Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses different types of ventures and their impact on the economy, the characteristics of successful entrepreneurs, and how background and experience influence entrepreneurship. The document also explores the mindset of entrepreneurs and the differences between entrepreneurs and managers.

ENTREPRENERUSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
Different types of ventures and their impact upon the economy.................................................1
Comparison between enterprises.................................................................................................2
Impact of different business on economy....................................................................................3
PROJECT 2......................................................................................................................................5
Entrepreneur Mind-set?...............................................................................................................5
The characteristic traits, skills of successful entrepreneurs.........................................................5
Difference between characteristics of successful Entrepreneurs and Managers........................7
How background and experience influences entrepreneurs: Local Entrepreneur.......................7
How background and experience influences entrepreneurs: Social Entrepreneur......................8
How background and experience influences entrepreneurs: International Entrepreneur............9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is termed as a procedure in which different steps like initiation, designing,
launching of a new business venture is being done with the assistance of innovation and unique
ideas. Main aim of this is to serve society with something unique and a willingness to gain more
market share (Heider, Dinther and Hülsbeck, 2020). In order to conduct this process entrepreneur
willingly undertake risk associated with launching of new business venture in order to gain
maximum rate of profitability and value from them. In this individual effectively engage in the
functions of innovation of offering new service or product by taking use of new ideas. They have
motive for long term sustainability and provide economic advantage to a country. With the
contribution of entrepreneurship nation can assure maximum revenue generation that
automatically enhance their GDP ratio. Entrepreneurship not only has a significant contribution
in country economy but they also provide different type of employment opportunities to
individual that maximizes per capita income. In this report formative discussion has been made
on entrepreneur mindset, skills, characteristics and trait of successful entrepreneur along with the
extent at which experience and background influences entrepreneur.
PROJECT 1
Different types of ventures and their impact upon the economy
Entrepreneur
Entrepreneur can be describe as the person who is introducing and establishing business
with new and creative idea. Entrepreneur is responsible for conducting different business
operation and liable to take loss and profits that is occurred through business activities. There are
different types of entrepreneur ventures that is affect growth and development of economy
(Ayoub, Gottschalk and Müller, 2017). Entrepreneur is conducting different types of business
activities in order to provide various products and services and meet with the requirement of
customers. The motive of entrepreneur is to earn profits by providing its offering to customer and
enhance market share.
Different types of entrepreneur
There are different types of entrepreneur ventures that is conducting business operation in
different market area and influence over growth and development of economy. Different types of
entrepreneur ventures are mention below in detail –
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 Small business – Small size business can be describe as all those enterprise that is
conducting business activities in small market area. This type of organisation is also
consider as local companies that is operating its business function is local market area.
There are number of small business and they are operated privately (Bertoni, Martí and
Reverte, 2019). This types of business includes grocery store, plumber services,
carpenters and so on. Airdri is an example of small size organisation as it is conducting
business activities in UK market area. The scope of small and medium size company is to
increase number of customer by providing high quality services. This type of
organisation is working to meet basis or financial requirement of owner.
 Large business – This refer as those company that is operating business activities in large
market area. This type of organisation in offering its products and services to
multinational area and meeting with the needs of different customers. Large or
multination organisation consist of many employees that is working effectively in order
to attain gaols of organisation (Bobera, Leković and Berber, 2017). Example of large
organisation is Marks and Spencer, Tesco and many more. These are enterprise that have
large investment of capital and offering its products or services all around the world. The
scope of large organisation is to earn more revenues and gain competitive advantage over
other rival companies.
 Social business – Social business can be describe as organisation that is performing
business activities for providing benefit to society and its citizens. There are different
social organisation that is conducting business operation in order to resolve the issues or
problem of society. The offering or products of social business will assist in meeting
with the needs and wants of customer as well as helping people who needs. Goodwill
industries is the example of social business. The scope of social business in to provide
benefit to society and citizen through its products and services (Coulibaly,Erbao and
Mekongcho, 2018). There are various activities conducted by social business such as
protecting environment, welfare of poor citizens and many more.
