Entrepreneurship and Small Business Enterprise

This document discusses the types of entrepreneurial ventures, the similarities and differences between them, and the impact of business on the nation, international, and social economy. It also explores the characteristics, traits, skills, and motivational drivers for successful entrepreneurs, as well as the influence of personal background and experience on entrepreneurship.

ENTREPRENEURSHIP AND
SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Define type of entrepreneurial ventures with typology of entrepreneurship..........................1
Define the similarities and differences between entrepreneurial ventures.............................3
Critical examination of the impact of business on nation and international and social
economy. ...............................................................................................................................5
Evaluation of the impact of different businesses to economy with use of data and statistics.7
PART B............................................................................................................................................8
Analyze the characteristics traits, skills and motivational drivers for successful entrepreneur
by exploring different lines of arguments..............................................................................8
How characteristics of entrepreneur personality reflect entrepreneurial mindset and
motivation...............................................................................................................................9
Evaluate how person background and experience can influence entrepreneurs both positively
and negatively.......................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship defined as setting up business or businesses and a process of creating a
new entity with view of earning profit (Akhmetshin and et.al., 2018). It is study that termed out
as how new business are created and operate its activities to start a new business. Therefore,
entrepreneur is defined as personality that drive change with innovation and in which new and
improved products enables new market to be developed. The one of the main significance of
entrepreneurship is the creation of job opportunities
The present study is based on activities of entrepreneurship and small business
management that defines the range of entrepreneur ventures and its impact on growth of
economy.
Furthermore, assignment is based on entrepreneur ventures and typologies of
entrepreneurship, similarities and difference between characteristics, traits and skills of
successful entrepreneur. Lastly, background and experience will be defined that hinder and foster
the entrepreneurship.
PART A
Define type of entrepreneurial ventures with typologies.
Entrepreneur is defined as an individual who has the core responsibility to bring
development in the business and business in relation to taking up financial risk with aim of
earning the profitability. Additionally, the entrepreneur defined as person who organize and
operates the business and businesses. Entrepreneur ventures defined as to put their major focus
over the providing advisory services to the small companies. Thus, the role of entrepreneurial
ventures is usually dependent on the stage of enterprise. Henceforth, these are defined in
following manner as are-
Small business entrepreneurship- It is enterprise that can be called out as privately owned.
Hence, they operate their working with the smaller number of employees and low amount of
volume of sales. Thus, the corporation comes under this category as are partnership, sole
proprietors etc. Therefore, small businesses usually deal with the established products and
services. They operate their business working at the small level with help of small amount of
funds. They can borrow their funds from family, friends and can arrange from their own savings.
This requires low amount of investment to start their business functioning. The profit generated
with this enterprise aids to cater the basic needs.
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Large business entrepreneurship- The large business enterprise has one main motive to earn
huge amount of the profitability. To set the activities, this enterprise has to borrow the funds
from financial institution as they require high amount of investment. Additionally, the venture
capital, angel funding and bank loans are the common source of funding. This entity has to put
core focus on technical advancement, new competitors and legislation.
Scalable enterprise- They are the set who bring innovation and creation in market. They are
undertaking their business activities with help of searching the repeatable and scalable business
model. Thus, the amount of the profitability generate by this enterprise will be utilised for
undertaking research and development process to bring out more innovative methods (Coffie and
Blankson, 2018).
Social enterprise- Under this, the main motive of entrepreneur is to promote welfare in the
society. The main aim of this this enterprise is to sort out the social needs and problems. Thus,
purpose of this enterprise is to bring improvement in the living conditions of people. Henceforth,
this firm undertakes activities as to conduct extensive research to bring development in products.
For example- The enterprise as Oxfam is social entity that promoting welfare to society and
formed by group of independent non governmental organisation. Thus, main purpose is to work
together to have greater impact on international level by reducing the poverty and injustice.
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Source: (Bronfenbrenner, 2017)
Typologies of entrepreneurship-
These are defined in following manner as are-
Serial entrepreneur- Under this, entrepreneur performs continually to bring out the new and
innovative ideas to start new businesses. Thus, they sell as per predetermined exiting strategy.
Lifestyle entrepreneur- They are termed out as those entrepreneurs who works as select those
businesses that reflect the passion and are more focused on undertaking the activities in which
they have high interest (Czarniewski, 2016). Thus, the main motive is to make profitability and
to gain highly competitive advancement.
