Entrepreneurship and Small Business Management

The report concludes that there are different types of entrepreneurs and small businesses play a significant role in generating employment and economic development. It suggests that individuals planning to start a business should develop an understanding of company and employment laws to establish a company successfully.

Entrepreneurship and Small Business Management

Contents
Part 1.......................................................................................................................................................3
P1 Different types of entrepreneurial ventures and topology.................................................................3
P2 Difference and Similarities between entrepreneurial venture...........................................................4
P 3 Effect of micro and small business on economy................................................................................5
P 4 Explaining the importance of small businesses on the growth of social economy............................6
P5 Characteristics as well as abilities of successful entrepreneur...........................................................7
P6 Judging the way features of the entrepreneurial personality reflect entrepreneurial motivation and
mindset....................................................................................................................................................8
P7 Evaluating the way people background as well as past experience can hamper foster
entrepreneurship....................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Entrepreneur is recognized as a person who have knowledge, skills, and core
competencies which are required for managing business in a successful manner.
Entrepreneurship is basically referred to as the activity of setting up business, taking up financial
risk with the purpose of gaining the financial benefits. The potential or willingness to develop as
well as enhance business venture is defined as the entrepreneurship. Managing the business is
considered to be vas very difficult task. In United Kingdom small medium enterprise are
contributing a lot towards the social as well as economic development of the nation.
The present project has focus on developing the understanding about the various forms of
entrepreneurial ventures and topology. It also emphasizes on identifying the way small business
enterprise contributes to the economic development of nation. The study will highlight the
factors which has direct as well as significant influence on the entrepreneurship.
Part 1
P1 Different types of entrepreneurial ventures and topology
The four types of entrepreneurship as suggested by Steve Blank are as follows:
1.Small Business Entrepreneurship: All the small businesses that are carried out in order to
feed the family and make small profits for Instance grocery stores, carpenters, plumbers,
electricians, hairdressers etc. come under this category wherein their objective is not to take over
an industry or make a lot of profit. The source of funds for carrying out these types of businesses
are often friends/ family or small business loans.
2. Scalable Startup Entrepreneurship
Scalable startup entrepreneurship is somewhat different from that of the small business
entrepreneurship as the people who carry out these types of entrepreneurship know from day one
that their vision can somehow change the world. They attract investment from people who are
equally crazy about finding the scalable business model and then they invest more venture
capital in case they find that the focus scale requires it.
3. Large Company Entrepreneurship
Large companies often depend well upon finite life cycles. The resulting growth is often
achieved by sustaining innovation, offering new products that are variants around their core
products. large company entrepreneurship can also face pressure for disruptive innovation due to
-Changes in customer tastes, new technologies, legislation, new competitors, etc.
4. Social Entrepreneurship

the entrepreneurship that develops products and services in order to solve the social problems or
for the betterment of the society as a whole. They may be profit, not profit or hybrid but the goal
is never to achieve the market share or create wealth.
5.International entrepreneurship: It is recognized as the large organization operating at big
scale. The main purpose of such types of entrepreneur is to foster the business growth and
expand the operations . Such types of entrepreneur always have focus on identifying as well as
fulfilling needs of consumers and gaining knowledge about the strategies adopted by competitor.
This tactics assist business unit in gaining competitive advantage and increasing sustainability in
the market .Such types of organization can raise funds from banks or other investors (Schaper,
ed., 2016). They have advanced technologies which supports the entrepreneurship ventures in
minimizing the chances of risk and increasing the operational efficiency.
P2 Difference and Similarities between entrepreneurial venture
Each organization have unique strength and weakness. There is significant as well as
major difference between the scope of size, international and domestic entrepreneurial business
venture. Domestic entrepreneur business venture operates on the small scale and generally
execute few operational activities. On the other hand, international business venture operates on
large scale. These types of organization have business operations worldwide.
Small medium enterprise generally earns low revenue. Whereas, big firms generally have
high potential to generate high profits and income. Small medium enterprise has limited
resources and consists of few employees (Drucker, 2014). On the other hand, international
companies have more than 50 workers and have expensive resources which assist an enterprise
in expanding business.
Small companies have flat organizational structure which allows manager to make quick
decision. On the other hand, big enterprise has complex business structure due to which
management has to face difficulty in making judgement. Due to the hierarchical structure, there
is lack of direct communication between employees working at lower level and top-level
managers. In the big companies there is high level of dissatisfaction among workers. Whereas
due to the flat business structure, top level management communicate directly with the
employees. This factor assists manager ion providing the high level of satisfaction tom
employees.
Male and female entrepreneur organization. There is major different between both the
business venture. In female business venture, there is less investment is made by an

