Entrepreneurship and Small Business Management

This document provides an introduction to entrepreneurship and small business management. It discusses the different types of entrepreneurial ventures, their impact on the economy, and the characteristics, traits, and skills of successful entrepreneurs. The document also explores the relationship and differences between ventures and the significance of small businesses in enhancing the social economy. It is a valuable resource for anyone interested in entrepreneurship and small business management.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Kinds of entrepreneurial ventures and their typology............................................................3
P2 Relationship and difference between ventures......................................................................5
P3 Impact of micro and small businesses on economy...............................................................7
P4 Significance of small businesses in enhancing the social economy......................................8
TASK 2............................................................................................................................................8
P5 characteristics, traits and skills of successful entrepreneur...................................................8
P6 Aspects of Entrepreneurial personality..................................................................................9
P7 Background Information........................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship refers to the designing of a new idea and transform it into a venture by
the way of innovation. It is a small business which is willing to develop into an organization. It is
willingness to develop, organize and manage the firm which involves higher risk along with
great efforts to make profit. Many of the start-up declines because of lack of patience, lack of
capital, higher risk. The person who creates small ideas as business are called entrepreneur.
London boroughs is a 32 districts local authority which make up greater London, each of
which is governed by local council. It was stated on April 1,1963. They have a population of
150,000 to 300,000. London boroughs council provides major services like schools, hospitals,
libraries etc. This study includes types of entrepreneur ventures, its similarities and differences,
how micro and small business impact on the economy of the ventures, importance of small
business and start-up for the growth of social economy of London boroughs. Characteristic, traits
and skills of entrepreneur, aspects of entrepreneurial personality reflects on entrepreneurs
motivation and mindsets, how background and experience hinder or foster entrepreneurship.
TASK 1
P1 Kinds of entrepreneurial ventures and their typology
An entrepreneurial ventures is the the organization started by an entrepreneur which
guides its owner and provides advisory help for flourishing the business across world. Starting a
entrepreneurial venture remains tough proposition yet many entrepreneurs gains success while
looking for the competitive advantage(The four types of entrepreneurship,2016). There are
mainly four types of entrepreneurial ventures
Micro enterprise
A micro enterprise is the small corporation or a company wherein the number of
employees working are less than ten and which has been started with minimal capital. It is
generally a small business whose turnover and profit is on the early stage and has not generated
much revenues. The customer base of these enterprises are much lower than the small and large
companies. The major purpose of micro enterprises is enhancing the quality of their products in
developing and developed countries. For example a small grocery having a wide range of food
items selling in local market. The starting capital which the owner contributed would be utilized
for rent of the shop, inventory etc.

Small enterprises
Unlike micro enterprises, A small business or enterprise is the one which has slight more
number of employees and has a regular flow of fund and finance. These are generally the
startups who have not established themselves across the globe and and has not leveraged much
opportunities available to them. The main objective of setting a startup to generate awareness
among the customers for their products and expand themselves on the international platform
besides increasing the profitability ratio. For example Founders pledge is a small corporation in
UK run by the entrepreneur where they commit to contribute at least 2% from the personal assets
during the selling of business(Staniewski, 2016).
Medium enterprises
Medium enterprises are the firms which employs nearly 250 employees and are owned
by the management. Coming on the financial stability, It generates greater revenue and has high
profitability ratio than small and large enterprises. The purpose of establishing medium
enterprise is to foster their sustained growth at regional, domestic as well as international level.
Being a medium firm, It empowers to reduce the information gap and and integrate its strategies
in global chain. For example White line hotels having the employee strength of 212 is medium
travel enterprise which mainly deals in arranging travel journeys including hotels, flight tickets,
car rentals etc.
Large enterprises
Large organizations and enterprise are the one where the number of employees exceeds
1000 and has an annual revenue of more than $1 million. Large businesses are not only limited to
their core businesses but have their supply and demand chain in wide geographies and deals
domestically ans well as internationally. The main focus of these enterprises is on technology
through which they incorporate innovations and creativity in every product. For example Hays is
one of the well known recruitment agency with an employee base of 10,727, operating in more
than 30 countries globally(Welter and Gartner 2016).
Typology of Entrepreneurial Venture
Survival firms
Survival firms are mostly the small and medium enterprises which, despite of the
fluctuating market trends and the emerging success of competitors, have survived and flourished
in the huge crowd(Storey, 2016).

