(Doc)Entrepreneurship and Small Business Management

Entrepreneurship and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different kinds of entrepreneurial ventures in context with the typology of
entrepreneurship.....................................................................................................................3
P2. Similarities and difference between entrepreneurial ventures.........................................5
TASK 2............................................................................................................................................6
P3. Interpret relevant data and statistics to illustrate how micro and small-business impact on
the economy............................................................................................................................6
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy.......................................................................................................................8
TASK 3............................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs............................................9
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset..................11
TASK 4..........................................................................................................................................12
P7 The way in which background and experience can foster entrepreneurship...................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurs are those individuals who makes the decision, organise all the activities
and handle all the operations so as to gaining growth and profitability. Apart from that,
entrepreneurship is a venture which is set up by the individuals through taking risks of failure.
Some of these ventures are established for solving society problems like poverty, unemployment,
improving standard of living etc. Entrepreneurial ventures provides too much beneficial results to
the society in the form of providing employment to the local citizens so that they can live their
life in an easy manner (Shane, 2012). Present report will talk about the different kind of
entrepreneurial ventures along with typologies of entrepreneurship. Furthermore, value of small
medium start-ups in growth or development of social economy. Two entrepreneurial personality,
skills and knowledge which makes them successful. In the last, report will discuss about
backgrounds and experiences of entrepreneurs that have hinder or foster them for becoming a
successful entrepreneur.
TASK 1
P1. Different kinds of entrepreneurial ventures in context with the typology of entrepreneurship
Entrepreneurial ventures are established or setup by those individuals who have specific
ideas or skills that are used by them for earning profitability. Main purpose behind establishing
these organisation to offers great economic or social value for the customers. Some of these
ventures along with typologies are given as below:
Scalable start-up entrepreneurship- In this kind of ventures, entrepreneurs generates
innovative ideas and plans so as to gaining profitability and satisfying the needs of customers.
Entrepreneurs of these types have strong confidence and believes that their ideas can make
modifications in the business market. They always looking for different investors who are ready
for investing money. Apart from that, these ventures mainly focuses on those candidates who
have lots of skills and knowledge that can helpful for them in gaining competitive advantage
over their rivals (Chrisman, 2012).
Small business entrepreneurship- In it, all functions or operations of ventures are
managed by single individual. Main example of these entrepreneurial ventures are grocery stores,
plumbers, hair saloon etc. This kind of ventures can be run with the family members and

relatives. In order to starting these ventures, lower amount of funds are needed and growth of
these are also slow in comparison of other businesses.
Large scale entrepreneur : These entrepreneurial ventures mainly focuses on achieving
profitability along with distributing new products to their customers. These are the one who are
operating their functions at large scale and having capabilities to bringing innovation and
offering new products to the customers as per their demand. Due to changes in preferences of
customer, new techniques, rival's strategies provides too much pressure on these ventures so that
they have to launch new products in new markets. Sometimes, these kind of changes negatively
influences on the profitability of these ventures (Shane, 2012).
Social entrepreneur : These are those ventures who mainly focuses on satisfying the
needs and desires of those customers who are not capable or having no ability to earning money.
These are entrepreneurs whose focuses is to making those products or services which can easily
solve the needs and wants of societal citizens. Main objective behind establishing these
entrepreneurial ventures are to creating a better environment in society which has no inequality
on the based on income level. They also wants to earning profitability but they spends these
profits on the betterment of society.
Typology of entrepreneurship :
Serial entrepreneur : Entrepreneurs with having this kind of typology use their lots of
ideas for establishing new ventures so as to bringing their ideas into reality. But they starts new
ventures when they gets success from previous ventures.
Female entrepreneur : Female entrepreneurs are those who use their thinking,
perceptions and beliefs for achieving their business objectives. They also engage themselves in
various programmes and policies so that better environment can be provided to the females.
Female entrepreneurs organise all aspects of production, takes risk and perform work for the
betterment of society.
Social entrepreneur : This kind of entrepreneurs are those individuals who have
innovative ideas and wants to implement them for the betterment of society. For e.g. poverty or
inequality is a problem in which these entrepreneurs provides needed products and services at
affordable prices so as to solving these problems.
Lifestyle entrepreneur : These entrepreneurs are the one who starts business ventures
for fulfilling their passion or hobby. These kind of ventures are established by some successful

