Entrepreneurship and Small Business Management

This report discusses the importance of small business and startup for the growth of the economy. It explores the different types of entrepreneurial ventures and their relation to typology. It also covers the interpretation of data and statistics to analyze the impact of micro and small businesses on the economy. Additionally, it discusses the traits, qualities, and skills of successful entrepreneurs.

Entrepreneurship
and
small business
management

Table of Contents
INTRODUCTION.......................................................................................................................................3
P1 Type of entrepreneurial ventures and its relation to typology.............................................................3
P2 Similarities and difference between entrepreneurial ventures.............................................................4
P3 Interpretation of data and statistics.....................................................................................................6
P4 Importance of small business and startup of business for economy growth........................................8
P5 Traits, qualities and skills of a successful entrepreneurs.....................................................................8
P6 Aspects of entrepreneurial personality which reflects on motivation and mindset.............................9
P7 Experience and background that can hinder or foster entrepreneurship............................................10
CONCLUSION:........................................................................................................................................10
REFERENCE............................................................................................................................................12

INTRODUCTION
Entrepreneurship is essential for every business that considers new innovation, creative
Ideas and new technology to run a business. Every large organization started business from small
Industry by innovating the ideas. The person who has small amount of capital start up business
and expand the business at large scale. In other words, it is a small business desire to create,
Organize and run business by taking risk. The main quality of an entrepreneur is to take risk and
Increase the rate of return. Many entrepreneur faces number of problems and changes that help to
Understand the future profitability by defining resource, mismanagement and finance resources
Which help to raise the business activities (Belz and Binder, 2017).
This report will covered different topics such as entrepreneurial venture and its related
typology, similarities and difference between ventures, relevant data and statistics to define the
impact of micro and small business at economy. Moreover, identification and assessment of key
aspect of entrepreneurial mindset and environment which foster and hinder entrepreneurship
Performance.
P1 Type of entrepreneurial ventures and its relation to typology
In business market there are number of entrepreneur who start their business by arranging
the small capital. Entrepreneur venture stated as organization which emphasis on new innovation
and opportunities in order to social and economic development. In corporate world there are
numerous ventures which are formed for supplying the goods and services (Burrows ed., 2015).
Following ventures are defined below-
Small business entrepreneurship: This includes small size of entrepreneur which runs a
business activity at market place. Business concern sell number of products for gaining profit at
small level. A person who is able to run own business by arranging own capital is known as
small entrepreneurship. The main purpose of this to sell the products and get return from small
business activities. Small entrepreneurs hire local employees or family. Most of the businessman
arrange capital from family, friends and other sources.
Scalable startups: The person who do not like small business, starts own scalable business. This
types of entrepreneurs focused on quality of products and services in order to get maximum

profits. In other words, they have vision to change the world and to contribute in the
development of country. They wanted to grow the business at global level. So that they can
acquire higher return by involving risk operation (Devece, Peris-Ortiz and Rueda-Armengot,
2016).
Social entrepreneur: This types of entrepreneurs mainly focused on social needs and
provides that kind of goods and services to customers. Social entrepreneur establish a system to
manufacture better quality of products and services. It mainly considers social needs and wants
in order to get profits. This type of entrepreneurs faces number of risk for getting people’ needs
and desire and then produce products and services.
Large company: This type of entrepreneurs are mainly focused on large investment and higher
return by offering attractive products and services. Entrepreneurs innovates new ideas and
thoughts for offering different types of products and services. Its main object is get maximum
returns by taking high risk and investment. Large size of entrepreneurs arranges capital from
external sources such as market by issuing shares and debentures, friends and loan which help to
get maximum returns by investing higher amount (Eniola and Entebang, 2015).
Different kind of entrepreneur typology
Lifestyle: In this type of entrepreneurship people focused on lifestyle and operate
business according to lifestyle and financial status such as small and large business. Lifestyle
entrepreneur analysis the market and get the needs of people as taste changing. The
entrepreneurs have main motive is to generate high profit and beat the competition. They works
hard by getting changes in people taste and fashion.
Female entrepreneur: This means female entrepreneurs who starts own business for getting
returns by investing funds in small number. This type of entrepreneurs generates people needs
and fashions which emphasis to sell the products and services. Its main object is to increase the
profit by providing goods and services (Epifanova and et.al., 2015).
Male entrepreneur: The main object of this entrepreneur is to start a business at large
scale in order to fulfill basic needs by obtaining goals. They manufactures goods and services by
filling the needs of customers.
Serial entrepreneur: Serial entrepreneurs mainly focused on manufacturing innovative products
and services by describing best way to sell goods (Galloway, Kapasi and Sang, 2015).
P2 Similarities and difference between entrepreneurial ventures
The number of ventures are works to operate business for filling the needs and wants of
customers. Difference and similarities between ventures are described below-

