Entrepreneurship and Small Business Management

This document discusses the key aspects of an entrepreneurial mindset and the impact of small businesses on the economy. It explores different types of ventures and provides insights into the typology of entrepreneurship.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENT
PART A...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Entrepreneurial Ventures and Typology of Entrepreneurship.....................................................3
The Impact of Small Businesses on the Economy.......................................................................6
PART B............................................................................................................................................8
Key Aspects of an Entrepreneurial Mindset................................................................................8
Background and Experience that Hinders and Fosters Entrepreneurship..................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

PART A
INTRODUCTION
There is a growth in the economic environment of the current government of UK which
is that there are going to be lower unemployment rate and lifestyle of the people is going to
change. The report would be discussing the factors market scope and size for businesses and the
typology of the business in the market in order to be able to have higher performance. There are
a lot of entrepreneur in the market who are putting in their personal best in order to be able to
operate effectively. Cafe Pod Coffee Co. is a creative and passionate organization in the market
which want to make the customers have higher experience in order to be able to perform
effectively.
Entrepreneurial Ventures and Typology of Entrepreneurship
 Entrepreneur
A person who is ready to take risks regarding economic factor in the hope of getting
higher profitability and ready to start their own business in the market are known as
entrepreneur. There are unique and creativity level as well which is going to be higher in an
entrepreneur and would be willing to get in the market with the new ideas. Example- Richard
Branson who is currently the CEO of Virgin groups came up with a recording studio idea which
was a great start to his business.
 Serial entrepreneur
These entrepreneur are people who want to start a lot of businesses in the market
throughout their career. These type of businesses normally fail or exit in Founder move on next
type of venture. Example- Matt Robinson who has started GoCardless & nested which are two
very famous organizations in the country.
 Intrapreneur
These entrepreneurs act like entrepreneur in a large organization but they are not having a
new business but are getting in new ideas in a large business which is going to be very helpful
for a long run. Peter Jones whose net worth is $367 million is a very good example of this
venture.
 Owner-manager

The entrepreneur is the manager of the organization as well as the ideas behind the
organization as well so that the company will be able to operate effectively in the market. Walt
Disney is a great example of this type which is he did try to make a profit from the venture he
had.
Types of ventures
 Private ventures
These ventures are not at all dependent on the government for the operations and decision
to be made but the focus of these ventures are on the maximum profitability in the market. To
have higher operations there are a lot of risks which are taken by these ventures (Forst, 2019).
Purpose- To gain maximum profits in market.
Example- Clark is a very good example of this type which is situated in UK.
 Public ventures
These ventures are dependent on the government for the products and services they are
distributing in the market. The quality of products is high but the pricing of them is low so that
there is going to be higher results (Kurilova and et.al., 2019).
Purpose- These ventures do not focus on profits but to make the social welfare in the country.
Example- BBC is a very good example which is in UK.
 Managed growth ventures
The organization works in the market for having a long functioning in the market but not
have any plans of expanding themselves. The aim of the business is to have sustainability and
higher operations in market so that the business will be able to operate effectively.
Purpose- Right frameworks have to be used by the business in order to be able to gain local
competitive advantage.
Example- For managing their growth in market of UK there is Connect catering company.
 Survival ventures
To have long survival in the market and stable financial responsibilities which is going to
be good for higher operations. To be able to survive there must be innovation and use of good
strategy to be able to gain competitive advantage in the market.
Purpose- To survive in the market for a long run.
Example- Small retailers are in market for survival like the Barber shops.

 Aggressive growth ventures
There is going to be a use of high innovation strategy which is very good for attracting
new customers in the organization. To get competitive advantage there has to be a large
investment which would be required in technological aspect for the company to be able to
increase their productivity to match the expectations and demands of customers.
Purpose- Purpose of this venture is to get innovation and be able to expand themselves in the
market.
Example- Deliveroo the best example for this type of venture in the market of UK.
Typology of entrepreneurship
 Survival ventures
Survival ventures focus on the longer run and have higher productivity in the market so
that the business will be able to grow effectively. New ideas and innovation is going to take
place in firm. This typology is related to the normal entrepreneur since the ventures are present
in the market to achieve their goals be it for social welfare or to gain profits but they all do
eventually.
 Lifestyle ventures
The organization is going to focus upon the income level which the organization is
putting in the business. There has to be good managed lifestyle which the business must be
having for the growth in the market (Darren, 2019). Entrepreneur wants to have a good lifestyle
for themselves and make the products better so that they can make the customers have more
variety in the market and be selective while taking their products and services.
 Managed growth ventures
The company does not want to expand themselves in the market but want to make a place
for themselves in market so that there is going to be competitive advantage which is going to be
present. To gain the objectives it is important for the ventures to manage their growth in the
market as well because there are existing products and services which are present therefore there
have to be right measures and methods which have to be used.
 Aggressive growth ventures
Innovation strategy will be used the most in this venture so that there is going to be
higher performance which is going to be present. Unique features and products in market always

