Small Business and Entrepreneurship

This assignment provides an in-depth analysis of small business and entrepreneurship, exploring their role in economic development. It covers various aspects such as understanding enterprise, entrepreneurship, and small business strategies, including the success criteria for small business owners and the influence of personality traits on social entrepreneurship start-up intentions. The assignment also discusses the contribution of public procurement to entrepreneurship and small business policy, as well as sustainable development and entrepreneurship.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P 1 Different types of entrepreneurial ventures and their relations to the entrepreneurship
typology.......................................................................................................................................1
P 2 Similarities and differences between entrepreneurial ventures.............................................3
TASK 2............................................................................................................................................5
P 3 Impact of small and micro business on economy .................................................................5
P 4 Contribution of small business and business start-ups in economy development.................7
TASK 3............................................................................................................................................9
P 5 Characteristic traits and skills of successful entrepreneurs...................................................9
P 6 Entrepreneurial personality reflect entrepreneurial motivation and mind-set.....................10
TASK 4..........................................................................................................................................11
P 7 How background and experience can hinder or foster entrepreneurship............................11
CONCLUSION..............................................................................................................................12
REFERENCES ..........................................................................................................................12

INTRODUCTION
Those persons who design different business activities having the aim of earning more
and more profits are known as entrepreneurs (Schaper and et. al., 2014). Mainly entrepreneurs
are categorised into four types such as large, small, social and scalable enterprise. Some special
characteristics should be present in a successful entrepreneur like problem solver, risk handler,
enthusiasm, etc. All these skills aid them in becoming a bright business man in their life and also
helps in achieving their all aims and goals. The present report is based on the entrepreneurship
and small business management. In this project, different types of entrepreneurial ventures and
their relationship with the typologies of the entrepreneurship is explained. In addition to this,
various similarities and differences between entrepreneurial ventures is also described here.
TASK 1
P 1 Different types of entrepreneurial ventures and their relations to the entrepreneurship
typology
Entrepreneurship is a process where by a person or group of people carry out researches,
designing and at last launches innovative goods in order to meet the demand of consumers (Nga,
and Shamuganathan, 2010). By doing so they want to earn high amount of profits. There are
various types of entrepreneurial ventures that are described below:
 Small business entrepreneur: Such type of entrepreneurs operates and run small scale
businesses or enterprises. As a result, the amount of profits is normally small in relation
to large businesses enterprises (Preuss, 2011). The best example of this kind of
entrepreneurs are carpenters, plumbers, hairdresser, grocery stores keepers, electricians,
etc. Because of their innovative business ideas, such type of
 Large company entrepreneurship: Organisations which are executing commercial
activities on large scale and are generating huge sum of money per year fall under this
type of entrepreneurship (Storey and Greene, 2010). Business activities and decisions of
such kind of corporations are get impacted by different factors present in the business
environment like variation in the demands of consumers, competitors, technological
aspects and many more. Such type of ventures is performing at global level that aids
nation in earning foreign money or exchanges which assist in maintenance of economic
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growth and development of the country. These entrepreneurs also start and build
business activities having an innovative idea.
 Scalable ventures: These are one of the new corporations in the market place that start
with the vision to modify the world by offering new, innovative and unique attributes of
goods or services. Such type of entrepreneurs does not do any formal process of
registration (Sampaio, Thomas and Font, 2012). Besides this, they develop a
coordination with the banking sectors for receiving financial supports. They recruit
skilled employees in order to handle their business operations and utilise effectual
business models for expanding their business operations. They receive high returns from
their investments.
 Social entrepreneurship: These types of entrepreneurs carry out their production
process to manufacture innovative based products in order to offers solutions to social
issues. The aim of such entrepreneurs is make society a better place instead of making
profits. Such type of entrepreneur mostly design several activities or programmes for
poor people so that they can take facilities provided by them (Ligthelm, 2010). They
offer their products and services at very cheap rate to all civilians in order to help all
person who are not able to buy expensive goods.
 Life Style ventures : Such type of entrepreneur creates a business having the intention
of changing their personal living style (Storey and Greene, 2010). They do not have the
motive of earning profits. A life style entrepreneur concentrates more on the life rewards
or awards provided to person who enjoy and also have a passion for what they are
performing. There is a expectation that businesses which is used to run by entrepreneur
will be well since the person has a passion of doing that.
Type of various entrepreneurial typologies are discussed below:
 Research entrepreneur: Those entrepreneurs who do a lot of research activities prior to
start any business operations is referred as research entrepreneur. Such type of person
loves to study new concepts and ideas. They used to carry out researches in order to
create an effective strategy for business activities.
 Copycat entrepreneur: This can be understanding by their name that such type of
people examines the ideas given by various successful entrepreneur and copy the same
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concepts for starting their business operations and achieving success in their life
(Sampaio, Thomas and Font, 2012).
