Entrepreneurship and Small Business Management

This report provides a comprehensive analysis of entrepreneurship and small business management, covering topics such as different types of entrepreneurial ventures, their impact on the economy, and the characteristics of successful entrepreneurs. It also explores the influence of family background and experiences on entrepreneurial pursuits and examines the motivational factors that drive entrepreneurial success.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of entrepreneurial venture and how they related to the typology of
entrepreneurship.....................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.......................................3
TASK 2............................................................................................................................................4
P3 Micro and small businesses impact on the economy........................................................4
................................................................................................................................................6
P4 Significance of small business and business start-ups in economy development............7
TASK 3............................................................................................................................................8
P5 Characteristic and traits of successful entrepreneur..........................................................8
P6 Personality of entrepreneur act as a motivational tool......................................................9
TASK 4..........................................................................................................................................10
P7 Background and experiences which can hinder or foster entrepreneurship....................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Small scale companies are those businesses which is managed and fully controlled by
sole traders, association, private firms and single organisation. These are such companies which
have small number of employees and they work with the motive of profit maximisation as well
achieving goals and objectives of business. Small organisation assist in growth and development
of economy because they always come up with some creative or innovative products which
create employment opportunity and rise living standard of the people involved (Gorgievski,
Ascalon and Stephan, 2011). Entrepreneur are the risk taker and have ability to manage as well
control overall working of company. Below mention report is discussing about different types of
entrepreneurial venture along with their similarities and differences. Apart from this, micro and
small business impact on economy. Moreover deep discussion about entrepreneur characteristics
and traits will be done and how their personality work as motivational tool.
TASK 1
P1Type of entrepreneurial venture and how they related to the typology of entrepreneurship
Entrepreneurship – It is the willingness and capability in the person to develop,
organise as well manage an venture. They are the risk taker and main reason behind taking risk is
to make profit as well as surviving in the competitive environment. He/she is the person who
think out of the world and introduction something creative or innovative in marketplace.
Entrepreneurial – These are the activities which need to be planned in proper manner
for minimising the chances of risk for present and future. All the steps involved in it are related
with beginning, mid and last stage phase it is work of owner of the company. Entrepreneurial
activities should be managed in better manner after looking considering prise and risk of
company.
Venture of entrepreneur
Lifestyle venture: these ventures products and services are offering to customers according to
their taste and preferences which can satisfy their needs and local beliefs. These type of ventures
are offering stable income so that owner and maintain working in proper managing way. Apart
from this it have some limitations that, they generally have single location and less number of
staff members. They are not working with expansion motive and also have limited growth.
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 Aggressive Growth: These ventures are related to advancement and organisation which
is technically based come under it. Thus, technical based enterprise have enough capacity
for doing something innovative. Moreover, these type of firm seeks more interest in
launching innovative or creative products as well services in market area so that
sustainability could be enhanced. Undertaking of such ventures ensures better outcomes
in terms of sales and makes sure that customers are attracted towards offerings.
 Managed growth venture: this venture look for stability in growth and has workable
business model. In managed growth venture reinvestment take place by introducing latest
product, employees, location and Expansion of facilities (George and Bock, 2011). Such
type of business need modification in products and services offering by them for growth
of business as life cycle of a business is profitable to a limited extent.
Typology of entrepreneurship: Below mention are the venture related to typology of
entrepreneurship.
 Private venture entrepreneurship: There are some ventures undertaken by the
individual so as to gain profit and ensure stability in the lifestyle. For example small
stores, parlour, boutiques and many more. Mainly the person who introduce it will
manage its daily basis activity and employees are generally their friends and family
member.
 Large company entrepreneur: these are the organisation which require huge amount of
fund and resources for their start-ups as well survival too. They are mainly dealing in
large scale products and target mainly customers with higher disposable income for
selling their offerings. Mainly large scale enterprise are those retail sector business,
tourism and travelling agencies and several others.
 Scalable start-up: Firms come under these are small and scalable and can only be
fulfilled with the help of adequate resources and finance. (Ligthelm, 2010). They don't
deal in huge contract but serve only to normal peoples with minimum amount. Starts-up
are mainly small and it require minimum amount of resources and funds for brining their
innovative and creative goods in market.
