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).