Basis Small business entrepreneurship Large size of
Entrepreneurship
Similarities The main aim of this business
entrepreneur ventures is to develop
goods which fulfill needs of
customers. To obtain the maximum
profit by meeting the needs of
customers.
Entrepreneurs analysis the market
trend and get the needs of customers
for fulfilling the needs and wants.
Entrepreneurs mainly concentrates
on actual needs and desire of people
and provide that kind of goods and
services.
This type of ventures mainly
focused on increasing the
demand of product and
services. It manufactures and
deliver goods which are
profitable for customers.
It focused on to expand the
product line and business
activities at global level. The
entrepreneurs introduce new
products in existing market
and new market place.
Difference In this type entrepreneurship, person
focused on profit maximization. In
this ventures entrepreneur generate
profit in order to make life better. It
mainly considers expanding
business activities for global
reaching.
In this type of ventures, person
mainly focused to earn huge
amount of return which help
to grow business at global
level. The entrepreneur
increases business goodwill by
selling number of products
globally. Entrepreneur make

different business strategies in
order to expanding business.
Basis Scalable entrepreneurship Social entrepreneurship
Similarities The main aim of this
entrepreneurship is to increase the
business by selling the products for
growing the profit. They basically
concentrates on social media and
social needs in order to promote
business for obtaining goals or
objects of the organization (Henry,
Foss and Ahl, 2016).
These type of
entrepreneurship have the
main goals to fulfill the social
needs and wants. It finds the
social needs for customers for
accomplish future goals. It
also uses various website and
social media to expanding
business activities at
international level.
Difference In scalable entrepreneurship, its
main aim is to obtain the profit for
filling own needs rather than
focusing on other needs.
This type of entrepreneur not
focuses on earning profit and
maximize return. Instead of
this they wanted to provide
satisfaction to customers by
providing better quality of
products at reasonable prices.
P3 Interpretation of data and statistics
In business scenario, people wanted to run own business that help to get maximum return
by investing amount. Many entrepreneurial activities considers micro and macro business level.
In macro business level, there are number of business owner who innovate new ideas, create
new business and perform business function (Karimi and et.al., 2016). The business concern

records the performance, monitor and control the business operating activities. It is operated by
more than one person who are responsible for all business transaction and crack the competition.
On other side, the micro or small business activities are operates by single person who focused to
deliver the best quality goods and services. It start business by arranging capital from personal
sources in order to get profit. It does not take high risk and not desire to get higher return. Macro
business concern mainly focused on maximum return by arranging capital from external sources.
This type of business impacts on economical development and future growth of business. As
micro business require less amount of capital for initiation of business and it involve in
manufacturing activities for satisfying the customers. The major impact of business is described
below-
Raise per capita income: It refers to the national income that earn by different business
activities. The analysis of per capita is helpful to state the overall growth and economic
development. In UK, there are number of small business who runs business activity for welfare
of economic development. It support to raise the economy and income level by performing
number of business activities. Per capita income means income of all people who are living in a
country and contribute in the development of country (Lortie and Castogiovanni, 2015).
Optimum use of available resources: This is the best way to increase the profit margin
by utilizing the resources properly. It is business concern’s responsibility to use the resources
optimally in order to get maximum return. Such as micro and macro business focuses to use the
resources in better way. Resources are defines as raw material, labor, finance, human resources,
skills and knowledge. A business concern make so many efforts to get back high rate of return.
By utilizing the resources can increase the i as well as profitability. The small and large size of
entrepreneur build solid strategy for reducing the wastages and increasing the profits. Moreover,
it prepares budget so that capital can be utilize properly.
The above stated outcomes shows that there are number of small and large size of
entrepreneurs which affects business economy. It can be present through chart and graphs that is
discussed below-
year Value addition of SME ‘s in UK economy
2008 100
2009 85
2010 82
2011 90
2012 100
2013 105
2014 120
2015 140
2016 135
2017 130
2018 130

