Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It discusses different types of entrepreneurial ventures, typology of entrepreneurship, interpretation of statistics showing the impact of micro and small businesses on the economy, and the importance of small businesses in the growth of the social economy.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK 1..........................................................................................................................................3
Different types of entrepreneurial ventures and typology of entrepreneurship......................3
Similarities and differences between entrepreneurial ventures..............................................5
TASK 2..........................................................................................................................................7
Interpretation of statistics for showing impact of micro and small business on the economy7
Importance of small businesses and business starts-ups in growth of social economy..........9
TASK 3........................................................................................................................................11
Characteristic, traits and skills of successful entrepreneurs.................................................11
Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation........12
TASK 4........................................................................................................................................13
Background and experience can hinder or foster entrepreneurship.....................................13
CONCLUSION............................................................................................................................15
REFERENCES ...........................................................................................................................16

INTRODUCTION
Entrepreneurs are the person that are possessed with capability of inventing and
implementing new ideas which are lying within needs and demands of their surrounded people
and to earn money from these ideas. Business is having their backbone by the name of
entrepreneurs and by help of them high business efficiency can be obtained and immense
opportunities of job can be rendered to population as well. These opportunities are helping
society in covering up their standard of living and to fulfil their own needs in more significant
manner. Small or medium ventures are initiated by entrepreneurs and through which economic
development can be established within country as by providing quality services of product and
rendering employment to huge populations. This report is sum of all the entrepreneurial
ventures and their similarities and dissimilarities from one another along with interpreted data
within macro environment. Last part of this report includes personal reflection within
entrepreneurial motivation by which factors which are hindering or fostering entrepreneurship
can be obtained (Dana, 2018) .
TASK 1
Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurs are the individuals those takes overall responsibility of initiating new
venture and renders products or services to customer in lieu of sum of money. Likewise
entrepreneurial ventures are the arrangement by which earning money is the sole objectives so
as to provide level best comfort to the surrounded population. The major purpose of forming
these ventures is to meet up demands of people and earn profits from them. Entrepreneurship is
defined as the aspect in which new values and prominent changes are exhibited in which social
benefits are provided. This is stated as the capability to arrange and develop of the businesses
by inculcating various complexities and to earn high profit along with benefiting society
(Parker, 2018). There are various types of concepts within entrepreneurship such as serial
entrepreneur, intraprenuers and owner manager (Morris and et.al., 2018) . Serial entrepreneurs
are the persons who are continuously come up with new and innovative ideas in order to initiate
a venture. Similarly intraprenuers are the persons who are involved in acting as entrepreneurs
within organisation in order to tackle people and working. On the other hand owner managers

are defined as the person who is keeping descriptions of regular updates and held accountable
for the same. Various types of ventures are initiated within entrepreneurial ventures which are
explained in detail as under:
Entrepreneurial activity
Entrepreneurial ventures are categorised as the procedure which is involved in
generating business activities within various economic activities and to provide innovative
ideas thereon (Sheldon, Pollock and Daniele, 2017). When these ideas get converted to reality
then these product and services are provided to customer in order to meet their demands and
needs. By these ideas various employment opportunities are obtained which lead to economic
growth of the nation in which business is operated effectively.
Different type of ventures
Small business: Within these ventures high capital is being invested and operations are
handled by employees in order to earn profits in lieu of sum of money. The scopes of these
ventures are quite small as the products are offered within niche market. The net worth of these
ventures are less than or equal to €2 million and overall number of employees are less than 50.
These ventures include Clarasys, electotech limited etc. The major problem faced by small
business is procurement of funds due to which their functions are not properly managed by the
companies.
Large company: These ventures are having huge business operations and are big in size
and number of employees. These ventures are operating their business at worldwide level and
which business gets their smooth operations. These business operations are helpful in getting
sustainability and high market share. Examples of these ventures are Tesco, Aston martin and
many more. (Elo, 2016). The major problem in large companies are managing their financial
records as these companies are pertained with heavy transactions and data exploding is the
major challenge faced by them.
Social enterprises: These ventures are made in order to provide development to the
society and its welfare. Innovative ideas are rendered within this by which living standard of
local people can be enhanced. These ventures are not operating for earning money rather they

