Understanding Entrepreneurship and Small Business Management

This assignment provides an in-depth study of entrepreneurship, including its definition, types, and importance on the economy. It also explores the traits and skills of successful entrepreneurs, as well as the impact of micro and small businesses on the economy. The report highlights the differences between various entrepreneurial ventures and discusses the experience and background of entrepreneurs that foster or hinder entrepreneurship.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of entrepreneurial ventures and relation with entrepreneurship typology....1
P2 Similarities and differences between entrepreneurial ventures.............................................2
P3 Impact of the small and the micro business on the economy................................................4
P4 Importance of small start- ups and small business on the economy......................................5
TASK 2............................................................................................................................................5
P5 Characteristics, traits and skills of successful entrepreneurship............................................5
P6 Aspects of entrepreneurial personality reflecting the entrepreneurial mindset and
motivation...................................................................................................................................6
P7 Analysis that how experience and background fosters or hinders the entrepreneurship.......7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is the process in which the budding entrepreneur who designs, launches
and run and manage a new business which is generally small scale business at the initial stage.
The people conducting this whole process is known as the entrepreneur. The report will outline
the different types of the entrepreneurial ventures. Further the report will reflect the similarities
and the differences between the different types of entrepreneurial ventures. Also the report will
highlight the impact of the micro and the small businesses on the economy. Also the report will
depict the importance of small business on the economy. After that the report will discuss the
traits and skills of the successful entrepreneurs. Also it will analysis that how entrepreneurial
personality reflects the entrepreneurial mindset and the motivation. At last the report will
highlight that how the experience and background of entrepreneur fosters or hinders the process
of entrepreneurship.
TASK 1
P1 Different types of entrepreneurial ventures and relation with entrepreneurship typology
The entrepreneur is a person who starts, manages and runs the business with limited
resources and taking huge amount of risk and then getting reward according to the risk taken
(Hoogendoorn, 2016). An entrepreneurial venture is a project or any business activity which is
new and upcoming in the market by the entrepreneur and the success of the venture is uncertain
and difficult because it involves the risk of failure also. There are four different types of
entrepreneurial ventures which can be opened up by the entrepreneurs. These ventures are
discussed below:
Micro business entrepreneurship- these are small businesses with a minimum number of
employees and with use of least capital. A micro enterprise generally operates with less than 10
employees and minimum capital. These venture adds value to the economy because it creates a
micro business which enhances the income and lowers the overall cost of the business.
Small business entrepreneurship- this type of entrepreneurial venture is a business which is
privately owned and operated, it has smaller number of employees and also has low volume of
sales. It generally operates with minimum 10 number of employees and maximum 49 employees
and also these types of ventures requires limited capital to operate. Some examples of small
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business entrepreneurship are travel agents, grocery stores, internet commerce store fronts,
electricians, plumbers etc.
Medium scale entrepreneurship- medium businesses are type of non-subsidiary and
independent organisation and it is managed and run with less than 50 employees (Walsh and
Cunningham, 2016). These enterprises emerges from the slow and the steady growth of a
successful small business. As a company it earns more revenue as compared to the small and
micro ventures.
Large company entrepreneurship- this type of venture works with minimum of 250 employees
in the company. These ventures uses techniques like innovation, offering of the new products
that may attract new customers. As the venture is large scale, the entrepreneur faces high risk and
earn higher rate of profit. This type of undertaking manufacture the products in bulk, provide
services in high volume and they contacted to many clients and consumers.
Relation with entrepreneurial typology
Scalable start-up entrepreneurship- it starts with an innovative idea and searches for a
repeatable business model which will turn into a profitable and high growth venture. It is a huge
venture because starts business by entering into a large market and by taking the share away by
the incumbents or by creating a new market. These entrepreneurs start their venture by knowing
from day one that their vision and mission can change the world in positive way.
Social entrepreneurship- it refers to doing the business for the social cause and society's
upliftment. It maybe a non- profit, voluntary, or profit or hybrid organisations which mainly
focuses on the understanding of the needs of the people and satisfying them by creating and
providing quality services to them. The social entrepreneurs combines the commerce and trade
with the social issues in such a way that it improves the lives of the people connected to both the
business and the society.
P2 Similarities and differences between entrepreneurial ventures
The meaning of different types of entrepreneurial venture is clearly explained an the
above part (Turró, Urbano and Peris-Ortiz, 2014). All the ventures have their own distinct
features and advantages but then also there are some similarities and differences between all
these different types of the entrepreneurial ventures.
Similarities between micro, small, medium and large enterprises
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All the entrepreneurial ventures are different in terms of nature of business, the size of the
business, the goals, aims and objectives of the business. But then also these entrepreneurial
ventures have some similarities in them.
All the ventures works with the sole aim of profit earning and growth of the business.
The other similarity is that all the entrepreneurial ventures concentrates on exploiting the
available opportunities in the markets.
Every entrepreneurial enterprise focuses on the innovation and creativity in their work and their
organisation culture.