Comparison between enterprises
There are different factors that will lead to differentiate different entrepreneur ventures
and affect its business performance. Comparison between different types of entrepreneur
venture is mention below -
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Basis Small business Large business Social business
Purpose The purpose of small
business is the earn
revenues in order to
meet with the needs of
owner and earn some
profit.
Large business is
conducting its
activities with the
purpose of earning
more profits and
enhancing its market
share in order to gain
competitive
advantage.
Social business
purpose is to meet
with the needs and
wants of citizen and
do welfare of society
by conducting its
activities.
Scale Small business is
operating business
operations at very
small scale. These
companies have low
investment to enhance
business operation
into new market area.
The scale of large size
business is very high.
These organisation is
conducting business
activities in different
part of the world and
have high investment
to effectively perform
organisational
activities.
Social business in
conducting business
operation in small
scale with in the local
market area. The
activities of these
business in not
beneficiary for
company but it will
support environments
and citizens of
society.
Impact of different business on economy
Business is very important part of society and economy. Performance of different types
of entrepreneur will lead to have direct impact on economy of nation and it will influence its
GRP rate and economical rates. There are various factors regarding business that lead to have
impact on economy on UK economy.
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Through the above shown graph it can be determined that small, medium and large
organisation will lead to have impact on economy. This graph represent that small size business
in contributing to 99.3 % in business which is higher rates as compare to medium and large size
company (Switzerland fast-tracks emergency aid for small businesses weathering COVID-19,
2020). The impact of medium and large company regarding business in 0.6 % and 0.1 %
respectively. Small business is providing 47.8 % of employment to economy and 36.8 % of
turnover. Larger size companies impact on employee is 39.5 % and its turnover is 47.8%.
through this it can be analyse that different types of ventures will lead to have different impact
on economy and its growth.
Importance of enterprise and start up for economy growth
There are various benefits and importance of different type of entrepreneur of economy. It
is essential for government to focus in growth and development of small and micro business as
this will lead to have impact economy growth (Burtch, Carnahan and Greenwood, 2018).
Different importance of enterprise or start ups for growth of economy is example below –
 Enhance employment rates – Increase in small business will lead to proving working
opportunities to different people. This will support in enhancing employment rate of
nation by providing employment to skilled and unskilled labour.
 Quick services – Small and micro business is located in local market area as this will
support in providing quick and better services to customers.
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PROJECT 2
Entrepreneur Mind-set?
Entrepreneur mindset is termed as a mind state that that familiarizes individual conduct
towards entrepreneur conduct towards outcome as well as activities. This has been evaluated that
individuals with having entrepreneurial mindset are mainly have their keen towards opportunity,
innovation and new value creation (Tatpuje and Ganbote, 2019). In simple terms this concept is
termed as a particular manner of thinking within which a person effectively approach challenges
and mistake. This has been identified that there are five characteristics possessed by a successful
entrepreneur that include accountability, decision, humility, confidence, and resilience. With the
assistance of all these effectual characteristics an individual can effectively develop
entrepreneurial mind set and their strength, capability and skill in effective manner.
The characteristic traits, skills of successful entrepreneurs
Entrepreneur is those individuals who aim towards initiating a new business venture
while undertaking associated risk (Bong and Kim, 2019). In this there undertake use of
uniqueness and innovation with an aim to create something unique and valuable to provide
maximum amount of satisfaction to consumers, society and nation. They duly take advantage of
unique idea in order to develop innovative services and products. Entrepreneur is mainly known
as sole proprietor as they bear risk and profitability by their own. In addition to this that has been
identified that set standard is being possessed by an entrepreneur that motivate them towards
accomplishment of their goals and objectives in successful manner. Further it has been
determined that with having unique characteristics, trait and skill entrepreneur perform their
operations (Bendell, Sullivan and Marvel, 2019). There is some certain skill, motivational drivers
and character of different entrepreneur is given:
Ren Zhengfei:
Ren Zhengfei perform their activities as a Chinese entrepreneur and CEO of Huawe, he
marked company among world’s excellent and largest telecom equipment producers in a global
stage. This entrepreneur is having an aim to make Huawe as leading and biggest producers of
Smartphone around the globe. Mentioned below certain characteristics and skills of Ren
Zhengfei is being defined that acts as element for a successful entrepreneurship.