are operating in order to contribute their share in social development. Various trusts and society
development associations are included in this. These type of entrepreneurship is having major
challenge of raising funds in order to upkeep societal welfare (Sarango-Lalangui, Santos, and
Hormiga, 2018).
Typologies of entrepreneurship
Entrepreneurship ventures are associated with various typologies in which business is
related with different business functions and operations. Major typologies are explained as
under:
Lifestyle Enterprise: These types of enterprises are developed so as to provide
enhancement of living standard to the society and local people which are surrounded. Job
opportunities are given within local people as well. This typology is associated with large scale
bushiness as these are providing high living standard to the society.
Growth firms: These ventures are initiated in order to earn high profits. In these
ventures ideas are being obtained and by which needs and demands of the customer are
satisfied in feasible manner. These typology is associated with small businesses as they are
operating businesses in order to satisfy needs and demands of society.
The venture typologies are incorporated in order to provide ultimate level of lifestyle to
the population and to enhance their standards as well. These ventures are bifurcated on the basis
of size, scope and their abilities. These are managed so that profit and sales can be maximised.
Various entrepreneurship are there such as small business, large business, social venture, start-
ups and so forth. These are classified on the basis of ventures and their success which can be
received within stipulated time frame.
Similarities and differences between entrepreneurial ventures
The similarities and difference between the entrepreneurial ventures are as follows:
Differences
Basis: Scale

Small business: These are categorised as those businesses which operates their business
at small level along with investment of small capital as well. (Kellermanns and et.al., 2016)
Large company: These businesses do require large amount of capital and people in
order to provide smooth business operations to them. These businesses are having huge
customer base along with very effective supply chain management and customer support.
Social entrepreneurship: These kinds of ventures are working within local periphery
and these are concerned in fulfilling needs and demands of local customers.
Basis: Purpose
Small business: The major objectives of these ventures are to generate easiness in
living standard of population and to provide comfortable lifestyle to them as well.
Large company: The sole purpose of this venture is to earn high profits and to provide
latest trendy services or products to their customer within their offerings.
Social entrepreneurship: These ventures are working to satisfy needs and demands of
local population and enhance their living standard thereon.
Basis: Characteristics
Small business: Government is having very less intervention in these ventures so they
require very less capital for initiation
Large company: These ventures do require huge capital investment and government is
having high intervention because of large scale operations.
Social entrepreneurship: These ventures are highly supported by government and due
to which full intervention is obtained by government as well.(Das, Hui and Sha, 2018)
Similarities
Basis: Meeting the needs
Small business: These are initiated in order to provide assistance to people and
providing them employment as well.
Large business: These ventures are initiated in order to satisfy needs and demands of
people at large.
Social enterprise: These are initiated so as to meet demands and aims of local people
and meeting their level of satisfaction as well.
Basis: Formed Society uplifting

Small business: Local people are obtained with huge opportunity of enhancing their
desires and lifestyle as well.
Large business: With the help of innovative ideas huge people are involved in
employment with these ventures.
Social enterprise: These ventures are providing those services and products by which
living standard of local people can be improvised. (Toft-Kehler, 2018)
TASK 2
Interpretation of statistics for showing impact of micro and small business on the economy
The business organisation is having prominent role within economy and societal
development. SME is prociding 3/5th of overall employemnet on UK along with overall
employmenty of 16.6 million along with revenue measuring to £2.2 trillion. Micro and small
businesses are dealing with high population area and provide huge contribution to the economy
as in enhanced level of infrastructure and money measurements. More than 14% of SME in UK
are engaged in retail tarde. These types of business organisations are providing positive impact
within economy and overall society. The major types of ventures are explained as under:
Small: These businesses are employed with less than 50 employees and their net worth
is of £5millions. These businesses are operated at small scale and providing low employment
level by which society is being benefitted. These business ventures are providing
acknowledgement within small geographical area. (Storey, 2016). In the beginning of 2019 in
UK there were 5.82 small bsuiness and this covers 99.9% of the overall business population.
For example Eggfree bakery is considered as small business and working as a propertiership
concern.
Medium: These ventures are having more than 50 employees in their business by and
the maximum number of employee can be 250. The overall revenue of these ventures is more
than £5m but less than £22m. Being medium scale business these ventures are meeting
customer needs in prominent manner and they are having high implications over rendering
employment to appropriate candidate. For example Rowllison is considered as medium
enterprises.

