Entrepreneurship and Small Business Management Copy Assignment

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

INTRODUCTION
Entrepreneurs are the people who invent and implement new ideas into reality in order to
satisfy the increasing demand of the population as well as to earn money. Entrepreneurs are the
backbone of an economy in which they operating their business as they generate more revenue,
jobs etc. for the country through which the local people can raise their living standard. These
entrepreneurs open their new small and medium sized businesses which provides support to the
economic development of a country. This report will determine the several type of enterprises
and the typologies of the entrepreneurial ventures along with the similarities and differences
between entrepreneurial ventures. Interpretation of relevant statistics will be done for showing
the effect of micro and small business concern on the economic system. Further, in this
document explanation of importance of small businesses and business starts-ups to the growth of
social economy will be discussed along with the peculiar, attributes and abilities of flourishing
businessperson. In the end, this report will cover the aspects of the entrepreneurial aspects
personality reflect entrepreneurial motivation and mindset along with how background and
experience can hinder or foster entrepreneurship.
TASK 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurs are the individuals who are responsible for forming new business firms for
supplying their products and services to the customers in return of money. Entrepreneurial
ventures are the businesses which are set up by the entrepreneurs so that they can earn money
and profit for living their life comfortably. These ventures have their own purpose for which they
are formed by entrepreneurs. There are various type of entrepreneurial ventures which are
divided on the foundation of their services, situation, scope and purpose (Akehurst, Simarro and
Mas‐Tur, 2012).
Entrepreneurial activity
Businessperson action refers to the process of businesses in which the organisations
generate their quantity by creating economical actions. These acts are associated with
exploration of fresh and unique thoughts which can enhance the growth and development of the
venture. These unique ideas are converted to reality in order to provide the products and services
to the customers through their business. These ideas or business developed for enhancing the

employment opportunities for local people of the country in which the business is operating.
Different type of ventures
Small business: These types of ventures has huge amount of employees, capital, size and
operations. These types of ventures are formed for earning profit in return of products and
services which are provided by the firm. The filler and range of these enterprises is constrictive
as they are operating at midget scale and provides their products and services to niche market.
These business are formed by using the partnerships and sole proprietorship (Bakeman and
Hanson, 2012). The purpose for development of these business is to earn net profit and living.
These firms has less than 50 employees with gross worth of €2 million. Some examples include
Orion electrotech limited, Clarasys etc. which are private sector based firms and Travelodge
which exist in public sector.
Large company: These business concern enterprises operates at a huge level due to
which they have no limits in their operations, size, scope number of employees etc. Such firms
provides their products and services at huge level to the customers. These organisations also
expand their business operations at global level. These organizations needs huge amount of
money for operating the business smoothly. These firms sustain in the market due to having
experience of operating the business for several years and ability to adapt to changes. Examples
include Tesco, M&S etc. which are private firms whereas organisations such as NHS is public
sector firm.
Social enterprises: These types of business are formed for the purpose of development
and welfare of society. These firms develop new ideas which can be used by the society for their
development and growth (Barringer, 2015). These business has vast range as they furnish the
better chance to local multitude so that they can improve their living standard. Such businesses
are not focused on earning profit. These provide a major contribution to the development of
economy however these runs locally. Some examples include, Save the children etc.
Typologies of entrepreneurship
Entrepreneurship ventures involve various type of typologies which are associated with
the development of business in order to make the business more effective. Some typologies are
as follows:
Lifestyle Enterprise: These types of enterprises are formed for rising the surviving
modular of the local multitude of a place in which the company is operating the business. These

