Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types of entrepreneurial ventures and the way they are related to Typology.........1
P2 Similarities and difference between Entrepreneurial ventures...............................................3
LO2..................................................................................................................................................5
P3 Impact of micro and small-business on the economy.............................................................5
P4 Importance of small business and Business start-up to growth of social economy................6
LO3..................................................................................................................................................7
P5 Characteristic traits and skills of successful entrepreneurs....................................................7
P6 Entrepreneurial personality, mindset and motivation.............................................................8
LO4................................................................................................................................................10
P7 Background and experience of entrepreneur........................................................................10
CONCLUISION............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is a process of developing new business by using various human and
physical resource to earn profit. This report covers about different types of entrepreneurial
ventures and the way they are related to typology of entrepreneurship. It also explains
similarities and difference between entrepreneurial ventures. This report discusses the impact
caused by micro and small business on the economy and importance of its in growth of social
economy. This report also describes about characteristic traits and skills of successful
entrepreneurs that differentiate from other business manager. It analysis aspect of entrepreneurial
personality reflect entrepreneurial motivation and mindset. At last, this report explains about
background and experience of various entrepreneurs, along with their characteristic traits that
can hinder or foster entrepreneurship.
LO1
P1 Different types of entrepreneurial ventures and the way they are related to Typology
Entrepreneurship is analysation of how to start new business which helps an entrepreneur
to develop business and earn profit by accepting risk associated with it. Entrepreneur uses natural
and human resource for earning profit and gaining competitive position in the market.
Entrepreneur is free leader and can operate its business as per his choice whereas intrapreneur is
an employee of company that helps in bringing innovative ideas in the company.
There are various types of Entrepreneurship such as small-business Entrepreneurship,
High Tech Firms High Growth Firms and social Entrepreneurship.
Different types of Entrepreneurial venture
Small business Entrepreneurship: It means business is operated on small scale with less
capital, human and physical resource to earn profit to feed their family. Small business acquire
its capital by taking loans, borrowing from friends and family or from personal saving of
individuals. Grocery store, travel agent, consultant are some examples of small-business
enterprise.
High Growth Firms: It includes such firms that are growing at rapid pace and revenue earned
by company is more than industry average over several years. The firms are said to be growing
when there is overall growth in revenue of the company and its profitability over several years.
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Thus, growing firm gain competitive advantage in the market by building strong brand image of
the company. For example: Beauhurst is one of the fast growing company in UK and its name is
listed on 19 separate list as high growth company.
Public company: It is limited liability company whose share are owned by public and these
companies can traded their business in open market. Public company meets its capital
requirement by raising capital from public in exchange for share of the company. Public limited
word is always included in after name of public company and its shares can be listed or unlisted
on the stock exchanges. For example: Beeks Financial cloud is a public company that provide
low latency service to institutional capital market.
Private company: Such companies are owned by private individual or owned by two or more
partners and its share cannot be trade to public. Valuation of share of private company is difficult
and its share are also less liquid so difficulty in raising funds. Greenergy is distributor of petrol
and diesel that operates its business in UK and contribute to quarter share of UK market.
Social Enterprise: It includes such firms that are established to achieve social goals and
maximize its profit to provide benefits to environment, society and its co-owners. Social
Entrepreneurship is part of these firms as they are established with motivate to provide benefits
to society and environment. For Example: Community support and information Finalist is a
social enterprise that is operating its business since 1992 to support economic development.
Typology of Entrepreneurship
Survival Firms: Focus of such firms is to survive in the market by providing product at
minimum cost to its customers and earning less profit margin. In it small-business and social
entrepreneurship are included as their focus is to survive rather than gaining competitive
advantage in the market or increasing its profit.
Lifestyle Firms: Lucrative business provide its owner to pursue luxury lifestyles without
sacrificing its personal life and earning particular level of income. This type of companies
promotes a particular sport or hobby to provide luxury lifestyles to its owner and to some
employees. Thus, large entrepreneurship and high grow firms are included in lifestyles firms as
there aim is to increase market share and profitability of the company.
Aggressive Growth Firms: The main objective of these firms is to increase its growth and
maximize its return on capital by introducing new product or updation of technology. High tech
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