 Social business enterprises: Only purpose of these enterprise is to offer good quality of
products and services in the market area for satisfying their customers needs and wants.
Such organisations may be profit and non profit because they don't generate extra profit
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amount. They are generally working for social causes because their main motive is not to
generate high amount of profit. But they rendering such services which is for welfare of
society only.
Accomplished Entrepreneurship: These are the individual who passes all stages of
entrepreneurship and developing an organisation by pick out appropriate strategy as well as
polices. Entrepreneur come out with the new ideas in market and fulfil needs and wants of
customers. Time management is their biggest strength because they know how to use it wisely in
organisation.
Lifestyle entrepreneur - An individual that creates a business with the purpose of altering
their personal lifestyle and not with the motive of profits maximisation. A lifestyle entrepreneur
focuses more on the life rewards provided to people that enjoy and have a passion for what they
are doing. There is a possibility that the business will do particularity well since the individual
has a passion for what he/she is doing.
P2 Similarities and differences between entrepreneurial ventures
Entrepreneurial ventures are increasing day by day due to the emergence of high level of
market opportunities as it aids an association in maximizing organizational revenue in a defined
time frame. However, number of individuals are coming with creative ideas for facilitating
society in order to enhance their personality and so on. In fact, women's are also engaging in
establishing high tech business at marketplace for generating maximum revenue as well as
establishing a benchmark for others. As their main motive is to inspire others towards success
and self development. Thus, it has been assessed that number of entrepreneurs ventures are
identified at marketplace but all of them are having few similarities and differences amongst
them. Major differences and similarities are discussed as follows in between various ventures-
Male Female
Similarities  Motive is to maximize their
profit level by satisfying
customers needs or wants (profit
oriented).
 Grabbing the market
opportunities.
 Their main objectives is to
acquire more or more profit in
a defined time frame (profit
oriented).
 They are also acquiring market
opportunities of success.
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 Attaining customer trust or
loyalty.
 They are trying to creating
relations with consumers for
gaining long term benefits in a
minimum duration.
Differences More powerful in terms of physically
because males are having physical
advantage.
Males are free to move anywhere in the
world without getting scared.
They are less strength in terms of
physical.
Sometime females are feeling shy and
scared while travelling across distinct
regions.
Similarities and differences in between small entrepreneurs and large entrepreneurs are
discussed as follows:-
Small entrepreneurs Large entrepreneurs
Similarities  They are also established for
gaining maximum profit.
 Licensed acquisition is also
required.
 These companies are also
wanted to gain maximum
profit.
 They are also need to gain
license for selling any
product across the regions.
Differences  Less capital is requisite for
establishing small business
activities.
 Minimum staff members are
involved in managing business
activities.
 Maximum range of funds are
requisite to establish large
business entity.
 Number of employees are
engaged for handling large
business activities.
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TASK 2
P3 Micro and small businesses impact on the economy
Micro Business: These kind of businesses are basically run by an individual person and
working with limited person to improve their livelihood easily.
Small Business: These kind of organisations are basically assist in providing
employment opportunities to enhance profitability and income. Main objectives of these
organisation is to provide quality products and services to customers in a particular location.
There are several micro and small business in economy even people are introducing their
more business in market area. All these are giving their direct impact on economy and play vital
role in growth of economic rate. When small business and start-ups come in market they face
several challenges which is related to various condition and situation. There are several methods
which assist in controlling and managing business operation and these affect economy that is
mention below:-
 Turnover – It is that term which reflect annual position of the business in market area and
whatever the turnover company have it directly gives impact in improvement of
economy. Moreover it is the first and foremost thing of small and micro business which
effect economy. Small and medium enterprise have combined turnover of £1.6 trillion at
the start of 2014.
 Business- increasing number of business in economy assist in providing employment
opportunity to large number of people which reduce poverty ratio and enhance living
standard. Private sector firms play important role in providing job opportunity to the
unemployed persons.
