Entrepreneurship and Small Business Management

This report discusses the types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It also explores the similarities and differences between entrepreneurial ventures, the impact of micro and small businesses on the economy, the relevance of SMEs in economic development, the characteristics, traits, and skills of entrepreneurs, and the positive or negative impact of backgrounds and experiences on entrepreneurship.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Types of entrepreneurial ventures and how they relate to typology of entrepreneurship 1
P2. Similarities and difference between entrepreneurial ventures.........................................2
P3. Statistics to support presentation of impact of micro and small businesses on economy 3
P4 Relevance of SMEs in economic development.................................................................5
P5. Characteristics, traits and skills of entrepreneurs.............................................................5
P6. Aspects of entrepreneurial personality (OCEAN model)................................................6
P7: Positive or negative impact of backgrounds and experiences of entrepreneurs over their
entrepreneurship.....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship can be comprehensibly defined as a notion which is concerned with taking
risks for the betterment of society as a whole (Morris and et. al., 2018). Besides this,
entrepreneur is an individual who sets up the whole establishment and assumes the responsibility
of foreseen or unforeseen losses. The current report throws light on the importance of
entrepreneurial ventures and small businesses for a country. Besides this, OCEAN model is
applied on selected entrepreneur to exhibit their personality traits. Further, it includes the skills,
traits and characteristics of the entrepreneurs along with the impact placed by experiences &
background over their entrepreneurship.
P1. Types of entrepreneurial ventures and how they relate to typology of entrepreneurship
Entrepreneurship is described as a process through which entrepreneur offer advisory facility
to newly start firm for conversion of their innovative business plan in to realism. There are four
kind of entrepreneur venture that is given below:
 Small Business Entrepreneurship: It involve different kind of small enterprise includes
plumber, food market, hair stylist travel agents as well as many more for growth of the
organisation and satisfy need of user. Cafe pod is considered as a good example of this
entrepreneurship.
 Large Business Entrepreneurship: Large companies considered those organisations
who invest their money in different organisation for attracting ample of user towards
organisation for satisfying their demands (Neumeyer and Santos, 2018).
 Social Enterprises: This organisation focuses on providing social services to community
and their main purpose is to provide better services for satisfying the social need.
 Scalable start up Entrepreneurship: Herein the newly started firm focuses on making
effective Vision and Mission in order to attract the fund provider for great future of
organisation. It also helps in attracting ample of user at marketplace.
Typologies of Entrepreneurship
On the basis of above given different kind of business in relation to entrepreneurship there are
various typology that is going to be mentioned below:
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 Growth firms: Here in the primary purpose is to increase more and more revenue for
success as well as development of the company. Here in the main focus is to convert the
business plan into the really for fulfilling the necessity of consumer at market place.
 Lifestyle Enterprises: These enterprises focus on providing different kind of opportunity
in relation to employment to an individual person for gaining revenue and modify their
lifestyle (Kuratko, 2016).
 Survival Firms: The main focus of the business enterprise is to maintain their survival as
well as maintenance on regular basis it help in boosting their brand image and reputation
in front of customer at marketplace.
Hence, it has been stated that and entrepreneur venture as well as typology both are
connected to each other that help in success as well as growth in future phase of time period
P2. Similarities and difference between entrepreneurial ventures
Similarities
Basis Small business Large Business Social Enterprise Scalability
enterprise
Meeting
the social
need and
Upliftment
The primary
purpose of small
organisation is to
provide
Employment
opportunity to
individual person
for satisfying their
wants. Cafe pod is
considered as a
good example of
this
entrepreneurship.
Large companies
considered those
organisations who
invest their money in
different
organisation for
attracting ample of
user towards
organisation for
satisfying their
demands.
This organisation
focuses on
providing social
services to
community and
their main purpose
is to provide better
services for
satisfying the
social need.
Herein the newly
started firm
focuses on making
effective Vision
and Mission in
order to attract the
fund provider for
great future of
organisation. It
also helps in
attracting ample of
user at
marketplace.
