Entrepreneurship & Small Business Management | SME'S

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
1 Different types of the entrepreneurial ventures and their relation with typologies of
entrepreneurship...........................................................................................................................3
2 Differences and similarity between entrepreneurial ventures...................................................4
3 Impact of the small and micro bushiness on the economic growth..........................................6
4 Importance of the small business start ups in the social economy...........................................7
ACTIVITY 2....................................................................................................................................8
5 Characteristics traits and skills of the successful entrepreneurs...............................................8
6 Entrepreneurial personality traits and mindset that reflect on their personality.......................9
7 Background and experience can hinder or foster entrepreneurship........................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship can be referred as the ability and capacity to develop and manage the a
new business venture in order to provide the best products to the customers with having the risk
in the direction to make more profit. This entrepreneurship is consisted with the labour, law,
resources, capital and land to build and start the new business. This report is going to be describe
the different types of the entrepreneurial ventures and the typologies of the entrepreneurship, and
how they relate to each other. This report also going to be analysed the impact of the small and
medium-sized business on the economy of the UK, how they help to increase the economy of the
country. Further more the importance of the small and medium-sized business is also going to be
described. Different characteristics and skills of the successful entrepreneurs also will be
identified that make them different from the other entrepreneurs. Further more different aspects
will be explained that motivate the entrepreneurs and their mindset towards to become the
entrepreneur. Lastly with the help of the background and experience of the successful
entrepreneur hinder and foster entrepreneurship, how their background and experience affect
them.
ACTIVITY 1
1 Different types of the entrepreneurial
ventures and their relation with
typologies of entrepreneurship
Entrepreneurship mean to a process
which is being done in order to create a new
business ventures with bearing the number
of risks in order to make the profit, that can
help them to bring more resources in their
enterprise.
Whereas entrepreneurs refer to that
person which identify the need of the market
place and then work to fulfil it by creating
the new business start-ups (Holmes and
Schaper, 2018).
Typologies of the entrepreneur
Small business – These are the
business which are nit being drive to earn
the more profit, rather they are operated in
order to make living standards and support
their family. These kinds of the business are
funded by the friends or family or from the
small bank loan. In this hairdresser, grocery
stores, carpenter etc. are included.
Social good organization - These
are the enterprise which are being droved in
order to provide the products and services to

fill and complete the social needs of the
people. Ultimate goal of this enterprise is to
make their society better not to earn profit.
Large business – These kinds of the
business enterprise ave the long term goal to
sustain their business in the market. This has
the goal to earn more profit and for this they
continuously try to innovation in their
products and services (Heinonen and
Vainio-Korhonen, 2018). Like large
corporation, Microsoft, Google etc.
Scalable start-ups – These kinds of
the start-ups are the young and focused,
which have the potential to develop the
market by dramatically change in t he
existing market by providing innovative
ideas and services.
Different types of entrepreneurial
ventures
Survival firm — In this small firms
are binge consider, as they always survive to
sustain rather than to compete in the market.
This firm has the goals to sustain their
business and support their family.
Lifestyle business – Lifestyles are
the business which are being operated in
order to attain only the particular level of the
profit in order to enjoy the lifestyle by
providing the lifestyle goods and services.
Public sector entrepreneurship —
Public sector entrepreneurship are those
which make innovative policies and product
for the public. That helps to generate the
great economic value in the country
(Kloepfer and Castrogiovanni, 2018).
Aggressive growth firms —
Aggressive growth firms can be referred as
the firms which are being growing
continuously and attain the high growth by
their innovative services and products which
are not able to produce by the competitors.
2 Differences and similarity between
entrepreneurial ventures
These entrepreneurship venture share
the similarities but also have the difference
in them.
Similarities between entrepreneurial
ventures
 One of the similarities in the
entrepreneurial venture is that all are
being derived and run by the strong
willed entrepreneurs. They have
strong skilled entrepreneur that make
the strategies and policies to being
the more resource and attain the
objective of their entrepreneurship.
 Whether it is aggressive growth firm,
survival firm or other ventures, all a
re being created and develop by
funding from the bank or from the
investor that help them to be

sustained in the market (Pergelova
and et.al., 2019).
 Public sector entrepreneurship,
lifestyle firm and aggressive growth
firm, all are being started with
having the creative ideas in their
products and services, which are not
being exist in the market.
 Like aggressive growth business gain
the high growth in the market by
continuous innovation in their
products and services, unlike public
sector entrepreneurship also make
innovative policies and products for
the public that give them hike in
their growth.
Difference between entrepreneurial ventures
Survival Life Style Public sector
entrepreneurshi
p
Aggressive
growth
Type This considers under
the small business
entrepreneurs.
This can be refer
under the scalable
entrepreneur.
Some public
sector
entrepreneur
comes under the
social ventures
that provide the
products and
services for the
society.
This venture
is being
considered as
the large
scale
enterprise.
Growth This is not able to
grow more but has
the limited access in
the local market
(Barnard, Pittz and
Vanevenhoven,
2019).
This lifestyle
ventures also
have the limited
growth area in the
country.
These type of the
ventures only
operated to
improve the
society, as it has
large growth
area.
As its name
shows, it is
continuously
growing
enterprise not
only in UK
but cross
border as

