneurial venture are divided in two categories these are named as public and corporate
sector. Overall description of these are given below :-
 Public sector- It is part of entrepreneurial venture as public sector is control as well as
manage by government bodies of particular nation within that organisation is located
(Demil and et.al., 2015). Respective sector business firms motive is to provide general
services such as police, public transportation and many more to society.
 Corporate sector- It is also part of entrepreneurial venture and famous for business sector.
Corporate sector involve such business firms which owned through particular person for
generating revenue.
In addition to this, entrepreneurial venture is classified within various type of organisation
explanation of these are as follows:-

 Large company Entrepreneurship– They are the business firm that conduct their
operations at large level as well as have enough resources and appropriate personnels.
Large scale organisation motive is to generate revenue as much as can (Drucker, 2014).
 Scalable Start-up Entrepreneurship– They are the companies which always come in
market with something innovative as well as creative that has been never used before.
Motive behind this is to gain competitive advantages within existing competitive
industry.
 Small Business Entrepreneurship– These companies work at small level and reach up
to limited geographical areas. But they create job opportunities for population of that
particular area and result in development of economy. Social Entrepreneurship – These are business firm which generally work for welfare of
society as well as motive of social enterprise is to uplift living standard of people.
Various type of typology of entrepreneurship
There are various type of entrepreneurship typologies which based on characteristics
and nature. Out of this few are as follows:-
 Male Entrepreneurship- They are the organisation who run as well as manage through
male entrepreneur. They are risk taker basically and take decision mainly for business
expansions (DAILY, KIEFF and WILMARTH JR, 2014).
 Female Entrepreneurship- These organisation run through women entrepreneur as well
as they are the one who see overall working of company. They are the entrepreneur who
never want to take risk because of their conservative nature. Activities conducting by
them are too friendly which result in building good relation with customers, stakeholders,
personnels and many more. Female entrepreneur are the one who run small business like
small retail store.
 Micro enterprises – It is also known as micro business which refers to small business
having few number of people. Moreover, micro enterprises generally operates with less
than 10 people and started with small amount of capital. Mostly micro enterprises are
specialized in providing goods as well as services for their local areas. These type of
business helps in improving lifestyle of people within developing nation and also
provide goods as well as services within their communities like clothing, footwear

production or agriculture. They not only provide quality living but also add in value of
local economy.
 Lifestyle venture – It is the venture which is geared towards supporting income as well as
personal requirement of owner's instead of revenue maximisation. Moreover, major goals
of lifestyle venture is to create sustainable and pleasant work balance. Lifestyle business
selected on the basis of personal interest so that time individual spending in that should
be enjoyable.
 Medium size venture – These are the business which maintain revenue, assets as well as
number of employees below a certain threshold. Within economy medium size enterprise
play important role by employing people and also in helping to shape innovation.
Moreover, medium enterprises have less than 250 employees.
 Gazelle ventures – It is high growth company which increase their revenues by minimum
20% for four or more years, starting from revenue based of at least $1 million. Moreover,
Gazelle companies are well known for employment generation and credited among the
best source of new employment within economy.
 Social enterprise – These are the business which have specific objective which serve its
primary purpose. In addition to this, social enterprises seek for maximising profit while
maximizing benefits for society as well as environment. Profit generated by social
enterprises utilise for funding social programs.
There are various entrepreneurial ventures i.e., small, large, scalable and social. All these
have several similarities within them explanation of these are as follows:-
 These entrepreneurial ventures put efforts for accomplishing goals and objectives timely
in efficient and effective way (Thomas and Thomas, 2019).
 Motive of these entrepreneurial venture is to serve their customers and stakeholders by
offering them quality products and services.
Along with these similarities these are several differences also within respective
entrepreneurial venture. Explanation of these are as follows:-
Basis Small scale company Large scale company
Operation level Small business entrepreneurship
conduct their operations at small scale.
They generally don't have particular
Whereas, these organisations are
operating at wide level as well as
complex structure of their firm which

departments as well as delegations of
task is also limited (Tornikoski and
Maalaoui, 2019).
involve several divisions. Along with
this, they have delegation of
authority.
Objectives Main objective of running business is
to earn money for better living
standards.
Large company entrepreneurship
objective is business expansion for
generating more and more revenue.
Basis Scalable Start-up Entrepreneurship Social Entrepreneurship
Objective Scalable start-ups main motive is to
come with something innovative within
market area.
On the other hand, social
entrepreneurship objective is to
develop quality and living standards
of people (Welter, Baker and
Wirsching, 2019).
Nature These start-up mainly privately owned
and their aim is to come up with
something innovative for changing
world.
They don't work for generating
revenue but operate for welfare of
society.
Establishing micro and small business is in trend now a days as well in relation to this
government bodies of particular country is supporting those individual who are starting their own
business (Pages, 2019). Along with this, they result in providing employment opportunities and
rising living standards of people. Small business play important role in growth and development
of particular nation economy explanation of this are as follows through statistical information.