 Competitiveness - This factor display the increase in the number of corporation and make
it competitive at global level and also support competition in the nation (Dennis Jr, 2011).
Apart from this they can be summarised that management of ventures gives their direct
effect on advanced nation economy and it will play an crucial role in making these
elements by internal and external fluctuations.
 Industry – innovation and creativity is increasing day by day which directly results in
encouraging and motivating employees for developing more and more goods as well
services. All these gives direct effect on growth of economy rate in every manner. 46% of
the SME revenue is generated from small business .
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 Development – the development is needed for growth of enterprise in large area and it
expand their business operations as well functions in effectual manner. Improvement is
necessary in products and services which is offering by company assist in attracting large
number of customers for buying goods and services.
Illustration 1: UK investment in technology, 2017
(Source: UK investment in technology, 2017)
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Local, national and international economy directly get influenced by small business
organisation. Such enterprises have their different impact on the economy of United Kingdom as
well all this play crucial role in world economy (Carland and Carland, 2015). Description of this
is given below:-
 Local: Local economy help in providing or distributing several goods in specific areas
and also try to satisfy needs and wants of customers in well manner.
 National: Emergence of total products by producing innovative and creative goods and
services.
 International: For doing business at international level there is requirement of exchange
rate of goods and services which assist in crossing limit of foreign direct investment.
There are several points which gives wide impact on the economy. Description of these
are as follows :-
 Employment opportunity – By the development of small and micro business employment
opportunity increase in the economy. Because there is requirement of employees for day
to day activity of the business.
 Rise living standard of people - Small and micro business enhance living standard of
people by providing them job opportunities which gives positive impact on an economy.
Because if individual is earning then it will help increasing the level of wealth, comfort
and bring need available to a certain socio-economic and geographic area.
 UK economy – introduction of small and micro business result in development of
economy because it provide employment opportunity, rise living standard of the people
and many more which result in upliftment of UK economy.
 Increase in GDP - It measures growth rate how fast the economy is growing. GDP
involves economic output of a country. By improving the above factors helps in
developing the economic growth as well as expansion of fiscal and monetary policies.
This includes increase in overall productivity of country, initiative in foreign direct
investment and also, bring currency stabilization in nation.
P4 Significance of small business and business start-ups in economy development
Small and start up business assist in increasing in development and growth of economy
and provide better living standard to the people of UK. Brexit refers to the possibility of Britain
withdrawing from the European Union (EU). Brexit stands for abbreviation for “Brexit exit”,
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referring to leave the EU. The vote's result in expectations and roiled global markets causing the
British pound to fall to its lowest level against the dollar. Negotiation was started in June, 2017
with the aim to complete the withdrawal agreement by October, 2018. In June 2018, the UK and
the EU published a joint progress report outlining agreement on issues including customers and
VAT. Apart from this, when new business start-ups are thinking about profit maximisation
whereas, start ups directly effect on growth of economy. An company always working for state,
country, community and for particular area of people. By their work they make several
modification which can be direct and indirect:-
Increasing Standard of Living – when small business and start up introduced in
organisation it direct reflect on living standard of particular economy people. Because they
provide employment opportunity to unemployed peoples (Leitch, Hill and Neergaard, 2010).
Not only by providing employment opportunity but also through new technology and innovative
goods which they are bringing in market area.
Build a connection with each and every one – when new organisation start their main
motive is to provide their goods and services to each and every person of particular area. Before
doing this they explore market and gain brief information about it as well also identify needs and
wants of customers. While process of analysing is going they interact with target customers, such
interaction assist in building connection as well in making relation.
Provide employment services – Most of the people are unemployed and they want job
opportunity but in this situation some people become entrepreneur and start their own business.
Thus, in result there will one place which get free from job seekers because he/she will be the
one who provide job opportunity to others also. Government of every nation promote and
support start ups as well small organisation. When employment is raising then poverty and
unemployment ratio will decrease. It has been identified even after Britain opting out of
European Union, these businesses have been able to provide employment services to
approximately 47% of total employable population in the country.