firms provides job opportunities to the local people as well as their products and employment to
the multitude of that place. This falls under the social ventures.
Growth firms:These types of companies are formed for earning the maximum profit and
revenue. The entrepreneurs of such firms try to innovate new ideas through which the
productivity and profitability of the firm can improve in the market. These ideas are generated
for satisfying the needs and necessities of their bespoken in order to get improved results from
their products and services which are provided to the customers. These falls under the small and
large organisations (Bennett, 2014).
The typologies and entrepreneurial ventures are interconnected as they provides their
maximum efforts for rising the modus vivendi and surviving modular of the people. Also these
both provides their possible contribution in the development and growth of the economy in
which the business operations are running.
P2 Similarities and differences between entrepreneurial ventures
The similarities and difference between the entrepreneurial ventures are as follows:
Differences
Basis Small business Large company Social
entrepreneurship
Scale These are called as small
business because these
business are operated at a
small scale by using
small amount of money.
These business operates at
a high scale due to which
these needs huge amount
of money for smoothly
running the business
operations
These business
operates at local
level for satisfying
the needs of the local
people and society.
Purpose The purpose of these
business is to earn their
livelihood for living life
comfortably.
These are formed for the
purpose of earning huge
amount of money through
their innovative ideas and
products.
These are formed for
the upliftment of
local people so that
the living standard of
the local people can
be improved.
Characteristics These business needs Such types of businesses These firms requires

limited resources for
running the business as
well as the government
interference is also low.
requires huge amount of
resources such as money,
employees etc. Also the
government interference is
high due to having huge
amount of operations.
money which is
provided by the
government as they
are operating for the
welfare of people
Similarities between the Small business, Large company and Social entrepreneurship
Being based on new idea: Both of the three types of venture are formed based on an
innovative idea through which they can cater the needs and demand of their customers. These all
three type of ventures develop the idea into reality so that their firm can achieve the success and
growth in the market.
Being risky: These all three business ventures are developed by considering the risks.
The entrepreneurs of these all ventures take risk in their business due to which they become
successful in the market.
Innovative products: The entrepreneurs of Small business, Large company and Social
entrepreneurship develop their business with an unique and innovative idea. This idea is
converted into innovative product so that these can be provided to the customers for earning the
money as well as for satisfying the needs of their customers.
TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
The business concern organisation maneuver a very essential part in the improvement of
an economy. They provides their maximum contribution to the economy so that the country can
develop its infrastructure, schools etc. These business organisation heavily impact the economy
of a country. The three types of business concern are as follows:
Small: These kind of firms employs less than 50 workers for accomplishing their goals as
well as having revenue of less than £5million. These firms effect the economic system
improvement at a low scale as they are generating more revenue and employment for the country
but at low scale (Berglund, Johannisson and Schwartz, 2012).
Medium: These kind of business concern employs more than 50 employees but less than
250 workers and has the revenue of £5m and less than £22m. These also impact the economic

development as they provides high number of employment to the people as well as satisfy the
needs of their customers for earning high profit.
Large: These type of firms operates at huge level having workers more than 250 and
revenue of more than £22m. Such firms intemperately impact the economical improvement as
they provides job possibility to a huge number of people due to having operations at national as
well as global level.
Impact of SME on economy
Local impact: Micro and small business firms directly effect the general economic
system as they provides their commodities and employments to the general people in order to
fulfil their needs. Such type of business concern are formed after examining the needs and wants
of the multitude. Through this investigation, businesses can determine their purchasing power in
order to supply the commodities conformity. These business also provide job opportunity to
people so that they can earn money for improving their living standard and lifestyle which will
also assist in the development of local economy (Bhachu, 2017).
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Regional impact: SME also impact the regional economy as they too provide the
occupation chance to territorial multitude for eliminating the issue of unemployment in the
Illustration 1: Role of Start-ups and Small Businesses