Large: These business ventures are employed with more than 250 employees in their
business along with overall revenue of £22m or more. These are operating their business at
global level and employment rate is also high as comparison to other venture due to huge level
business operation. For example M&S is a large organisation executing their business as private
concern. In UK within the year of 2019 5.9 million businesses were taken as private
organisations.
Impact of SME on economy
Local impact: Micro and macro businesses are rendering direct impact within growth
and employment of local economy. Their product and services are fully dedicated to meeting
needs and demands of customer needs at prominent manner within local customer. These
ventures are involved in recognising needs and demands of local people and by this they are
altering their offerings so as to get ultimate satisfaction of their local population. Within this
context these ventures are helping local people in enhancing their living standards and render
them opportunities to provide jobs and to earn high profits thereon. These ventures use their
assets in gaining economic growth and by this their turnover are increasing in desired manner.
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Regional impact: Small and medium businesses are providing positive implications to
regional economy as well as they are involved in providing their product and services to
regional people and by this path of enhancement of standard of living is being created. These
are providing high opportunities of jobs options to regional people and eradicating
unemployment from selected areas. By these skills of candidates are improvised due to which
regional income has been increased and positive impact is drawn within increment of regional
growth. As these are creating immense opportunities for regional growth so they have
appropriate turnover in order to experience sustainability as well. (Julien, 2018)
National impact: Micro and medium ventures are having direct and positive impact
over national economy and employment as somewhere all the businesses are contributing to the
nation’s economy due to which high growth is seen in national economy. These businesses are
focused on implementing innovations and emerging ideas in venture due to that assets and
overall turnover is being increased in total.

In UK micro businesses are acquiring 96%, whereas micro employment are 33%,
similarly small businesses are 4%, small employment are 15% of overall businesses. On the
other hand UK is having large employment around 40% which covers large part of the
economy.
Importance of small businesses and business starts-ups in growth of social economy
High growth can be achieved by country when startups and small scale businesses are
providing ample contribution in order to value GDP and economy in particular way within UK.
In the context of UK high growth is seen within small businesses and other startups as country
is at its development stage and due to this immense opportunity are being adopted by these
businesses. Social economy is defined as sum of high diversity of enterprises and organisations
in which various associations, foundations and social enterprises are framed. On the other hand
social economy is defined as mixture of various sized enterprises in which SME's to large
enterprises are included and these are performing business activities in order to enhance
economic sectors (Burns, 2016) . Small businesses are playing vital role in development of
social economy as these are providing employment to local people due to which each and every
market can be developed and with the help of these people new and innovative ideas can be
entertained by the business in order to enhance level of local and global economy. On the other
hand small businesses contributes in paying taxes to local government which proven as

backbone of the whole country's economy. Due to their development stage UK is providing
high support to their in house companies and within that various relaxation is being given to
them. Importance of these ventures in economy has been explained as under:
Job creation: Small business and star ups are providing immense job opportunities for
personnel and due to this large pool of people are getting involved in this and engaged in jobs.
This is helping the nation in increasing their national income and living standards as well. On
the other hand start-ups are providing high quality services and products to customer due to that
more people are prone to be added in this and nation is enjoying high benefits as well in the
terms of social and financial upbringing. (Minto-Co, 2019)
Innovation: Star ups and small businesses are the business in which innovations are
involved as new innovations are inculcated in this. Innovations are the new thing and inventions
which are rendered by new businesses in terms of new technology or new idea, so with the help
of these businesses high innovations can be introduced within country which is highly
beneficial for economy upbringing and growth as well (Grant, 2017).
Economic growth: Startups and small businesses are providing opportunities to earn
high income and growth opportunities to the country. As these are associated with providing
high quality services and products so due to this high growth in economy can be seen. These
ventures are motivating buying behaviour of population by which economic growth can be
enhanced by the country in a very considerable manner.
Leading the way on diversity: Small businesses are emphasised on workplace diversity
as competences and skills are appreciated in these type of venture which enable them to attain
workplace diversity. This is helpful in maintaining economic growth so as to provide high end
benefits to the nation (Komalasari, 2016).
Local improvement: Small business are helping local economy in enhancing their
standard as small businesses are providing employment to local people which is overall
assisting them in improving their standards.
Meeting social purpose: The SME's are working in order to improve living standard of
society at a large on the other side they are using sustainable practices in business due to which