Creation of wealth and its sharing – when an individual start or introduce business in
that situation there is requirement of resources and funds which will be invested by themselves
or by attracting investors, lenders and public also for capital investment. Small business provide
goods and services at minimum cost because their first motive is to capture entire market which
can be only possible through low price offerings (Bridge and O'Neill, 2012). Because firstly
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there is requirement of building trust among customers after then they can increase price of their
offerings. Even after Brexit, small businesses have been able to contribute substantially in the
creation of wealth for the economy of the country.
Regional Development - New business and industrial entity aid in regional development
of a specific area such as which is less developed and backward areas. Development and growth
of these types of industries are provide batters batter roads, railways link, electricity and water
supply, school and hospital development and other public services to people. These type of
business are directly and indirectly contribute to the growth of economy and helping others who
have need. The small businesses are spread evenly in the country covering all the major urban
and rural areas which assures that uniform regional development in the country.
Social economy studies the relationship between social behaviour and economy. Such as
cooperatives, mutuals, associations, foundations,social enterprises etc.. sharing common values
and features. It help us to analyses how consumer behaviour is influenced by the social
morals,ethics and values. Small business and start-up assist in growth of economy because it
provide job opportunity to several peoples as well as come with some innovative product in the
market area which result in rising living standard of people.
TASK 3
P5 Characteristic and traits of successful entrepreneur
Entrepreneur is a person who take risk of starting new business to earn profit and success.
He is an individual who started his own small business rather work under some other
organisation. An entrepreneur become successful only after proper evaluation of rewards and
risk in the business (Hall, 2015). Successful entrepreneur have the ability to focus more than one
business at a time that does not mean there aim is to open business in every few days, they want
to expand but not on the negligence of other business growth.
It is necessary for a blooming entrepreneur to have quality of being creative,adaptability
visionary,passionate, self confident,right belief and have ability to plan effectively so that
business goal could be fulfilled within time.
Steve jobs and bill gates two flourishing entrepreneur who are undertaken under this
section to examine their traits and characteristic.
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Steve jobs is among the famous and successful entrepreneur. He is an entrepreneur who
founded apple company in 1976 after dropping school. His company co founder name is Steve
wozanik with whom he founded I pod,I pad and mac computers. Company growth can't be
possible without Steve because he take the organisation to the right path. Jobs full concentration
on the people who are responsible for the growth of the every business. Some skills which make
him world known are as follows-
 Risky- Steve jobs always ready to take risk because they know business to survive in
long run risk is necessary. He take risk in the case of iPhone launch can have possibility
to make iPad obsolete.
 Passionate - He was very passionate towards his work due to which he get succeeded in
establishing their positive image at marketplace. It means, he can easily attain the certain
set objectives or goals in a defined time frame.
Bill gates is one of the most successful entrepreneur of the 20th century. He dropped out
from his college in 1974 and developed a software company.
 Successful entrepreneurs- Bill gates is a co - founder of Microsoft. After developing his
company, he become one of the richest person in the world in 1975. His Company comes
among one of the finest and well reputed company.
 Creative- He has innovated a software which is used by almost everyone in the world.
Without this software, nobody could imagine the today’s world.
 Patience level- Due to his hard work and patience, he has established a successful
venture. As he is a successful entrepreneur and have all traits and characteristics which
should be present in an entrepreneur.
 Commitment towards their work- He was committed towards his business and also
provide healthy atmosphere to his employees. With satisfied employees, he can
accomplish any task and can face any challenge coming to them.
Difference between entrepreneur and manager are as follows :-
Entrepreneur Manager
 Entrepreneur are the risk taker because
they come in market with some
innovative as well as creative products
 Manager are not risk taker they follow
they instruction given to them by top
level management.
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in the market area.
 Entrepreneur bring something new and
creative in the market.
 They work on the ideas given by the
owner of business.
From the above discussion it has been concluded that manager and entrepreneur both are
different from each other in the terms of traits, skills, nature, characteristics and so on.