well.
Purpose Main purpose is to
support their family.
This has the
purpose to gain
profit in limited
access area.
Main aim is to
make
improvement in
the society and
living standard.
These are
being run
only to make
profit in the
market.
Opportun
ities
It has low
opportunities as it
themselves survive
to be sustain.
This also has
limited
opportunities in
the market
because of limited
access.
This has a great
opportunity as it
helps to improve
the society.
This has the
huge and
wide
opportunities
in the global
market as
well, which
contribute a
lot to
economic
growth
(Shelton and
Minniti,
2018).
3 Impact of the small and micro bushiness
on the economic growth
Micro and small business play the
vital role to increase the economy of the UK
country. In this small business enterprise
play the significant role in the growth of the
economy, in this one opf the important
contribution to develop the more job
opportunities in the country. As according to
the data of the year 2016, 99.3% of the job
were created by the private sectors and 99.9
% were from the small and medium sized
enterprise (Essential Facts You Should
Know about SMEs in the UK, 2019). In this
year of 2016 total economic development by
the job creation was 15.7 million which was
60% of the al the private sector employment
in the UK. In the there are 25 to 27 million
small business are operated, which was the
60 to 80% of all the UK jobs.

In the term of the innovation, start
ups and small business play also great role
to develop the innovative products in the
UK. In this competition ion the market has
significant role that help to generate the new
way of doing the business. In this best
examples are digital innovation i.e. Uber,
Funding circle or Airbnb, which created one
of the most innovative digital operation.
This has contributed a lot to the economic
development of the UK country.
As in the term of the growth, small
business and start-ups accounted for the
highest volume of the contribution, which is
99.5% of the business. As the SMEs is doing
great in the development of the economy of
the UK and also plan to expand its business
by 50% of the SMES in the next upcoming
years.
4 Importance of the small business start ups
in the social economy
Small business and start-up play the
important role in the growth of the social
economy of the UK. As they help to
increase the employment rate in the country,
Provide different innovative products and
service their local people and many more
importances are given below:
Employment and job creation – One of the
greatest impact and importance of the small
business and business start-ups is that, they
help to create the more employment in the
country for the people. According to the
Department of Business innovation and
skill, small business and tart ups provide the
15.6 million jobs to the people which is 60%
of total private sector employment. It has
Illustration 1: Impact of SMEs in economic growth of UK
(Essential Facts You Should Know about SMEs in the UK, 2019)

been predicted that, in next up coming years
250,000 new jobs are also being provided.
This will help to increase the social
economy of the country (Farhat and et.al.,
2018).
Income and profit – Along with providing
the jobs to the people of the country, it also
helps to increase their income and profit.
This will help people to gain more salary, so
that they can fulfil their social needs and
also can improve their living standard. In
this way small business and start-ups play
the important role to social economic growth
of the country.
Playing leading role in Women's
representation — In the year of 2014 there
were around 18% female led in the UK
SMEs, and at the end of the 2015 at FTSE
around 10% of the executive directors are
female. In the UK there are almost 1.5
million women are self employed, which
helps to represent the strong role in the
country. Due to this empowerment, now
women are starting up their business and
contribute in high amount of the UK
economic growth.
Meeting the social purpose – Another on
of the main importance of small a business
and start ups are that, they help to meet the
social needs of the people. As there are
many small business and start-ups are being
created with having the objective to make
their society better by their products and
services. This help the society to make
improvement in their living standard and
and make their society better as comparison
to others (Brush and et.al., 2018).
Local improvement – All the small
business and some start-ups are help to
providing the best employment to their local
people as they are operated locally. Small
business are started with the aim to support
their family. This helps to improve their
living standard. As small businesses and
start ups provide the services and products
to their social needs, this improve the local
environment.

