Analysis of Entrepreneurial Ventures and Small Business Management

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and then explores various types of entrepreneurial ventures, including trading, manufacturing, agricultural, technical, and social enterprises. The report analyzes the similarities and differences between these ventures, focusing on the distinctions between small and large enterprises, scalable start-ups, social ventures, and businesses owned by males and females. It also examines the influence of micro and small businesses on the UK economy, highlighting their significance in the post-Brexit social economy. Furthermore, the report identifies the key characteristics, traits, and skills of successful entrepreneurs, and discusses how background and experience can both hinder and foster entrepreneurial endeavors. The report concludes with a summary of the key findings and insights into the dynamic world of entrepreneurship.

Entrepreneurship and
Small Business
Management

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types entrepreneurial ventures and its relations with each other............................3
P2 Similarities and differences between entrepreneurial ventures.............................................5
TASK 2............................................................................................................................................7
P3 Influence of micro and small business on economy..............................................................7
P4 Significant of small business and start-ups in the growth of social economy after Brexit....9
TASK 3..........................................................................................................................................11
P5 Characteristics, traits and skills of two successful entrepreneurs........................................11
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation..........................13
TASK 4..........................................................................................................................................13
P7 Background and experience can hinder and foster entrepreneurship..................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is an individual who is having an ability to design, manage and
organize a venture by taking various type of risk in order to generate maximum amount of
revenue. Their main objective is to come up with unique ideas or creativity for establishing their
positive image at marketplace by grabbing available opportunities (Mariotti and Glackin, 2015).
Therefore, assignment is going to highlight various types of entrepreneur for attaining their set
objectives in a defined time period. Along with this, similarities and differences are also further
explained in the project for understanding the reason behind establishing business of certain
entrepreneur. Furthermore, impact of small business on UK economy and their significant role in
contributing development of nation. Additionally, characteristics, skills and traits of two
successful personalities is also outlined in the project and shows that how their background or
experience influence them in distinct manner.
TASK 1
P1 Different types entrepreneurial ventures and its relations with each other
Entrepreneurs is all about establishing a new business by coming up with creative
concept in order to gain maximum benefits. Basically, he/she is a person who is having an ability
to take risk from market for running a firm. In fact, their main objective is to attain long term
benefits by satisfying the needs of various customers as well as trying to build their positive
goodwill at market. Mainly, person must know how to make an impressive strategy for capturing
the minds of overall society (Schaper and et. Al., 2014).
In fact, it has been understood that various types of entrepreneurial ventures are identified
at marketplace because various individual whose are coming with unique ideas are having
distinct motive. Therefore, difference between objectives helps in identifying the differences
between various ventures which are discussed as follows-
Classification on the basis of types of business-
 Trading entrepreneur- These individuals are consider as wholesalers, retailers, dealers
and middlemen which can run their business entity by acquiring goods from
manufacturer for transferring it to final end users. In fact, these businessmen’s are also
consider as mediator between final users and by this they can tries to acquire more or
more benefits.
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 Manufacturing entrepreneur- These persons are responsible for designing or creating
products with the use of distinct raw materials. Basically, their main objective is to
identify the needs of various customers in order to make creative products as per societal
needs or demands. In simple words, manufacturer is liable for converting raw materials
into finished goods (Burns and Dewhurst, 2016).
 Agricultural entrepreneur – An individual who is engaged in farming process such as;
cultivation, promoting agricultural products, irrigation, mechanization and several other
activities related with agricultural are falls under this type of business entrepreneur.
Based on technology use-
 Technical entrepreneur- Person who is liable for establishing and running a science or
technology based industries are falls under this classification. Basically, these members
are using science and technology for creating revenue and tries to satisfied customer
needs or demands. Moreover, these entrepreneurs always engaged in using new or
innovative tools or techniques for producing things in their organization (Ligthelm,
2010).
Based on ownership-
 Private entrepreneur- Person who establishes the business enterprise is a sole proprietor
and bears all the risk on their hand. In fact, decisions are also taken by owner only
without involvement of any other person.
 State entrepreneur- If any trading and industrial venture is owned by state or governing
bodies then it is consider as state entrepreneur.
 Joint entrepreneur- If governing bodies and private entrepreneur is work jointly and run
an organization then it is known as joint business.
Based on gender-
 Male- If an organization or business is controlled, owned and fully managed by any men
then it is known as male entrepreneur.
 Female- Organization managed or run by women’s are falls under this category as well
as business in which female is having 51% of shares as compared to any other partner is
also consider as female entrepreneur.
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These are the some essential businessmen’s and women’s are determined at marketplace
which are having distinct motive or objective as compared to each other. But somehow
interlinked with the typology of entrepreneurship which is described as follows-
 Small business- If an organization which was established any of the above entrepreneur
is consist of minimum amount of funds, invested small capital in their business, short
term vision and mission are falls under this type of entrepreneurship. Basically, small
firms are not having that much of heavy funds as well as with minimum employees in
order to earn specific amount of profit. For example; male, female, agriculture and
trading entrepreneurs are falls under this size of business.