Lifestyle firms
Lifestyle firms are basically the ventures wherein the founder mainly emphasizes on
attaining a certain amount of income and creates ta foundation to experience the particular
lifestyle. These are mostly the small and micro firms which have finite scalability and growth
potential.
Managed growth firms
These are the firms which have grown and continue top grow at rapoid speed relative to
their peers and broader economy. These are mostly the large firms whose profitability ratio and
annual turnover exceeds than firm average within a period(Allen and Truman, 2016).
Aggressive growth firms
The mutual funds which look around for high capital gains through investment in growth
stocks comes under aggressive growth firms. These have high potential for growth just like the
large enterprises(Dunne and et.al., 2016)).
Public sector entrepreneurship
It mainly refers to the public policies and initiatives that are innovative enough to create
economic prosperity through reshaping the economic environment into a more favorable one to
reduce the uncertainties. These are mostly the micro enterprises which runs some programs and
campaigns(Goss, 2015).
Social Enterprise
Social enterprises are generally the organizations that are focused to work towards the
well being of the society and improvement in environmental aspects. Profit and non profit
organizations constitute social enterprises(Saleem, 2017).
P2 Relationship and difference between ventures
Similarity
The major similarity between different entrepreneurial ventures is in their objective
which is to widen the customer base as well as to achieve the competitive advantage. Small
businesses are drastically affected by the operations of large businesses and their development in
various sectors. For example the first similarity emerge from the vertical relationship of supply
chain which includes the supply and flow of raw materials. Large and medium organizations
provide all the necessary resources and raw material to the micro and small firms who then
process them into final products(Turner and Gianiodis, 2018). For example being a medium

enterprise, White line hotels on subcontracting basis, contracts the operations of their small unit
producing beer to Small Beer Brew Co, a small enterprise which then processes the resources
provided by the hotel and supply small beer to them(Bogdanova and et.al., 2016).
Another similarity involves the horizontal relationship between these ventures to
exchange the knowledge where the large businesses becomes a treasure for micro and small
enterprises to access the expertise required for innovation. These large firms becomes a source
for the other enterprises to internalize the proficiency. A perfect example of this is represented by
acquisition or licensing where the micro enterprises by working in collaboration with the large
business increase their market share by bringing creativity in their products and distinguishing
them.
Differences
Micro Small Medium Large
Annual
growth Rate
Micro
enterprise's
average growth
is 234350 with a
rate of 11.93%.
The annual
growth rate as
reported in 2018
is 10.74%.
The average
growth in small
enterprises is
36788 with an
annual growth
rate of 11.93%.
The average
growth in
medium
enterprises is
3475. Maximum
growth evident
by medium
enterprise is
43.12%.
The annual
growth rate of
large
enterprises as
reported from
FY2015-2018
is 17.1%.
Managerial
focus
The managerial
focus of micro
enterprises is r to
increase the
quality of their
products in
developing
countries.
Generating
awareness
among the
customers for
their products
and trading on
international
platform is
what the
The managerial
focus of medium
enterprises is to
foster the growth
on national and
international
level.
Incorporating
innovation
and creativity
through the
use of modern
technology is
what the main
focus of

managerial
focus of small
enterprises.
managers.
Managerial style Micro enterprises
uses laissez-faire
managerial style
Small
organizations
uses
democratic
managerial
style
Medium
enterprises use
autocratic style
Large
organizations
uses
autocratic
style
Managerial
skills
Multi-tasking
Decision making
Business growth
skills
Leadership
communication
skills
Financial
management
Adaptability to
new technology
Financial
accounting
Market
analysis
Leadership
Managing
diversity
P3 Impact of micro and small businesses on economy
In 2015 there were a record 5.4 million private sector businesses, an increase of 146,000
since 2000. Of these, 99.9% are small to medium-sized enterprises, and 99.3% are small
businesses. Adding to this, 45% of SMEs plan to grow in the next 12 months and all SMEs,
excluding those with 0 employees, improved growth prospects in 2013 and 2014. Micro and
small business are the ones which have a great impact on the modern economy as compared to
the large enterprises. Small enterprises are frequently overshadowed by the conglomerates and
large MNC's Therefore they become the primary factor which contribute towards the nation's
economy. Although, small enterprises have always been a prey for the larger ones but despite
this, they opened new ways for small business in terms of competitive advantage and
employment. The contribution of small business enterprises to the level of employment in
various sectors including manufacturing has risen from 5840 in 2010 to 7142 in 2018. Thus the
SBE had a great impact on employment generation in the year 2019 where the job ratio per
candidate raised by 7%(Yan and Yan, 2016).
Small and micro business also have a significant impact on the gross domestic product
due to their huge numbers & generation of income in terms of wages and compensation

