Entrepreneurship and the Small Business Management | Assignment

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Mini research to examine different types of entrepreneurial ventures and their typologies.3
P2. Similarities and differences between entrepreneurial ventures..............................................4
LO2..................................................................................................................................................7
P3. Impact of micro and small business on economy with relevant to statistics data..................7
P4. Importance of small business and business startups contribution to growth of social
economy after Brexit....................................................................................................................8
LO3..................................................................................................................................................9
P5. Characteristics, traits and skills of two successful entrepreneurs..........................................9
P6. Aspects of entrepreneurial personalities that reflect entrepreneurial motivation and
mindset. .....................................................................................................................................11
LO4................................................................................................................................................12
P7. Examine background and experience hinder and foster entrepreneurship..........................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
Online.........................................................................................................................................15

INTRODUCTION
The term entrepreneurship refers to as capacity to develop, organize and manage business
ventures that includes large number of risks which in turn leads to maximum profit (Atkinson
and Storey, 2016). Small business refers to as enterprise that is owned privately , partnerships or
sole proprietorship. These business ventures have fewer employees and less annual revenue as
compared to regular sized business or corporation. Thus, following report discusses about
different types of entrepreneurial ventures and typologies along with their similarities and
differences. It also highlights on impact of small and startups on growth of economy in UK with
help of relevant statistical data. Furthermore, characteristics, traits and skills of two successful
entrepreneurs has been discussed in the following assignment.
LO 1
P1. Mini research to examine different types of entrepreneurial ventures and their typologies.
The term entrepreneurship is referred to as the process in order to design, launch and run
new business which is a small business and the one who creates this type of business are known
as entrepreneurs (Burns, 2016). Entrepreneurial ventures is focused mainly to provide advisory
services to the companies. Thus, it varies depending on stage of a particular company.
Furthermore, different types of entrepreneurial ventures are discussed as following-
Small business entrepreneurship- Small business is that which is owned and managed
individually (Storey, 2016). It is limited in size and has direct owners that influence in decision
making and has relatively small market share. They are either services or retail operations such
as grocery stores, trades people, bakeries and small manufacturing units. Such type of enterprise
requires less capital and fewer workforce (Definition of Small-Scale Enterprise, 2018).
Medium scale business- Medium scale business results from slow and steady growth. As
once company earns more revenue they keep that capital aside for future and better investments
in buildings, equipment and more employees. This type of business builds the gap between small
scale and large scale organizations. These companies play vital role in development of economy
by generating large number of employment opportunities.

Large scale business- this refers to factories that consist of a combination of three
factories such as machinery, employment of wage labor and regulatory measures means factory
act or dispute act. This type of organization has large number of employees that operates in great
number of business at daily basis. Thus, it requires huge amount of capital to invested and
provide many jobs to employees.
TYPOLOGIES OF ENTREPRENEURSHIP
 Social entrepreneurship- It is most basic level of doing a business for a social cause. It is
an organization that applies various strategies in order to maximize improvements in
social, financial and issues of environment. Social enterprise improves lives of people
that are involved in social case. Thus, to earn maximum profit is not their prior goal but
to improve the whole world is the only objective of social enterprise.
 Serial enterprise- The one who comes up with new and innovative ideas and starts a
business are termed as serial entrepreneurs. They are the one who will start a new
company and play critical role in functioning of new company on daily basis.
Furthermore, they start business and then move to another one by selling it off. It can be a
positive thing if individual acquires lots of unique ideas to start a new venture with help
of creative mind.
 Scalable entrepreneurship- It is an important factor for entrepreneurs in case of starting
new business or taking the existing business to next level. It means that company has a
potential to increase the revenue with help of limited incremental cost. Thus, it takes an
innovative ideas and researches for repeatable business model that results into high
profitability. It is a newly emerged business that aims in developing viable business
model in order to meet various problem in market. This type of business mainly focuses
on quality in creative aspect of business.
P2. Similarities and differences between entrepreneurial ventures.
An entrepreneur refers to the person that sets up a business by taking various risks
including finance in order to earn profit. They are one who starts and operates business with
limited resource and planning (Cooper, Hartley and Harvey, 2018).