get in effective working. Owner manager know the existing market therefore they have to have
good aggressive growth venture in order to be able to gain a competitive market for themselves.
 Social entrepreneurs
For having higher operations and functioning the society is being focused upon. In
frameworks there are frameworks which are applied being cultural, environmental and social
factors. The businesses have to think for the growth of the society as well from the businesses
which are coming up so that there is going to be effective functioning.
Similarities and differences between entrepreneurial ventures
 Owner-manager
To gain profitability there has to be good plans of expanding the business internationally
which is going to be very good for the overall growth. Aggressive growth ventures are also
providing rewards and benefits to the employees so that there is going to be effective working.
For the economic factor to be developed there is more innovation and creativity which is present
in these ventures.
 Intrapreneur
There are rewards which are being given to the employees so that there is going to be
higher performance which is going to be present (Belitski, Caiazza and Lehmann, 2019). The
company wants to gain a large amount of profitability and is not working for the benefit of the
society. For the demands and expectations of the customers to be met there is good
communication which is present in this venture so that the targets can be achieved. Problem
solving and decision making is the strength of these ventures in the market so that there is going
to be higher performance in market. These businesses do not want profitability but are in the
market to provide the society with the best of products and services.
 Serial entrepreneur
To be able to develop and work effectively in local market these business focus on the
strategies and planning they have for themselves in the market. Good sense of planning and
performance has to be present so that the company will be able to operate effectively. The
employees of this venture are also paid according to the work and efforts they put in the
company.
 Entrepreneur

These ventures find ways to be able to get a stable economic factor in the organization in
order to be able to survive. The convincing skills for selling the products to the customers is high
which is why the company is having higher sales. Rewards to the employees are given weekly so
that the motivation level of them is going to be present (Alsafadi and et.al., 2020).
The Impact of Small Businesses on the Economy
Micro businesses
Micro businesses are those businesses which have one owner and 1 to 5 employees
working in the organization. They are small in size, simple in functioning and flexible in nature.
They focus on one product and try to maximize their profits.
Small businesses
Small businesses are privately owned by partnership, sole proprietorship or corporations.
The government of the organization are very much dependent on this factor and there are not
more than 50 employees which work in this business type.
Importance of micro and small businesses in UK
These businesses contribute to the country's 47% of economic factor and improves the
GDP as well which is impacting the economic factor in UK. There is a support which is present
of the government since a large number of population of UK are being employed in these types
of organizations. Government of UK has also reduced the interest rate for the small and micro
businesses to start up in the country so that the market will be able to develop in the country.
There is a new policy which the government of country is working upon which is having free
start up for these kind of businesses in the market so that the unemployment rate can improve
which is going to be very effective. The population of the country have to be monitored and it
was evident in 2016 that around 99% of the people in UK were employed because of these
enterprises present in UK (Porfírio, Felício and Carrilho, 2020). After this survey the government
took keen interest and supported ventures which were wanting to start in the country which made
the lifestyle of the population increase.

