Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examination of different types of entrepreneurial ventures and how they are related to the
typology of entrepreneurship.......................................................................................................3
P2 Differences and similarities between different types of business ventures............................5
P3 Illustration of how micro and small business impact the economy........................................6
P4 Importance of small and micro business for the growth of social economy..........................7
TASK 2............................................................................................................................................8
P5 Characteristic traits and skills of successful entrepreneurs that differentiates them from
other business managers..............................................................................................................8
P6 Aspects of the entrepreneurial personality which reflect entrepreneurial motivation and
mindset.........................................................................................................................................9
P7 Examination using relevant examples as to how background and experience can hinder or
foster entrepreneurship..............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship refers to the process in which a business venture is created with the
objective of earning revenue and higher profits. An entrepreneur constantly keeps focusing on
business opportunities with innovation to derive a higher amount of profits. He keeps analysis
the macro-business environment in search of new opportunities. In this report, different kind of
entrepreneur ventures are discussed along with their linkage to the typology, similarities and
differences between various ventures are also explored (Bridge and O'Neill, 2012). Further, the
impact of small and medium business on the economy and the importance in terms of growth of
social economy is also being discussed. Different traits and characteristics of exhibited by
entrepreneurs which make them different from others are also being discussed. The report
provides references to two entrepreneurs – Elon Musk & Steve Jobs. Elon Musk is the co-
founder and CEO of Tesla & founder of SpaceX. Steve Jobs was the chairman, founder & CEO
of Apple Computers. At last, the report talks about the various aspects of personality which
reflects their motivation and mindset and the way background helps in fostering entrepreneurial
abilities in entrepreneurs.
TASK 1
P1 Examination of different types of entrepreneurial ventures and how they are related to the
typology of entrepreneurship.
A person who sets up a business unit or engages himself in a business activity related to
production of goods of rendering a service with an objective of earning high profits is termed as
an entrepreneur (Burns, 2016). The process of managing, launching & designing a business
venture with the aim of attaining high growth rates and sustainability in the future is termed as an
entrepreneurship activity. Further, an enterprise is defined as a business unit which helps in
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execution of business operations by integrating and application of many resources such as
machinery, capital, tools, materials etcetera.
Typology of a business venture helps in understanding the relation between a particular
business venture and the object behind its establishment. There are 4 primary types of
entrepreneur ventures namely – male, female, social and scalable. All the types of
entrepreneurial ventures are being discusses in a detailed manner below:
Survival Ventures:
As the name suggests, survival ventures are established with the objective of meeting the
basic needs for survival of entrepreneur and his family. Formal registration of the venture is up
to the discretion of the owner. These ventures operate with a very low amount of investment and
resources. There is no objective of reinvesting the profits earned out of this business into the
same venture (Bruton, Ireland, and Ketchen Jr, 2012). These business ventures are often driven
by a basic survival need and not any objective of earning high profits. The owner of such
businesses focus on sustaining in the market at competitive prices to fulfil basic needs.
Typology- These ventures come under the social typology because generally the basic
needs of the owner are met by engaging himself in a business activity which caters to the basic
needs of the society.
Lifestyle Ventures:
These ventures aim at providing a stable source of income to its owner. It is based on a
systematic approach of management for cutting the costs. Here, the entrepreneur reinvests the
profit earned out of the business into the same venture to some extent to remain competitive.
There is no object of a meaningful growth and expansion. The business usually operates out a
single premises with limited resource capacity which doesn’t allow the business to take
advantage of economies of scale.
Typology- These ventures can be related with the social typology of entrepreneurial
ventures because generally needs of the society are being fulfilled by carrying out such
operations. There is a potential to increase the scale of the business operations by reinvesting the
amount of profits earned.
Managed-growth Ventures:
These are the types of ventures which seek vast growth and expansion of the venture over
the period of time. New product launches and market diversification is a regular feature
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