Entrepreneurship and Small Business Management: Types of Ventures, Impact on Economy, and Characteristics of Entrepreneurs

This report covers the characteristics and traits of entrepreneurs and the qualities that make them different from managers. It discusses the types of entrepreneurial ventures, including small business entrepreneurship, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship. The report also explores the impact of micro and small businesses on the economy and the characteristics of successful entrepreneurs.

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 Interpret and access relevant data and statistics to illustrate how micro and small
businesses impact on the economy. ...........................................................................................4
P4 Importance of small business and business start-ups to the growth of the social economy.. 6
TASK 3 ...........................................................................................................................................7
P5 Characteristic of successful entrepreneur and how they are different from other business
manager.......................................................................................................................................7
P6 How aspect of the entrepreneurial personality reflect entrepreneurial motivation and
mindset......................................................................................................................................10
TASK 4 .........................................................................................................................................11
P7 Example by which entrepreneurship can become foster and hinder....................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Entrepreneurship is basically launching or introducing a new small business to earn
profit. It can be defined as the capacity to enhance or develop a new business, manage its
activities and earn high return. The small business or entrepreneurship is generally started after
analysing various things(Kirzner, 2015). These can include- recent trends of the market, need
and demand of the potential customers, availability of competition, etc. if this analysis is not
done than the new enterprise will suffer loss and the resources might not be used in the optimum
manner. The major topics covered in this report are the characteristics and traits of the
entrepreneur and the qualities of the entrepreneur which makes them different from managers in
the organisation.
TASK 1
P1 Types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
An entrepreneur is an individual who establish and runs a small business and bears all the
risk and reward of the venture. Thus, entrepreneurship is the creation of an innovation economic
organisation for the purpose of gain or growth under the condition risk or uncertainty. There are
some common elements which every entrepreneur implies i.e. creativity and innovation,
gathering information, earning profit under risk and uncertainty. Entrepreneurs combines the
factors of production (such as land, labour, capital) to try and create a new profitable business
venture. Along with this, they themselves an important factor of production and an essential
component of a functioning free market economy(Julien, 2018). An entrepreneurial venture is
classified into different types which is described below:
 Small Business Entrepreneurship: They are an independently owned and operated
for earning profit to feed the family, not to take over or capture the industry. Along
with this, they mainly deal or operate restaurants, retail stores, construction firms
and agriculture for this they hire local employees or family and raise their fund for
venture capital through friends, family, bank loans.
 Scalable Start-up Entrepreneurship: In this entrepreneur are young, innovation-
focused with the potential to create new market or bring changes in existing market
through proprietary and technology based products or services. In this category of
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business they produce medical devices, developing B2B software or apps. They
attract the investment from equally financial investors like venture capital.
 Large company Entrepreneurship: This type of company always seek for opportunity
to grow with innovative technology or ideas and offer variant product based on
customer taste and preferences in a new geographical region. They mainly
corporations e.g.: General trade, general motors etc. and their capital providers are
revenue, tax creditors, subsidiaries.
 Social Entrepreneurship: Under this category, an entrepreneurs are innovators who
mainly concentrated on creating products and services which solve social needs and
problems. But unlike scalable start- up their main motive is to make the world a
better place, not to capture the market share or create wealth. Along with this, they
may be non- profit, profit an hybrid and for raising fund they mainly depend upon
the type and size of company who can run the entire business function.
Typology of entrepreneurship and their relation with entrepreneurial venture.
 Imitators: Imitators are those category entrepreneur who copy the business ideas from
others and do the improvement or modification upon them. They always seek for ways or
platforms to make the particular product more better in order to gain competitive
advantage among industry(Henderson and Weiler, 2010). This typology is related with
scaleable enterprise because as imitators, they are analyse market and copies business
idea as others and come with sometime new related to it.
 Researcher: Researcher entrepreneur are the one who takes an effort to gather relevant
information even after having the idea about particular business operation. They usually
takes lots of time to launch product by making effective decisions in order to get the
strong foundation of understanding. Researcher typology is related with large scale
entrepreneurship because both of them evaluate different options available in market and
then come with new and relevant business ideas.
 Male Entrepreneur: Men entrepreneur are the one who always tend to focus on economic
reasons for business ownership and they always ready to adapt challenges in order to
expand the business and increase profitability(Light, 2011). Male typology is related
with small scale business because males works to identify new business idea and start
business at small level, hence they both are related.