carbon emission is being controlled. These are leading the nation to attain their goals in
effective manner .
Form the above detailed discussions this can be deduced that small businesses and
startups are providing ample contribution to the nation in terms of growth and development as
well. By these businesses living standard of population can be improvised due to which overall
income capacity can be improvised. (Vodă and Florea, 2019)
TASK 3
Characteristic, traits and skills of successful entrepreneurs
Various entrepreneur are existed within UK and this are laced with various skills set and
characteristics by which they are identifiable among others and varied group of people. These
are the abilities by which entrepreneurs are distinct form other and easily carry out their
business operation in a very critical and profit generating way. Some of the traits and
characteristics are explained as under in the context of entrepreneur:
Characteristic Passion: This is one of the most prominent characteristics as this encourages them to
perform their operation way beyond to their capabilities and calibre. This characteristic
is the reason that they are fully dedicated to their aim and working to improvise their
operational efficiency in a very short span of time. Both the entrepreneur Elizabeth
Gooch and Tom Mercer were fully dedicated to their work and company and due to
their high passion they have made their company highly successful in market. (Olivari,
2016)
 Self-belief and hard work: This characteristic is encouraging entrepreneur in keeping
self-belief and continues to work hard so as to provide high end business benefits. In the
context of Elizabeth Gooch and Tom Mercer they both believed in their idea and grab
the opportunity of their business idea and operated that with high hard work and
resultantly the results were on positive side.
Skills

 Innovative thinking: This skill is possessed by entrepreneur as by this innovative ideas
are coming up in their mind due to which problems of customer can be solved by their
offerings. In the context of Elizabeth Gooch and Tom Mercer they introduced
innovative ideas in front of customer so as to support their needs by their innovative
product or service ideas. This is helping the business in solving any business problem
within minimum time and to avoid any prominent harm which can be caused by that
problem. (Kozubíkov and et. al., 2017) Leadership: Every entrepreneur is having ability to lead their team in a very prominent
way and this makes them highly effective in meeting up with new challenges and
obtaining opportunities from them. Elizabeth Gooch and Tom Mercer was having
effective leadership skills and due to which they leaded their subordinates in a very
significant manner and used their skills within business operation in order to take out
optimum results and to achieve desired objectives as well.
Traits
 Confident: The major personality trait for entrepreneur is that they are highly confident
on the deed they do. So this is helping them in taking out effective decision and using
them in business growth and success as well. In the background of Elizabeth Gooch and
Tom Mercer they were highly confident for their business idea and their operations over
that and this helped them to cater their customer in effective manner.
 Disciplined: An entrepreneur is highly disciplined as they are taking care of time and
their deadlines and for this they are making their boundaries and limits. This is helping
them to subsistence balanced and equitable life in which all the factors are equally
added. In the context of Elizabeth Gooch and Tom Mercer they both were focused on
their primary goal setting in which they were focused in eliminating major distraction
which is a barrier in their disciplined life.
Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
Various characteristic, traits, skills are held by entrepreneurs and these are helpful in
differentiating them from other people in a very prominent manner. These are those factors
which involved in changing mind set of entrepreneur and making them highly efficient to deal