 Determined entrepreneur: These type of industrialists is completely different from
those of copycat business enterprise. All attempts done by such organizations for
attaining growth and earning huge sum of profits
 Accomplished entrepreneur: Enterprises which undergo business activities and carry
out all the activities of entrepreneurship in order to acquire preset goals and targets fall
under this kind of entrepreneurs. Normally, major aim of such type of persons is to
maintain a legacy and for attaining the same they used to carry out different research.
P 2 Similarities and differences between entrepreneurial ventures
There are different types of entrepreneurial ventures that implement various business
operations for achieving their targeted goals and objectives. Large number of similarities and
differences are present in these entrepreneurial ventures which are described below:
Type of Ventures Similarities Differences
Large v/s small enterprise One of the major similarity
between large and small
enterprise is earning profits.
The major difference between
these ventures is that small
enterprise perform their
business at small scale
(Schaper and et. al., 2014).
But on the contrary, large
ventures implement the same
at international or larger level.
Both of the ventures gather
data from their targeted
market for finding out the
features which they desire in
their final goods and services
(Preuss, 2011). Exclusive and
innovative opinions or ideas
of both the firms seek
Small sum of financial funds
is invested in the small
business corporations where
as high amount of commercial
funds is needed for large
business enterprises.
Role of managers under the
small firms is very simple and
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attention of venture capitalist. easy but managers present in
large ventures have to play a
complex role and
responsibility. Profits or
benefits of small enterprises
are very low in relation to
large firm (Ligthelm, 2010).
Large number of workers are
required for the purpose of
carrying out such a large
business operation in large
enterprises. Whereas small
workforce is needed for the
purpose of doing business
activities in small firms.
Scalable v/s social business
enterprise
Main resemblance between
these business firms is that
both provides goods and
services in order to give
solutions of various problems
of people living in a society.
Both of the corporations’
conduct researches for
determining main features of
a product which is demanded
by consumers in final
offering of venture (Leitch,
Hill and Neergaard, 2010).
Both of the organizations
attempts for creating a better
Social development is the
primary purpose of social
business companies. For
doing so, they offer goods and
services based on innovation
to the customers (Ligthelm,
2010). On the other hand,
main objective of scalable
business ventures is capturing
a wide market share with
minimum period of time.
Social business firms
concentrate on offering best
solutions to problems of
common people. Whereas
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place in order to live
comfortably in the world.
scalable corporations desires
to capture a large market
share and to earn more
revenue.
Life style v/s social
entrepreneur
The main similarity between
these two ventures that both
of them do not wish to earn
profitability.
Life style ventures are those
entrepreneur who used to run
new business for their
personal growth or
development. They only want
to change their living style
and do not wishes to make
profits through their
company.
Public v/s Corporate
ventures
Main resemblance between
both the ventures is that they
both want to expand their
business and earn profits.
Public want to earn profit but
used the revenue earned on
public only. In other words,
their main motto is to serve
public by providing products
and services at low prices.
But Corporate ventures uses
their earned money in their
personal development and
also offers goods at expensive
rates having the motive to
earn more profits.
TASK 2
P 3 Impact of small and micro business on economy
Small and micro businesses are the one where maximum of five owners including a
manager can be present. Large number of employees gets attracted by these businesses per or
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every year as it consists of high rate of growth. Most of the women build such type of business in
United Kingdom and are earning a huge amount of income from this. For example, women
entrepreneur like Holly Tucker MBE, Sarah Willingham, Jo Malone MBE, etc. are some female
who started and expand their business corporations into national as well as international levels.
Events of these kind of firms contributes very much in growing economy of a country. One of
the major support of such businesses is development of society by offering innovative goods and
services in order to meet the social needs of people (Nga and Shamuganathan, 2011). Moreover,
as these businesses enlarge creates more employment opportunities for the regional people and
helps in improving their standard of living. As having innovative ideas and strategies, such types
of business seek attention of large number of investors and also provides them high rate of
returns in comparison to their investment. Business activities of small enterprises contributes in
incrementing the overall GDP of the nation and enhance its wealth (Hall, Daneke and Lenox,
2010). Government of country offers facilities and supports to such type of firms in order to
promote their businesses at global level as this creates opportunities to nation of earning foreign
currencies or exchange. Large firms concentrate on enlarging their business activities at
international level but small companies attempt for coving all the uncovered areas of a country.
Owners of the small organizations arrange training and development programs in order to
improve the skills of their local personnel who aid them in accomplishing complex tasks in
effectual manner. Major influence of small business enterprises on the economy of country are
described below:
 Impact on region: Small business firms conduct their activities or operations in different
small regions of countries and provides good quality products as well as services to the
people living on those areas (Gorgievski, Ascalon and Stephan, 2011). Business
operations of those ventures get impacted by several factors present at that region. One of
major challenge faces by small company is starting or beginning of business activities in
particular area and this affects adversely on the manufacturing procedures of venture.