disbursed to workers. Besides this, small businesses are also the major suppliers of intermediary
goods which are utilized in manufacturing other goods. SBE share to UK GDP as reported in
2018 increased to 50% in value added as well as in total gross output. In relation to finance, real
estate and construction sector,Small and medium enterprises haws led to an increased asset base
and sales value thus raised the value added categories TP $534 million in 2019. Their
contribution to GDP is said to consistently increase in the upcoming years where the the
opportunities for their expansion will be on hike. SBE also made a significant addition towards
the diversification of economy with the help of manufacturing sub sectors. Due to its 50%
concentration on heavy distribution sector, it has diversified the service sectors from 10% in
2015 to 13% in 2018.
P4 Significance of small businesses in enhancing the social economy
Small businesses are always underestimated because of their low growth potential.
Despite this, they play an important role towards boosting the social economy. Their coverage to
rural, urban and semi urban areas makes it a biggest factor for the local people to shop
immensely. In developing and developed countries, small businesses offers diversified products
to make the customer experience more memorable. Small businesses viability is much higher
than the large business and thus plays an elementary role in enhancing the social and local
economy. The first contribution of small businesses and startups toward the social economical
changes is greater employment to local workers. These businesses are always keen to focus on
innovation and creativity and hence employs a large number of talent who work towards
inventions and apply brainstorming to solve the problems. They hire the candidates which are
employed by large corporation and this indirectly also benefits the latter who depends on small
enterprises to get their most work done(Linton and Solomon, 2017).
Another significant contribution is the ability of startups to react quickly to changing
economical climates. They are usually customer oriented and provide niche services to specific
segment of the target market thus constantly endeavours to understand the demands of
community. This makes the customers more loyal towards them which eventually strengthen the
social economy as they remain afloat during unfavorable conditions.
One more importance of small businesses towards the growth of social economy is the
tax contribution. The flourishing local business which generate huge amount of revenue and
profit are liable to pay heavy taxes which also includes property taxes. Thus this money becomes

a source of funding to schools, charities etc and improves the bottom line of homeowners.
Besides this, small businesses also imposes sales tax for their location which they ultimately use
for financing unique projects, improvement of the place in order to attract large number of
customers. Thus small businesses are an important aspect not only for customers but also for
stimulating economic as well as social economy.
TASK 2
P5 characteristics, traits and skills of successful entrepreneur
Self motivation is the key of a successful entrepreneur the ability to push yourself forward
despite of hardships and normalizing all the problems. Peter Jones is one of the self motivated
entrepreneur whereas a manager motivates its employees to certain extent to work .
Risk taking is another feature of an entrepreneur, as an entrepreneur you must be able to take
risks involving your competitors. Richard Branson as an entrepreneur was risk taking and have a
capability to overcome the risks whereas manager is not a risk taker he only motivates to do
better.
Networking is another big characteristic of an entrepreneur as an entrepreneur one must have
this quality of being in a network of people and must easily develop network of people. . This
also includes partnership with the fellow entrepreneur whereas manager does not have a wide
network to elaborate the business they only find ways to perform better.
Management skills helps an entrepreneur to achieve targets as an entrepreneur Richard Brandon
was able to manage as an entrepreneur. Management helped Richard to achieve the objectives by
managing the things better. Managing money, clients and workers is the key feature of an
entrepreneur whereas managers are capable of managing a particular segment of firm.
Flexibility in an entrepreneur makes him his own master. As an entrepreneur being flexible is an
important aspect, ability to do every sort of work will help the workers and business to grow
better. As a small business there is always a demand to change within certain degrees,
entrepreneurship demands a will to change at every sort of point. Like flexibility in your
thinking, your way of work etc. will help you to grow and stay on top whereas manager is
flexible to certain extent in the sector they works they have certain norms to work with.
Passionate with your work will always lead you to successful life. For a successful entrepreneur
you must be passionate about your product service and missions which you want to achieve.
Peter Jonas as an entrepreneur was so passionate and skilled these characteristics as an

entrepreneur differentiates from other managers as managers work for someone whereas
entrepreneur works for his own passion whereas a manager is passionate to work according to
norms of the organization.
Skills of an entrepreneur:
•Curiosity always urges an entrepreneur to do better, being an entrepreneur curiosity to find
different objectives and achieving it will help you to gain long term objectives. Whereas
business manager always stick to the plans given by the owner whereas manager does not
innovated, they can only advice to do better. They cannot work independently in the firm.
•Entrepreneur always finds an easy way to do work time management skills are very good in an
entrepreneur whereas manager keeps the workers punctual and helps organization to run
efficiently .
•Ability to think about new strategy always urges an entrepreneur, they always finds a way to do
better. Decomposing a problem to its core always urges entrepreneur whereas manager does not
strategies the work in a set of norms of industry.
P6 Aspects of Entrepreneurial personality
Openness: openness in an entrepreneur helps him to motivate his fellow workers. Openness helps
entrepreneur examine, using relevant examples, how background and experience can hinder or
foster entrepreneurship to experience new things, new techniques which will help him to boost
up his confidence. Openness to others helps entrepreneur to grow as an individual.
Openness helps you to be more creative and makes you aware of the surroundings and your
fellow rivals. Openness leads you to more motivated person by seeking the ideas of others.
openness will pursue self-actualization by giving good personal experience. Openness always
helps you to grow. Richard Branson has a vast connection of people which is generated by his
openness and frank behaviour towards others.
Conscientiousness: People who have higher degree of conscientiousness are more likely to be
punctual, organised and methodical in the sense of their work. Person who has conscientiousness
are self disciplined which makes the surroundings disciplined and work according to their ethics
which helps them to lead in future their work ethics will keep them motivated by which clients
are also impressed. Being conscious with your work keeps you focus and motivated which helps
you to achieve the target. Being stubborn with your work will always help you to achieve the
offset set. Peter Jonas is consistent even with his failed attempts he never stopped.