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 Female Entrepreneur: Female entrepreneur always seek to make some kind of social
contribution and they mainly look for product quality but they resist themselves from
facing challenges or risk of business. Female typology works for the social upliftment,
hence this is related with social entrepreneurship. For instance: female worker is working
to educate girl about sewing , then this assist in improving living standards and able to
earn livelihood.
P2 Similarities and differences between entrepreneurial ventures
An entrepreneur is an individual who establish or set up the business on financial risk in
the hope of gaining or earning profit. There are various types of entrepreneurship like small
business, large business, social entrepreneur etc. which has their own responsibilities, roles and
features which differ them from each other(Graves and Luciano, 2013). Some of the similarities
and differences between entrepreneurial ventures are as follows:
Similarities of small and large business.
These two types of entrepreneurship has their own unique role yet there is some
similarities among them is that both of their main aim is to earn profit(Mueller, 2011). They
mainly focused in providing quality of product in order to improve the satisfaction level and
attain the trust of customers. Along with this, both seek for enormous platforms to perform their
potentiality or capability by adopting innovative technology or creative ideas in order to
accomplish profit maximisation in an effective and efficient manner.
Difference between small and large business
Basis Small Business Large Business
Working Culture Under this owner define the
policies or procedures and
introduce in the company
culture. Thus, it is the
attractive feature that they
don't have to follow the rules
which is established by others.
In large business they have
their well defined policies,
procedures, rules, norms,
standards for how the members
or employees of a company
has to interact with each other.
Employees It contain less than 250 of
employees in business
It contains at least 500
employees for functioning the
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operation. business functions.
Meaning Their mainly seeks to feed the
family not to take over the
industry.
Their key element is to gain
profit and capture the market
in order to gain competitive
advantage.
Similarities of Social and Scalable Start-up Entrepreneurship
Both of these entrepreneur has their own purpose, characteristics which varies form each
other but both are linked in some features. Both are flexible in nature as they make use of
available resources by adopting innovative or creative technology in order to introduce new
product or create changes in the existing market(Naudé, 2014). Furthermore, the motive of both
the entrepreneur is to earn profit maximisation.
Difference between Social and Start-up Entrepreneurship
Basis Social Entrepreneurship Scalable Start-up
Motive In this their main goal is to
solve and provide social needs
or problems not to earn wealth
to capture market.
Under this , their main
purpose is to earn high level of
profitability and gain
competitive advantage.
Achievement Social entrepreneurship has the
potentiality to create
significant social impact and
improves the standard of living
of society or community.
Scalable start-up has the
capability to produce effective
or impressive revenue, job or
employment and also has great
impact on the economy of
country.
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TASK 2
P3 Interpret and access relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Small business entrepreneur are the one who run or operate their business independently
and whose main motive is to profit earning(Fairlie, 2013). One of their main propose or goal is
that rather than making profit but to feed the family members. They mainly deal into travel
agency, retail shops , consultants etc. for which they hire local employees or family members.
Small business are considered as important factor to stimulate economic growth of community as
well as country by providing enormous employment opportunities to people. Along with this
they always make use of opportunities in order to perform their potentiality and can improve the
living standard of community.
Impact of small business on UK economy
Small business has grater influence on UK economy in the aspect of turnover, providing
enormous employment to community and improve the overall performance of business. The
statistical data of impact of small business on UK economy which is described below.
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From the above shown graph shows that small business is expanding its business which
create positive impact on UK economy(El Ebrashi, 2013). In the year of 2016, there was a
establishment of 5.5 million private sector business i.e. it is increased by 97,000 since 2015. One
of the main reason behind the success of small business in UK is that the stability of government
which influence them to adopt innovative technology and provide employment which improves
the living standard of community(Sahut and Peris-Ortiz, 2014). In case of fund raising for small
business, government was aware about the risk or uncertainty in establishing their business yet
small business plays a vital role in the expansion of UK economy.
(Source: Impact of SME on employment rate, 2019)
From the above graph, it is interpreted that with increasing number of small scale of
organisations, there is improvement in percentage of employment rate in society of UK. Small
scale organisation covers employment rate by 23%. This gives social developemnt to society
because people have employment and this improves GDP of UK.
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Illustration 1: Impact of SME on employment rate

(Source: Improvement in GDP, 2018)
There are change in GDP rate as well as compared to past years. As per shown picture, in
2018 GDP rate was negative but with increase in number of small business, after 2010 GDP rate
of UK become positive. This makes positive impact on social development of UK as well.