Characteristic
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Keen Learner: This is one of the most important characteristics which Ren is having as he
believes learning before act (Datta, Adkins and Fitzsimmons, 2020). With this philosophy he
mainly emphasize upon employees of Huawe as to motivate them to undertake new things with
hardworking approach. While if it is talked about management style managers take use of
inflexible style as they restrict any risk and changes.
Skill
Directive Leadership: Ren is having this essential skill within him that proves him to be a
successful leader. With having different type of leadership approaches he direct, lead and set
objectives for Huawei employees. This has been identified that in directive leadership efficient
direction is being provided by leader to employees to facilitate their operation towards
accomplishment of entity goals. While on the other hand company manager take use of rigid
style as they are restricted towards any rapid changes.
Trait
Purpose driven ambitious: Ren is having this aspiring nature through which he fulfill
significant need and demands of consumers. With having the significant, purpose driven
ambitious Ren always aspire workers in company that usually act as a motivating agent. While
on the other hand manager of entity faces many difficulties to fulfil actual consumer needs and
demands.
Liz Wilson
Liz Wilson performs their entrepreneurial operations as a Ma Baker owner. With having a
passion towards baking she innovate different ideas to deal with bread. Liz is a passionate
teacher, baker and home cook. With having passion towards cooking she successfully run award
meaning micro bakery in the provinces of London that effectively serves demands and need of
consumers in best effective manner.
Characteristic
Passion: It is one of the most effectual characteristics that is Liz is having as it has been
identified that with having a passion towards cooking she successfully run micro Bakery
business venture through which she successfully fulfil consumer demand while overcoming
tensed and complex situations with an ease.
Skill
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Innovative thinking: Liz Wilson is having efficient skill of innovative thinking as she likes
to deal with bread in an innovative manner. Being innovative thinker she always comes up with
new and innovative offerings for their consumers through which she attract attention of
consumers in effective manner. Along with this with the use of this skill Liz effectively
welcomes any changes and new opportunities in workplace structure.
Trait
Confident: With having this trait Liz successfully operate business venture through which
she conduct different activities and functions with great zeal and confidence (Koe, Mahphoth and
Karim, 2020). It has been identified that Liz operate her business in an industry which is
dynamically changing, as consumer taste and preferences are constantly evolving with the
passage of time. Thus with the assistance of confidence trait Liz effectively comes up with new
ideas and innovative services and products by undertaking opportunities.
Difference between characteristics of successful Entrepreneurs and Managers
Entrepreneurs Managers
Entrepreneur does not initiate their business
venture mainly for a profit motive as their main
aim is to satisfy society and consumers with
innovative and unique services and products
(Landström, 2020).
In terms with managers they are those
individual who mainly perform their roles
and responsibility for a salary with having
an aim for more profitability.
Entrepreneur are known as keen learner as they
continuously engage in the process of
innovating new process, product, services by
considering new opportunities.
Managers however restrict any kind of
change and innovation as they restrict to
take new challenges and risk (Kamberidou,
2020).
