Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses different types of entrepreneurial ventures, such as micro-entrepreneurial ventures, small ventures, large enterprises, and social entrepreneurship. It also explores the characteristics, traits, and skills of successful entrepreneurs, highlighting the differences between entrepreneurs and business managers. Additionally, the document examines how background and experience can either hinder or foster entrepreneurship. Examples of successful entrepreneurs, such as James Dyson, Peter Jones, and Jane Wurwand, are provided to illustrate these concepts.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

PROJECT 1
P1
Entrepreneur ventures are also defined as a firm that focuses on innovation as well as
opportunism to produce social and economic value. Entrepreneurial ventures are considered as
the entities that performs various functions of launching business, functioning and designing that
can be owned through entrepreneur. Some of entrepreneurial ventures are given below
Micro-entrepreneurial ventures= These are consider as one of entity that are related to the
small business as the only differentiate is that they focuses on innovative products and also have
minimum no of the staff members. For example 10 number of employees. They are barely
profitable but at the same time they only makes money for living as well as support their
families.
Small ventures – these are the firms that are linked to the small business. They have more
number of employees than micro-enterprise but less than large enterprise. Here, a belief is
developed that World can be changed. (Monitor,2016). Funding can be come from venture
capitalist as well as hire the best people. They also make up a small fees due to outsize and
capital returns. For example Instagram
Large enterprise= These are the entities that focuses on the large number of the staff members
and also grows daily by innovating new products as well as services and many more. New
products are also developed so that they can meet the changing demands of the customer. Such
as Microsoft ,Google and many more.
Social Entrepreneurship= It is considered as an organization that creates products as well as
services in order to solve the social needs as well as problems. The main goal of the such entity
is to make the better place as well as not always makes the profit. One of the best example of
social entrepreneurship is a firm names as Safe point Trust as it works for the redesign medical
tools as well as introduce cost effective non reusable syringes for understands clinics across the
world.
Various types Typology
Survial entity= It can be utilized to fulfill the financial requirements of the firm as well as also
survive to the extended. It mainly focuses on the characteristics by employment freeze,laying of
the employees as well as cutting costs.
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Life style entrepreneurship= Here the entrepreneur makes their living online as they do not
need a physical location for their operations. All of they need is internet connection and laptop to
manage their business. They can be used various software and tools that can be use and also at
the same time they are portable (Monitor,2016). They can operate their business all over the
world as they are not tied down. These entities can be passive income element but every time it
is not necessary. Services such as consulting or coaching if they can offer than they will work on
the software such as Skype. Nowadays due to coronavirus students are studying online and used
various such kind of sites that provide them to do video calls and for long duration of time.
P 2
In the entrepreneurial ventures, the businessman has main focus on the business strategies. They
focus on the new innovations and differences in their product which can attract customer to buy
their product.
There are different types of entrepreneurial ventures which has some difference and
similarities.
Small and Large Business enterprise
Large and the small Enterprise work for their own benefits and their main motive is to
earn profit in their business (Alvarez‐Garrido and Dushnitsky., 2016 ). They try their best to
provide better services and facilities to their customers as per their demand their needs .this
helps to improve their business sales, and they are able to increase their profitability in the
business. Some differences in this venture are financial condition are the biggest difference
between the small and large business where they have only limited financial resources but the
large organization have strong financial condition, so they can easily run their business activities
and earn higher profit as compare to the small business.
Social and Scalable Enterprise
The Social and Scalable Enterprise have their motive to provide their customers better
services to the people who are living in the society. They used to develop the new ideas and
innovation which can make life of the people comfortable and easy. The businessman working
under this category have the tendency to take higher risk because it has batter return they are
able to satisfy needs of their customer. To do something new they adopt new technology in the
market.
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Some of the differences are that the social is all about dealing with the people in society
so that social lifestyle is improved . Whereas in relation with the scalable entrepreneurial
venture works with purpose of changing the world for enhancing social lifestyle and in order
to do the same they implement new and the innovative ideas and new thoughts.
This the difference in the other ventures and the social venture of the entrepreneurship
Lifestyle and survival venture
Lifestyle and the survival venture have only one purpose which is earning more money
for the better survival and establishing good image among the people (Ofobruku and Ezeah.,
2019 ). The entrepreneur who are working under this venture try to earn money from the
different sources, and they also try to earn from the online.
The basic difference in this venture is that the Lifestyle entrepreneurship ventures
follow their passion and work accordingly. They travel to the different places and show their
lifestyle to the others which shows that they are different from the other ventures. Example of
the Lifestyle and survival venture is blogger, travelers etc are the lifestyle and survival
entrepreneur.
P 3
If the economic condition of the country has observed inflation then it will lead to a low
level of disposable income in the hands of people. Through this they won’t be able to buy new
things. This way the business of small enterprises are affected specially for those who deals in
the line of import and export of products. It is necessary that these businesses operates and earn
profits but the current condition of the economy does not allow them to earn substantial amount
of profits. In order to assess the fact about the condition of micro and medium businesses the
contribution made by them are taken out. On the basis of their contribution made they judge and
compare it with the companies who are operating on a large scale. Other than this they are
providing and generating more employment for people as compared to business dealing on a
larger scale. This is the reason that they have been able to get the assistance of government in
terms of funding for the department and sector of R & D. This is necessary because of the
innovative and creative ideas they are able to generate. If they are able to bring new inventions
into the market then they will be successful in establishing their business as a brand in the market
and get acknowledged for their work. This is the reason why many of the tech start ups to work
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on bringing and developing the aspects of technology. This way it will reduce the complex areas
of work (Gielnik, Zacher and Schmitt, 2017).