Social entrepreneur- They are the entrepreneur that is rapidly growing and also can be termed
out as vibrant sector. Therefore, they have crucial role in providing those commodities that put
the focus on to creation of the social good and services.
Microenterprise entrepreneur : This is the another way of promoting the dealing business
target to influence the business results. Micro-entrepreneurship is being increasingly recognized
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as one of the most demanding way to eliminate the poverty and give chance to increase self
sufficiency with the use of minimal resources. For example- The local tailor shop within the
area can be considered as micro enterprise and he take the small loan to set up the shoe and buy
materials.
Medium Sized entrepreneur : Medium sized entrepreneurs is the new start-ups and new
ventures towards developing a new result and growth. Small medium enterprises are the small
scale business which personnel whose worked at the long lasting manner. Also, they liable to
make better understand the objective and following business task in order to make essential the
following effective activity. For example- Grocery stores, hairdressers, popcorn makers are
covered under the medium sized entrepreneur.
Small/lifestyle Ventures : Small business venture is the very small start-up which was started by
only single handed person. This is one of the most oldest way to better understand the objective
and influence the main types of entrepreneur business. Lifestyle businesses highly earn the
profitability which generally does not become profitable for several years.
Define the similarities and differences between entrepreneurial ventures.
Therefore, differences and similarities are carried out in the following manner as shown
in the table below-
Dimension Gazelle Ventures Small/Lifestyl
e Ventures
Microenterprise Medium Sized
Ventures
Objective The main purpose is
to wealth formation
by investment in
early start-ups. The
main purpose
income objective for
owner is to raise
significant amount.
They are the
entity that is
interested in
ensuring regular
income or the
businesses
which is based
on small
startups.
They are the
enterprise that is
very small based
with having 10-12
employees in a
team.
They are the
entrepreneur who
largely invest in
innovation and
creation.
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Exit value*
(valuation of
assets)
In this, owner of the
enterprise has exit
value, that means
owner takes high
risk to get high
result.
Under this,
owner considers
over assets
value in near
time span.
Therefore, the
one of the main
objectives is to
earn regular
cash flow.
Microenterprise
venture pays less
attention on the
asset’s valuation.
They work as to
assets when they
find the best
value to their
skill, interest and
hobby.
Leadership role The main role of the
person is to create
innovative start-up
and than sell to other
business with good
money.
They mainly
aims to efficient
work. They
provide proper
guidance to
subordinates for
improved
service.
Under this,
Leaders motivates
and inspires
subordinates to
take actions that
provide effective
outcomes.
In this, Leader of
such organisation
empowers leader
with essential
information and
supportive work
environment.
Finance sources They arrange funds
from issuing shares
and debenture.
This is the
enterprise that
arrange money
by family and
friends.
It is the
enterprise that
takes financial aid
from government,
volunteers.
Medium Sized
Ventures arrange
money with help
of family and
friends.
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Key similarities in ventures
Differences Small business Scalable
business
Large business Social enterprise
Economic
motives
The main purpose
of small entities
meet all basic
financial needs
The main purpose
is to earn long
term profitability
to bring out
productivity and
profitability.
The primarily
object is to earn
high amount of
profit.
The main of
social business is
to arrange funds
to cope with
needs of weaker
section of society.
Managerial
focus
The main
consideration is to
handle the basic
survival of
individuals.
The business
managers of
scalable entities
has main focus to
earn long term
objectives.
Large business
entity has main
aim is to manage
technical
innovation and
bring high
advancement
within the marekt.
The social entities
manages their
activities that can
directly fulfill the
needs of society
instead of earning
the profits.
The entrepreneur venture mainly put their focus on offering advisory services and
provides shapes to business plan of action, vision, risk, style of leadership and decision of
growth. They are those venture whose main aim is to earn large amount of the profitability with
help of innovation. However, maximisation of profit is one of the common sources of the
enterprises. Similarly, the social enterprise also has main motive to earn long term profit but this
entity generating revenue for the welfare of the society. Thus, it can be clearly stated out that
small, large, social and lifestyle entrepreneur has their full control on activities of business
enterprise. These are the all enterprise that has business risk to carry their performance but with
the varied intensity.
Critical examination of the impact of business on nation and international and social economy.
The number of the regions are in the UK, the effective comparison has been defined
between the regions of the United Kingdom.