region. These postulate effect the economic system as high job rate is helpful for business for
growing the business concern dealing due to having sufficient and talented workforce. This will
also improve the regional income which can be used for development purpose (Bridge and
O'Neill, 2012).
National impact: SME also impact the economic system at domestic level as they
perform their business concern operations by exploitation less money. These also focused on
progressive thoughts in order to enhance the profitability and productivity of the company. This
increased profit will assist the country in enhancing the government's revenue. More than 15.7
million multitude are engaged by the SME's in the UK economic system which is also a positive
impact in the development of UK.
P4 Importance of small businesses and business starts-ups in growth of social economy
Midget business concern and start-ups are the mainstay of any nation which together
provides a vast figure of revenue and employment chances to the country as well as people.
These are essential for the development of people of a country as well as for raising their living
standard. A large number of midget enterprises are running in the UK which are proportionality
impacting the ethical economic system. These start-ups and small firms are increasing at a rapid
pace in the UK. These firms are launched by entrepreneurs through generating new ideas which
can meet the ever increasing demand of customers. Also the government of the UK is supporting
these firms so that they can provide their maximum efforts in the development of country. These
firms are very important for the growth of economy due to having several reasons which are
discussed below:
Job creation: Both the small business and start-up plays a major role in generating new
job or employment opportunities which assists the company in enhancing the performance and
productivity. These firms provide jobs to local people in order to improve their existing skills
and capabilities. Through these improved skills, individuals can generate new ideas for forming
their own new venture. These are important for eliminating the unemployment in country which
will improve the economic condition of country (Carsrud and Brännback, 2011).
Improve living standard: Both start-ups and midget business concern are essential for
country in order to raise the surviving modular of local multitude. This is done by furnishing
high choice based good and services to bespoken accordant to the buying ability of consumers.

This will fulfill the needs and demand of people through which they can improve their living
standard too.
Economic growth: Both of the small firms and start-ups are important for the economical
development as it generates possibilities for multitude in terms of creativity and growth. These
innovative opportunities are useful for delivering the required resources which can improve the
growth rate of economy. Also these small firms and startups are useful for producing quality
based products and services which are provided to the customers.
Corporate social responsibility: Corporate social responsibilities are the roles which are
played by the business organisations for improving the life of local people in terms of providing
job, improving the environmental conditions, improving the education level etc. The start-ups
gain quick growth then the big firms. One of the main reason behind the success is of the CSR
activities performed by the start ups. The start ups are basically formed for rising the surviving
modular of the general multitude. More number of firms means more CSR activities which
contributes in improving the conditions of the society.
So, from the above points, it can be concluded that the midget firms and start-ups are
very useful for a country as they supply the progressive thoughts which can be utilized for rising
the life of the general multitude. These also provide job to people which is helpful for multitude
in earning some money for spending their living well (Dees, 2017).
TASK 3
P5 Characteristic, traits and skills of successful entrepreneurs
A ample figure of characteristic, abilities and traits exists in flourishing businessperson
which distinguish them from the other enterprise administrator. These characteristic, traits and
abilities are useful for the entrepreneurs in order to generate new and innovative ideas which can
assist the organisation in rising the productivity and profitableness of their ventures. Two
businessperson are selected for this report which are Elizabeth Gooch of EG Solutions PLC and
Tom Mercer of MOMA Foods whose characteristic, skills and attributes are discussed beneath:
Characteristic Passion: It is an essential characteristic of entrepreneurs through which they can continue
their work without any issues or boredness. Through this symptomatic, both
businessperson i.e. Elizabeth Gooch and Tom Mercer can concentrate on their business