ACTIVITY 2
5 Characteristics traits and skills of the successful entrepreneurs
There are many numbers of characteristic traits and skills of a successful entrepreneur
that make them different from the manager. These are as mention below:
Creative — One of the characteristic of a successful entrepreneur is that, they are
creative. They always try to do creative changes in their strategies and policies regarding the
products that they are gong to be sold to their customers (Goldsby and et.al., 2018). On the other
side, managers do not posses this skills because their main work is to manage the work at the
premises and they only define the work while entrepreneur develop creative strategies to
complete the defined aim. Therefore, this skills make the difference between manager and
entrepreneurs.
Clarity of the purpose — A successful entrepreneur has the clarity of their purpose
regarding the business. With this clarity, they can easily understand the role of their employees n
their enterprise. This help an entrepreneur to attain the target. This clarity of all the purpose and
operations in the organisation makes a wide difference between an entrepreneur and manager.
An open-minded — A successful entrepreneur is open-minded, they always ready to take
challenges and make any improvement that can help their business. This open mind to make any
changes, accept any challenge make a successful entrepreneur different and on the other side, the
managers are not open mind and they mainly complete the assigned work.
Future oriented – A successful entrepreneur makes all its business strategies on the basis
of the future. They are future oriented they make their business planing for the future so that,
they can take advantage for the opportunities and can make changes in their strategies as
according to the future risk. This make the successful and make different from others. This skill
is completely different from the managers because they only implement strategies to attain the
defined aim while entrepreneurs have deep vision through which they think for company's
future.
Skills of a successful entrepreneur:
Risk taking skills – One of the main ability in which an entrepreneur take risk in order to
attain the defined objectives and this also make a successful entrepreneur different from others.
On the other side, manager do not posses risk taking skill because this power is beyond their
limit. They only manages the things and get the work completed on time.

Strategic thinking — A successful entrepreneur always ready with their strategies to
take advantage of all the opportunities avail in the market and also to resolve the future risk. That
help to operate their business smoothly and on the other side, managers do not posses the same
because their main work is to manage the entire and daily activity but entrepreneur implement
strategies which may be used by manager. This make difference between a manager and
entrepreneurs.
Networking — Another one of the main skill is networking skill. In order have contact
and relation with the investors, clients, customers, suppliers this networking skill help them so
that they can help their enterprise to grow more. But managers only work in the premises and as
a result, they did not have strong network, so this skill make entrepreneurs different from
managers.
6 Entrepreneurial personality traits and mindset that reflect on their personality
There are different mindsets of a successful entrepreneur that motivate them to do their
entrepreneurship successfully in the market. These are:
Reach out the customers first — One of the mindset of an entrepreneur is that they always give
the first priority to their customers and in any situation they reach out the customers first. This
priority to reach out the customers motivate them as they are the key elements of the business.
Find new market — New market opportunities always motivate the entrepreneurs to and set
their mind to expand their business by finding new market (Kreiser and et.al., 2019). In this
direction they always look for a target market, and this motivates them as well to make more
effective strategies.
Use networking to build business — Strong networking in the market also set the mind of the
entrepreneur an also motivate them. As strong networking motivate them by having the number
of investor, suppliers as they can help entrepreneur to operate and expend their business.
In this the OCEAN model will help to understand the mindset of an entrepreneur that
motivate them. This is the five factor model which include the five factors. These factors are:
Openness — as according to this, entrepreneur are always ready to make improvement and take
challenges, they have willingness to try new creating activity that can help their business to grow
more and attract more numbers of customers.

Conscientiousness – As according to this, an entrepreneur is very conscious about their actions
that they are gong to be performed. They are aware regarding their actions and responsibility in
the business. This make them goal oriented, and motivate them to attain that goal.
Extraversion – Entrepreneurs have effective communication skill and are more talkative and
social that help them to make the strong networking in the market. And this networking mindset
and social behaviour set their mind and motivate them.
Agreeableness — This mindset of the individual make the entrepreneur friendly and cooperative
towards the others and to their staff and employees. Because of this trait entrepreneur is more
likeable by their employees. This trait motivates them a lot.
Neuroticism – This trait explains the emotional ability of the entrepreneur. Entrepreneur with
high neuroticism are more fearful and can take any challenge with having any fear, this motivate
them to be fearless and take challenges.
7 Background and experience can hinder or foster entrepreneurship
In order to understand the hinder foster by the background and experience of the
entrepreneur, example of Bill Gates and will be considered.
Background and experience of Bill gates
Bill gates was born on 28 October 1955 in Seattle, Washington. He was grown up in
upper middle class family, where the atmosphere of the family was close and warm. Three
children, his elder and older sister were encouraged him to be competitive and strive for the
excellence (Damke Junior and et.al., 2018).
Gates liked to read books, like to spend many time over the references books like
encyclopedia and many more. He was good at study in school. Bill gates was done his graduation
from lakeside in 1973. After this, in 1975 Bill gates leave his collage to attain the goal of a
businessman, of a company Microsoft with his partner Allen. Gates and Allen formed a
Microsoft which is combination of Micro computers and software. In 1985 when WINDOWS
was released in the market, it was not exactly as expected (Bill Gates, 2019). Then Gates started
to make improvement and in 1993, WINDOWS was selling with rate of 1 million copies per
month.