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Social Economy : Social Economy is a formed by a rich diversity of enterprise and
organization such as cooperative, mutuals and associations. Small economy consists democratic
governance, voluntary membership, independence
National Economy : National economy is a area which is spreading into wider manner.
Under socialism national economy as a unified whole first takes shape during the formation
sates. This is based on private ownership of manufacturing, production. In which includes
particular thing only rather than world involved.
International Economy : International economy is the concept which has been affected
by national and social economy. It includes international trade, international finance, Exchange
monetary economies.
Thus, impact will be analysed in following manner as are-
Differences of impact of SME's within London and South West regions-
London South west
The maximum number of the enterprise are
private in London and about the 99.8% of the
entities consist of SME's. Additionally, rate of
employment also has been enhanced to 49.8%.
It has also reaches to the 2.1 million job
opportunities (DeTienne, McKelvie and
Chandler, 2015 ). Due to creation of the more
job opportunities the effect of economy has
also become positive. Thus, turnover has
reached to 47.6%.
Under this region, there are more than 70%
private entities that come under small medium
enterprise business. Thus, 49% of the
employment has come from small businesses.
Henceforth, rate of opportunities of
employment within micro is 18.56%, 18.2%
for small entity and 15.1% for the medium-
sized firms. Thus, highest amount of the
turnover earning from construction and
manufacture SME's. Thus, almost 550 entities
classified into small medium-sized enterprise.
Thus, this has been summarized that small medium-sized enterprise has highly
contributed towards to undertake development within the regions. So, it can be clearly stated that
London is ahead when its come to contribution of small medium-sized enterprise than the
regions of south west.
Comparison of two different sectors as-:
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Retail Construction
The 16% of the enterprise within retail sector
comes from small medium-sized enterprise.
Thus, almost 560 business engaged as small
medium-sized entities. Henceforth, this can be
stated that this holds 10% of total business
enterprise. Within UK, almost 68% entities
have made profitability and 7.8% has faced
loss. Thus, it can be stated that high amount of
profitability has highly impacted the retail
enterprise in positive aspect.
The total number of the small medium-sized
enterprise within construction industry are
almost 1000. This is inclusive of 5% of total
business enterprise. Henceforth, 8%
individuals are employed with small medium-
sized entities. There are almost 75% of the
small medium-sized entities have seen
profitability within the year of 2018. Thus,
only 3% has faced loss.
Difference on the impact of SME for the two EU countries
France Italy
It is country that is dominated by small
medium enterprise. They hold each other
sector in France. Small Medium-sized
enterprises has provided employment
opportunities to various individuals. This aids
to reduce employment. It has contributed 529
billion Euros in the year 2017. Thus, it has
positive impact on economic health of finance.
The major amount of growth and innovation
has positive impact on industries of Australia.
Henceforth, the contribution of small medium-
sized enterprise is less if it is compared with
France.
This can be concluded that regions of UK are compared in case of impact that made by
small medium-sized enterprise. From the above it can be summarized that London seems to be
more beneficial as compare to South West Regions.
Evaluation of the impact of different businesses to economy with use of data and statistics.
Small business enterprise defined as privately owned corporation, partnership and sole
proprietorship. This plays crucial role in creation of job opportunities that aids to drive economic
growth within smaller geographical areas (Dunne, 2017). Thus, small medium-sized entities
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employ less than 250 individuals and turnover is within 49.3 million euros. Thus, enterprise
inclusive of small, micro and medium-sized organisation and the number of people employed
have been explained and illustrated by the graph below.
Source: (Dunne, 2017)
Micro- This is defined as private enterprise in the UK that has contributed in the economy of
United Kingdom. Within the year 2017, the entity has grown up-to 5415 number of cities. This
has also provided the employment opportunities to about the 8500 people. Additionally, the
maximum business that held within UK is with the support of micro enterprise.
Small- The total number of 210 entities has been enhanced the size of small business. In this
entity, the total working employees are 4100. Thus, turnover of this entity has reached to 570
billion pounds.
Medium- There are almost 33 businesses that are medium in size. Thus, they employ 3400 staff
from United Kingdom. Hence, the financial contribution mainly consists of operating 600 billion
pounds and this is about the 15% of total turnover of the UK.
