Entrepreneurship and Small Business Management

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................1
P2: Similarities and differences between entrepreneurs..............................................................2
TASK 2............................................................................................................................................4
P3: Interpretation and assessment of relevant data to illustrate how the impact of micro and
small enterprises on the economy................................................................................................4
P4: Importance of small business and business start-ups to the growth of the social economy..6
TASK 3............................................................................................................................................8
Covered in PPT............................................................................................................................8
TASK 4............................................................................................................................................8
P7: Examination using relevant examples the role of background and experience in hindering
or fostering entrepreneurship.......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Entrepreneurship refers to creation of a business using creativity and innovation with an
aim of generating profits (De Bruin and Mataira, 2018). It often involves bringing a new product
or a service according to needs and requirements of consumers in the market. It is highly
rewarding in terms of growth of profit,capital and economy. An entrepreneur is a person who
takes the initiative of starting a new venture with a new idea by taking risk. Being persistent in
efforts despite failure is the quality that makes an entrepreneur different from others. In this
assignment, analysis will be made on types of enterprises,impact small enterprises create on
economy. Additionally, determination of aspects of mindset of an entrepreneur and examination
of role of environmental factors in supporting or hindering entrepreneurship have been covered.
TASK 1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurial ventures are organisations started by the entrepreneurs which facilitate
innovation and creativity in providing products and services to consumers (Welter and et.al.,
2017). An Entrepreneur can be referred as a person who starts a business by taking the benefit of
an available opportunity which can be either in form of a product or a service.
Entrepreneurship is a process of planning and running a business which is mostly small-
scale in nature with an aim of generating profits.
Types of entrepreneurial ventures-
Small business entrepreneurship- In it, the enterprise started out by entrepreneurs is
small-scale in nature. The resources available are very limited and operations need to be
managed with them. Optimum usage of funds in a small company results in sustainable profits.
For e.g. - A small-scale textile manufacturing unit can be considered as an example of small
business entrepreneurship.
Scalable startup entrepreneurship- This is a unique type of entrepreneurship where
entrepreneurs start out with a vision and innovation to bring a change in existing pattern of
society. They are quick in finding out new demands of consumers and grasp the opportunity to
take action. For e.g.- Amazon, which is an online shopping website can be an example of
scalable startup entrepreneurship.
1

Large company entrepreneurship- These enterprises are set to work on a large-scale
and take the advantage of economies of scale in order to maximise their profits (Audretsch and
Caiazza, 2016). As they earn a large amount of profit they can invest in research & development,
innovation as compared to smaller enterprises. For e.g.- Microsoft is an example of large
company entrepreneurship as it is a global company.
Social entrepreneurship- In this type of entrepreneurship the aim is not to earn profits
but to fulfil social responsibility. Social welfare is the first priority in these type of organisations
as they seek to help the underprivileged people in society. Better World Books is an example of
it which aims to increase literacy rate in the world by reusing and recycling books.
Typology of entrepreneurship-
Serial entrepreneur- A serial entrepreneur is a person who starts many small businesses
within a very short period of time (Devece, Peris-Ortiz and Rueda-Armengot, 2016). They bring
changes continuously in an order-wise basis. A serial entrepreneur uses scalable startup
entrepreneurship model as it helps in implementing dynamic changes.
Social entrepreneur- This type of entrepreneur focuses on fulfilment of social
responsibilities and adding value for society with work rather than earning profits. A social
entrepreneur uses social entrepreneurship model as by using it social objectives can be fulfilled.
Female entrepreneur- Women who take the initiative of bringing a product or service in
market by taking a certain level of risk are female entrepreneurs. A female entrepreneur makes
use of the small business entrepreneurship model as it helps them in easily managing operations
of the enterprise.
P2: Similarities and differences between entrepreneurs
Differences-
Basis Lifestyle
entrepreneur
Serial entrepreneur
Goal To alter their
personal lifestyle
and pursue their
passion. They aim
to focus on what
To facilitate continuous change in market
by innovation. They bring out changes in a
chronological order.
2