entrepreneurs of business world who have already earned name or fame in other sector but
started this venture for completing their dreams. These kind of entrepreneurial ventures are not
established for earning profits whereas, they are setup for raising life standard of societal
citizens.
P2. Similarities and difference between entrepreneurial ventures
Entrepreneurial ventures are those organisations which can be established in easy manner
with few amount of funds and resources (Scarborough, 2016). Apart from that, owners of these
ventures have responsibility to tackle the challenges so that better growth or sustainability can be
achieved. Differences or similarities between these ventures are given as below:
Types of enterprises Similarities Differences
 Small v/s Large
business enterprise
 Firms whether they
operating at small or
large level they mainly
focuses on fulfilling the
needs and wants of
their targetted
customers.
 Apart from that, all
these kind of firms
operate their functions
in smooth manner so as
to generating
profitability and
achieving preset goals.
 Main difference
between these
enterprises can be done
on the basis of financial
aspect such as, large
enterprises requires lot
of funds for functioning
of organisation in
smooth manner.
 Whereas, small firms
needs low amount of
funds for operating
whole functions.
Social v/s Scalable enterprise  Main similarity
between these
enterprises is that they
both performs all their
functions for providing
benefits of societal
 Main mission of social
entrepreneurial
ventures is to deliver
social welfare of the
citizens of society.
 While, scalable

citizens.
 They both generate
new and innovative
ideas for raising life
standard of citizens of
society.
 Their objectives are
also same because both
these ventures focuses
on the needs and wants
of their targetted
customers and develop
new and innovative
ideas so that it can be
satisfied in a short time
period.
enterprises generates
new ideas and provide
employment to the
needy citizens of the
society so that their life
can be spent
peacefully.
TASK 2
P3. Interpret relevant data and statistics to illustrate how micro and small-business impact on the
economy
It has been identified that small and medium business organisations are very important
part of a nation's economy and also helps the government of nation in taking growth in
international growth. As per the financial report of UK government, there are 87% of
contribution is received from small and medium business enterprises in the wealth of UK nation
(Nga, 2010). There are approx. 5 million small or medium business ventures who are operating
their business activities in UK and their contribution in the productivity of UK is around 47%.
These enterprises not only provide contribution in the wealth of nation but also provides job
opportunities to the citizens. Therefore, the small and medium firms are rapidly growing in UK
nation. These firms plays a major role in development of UK in terms of providing employment
opportunities to the citizens of nation and filling tax on time. Tax duties which are received by
UK government are used by them in enhancing per capital income and industrial growth of

country. With the help of these tax duties, Government of UK has also initiated some policies for
the betterment of society. Impact can be understand by some points which are given as below:
Employment Generation- Without human resources a firm can't perform its essential
operations and activities therefore, eligible workforce is essentially required by each firm. In
SMEs, entrepreneurs prefers those candidates who are knowledgeable and aware regarding the
needs of local citizens so that through fulfilling specific requirements of citizens firm can take
growth or sustainability in local market. So that, it can be said that by recruiting local individuals
these organisation provides huge support in the wealth of UK nation in terms of offering
employment opportunities.
Contribution to Innovation- These ventures perform their operations at small scale so
they mainly focuses on developing new and innovative products so that needs of societal citizens
can be fulfilled in effective manner. These organisation also supports to larger companies in form
of providing valuable raw materials so that their production process can be completed properly.
Therefore, it can be said that small enterprises not only support in wealth of nation but also
supports to big organisations in making innovative products so that better satisfaction can be
provided to the customers.
Infrastructure development - All business ventures whether they operate their
operations at small or large level in UK both are liable to engaging themselves in CSR activities
which mainly consists of construction of roads, hospitals, community houses etc. when better
contribution will be received from Small enterprises then it automatically builds better
infrastructure in UK nation. Hence, it can be said that all small business ventures of UK provide
their support in infrastructure development (Ligthelm, 2010).