One of the main and foremost element which small business performed is that they
provided employment opportunities to community or people. In UK itself, they account for
99.3% from all private sector business in the starting of 2016. Total employment rate in Small
Business Enterprise was 15.7 million, in that 60% of all private sector employment in UK. On
the other hand, they mainly contribute or dedicated to acquire innovation and creative technology
which improves the productivity and enhance the growth of country's economy. It not only
increase or enhance the economic sector but it also improved the financial sector of UK
government due to innovation. Thus, in current scenario UK financial sector is enlarging
effectively which reducing the turnover rate from private sector and enhancing the business of
UK. (https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-
in-the-uk)
As per my opinion, small scale organisations are operated through males and females at
home level. Hence there is improvement in their living standard,. There is reduction in social end
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Illustration 2: Improvement in GDP

other ethical issues in society because majority of people have employment and creates
education among people, which improves living standards of people residing in society. Local
people have knowledge about different brands and this boost economic growth of UK.
P4 Importance of small business and business start-ups to the growth of the social economy.
Small business plays a vital role in the expansion or growth of company. There are the
some aspects in which small business contribute their best effort i.e. providing people the
opportunity to accomplish financial interdependence, encourage innovation and create
employment opportunity (Edelman and Yli–Renko, 2010). Importance of small scale business is
economic growth of country because there is tax income with government of UK, hence
infrastructure of country gets improved. There are amny manufacturing units through which
individuals are ready to work and get remunerations for satisfaction of their routine basic needs.
When people are working they have knowledge about external environment and this boosts
education among them regarding external changes happening in society. People at UK are able to
improve their skills with launching their own business venture through which they can be
identified at international level.
By this, it improves the potentiality and living standard of community and it directly
provide the positive affect on country's economy(Slotte–Kock and Coviello, 2010). Small
business not only improves the economic impact but it also flourishes the financial sector with
new solutions an d innovative ideas bringing more opportunities to people and making fund
accessible to many more. However, at the same time it stimulate the growth in local, regional
and national level which are as follows:
 Local level: Small business has great contribution towards the local economy is that
as they enormous employment opportunity and improves the living standard of
community as it raised by 2.5 million people got the platform of employment. Along
with this, it build better relationship between supplier, customer and employees as it
mainly focused on adaptability and flexibility which makes UK business more
effective and efficient. (http://businesscasestudies.co.uk/nfte-uk/the-importance-of-
entrepreneurship-in-small-businesses/the-importance-and-benefits-of-small-
businesses-today.html)
 Regional level: Small business has an integral role in regional level is that they
increased the income of people and provide enough opportunity to community to
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grow. Apart from this, they give the importance in building better relationship among
society and industries in terms of providing education, employment opportunity and
raise the income level of people which improve their life style.
 National level: Small business plays an integral role in the improvement of
productivity of economy in national level(Drucker, 2014). They enhance the growth
of private sector and public sector and encourage them to optimum utilisation of
resources in order to obtain profit maximisation. By this it enrich the GDP level and
enable the country to provide employment in order to reduce the poverty. Along with
this, it enable the business to stand firm among competitors by encouraging them to
adapt innovative technology in order to gain competitive advantage(Stokes, Wilson
and Wilson, 2010).
Thus, small business is an key element for success in national, regional and local level as
it provide employment opportunity and raise the standard of people as well as country's
economy.
TASK 3
P5 Characteristic of successful entrepreneur and how they are different from other business
manager.
An entrepreneur is a person who invest his time and money with a high level of risk to start a
business with a anticipation that in return the business provide him more returns. A manager is a
person who use his skill and technique to manage and administrate the business. For this there is
a comparison that show how a entrepreneur is different from manager.
Characteristic of Peter Jones and Joanne Rowling
Long-sightedness- Peter Jones has a wider vision from young age(Storey, 2016). In small
age Peter founded his interest in business. So he combined his vision and interest to start his own
business. While a manager has not so much wider vision. While manager sets targets for
achieving short term business aims and objectives. Entrepreneur thinks for long term resistance
in industry, hence this makes them different from managers.
Commitment- Peter believe that a person has to put more and more efforts until he can
achieve his commitment while a manager can commit his words but don't put too much efforts.
