ESBM Table of contents Page 2 of 14 Entrepreneurship

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT (ESBM) Table of contents Page 2 of 14 Entrepreneurship is the way to set up a business by considering different risks related to it such as financial or managerial. P1 Discussion of different types of entrepreneurial ventures and explanation about the ways those relate to the typology of entrepreneurship The entrepreneurial ventures are different in types as follows: Small business entrepreneurship: These type of startup businesses can only be run by the owners and the number of employees are

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT (ESBM)

Table of contents
Page 2 of 14

Entrepreneurship is the way to set up a business by considering different risks related to it such
as financial or managerial. The entrepreneurial ventures can have different ownership structures
and the entrepreneurs need to have certain skills and characteristic to development and
management of a business. The experience and personal background can have diverse effect on
the entrepreneurship that can foster or hinder a business. The study is going to focus on different
types of entrepreneurial ventures, their effect on the economy. Apart from this, the skills and
mindset needed to set up a business will be elaborated along with the ways experience and
personal background can affect a start-up business.
P1 Discussion of different types of entrepreneurial ventures and explanation
about the ways those relate to the typology of entrepreneurship
The entrepreneurial ventures are different in types as follows:
Small business entrepreneurship: These type of startup businesses can only be run by the
owners and the number of employees are very low. Along with this, the revenue generation are
not much and these organizations continuously focusing on getting more clients and
development of its products or services. This type of business can be run with family members
and with friends as partner. However, several small businesses are there that provides innovative
products or services and grow exponentially (Drucker, 2014).
Scalable startup entrepreneurship: These types of businesses start business with innovative
ideas and focus on providing innovative products or services from the starting. These types of
entrepreneurs believe that their ideas can change the world and they search for investment from
venture capitalists. These organizations look for brightest mind for the business and they tend to
set up a scalable business model.
Large company entrepreneurship: The large organisations have finite life cycle and they focus
on providing new products or services to the customers for sustainability and longevity of the
business. The demand of the customers and trends are changing eventually along with
competition, legislation that forced the large organization in disruptive innovation and create
new products for entirely new market. However, the large size of the organization makes the
disruptive innovation difficult.
Social entrepreneurship: This type of entrepreneurship focus on solving different social
problems by delivering their products or services. This organisations focus on creating a better
world for the people and can be for-profit, non-profit or hybrid (Scarborough, 2016).
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P2 Exploration of the similarities and differences between Entrepreneurial
ventures
Differences and similarities between different entrepreneurial ventures are following:
Factors Small business
entrepreneurshi
p
Scalable startup
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Goals
and
objective
s
These
organizations
might not have
structured goals
and objects and
works on
achieving lesser
profitability and
growth.
These business
aims to provide
innovative
products
constantly and
achieve high
profitability for
investors (Kirzner,
2015).
These
organizations aim
to sustain in the
market by
developing new
products or
services and
marketing
strategies.
These
organisations aim
to provide quality
products or
services to make
the world a better
place.
Risks The risks might
be lower but
competition is
high with same
sized
organisations.
The risks are high
due to high
amount of
financial
investment and
pressure to return
high amount to the
investors by
achieving high
sales volume.
The risks are
medium because
large businesses
often manage to
sell high volume
due to their brand
value.
The risks are not
much high
because, these
businesses often
get support from
government and
public due to their
vision.
Employe
e number
Employees are
not more than 50.
Depends on
structure and size.
Employees can be
more than 1000.
Depends on the
size of the
business.
Structure No proper
organisational
structure and
often run with
Mainly
corporations or
limited
partnerships.
The
organizational
structure is often
complex and can
Mainly trustee
based
organisations.
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sole
proprietorship r in
partnership.
be public limited
or private limited
company (Dees,
2017).
M1 Investigating diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and corporate sector
In public sector: The public sector organisations are controlled by government directly or
indirectly. The government invests higher amount on those organisations and different private
organisations provide strategic help to those. These type of organisations have establishment in
different sectors and aims to provide quality products or services to the customers. These
organizations do not emphasis on profitability rather than social welfare and development.
In corporate sector: These type of organisations run privately and can be owned by individuals
or public. These organisations develop marketing strategies to provide quality products or
services to customers to enhance their profitability and longevity of the organisations. Many
large organisations, scalable entrepreneurship ventures are associated with corporate sectors that
focus on sustainable development by focusing on its competitors and developing strategies to
gain competitive advantages (Baum et al. 2014).
D1 Critically examine the scope, development and growth of entrepreneurial
ventures
According to Kuratko (2016), the vision, mission and objectives of different entrepreneurial
ventures are different that affects the scope of those organizations. If those organisations can
develop products that can meet the demand of the customers, then they can sustain for longer
time by generating profitability. The entrepreneurial ventures need to focus on development by
getting investments and plan to develop their products or services in accordance with current
trends and demand. As opined by Storey, (2016), those need to develop an effective
organizational structure that can enhance communication with different department to run its
regular activities. The growth of different entrepreneurial ventures is dependent on their quality
of products and services, how much they can meet the demand of the customers, pricing and
sustainable strategies.