From the above aforementioned graph, it can be clearly mentioned that Small medium
enterprise plays significant role in making contribution to economy of UK. Employment has
been enhanced and this also assist towards the economy of United Kingdom. Small medium
entities assist to bringing innovation and this also aids to stimulate economic growth by
providing employment opportunities for larger enterprise. Brexit is the components that has huge
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impact on operational working of enterprise, and this is also critical for leaders of business. On
the other hand, Brexit has constituted the fundamental changes in the policy of British foreign.
Effective innovation approaches help to conduct the business activities more effectively.
Apart from Brexit there are several challenges that UK businesses faced during their
tenure. Some of them are Resourcing, the UK has been known for its internationally mobile and
highly skilled workforce as well as the favourable supply of European retail and hospitality staff.
For example after Brexit the main issue has been company facing is employee resource.
Construction or legal property issues is the another issue which mainly faced by the small
entrepreneurs.
PART B
Analyse the characteristics traits, skills and motivational drivers for successful entrepreneur by
exploring different lines of arguments.
Entrepreneur defined as an individual that put extra ordinary effort to establish and run
business activities effectively. It excels the practices that assists to cross the traditional way to
perform the business activities to enjoy the reward for the performance. In the present era,
Richard Branson and Philip Green do not need any introduction.
Thus, Richard Branson is the founder of the virgin group. He has taken the huge risk of
diversifying the business in more 10 industries. In his life, he has seen the varied situational
influence that motivates the person to cross the thin lien and to build remarkable personalities.
For him, risk is challenge that has made his personal growth (Edwards-Schachter and et.al.,
2015).
On the other hand, Phillip Green has awarded as successful entrepreneur in 2018. He is
currently working as the head of the Acardia group. Thus, he has established the retail kingdom
and become the multi-billionaire. Thus, the traits, skill and motivational drivers are defined in
below manner to become the successful entrepreneur as-
These are the individuals who are self-starter, and they need to perform the things those
required change. In order to accomplish the goals, they are the people who needs to undertake
the activities by setting vision, mission and path or procedure that aids to accomplish
organisational goals. Thus, entrepreneur always takes initiative to do something new and this
comes out with their innovative approach. Thus, they are the people who make the things more
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unique. They also encourage the employee to make their contribution towards to creativity and
this can be helpful to maximum extent.
In order to become the effective entrepreneur this is crucial to have listening, speaking,
motivational, understanding skill that leads to carry things effectively and efficiently. Thus,
Richard Branson was talented personalities and his confidence, knowledge, skills and experience
motivates him to do the things that can help him to go ahead effectively. Thus, effective
entrepreneur must have ability to see the things with proper directions. Thus, traits, skills and
characteristics of the individual helps to become the entrepreneur personality more effective and
better advancement can be accomplished.
Factors motivating the successful entrepreneurs
Entrepreneurship is a very complex process and this process for not those who suddenly
get hurt by the difficult times. There is more to entrepreneurship and is not just about making
money. In business environment It involves both positive and negative factor that might affect
entrepreneurship in positive or negative manner. There are 5 motivational factor which
encourage entrepreneur such as Passion, Self-Reliance, Feeling of accomplishment,Personal
growth, Sense of Control etc.
Abraham Maslow theory
As per the maslow motivation theory, every individual has five basic need, namely ,
Physiological needs, safety, Love and belonging needs, self actualization need. Each individual
look forward to full fill these requirements. For instance some individual have full-time job,
effective salary, all the amenities but they do not feel satisfied due to lack in need of self
actualization. There are many examples are available who left their due to accomplish
dependency, esteem and pride. Entrepreneurship also render opportunities to serve love and
belonging need.
How characteristics of entrepreneur personality reflect entrepreneurial mindset and motivation.
Motivation can be defined as one of the effective terms that aids to carry out the task
more proficiently. With help of motivation the people can perform their work in the adverse
conditions. Thus, it can be stated that the entrepreneur is blessed with some positive traits that
helps to make the effective and efficient person. There are the following five traits that can be
defined with the help of ocean model. This model will be used to define the entrepreneur
personalities and mindset of the two famous industrialists as-
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Openness- It is the trait that is related with the foresight, imagination and insight ability in the
person. They the personalities who are flexible to accept the changes. Thus, Richard Branson is
one of the examples whose have open personality trait. Thus, his success credit of innovation and
creation goes to his openness (Elo, 2016).