From the above graph, it has been observed that SMEs are providing too much support to
the UK government in generating employment opportunities, development of infrastructure etc.
These kind of organisations also providing assistance to government of UK in building their
image as an innovative nation.
P4. Explain the importance of small businesses and business start-ups to the growth of the social
economy
For maintaining the economic growth of nation, it is very essential for the governmental
authorities to provide reliefs and subsidies in setup of small business ventures so that better
innovative ideas can be gained from them which leads the nation in developing its image as an
innovative across the world. Some main importance of small business are given as under:
Local hiring: Small organisation operate their functions at local level in which they
mainly focuses on satisfying the needs of local citizens and their family members. They also
provide a lots of job opportunities for each individual of society so that their better knowledge

and skills can be used for developing innovative ideas. Therefore, it is more strengthen technique
because it support the nation in improving economic condition.
Innovation- New and innovative ideas is the most essential requirement of each firm so
as to sustaining themselves in competitive marketplace. With the help of innovative ideas, small
firms can easily enhance their market share and revenue figures in marketplace. When the
revenue figures of these ventures will be enhanced then it automatically leads the nation towards
gaining high tax duties.
Uplift the standard of living: When local citizens perform the work of small and
medium enterprises then it will raise the standard of living. With an increment of per capital
income, large tax duties will be received by UK government from the citizens of nation and
when these small ventures take growth then other human resources will be required. Therefore, it
can be said that these ventures provide support to the societal citizens in uplifting their standard
of living.
Sustainability- Venture of small kinds always trying to getting sustainability in the
marketplace due to which they provides offering at lower prices to their customers. All these
activities of small ventures supports the nation in making healthy environment in society. So that,
firm can achieve better sustainability in marketplace.
As the big firms are not so much in numbers then the tax duties which are received by
them are also low in the comparison of small firms. Therefore from the above points, it can be
said that small business enterprises not only support the nation's government in the form of tax
duties but also providing high employment opportunities to the citizens of nation.
Impact of SME on Economy
Small and medium size organisations plays a major role in development of economy of each
nation. These firms provides high supports in economic growth of nation which can be
understand as below:
Micro firms mainly supports the local economy because they performs their business operations
at small level. These firms also provide higher employment opportunities to local individuals for
improving their living style. At regional level, they supports the societal individuals in raising
their standard of living and at national level they pays tax duties on time so that economic growth
of nation can be maintained effectively. Whereas, at international level these firms are in large
numbers and providing quality products in marketplace due to which a tough competition is

faced by MNCs in marketplace. Apart from that, government imposed strict regulations on the
small firms due to which their surviving capacity in market is lower than MNCs
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
An entrepreneur is a person who develops innovative ideas and establish a business setup
so as to modifying its idea into reality. They generally focuses on making those products or
services which has not been seen or implemented by anyone in the world or something else
which can bring improvement in the existing marketplace. Skills, knowledge and traits are very
essential for entrepreneurs because it helps in removing poverty and unemployment from the
society. Successful entrepreneurs which are taken in this report as an example are Philip Green
and Richard Branson who have started their business with lower amount of funds and resources
but in present they have achieved growth and success across the world. Traits,skills and
characteristics of these entrepreneurs are given as below:
Traits
 Confident: Philip and Richard both are having confidence in their developed ideas due to
which they have achieved success in market.
 Disciplined: Both entrepreneurs are highly disciplined for their working as they divided
their personal and working life from each other. Main reason behind failure of various
entrepreneurial ventures are that most of entrepreneurs distract from their objectives. But
both entrepreneur have set their targets and they perform all functions accordingly due to
which they have achieved success in a specific time period (Karlan, 2011).
Characteristics-
 Passionate: It is very necessary for each entrepreneur are passionate towards pre
determined goals so that better growth or profitability can be achieved in a specific time-
frame. This characteristic also differentiated the entrepreneurs because with the help of it,
they can easily getting success in marketplace.
 Risk taking: It is also an important characteristic which assist the entrepreneurs in
achieving success in a small time period. Richard and Philip also faces various risks in
starting of their career like availability of funds, changing of the market trends etc. But

for achieving success they have taken risk and as a result of it, they are now known as
most successful entrepreneurs across the world.
Skills -
 Decision making: The taken entrepreneurs are good in taking their decisions for the
business due to which they have prepared good decisions according to situations that
have assisted them in gaining growth and success in marketplace. Problem solving: These skills are also present in Branson and Green which helped them
in resolving the issues of the business. This skill have also helped them in making
positioning of their firm in front of their competitors.
Differentiation of characteristics of entrepreneurs with business managers
Characteristics/skills Entrepreneur Business managers
Delegation It is very necessary skill which
is used by the entrepreneurs in
segmenting the complex
activities into small
components so that preset
activities or functions should
be functioned in smooth
manner. Richard and Branson
both have such skill due to
which they have achieved
growth and success in the
market.
Whereas, Business Managers
have not these kind of skills
and they take support from
Work break down structure for
dividing the activities of
organisation among the
employees.
Critical thinking Entrepreneurs needs to take
effective decisions using this
skills so as to taking
competitiveness in
marketplace. With the help of
these skills both of the
entrepreneurs like Philip and
Whereas, managers builds
effective relationship with their
workers so that better ideas can
be generated within the firm
which leads the firm towards
gaining competitive advantage
in market.