How background and experience influences entrepreneurs: Local Entrepreneur
In the process of entrepreneurship entrepreneurs undertake risk as to overcome issues that
are facing by society (Harima and Freudenberg, 2020). In this they take advantage of their
educational background as well as experience that are having significant impact upon their
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entrepreneurship. By taking advantage of this they provide innovative and unique offerings. In
context to this that has been evaluated that Liz Wilson a successful and a prominent local
entrepreneur engage in the operation of running her own micro Bakery name as Ma Baker in
London provinces of United Kingdom. Experience and background of respective entrepreneur is
been defined:
Background:
Background of Liz Wilson depicted her as a passionate home cook, teacher and a baker. In
the year 2013 she completed the course of Bread Angel’s Micro Bakery in which her likelihood
towards innovating bread in unique manner developed, with this she lead towards setting up own
micro bakery in the year 2015, London. It has been evaluated that her bakery Ma Baker get 5 star
reviews. Along with this she also provides bakery classes on internet.
Experience:
Experience of Liz states that volunteered in different cooking and bakery school, along
with this she was one of the runners up in World Bread Awards in 2014 in Home Baker
category. Thus, this has been identified that before setting up Ma Baker Wilson had different
form of experiences that aid her to shape herself as a successful entrepreneur.
How background and experience influences entrepreneurs: Social Entrepreneur
One of the most excellent example of social entrepreneur, Bill Drayton as he is the one
who laid down foundation of social entrepreneurship definition. He conducts his entrepreneurial
function as chairman of Ashoka: Innovators for the Public. This company mainly emphasize
upon discovery of social entrepreneur and further provide them support informative assistance:
Background:
Having a quite helpful background Bill Drayton shaped himself as a successful social
entrepreneur. It has been identified that in President Jimmy Carter administration Bill duly
served as an Assistant Administrator of EPA in which he was involved in launching of emissions
trading. Along with is he also undertaken function in the form of visiting profession at Harvard
and Stanford University.
Experience:
This has been identified that experience is having significant impact on shaping
entrepreneurial function of an entrepreneur Bill chaired 2 organisations Get America Working
and Get America Working. Along with this he duly served his role s a manager for McKinsey
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and company and management consultant for 10 years. The experience that he gained from here
effectively fostered him to open his own entity in which he effectively offer assistance and aid to
social entrepreneur in order to provide them significant opportunity in marketplace through
which they can assure their long-term existence.
How background and experience influences entrepreneurs: International Entrepreneur
Ren Zhengfei is one of the when known and legendary international entrepreneur who
conducts his entrepreneurial activities being CEO and founder of Huawei. This organisation is
one of the greatest telecommunication equipment manufacturer operating this services
worldwide. As per according to the statistics it has been identified that Huawei, had approximate
amount of US $1.7 billion net worth.
Experience:
After completion of higher secondary schooling Ren joined college in 1960, after that this
entrepreneur served in People’s Liberation Army research institute as a member in which he
performed his role as military technologist. During his job role he developed his keen interest
towards different technological progression that further emerged him as a successful
entrepreneur. This experience leads to get selected for National Science conference in 1978. It
has been defined that respective entrepreneur is having significant experiences and background
that acted as his greatest support in his entrepreneur real process.
Background:
Zhengfei grandfather was a master chef in provinces of Zhejiang, however it has been
identified that father of Ren could not able to completed his college tenure due to his
grandfather’s death that took place one year prior to his father degree completion, after this his
father performed his role as an account clerk in government arm factory. Along with this it has
been evaluated that mother also served as a senior teacher. Thus, it has been determined that
respective entrepreneur is having strong background in terms of profession, as his grandfather
and parents also worked as a successful professional (Chahar, Hatwal and Arya, 2020). This
song background assists Rin in his entrepreneurial aspects in number of ways.
CONCLUSION
As per the above mentioned report this has been concluded that entrepreneurship a crucial
and significant process in which entrepreneur take risk, innovative idea and uniqueness to initiate
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a business venture with an aim to serve society at its best. In order to conduct this operation
characteristics, skill and trade is required by an entrepreneur that was allowing them to conduct
their responsibilities effectively. Entrepreneur is also providing different type of job
opportunities local level individual that automatically enhances their living standards along with
country economic prosperity. However this has been evaluated that background and experience
is having significant impact upon entrepreneurship as these factors are having facilitating and
retaining impact that successfully developed or hinder entrepreneur. With the help of efficient
skill, passion and characteristics entrepreneurs accomplish their objectives with great efficiency.
