Entrepreneurship and Small Business

This assignment explores the multifaceted world of entrepreneurship and small business. It delves into the impact of entrepreneurship education programs, examining challenges and approaches used for assessment. The analysis also considers the barriers faced by small businesses in their pursuit of growth. Furthermore, it investigates the key qualities that contribute to entrepreneurial success, drawing upon relevant research and practical examples.

Entrepreneurship and Small
Business Management
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Examine different types of entrepreneurial ventures and their relation to typology of
entrepreneurship...........................................................................................................................3
P2. Similarities and Difference between entrepreneurial ventures..............................................6
TASK 2............................................................................................................................................7
P3. Impact of small business on the economy.............................................................................7
P4. Explain how important small businesses and business start-ups will contribute to the
growth of the social economy....................................................................................................10
TASK 3..........................................................................................................................................11
P5. Determination of characteristics traits and skills of successful entrepreneurs that
differentiate them from other business managers......................................................................11
P6. Assessment of how aspects of entrepreneurial personality reflect entrepreneurial
motivation and mindset..............................................................................................................12
TASK 4..........................................................................................................................................13
P7. Examination of different environments that foster or hinder entrepreneurship..................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Entrepreneurship is the ability and willingness to launch a business venture taking in
consideration the risks associated with generation of profits. An entrepreneur is the person who
finds, runs and manages a business venture and takes the responsibility of all the risks and
rewards along with it (Duval‐Couetil, 2013). Present report is based upon the various ventures
that can be considered to be entrepreneurial and also their interrelations with various typologies
are included. Furthermore, this assignment will provide an insight into the impact of small and
micro businesses upon economy. Also, the key skills to be a successful entrepreneur and their
mindset while running the business are covered along with the aspects in which they are different
from other business managers. Lastly, it will unleash the various factors present in the
environment of business entity which foster or hinder entrepreneurship.
TASK 1
P1. Examine different types of entrepreneurial ventures and their relation to typology of
entrepreneurship
Entrepreneurship:
It is the act of developing and organising a business while building and growing it with
the aim of profit generation. This is done by assuming all the risks that can be faced by an
entrepreneur while undertaking the activities to provide goods and services, so that these risks
can be maximised and high profitability can be ensured (Morris and et. al., 2013).
Entrepreneurial activity:
It is strongly associated with the concept of entrepreneurship. Herein, the person
undertaking the business activity with the objective of earning profits, commonly known as
entrepreneur comes with new and innovative ideas. With his imagination in relation to initiation
or growth of economic activities, he gains knowledge about the market, processes and latest
products being sold by competitors in industry.
Enterprise:
It is the term used for a business that is generating profit in the long run but it is often
linked with entrepreneurial ventures. Enterprise communicates about the actions undertaken by a
person who is willing to take risks for launching or growing economic activities to start a
business.
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There are various types of entrepreneurs which are stated below:-
Serial entrepreneurs
Entrepreneur is a person who comes forward with an idea to start a business and then
undertake activities that result in execution of his thoughts. Serial entrepreneur is an individual
who put forward a thought for initiation of a start-up but later assign the duties and
responsibilities to other people for moving to a new venture or idea.
Intrapreneurs:
These are the entrepreneurs who possess the skills, ideas, imagination and knowledge
required to establish a business. They are highly motivated and innovative people who develop
and imagine solutions to a problem being faced by consumers in a society and then start a
business for that. The risks associated with these ideas are lower and backed up by organisation
through finance, skills and knowledge.
Owner managers:
These are the individuals operating in an organisation who are responsible for managing
the work. They work alone or in teams and hold control and management of the entity. They
have the authority to take decision on their behalf and execute the same without any interruption.
These are generally the employees working in an organisation
individuals (Martin, McNally and Kay, 2013).
Typology of entrepreneurship
The typologies of entrepreneurship taken into consideration are lifestyle, growth and
social entrepreneurship.