Differences
Basis Small Business Large Business Social Enterprise Scalable Enterprise
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Scale They carry out their
business at small
level because they
have less money for
investment in
entrepreneurship.
These organisations
operate their
business at large
level because they
have the large
amount of money for
future enhancement
of organisation.
This organisation
runs their business
at local scale for
fulfilling or
satisfying demands
of its user
(Kuratko, 2016).
They run their
business at Niche
scale because they
decide their mission
as well as vision for
change the overall
universe.
Purpose The primary
purpose of
companies to earn
more and more
profit for success of
organisation.
The major aim of
these companies to
increase revenue for
bringing innovative
business plan at
market place.
The main or
primary purpose of
companies to
increase standard
of living of
individual person
in the society.
The primary purpose
of this kind of
enterprise is to
provide best services
in relation to finance
for great future of
company.
P3. Statistics to support presentation of impact of micro and small businesses on economy
Micro and small businesses are regarded as the backbone of social economy for the contribution
they have given over the course of time in its development (Santos and Morris, 2017). This is
explicated with the help of statistics with regards to British economy as follows:-
Figure 1: SMEs v/s large businesses in UK
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The above picture represents that there are several SMEs pertinent to every industry within
United Kingdom. If talked about in terms of numbers, it can be seen that 4.5 million SMEs
function as a part of respective country’s economy. This figure approximates to 99% of all the
business that function in the nation. It is further acknowledged that 96% micro businesses
operate within the territorial boundaries of this country (Marshall and Williams, 2019). These
entities open employment opportunity for local individuals of Britain. They generate around 22%
of the total turnover generated within the economy.
Figure 2: Share of businesses in UK
The graph represents that the number of small and micro businesses combined together exceed
the number of medium and large entities in British economy. This illustrates the extent to which
the small and micro businesses are embedded within the economy of UK and contribute to its
overall growth and development. There are 99.3% of small businesses functioning within the
nation which earn 37% of overall turnover (Thatcher and et. al., 2016). Also, these businesses
provide 48% of the employment opportunities to British citizens so as to inflate their standards
of living.
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P4 Relevance of SMEs in economic development
SMEs have a huge effect over the financial development as can be found on account of British
economy This country has been home to an enormous number of SMEs by giving them
infrastructural and innovative services. The yield generated by such businesses lift the existent
development of UK’s economy. The relevance of these undertakings corresponding to the
development of social economy is talked about beneath:-
Way of living: SMEs enhance the quality of lives undergone by individuals by providing jobs to
local individuals. Therefore, people don't leave UK to get work in some other area. This prompts
development of their expectations for everyday comforts along with growth of UK’s economy
(Peck, Jackson and Mulvey, 2018).
Advancement: SMEs are the wellspring of innovation. Such associations encourage
development and innovativeness among the people so the company all in all may think of
inventive practices and contributions that have the ability of capturing the attention of
commercial centre (Dakare, Adebiyi and Amole, 2019). At a point when such undertakings
consolidate advancement inside their practices, it gives a general push to the UK economy as the
individuals of this country have a tendency towards development, uniqueness and inventiveness.
Giving occupations: UK comprises of a few people that are semi skilled and thus are found to
be lacking the abilities to gain entry into a large company. SMEs give employments to such
individuals thereby empowering them to carry out a standard life. SMEs provide them with
training facility to make them capable of carrying out the operations as per the expectations and
requirement of the entity.
P5. Characteristics, traits and skills of entrepreneurs
Each entrepreneur is unique in their own way. They have their own set of capabilities and
competencies that make them distinct within the herd of other entrepreneurs (Burton and et. al.,
2019). In this relation, two of the most successful entrepreneurs of Britain named Richard
Branson and JK Rowling are taken into account to study what are the unique facets that made
them reach the level at which they are today. Thus, their skill set is briefly discussed beneath:-
Characteristics
Belief: This is regarded as a prominent characteristic of an entrepreneur whereby they possess
confidence in their skill, competence and ability. Richard Branson and JK Rowling, both were
entrepreneurs who possessed high self belief, providing them aid in achieving rapid success.