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REFERENCES
Books and Journals
Ayoub, M.R., Gottschalk, S. and Müller, B., 2017. Impact of public seed-funding on academic
spin-offs. The Journal of Technology Transfer. 42(5). pp.1100-1124.
Bertoni, F., Martí, J. and Reverte, C., 2019. The impact of government-supported participative
loans on the growth of entrepreneurial ventures. Research Policy. 48(1). pp.371-384.
Bobera, D., Leković, B. and Berber, N., 2017. The relationship between motives of
entrepreneurial behavior and venture maturity. Industrija. 45(1). pp.81-98.
Burtch, G., Carnahan, S. and Greenwood, B.N., 2018. Can you gig it? An empirical examination
of the gig economy and entrepreneurial activity. Management Science. 64(12). pp.5497-
5520.
Coulibaly, S.K., Erbao, C. and Mekongcho, T.M., 2018. Economic globalization,
entrepreneurship, and development. Technological Forecasting and Social Change. 127.
pp.271-280.
Heider, A., Gerken, M., van Dinther, N. and Hülsbeck, M., 2020. Business model innovation
through dynamic capabilities in small and medium enterprises–Evidence from the
German Mittelstand. Journal of Business Research.
Chahar, D., Hatwal, D. and Arya, D., 2020. ROLE OF PROFESSIONAL EDUCATION IN
DEVELOPING ENTREPRENEURIAL SKILL AMONG FEMALE STUDENTS AN
EMPIRICAL RESEARCH. International Journal of Psychosocial Rehabilitation, 24(4).
Harima, A. and Freudenberg, J., 2020. Co-creation of social entrepreneurial opportunities with
refugees. Journal of Social Entrepreneurship, 11(1), pp.40-64.
Koe, W.L., Ismail, S., Mahphoth, M.H. and Karim, R.A., 2020. The Mediating Role of
Individual Perception between Individual Orientation and Intention towards Sustainable
Entrepreneurship. KnE Social Sciences, pp.179-190.
Datta, K.S., Adkins, O. and Fitzsimmons, J.R., 2020. Entrepreneurship and social media
influencers in an Islamic context. In Understanding Social Media and
Entrepreneurship (pp. 121-139). Springer, Cham.
Landström, H., 2020. The Evolution of Entrepreneurship as a Scholarly Field. Foundations and
Trends® in Entrepreneurship, 16(2), pp.65-243.
Kamberidou, I., 2020. “Distinguished” women entrepreneurs in the digital economy and the
multitasking whirlpool. Journal of Innovation and Entrepreneurship, 9(1), p.3.
Omri, A., 2020. Formal versus informal entrepreneurship in emerging economies: The roles of
governance and the financial sector. Journal of Business Research, 108, pp.277-290.
Bong, G.W. and Kim, J.G., 2019. The Effect of Small Business Owner's Individual
Characteristics and Social Capital on Entrepreneurial Intention and Entrepreneurial
Anxiety: Focusing on the Moderating Effect of Entrepreneurship Consulting. Journal of
Digital Convergence, 17(3), pp.191-204.
Tatpuje, D.U. and Ganbote, A., 2019. Effectiveness of Online Tools for First Generation
Business Start-ups Sustainability in Satara. SEDME (Small Enterprises Development,
Management & Extension Journal), 46(1), pp.18-23.
Bendell, B.L., Sullivan, D.M. and Marvel, M.R., 2019. A gender‐aware study of self‐leadership
strategies among high‐growth entrepreneurs. Journal of Small Business
Management, 57(1), pp.110-130.
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