entrepreneur or business owner. In such types of firm an entrepreneur has complete control on
the operations and they have focus on the getting the task or activities executes under their
supervision. Whereas, Male entrepreneur has the high risk bearing capacity so they generally
believe in making the huge capital investment in development of business,
Serial business venture, an entrepreneur of this type of business venture have the
responsibility to monitor day to day operation. Such types of firm have limited financial
resources, in order to fulfill the basic need of business, an entrepreneur raises the money or funds
from their relatives, friends and family members. On the hand, international companies have
varieties of sources such as banks, creditors, investors from where they can raise capital in order
to cater the demand of routine business function. Global enterprise has the high potential to earn
high revenue, whereas, serial ventures has high capacity to grow at rapid rate.
Small medium enterprise is contributing a lot towards economic development of United
Kingdom as compared to big organizations (Stimpson and et.al., 2016). An entrepreneur of small
medium enterprise has focus on developing as well aa delivering innovative products to
customers. On the other hand, the intention or aim of big company is to expand business and
earn high profit.
Besides difference between two entrepreneurial business venture there is similarity
between two business venture, both domestic as well as international company has focus on
serving the customers and delivering them high level of satisfaction to them. These organization
conduct market audit at the regular interval of time in order to analyze the need of customers.
Serial as well as female entrepreneur have focus on developing the innovative products
which supports an organization in achieving success and fostering growth.
P 3 Effect of micro and small business on economy
Micro or small business have a significant impact on the economy. Small businesses and
enterprises are often developed, enhanced, operated and owned by individuals and have a few
employees. These businesses may not generate as much as the profit generated by the large
enterprises but they are definitely the backbone of any economy.
The three major benefits and contributions of the small business in the economy are:
1.Financial Independence: Any small idea can be converted into a small business venture with
lots of hard work and a little luck and therefore it gives financial independence to the people
carrying out the business and also if it prospers in the future it can create employment
opportunities for others too (Bridge and O'Neill,2012).
2.Encourage Innovation: the second benefit of any small business enterprise is that it encourages
innovation in the nation as every business in order to fight the competitors is focusing on to
innovation. New products and services are developed and offered which is good for the
economy.

3.Create Employment Opportunities: Every business needs manpower in order to operate
smoothly, therefore more and more employment opportunities are created and the manpower of
the nation is utilized and thus helps in the economic development of the society.
Sometimes small enterprises are established with big ideas in the mind for instance apple,
amazon, google, HP and Disney.
There are certain definition’s available for the small businesses which are:
The companies which have less than 500 staffs (manufacturing and mining)
The companies which employ less than 100 workers in context of wholesale Trade.
 Manufacturing and mining industries – 500 workers
 Wholesale trade - 100 employees.
 Retail and service - $5 million.
 Construction - $29.5 million.
 Trade contractors - $11 million.
 Agricultural - $0.76 million.
P 4 Explaining the importance of small businesses on the growth of social economy.
Small businesses not only help in the development of the economy but also help in the
development of the society in the following ways:
1. Community Identity
Small businesses create an identity for the community indulged into carrying out the business.
Municipalities and tourism boards try to preserve these unique characteristics of a community for
advantage of the society.
2.Community Insolvent
When a certain community is involved in carrying business they create opportunities for their
generations to carry out the same ancestral business and preserve the culture and the art which in
turn is good for the society (Barringer and Ireland,2010).
3. Community Health
Many Small business owners develop relationships with their customer. A community is created
small associations are made and people help each other in carrying out business and solve
problems themselves if there are any.
4.Enviromental Benefits

Small businesses often do not consume more of the natural resource as the setup is often small
and in the residential area thus less water electricity and fuel are consumed and it results is less
environmental pollution.
5. Increasing the Tax Base
When the locals buy products from the local businesses the tax dollars stay with their own
community rather than buying from the chain stores. Thus, helping in the social and the
economic development of the society.
6.Local Jobs
More of local jobs are created in the society and the talent does not flow out of the nation for
better jobs, these small businesses ensure the overall development of the society in so many
ways.
7. Entrepreneurship
By carrying out business the owner is taking charge of his own financial stability as well as his
future in this way he is also motivating others to leave their jobs and develop their own
enterprise.
8.Innovcatiojn and competition
Innovation is one of the outcomes of small businesses as every business focuses on developing
new products and services as to meet the competitors in the market. Better competition probes
the entrepreneur to develop new and improved goods and services.
9. Less Infrastructure and low maintenance
As compared to big chain stores and big shopping malls small business enterprises require less of
infrastructural planning and less maintenance.
10.diverse locally made Goods.
As small businesses are developed locally all the goods will be available locally and the price
will be reduced resulting into the betterment of the society.
P5 Characteristics as well as abilities of successful entrepreneur
Many of the successful business people have common traits and abilities
1.Disciplined
Successful business people are disciplined individuals and have the ability to understand the
requirements in order to achieve the goal, also they develop the tactics and remove all the
hinderances that come in their way. They plan each day and move a step closer to their goal.
2.Confidence
Successful entrepreneurs are focused and are confident and have high degree of self-esteem and
confidence which helps them achieve their goals