Figure 1: SME's in UK
(Source: Essential Facts You Should Know about SMEs in the UK, 2019)
According to the data, the contribution of small businesses in the market is about 48% of
employment which is the highest, 33% turnover of small businesses and 99.3% businesses. As of
2018 there was about £2.0 Trillion contribution which the businesses have made in the country
which is a great number observed by the government. The medium size SME there was around
12% of employment, 14% turnover and 0.6% businesses. And as respect of large businesses
there was around 40% of employment, 53% of turnover and 0.1% of businesses which was
present in UK. These statics shows that there was a great influence on the businesses which were
present in the market.
Start-up
Start-up is a task or a project which has been started by an entrepreneur to be able to
formalize an ascend-able economic model, seek and develop in market. There are going to be
new ideas and creativity which comes in the market and also there are going to be a lot of
problems which are involved in these businesses. There are new ideas and innovation which
would be coming in market, new job opportunities for the population, there is going to be
competitive dynamic as well which is going to be brought around in business environment
(Egerová, Eger and Mičík, 2017).
Start-up or small businesses in the market have maximum 500 employees or less. There
are a lot of small businesses which are present in the market which creates more job
opportunities even if there are just 20 employees in the company. It is recorded that in 2018 there

were 30 million small businesses in the country which recruited around 58.9 million. These small
businesses initially deal and sell their products to neighbours and friends which is a good
economic benefit. Small businesses contribution in UK on the socio-economic growth are as
follows:
 Provide Employment Opportunities
Many employment opportunities are being provided which large businesses are not being
able to provide to the people. Focus would be on the people who are investing on new products
and implement innovative ideas on the existing policies. The emphasis of these are not on the
experience of the people but the creativity and innovation they have for the market. The large
businesses in the market also get affected because the they are dependent on the small businesses
for a lot of tasks to be completed (Yadav and Unni, 2016).
 Supports Local Government with Taxes
There are a lot of taxes which the SME's are paying to the government of the country for
the properties which is good for loyalty of the customers. The amount which is being paid by the
SME's are being invested for the welfare of the society which is schools, fire department, police
department, etc. There is an improvement in the economy by enhancing the property value by
paying more property taxes to government of UK.
PART B
Key Aspects of an Entrepreneurial Mindset
An entrepreneur and business manager have a lot of difference in the roles which they
have in a business which is that the ideas and visionary is set by the entrepreneur of a business
where as the business manager has to management the employees and provide them with salary
from time to time (Torre, 2015).
Characteristic traits of successful entrepreneurs
There is a certain kind of trait which is very essential in an entrepreneur to be able to
function and operate effectively. The further report is going to discuss the characteristics of an
entrepreneur in detail.
 Motivation

Entrepreneurs are always self motivated because they have a target to achieve for the
product or idea they have for being in the business. Entrepreneurs have to work very hard to be
able to function in the market which can make then successful (Rojas, 2016).
 Creativity
Entrepreneurs already have large businesses which are present in the market which is
going to make the company get affected (Ruiz, Soriano and Coduras, 2016). Creativity and new
ideas is going to make the business be able to operate effectively in the market so that there
would be higher performance in the market.
 Vision
There is a set vision which is present in an entrepreneur which they have to achieve in the
market which is a very good trait present in an entrepreneur. This is going to get in a higher
sense of direction in small business or start-up as well.
Skills of successful entrepreneurs
The skills which have to be present in an entrepreneur are going to be as follows.
 Communication
There is going to be a workforce under entrepreneur which has to be guided so that the
targets of the organization can be achieved which is going to be very good for the overall
functioning. Communication is going to keep the working environment for the workforce and
entrepreneur healthy so that there are going to be higher outcomes.
 Time management
There are a lot of tasks which are in the hands of an entrepreneur and they have to be well
maintained so that the performance of the organization can be improved. Tasks have to be
completed on time and for that there must be good functioning and understanding which is going
to make the performance of the organization increase (Canestrino and et.al., 2020).
 Efficiency
Entrepreneur will have to make sure that they are providing the right direction to the
employees so that the efficiency of the company can be high. The results also have to be worked
upon which is going to make the performance improve and entrepreneur will also have to be
involved in the tasks so that they can motivate the workers.
Negative trait of entrepreneur