Peter was committed towards launching their business venture and market different strategies
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through which they can analyse best option to give best. While managers makes strategies to
give best avoiding future prospectives. Hence entrepreneurs are different from managers in
context of commitment.
Hard working- Joanne Rowling had believe in struggle after completion of her education
she was jobless and pass her life on government income but she believe in persistence and
continued her hard work that resulted her to become other person's inspiration while a manager
cannot delay for success and to speed up his growth they can switch for another job or industry.
Fear from failure- For a person it is not so easy to face rejection. Joanne Rowling told
that do the work that really matter for you. While a manager can change his plan and strategy
when goals of company are not achieved. Manager make strategies to avoid failure, while
Joanne Rowling make policies through which they can performance activities effectively
irrespective of failure. They take failure as positive aspects and start working from initial.
Skills of Peter Jones and Joanne Rowling
Pro- active approach- Peter has a skill to take action at a better timing according to Jones
it is compulsory to take decision at perfect time like when to enter in a market and what are the
factors that can became a barrier(Dana, 2018).. While a manager cannot take risk to take
decision at the right time.
Life long learning- The another skill of Peter he always believe in learning from his small
age Like when Peter start to play tennis he found that how the business model of tennis work.
While a manager only learn and develop new method to perform his duty.
Working in dynamic environment- Joanne Rowling believed to make a career where a
person can achieve his success surely. Like Joanne Rowling accept her fault work and change
her style of work to achieve his success while a manager cannot change his way to do the task
that is reason that a entrepreneur are more successful. Joanne Rowling is ready to accept new
changes happening in environment, while managers are ready to accept changes which are
happening in society. This makes them to work in regular manner as specified earlier which does
not new outcome. While Joanne Rowling are opposite to it.
Other skill that has been continue by Joanne Rowling is that she believe that a person has
to develop himself for behavioural as well as physical like to practice in a particular work but a
manager can develop himself only for a pre-decided work or task.
Traits of Peter Jones and Joanne Rowling
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Risk taker- Joanne Rowling is risk taker through which he is able to come with new idea
of launching business. While managers avoids risk, they do not appreciate team mates to work
with new and innovative approaches. Hence this makes Joanne Rowling different from
managers.
Passionate- This is the important trait for Peter Jones with the help of which he is able to
launch his business idea among society. He work hard abiding barriers. While managers do not
work dedicatedly due to which in case of failure, they tries to get safest approach for achieving
targets.
Hence it is concluded that entrepreneurs are different in context of characteristics, skills,
traits. Entrepreneurs achieve targets with working hard and giving best out of relevant skills. As
per change in market trends, entrepreneurs are ready to learn new skills and techniques which
assist to be competent in industry.
P6 How aspect of the entrepreneurial personality reflect entrepreneurial motivation and mindset.
Entrepreneur are totally different from their employees, manager and other support staff they are
more risk taker and more confident. Entrepreneur also do extra circular activities that can help
them to find more opportunity in their business. In these OCEAN model is applied to understand
the mindset of entrepreneurs first entrepreneur is Peter Jones who has their business in different
industry like telecommunication, property etc. and other is Joanne Rowling she is a film
producer, screen writer and a novelist.
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(Sources: Big Five personality traits, 2019)
Openness- it is known as the imagination of a person which can tell that how much
creativity does the person have with them. Entrepreneur are always open for bear heavy risk and
always open to the world to change themselves as per the market trend moves. As openness help
the entrepreneur to adopt change quickly. Peter Jones always open to the world by find of more
opportunities to go into different industry like Peter started his business in sports and after some
years he entered in infotech industry. Afterwards where Peter find the opportunities he made
investment in those industry(Bosma and et. al., 2012).
Conscientiousness- it is contain as both leadership and management trait. Under
consistency a plan is developed and then organise its process and then it will be follow by the
company as it will be done easily by both entrepreneur and manager but the little difference is
that an entrepreneur mind can do it with creativity while manager follow the rules to do them.
Example – JK Rowling write the story of Harry Potter with such a creativity that it is famous all
over the world by it book and movie also.
Extroversion- are those people who have charming personality and they behaviour is
bold they live a social life by exploring themselves in group sittings. The entrepreneur have such
a personality they create groups and lead them to achieve the goals of their company. Like peter
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Illustration 3: Big Five personality traits

jones went to play tennis at his young age but Peter extroversion personality help them to create
a tennis group and later peter started his own school of tennis.