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Traits
Creativity: An entrepreneur is a person who intends to pursue their innovation and creativity in
order to come up with unique offerings in market place. Richard Branson in the past has often
linked with projects regarding entertainment and humanitarian service. Also, “Harry Potter”
series of JK Rowling is still globally recognised by people of all age groups (Ramadin, 2019).
Skills
Learning Skills: Entrepreneurs are usually known to be eager to learn new things by setting
networking with individuals having more experience than them. The same can even be witnessed
in the case of both the concerned entrepreneurs as they considered their past mistakes as the
learning and paved way to future so that they do not repeat same mistakes again in life.
P6. Aspects of entrepreneurial personality (OCEAN model)
An entrepreneurial personality incorporates a few characteristics and abilities, for example,
values, conviction, comprehension and inspiration. Regarding this, OCEAN model is used for
showing the route through which parts of entrepreneurial personality infer their mentality and
inspiration. This model is introduced in a descriptive manner underneath considering Richard
Branson along with JK Rowling:-
Openness: This delineates business people to be having enthusiasm and vitality for achieving
new information. Entrepreneurs are always eager to experience new undertakings that can inflate
the existent level of learning along with information base possessed by them. Richard Branson
and JK Rowling were always open for leveraging opportunities for picking up progress (Elfring
and Hulsink, 2019).
Conscientiousness: It aspect of OCEAN model displays that business people have the aspiration
just as control for accomplishing the objectives earlier set by them at the appropriate time period.
In a similar way, Richard and Rowling had always been anxious for experiencing the notion of
entrepreneurship with the goal that they come up with products and services having the ability to
pick up the consideration of enormous number of people.
Extraversion: This perspective portrays that business visionaries are emotion wise responsive
and lively to the earth. They study the environmental factors so as to recognize the chance to
develop an endeavour around the market gap found by them. Richard along with JK Rowling,
were very self-assured and with their imaginative outlook, concocted inventive contributions, for
example, Virgin Airlines and Harry Potter book arrangement.
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Agreeableness: This viewpoint outlines the size of participation showed by business visionaries
while carrying out working. In simple terms, it implies that agreeableness is a proportion of their
agreement to others. In this connection, the two business persons had been very agreeable while
undergoing entrepreneurship. Also, both of them showed compassion to other persons in the
business.
Neuroticism: This exhibits the magnitude of control that business people can exercise over their
emotions and feelings. Richard together with JK were acknowledged to be steady individuals,
thus didn't let any life obstacle destroy their attitude towards entrepreneurship.
P7: Positive or negative impact of backgrounds and experiences of entrepreneurs over their
entrepreneurship
The experiences along with background of people have a critical impact on the way wherein they
seek after their expert life. In such manner, it very well may be seen that business people are to a
great extent influenced by the background of their folks, academic along with their own life
experiences. Richard Branson and JK Rowling were entrepreneurs whose life had been loaded
with good and bad times yet the two of them of them did not ever give up and were adamant to
pursue entrepreneurship. This owes to their solid will power. As a result of this, both of them are
today perceived as comprehensively eminent business people. Hence, it very well may be seen
that various variables ruined or cultivated the course of enterprise for the particular 2 business
visionaries. A point by point conversation upon the equivalent is introduced as underneath:-
Educational background: The academic background of a person impacts critically over the
process of entrepreneurship undergone by them. In context of JK Rowling, it is determined that
her academic background largely supported her in becoming an entrepreneur. It has been seen
she experienced a selection test to look for access to a prestigious school. In any case, it was seen
that she did not get passed in the test and in this manner couldn't get admitted within the
university (Dover, 2017). Then, JK Rowling did BA with French. After that, she functioned as a
researcher which largely helped in making her personality compatible for undergoing
entrepreneurship. Post the occurrence of this event she launched a variety of books which gained
her gigantic acknowledgment over the world. The academic background of Branson was
acknowledged to be exceptionally poor as his instructors believed that in future he would either
land in bars or as a successful business visionary. Richard proved the latter to be true and became
the entrepreneur for Virgin Atlantic Group by putting immense hard work.