Lifestyle entrepreneurship:
These types of businesses are set up for doing the work that the owner enjoys or by
achieving a productive activity that provide high profit to the owner. According to Shaw and
William, small firms give a way to the development of certain cultures of entrepreneurship like
the lifestyle entrepreneur. Characteristics of such types of entrepreneurship are:
 The motivation behind this venture is the living style of people instead of growth.
 The actions of management here are often classified as irrational.
 There is a lack of concentration on development of products and services and marketing
campaigns. Owners invest more amount of time in these kinds of firms.
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Growth entrepreneurship:
Such type of entrepreneurship is classified by high opening investment. For the success
of objectives and goals, an entrepreneur gets involved in reinvestment. The target is to improve
the economic profit of investors. Higher profits can only be ensured by sale of products and
services or from existing business. Penrose states such type of business as profit seeker.
According to the point of view of Penrose, big businesses desires profit in order to aim at more
profit in future. Growth of these firms can be characterised by:-
 The expansion of operations
 Facilities to finance the growth factors Resources to continue the growth in culture.
Social Entrepreneurship:
It is the process of using start-ups and other small business to develop, finance and
provide solutions to various problems being faced by people in a society in relation to
environment, social and culture. These are non profit organisations that work for providing
effective solutions by bringing improvements in products of daily needs of society so that they
can live comfortably and derive maximum satisfaction.
Social entrepreneurs:
These entrepreneurs seek a target to raise the living standards of people of the society by
bringing innovative and creative changes in their lives. They do not work for the aim of money
making, instead they are straight forward in improving lives of people by supporting them
through new products and services required in their day to day life.
Growth in social economy:
The social economy is seen to promote growth by providing jobs and improving skills,
knowledge and competence of individuals by eradicating the problem of unemployment and help
in transformation of the economies. It consists of a chain of business having a similar objective
and vision towards the increased growth of economy in various aspects of life ranging from
agriculture to banking. These businesses are mainly micro and small medium sized enterprises.
Entrepreneurship in public sector:
It refers to the measures that are adopted and developed by various local, state and central
authorities to support the entrepreneurs to start their own businesses and also to support them
through their broadly developed networking channels
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individuals (Martin, McNally and Kay, 2013). United Kingdom is a good place for entrepreneurs
in order to start their business due to the following factors:
 Country imposes low tax rates on corporations.
 In UK, the registration of firm can be done in less than 48 hours.
 Country has 2nd largest labour force which gives a boost to new ventures.
P2. Similarities and Difference between entrepreneurial ventures
Differences:
Intrapreneurs Serial entrepreneurs Owner managers
These are the employees of an
organisation who assume the
responsibilities of
development of products and
innovations.
These types of persons setup
their own business with their
ideas and imagination and
later, give the responsibility to
other people for the same.
These are the individuals who
manage operations and have
the authority to take decision
by themselves.
They use resources that are
owed by the organisation.
They use their own resources. They are concerned with
managing the resources that
they obtain from different
sources.
They focuses on work which is
assigned by the firm.
They focus on their own
ventures.
They focus on the ongoing
operations of entity and aim at
expanding it.
Organisational funds that this
type of entrepreneurial venture
uses in order to attain targets
and whatever they have
achieved they gets paid for the
same.
Here, funding this type of
entrepreneurial venture uses
like Bank loads, loans from
family and so on.
This type of entrepreneurial
venture basically uses
organisations capital in order
to improve performance of
company.
Legal status of this type of
entrepreneurial venture stays
just like entrepreneurs that
Legal status of this type of
entrepreneurial venture stays
strong as they take decisions in
If it is talked about legal status,
decisions are basically being
taken by them right on time
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carries all the rights like
decision making and more.
company which is being but they carry just a few legal
decisions only.
Similarities:
Intrapreneurs Serial entrepreneurs Owner managers
These are concerned with
growth in terms of products
and innovations.
These are concerned with
growth in their all ventures.
These are concerned with the
growth of an organisation in
terms of management and
administration.
They are the decision makers
of their own projects and
products.