Entrepreneurs are normally have a very bad balance with their personal and professional
life which is not good for the family and may impact the functioning of the organization as well.
There has to be no limitations which have to be present in the organization in order to be able to
achieve the objectives.
Background and Experience that Hinders and Fosters Entrepreneurship
Philip Green had to quit his school at the age of 15 because he had to support his family
in having a better economic factor which is why he started working as an importer of shoes. He
has a hard working personality which is good for international trade which helped him in the
future projects which he started. The good factor was that he did not depend on any one product
or one business which is why he started working in Jeans importing retailer in London. It is not
an easy factor to jump from one business to another but Green did that so that he would be able
to expand himself in different fields and he started getting in bulk of clothes and products for his
organization. It is due to this flexibility he learned a lot and also took a lot of risks to be able to
operate effectively in the market (Herdjiono and et.al., 2017). Due to his experience and
flexibility he had for himself and business he invested in, made him the CEO of Arcadia Group
which is having a net worth of $5 billion. He is having traits of working hard and patience to be
able to take risks in the market which is a great factor for the company as well as him to develop
in the market further. Though he did not belong from a very well to do family but he managed to
be able to make a place for himself in the market which is a great factor.
Richard Branson is having personality traits of eccentric and exuberant and has a lot of
extravagant wealth. He is very dedicated to his work which is why he managed to become the
CEO of Virgin Groups and is having a net worth of $4.6 billion. He has also donated millions of
money in charity and that shows generosity and kindness which is a very good quality which he
having in the market. His mother was a flight attendant and father was working as a barrister.
There were a lot of legal advices which he received from this factor and built his own company
after that (Baručić and Umihanić, 2016). He was suffering from dyslexia but he over came that
because he had the traits of becoming a leader in the market. Richard has faced a lot of losses in
the market but has always managed to re-build his company and be able to operate effectively in
the market again.

CONCLUSION
From the above report it can be concluded that becoming an entrepreneur is not an easy
work for any person and there are a lot of traits and characteristics which would be required in
order to be able to operate effectively in the market. There are a lot of risks and hard work which
is going to be required in this working but that will have to be implemented so that there is going
to be higher performance. It is important to understand the typology and venture in which the
business is coming into so that there are going to be decisions taken accordingly and the business
will be able to find a place for themselves easily. There have to be good understanding only then
the business will be able to operate effectively and efficiently in the market so that the business
will find it easier to be able to operate and have higher performance in the market.

REFERENCES
Books and Journals
Alsafadi, Y and et.al., 2020. The mediating impact of entrepreneurs among administrative
entrepreneurship, imitative entrepreneurship and acquisitive entrepreneurship on
creativity. Management Science Letters, 10(15). pp.3571-3576.
Baručić, A. and Umihanić, B., 2016. Entrepreneurship education as a factor of entrepreneurial
opportunity recognition for starting a new business. Management: journal of
contemporary management issues. 21(2). pp.27-44.
Belitski, M., Caiazza, R. and Lehmann, E.E., 2019. Knowledge frontiers and boundaries in
entrepreneurship research. Small Business Economics. pp.1-11.
Canestrino, R and et.al., 2020. Understanding social entrepreneurship: A cultural perspective in
business research. Journal of Business Research. 110. pp.132-143.
Darren, L.R., 2019. Entrepreneurship and small business management.
Egerová, D., Eger, L. and Mičík, M., 2017. Does entrepreneurship education matter? Business
students’ perspectives. Tertiary Education and Management. 23(4). pp.319-333.
Herdjiono, I and et.al., 2017. The factors affecting entrepreneurship intention. International
Journal of Entrepreneurial Knowledge. 5(2). pp.5-15.
Kurilova, A and et.al., 2019. The impact of strategic outsourcing on the interaction market in
entrepreneurship education. Journal of Entrepreneurship Education. 22(4). pp.1-11.
Porfírio, J.A., Felício, J.A. and Carrilho, T., 2020. Family business succession: Analysis of the
drivers of success based on entrepreneurship theory. Journal of Business Research. 115.
pp.250-257.
Ruiz, J., Soriano, D.R. and Coduras, A., 2016. Challenges in measuring readiness for
entrepreneurship. Management Decision.
Yadav, V. and Unni, J., 2016. Women entrepreneurship: research review and future
directions. Journal of Global Entrepreneurship Research. 6(1). p.12.
Online
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available Through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
Forst, A., 2019. [Online]. Available through: <https://blog.hubspot.com/sales/intrapreneurship-
vs-entrepreneurship>.
Rojas, N., 2016. 5 characteristics of an entrepreneur. [Online]. Available through:
<https://www.vistage.com/research-center/business-leadership/20161027-5-
characteristics-of-an-entrepreneur/>.
Torre, J.J.D.L., 2015. Who is an entrepreneur? [Online]. Available through:
<https://www.entrepreneur.com/article/245628>.
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