SIMILARITIES-
An entrepreneurial ventures refers to usually a startup and early stage company. It is
designed with a view of achieving growth in mind and employs collection of resources. The
main motive is to achieve high percentage of profit and generates employment that helps in
increasing economic development of UK. Entrepreneurial ventures are designed from inception
with growth in mind and often employs collection of resources that is not controlled by founder.
To run any type of business is a practice that makes man perfect and helps them in facing every
type of challenges coming in enterprises. Thus, differences has been discussed in following table
as are-
Bases of differences Small scale
enterprise
Medium scale
enterprise
Large scale
enterprise
1.Meaning This type of business
enterprise employs
small number of
people and does not
larger sales.
These are non
subsidiary
independent firms that
employ fewer than
given number of
employs.
These type of
organizations have
management
functions such as
operations, finance,
human resources,
marketing, research
and development.
2.Number of
employees
There are 10 to 50
employees involved
in small scale
business.
There are 50 to 250
employees involved in
such type of
enterprise.
There are more than
250 employees
involved in large
scale organizations.
3.Decision making
process
Decisions are made
easily in these type of
enterprise as it consist
of less number of
employees.
In these enterprises
decisions are made at
point of urgency.
Large scale
organizations
require longer time
to take decisions.
4. Risk taking They can’t afford risk
as they run business
They cant afford risk
as they are guarded of
They can afford to
take bigger risk

on a small scale and
consist of less
members in the
enterprise..
negative
consequences as
investments don’t
bring back the returns
that affect their
operations.
during business
operations.
5. Process This is an informal
process as people get
things done in such
enterprise.
It is a formal process
as people get many
things done in this
enterprise.
It consist of formal
structure and
process. Most
people play
independent role
over here.
6. Customer base It consists of small
customer base with
generally local
markets.
It consists of limited
customer base.
It consists of
diverse markets
along with diverse
customers.
7. Career
development
opportunities
It consist of limited
personnel
development
opportunities
In such enterprise
there are limited
opportunities.
There are multiple
opportunities as it
includes multiple
career development
paths and programs.
8.Equity held by In this type of
organizations, equity
is held by founder or
family.
Here equity are most
privately held.
In large scale
organizations
equity is held by
public investors
mostly.
9. Managed by It is managed by
individual itself.
It is managed by
owners and some
professionals.
It consist of only
professional
management.
10. Decisions made In this enterprise,
decisions are made
Here decisions are
made by owner and
Here it involves
distributed decision

largely by owners of
the business.
some key leaders
involved in business.
making by
organizational
hierarchy.
LO2
P3. Impact of micro and small business on economy with relevant to statistics data.
Small business are privately owned organisation which includes service or retail
operations like convenience stores, grocery stores etc (Cowling and et.al., 2015). micro
enterprise is that business that employees less than 9 employees and has balance sheet less than
certain amount. Medium sized business is that type which has employes which are fewer than
250 and has annual turnover of not more tham 50 million euro. Micro and small business plays a
vital role in increasing economy of UK. Thus, according to statistical data it has been analyzed
that small business account ted for 99.3% of all private sector business at start of 2017. And
there were 99.9% small and medium sized business. Total employment in SMEs was 16.1
million were 60% of all private sector employment was in UK. There were 5.4 million SMEs in
UK in 2016. And there were 5.3 million of micro business in UK. Thus, this business only
accounts for 32% of employment and 19% of turnover. The combined annual turnover was $1.8
trillion where 47% of all private sector turnover in UK.
The fact is that number of business is increasing that results in more opportunity for the
youth. Furthermore, it has also been analyzed that revenue earned by small business has great
impact over UK economy (Epstein, 2018). It is estimated from statistical data that more than 27
million people are employed under small scale business which includes both men and women.
The numbers of workforce employed in such business are 25.7%. Hence, it signifies the fact that
small business has great impact as compared to large scale organizations. Many small and micro
businesses are opening up significant opportunities for local and regional population of UK. At
start of 2017, there were 5.7 million private sector businesses which was an increase from year
2000 and 2016 where there were 2.2 million and 197,000 respectively. The number of employing
business raised by 41,000 i.e. increase of 3% since 2016. As compared to this, number of non

employing business raised buy 155,000 that is increase of 4%. Furthermore, total number of
employment in small size business was 16.1 that means 60% of all private sector
In 2017, the employing and non employing business were 1.3 and 4.3 million
respectively. And from 5.7 million businesses, 45% were registered for VAT and PAYE. There
has been a sustained growth in total population of business. It has been asserted that creativity
and innovation is important in small scale business as it plays crucial role in order to increase
growth and sustainability. Therefore, small business of UK have been developed various creative
and innovative ideas and techniques that leads in acquiring business and leadership in market.
Figure 1 : Statistical Data
(Source: United Kingdom GDP Growth Rate, 2018)
P4. Importance of small business and business startups contribution to growth of social economy
after Brexit.
A start up is started by individuals in order to search for repeatable and scalable business
model (Giaoutzi, Storey and Nijkamp, 2016). As discussed before, small scale business plays a
crucial role in UK in order to achieve economic growth and sustainability of a country. The large