P 4
Creating employment-
It has come to appearance that small business in private sector has been the ones that are
generating more employment for people as compared to businesses dealing on large scale. They
also ensure that jobs assigned to the people will be given them on the basis of area of expertise.
If they do not hire them on the basis of their interest then they won’t be able to work up to their
potential.
Local improvement-
The operations that are conducted by the small business and their nature of business
states the path to their prosperity. Other than this they also provide help to their nearby local
stores so that they handle the aspect of rotation of money with them. If the business is not able to
fulfil needs and wants of consumers then they won’t be able to survive in the market.
Change in lifestyle pattern-
Due to generation of more jobs level of income of people has increased because of which
they have been able to make changes in the pattern of their consumption. The reason behind this
is after getting a job when individual starts earning they make changes in the arrangement of
their living standard (Simba and Ojong, 2017).
PROJECT 2
P 5
Characteristics traits and skill traits of a successful entrepreneur are completely different
from business managers. These characteristic traits and personality of entrepreneurs and their
difference from business managers will be explained with the help of examples of two
entrepreneurs: James Dyson and Peter Jones.
Characteristics traits: Entrepreneurs have an ability to take risk and are ready to take any kinds of
risk in order to expand their business whereas business managers do not have such skills. Ability
of James Dyson to take risk helped him to grow his business till such an extent. Entrepreneurs
have clear goals and mission which helps them to start their own business (Şahin, Karadağ and
Tuncer, 2019). Whereas, managers only follow defined goals, never create them. Both James
Dyson and Peter Jones had developed clear vision and mission which further helped them to
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successfully start and run their own business. Both of them were self- motivated and had already
set their targets that they needed to achieve which helped them to grow their business. This self-
motivation also helped them to motivate their employees so that they can work more
enthusiastically and work upon achieving defined objectives. Entrepreneurs are willing to face
failure in order to become successful whereas managers are not. Peter Jones did face failure
initially not once but twice which helped him in becoming successful.
Skills: Entrepreneurs have leadership skills which helps them to run a business successfully
whereas managers only have management skills. Both James and Peter had leadership skills
which further helped them in running a successful business (Kozubíková and et. al., 2017). Not
only this, their leadership skills also helped him making their employees their followers and
focused so that desired objectives can be achieved.
P 6
Entrepreneurs personality reflects their mindset and motivation in many different ways.
this can be explained with the help of personality traits of OCEAN models.
 Openness: This trait helps in reflecting creativity, ideas, curiosity and variety of experience
of an individual. This type of individuals has independent and imaginative personality. An
entrepreneur who have this kind of personality has an open mindset and focuses upon using
their creativity, curiosity and ideas development of their own business (Kerr, Kerr and Xu,
2017). Entrepreneurs who have this trait within their personality are self- motivated and has
their mindset fixed upon using their creative ideas within development of their own business.
 Conscientiousness: Individuals who have this personality are dependable, organized and are
dutiful. Such type of individuals focuses or aim upon achieving desired goals and objectives.
These types of entrepreneurs are quite stubborn when it comes to achievement of their
desired goals and objectives and this, suborn nature motivates them to achieve their target
and nothing else which further helps in setting their mindset to achieve their goals with
complete determination.
 Extroversion: Individuals who have this type of personality are quite talkative, assertive and
energetic (Hachana, Berraies and Ftiti, 2018) . This energetic nature of such type of
entrepreneurs encourage them and motivate them, set their mindset to achieve desired goals
and objectives.
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 Agreeableness: People with this personality are helpful, compassionate and cooperative in
nature. These types of people are always assertive and focus upon motivating others. They
are more trustworthy and helpful in nature (Viinikainen and et. al., 2017). Entrepreneurs with
this personality trait always focus upon motivating their subordinates and employees.
 Neuroticism: Individuals with this personality traits experience emotions such as depression,
anger and many more. Such type of individuals does not have high motivational level and do
not have a stable mindset. So, there are less number of individuals with this personality trait.
P 7 Ways in which background and experience can hinder or foster entrepreneurship
Overall experience and background of people can either foster or work as a hindrance
within their entrepreneurship. Here are some examples that can helps in explaining ways in
which entrepreneurship experience of entrepreneurs can be affected with the help of three
examples: one local entrepreneur, one global entrepreneur and one social enterprise.
 Peter Jones: He is one of those entrepreneurs who earned money from his two passions that
are tennis and business. Initially for few years he started giving tennis lessons to others and
he himself was a very good player. Hen he started manufacturing PC’s in his mid- twenties
but neither tennis was a success, not his business was a success. Then in his late 20’s he
started working in a Computer business and after few years he founded his own telecom
business which was a success. So here his experience helped him in becoming and
entrepreneur.
 James Dyson: He was always interested in art, designing, in fact he had done one year of
interior designing before moving to engineering. He used in engineering and interior
designing knowledge focused upon innovating something new. In 1970 he created a vacuum
cleaner that picked up dirt. He tried to sell his invention to major manufactures but they
rejected his invention. Then he started his own manufacturing company and distributed his
products in UK and started his own business.
 Jane Wurwand: She had not studies business studies and only went to take a degree from
beauty school. She established a dermal clinic and she used this experience to establish her
successful business.
Conclusion
From the above assignment it has been summarized that there are different types of
entrepreneurs and each of them have their own experience and background which motivate them
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in starting or running their own business. Background and experience of each entrepreneur either
works as an hindrance or foster them to start their own business. It has been concluded that each
entrepreneur has some characters, traits and skills which helps them to successfully run their own
business and differentiate them from others.
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