Illustration 1: Percentage of employment, turnover and businesses in different sector of
UK, 2016
(Source 1 : Percentage of employment, turnover and businesses in different sector of UK,2016)
From this graphical presentation it is identified that small scale business enterprises have
their own importance within economy of United Kingdom. Because private sector 93.3%
organisation are small scale companies. Along with this, Small companies are also contributing
in employment generation as 48% of total employment within private sector is because of small
enterprises. Out of overall total employment 60% is generated through small scale organisations
in United Kingdom. Moreover, Out of entire UK population more than 15.7 million are
employed through small scale organisations (UK SME Data, Stats & Charts. 2017). Along with
this, annual turnover within UK in 2016 in around £1.8 trillion which is accounted for 33% of
total revenue.
Social economy refers to rich diversity which has been establish by an organisation such
as foundations, cooperative, associations, social enterprises and several other institutions (Pelz,
2019). Small business and start-ups have their positive impact on economy which are as
follows:-
 Financial independence- Start-ups and small organisation result in making people
independent because they generate employment opportunity as well as help in raising
living standard.

 Job opportunities- Small scale organisations as well as start-ups in economy have wide
impact as they result in providing job opportunities to people at that particular area, state
as well as nation and also at international level (Randolph and Daspit, 2019). Along with
this, by providing job opportunities there is positive impact on li9ving standard of people
which help in development of economy.
Apart from the importance of small business and start-up there are several challenges also
which UK small and medium enterprises are facing. For SME one of the major challenge is
Brexit as 30% of Small and medium business has listed it as their biggest concern and 195 are
about potential for their operating costs to increase. Explanation are as follows :-
 Brexit – In UK, more than 45% of Business has been said that Brexit have wide impact
on their confidence as well as business both. Right now the key challenge facing small
businesses would appear to Brexit. 2019 brings uncharted waters as the UK prepares to
face one of the biggest and most drastic changes in generations – leaving the EU.
 Cash flow – For SME cash is lifeblood for running their daily operations as well most of
the business owner are struggling for managing cash flow effectively.
PART B
1.
Entrepreneur is the person who come in market with some innovative idea after
identifying requirement of people available in market. There are several characteristics traits as
well as skills of successful entrepreneur which will explained through two entrepreneur:-
 Jeff Bezos - He is technology entrepreneur, investor and philanthropist and founder, chef
executive of Amazon. Jeff Bezos was born in 18=964 on 12th January and residence at
Albuquerque, New Maxico, United State as well as his residence is Medina,
Washington, U.S.
 Mark Zuckerberg – He is American technology entrepreneur and known as Co-founder
of Facebook as well as chief executive officer. Mark Zuckerberg was born in 1984 on 4th
May and residence at Palo alto, California US.
Within both of above mention entrepreneur there are some key traits and skills
explanation of these are as follows:-
Mark Zuckerberg Jeff Bezos

Traits Innovation- He come in market with
innovative idea that has been never
used before and it was his mind
creativity.
Feedback approach- respective
entrepreneur believes in taking
feedback from person who are using
Facebook for implementing
modification as per suggestions given
by them.
Innovation- It is most common trait
which has been founded within both
entrepreneur. Thus, product and
services offering by Mark Zuckerberg
and Jeff Bezos is innovative as well
as distinct from others.
Experimentalist- He is the
entrepreneur who always believe in
doing experiment instead to coming
up something which already exist in
market. Thus, Jeff Bezos focus on
doing experiment with latest things.
Skills Motivator- Mark Zuckerberg motivate
team members for gaining better
results.
Communication- Mark Zuckerberg
believe in always two way
communication as it id only source of
success.
Focused- He is the entrepreneur who
focus on doing things well as well as
try to create best out of the things by
focusing.
Mindfulness- Jeff Bezos know very
well that how he handle criticism
because he feels that these are
stepping stone for success.
Characteristics Problem solving- Mark Zuckerberg
believe that it is important to solve
problem in effective manner in
company. Thus, it will not give
negative impact on working of
company and result in accomplishing
goals as well as objectives.
Risk Taker- Entrepreneur are the risk
takers because without risk it will be
difficult to get success. Jeff Bezos
also believes in taking risk as this
nature is reason behind leaving well
paid job and starting Amazon.
Apart from this there are several differences within successful entrepreneur and business
manager explanation of these are as follows:-
Basis Successful Entrepreneur Business Managers