 Impact on national and global economy: Both small and macro business enterprises
offers different goods or services to their expected users and by doing this they directly
affect the community of nation. Turnover of these ventures was approx. 1.76 million
pound in the year of 2014. More than 40 % of companies provides innovative and
creative products to their expected buyers (George and Bock, 2011).
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 Impact on regional people: Small business firms conduct researches for manufacturing
innovative goods or services so that they can provide these to their potential customers.
Apart from this, they also create large number of employment opportunities to the local
civilians. In United Kingdom, small business firms give around more than 65 % of
employment and assists in the growth and development of nation (The Role of Small
Business in Economic Development, 2017).
(Source: The Role of Small Business in Economic Development, 2017)
P 4 Contribution of small business and business start-ups in economy development
Economic conditions existing in the nation largely affects the business operations and
activities of small or start-ups business enterprises. Enlargement of these activities aids in
growing the economy. This also offers benefits to the regional people as now they have the
choice of choosing an effective product or service from the offerings. As a result, this
increases the Gross Domestic Product of the nation and supports country in maintaining their
conditions regarding economy (Ligthelm, 2010). One of the major advantage of these small
business firms is that they offer stability and support services to the large corporations so that
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they can run their complex business activities effectively. Furthermore, small sized firms
conduct researches for collecting more information regarding the requirements and demands
of their users so that they can manufacture products and services as per that and offer
innovative goods to its potential customers. As such companies are operating at small level,
their operational costing is very less and because of this reason they provide best quality
goods and service to their users at affordable prices. So, by this way they earn more income
and contribute well in the market share of country. Therefore, it can have said that small
business ventures are acting as backbone of the economy and helps a lot in the economic
developing of UK. In addition to this, they also give different social benefits to the poor
public living in the country. Moreover, significance of these small enterprises and start-up's
in the economic development of UK can be understood by below mentioned points:
 Respond quickly to any change occurred within business environment: Small firms
are more flexible in relation to those of large corporations. This flexibility aids managers
of the small business enterprise in responding at faster rate if any changes occur with in
the business surroundings. Furthermore, these quick decisions assist small companies in
finding out effectual solutions to their issues.
 Innovation: Small sized ventures undergoes a deep and intense research so that they can
determine or find out new concepts for developing best products and services to meet the
desires of customers (Leitch, Hill and Neergaard, 2010). By this way, innovation based
goods helps all the people leading a better life and therefore these firms contribute
regarding social development of UK.
 Minimisation of costing: The cost imposed by small companies is very low in
comparison to the those incurred by large business ventures (Dennis Jr, 2011). By this
way macro businesses provide quality based products at lower costs to the public which
can be afforded by all kind of public whether they are poor or rich. This as a result
increases the purchasing potential of people.
 Improve relationship with individual: This is one of the positive impact of small scale
businesses as they assist business owners or entrepreneurs in creating a healthy and
positive relation with their purchasers. This can be done by carrying out researches on the
local people and determining their needs and demands. The generation of good
relationship offers numerous of benefits to the venture.
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 Future growth is very high: The start-up's companies do not always remain small as
they expand their business in different places after some time period (Carland and
Carland, 2015). So, it can be stated that there is high scope of achieving growth of such
kind of firms as the demands of the population changes at a faster rate.
 Adaptability to respond changes: Small organisation arrange training and development
programmes in order to train their employees for creating good quality goods and
services (Down, 2010). This aids enterprises in determining the changes occurring within
market place and respond those alterations at a fast rate.
TASK 3
P 5 Characteristic traits and skills of successful entrepreneurs
Skills is a term that refers to an exclusive quality which make an organisation or
individuals different from various another business enterprise (Burns, 2010). For becoming
successful entrepreneur, it is very important to have some special qualities in a person so
that they can create plan, formulate and enforce business activities in very effective way.
Some of the skills and traits that must be in a successful entrepreneur are described below:
 Full of determination: For achieving success, it is very essential for an
entrepreneur to has full up of determinations and should set clear aims and
objectives. This helps in improving the self-confidence but if there will be lack of
confidence, an individual will face lot of stress and needless delay in the
accomplishment of various business activities.
 Understanding about proper money management: Money plays a vital role in
the success of any organisation, so it is very important that owner of corporation
should have knowledge about proper management of money (George and Bock,
2011). He or she should capitalise their money in such a way so that they receive
maximum return from that. On the other hand, improper use of money will ruin
complete business of entrepreneurs.