P6 Personality of entrepreneur act as a motivational tool
Entrepreneur personality work as an motivational tool for other peoples and they are
encouraging to others also for introducing their own business and create employment opportunity
for others. Their are several motivational tools which is distinct from each other and their major
personality is they have ability to take risk as well can survive in market easily. Entrepreneur are
risk taker because without risk there is no chances of profit maximisation and growth. This is
also personality of the same person that they are risk takers. There are several successful
entrepreneur in business environment who are at top. One of them is Bill Gates he is the person
who have capability of inspiring other persons also for introducing their own business in market
area and become top businessmen. He is capable for take any kind of decision which assist in
increasing business operations and easy running of enterprise activities. They both has quality to
manage and control all external issue and problems which occurs during production and
introduction of various goods in the large market. The personality of entrepreneurs are affect on
mind of followers and also they are able to take risk which directly impact on company growth
and development activities in effectively. If people will get motivate with entrepreneur then this
will assist in growth and development of economy. Some of the models of personality traits are
discussed as follows-
 Openness to experience means an individual experience is act as motivational factors for
encouraging others.
 Extroversion.
 Neurotics means a person is totally stable in terms of emotions.
Steve jobs – He is the successful entrepreneur in the business environment. Below
mention are thinking, feeling and behaviour :-
 Thinking – They think like proper business man because of their successful entrepreneur
nature.
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 Behaviour – Steve Jobs is risk taker in nature because he always try to come with
something new and innovative in market.
Bill gates - Bill gates is one of the most successful entrepreneur of the 20th century. He
dropped out from his college in 1974 and developed a software company.
TASK 4
P7 Background and experiences which can hinder or foster entrepreneurship
In this modern world number of individuals are coming with unique ideas for gaining
maximum benefits by capturing the attention of various consumers. Every individual is having
their own motive and experience for engaging in several activities. Number of persons was
presented as successful entrepreneur in front of the whole world because of their knowledge,
talent, experience and so on. But their inspiration are distinct from each other such as; few
members are getting motivated with their families whereas some gets demotivated. It shows that
family background are having major impact on success of a person as it plays a major component
in an individual life. For instance; Simon Philip Cowell is most successful entrepreneur in music
industry and famous for its talent as well as marvellous personality as it may attract entire society
(Daneke and Lenox, 2010). But at the same time one thing is also determined that his mother
Julie was also a ballet dancer whereas his father was an estate agent, property developer as well
as executive in music industry. Thus, it shows that Simon Cowell can also get inspired with his
mother as she was already in music industry. Hence, it shows that this successful entrepreneurs
are fully get motivated with his background and become one of the most talented reality
television judge by his outstanding work.
On contrary to this, another various examples of entrepreneur are identified that person
also get demotivated with their family such as; if parent of a person are belong from gangster
then they their coming generation can automatically engaged in that. It shows that family
background or experiences are encouraging people either towards corrective path or wrongful
direction which hamper their career. At the same time it is also observed that if a person is
having a very good experience in their past then they cannot work hard more or more. On the
same time, if a person was encountered numerous of life problems while working or any thing
then sometime they get motivated to do something unique. But some people are getting
demotivated and don't even want to do any of the activities.
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Throughout this assessment it has been analysed that background and experience are
having a major influence on individual perspectives and opinions. There are number of reason
behind impact of background that is; parents are first teacher of every child and liable for
directing a youth towards corrective path. Whereas, experiences are also playing major role in
redesigning the mind of a person in various manner either in positive way or negative manner.
CONCLUSION
From the above assignment it has been summarised that, entrepreneur is a person who
takes risk while implementing their ideas and thoughts for the development of their own
business. Success of an enterprise is based on skills, knowledge and abilities of entrepreneur.
Entrepreneurial ventures are increasing day by day due to the high level of market opportunities
for business expansion. Through this, an entrepreneur can maximize organizational revenue in a
defined time frame. Now a days, men and women both are also engaging in establishing high
tech business at marketplace for generating maximum revenue as well as establishing a
benchmark for others. They always set a benchmark for others by their own abilities and working
practices.
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REFERENCES
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Macmillan.
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educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
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Small Business Management, 49(1), pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
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