numbers of population in UK are working or employed by small business and startups. And in
this way it act as a core generator of employment in the industry. Due to this the flow of cash
becomes effective as they open significant opportunities for local and regional population of UK
as well. Therefore, by keeping these facts into mind, it becomes clear without any doubt that
small business and start ups are one of the main component and backbone of economic growth
and sustainability in UK. Brexit means British exited from European Union that caused
European pound to fall at lowest level against dollar in 30 years.
Furthermore, to assess impact of Brexit on small and startups of business, it has been
analyzed that by a major Government survey of 10,000 UK small scale business. New jobs and
opportunities are created by small business without keeping any type of a doubt. This in turn
leads to higher economic growth of country. Thus, the small business of UK is not only involved
in economic growth of a particular country but also plays important role in modernizing entire
UKs financial structure as well as their standard of living. Innovative and export oriented SMEs
seem particularly concerned about ramifications of Brexit. In addition to this, Brexit related
concerns are not uniformly felt across UK. Therefore, it was also examined that Brexit mainly
affected SMEs. And it was likely to result in lower levels of capital investment, reduced access
to external finance, reduced innovative activity and lower level of growth. As number of self
employed workers in UK increases, those that are offering retail services may not be able to
afford have a physical shop front and their services may be better offered online.
This study also shows negative effects as it is said that Brexit is having material effect
with SMEs as on mangers and entrepreneurs’ behavioral expectations. Hence, by understanding
entire facts, it becomes clear that contribution of small business and business startups plays
crucial role towards social and financial economy of the nation. Factors that help in growth of
social economy are as below-
1. Reduction in poverty- small business invite unions at their workplace which helps in
reducing poverty. Thus, small business plays vast role in generating employment for
people and creates income that increases standard of living of people that later leads in
reducing poverty.

2. Employment- small business generates employment for them who need that. This helps
in extreme growth of economy in UK.
Importance of small businesses & start ups to the growth of the social economy
Small businesses and start ups highly contribute to the growth of the social economy, it
helps to increase job opportunities within a country or region. Increased jobs help people of
community to live a balanced life and improved living standards. The Social economy is
growing as government supports social enterprise such as NGO’s, Old age homes etc. These
organizations assist in improving health of citizens living in a community or country. The social
enterprise also plays a vital role in delivering Corporate social responsibility of Larger
organizations.
LO3
P5. Characteristics, traits and skills of two successful entrepreneurs.
Successful entrepreneur means more than starting a new business every other day. It
means having perfect attitude and determination towards business and achieving targeted goals
(Guerrero, Cunningham and Urbano, 2015). Such entrepreneurs have strong drive inside them
that helps them to achieve great success. Thus, the characteristics, traits and skills of two
successful entrepreneurs have been discussed below-
Sir James Dyson
Sir James Dyson is a British inventor and industrial design engineer. He is a founder of a
Dyson company. He is known best for inventing Dual bag less vacuum cleaner. The
characteristics, skills and traits of Sir James Dyson is described below-
Characteristics-
 He is innovative and creative in areas of design and engineering and improves things that
are used in daily basis.
 He embraces failures which in turn allow him to learn and achieve progress in life.

 He has a passion of investing stems from frustration and hunger in order to develop
something that works really better.
Skills-
 He has a willingness in order to take any type of risk as he likes living on edge.
 He is mainly focused on making their business work.
 He always tries doing new things even if he fails and finally after some time achieves
success.
Traits-
 He is concerned with his status and fosters the appearance of success and self-
satisfaction.
 He is a born leader having extra ordinary drive and determination.
 He is ever striving and has ambitious and determined personality to do things well and
dedication towards plans till he achieves great success.
Richard Branson
Sir Richard Branson is a British entrepreneur and adventurer. He is a head of virgin group
that controls more than 400 companies. His first business venture at age of 16 was a famous
magazine called Student. The characteristics, skills and traits are discussed below-
Characteristics-
 He creates his own luck by taking calculated risks in order to open a door towards the
change.
 He thinks big by taking a particular idea and implement it.
 He is able to listen to feedbacks of customers and take it into consideration by applying
their thoughts into business.
Skills-

 He has an ability by looking from point of view of customers and seeking feedback by
listening them and make changes accordingly.
 He always breaks the rules and move forward to improve as a company.
Traits-
 He always listens to other people working around him and seeks opinions and views from
various peoples.
 He creates unity in his team and work accordingly because he believes that successful
leader is nothing without its followers.
 He creates fun working environment for the people working around him so that they feel
good and motivated while working.
Thus, these entrepreneurs are different from managers as they have unique quality of
respecting employees or staffs that are working under them (Herndon, Ash and Pollin,
2014). They motivate staff by behaving friendly with them that helps them to put their
efficient efforts and achieve objective. Workers feel free to share their feelings and ideas
with them. These successful tycoons listen and take their ideas into action. These
qualities make them different from others.
P6. Aspects of entrepreneurial personalities that reflect entrepreneurial motivation and mindset.
There is a correlation between entrepreneurial personalities towards entrepreneurial
motivation and mindset (Kierzenkowski and et.al., 2016). Successful entrepreneur includes
ability to innovate, risk taking, development and implementation of new ideas and even
acquiring dynamic leadership and management skills. By taking this aspects into consideration it
becomes clear that an entrepreneur is an individual who reinvents to become competitive from
time to time. Personality is formed mainly from childhood. Thus, external environment where
they grew also affects the personality of an individual. Thus, individuals that are bought up in
creativity and full of freedom environment have shown traits to leadership and management
compared to them who are bought up in strict environment. In addition to this, profit is not the
main motive of entrepreneurs but realizing the idea becomes main motive. Therefore, certain
personality traits of entrepreneurs are closely related to entrepreneurs’ motive of realizing ideas.