on daily basis for attaining their desirable targets and goals. This symptomatic distinguish
them from business administrator as managers looses their solitaire while on the job due
to which they could not take the proper decision (Epifanova and et. al., 2015). Self belief and hard work: This is also an essential diagnostic through which the
entrepreneurs can execute their business efficacious. This characteristic assist both of the
entrepreneurs i.e. Elizabeth Gooch and Tom Mercer can carry on their work due to
having self confidence which also maneuver them in fetching decent determination for
the prosperity and development of their businesses. This will distinguish the
businessperson from other administrator due to having ambitious working attributes and
self belief in their judgments.
Skills Innovative thinking: These skills are important for the entrepreneurs so that they can
innovate new ideas for partitioning the difficulty of work. Through these abilities, both
Elizabeth Gooch and Tom Mercer became flourishing as they solved their difficulties
which originate in their business and subdue them for acquiring the wanted prosperity in
an effective manner. Leadership: This skill is also essential for the entrepreneurs so that they can easily lead
their employees towards the desired goals effectively. These skills exists in Elizabeth
Gooch and Tom Mercer through which they provided their support to their people and
guided them to work hard for accomplishing the desired organisational goals. This skills
differentiate them from managers as they provide support and guidance to employees
which is not provided by managers (Goffee and Scase, 2015). Problem solving: These skills are essential in entrepreneurs so that they can resolve their
issues and challenges in an effective manner. This skill exist in both of the taken
entrepreneurs through which they resolved their problems and challenges occurred during
the business activities. Time management: This skill is necessary in the entrepreneur so that they can manage
their time in performing their work. This skill exists in both of the Elizabeth Gooch and
Tom Mercer because of which they managed their time in executing the work and as a
result their businesses achieved success.
Traits

 Confident: This is a necessary attribute which should survive in businessperson in order
to take amended determination for the attainment of their speculation. Both of the
Elizabeth Gooch and Tom Mercer are confident due to which they generated new ideas
for their business which can assist them in acquiring affirmative result and good marque
image in the marketplace. This attribute distinguish them from administrator as they are
overconfident in their judgment due to which they can utilize them seemly.
 Disciplined: It is also necessary for entrepreneurs for the success of their venture as
through this, they can maintain balance between their personal and professional life. This
trait also exist in Elizabeth Gooch and Tom Mercer due to which they stay focused on
their goals without getting distracted from other things (Hall and Wagner, 2012).
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
Entrepreneurs have several characteristic, trait and skills which differentiate them from
the other people or managers. These factors also represent the entrepreneurial motivation and
mindset as well. These factors directly impact the motivation and mindset of entrepreneurs due
to which they could not become successful. OCEAN model can be used for reflecting the
entrepreneurial motivation and mind set. This model has 5 aspects as discussed below:
Openness: This aspect is associated with the feeling, escapade and thoughts. This
prospect reflect that the curiosity and ability is assistive for businessperson in fetching the better
and decent judgement for their business. This is also helpful for acquisition of new things and
touching the situation.
Conscientiousness: It is associated with the adaptability and dependability. This states
that the businesspersons should edict convergent on their aims rather to involve in the other
unproductive activities in order to execute their score effectually.
Extroversion: This states that the entrepreneurs should stay energetic, assertive, talkative
and social in order to influence the employees and other persons. Through these, the
entrepreneurs can also maintain good relations with the staff which assist them in retaining the
workers (Islam and et. al., 2011).
Agreeableness: This states that the businesspersons needs to be concerted and
creditworthy in order to organize with their workers and other multitude. Through this, they can
hold up the belongings among the workers which leads to better links. Through this, the

businessperson can take the propositions and thoughts from persons regarding the running and
ameliorate.
Neuroticism: This is associated with anxiousness, fear, worry, frustration, vigilance and
envy etc. in which businesspersons react negatively to ergodic position. The businessperson
should debar such components in order to treat their workers equal. Through obviate these
components, entrepreneurs can maintain good and healthy working environment at the
workplace.
Mindset & situational factors shaping mindset of entrepreneur
Mindset refers to the way our mind or brain thinks. This thinking capability improved
with the time and experience due to which individuals and entrepreneurs can taken better
decisions based on the past experience. These improved decisions taken by the entrepreneurs
assist their businesses in gaining the growth. They learn new things for handling new and
complex situations through their life experience which developed their thinking capabilities.
Situational factors refers to the elements which can hinder or influence the working of the
entrepreneurs due to which they could not take better and improved decisions. However,
consideration of these external factors in strategy development will assist the entrepreneur in
taking better decisions so that their business can gain desired growth.
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurs runs their business for earning profit by providing their products and
service to the customers. The experience and background of entrepreneurs helps them in getting
more involved in their working which guides their business towards the success. The experience
and background of the Elizabeth Gooch and Tom Mercer which enabled them to become
successful are as follows:
Elizabeth Gooch
Background: Elizabeth started working at the HSBC bank at the age of 18 and later after
one year, she left the job and started working with a consultancy firm. Soon, she left the firm
again and gathered small amount of money from the friends and family. She collected £1,000
from the friends and family for starting her own company. Through the company, she started
providing consultancy and training services to the financial services companies regarding the