All the four entrepreneurial ventures aims to provide good quality of products and the services to
the end users and potential buyers (Eniola and Entebang, 2015).
They all aims at fostering the growth of the economy by earning profits and adding it to the
Gross Domestic Product (GDP) of the economy.
All the four ventures aims at understanding the customers preference, choices,wants and needs
and accordingly provide for the products and the services.
Differences between the different types of the entrepreneurial ventures
With these similarities there are also some differences between the different types of the
ventures. These differences are as follows:
Basis Micro business
entrepreneurship
Small business
entrepreneurship
Medium business
entrepreneurship
Large business
entrepreneurship
Meaning It is a type of
business which
employs very less
number of
employees.
These enterprises
are independently
owned and
operated and has
less number of
employees and
low sales volume.
These are type of
non-subsidiary
and independent
organisation and it
is managed and
run with less than
50 employees
These enterprises
are mostly held by
the general public
investors and are
in form of profit
or non-profit or
partnership.
Number of
employees
It operates with
minimum 1 person
and not more then
10 employees.
It consist of less
than 49 and more
than 10
employees.
This type of
venture employees
less than 249
employees and
This ventures
operates with at
least 250
employees or
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more than 50
employees.
more.
Goals and
objectives
The goal of this
venture is to earn
enough money to
fulfil the basic
physiological
needs of life like
food, water, cloth
etc.
Here the aim is to
generate enough
profits to take care
of the company
and to ensure
longevity and
continual
development of
the company.
The objective here
is to develop the
area where the
venture is
established by
providing them
good quality
products and
services to the
society and to
generate good
amount of profits.
The goal of the
large business
entrepreneurship
is to work as a
team and earn
huge amount of
profits and help in
increasing the
growth of the
economy by
adding to the GDP
of the country.
P3 Impact of the small and the micro business on the economy
Small enterprises are independently owned and operated and has less number of
employees and low sales volume. Micro business are very basic type of entrepreneurial venture
and this type of business consist of maximum 9 and minimum 1 employees. Micro business are
can be defined as sole proprietorship (Burrows, ed., 2015). This type of business is easy to
operate and require minimum capital. Both these forms of business have a great influence and
impact on the economy. The impact of both the businesses on the economy are discussed below:
Economic growth- all the small business does not remain small forever. They tend to grow more
and establish themselves in the global market. This increases the economic growth and the
prosperity of the economy.
Mapping the future- the way small business contribute to the local economies is by using
innovation and creativity in their working style. Small businesses tend to encourage
entrepreneurial spirit by attracting the individuals who invent new products and have ideas on
how to develop existing product.
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Adapting to the changing climate- many small business possess the ability to respond and to
quickly adapt to the changing economic conditions. This is because the small businesses are very
consumer oriented and understands the needs of the community. Also the small businesses
accumulate less revenues than the larger corporations which means that they have less resources
to loose at times of the economic crisis.
Employing local workers- these business contributes to the local economies by bringing growth
and innovations in the community. These businesses helps in stimulating the economic growth
by providing employment opportunities for the people of the economy. These businesses tends to
attract talent who invent new products.
P4 Importance of small start- ups and small business on the economy
A start up is a young company that is just beginning to develop. Start ups are usually
small and initially financed and operated by a handful of founders or one individual. Start up is a
business or a company which is initiated by individuals or entrepreneurs (Stamboulis and Barlas,
2014). This aims to develop a viable business model to meet a marketplace needs or the
problems. Small start ups provides good opportunities for the entrepreneurs and creates jobs in
the society. The importance of the start ups can be discussed as below:
The start ups produces more patents than large corporation because employees are given more
freedom to work independently and to work with innovations in the start up. That is why the start
ups and the small businesses tends to attract more workers who are willing and able to think
creatively.
Small businesses and start ups are integral part of the economy which helps to create a network
of financial interdependence that fosters economic condition, prosperity and growth of the
economy.
Start up creates more jobs which means they provide more of the employment opportunities.
More employment opportunities means improvement of the economy.
The small businesses and the start ups are nimble because they can adopt to the changing
marketplace conditions and the product innovations faster.
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TASK 2
P5 Characteristics, traits and skills of successful entrepreneurship
Traits refers to a distinguishing feature, quality or a characteristic which is possessed by a
particular person only. Skills refers to the ability to carry out a task with pre determined results
within a given time frame. The different types of skills and traits followed by the successful
entrepreneurs which are Elizabeth Gooch and Tom Mercer are as follows:
Risk taker- Elizabeth is has an immense risk taking capacity. This can be said because for
working 12 months in HSBC she left her job and started her own business.
Visionary- she had a clear vision that her business will be successful. Even when her company
suffered from losses than also she didn't lost her vision. And she kept on trying to recover from
the losses and at last she recovered from all the losses because her vision was clear.
Perseverance- it refers to the ability of not giving up anything which cannot be achieved. It
refers to the continued efforts to do or achieve something without paying attention to the levels
of difficulties and the failures. At the middle of the journey business suffered two consecutive
losses (Welter and Gartner, eds.,2016). But then also Elizabeth did not lost her perseverance and
kept on trying. And in next year the losses were recovered and she earned immense amount of
profits.