Focus Successful entrepreneur is the one who
keep focusing on bringing new as well
as innovative ideas in market area.
Business manager is the one who
focus on day to day operation of
company and also pay attention
towards achieving organisation goals
and objectives.
Status They are the owner of company and
business bring by them in market.
They are simply employee within an
organisation.
Motivation Motive of entrepreneur is to generate
revenue by carrying out activities
within effective manner.
Manager motive is to carry out day to
day operations in smooth manner.
2.
Personality aspect has been reflected through well known and famous entrepreneur such
as Mark Zuckerberg and Jeff Bezos. For understanding this entire concept OCEAN model will
be applied because it will assist in easy understanding of overall concept which are as follows:-
OCEAN Model – There are five big personality traits and factor model which are known
as OCEAN Model Within this model there are five different type of personality traits that assist
in analysing responsibilities which is allocated to different person (Satar and John, 2019). In
OCEAN Model there are five main area explanation of these are as follows:-

Illustration 2: OCEAN Model, 2019
(Source- Ocean Model, 2019) Openness – This personality trait help in measuring level of creativity and knowledge
and latest experience. In simple term it can be said that openness is level of creativity
founded within particular person. Moreover, it has been also suggest that several goods as
well as services that are established through these entrepreneur in terms of art and
creativity. There are two entrepreneur i.e., Jeff Bezos and Mark Zuckerberg who get high
rank in openness aspect. Conscientiousness – This aspect of personality trait is related to work management skills
which is needed within entrepreneur. Because with the assistance of this workload will
manage in effective manner. Mark Zuckerberg and jeff Bezos are entrepreneur who show
their work within organised way and this they also want from staff. Extraversion – It is related to vitality of entrepreneur for getting connected with other
people they can be introvert as well as extrovert in nature (Ratten, Costa and Bogers,
2019). There are two type of entrepreneur Jeff Bezos and Mark Zuckerberg they both are
introvert in nature from childhood as not connect with people easily and need proper time
within this. Agreeableness – This aspect include ability of individual related to trust in particular
person in easy manner. Moreover, agreeableness is related to getting connected with

someone as well both entrepreneur are ranked high in this as they are agreeableness in
nature.
 Neuroticism – It is last aspect OCEAN Model which include emotional stability of
particular person in relation with anxiety and depression issue. In this aspect Jeff Bezos is
ranked low because he is helpful and easy to communicate with boss same as Mark
Zuckerberg also.
ERG motivation theory – It is simplified version og Maslow's hierarchy of need theory and
include three basic needs which an employee seeks to fulfil. When each need fulfilled it serves
motivation to fulfil another need. Here, ERG stands for existence, relatedness and growth
explanation of these are as follows :-
 Existence – It is related to basic need such as physiological health and safety. For an
organisation it is important to ensure that their staff member's basic need is getting fulfil.
Because it will result in motivating them and also in improving productivity of business.
 Relatedness – Need for social status, interpersonal connects and recognition included
within relatedness. After fulfilling basic requirement individual move towards for
accomplishing social status, interpersonal connects and many more.
 Growth – Last involves need related to personal development, including creative and
meaningful work. When every type of need get fulfilled individual get motivated for their
personal development which can be only possible in organisation when proper training
and development has been designed for employees.
3.
There are several factors which have positive as well as negative impact on individual. It
will show all the elements which evaluated for analysing strength as well as weakness of
individual. Entrepreneur is the person who manage business activities and take risk for revenue
generation. There are several factors on which entrepreneurship which are mention below:-
 Level of education- It is important part because with the assistance of this capabilities of
particular person will determined which result in development and growth of company.
For particular person it is important to have enough knowledge about particular area in
which they are starting business (Runyan and Covin, 2019). Thus, Jeff Bezos get succeed
in IT sector by using their knowledge and ability which they have within this sector for
establishing business.

 Nationality- In relation of particular person nation as well as culture play important role
within establishing thinking and mind set. Mark Zuckerberg is suitable example of this
because he was not born in America but brought up in the nation. Respective
entrepreneur is popular for support and activities of the area where he was living. Most
important thing is that he use available resources in proper way which are available for
him.
CONCLUSION
As per entire discussion it has been summarised that, if an individual want to become
independent as well as better place within business environment for then it is important to
establish own business. Along with this, legal bodies are also providing assistance to such person
who have some creative idea and want to establish their own organisation. While establish
business entrepreneur go through several problems and they have direct impact on their working.

REFERENCES
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