They are the decision makers
of their ventures
These individuals are the
decision makers of the
employed firm.
Such persons are innovative
and skilled for the
development of product and
services.
They bring innovation in
creating new ventures
individuals (Martin, McNally
and Kay, 2013).
Such individuals are
innovative in relation to taking
decision for the benefit of firm
and employees.
Risk factor under this stays
really very high because,
individuals basically takes
decisions by their own.
For Serial Entrepreneurs as
well, risk factor stays high
because business organisations
Risk under this stays low
because an owner manager
carries all the information
from top to low level.
TASK 2
P3. Impact of small business on the economy
In present business world of United Kingdom, it is being analysed that micro and small
business firms have been playing a crucial role which majorly impacts upon economy of the
nation. Some positive impact or influence on economy can be seen with the help of increasing
rate of job opportunities within the country. Both micro and small business firms have been
discussed beneath:
Micro organisations:
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Firms that comes under this section, does not generates a good revenue in spite they work
for living. Tea stall, small departmental store and so on comes under micro organisation . these
firms consists with 2 to 5 employees where they get daily or weekly wages and its annual
turnover stays beneath £2 million.
Small organisations:
Another type of organisation which majorly stays as a privately owned company that
consists with 49 staff members and not more than that because it is against the policy which is
being made by parliament of United Kingdom. Annual turnover, sales and assets etc should be
covered under £2 million and this cannot be changed in any case.
Apart from this, from last few decades both micro and small companies have raised
economy of United Kingdom (Burns, 2016). In present context, some of impacts which SMEs
have made on UK’s economy and these are given beneath:
 Creativity: It is a procedure creating something new and significant from thoughts to
the real world. It is depicting overall innovation which is being done by SMEs.
Imagination requires energetic along with endeavours. venture draws in imagination
in its activities by enjoying better approaches for playing out a for companies. Along
these lines, little inspiration goes about as a promoter for their profession in
organization.
 Contribution to advancement: Innovative thoughts will probably create in medium
and small scale business organizations when contrasted with substantial business
undertakings. These business associations make utilization of advancement and
improvement while making and conveying items and administrations in an economy.
The point behind this is to pick up consumer loyalty and dedication towards the
organization. This eventually prompts increment in their stake in relative industry and
additionally in market. Alongside that, particularly in administration enterprises, there
are constant changes popular of clients who will in general make open doors for
medium and small scale organizations to develop economy.
 Product Competiveness: Micro and small private venture elements will in general
make rivalry among organizations regarding items and services. Such ventures
contend as far as product through their different strategies. The time required for
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acquirement of raw materials and different assets is additionally less as these
associations have a basic structure where BOD directly interact with the providers.
 Development into bigger undertakings: SMEs and business ventures keep running
with a long objective of forming into extensive excellence. With entry of time,
consistent updation in technology majorly utilized by them while directing actions
and continuous development among products and services offered by them, they step
by step develop and grow regarding number of workers and size of tasks. With steady
extension of their activities crosswise over various parts of world, they form into a
vast venture. Such ventures know the battles that are looked by small and medium
level business organisation while completing its business and in this manner when
they advance into substantial associations; they take measures to support the
advancement and improvement of new and existing private ventures. They embrace
such working examples that underscores upon the development of SMEs through
working with a similar industry.
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(Sources : UK labour market: October 2018, 2018)
Based on the above mentioned graph, it can be said that number of jobs changes on a
seasonal basis which improves number of benefits as well for different departments of a business
organisations that are doing businesses at international level.
P4. Explain how important small businesses and business start-ups will contribute to the growth
of the social economy
It is being found that parliament of United Kingdom focuses on advancing the
development of small and medium scale business firms by giving them financial and other sort
of supports. However, nation have influenced by Brexit and it have impacted in both the aspects
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Illustration 1: UK labour market: October 2018. 2018

(negatively and positively on SMEs and Entrepreneurs, Here, Brexit is a term which is needs to
be taken care of by Entrepreneurs and business associations that are doing business in United
Kingdom. The expression "Brexit" implies UK leave which alludes to the division of British
from European Union. The occurred in June 2016 where a dominant part of 52% individuals
voted and expressed that United Kingdom should be evicted out from European Union. While
England and Wales voted to leave, Northern Island and Scotland needed to remain a piece of
European Union.