Branson have positioned their
firm in a good condition in the
market.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
Mentioned Below is the big five model of personality which is utilised by the people and
firms to determine the personality and behaviour. Model is given as under:
 Openness to experience: In order to achieving better growth and sustainability in
market, entrepreneurs needs to have open mind in order to catch the new changes in
technology and market (Bruton, 2010).
 Conscientiousness: Entrepreneurs should have mind of conscious nature so that all
activities can be performed in planned manner. Richard and Philip both are very hard
working and always made focuses for achieving preset goals.
 Extraversion: Due to presence of this characteristic in personality, Entrepreneur can take
better contribution from their teammates so that goals of firm will be achieved in easy
manner.
 Agreeableness: These kind of skills are most essential in personality of entrepreneurs
because it guides them in gaining better new and better innovative from the employees so
that betterment of firm can be possible in a short time period.
 Neuroticism: Entrepreneur should implemented these skills because it will helps them in
making better environment at workplace. By making better environment at workplace,
entrepreneurs can easily maintain the positive image in adverse situations.
TASK 4
P7 The way in which background and experience can foster entrepreneurship
Background and Experience provides too much support to the entrepreneur in working.
Through the experience and Background of past entrepreneurs can manage the problems and
risks which arises in their working. These are very important as they helps entrepreneurs in
getting involvement in each functions of firm so that better outcomes will be received in future.
Past experience and Background of the taken entrepreneurs i.e. Philip and Richard have provided
too much support in removing the challenges and issues from their workplace and professional

life because of which in present, they both are known as most successful entrepreneurs across the
world.
Philip Green
Background: He was born in England in the year of 1952. His father was working as a
property dealer in England at that time and in his mother was unemployed. He was also having
an elder sister, when he was 9 years old his father had sent him into Jewish Boarding school. His
father expired at the age of 12 due to cardiac attack. After it, when he was 15 years old he has
started his career at shoe importer. He has desire from his younger age to become successful
entrepreneur because of which he had taken the position of chairman of Arcadia group but after
24 hours he had gave this position to his wife started acting as CEO of Group (Ackermann,
2012).
Experience: At starting of his working career, Philip has also faced numerous problems
like availability of funds, unsupportive nature of relatives and friends. He was also dropped out
from school which has restricted him in achievement of goals. But he stay motivated due to
which he had overcome all these challenges and he gets successfully positioned himself in the
market.
Richard Branson
Background: Richard was born in London and was the first child of his parents. He also
had two siblings. His father was working as a lawyer when he was born and his mother was
serving the customers as an air hostess. He always desired to become business person due to
which he initiated his first startup at the age of 16. He was also provided with the reward of best
entrepreneur at the Buckingham palace for providing better services to the customers.
Experience: In his childhood, he was patient of dyslexia disease. His educational
performance is also not satisfactory due to which teachers also told him that either you will go to
jail or you will become business man. His Mother was also an entrepreneur because of which he
has start up his new venture in his young age. His personal problems acted as barrier in
performing better but his hard work pays off and he had easily resolve these difficulties.
From the above experience and background of entrepreneurs It has been identified that,
both of entrepreneurs have take too much support from their past experience and backgrounds in
decision making as per the situations. Both of the entrepreneurs had learned new things such as
time management and breaking down the activities in their whole career so that whole activities

should be managed in timely manner. They both have started their business operations with a
lower amount of funds due to which most of their colleagues have trolled and criticised them.
But they have ignored all these factors and have make focus on their targets because of which
now they called as successful entrepreneurs across the world (Dennis Jr, 2011).
CONCLUSION
It has been concluded from the above report that small and medium sized entrepreneurial
ventures provides too much support in the wealth of nation. Small business organisations are
very much important in the society because it provides huge tax duties and employment in the
society so as to improving wealth of nation (Scarborough, 2016). It has been also analysed that
entrepreneurship is an important tool because it creates various job employment opportunities in
society and raising standard of living. Description of past background and experience also
defined that without having specific skills, traits, and characteristics any entrepreneur can't gain
growth and success in market.

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