Agreeableness- help a person to enable a entrepreneur to get interact with many people.
This help a businessman to develop a positive image in the society as a good listener. Sometimes
by these enterpreneur can get idea for invest in a new and growing business. like Peter Jones
start a tv program named as Dragons Den in which small entrepreneurs explain their business
idea to the venture capitalist so they get financial support from them for their business.
Neutrality- There are possibilities of success as well as failure in case of entrepreneurial
life. Hence entrepreneur should be neutral in case of happiness and sorrow. This assit in sharing
their view with other parties.
With the help of these aspects, there is improvement in personality of individuals and
they are able to achieve set objectives. When individuals is agree to accept changes, then they are
able to understand whet is important and significant for their career and get improvement in their
career. It is important to have skills for communicating business idea with confidence to create
awareness among society. Hence techniques of OCEAN model entrepreneur is motivated and
able to give idea about their mind set to others.
TASK 4
P7 Example by which entrepreneurship can become foster and hinder.
In business there are always up and down that can be change as per trend and market moves.
Every business industry is very dynamic they are regular changes in demand of customer, price
of the product etc. so each entrepreneur have to face up and down in his business. There are
some example which show that how a entrepreneur handle those difficult situation.
Background- Financial background of Peter Jones is strong, hence while starting and
thinking of business idea. Here are different sources through which business can be launched.
Hence this is hinder for entrepreneurship career of Peter Jones. So he had a dream from his little
age to open a venture so at the age sixteen he started to sell computer under his own brand name
and in age of twenty peter opened a cocktail bar which distract him from his computer business
that made a huge loss but the positive attitude of Peter did not stop him to achieve the dream of
successful entrepreneur so in 1998 Peter invested in phones business which made him a
successful entrepreneur of present era(Austin, Stevenson and Wei-Skillern, 2012).
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But in acse of Jk Rowling, he belongs to middle class family so familiy does not suport
for business ideas. This is hinder for him to complete business dream and achieve aims and
objectives in life.
Education- Education background of Jk Rowlingis good he was graduate and having
experience in corporate sector also. So this is hinder for Jk Rowling as he is able to launch series
of harry potter. Jk Rowling had completed his graduation but to find a job Jk rowling had to wait
for seven years. As Rowling was a novelist and story writer so rowling approached too many
procedure and explained her story but nobody can show interest in those story in a continue
interval rowling faced twelve rejection but due to self confidence and commitment and by use of
creativity at last Rowling is known as a great writer of a vision serial named as Harry Potter. But
educational background of Peter is not good, he has not complete this graduation because of job
purpose. Hence this is hinder for him to get knowledge about current market trends.
Experience- Perter have experience in business lie from the age of 16, hence he is able to
get in contact with external parties such as suppliers, etc. this is foster for entrepreneurial growth
of Perter. While Jk Rowling have no knowledge about market, so this is hinder for growth and
development of business ideas, as he does not have knowledge about market trends and dealing
with external parties such as sources of finance.
CONCLUSION
From the above given report it has been concluded that it is the duty of the entrepreneur
to manage the operations and activities of the newly introduced business. The managers of the
organisation are very different from the entrepreneurs. As they help in enhancing and improving
the growth of the business. If the entrepreneurs wants their business to be successful than better
plans can be made. As by doing this the small business will be able to increases its profitability.
So entrepreneurs must continuously try to introduce new and better plans for the future.
Managers of the organisation have a different way of working as compared to the entrepreneurs.
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REFERENCES
Books and Journals
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Bosma, N., and et. al., 2012. Entrepreneurship and role models. Journal of Economic
Psychology. 33(2). pp.410-424.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Edelman, L. and Yli–Renko, H., 2010. The impact of environment and entrepreneurial
perceptions on venture-creation efforts: Bridging the discovery and creation views of
entrepreneurship. Entrepreneurship Theory and Practice. 34(5). pp.833-856.
El Ebrashi, R., 2013. Social entrepreneurship theory and sustainable social impact. Social
Responsibility Journal. 9(2). pp.188-209.
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Economics & Management Strategy. 22(2). pp.207-231.
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Light, P.C., 2011. The search for social entrepreneurship. Strategic Direction. 27(6).
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Naudé, W., 2014. Entrepreneurship and economic development. International Development.
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Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Slotte–Kock, S. and Coviello, N., 2010. Entrepreneurship research on network processes: A
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Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
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Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
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