In March, 2017 the UK government made up the Article 50 of settlement on European
Union. The arrangement procedure in connection to the nation's exit from EU is as yet going on
and simply after 2019 UK, is going to get evicted from European Union. The partition is nearly
affirmed except if an augmentation of era is settled upon by UK and EU (Goodwin and Heath,
2016). The consequence of this procedure of voting out UK greatly affected the economy of
nation and of other countries as well.
Brexit’s impact on economy was heavy and considerably created unfavourable
circumstances for SMEs. Increment in expansion rates and decrease of money were a portion of
the prevailing impacts of the procedure. In spite of the fact that it is still not affirm that UK
would leave European Union but rather still there have been hypotheses made in connection to
the effect when the procedure will end up clear. Decrease in outside exchange is one of the
evaluated outcomes. The possibility of independent ventures and new businesses can to a great
extent help the economy in beating the emergency because of Brexit. small and medium scale
organizations have an of note job being developed of economy as they delivers products and
services to consumers considering needs and requirements of general public or consumers.
Additionally, such business undertakings encourage the development of economy by making
of openings for work. They utilize the people that are actually less educated, uncivilized and
have careless involvement in work who generally would have stayed jobless. This is because of
the way that substantial scale undertakings have an extensive stake in market and they can't
forfeit with the brand position by offering opportunities to untalented and possibly unviable
individuals (Martin, McNally and Kay, 2013).
Likewise, these undertakings help or boost up the development and advancement of
business of entrepreneurs when they create vast operations. Moreover, numerous of famous
entrepreneurs in UK additionally advance the development of small business as some of the
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time, they re-appropriate a specific task of business that they have less information about, to
small ventures for completion. Government of UK additionally enhance the development of
these elements and new businesses in economy as they help the nation in handling with
significant issues like joblessness, lack of products and services, etc.
TASK 3
P5. Determination of characteristics traits and skills of successful entrepreneurs that differentiate
them from other business managers
If it is talked about business organisations, it is being found that both managers and
entrepreneurs can be considered as two major elements. A manager is a leader within an
organisation who manages and controls the work of employees within a department, unit or
function of an entity. On the other hand, entrepreneurs can be defined as an individual who
determine the issues which is being faced by customers and tries to formulate solutions through
using best fit strategy which is soothing the nature of problem.
Away with this, Entrepreneurs are being considered as person who implements the idea
in real life and convert it into a business where he/she might can deliver services or products to
customers and also focuses on marketing the same. It is being found that being an entrepreneur is
not an easy task because a successful individual who have natural ability to lead or to handle
issues or problems which is being faced by him or by the company which is he/she have owned.
(Morris and et. al., 2013). On the other hand, it has also been analysed that, a successful
entrepreneur can be made by experience and no one in this world consists with entrepreneur
related skills by birth; which means, entrepreneurs do not born but they made. On the other hand,
it has also been found that successful entrepreneurs stays mainly passionate about their business
and are willing to do exceptional hard work towards it. Successfulness comes with excellence
among communication skills or traits (Sampaio, Thomas and Font, 2012). In present context
some of traits are mentioned beneath:
Discipline: A skill which is needed for entrepreneur to be successful in nature in modern
business world. Staying in discipline can help them in developing a number of strategies through
which they may easily hit their targets or goals of company.
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Confidence : Taking right decision in correct time with confidence can help an
entrepreneur to become successful and can easily differentiate him/her from other with ease as
this may lead his/her firm to give good rivalry to others.
Self Starter: A successful entrepreneur knows that if something needs to be done, they
should start it themselves. They set the parameters and make sure that projects follow that path.
On the other hand, managers stay dependent on other which shows distinction in between them.
