Entrepreneurship and Small Business Management Report

This report provides a comprehensive overview of entrepreneurship and small business management, covering various types of ventures, their impact on the economy, and the importance of small businesses and startups. It analyzes the skills, characteristics, and traits of successful entrepreneurs, examining how background and experience can hinder or foster entrepreneurial success. The report also includes a detailed analysis of the UK economy and the role of SMEs in driving growth and innovation.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Different types of Entrepreneurial Ventures and Typology of Entrepreneurship ..................1
2. Following are the difference between various type of entrepreneurial ventures ...................3
3. Impact of micro and small business on economy ..................................................................5
4. Importance of small and start-ups businesses to growth of social economy .........................7
5. Entrepreneur Skills, characteristic and traits...........................................................................8
6. Examine background and experience can hinder and foster entrepreneurship ......................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is procedure of creating, establishing and running a new business which
is frequnetly initially a small business. A persons that are creating these companies are known as
businessman. It has been presented as capability and willingness to grow, organize as well as
arrange business venture along with any of its risks to create profits (Scarborough, 2016).
The present case study is based on Joe Wood. He has successfully set up an IT business
and facilitates number of businesses who processes online and credit/debit card payment from
vendors.
This report will examine different kinds of entrepreneurial ventures as well as its
typologies. It will expand similiarities as well as difference among various entrepreneurial
businesess. It measures impact of small business on economy by using statistical information. It
will explain importance of attempting of small and start-ups business in development of social
economy after Brexit. It will determine characteristic and skills of two successful businessmens.
MAIN BODY
1. Different types of Entrepreneurial Ventures and Typology of Entrepreneurship
Entrepreneurship is defined as the process of starting or creating a new business. It also
focuses on creation of new ventures. There are various kinds of entrepreneur \ venture, these are
described as below: Large Entrepreneurial Ventures: Large organisations are such enterprises that operates
its business across the world and works to raise their profitability. For instance: Tesco is
operating globally (Arregle and et.al., 2015). It has many branches across the world. The
main agenda of company is to expand its business and generate more revenues. It always
concentrates on satisfaction of consumers and offers them products in such a manner that
meets needs of buyers.
 Small Entrepreneurial Ventures: Small entrepreneurs like grocery stores, travel agents,
plumbers, carpenters, electricians etc. makes huge start-ups in the world. They usually
hire local employees or their family members for running their business. They run their
own businesses which are barely profitable (Morris and et.al., 2018). People consider
them as small as their success is only to feed their family and make a profit, being able to
pay bills and enjoy a small luxury such as travel.
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 Social Entrepreneurial Ventures: Social entrepreneurship relates to business done for
some social cause. It is a combination of social issues and commerce in such a way that it
improves lives of the people who are connected to that cause (Day and Mody, 2017).
Their goal is not to take market share or create wealth but to make this world a better
place. For example, red cross is working as social organisation, it works for improving
well being of individuals.
Topologies:
Serial Entrepreneurship Ventures are those organisations who often come up with new
ideas and get the things done in order to start new businesses. They delegate responsibility to
others and moves forward towards the new ventures. Serial Entrepreneurship have passion to
start with vision and achieve goals which can give better result at later stage. Their success
depends upon their ability to manage time as period is very crucial (Storey, 2016). These
organisations set their goals through SMART (Specific, Measurable, Achievable, Relevant and
Timely) goal-setting model for the purpose of accomplishing their tasks effectively and
efficiently. These types of entrepreneurship come up with curiosity, creativity and innovation
along with the ability to turn a venture from its start-up position to a sustainable and well
developed firm.
Scalable Entrepreneurship Ventures like Amazon and e-Bay focuses on increasing their
revenue or profit without any additional or incremental costs. They takes risk and start a
company knowing from first day that they have vision and possibility of changing the world.
Investment is attracted from the venture capitalists (Marchesnay, 2016). Their job is to search for
the scalable business model and focus on scale. Scalable start ups make some entrepreneurs in
innovation clusters that attracts all risk capitals. It is a business where in the price of goods do
not rise as sales increases.
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2. Difference between various types of entrepreneurial ventures
Comparison on the basis of research and development
Small enterprise Medium sized enterprise Large enterprise
The small and medium
sized enterprise do not
require research and
development sections
They sometimes require R&D
processes for development.
In large enterprise there exist a
research and development
process.
They include the short-
term immediate research
and development
process rarely.
They do not need research and
development process. (Cardon,
Post and Forster, 2017).