 Scalable start-up business- An individual or entity who always engaged in creating
something new or unique in order to gain long term benefits as well as to establish their
business for longer duration by grabbing the market opportunity. For example; technical
and manufacturing entrepreneurs are always wanted to introduce something creative in
order to attain monopoly at marketplace (Neck and Greene, 2011).
 Large company- These are business which are having maximum amount of funds,
workforce, various ventures and long term vision are falls under this category. For
instance; state business, joint venture and private owned organization because these
business are always having long term vision for acquiring maximum amount of profit
level by satisfying customer needs or demands.
 Social entrepreneurship- If an organization was establish just to facilitate consumers
and public place then this will consider as social because social is all about developing
society with the establishment of distinct facilities. For example; business owned by
governing bodies are mainly falls under this.
P2 Similarities and differences between entrepreneurial ventures
There are numerous of entrepreneurial ventures are available at marketplace due to the
emergence of several creative ideas and thought processes. In fact, numerous of ideas are
launched at marketplace for attaining set objectives and targets in a defined time period. But at
the same time, all the ventures are having few major similarities and differences between each
other that is described as follows-
Difference between small and large enterprise:-
Basis Small enterprise Large enterprise
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Similarities  Main motive of small organization is
to create high range of profit level.
 They believe in launching new
products with full of creativity by
grabbing market opportunity.
 Large business are also
run their firm for
generating maximum
number of revenue.
 These associations are
also involved in
introducing creative
items at marketplace
for seeking the
attention of distinct
consumers.
Differences  Small business entrepreneurship are
having minimum staff member
because they are having minimum
range of capital.
 Having short term missions and
vision.
 Entrepreneurship of
large business always
having a motive of
hiring maximum
number of employees.
 They are having long
term mission and
vision.
Scalable and social entrepreneurship
Basis Scalable entrepreneurship Social entrepreneurship
Similarities  These associations are based on
software applications that
involves, Facebook, twitter,
Instagram, etc.
 Main target of scalable
entrepreneurship is to generate
profits and maximize their sales.
 Entrepreneurs of these
organizations promote their
firm on social networking
sites such as, Facebook,
twitter, Instagram, etc.
 The main objective of
entrepreneurs of these
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 They develop opportunities to
enhance their business for future
challenges.
business is to maximize
their level of profits by
fulfilling requirement of
society.
 These associations always
encounter various existing
challenges for acquring best
results in order to raise
future opportunities.
Differences  These entrepreneurs provides all
environmental factors and fulfil
needs of consumers .
 They focus and their leadership
team or their traits and then invest
their funds in business.
 They rely on tangible and
quantifiable measure of
performance which involves,
market shares, financial indicators,
etc.
 Social entrepreneurs focus
on social needs and wants
of individual. They do all
efforts to solve problems
related to social factors.
 They generate funds from
individuals of different
sectors and donates to
charitable institutions
(Sarasvathy and
Venkataraman, 2011).
 These entrepreneurs
measure all social changes
and performance.
Difference and similarity of male and female entrepreneur-
Basis of
comparis
on
Male Female
Similariti
es
 Major reason behind establishment
of male entrepreneur is to gain
 Females are also established
their business for generating
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maximum amount of profit by
satisfying the needs of distinct
customers.
 Follows all the set norms, rules and
regulations set by company law or
corporation act 2001 in order to
smooth functioning of an
organization.
 Right to invest maximum amount
of funds for gaining high level of
profit.
 Ability to take risk.
high range of profits by
fulfilling the needs of
customers.
 They are also liable for
following norms, rules and
provisions set by company
law in order to minimize the
probabilities of fraudulent
activities.
 Same as male, they are also
having the authority to invest
large amount of capital in
their business for generating
high range of benefits (Nga
and Shamuganathan, 2010).
 Capability of risk taking.
Differenc
es
 This business is run, managed,
owned and controlled by a male
person.
 There is absence of any special
category for male businessmen’s in
legitimate bodies.
 On the other hand, this
business is managed or
handled by a female
entrepreneur.
 On contrary to this, female is
having a special category or
some additional rights from
the side of legitimate bodies.
Difference and similarities between manufacturing and trading entrepreneur business;
Basis of
comparison
Manufacturing entrepreneur Trading entrepreneur
Similarities  This type of organization is also
believes in gaining maximum
amount of profits.
 These are also profit
oriented.
 They are also wanted to gain
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 Wanted to acquire current market
opportunities.
 Believes in creating positive
relationship with customers
opportunity.
 They are also believes in
maintaining long term
connection with customers.
Differences  These organizations are engaged
in manufacturing process.
 There is no connection with end
users.
 On the other hand, these
associations are involved in
transferring final products to
the end users.
 Connected with final
customers.
TASK 2
P3 Influence of micro and small business on economy
Micro and small business are playing very crucial in developing economy of a nation by
conducting numerous of activities which are highly beneficial for the success of whole country.
In fact, emergence of small associations are helping in providing best opportunities to the overall
society to develop themselves. In almost 1919, an individual was beginning a small firm selling
surplus groceries at marketplace in East London. However, his first day sale was around £4 by
having a profit of nearly £1. After 90 years this business generates around £50billion per annum
by having almost 472000 employees across the globe and further generate £6000. This business
was named as Tesco plc. This is now considering as top most organization in retail industry.