This Passion of Bill gates towards his work, support from the family background
encouraged him towards to their work and become the one of the most successful entrepreneur in
the world.
Background and experience of Larry Page
Larry page was born in 1973 at Michigan. Both Parents of Larry page was computer
expert. This was the biggest reason to studied computer engineer at Stanford university. Where
he met Segey Brin, and then both decided to develop the search engine.
At the time of the collage, research project at Stanford university Larry page and Brin has
created the search engine in their research project which resulted the most popular project and
very useful and named it Google after the mathematical term Googol (Neumeyer and et.al.,
2018). After gaing the $1 million from the family, friends and investors larry page and Brin has
developed thir company in 1998, since Google become the most popular search engine ion the
world.
So, in the case of the Larry Page, family background and their education profession has
affected the most to the larry page to become the computer engineer. Financial condition of the
family helped a lot to launced his company Google. Ll these factors, family background,
profession, financial condition and support motivated them a lot to Larry Page to become most
successful entrepreneur.
CONCLUSION
From the above study it has been concluded that, there are different types of the
entrepreneurial ventures small, large, scalable and any more that play the different roles in the
economic growth and there are different typologies of the entrepreneurship, the share the
similarities in the their ideas to setup the business and having risk and etc. It has also
summarized that small, medium and large business play the great role in the economic growth of
the country, they help to increase the GDP of the country by increasing their profit. These small
and medium business have great importance in the country as they help to increase the
employment rate in the country by giving opportunities to the more people. It has been identified
that different skills and characteristics like money management skill, risk ability etc. that make
an entrepreneur successful and different from others. It has analysed with the help of the
OCEAN model, how they set their mindset. It also been identified that background and work
experience has a great impact on the skills and to become successful entrepreneur in the market.

REFERENCES
Books and Journals
Barnard, A., Pittz, T. and Vanevenhoven, J., 2019. Entrepreneurship education in US community
colleges: a review and analysis. Journal of Small Business and Enterprise
Development. 26(2). pp.190-208.
Brush and et.al., 2018. A gendered look at entrepreneurship ecosystems. Small Business
Economics, pp.1-16.
Damke Junior and et.al., 2018. Strategic configurations and performance: a study in micro and
small business retailers. RAUSP Management Journal. 53(1). pp.11-22.
Farhat and et.al., 2018. New directions in entrepreneurship research with the Kauffman Firm
Survey. Small Business Economics. 50(3). pp.521-532.
Goldsby and et.al., 2018. Social proactiveness and innovation: The impact of stakeholder
salience on corporate entrepreneurship. Journal of Small Business Strategy. 28(2). pp.1-15.
Heinonen, J. and Vainio-Korhonen, K. eds., 2018.Women in business families: from past to
present. Routledge.
Holmes and Schaper, 2018. Small business exposed: the tribes that drive economies. Routledge.
Kloepfer, K. and Castrogiovanni, G.J., 2018. Entrepreneurship: venture creation subprocesses,
subdomains, and interfaces. International Entrepreneurship and Management
Journal. 14(3). pp.681-696.
Kreiser and et.al., 2019. Corporate entrepreneurship strategy: extending our knowledge
boundaries through configuration theory. Small Business Economics, pp.1-20.
Neumeyer and et.al., 2018. Entrepreneurship ecosystems and women entrepreneurs: A social
capital and network approach. Small Business Economics, pp.1-15.
Pergelova and et.al., 2019. Democratizing Entrepreneurship? Digital Technologies and the
Internationalization of Female‐Led SMEs. Journal of Small Business Management. 57(1).
pp.14-39.
Shelton, L.M. and Minniti, M., 2018. Enhancing product market access: Minority
entrepreneurship, status leveraging, and preferential procurement programs. Small Business
Economics. 50(3). pp.481-498.
Online

10 Essential Characteristics of Highly Successful Entrepreneurs.2018.[Online].Available
through<https://www.inc.com/sujan-patel/10-essential-characteristics-of-highly-
successful-.html>
Bill Gates.2019.[Online].Available through<https://www.entrepreneur.com/article/197526>
Entrepreneurial Ventures.2019.[Online].Available
through<http://neverstop.co/wp-content/uploads/2016/02/Types-of-Entrepreneurs.pdf>
Essential Facts You Should Know about SMEs in the UK.2019.[Online].Available
through<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>
Five-Factor Model of Personality.2019.[Online].available
through<https://www.psychologistworld.com/personality/five-factor-model-big-five-
personality>

1