Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management

Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse various types of entrepreneurial ventures and state how they associate to the
typology of entrepreneurship......................................................................................................1
P2 Explore the similarities and differences between entrepreneurial ventures...........................3
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both the public and corporate sector...........................................................5
D1 Critically examine the scope, development and growth of entrepreneurial ventures...........6
TASK 2............................................................................................................................................7
P3 Explain and evaluate relevant data and statistics to illustrate how micro and small
businesses impact on the economy.............................................................................................7
P4 State the importance of small businesses and business start-ups to the growth of the social
economy......................................................................................................................................9
M2 Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics..........................................................................................10
D2 Critically evaluate how small businesses have an impact on different levels of the
economy (local, regional, national) and in an international context.........................................12
TASK 3..........................................................................................................................................12
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................12
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set..............................................................................................................................14
M3 Explore different lines of argument relating to entrepreneurial characteristics.................15
D3 Analyse the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples.........................................................................15
TASK 4..........................................................................................................................................15
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................15

M4 Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs.............................................16
D4 Critically analyse from background and experience influences entrepreneurs...................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Introduction
Entrepreneur is an individual who start a business and bear the risks and thus enjoy
profits by taking the risk and conducting business. The entrepreneurs are seen as innovator which
means they conduct business with unique idea or provide solutions in unique way. These
entrepreneur when conduct business in the market known as entrepreneurship. They play key
role in an economy by using their innovative ideas and skills in order form a start-up that can
make profit out of risk taking. In recent time the entrepreneurial opportunities are increased at
good level (Burns and Dewhurst, eds., 2016). Entrepreneurship is significant for many reasons,
from promoting to social changes into innovation, they often thought as a national asset that need
to nurtured and cultivated in an economy. With new product development or through service
offering entrepreneurs help in growth of the economy. Entrepreneurship can be described as the
heart of business. In the era of global competition where every large company were in their
initial stage started from only idea that live in the heart of the entrepreneur as a small start-up
spirit (Bindu, 2018). The more an economy become volatile and have the skill set, knowledge the
more they become innovative and with the spirit of doing something and try to wing their skill in
small business.
Main Body
TASK 1
P1. Analyse various types of entrepreneurial ventures and state how they associate to the
typology of entrepreneurship.
Since there are different types of entrepreneurs are there hence, different types of
entrepreneurship are also exist depending upon the type of business they are operating (Nakara,
Benmoussa and Jaouen, 2012). In following section the most common types of entrepreneurship
are discussed below:
Small Business Entrepreneurship. In small business like; a hairdresser, general store, travel
agent, consultant- agency, plumber, electrician, etc. These individuals run their own business and
either they employ their family members or employees from their local area. For these
businessman conduct business with a sole motive to earn profit would be enough to bear the cost
of running business and it is not necessary to make millions from business or take strong
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competition in the industry. Usually these small businessman fund their business by taking loans
either from banks, friends or family.
Scalable Start-up Entrepreneurship. This are the start-up entrepreneur who conduct business
as they know that their vision behind the starting the business can change the world. They try
catch the attention of investors who think differently and encourage people who are not rigid in
their thought also, think out of the box (Radović-Marković, and Tomaš, 2019). In scalable
business entrepreneurs hire the best and the brightest employees in their venture who could bring
innovation with them. These start-up need capital to give wing to their dream into successful
venture.
Large Company Entrepreneurship. These are the usually the large companies have well
defined life-cycle. These companies grow by offering new and innovation in their product or
service that circle around their main offering (Laudano, Marzi and Caputo, 2018). Any changes
in technology, customer preferences, new competition, etc., create force on these large
companies to create innovative product and sell it to the new segments of customers in the
market. In order to meet with the fast changes in technologies in the present organisations either
acquire innovation enterprises or they make effort to build the product internally.
Social Entrepreneurship. Entrepreneurship in this category are those entrepreneur who wants to
work out different social issues with their manufactured products or services. The primary
objective of the entrepreneur is to make the world a better place where all social issues of every
individual can be addressed. Usually this type of entrepreneurs do not work to make big profits
out of their business instead, they intended to run non-profits organization or company that will
be dedicated to work for social good.
Types of Entrepreneurs.
Female. Women or female entrepreneurs are defined as the enterprises that are owned, managed
and run by woman entrepreneur. Usually female entrepreneur are less risk player as they like to
use their skill in logical wise where return from business are sure (Sahut and Peris-Ortiz, 2014).
Female entrepreneurs take up in most cases; small-businesses entrepreneurship or scalable start-
up entrepreneurship. Following characteristics are mentioned below:
 Usually face difficulty while decision making
 They mostly focused on business like, making social contribution and quality
 Women are mostly rigid in terms of financial risk
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 More emphasized on good relation with all their stakeholders
 Mostly interested in small retail and service orientated business
Male. When business enterprises are owned, run and controlled by men, known as men
entrepreneurs. Usually, men are comparatively more influenced than female to start a business or
become an entrepreneur because of overconfidence.
 Decision Making are usually effortless
 Decisions of the business are mostly focused on economy and cost
 Men are more willing to take financial risk
 Management bodies are task oriented
 They mostly choose their business manufacturing and construction sectors
Survival. In this type of entrepreneurship is run with one of the main objective is to survive and
achieve the venture’s financial commitments. This type of businesses are conduct only in order
to survive, known as survival entrepreneurship where their ultimate goal is to stay in business.
Following are the characteristics are mentioned below:
 Laying off employees
 Employment freeze
 An anxiety of committing to future plans
 A mind-set of saving the present state of affairs
Lifestyle. It is an entrepreneur that motivated on the basis of quality of lifestyle instead of
growth (Bennett, 2014). The reason behind existence of this type of entrepreneurship
lifestyle is the limited growth focus. The entrepreneur have following characteristics:
 There is a lack of focus on marketing and product development.
 Investment in fixed assets is small.
 Management activities in lifestyle entrepreneurship may be characterized as illogical.
 The undertaking of a lifestyle entrepreneurship, may result in the underutilization of
resources.
P2 Explore the similarities and differences between entrepreneurial ventures.
Small-businesses Entrepreneurship Large company Entrepreneurship
Key differences  The only motive is to earn
surviving profits only.
 The major goal is to earn
huge profit to grow more in
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