Systematic, long term, and
planned research has been done in
large enterprise.
It only renders almost
exclusively need
oriented products,
production, technology
development with basic
research
They require normal examining
of products, production,
technology development for their
workings.
In this production, product and
technology for development is
closely related to basic
research(Storey, 2016).
It requires short period
between invention and
applications in
operations
It also requires period of 6- 9
months between production and
applications in operation(Morris,
and et.al., 2018).
It needs long period between
designing and utilization in
operation.
Comparison on the basis of company management.
Basis of comparison Small enterprise Medium enterprise Large enterprise
Company management In small enterprise,
organization is
managed by owner
itself.
There is lack of
In medium enterprise,
entrepreneur manages
its own business.
In medium enterprise
In large enterprise
managers manages the
organization.
Sound knowledge of
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management
knowledge. They don't
take collective
decisions.
there resides a small
management in some
areas. Few collective
decisions are taken.
managerial skills
Collective decision
making is frequent
(Brunswicker and
Vanhaverbeke, 2015).
Staff Low number of
employees
Medium employees Large number of
employee’s
Organizations Small enterprise have
limited members with
business owner and
few employees
Medium enterprise
have single line
structure, starting from
owner, some managers
and few employees
Complex structure
with self-dependent
persons oriented for
physical quality.
Employees 0-100 100-999 Over 1000 employees
Annual revenue £5-£10 million £10 million - £1
billion
Over £1 billion
It staffs One or two A small group of
several employees
Full-time staff with
several specialist
Locations Typical geographical
boundaries
Many offices in
several locations
Almost in all over the
world.
SIMILARITIES
some similarities of small medium and large enterprise are discussed under-
Customer satisfaction- Small, medium and large organization works for customer
satisfaction. Customer is the king of market; it is very important to satisfy customers in order to
achieve the organizational goals. Small, medium and large enterprise works to achieve same
objectives. Customer satisfactions helps these enterprises to stay out from the competitions.
Customer satisfaction can be observed with the help market research (Brunswicker and
Vanhaverbeke, 2015).
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Profit earning– another similarity between Small, medium and large organization is
profit earning. All type of enterprise works for earning profit for their organization. They work
for profit maximization which is desirable excess value of product and services sold over the cost
of their manufacture.
Therefore, minimization of cost, timing and maximization of sales are few more
similarities between small , medium and large enterprise.
3. Impact of micro and small business on economy
Small and medium sized enterprise are keystone of the UK economy. There were 5.7
million business in UK in 2017. Over 99% of businesses are SMEs usually defined as fewer than
250 people. There are many effects of SMEs on economy.
Economic powerhouse: Majority of 10 people are employers, 33% employment and 19%
turnover of small business in May 2015 in UK (Taylor, 2015.). Small number of small and
medium sized enterprise produces irregular amount of growth. SMEs are contributing in health
and value of UK’s economy.
Society: Small businesses impacts on society. They have become a social movement. Due
to increase of entrepreneurs, small business and technology, home working is becoming more
popular. In the first quarter of 2014, there were 4.2 Million home workers in UK. With the help
of it, small business increases employment and income.
Location: Small medium sized enterprise and entrepreneurs are finding and expanding
their business into new countries by online selling as well as marketing of goods and services.
Globalization impacts on small businesses. They are creating more opportunities by adopting 3D
printing technologies for allowing their own specialised manufacturing at low costs and high
attention in UK.
The federation of small businesses has long believed that these small firms holds key to
growth in UK. Small and micro businesses are entering into large markets SMEs are creating
opportunities and developing innovations regarding employment in UK. There are 5.5 Million
private sector businesses and 22% turnover of micro firms in UK. They make up 20.4% of gross
value added over fifth of UK’s economy. Small business is to make connection with
international festival for business. It will also raise direct engagement with growing international
markets. Government uses tax breaks to encourage employment, research and development.
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They are offering free advice, support and networking opportunities. Government policy is
increasing productivity in UK economy (Moroni, Arruda and Araujo, 2015).
From the above graph small businesses are 99.3%, employment is 48% and turnover is
33% in 2017 in UK. The UK’s economy has productivity problems. Therefore, small and micro
business are more essential for economy. Small and medium sized businesses are playing key
role in boosting productivity by 47% of revenue contributing in UK’s economy. The growth of
small businesses impacts on overall productivity on UK’s economy. Innovation and expansion to
international markets are fundamental cause in increasing fruitfulness among UK’s SMEs. UK
government and banks are giving support to small businesses for expansion and growth.