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P3 Interpretation and assessment of relevant data and statistics to illustrate
the ways micro and small businesses impact on the economy
In every industry, the micro and small business captures a higher part and contribute highly in
the economy of a country. The number of micro and small businesses is increasing over time that
generates high revenue by providing different products and services to the customers.
Comparison of SMEs and large businesses in the UK
(Source: Brenkert, 2017)
In the UK, the number of small businesses are high in different industry and there are more than
4.5 million SMEs are established throughout the United Kingdom, which is almost 99% of all
the businesses in the country (Brenkert, 2017). Therefore, the revenue generated by those
businesses have high contribution to the GDP of the UK. Within all the businesses, 96% are
considered as micro business that employs only 0-9 people. Those businesses provide 33% of
employment ad 22% of total turnover.
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Share of businesses in the UK
(Source: Schaper et al. 2014)
According to the graph, the number of small and micro businesses is much higher than medium
and large businesses in the UK. Small and micro businesses earn 37% of turnover and provide
48% of employability throughout the UK (Schaper et al. 2014).
Business type of micro and small businesses in the UK
(Source: Burns, 2016)
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The small and micro businesses can be categorised as innovator, non-innovator, exporter and
non-exporter. Those businesses generate revenue with or without innovation and many of those
exports products and get foreign currencies and contribute to the economy of the UK (Burns,
2016).
P4 Explanation of the importance and business start-ups to the growth of the
social economy
In order to maintain the growth of social economy, the start-up businesses have high influence in
different countries. The startup businesses often comes with innovative ideas of products and
services that can meet certain requirements the people comparatively other businesses. Apart
from this, sometimes startup businesses can capture the market very fast and managed to
generate higher revenue in very short time period. In this process, those businesses need to
provide high amount of business tax that can be helpful of the growth of a country. Apart from
this, in order to run a business, startups hire people which can reduce unemployment in a country
(Baum et al. 2014). There are many startups who cannot provide high salaries to the employees
due to lack of capital and those hires some of the lesser skilled employees with lower salaries
that is also helpful in decreasing unemployment problem.
Many startups are associated with different types of CSR activities related to social,
environmental and economic problems to enhance brand value. In this procedure, those
businesses provide education to the people in rural areas or people with poor financial
background. Those people can use that education in future to get work that is also helpful in
economic growth. Apart from this, there are a high number of startups businesses are established
in different industries in the UK, which have high contribution in the GDP of a country.
M2 Evaluation of the differences make by small, medium and large businesses
to the UK’s economy through relevant published data and statistics
In the United Kingdom, the number of small and medium businesses is high compared to larger
organisations. The small and medium-sized businesses have captured larger part of every
industry and contribute to the economy of the UK highly. However, the larger businesses earn a
high revenue solely by providing quality products and services and due to their brand value.
Many large businesses of the UK have establishment in different countries that is helpful in
earning foreign currencies. The larger businesses consist of different operational activities and
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they employ higher number of candidates compared to other organisations. The large
organisations also spend higher amount in CSR activities in a country (Brenkert, 2017).
The small and medium-sized businesses focus on providing innovative products to the customers
gain attraction and enhancement of business growth. Those businesses also export higher volume
and also employ high number of candidates in the UK that is helpful in reducing unemployment.
D2 Critically examine the ways small businesses have an impact on different
levels of the economy in a global, regional, national and international context
The small businesses in the UK have diverse effect on the economy of the country in different
levels. As per Drucker (2014), in regional level, the small businesses can compete with same
types of businesses by providing quality products and services that can meet the demand of the
customers more effectively. Those businesses are focusing on hiring employees with lesser
salaries due to lack of finance and employ people who have lesser skillset compared to others,
which is helpful in reducing unemployment. As argued by Kirzner (2015), in national level, that
organisation can expand to different areas of a country and enhance revenue generation that
enables them to provide higher tax for development of the country. In global and international
level, many of the small organisations export its products and services and set up branches in
different countries. It is helpful in earning foreign currency that contributes to growth of the
country.
P5 Determination of the characteristic traits and skills of successful
entrepreneurs that differentiates from other business managers
Different characteristics traits and skills are essential for the entrepreneurs to set up a successful
business and enhance its growth. In order to set up a businesses, different procedures needs to be
considered by an entrepreneur and those needs to be completed single-handedly due to lack of
capital in first. The personal characteristic do the entrepreneurs are following:
● Ability to generate new ideas
● Ability to take risks
● Have vision and goals
● Have motivation to achieve the goals
● Good management skills related to resources, financial and human resources (Schaper et
al. 2014)
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The personal skills of an entrepreneur are following:
● Communication skill is needed to interact with range of people such as suppliers,
distributors, clients, employees and more
● The leadership skills is needed to show the path to the employees for achieving goals
● Negotiation skill is needed to deal with clients and also to mitigate any internal problems
● Time management skill is important to complete the tasks on time to achieve success
P6 Assessment of the ways aspects of the entrepreneurial personality reflect
entrepreneurial motivation and mindset
The entrepreneurial personality of an individual is essential in set up a business and be motivated
to deal with different problems and risks associated with it. The entrepreneurial personality
involves characteristics through which an individual can generate new ideas and implement it to
generate revenue. Those ideas need to meet certain demand of the customs and an entrepreneur
need to constantly develop those ideas for sustainability. An entrepreneur needs to have ability to
take risks and use the resources carefully for the businesses. They need to set the goals, mission
and vision for the business and develop strategies to achieve those (Brenkert, 2017). The
entrepreneur needs to identify the opportunities to make sales and generate revenue. Therefore,
they need to be self-motivated to run the business by managing the risks related to it and have
the mindset to achieve the goals continuously.