with outer world. The OCEAN model is inculcated with 5 aspects of entrepreneurship in which
high benefit in managing the business is enumerated and the model is explained as under:
Openness: This factor is related with high level of adventure, ideas and their emotions.
This factor is the reflection of creative mind and curios nature by which most appropriate
decisions are taken by entrepreneurs in order to grab opportunities for growth and development
as well. This factor is having positive implication over business management and by this high
efficacy in the business can be inculcated. (Stephan and Drencheva, 2017)
Conscientiousness: This is associated with agility and dependability as well. This is
describing that entrepreneurs can focus within various factors in order to get huge productivity
so as to achieve overall business objectives.
Extroversion: This is defined as energy, empathy of entrepreneurs in order to motivate
people that are living in the society so as to get better options of employment and living
standards as well. This is the ability by which high end relations can be established between
entrepreneur and workers so as to tackle their retention in a very effective manner.
Agreeableness: This is the stage under which various skills such as cooperation, trust
and other habits are included. This is making entrepreneur to establish effective relations with
all their clients and by which success can be inculcate by the venture.
Neuroticism: This is associated with fear anxiety, interruption, secureness, suspicion
and many more. These reactions are sum of that behavior which is seen by an entrepreneur
during negative times. These aspects are required to be neglected by entrepreneur in order to
boost up their morale and attain sustainability as well. By avoiding these behaviors workplace
ethics can be created and high efficacy can be attained. (Kerr, Kerr and Xu, 2017)
TASK 4
Background and experience can hinder or foster entrepreneurship
Entrepreneurs are the group of persons who establish and operate a business
organization providing any kind of product or services to the ultimate consumers. They have
ability to think and good decision-making qualities. Their Background and experiences can help
us in have more involvement and guidance in their personal life (Ahn, Minshall and Mortara,

2018). The Background and personal experiences of Elizabeth Gooch and Tom Mercer are
explained and elaborated below:
Elizabeth Gooch
Background: Elizabeth had initiated her professional life very early at the age of 18
with HSBC bank. After a year due to some situation, she decided and moved out to join a
consultancy service firm. After collecting some years of experience and some amount of
money, she decided to leave the job and start her own business and for that, she took financial
help of 1000 Euros from her friends and family. She started business of her own providing
consultation and training in operations management for different branches of business.
However, unfortunately she was not possessed with depth of information required to carry on
such business so she closed the business and started providing software services. During the
initiative she got in touch with Prudential Financial Services CEO Rodney Bakers-Bates and
was able to convince him as Chairman of her new enterprise and with that, she was succeeded
in securing the amount of investment and investors to float her company.
Experience: After the phase when she quit her job, her father and family repeatedly
disagreed with the decision and suggested her to continue with Job Rather than being an
entrepreneur with this less amount of profits. However, she stayed strong and met Rodney
Bakers who provided her with number to ideas and ways to be an entrepreneur and run software
development business. She took the required steps and due to her strong will power she was
able to attract large number and of investors and became a successful and inspirational
entrepreneur.
Tom Mercer
Background: Tom Mercer completed his graduation from well-known Cambridge
University. He has a good experience as management consultant from his job in Brian and Co.
established in London. He was that creative, innovative and good thinker that while his brain
was processing new ideas he got with an idea set up his own venture. It was noticed by him that
options and varieties for Lunch and Supper are high in market as compared to Breakfast.
Therefore, he decided to capture this opportunity, established his own Venture providing
healthy drinks and eatables options to the target consumers, and succeed.

Experience: Tom was having his work place in middle of the city and it was from there
he noticed the idea of this breakfast diet and struggle of people there. Therefore, keeping that in
mind he decided to initiate the healthy breakfast place for consumers. In the initial stage of his
idea implementation he used to sell variety of healthy fruits at city, railway stations etc. in an
innovative way that is in bottle. Moreover, from there he got understanding of customer
requirements and expanded his enterprise (Byrne and et. al., 2016) .
Greta Thunberg
Background: Greta Tintin Eleonora Ernman Thunberg was born in the year of 2003,
she is known as Swedish environmental activist as she has lead so many campaigns which are
based on environment and humanity aspect. She worked for reducing adverse impact on
ecosystem due to changes in climate. She worked on various campaign so as to eliminate
carbon footprints from environment and spread high awareness regarding importance and
significance of environment.
Experience: She has gained prominence due to various speeches at international levels
on the other hand in The Guardian newspaper her article was published by the name of GRETA
EFFECT. She took part in various strikes in her school days and involved many politicians to
put their efforts on environmental safety as well.
CONCLUSION
From the above report it can be concluded that entrepreneurs are the person those are
having effective qualities in which their traits and other characteristics are giving them edge to
be identified in pool of people in significant manner. Small businesses are providing immense
opportunities to the country to enhance their growth and economic conditions as well. These
ventures are providing high end benefits to the social welfare and overall national development.
These businesses are providing various ways in which economy of the country is boosted up.
Furthermore there are various ventures which are existed in the economy and they are
categorised on the basis of various situations.

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