Clarity- Tom Mercer had the clarity that what he has to do in the life. By way of day dreaming
and observing the atmosphere around himself he developed an business idea. By his observations
he was very clear about what he has to do to develop his business successfully.
Rare business skill- Tom Mercer has a very important skill of getting the idea for the business.
Any person cannot have same skills and traits. Tom had a rare skill of observing the
environment. With this skill, he started the business in such a manner that he was cent percent
sure that his business will be viable and successful.
P6 Aspects of entrepreneurial personality reflecting the entrepreneurial mindset and motivation
The entrepreneur is a person which has an ability and thrust to carry out innovations,
characterized as a new source of raw material, a new method of production, a new product, a
new market and/or a new organizational principle. Personality is a combination of different set of
characteristics and features and qualities that forms the part of the individual's behaviour and
characters (Burns and Dewhurst, eds., 2016). There are certain entrepreneurial personality which
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reflects the mindset and motivation of the entrepreneurs. Some of these personalities are as
follows:
The improver- it refers to a business predominately working in the improver mode. In this the
entrepreneur focuses on the company with the motive of the improvement of the world. The
entrepreneurs working as an improver, have an unwavering ability to run their business with high
ethics, moral values and high level of integrity. With the case study it can be linked as Elizabeth
taking measures to improve her business fully.
The adviser- it is a type of personality where the entrepreneur and business and its surroundings
will provide extremely high level of the advice and the assistance to improve the business. This
is evident in the case study of the Elizabeth where because of the advice of Roger her two years
losses were recovered.
Optimism- to be a successful entrepreneur he must be goal oriented. But it is not just enough to
set the goals and objectives (Wu and Huarng, 2015). The entrepreneur must properly plan
everything and makes a proper series of steps which are to be fulfilled for achieving the pre
determined objectives, vision and goals of the business.
P7 Analysis that how experience and background fosters or hinders the entrepreneurship
There are many factors which influences individual's growth as an entrepreneurship. It is
affected by factors such as family background, experience and other entrepreneurs also. Social
values are nurtured in a person at time of his childhood. So the values learned by the
entrepreneurs are based on their learnings from their family. Actually, there is a link between
entrepreneurial characteristics and background of the individuals. Sometimes background of
some individuals becomes either the factor of hindrance or it fosters the growth of the
entrepreneur.
In the case study of the Elizabeth, it can be easily observed that without the technical
knowledge it was tough to conduct the business in proper and smooth working. As she was not
having proper knowledge of the technical aspect. She did not understood the technical aspects
and because of this she suffered lasses for two consecutive years. After that she met to Roger
Baker Bates and he advised that he should focus on the software rather than the consultancy
work. After meeting to Roger she understood that it is the right time to convert the business of
consultancy to the business of software. By studying this instance we can say that experience and
background fosters or hinders the entrepreneurship (Drucker, 2014). This is so because Elizabeth
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did not have the background of being an entrepreneur but then also she tried her best to become
one of the successful entrepreneur. By facing some ups and downs she was able become a
successful entrepreneur. With this instance we concluded that because she was not having the
background her way of becoming entrepreneur was hindered. At the same time Roger Baker
Bate with his experience helped Elizabeth throughout the way of becoming the entrepreneur.
With this episode we can conclude that experience of a person also fosters or hinders the way of
entrepreneurship.
In the case of Tom Mercer, we can see that Tom has struggled a lot regarding the
business place. As he does not have the location or place to conduct its business he started it in
railway station and even when it has become tough to conduct inside the station he came out and
started his business outside the station (Scarborough, 2016). On the other hand, Tom has some
business skills through which he has succeeded in getting space in the supper shop at the time of
recession. With this case it can be concluded that if a person has a strong will power and high
degree of perseverance than he can achieve out of the box things. It is same in the case of Tom
Mercer, he did not live his hope even when he was not allowed to do his business in the train. By
facing some ups and downs he was able become a successful entrepreneur. With this instance we
concluded that because he was not having the background his way of becoming entrepreneur was
hindered. But because of the high perseverance and high positivity and motivation he was able to
supersede all the complications in the way of becoming successful.
CONCLUSION
After the study it can be concluded that entrepreneurship is the study of both that is how a
new business is created as well as the actual process of starting up a new business. The
entrepreneur is a person who posses an idea and works in direction of creating the idea into a
reality. The report outlined the different types of the entrepreneurial ventures. Further the report
reflected the similarities and the differences between the different types of entrepreneurial
ventures. Also the report highlighted the impact of the micro and the small businesses on the
economy. Also the report depicted the importance of small business on the economy. After that
the report discussed about the traits and skills of the successful entrepreneurs. Also it analysed
that how entrepreneurial personality reflects the entrepreneurial mindset and the motivation. At
last the report highlighted that how the experience and background of entrepreneur fosters or
hinders the entrepreneurship.
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