 Passion about business management: An individual should have passion of
doing any type of business as the presence of love regarding their work make them
more successful, otherwise they might face failure in their business (Gorgievski,
Ascalon and Stephan, 2011).
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 Strategy making capability: Any person cannot attain success without making
proper strategy. For acquiring pre-set goals and ambitions, an individual should
make some strategy and implement that in their business. Effectual strategies not
only assist in attaining success but also helps in gaining competitive advantages.
 Risk taking ability: Entrepreneur should have risk taking capabilities so that they
do not feel any stress while facing any type of difficult situation and also do not
give up. By this way, they can make themselves strong and run their business
effectively.
Comparison between mangers and entrepreneurs are listed below :
Entrepreneurs Managers
This is a person who consist of skills, idea and
courage to take any kind of risk for pursuing
that idea for turning them into reality.
Managers is that person who used to manage
the operations as well as functions of a
company.
They are the owner of the corporation. Where as it is an employee of some venture.
They earn profits at last. But such people receives salary from those
entrepreneurs or company where they perform
their job.
They used a informal approach for doing their
business.
On the other hand, they used to follow formal
approach for their task of management.
P 6 Entrepreneurial personality reflect entrepreneurial motivation and mind-set
Business futurists encourages large number of people with their living style. Without
inspiration, none of the business can be run by any individual. Effectual personality helps
in creating higher motivation and making positive mind- set in any person (Bridge and
O'Neill, 2012). Different elements present in personality of an individual helps in
motivating and changing mind set of people as well as themselves. This can be understood
by following points:
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 Personality traits: Some of the personality or skills are present in a person by their
birth. This can be independent, problem solver, risk handler, etc. which motivates
themselves in performing any complex job.
 Financial conditions: This is one of the important factor that largely affect the
process of decision making of an entrepreneur. Good financial situation inspires an
individual in investing more and expanding their business activities at greater extent.
On the other hand, if there is lack of funding then no one would take decision of
starting any new business as it needs plenty of revenue (Down, 2010).
 Education: This also show or determines the thinking of a person. More educated
person will take better decision in comparison to an ordinary one. These type of
people start their business by using their brain and do appropriate investment in
different sectors as per their need.
All of these are main factors that provides shapes to whole personality on an entrepreneur
which as a result impacts on their mind set as well as on their motivation level.
TASK 4
P 7 How background and experience can hinder or foster entrepreneurship
This is a fact that background and experience can hinder as well as foster entrepreneurship.
A large number of entrepreneurs are present in this world which reflects this truth. The best
example of this can be Elizabeth Gooch who is known as 7th most successful female entrepreneur
in the UK (Bridge and O'Neill, 2012). She does not have a good or rich background as she
belongs to a medium family. Because of critical situation of her family, she started work at the
age of 18 at HSBC bank. As she knows the value of money and want to become successful in her
life, she wishes to do their own business. After 8 years, she started her own business named as
EG Consulting by taking borrow from her family members and friends. Because she is hard
working and keep the ability to earn more money, she encourages herself and continued her
business. She had received or made turnover of approx. £600,000. But after meeting with
Rodney she come to know that she is better in software and should focus on that only and she did
so by changing the name of her corporation (EG Solutions PLC) and earned a turnover of £4.2
million (Carland and Carland, 2015). This is made possible only from her passion and
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personality. There is also contribution of her background that inspire her to do better in her life
and earn more money so that she can give a comfortable life to her family.
CONCLUSION
From the above based report, this can be summarised that entrepreneurship or small scale
business enterprises are playing a vital role in the country. They help in improving economic
situation of UK and also supports society in making their life better by providing them
products and services at affordable or low prices in comparison to large ventures. This has
been explained in more detail in the report.
REFERENCES
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
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Carland, J.W. and Carland, J. C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(1), pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success
criteria, a values approach to personal differences. Journal of Small Business
Management. 49(2). pp.207-232.
Hall, J. K., Daneke, G. A. and Lenox, M. J., 2010. Sustainable development and
entrepreneurship: Past contributions and future directions. Journal of Business
Venturing. 25(5). pp.439-448.
Leitch, C., Hill, F. and Neergaard, H., 2010. Entrepreneurial and business growth and the quest
for a “comprehensive theory”: tilting at windmills?. Entrepreneurship Theory and
Practice. 34(2). pp.249-260.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Sampaio, A.R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. Journal of Sustainable Tourism. 20(2). pp.179-193.
Schaper, M. T., and et. al., 2014. Entrepreneurship and small business.
Storey, D. J. and Greene, F. J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Online
The Role of Small Business in Economic Development. 2017. [Online]. Available Through:
<http://isbdc.org/small-business-in-economic-development/>.
What is Entrepreneurship?. 2017. [Online]. Available
through:<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.
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