According to the viewpoint of Mark Hart, it is clearly understood that small business or
mainly micro enterprises are liable for creating number of job in last five years. In fact, small
organizations are consider as backbone of UK economy which helps in creating growth, opening
new markets and emerging job opportunities for various unemployed person. Along with this,
they also encourage motivation across the marketplace by introducing new or unique ideas at
marketplace. However, small firms are really appropriate for UK plc by contributing around
99.9% for businesses (The importance of small businesses in the UK economy, 2015).
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On the other hand, Mark Gouldstone who is a client proposition manager for SMEs at
BSI (British standard institution), states that ; owners of small business sad that if UK stifles
development then influence is far wider due to which small companies are really need a support.
Therefore, as per the research of BSI it has been understood that around half of small business
are not feeling that their organization is operating effectively. Furthermore, this investigation is
supported by findings of RSA which shows that around 55% of small and medium sized
organizations are nor surviving more than five years. Along with this, instead of surviving,
company is also encountering a major problem in their growth. Amongst them, almost two third
that is nearly 63% of owners of small business are saying that its highly difficult in growing
whereas three fifths that is around 61% of owners losing their confidence level. Hence, by
assessing all these facts or figures, UK government realized that small businesses are really
influencing success of economy (The role of SME’s in UK economy, 2012). In fact, growth of
micro and small organization is very much beneficial for overall nation in various manners that
is described as follows-
 Employment – Number of small business owners are not employers- in fact they are
mostly sole traders who work independently for living their livelihood in better manner.
Along with this, few medium sized businesses are providing employment opportunities to
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other unemployed person which helps in raising the living standard of common people.
Additionally, all of them get an opportunity to enhance them which is really affects the
economy of a nation.
 Growth – When it’s about growth, than SMEs are really contributing in larger number
by launching or introducing creative ideas at marketplace. It means, innovation is a major
part of growth because it helps in keeping fresh the markets and promotes competition
amongst competitors. As a result, various other members are also becoming curious to
come up with unique ideas for competing at new emerging markets. Thus, it has been
analysed that around 37% of small business are engaged in innovative activities (The
importance of small businesses in the economy, 2018).
 Industry – By assessing various small and medium size business, it is analysed that retail
sector is considered as one of the most largest industry across the marketplace. On the
other hand, manufacturing, repair of motor vehicles and small firms are seen as heart of
these three economic activities. In fact, almost 46% of revenue for SMEs are comes from
these businesses and out of every 20 organizations one of them is definitely part of these
categories.
Throughout the analysis, it has been understood that SMEs are really a vital part of
Britain’s core industries and identified that how much they all are indispensable for the growth
of economy. Additionally, contributions of small firms are really necessary for economy health
and UK’s recent financial climate is considered as an ideal facilitator for small and start-up
business growth.
P4 Significant of small business and start-ups in the growth of social economy after Brexit
UK voted for leaving the EU in Referendum which was held on 23rd June, 2016. After
that, it has been assessed that UK economy get minimized and declining the rate of growth
which comes at 0.3% and coming at more worse. However, it’s natural that SME will definitely
affected by GDP rate of UK because they are act as lifeblood for whole nation. Thus, declining
in economy automatically affects the large business in various terms such as; overall activity of
an organization as well as influence the consumer buying behaviour. Therefore, it has been
understood that Brexit act as a major obstacle in the success of various businesses because it
affects entire corporate world in various manner such as; shortage of funds, ups and downs in
emerging markets.
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However, in UK there are almost 5.7m SMEs which are having account for over 99% in
private sector organizations and almost 60% of entire UK private sector employment. Along with
this, almost 73% of net private sector job creating is based on small and medium size firms.
Therefore, in this situation, small firms and new start-ups are really highly indispensable for the
success of overall economy by taking immediate initiatives. Hence, small businesses and start-
ups are positively contributing to the economy of a nation of coming up with unique ideas at
marketplace. Along with this, they are also encouraging competition at market for promoting
other competitors. One of the best examples for this was; digital/creativity such as Uber, Airbnd
or funding circle who just shocked entire industry by creating a new challenging or ground of
competition in business market. On the other hand, financial institution is one of the major
example because in 2008 financial crisis affects the whole finance industry in various manner.
As a result, they are now very much flourishing by coming up with new solutions, more creative
ideas and launching more or more opportunities for every individual in order to access funds.
Moreover, governing bodies was also plays a crucial role by enacting smart provisions and tax
structures which helps new start-ups and small firms while running their business entities.
Additionally, aids in controlling the possibilities of fraudulent activities that might incurred at
marketplace (Gorgievski, Ascalon and Stephan, 2011). Apart from this some of the major factors
shows that SMEs are really beneficial for success of UK economy and significant also are
discussed below-
“Initially, aids in creating job opportunities because in UK alone almost 99.3% jobs are
created by private sector business in the beginning of 2016 whereas 99.9% were created by small
or medium sized organization. Basically, overall employment in SMEs was almost 15.7million
from which 60% is all from private sector in UK.”
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