Extraversion: Being an extraversion highlights you and your personality which makes a well
known face in an organization or community. This helps to be visible with the work, many others
get attracted with your work and your personality. Key feature of extraversion is people try to
indulge in your activity they like to share your company. Being an extraversion helps you to
think out of the box. This helps you to boost up your self-esteem and helps others to grow. Many
people idealizes you and tries to level up with extraversion. Richard Branson was an extraversion
he always thinks out of the box which helps him to succeed as a businessman .
Agreeableness: Agreeableness in terms of entrepreneurship relates to agree on opinions of
others, if an individual agrees to others it built its team working strategy. Agreeableness attracts
others to work with. As an entrepreneur we must agree to the points of our fellow workers which
will uplift the firm. Agreeableness motivates your workers and improves your leadership skills.
Agreeableness will help you and your firm to achieve heights and stand out in the competitive
world. Peter Jones is an owner who respects decision of his workers and tries to implement their
suggestions.
Neuroticism: Tendency to experience a negative reflections. as an entrepreneur you must always
take up the negative feedbacks from your clients as the way of thinking may not match with
others. Being an entrepreneur there must be an alternative thought which can satisfy your
customers. There will be many ways which can overcome a situation we need to think out of the
box. As an entrepreneur negativity will always surround, techniques to overcome must be
learned.
P7 Background Information
Richard Branson is one such entrepreneur who had many fail attempts in his business
life. He started at a very early age of 16, that attempt got failed of selling Christmas tree and
budgerigars.
Later he issued a magazine for students which was a success. Later he stepped into many start-
ups like virgin records, package holiday industries, virgin Atlantic airways, telecom ventures,
space travel, virgin media, hotels, healthcare and charitable influences. Which are major success
for the virgin foundation. But he has many failed attempts like virgin cola, virgin cars, virgin
publishing, virgin clothing’s and virgin brides which gave Richard Branson a lesson to focus on
your goals and keep moving irrespective of the hardships which hinders your performance.

Lessons from the past always helps you in moving forward by focus and dedication towards your
goals. Skills for being an entrepreneur helps you to improve by developing and implementing
into real life practices. Likewise Branson never stopped to step forward in life although his fail
attempts he never looked back and focused on his career.
One such example is Peter Jones who started his business career at the age of 16,he
assembled computers in his own brand name. Later he opened a cocktail bar in his mid-twenties
which later on he sold and failed for which he was forced to sell his home car and moved to his
parents. Later on he invested in many of ventures as a start-up which he even failed in many but
did not loose hope and kept on moving this failures hindered in his life but they always urged to
move forward, they never stopped and established themselves as successful entrepreneur.
CONCLUSION
The study have considered all the key points which help entrepreneur to grow with his
ideas and motivations to start a business. Briefly explained about types of entrepreneur ventures
like small, medium, large ventures their similarities and differences. Study about how small and
micro business impact on economy and importance of small business and start-ups in generating
social economy. Determining characteristics, traits and skills of entrepreneur which differentiates
him from manager. Entrepreneurs personality reflection reflecting in motivation and mindsets.
Using background information and experience how they hinder or foster entrepreneurship

REFERENCES
Books and Journals
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conditions of global competition: possibilities and threats. European Research
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Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dunne, T.C and et.al., 2016. The impact of leadership on small business innovativeness. Journal
of Business Research. 69(11).pp.4876-4881.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Linton, J.D. and Solomon, G.T., 2017. Technology, Innovation, Entrepreneurship and The Small
Business—Technology and Innovation in Small Business. Journal of small business
management.55(2).pp.196-199.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
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entrepreneurship. Journal of Business Research.69(11).pp.5147-5152.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
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education outside of the business school. Journal of Small Business Management.56(1). pp.131-
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Welter, F. and Gartner, W.B. eds., 2016. A research agenda for entrepreneurship and context.
Edward Elgar Publishing.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
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Online
The four types of entrepreneurship. 2016.[Online] Available through:
<http://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html>

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