Conscientiousness- They are the people who are used to assert the activities on time, and these
are crucial to accomplish the goals. For example- Jean Paul is the punctual and very organised
person he uses to do the things on timely manner. He never procrastinates his task. He has idea
about the all the minute details of changes in petroleum industry and this has made him
successful leader.
Extraversion- at this the individual can able to handle social situation more effectively. Thus,
Richard Branson has high extraversion skill and personality this has helped him to be more
extrovert, active and vibrant.
Agreeableness- This is inclusive of the all kind of the ethical behaviour as affection, trust and
kindness etc. therefore, Richard and Jean Paul both are good at this skill. This aids them to be the
personality who make them to treat other with empathy.
Neuroticism- This is the skill that mainly deals with the things as mood swings, worries, stress
etc. It is not that good for the individual who decides to do something risky and this make people
feel demotivated.
Evaluate how person background and experience can influence entrepreneurs both positively and
negatively.
There are so many components that helps to become effective leader. The person who has
less creativity and high restriction are usually hesitates to take big decision. Thus, background
and experience of both the entrepreneur has been defined in following manner as are-
Richard has idea about the things that how to collect the opportunity and he has learned in his
childhood because his mother has left him at countryside as punishment for the misbehaviour.
He also learnt to receive the direct from others.
He put this all experience in his business. His sharp mind and effective skill made him a
good entrepreneur (Elo, 2016). Thus, his marketing team always ask people for the requirement
they need to develop for them. It can be stated that the Richard Branson was not having all the
kind of elements of favourable background. Thus, he still takes the initiative to develop his
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business in many fields in which he was not having the proper knowledge. Thus, his sharpness
and motivation helped him to take the risk decision in the unfavourable background.
Sometimes negative background of entrepreneur also be the reason of their success.
Many of the entrepreneur who belongs to the poor background. This is the only thing which
makes them motivated to do something big in life. Or sometimes personal background might be
given negative image for the entrepreneur in terms of handling the business nationally or
internationally.
The personality and background of the entrepreneur impacts a lot to undertake the
activities. Therefore, background usually motivates the entrepreneur to build business and to
accomplish the desired aims and objectives. Richard has learned to grab the opportunities in his
childhood. His mother left him at countryside as punishment for misbehaviour at the back seat
and from the child he is the only person who handled his issues. This was a incident that made
him more fearless and confident. This can be true to stated that Experience has huge impacts on
the risk decision making as an individual and also leads to positive experiences that welcomes
the risk and change. In contrary bad experience leads to imperceivable change.
CONCLUSION
From the above aforementioned report, it can be concluded that entrepreneur plays the
significant role in developing product and services. Thus, innovation and creation play
significant role in undertaking business activities effectively. Therefore, effective skill aids to
undertake the business activities more effective and also develops better creation so that unique
services can be accomplished.
The present report is based on topic as entrepreneurship and small business management.
Furthermore, assignment has covered the activities as to define about the entrepreneurial
ventures with typology of entrepreneurship. Henceforth, assignment will focus on explaining key
similarities and differences between entrepreneurial ventures. In this report, the traits,
characteristics and skill has been defined with the help of the successful entrepreneur such as
Richard Branson and Phillip Green. Lastly, the person background and experience has been
defined as this aid to influence the entrepreneur in the both positive and negative manner.
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REFERENCES
Book & Journal
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Bronfenbrenner, M., 2017. Income distribution theory. Routledge.
Coffie, S. and Blankson, C., 2018. Strategic prescriptive theories in the business context of an
emerging economy. Journal of Strategic Marketing. 26(5). pp.373-384.
Czarniewski, S., 2016. Small and medium-sized enterprises in the context of innovation and
entrepreneurship in the economy. Polish Journal of Management Studies. 13.
DeTienne, D. R., McKelvie, A. and Chandler, G. N., 2015. Making sense of entrepreneurial exit
strategies: A typology and test. Journal of Business Venturing. 30(2). pp.255-272.
Dunne, C., 2017. Can Intercultural Experiences Foster Creativity? The Relevance, Theory and
Evidence. Journal of Intercultural Studies. 38(2).pp.189-212.
Edwards-Schachter, M and et.al., 2015. Disentangling competences: Interrelationships on
creativity, innovation and entrepreneurship. Thinking Skills and Creativity. 16. pp.27-39.
Elo, M., 2016. Typology of diaspora entrepreneurship: Case studies in Uzbekistan. Journal of
International Entrepreneurship. 14(1). pp.121-155.
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