While certain traits are related to their motives. Thus, it is important to have both motivational
structures and personality traits in order to understand mindset of an entrepreneur. Further, it is
also important that individuals with such positive personality trait acquire high skills in order to
understand their followers which in turn help in contribution of overall mindset and towards
motivation of entrepreneurs. Thus, big five personality models is used that identifies five types of
personalities and one individual falls in at least one.
1. Open- It enables to understand the frankness of an individual, its original behavior and
willingness to take risk. It reflects a motivated entrepreneur and a clear as well as
confident mindset.
2. Conscientious- it is that level where person is careful, cautious and honest. It is tendency
of focusing on achieving targeted goals, acting dutifully and give priority to plans. This
personality trait helps a person to gets motivated but with less confident mindset as an
entrepreneur.
3. Extroverted- it is tendency that helps in exploring positive energy, stimulation in
organization with others and talkativeness nature. Individual that has positive state of
emotions are extroversion. This personality trait represents an entrepreneur who motivate
others to achieve success. The mindset of these types of entrepreneurs is to attain success
through high motivation.
4. Agreeable- it is an attitude of behaving cooperative and compassionate towards each
other. To get along well mannered is the tendency.
5. Stable- it is an attitude that vary nervousness with confident one. Being bias and
experiencing unpleasant emotions easily is the tendency.
For example – Richard Branson was a risk taker which shows his personality that he was a fearless
entrepreneur who tries to innovate things without getting confused or afraid of the outcomes. It also
represents that he was confident as an entrepreneur. This personality reflects that Richard was highly
motivated to develop new things and ideas related to his entrepreneurship and organization. It also shows
he had a clear mindset which makes him confident about his decisions. On the other hand, Sir James
Dyson was forced to be an entrepreneur due to his poor and difficult family background, he was not much

confident about his entrepreneurship and decisions that reflects conscientiousness which ultimately
helped him to gain success.
LO4
P7. Examine background and experience hinder and foster entrepreneurship.
Actually, there is a close link between entrepreneurial characteristics and background of
individuals and sometimes such factor has become the factor of hinder (Mariotti and Glackin,
2014). When it comes to business and decision-making process, the approach of each
entrepreneur is different. This is due to personality traits and skills they acquire by time and their
past experiences of life (McCombie and Thirlwall, 2016). Thus, in formation of an individual
personality education and life experience plays an important and critical role. It has been pointed
that traits that includes self motivation, self management and coordination is very much
important for an entrepreneur to achieve success and self reputation. Hence, such qualities are
achieved by various factors such as education and experiences. This makes individuals to face all
type of tough challenges in their way.
For example- the most successful businessman of UK and founder of virgin group Richard
Branson says that he achieved ability of risk taking from his experiences he faced in his past.
According to Sir Richard Branson, with every challenge, there is a new opportunity waiting for
an individual. The concept of risk carries tremendous opportunity and challenges as it is one of
the profound character traits in an entrepreneur who is successful worldwide. Therefore,
individual who are starting a new business startup, he has to face risk as risk is the fundamental
factor faced by them.
Sir James Dyson
James was a student of Boarding school and also studied painting. He has switched
himself later in furniture designing. His grandfather and father were principals in school. His
father was died when he was child. He had faced many challenges and by part of his wife salary
he invented first dual cyclone vacuum cleaner which wasted 15 years of his life. This made him
successful. He always uses failure to drive success. He states that failure is a part of making
progress.

CONCLUSION
Thus, from above report it has been analyzed that small business plays significant role in
raising economic growth of UK by increasing the amount of employment generation. It also
discusses concept of entrepreneur and entrepreneurship in adequate manner. The above report
also highlights on the relation between background and past experiences with help of a example
of Sir Richard Branson that if person accepts challenges in life, various opportunities open their
ways that leads in achieving success. Finally, conclusion seen is that managing small business is
not as same as managing larger organizations because small enterprise involves limited
employees and there is larger number of employees in large organizations.

REFERENCES
Books and Journal
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demand: a study of firms. Routledge.
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Higher Ed
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Online
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