M3 Exploring and examine different lines of argument relating to
entrepreneurial characteristics
The characteristics of a entrepreneur have high similarities with the characteristics of the leader.
In this procedure, entrepreneurs need to set goal for their businesses, deal with the risks and
make plans to achieve those goals. They need to deal with a number of people such as
employees, investors, suppliers, distributors and more single-handedly. Along with this, they
need to plan and allocate resources and show path to the employees to fulfil organizational;
objectives. The entrepreneur also needs to have good management skill to manage the
organization and deal with any conflicts effectively (Dees, 2017). As an instance, Ms Rana
Harvey is motivated and passionate to run the business have belief in oneself. She can work
hard, plan effectively and manage the organization by dealing with different problems to grow
the business.
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D3 Analysing the characteristic skills, traits and motivational drivers of at
least two successful entrepreneurs with example
Ms Rana Harvey set up the Monster Group that is progressed very fast and certain skills and
traits of Ms Rana Harvey have high contribution to it. She is highly passionate and motivated to
run the business and as a chemist, she runs the business as a laboratory so that she can work
effectively without getting bored. She has self-belief and maintains the discipline to complete
her tasks. She can work hard can conduct the work single-handedly. Along with this, she can
make the finance of the businesses effectively and allocate to different tasks. She can plan the
future and make strategies deal with risks and run the operations.
Zac Williams is the owner of GradTouch that provides support to the students and provide
consultancy services to the organisations to get skilled employees. He has good communication
skill to get clients and have risk-taking ability to set up the business. Along with this, he has
innovative idea through which he can help the students in finding a good job along with
providing efficient employees for the businesses. He also has high motivation to deal with the
risks and plan the business along with management skills.
P7 Demonstration by examples about the ways personal background and
experience can hinder or foster entrepreneurship
Personal background and experience can have high effect on a business and it can foster or
hinder the business the entrepreneurship. The personal background consists of support from
friends and family, motivation, financial background and others. In this procedure, if one can get
correct support from their friends and family, then they can be motivated to set up a business.
The Support can enhance the motivation and risk-taking ability that can foster the
entrepreneurship. The financial background can also influence the risk-taking ability of an
individual and startup a business. However, without support from family and friends, many
individuals become demotivated in entrepreneurship (Schaper et al. 2014).
The personal experience also has influence in entrepreneurship. If the experience is good then
one can continue with their business for longer time and become motivated to set up a business.
However, if the experience is not good, then one might be afraid to set up a business.
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M4 Analysing the link between entrepreneurial characteristic and the
influence of personal background and experience to specific successful
entrepreneurs
The personal background and experience can allow an individual to set up a successful business.
Ms Rana Harvey is a chemist who set up a business named Monster Group. In this procedure,
she plans the business, recruit employees and make strategies for marketing and dealing with
risks. She is self-motivated and uses her office a chemistry lab so that she cannot become bored
and work effectively. She is self-motivated and participated in business programs to gain
experience by associating with other busies and use it for own business process. She also
conducts future planning, focuses on financial management and works hard to run operations.
Zac Williams is owner of GrandTouch that provides consultancy services to the business and
provide support to the students to get a job. He is also self-motivated and set up a business while
failed to find job in Accenture. He builds up a good experience for the students and other clients
through which he becomes motivated to run the business activities. He can take risk, plan the
business and interact with clients, which are essential part of the business to grow.
D4 Critically evaluating the ways background and experience influences
entrepreneurship both positively and negatively by comparing and
contrasting examples
The background and experience of an individual can affect the entrepreneurship in both positive
and negative ways. Ms Rana Harvey and Zac Williams have motivation to set up a business and
deal with different problems to grow. They get efficient support from team members to be
motivated and run the organization. As argued by Dees (2017), there are many businesses that
cannot survive for longer time due to inefficient team and lack of motivation to keep the growth.
The past experience of failure can affect the entrepreneurship negatively. According to Kuratko
(2016), if one has strong financial background and support, then they can take risk to set up a
business and run effectively.
Conclusion
The startup businesses can be different types such as small, micro, medium and large businesses.
The small businesses capture a large part of every industry and have high contribution in
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economy of a country. The entrepreneurs need to have certain skill and mindset to setup and run
a business by considering different risks.
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Reference list
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. In Entrepreneurship (pp.
85-128). Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
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