3. Open Minded
Successful entrepreneurs are always open-minded individuals who have the ability adapt to the
changing circumstances and environment also they are innovative and look around and find new
potential businesses.
4Self Starter
Successful people are self-starters they do not wait others to initiate or take the charge, they
believe in themselves and are good leaders that’s why there able to motivate their workforce.
5. Competitive
Entrepreneurs have the ability and the art to create connection between unrelated events and they
use this connection for their advantage
6 Determination
Successful people are determined and make all the necessary efforts to achieve success they do
not get disheartened with failure and consider it as a stepping stone for success and do not
believe that there is anything that they can’t do.
8. Strong People Skill
Strong People skills refers to the communication skills, negotiation skills, motivating skills
which help them work with others in order to achieve the organizational goals.
10.Passion
Passion is the most important trait of a successful entrepreneur. Passion is something that comes
from within and drags the individual to keep working hard in order to be successful.
P6 Judging the way features of the entrepreneurial personality reflect entrepreneurial
motivation and mindset
All the entrepreneurs have different mindset, which may depend on their individual
personalities or the field that they have chosen to work
While they figure out their approaches to meet the challenges of entrepreneurship they develop
their own ways and mindsets (Dorantes, Hallam and Zanella, 2017).
Some of the mindsets of successful entrepreneurs are as follows:
1. Reach out to customers: Always reach out to the customers and finding out about the kind of
the product and the specifications.
2.Finding a new market for the existing Product
Finding new market for the existing product helps, reach out to the untouched population.
3.Use networking to build your business

Networking is important in order to advertise your merchandise, also networking can be used to
raise funds.
4.Focus on what is good for your business
Focusing on your business and looking around and creatively using it to your advantage is what
entrepreneurs do.
5.Always Maintain Quality control
Maintain Quality is must as it is something that is related with the goodwill of the business.
P7 Evaluating the way people background as well as past experience can hamper foster
entrepreneurship
The background of an entrepreneur from which he is coming from and the kind of
education and expertise he has definitely affects and help him grow the venture in a positive
way. Also, personality traits like need of achievement, internal locus of control, self -reliance and
extroversion play an important role in determining the success or failure of the venture.
The Background of the entrepreneur comprises of the education and experience he has gained
while overcoming the challenges of entrepreneurship (Abreu and Grinevich, 2013). Networking
activities on the other hand comprise of the size and the frequency of communication networks.
A structural equation modeling technique which has been developed to estimate the path with
latent variables known as the PLS (partial least squares).
The technique states that experience, networking activities and number of partners as well as
internal locus of control and need of achievement have positive impact on the venture growth.
the personality traits like self-reliance- It include one’s own powers, resources and
extroversion- Interest in or behavior directed toward others or one's environment rather than ones
elf may have a negative impact on the growth of the venture.
Prior Experience and entrepreneurship:
To understand the human behavior, it is very important to study the prior experience and
knowledge of the entrepreneur. Most of the start-ups that have emerged today are a result of a lot
of knowledge and experience in the relevant field, past experience helps and individual to
understand the opportunities that already exist in the market place and also helps him to identify
the hindrances and problems that he might face while operating the venture of developing the
product. Also, past experience supports an individual to come up with innovative ideas and
methodologies
If one has worked in the same industry, or related industry they have idea about the customers,
suppliers, competitors, channels of distribution and opportunities which he can use for his
advantage. Trying to learn everything by the method of trial and error can sometimes be
dangerous, therefore applying prior experience in this regard can be beneficial for the
entrepreneur.

Knowledge can come from working in a specific industry, working in a related industry or from
personal experience, sometimes personal problems can be converted into business opportunities.
It’s really a matter of probabilities (Scott,2016). Hence building a business venture out of what
an individual already know and have knowledge about will be beneficial for a person in order to
become successful entrepreneur.
As per the Big five model, a successful entrepreneur have five character traits these are :
Neuroticism: According this an entrepreneur is required to avoid taking emotional decisions. A
highly emotional persons are unstable. An individual emotional trait are recognized to be as
emotionally stable..
Extraversion: a business owner with this sort of personality trait are generally have focus on
performing their duties and fulfilling their liabilities towards company.
Openness :Business owner with this kind of personal trait are normally have high potential . to
facilitate innovation. These people generally have innovative thinking which supports them in
analyzing solution to different business problems..
Agreeableness: Business owner with this sort of personally trait are usually have caring attitude.
Consciousness: an individual with this kind of personality trait motivates and drives other people
towards accomplishment of targets.
CONCLUSION
Report has concluded that there are the varieties of entrepreneur typologies. It has also
been concluded from the report that there are varieties of combination of skills and core
competencies are required to be developed by an entrepreneur in order to manage business in
successful manner. In addition to this depth knowledge and experience in particular field is very
much important in order to become effective and successful manner. Study has highlighted the
several factors which has direct as well as significant impact on the entrepreneur mindset. It has
also been concluded from the assignment that there are several constituents which encourage an
Individual to start or establish new venture. It has also been concluded that small enterprise are
contributing a lot towards generation of employment and economic development of the country.
It has been suggested to a person those who are planning to start business that they should
develop understanding about the company and employment laws .As this strategy will assist
person in establishing a company in successful manner and eliminating the legal obligation.

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