Competitive: Another skill which a changes a normal entrepreneur to a successful one. It
is required to be confident with the knowledge that can help them in making their businesses
succeed.
Creative: Entrepreneurs often come up with solutions which are the synthesis of other
items. They will repurpose products to market them to new industries. (Qualities of a Successful
Entrepreneur, 2018)
P6. Assessment of how aspects of entrepreneurial personality reflect entrepreneurial motivation
and mindset
Entrepreneur are being considered as those individuals which perceives an idea in
relation to problems faced by consumers and develops solutions by way of stating up a business.
In present context, it is being analysed that these person stays motivated and confident enough to
transform their imagination into reality. The personality of entrepreneur generally possesses 5
main traits described below:- Extraversion: This shows where entrepreneurs mainly can be considered as good
communicators and are zealous and passionate about their work. They are motivated
enough to seek a leadership role. Agreeableness: It means that they are generally cooperative and trustworthy yet also
possess a self‐centred approach in relation to their work. Conscientiousness: Another trait of entrepreneurs which shows that they stay goal
oriented, efficient and responsible towards their work.
 Emotional Stability: This indicates that they are highly confident individuals who are not
easily moved by failures.
On the other hand, Entrepreneurs are individuals who have the capacity and force to do
advancements carry out innovations considered by a new source of raw material, another strategy
for invention of something, analysing another market or improvements in any or all these
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perspectives. The skills and perspective of entrepreneurs isn't worried about the point of benefit
making.
The real motivation behind entrepreneurs is to create answers for the issues which is being
faced by consumers. They are not driven by productivity factors yet the achievement or
disappointment of their start-up or business is fundamental for them (Duval‐Couetil, 2013).
Henceforth, making cash is another vital inspirational factor among business people. Be that as it
may, it is of less importance than the realization of idea.
TASK 4
P7. Examination of different environments that foster or hinder entrepreneurship
In present context, it is being analysed that there are ample number of elements of both
internal and external environment that may foster or hinder business organisations or
entrepreneurship and these are given beneath: Personal background and education: it is being found that this factor where background
or education of business person can impact upon entrepreneurship where it can hinder or
foster. For instance, a person whose siblings or any blood relative has been a part of start-
up would already possess certain knowledge about the management and incorporation of
a venture which would encourage entrepreneurship. Entrepreneurial skill set: Entrepreneur are said to be sole leader or traders which helps
them in diverting of the venture to a successful level (Nakara, Benmoussa and Jaouen,
2012). here they also need to require a number of skills like effective communication,
hard work and persistence, ability to manage and minimize risk and a strong orientation
towards success of venture. For an example: An entrepreneur is filled with interpersonal,
decision taking and many other skills which basically aid them in reaching to new
heights. Through this, entrepreneur could easily improve profit margins and motivate
staff as per the requirements.
 Economic environment: In this context, entrepreneurship can be largely affected because
of fluctuation or demised kind of economic conditions of a nation in which businesses are
being done. Here, it has been analysed that purchasing power of consumers manifested
by different levels of income and economic conditions. For an example: An individual is
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well known about economic conditions of United Kingdom, through this effective results
could be gained with the help of right decisions.
CONCLUSION
With the help of above comprehended assessment, it is being summarised that SMEs and
entrepreneurs helps a country in raising its economy if right facilities are provided by parliament
of same nation. largely Also, is being computed that a number of entrepreneurial ventures
present in world that stays different from each other and does business with distinctive
perspectives. Also, skilfulness and successful traits among an entrepreneur can affect business in
positive manner.
REFERENCES
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Duval‐Couetil, N., 2013. Assessing the impact of entrepreneurship education programs:
Challenges and approaches. Journal of Small Business Management. 51(3). pp.394-409.
Gill, A. and Biger, N., 2012. Barriers to small business growth in Canada. Journal of Small
Business and Enterprise Development. 19(4). pp.656-668.
Mariotti, S. and Glackin, C., 2015. Entrepreneurship & small business management. Pearson.
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