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Family backgrounds as well as experience: It is acknowledged that family background as well
as personal experience of individuals also has a significant impact over entrepreneurship. With
reference to Richard Branson, it has been identified that his family background facilitated him to
become a successful entrepreneur. His parents supported his journey as an entrepreneur as her
mother was herself an entrepreneur (Muegge and Reid, 2018). In case of JK Rowling, it is seen
that she used to recite fantasy stories written by her to her sister. Her life was tough as her
mother was diagnosed with multiple sclerosis. Also, she did not have good relation with her
father which further affected her life negatively. But her will and passion towards writing made
her the author of a renowned series named Harry Potter.
CONCLUSION
In accordance with the above mentioned information, it can be said that entrepreneurial
ventures and small businesses provide a boost to the economy of a nation. The various ways by
which this takes place is by way of leveraging innovation, provision of jobs to domestic
individuals etc. Further, it is recognised that entrepreneurial characteristics can be determined on
the basis of OCEAN model. Lastly, it is summarised that the academic and family backgrounds
along with the experiences shape the personality of an individual to a large extent. In many case,
they may foster entrepreneurship while in others, they may hinder the process.
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REFERENCES
Books and Journals
Burton, M. D. and et. al., 2019. The organizational design of entrepreneurial ventures. Strategic
Entrepreneurship Journal, 13(3), pp.243-255.
Dakare, O., Adebiyi, S. O. and Amole, B. B., 2019. Exploring resources and capabilities factors
among entrepreneurial ventures using DEMATEL approach. International Journal of
Management, Economics and Social Sciences (IJMESS), 8(1), pp.20-39.
Dover, C., 2017. From Marie de France to JK Rowling: The Weasel. In The Legacy of Courtly
Literature (pp. 91-113). Palgrave Macmillan, Cham.
Elfring, T. and Hulsink, W., 2019. Dynamic Networking by Entrepreneurs: Collaborative Efforts
in Developing Opportunities and Mobilizing Resources. Forthcoming, Jeff Reuer and
Sharon Matusik (eds.).
Kuratko, D. F., 2016. Different entrepreneurial ventures for greater societal value: A portfolio
approach to assist public policy. The Antitrust Bulletin, 61(4), pp.546-560.
Marshall, S. and Williams, S., 2019. An Investigation into the Sustainable Actions of Micro-and
Small Businesses. In Responsibility and Governance (pp. 237-255). Springer, Singapore.
Morris, M. H. and et. al., 2018. Distinguishing types of entrepreneurial ventures: An identity‐
based perspective. Journal of Small Business Management, 56(3), pp.453-474.
Muegge, S. M. and Reid, E., 2018, August. Richard Branson and virgin galactic: A case study of
entrepreneuring as emancipation. In 2018 Portland International Conference on
Management of Engineering and Technology (PICMET) (pp. 1-10). IEEE.
Neumeyer, X. and Santos, S. C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of Cleaner
Production, 172, pp.4565-4579.
Peck, F., Jackson, K. and Mulvey, G., 2018. Regulation and growth-oriented small businesses in
North-West England. Journal of Small Business and Enterprise Development.
Ramadin, T. Y., 2019, August. OVERCOMING THE PATH TO ENTREPRENEURSHIP
THROUGH CREATIVITY. In International Conference of One Asia Community (Vol.
1, No. 1, pp. 49-51).
Santos, S. C. and Morris, M. H., 2017. Resource-based Theory and Types of Entrepreneurial
Firms. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 17637). Briarcliff
Manor, NY 10510: Academy of Management.
Thatcher, J. and et. al., 2016. Enriching the values of micro and small business research projects:
co-creation service provision as perceived by academic, business and student. Studies in
Higher Education, 41(3), pp.560-581.
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