operations management. She lacks skills for gathering the required information for improving the
productivity and profitability of company so she changed the services with the software. She
contacted Rodney Baker-Bates, CEO of Prudential Financial Services and recruited him as the
chairman of the company. Later she also float the company in the market for investment in order
to attract more investors (Kelley, Singer and Herrington, 2012).
Experience: She started her business but simultaneously faced several problems such as
lack of funds, support from family and friends etc. She managed to handle such issues and
determined for the growth of her business. Her father also told her to get a good job instead of
running her own business. Later, she met with Rodney Baker-Bates who provided his ideas to
her regarding the development of software instead of providing consultancy services. She also
attracted potential investors for her business but faced loss in the year 2007 and 2008. However,
she managed to overcome the loss and in further years, she gained profit again.
Tom Mercer
Background: Tom Mercer was a graduate from the Cambridge University. Tom also has
the experience of working as a management consultant in the Bain and Co. which is based in
London. While working with the different companies, he always thinks about new ideas through
which he can start his new business. While going to work regularly, he noticed that the people
has several option for their dinner and lunch but the option for their breakfast is limited. He get
the idea for starting his business and he started his business in 2006 by blending the health drinks
which includes oats and smoothies. Slowly his business gained speed and his company was
employing more than 25 people till 2009.
Experience: Tom is having the experience of working as a city worker because of which
he knows the struggles of people in getting the healthy breakfast while going to such type of
work. He often goes to work late and thinks of new ideas for the products of his business. In the
initial time, he cut the fruits himself at night and put them in the bottles for selling to the
customers. He also sold his products at the railway stations for determining the requirements and
demand of the customers in order to provide the products accordingly.
Through their characteristics and background, both Elizabeth Gooch and Tom Mercer
became successful in their business and overcome the problems and failures in order to stay
focused on the growth and development of the business. Due to their continuous focus, they
achieved favourable results for the success and growth of their business in the market. Both of

the entrepreneurs faced various issues through out their life and learned from those issues in
order to resolve such issues in future time period (Ramadani, 2013). These entrepreneurs also
took assistance from their characteristics and background in taking better decisions for their
business in order to achieve the sustainability.
Impact of education social environment and economic environment on entrepreneurs
There are various types of factors which positively or negatively impact the success and
performance of entrepreneurs. These factors includes education, social environment and
economic environment which are influencing the working of the entrepreneurs. Education is very
essential for entrepreneurs in getting the desired success as they can develop their thinking
capabilities through the education which positively impacts them. Social environment can impact
the entrepreneurs in both positive and negative manner as there are some people who appreciates
the efforts of entrepreneurs in starting their business whereas some people become jealous of
entrepreneur due to starting of their business which demotivate the entrepreneur. Economic
factors also impact the entrepreneurs in both positive and negative manner. If the economic
condition of a country are favourable then it will positively impact the entrepreneurs as sales can
increase whereas unfavourable conditions can impact the sales of the firm which will negatively
impact the entrepreneurs too.
CONCLUSION
It has been concluded from the above report that the entrepreneur are the people who
converts their ideas in reality for satisfying the needs of customers. There are different types of
ventures such as small, large or social enterprise which are associated with the typologies of
entrepreneurship. The small firms and start-ups are useful for a country as they provide job,
profit, revenue etc. to the country which is beneficial for improving the life standard of people.
There are various skills, characteristic, and traits which are required among the entrepreneurs in
order to become successful in their business.

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Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.