From the above mentioned information it has been determined that small scale business
in UK are increasing continuously by performing business activities. It help to develop new
business opportunities and growth of business. Moreover, it help to increase the living standard.
P4 Importance of small business and startup of business for economy growth
There are different types of business who run business in order to get profits. Small
business have own importance who manufactures and perform different activities at market place
in order to get maximum return. In small business no need to arrange high capital to start up
business. Small business concern think about people needs and wants who manufacture better
quality of products and services and also provide satisfaction. Small business are beneficial for
achieving the goals in short duration which is needed (Rauch and Hulsink, 2015). The business
concern raise the business function and perform well at market place which help to growth of
economy. In additionally, small business help to sustain in competitive market by performing
well. Following points are discussed which states business and economy growth-
Social status: It considers living standard of people by performing business activity at
small level. Such as the small business concerns get the ideas of business, arranges capital and
start up the business. If their business is increasing continuously they decides to run it at large
level to maximize the profits. After deciding business person take high risk for getting higher
return. As small business perform numerous business activity and maximize the profit margin.
By running business at large and small level business owner contribute for economic
development.
Employment opportunity at large scale: By running business there are chances to
increase the employment opportunity. In UK, there are number of small and large business who
provides number of goods. To run this business there is need to hire employees. Hence, it help to
create the employment opportunity.
Innovation: Entrepreneur has main motive is that to increase the number of customer
which is possible by bringing new innovation. So in UK, business concerns innovate new ideas
that help to run a business successfully.
Sustainability: Small business are also helpful to sustain in competitive market. As
business concerns perform business activity by innovating new ideas that help to main the
sustainability in competitive market (Sirelkhatim and Gangi, 2015).
P5 Traits, qualities and skills of a successful entrepreneurs
In business world, a person become an entrepreneur after innovating new ideas for
getting profits. At present there are many successful entrepreneurs who are known as great
leaders because they innovated new things which are useful for people. Such as Jeff Bezos and
Elon Musk get the needs and wants of customer and innovate new ideas. That’s why they are
famous and success in business place. following characteristics, traits and skills of these
entrepreneurs are described below-

Jeff Bezos
Risk bearing ability: Jeff Bezos is creative person who innovates new ideas for running
business and satisfying the customers. He never loss hopes and always ready to get risk. Jeff
Bezos was able r to acquire the power of internet which helped out to expand the business
activities. He took a high risk to expand the business and got success.
Challenges acceptor: Jeff was successful entrepreneur because always ready to accept
the changes and challenges. This person has transformed the business dealings from VCR era to
digital technology.
Elon Musk
Innovative: This is important skills of entrepreneur which includes innovative thinking and ideas
in order to growing the business activities. Elon Musk is famous for innovative ideas as he
developed new automated driven car which help to reduce the burden of drivers. Moreover, he
invented new car model which help to attract the customers.
Visionary: Elon Musk always make solid business strategy that help to run a business
successfully. This person have characteristic to develop the future business strategy that help in
economy as well as organization growth.
P6 Aspects of entrepreneurial personality which reflects on motivation and mindset
An entrepreneur have enough skills and abilities to think innovative and develop business
activities. It help to define upcoming future problems and to get solution of problems. Some
features are described which help to become a successful entrepreneur-
Openness to experience: Entrepreneur have enough skills and ability to face the
competition for obtaining maximum profits. It helps to get experience by taking risk and
maximize profits. Entrepreneurs built new strategy that are useful to expand the business at
global level.
Extroversion: Communication is the better way that help to share the ideas among
two people. So a person should have quality to influence people in order to expanding business
in different country.
Economic stability: This means an entrepreneur should have ability to raise the economy
satisfaction by providing variety of products and services. moreover, an entrepreneur can
increase the economic stability by contributing the amount in different activities (Taneja, Pryor
and Hayek, 2016).

P7 Experience and background that can hinder or foster entrepreneurship
Entrepreneurship is the continuous process which involves number of business activity
by arranging the capital at small and large level. Following background, level of education and
personal experiences are described as below-
Background: This plays an essential role in entrepreneur’s life because a person learns
things, culture, tradition and values from own family. If family background is irresponsible and
uneducated then it may be difficult for entrepreneur to innovate new idea and run a business. For
instance, Jeff Beazos and Elon Musk both are belong educated and responsiable family who
always supports to run and expand business by taking risk.
Social relationship: Good relation are also important for every entrepreneur because it help to
get needs and wants of customers by maintaining the relation. Moreover, it help to increases the
communication level by solving problems. Such as , Jeff Beazos and Elon able to create the
social relation that help to understand what customer wants and then produce products and
services (Walsh and Cunningham, 2016).
Education: It play a key role in entrepreneurship that is used to improve the knowledge
and accept the challenges in order to get maximum return. Such as , Jeff Beazos and Elon are
highly qualified and experienced person who used knowledge in order to expand the business
activities by accepting new technology. The entrepreneur get education and apply on running
business that help to increase the profitability.
CONCLUSION:
From the above report it has been concluded that small business are helpful to get return
and economic development. Entrepreneur is a person who innovates new idea and technology
that help to grow the business activities. This report has covered various topics such as process
of establishing and running a small business by taking risk. Entrepreneurs have ability to

innovate new ideas by developing business activities. Moreover, report has covered qualities,
skills and traits of the successful entrepreneurs.

REFERENCE
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