Small medium sized business is giving possibilities to accomplish financial
independence, advance invention and employment opportunities. SMEs generates wide variety
of new employment chances. They are an engine of growth that allows both citizens and
government for growing by acquiring goods and services (SME's XL contribution to the UK
economy, 2015). They are driving wealth creation in UK’s economy. Impact of small business on
different level of UK economy such as:
Local Level: Small business are contributed in local economies such as community
identify, involvement and environmental benefits.
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Illustration 1: Share of enterprise in the UK private sector
(Source: Businesses Statistics, 2017)

Regional Level: SMEs are imparting regional development, because small businesses
uses local resources and their profits remains in region. Impact of small business positively
effects on competitiveness at regional level (Kramer, 2017).
National Level: Small businesses are added in national level for generating employment
and value added contributions.
International Level: SMEs are operating efficiently and assessing international markets.
4. Value of small and start-ups businesses to growth of social economy
Value of small businesses:
Small businesses are supporting UK’s economy. They are widely contributing in driving
development, beginning new marketplace as well as creating jobs. They are creating innovation
as well as encouraging new thoughts for facing challenges. Tiny enterprises are contributing 47%
of revenues for expanding and growth of economy. SMEs are contributing in terms of job
creation. They play important role in introducing new markets and contributing into growth.
SMEs faces many challenges (Viinikainen and et.al., 2017).
Education: Small businesses creating opportunities for providing education and
employment. In terms of employment, SMEs is playing critical role in driving economic growth.
They are contributing in innovation in products and process for raising growth of social
economy.
Income: Small business helps in making life easier and creating advancement. They are
generating significant proportion of UK’s annual turnover (Moroni, Arruda and Araujo, 2015).
SMEs provides composed annual turnover of 1.8 Trillion that is 47% of all private sector
turnover rate in UK.
Employment: Small and medium sized businesses provides size and scope of jobs which
are the biggest impact on UK’s economy. They give 15.6 Million occupations that is 60% of all
private sector job (Yook and Jeon, 2014).
Profits: With the help of profits, small business are creating innovation and employment
in UK economy. They are generating revenues and contributing in social economy. Through
advanced technology, SMEs are increasing profits and income of people in society.
Balance of payments: BOP is important feature to UK economy. It means that amount
spent by consumers and firms on imported products and services. 54% of SMEs sells products or
services abroad with manufacturing sector leading that charge exporting of 68%.
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Important start-ups to growth of social economy:
Start-ups businesses are also essential of UK economy. There are many ways start-ups is
important to growth of social economy.
Income: Start-ups helps in making life easier and creating progression. Benefits of start-
ups upside is affecting human progress (Kramer, 2017). They are creating possibilities of skill
based communities allow people to make extra cash. Start-ups business make both talented and
happy workforce in any part of the world (5 ways that start-ups are important to the UK
economy, 2018).
Education: Education of key element is rising with population. A major element of
civilized and progressive society is more paths for education. With the help of education, small
business is giving support to society. They are developing innovation for providing better
education of children, because of today's world it is most important factor of social group.
Quality of life: Start-ups businesses contributes in social economy growth because of
raising up quality of life. They are helping community to succeed. It controls financial future and
gives comfortable life. Start-ups firms are increasing income and rising standard of living in
society.
Population increase: Start-ups make foster stable economy which allows for
achievement of items higher on hierarchy of needs. Larger population leads to greater diversity
accordingly advanced innovation(Cardon, Post and Forster, 2017).
5. Entrepreneur Skills, characteristic and traits
Entrepreneurs like Joe Woods and Mark Zuckerberg have become most successful
business entrepreneur because they possess characteristics and qualities of a successful
enterpriser. Mark Zuckerberg is founder of Facebook and Joe Woods has become the university's
most successful entrepreneur. Following are some traits and skills of being a successful
entrepreneur: Creative Thinking: Entrepreneurs are known for their creative thinking such as thought
out of the box. It can help a capable business man to reach at a greater level of success.
The skills of creativity or creative thinking is required in world of business so that an
organisation can achieve continuous growth and success through innovative ideas
(Shirokova, Osiyevskyy and Bogatyreva, 2016).
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 Communication Skills: An entrepreneur has to be an effective communicator. He is
required to communicate on daily basis with his employees, investors, customers, peers,
creditors and mentors. The communication can be either oral or written but should be
clearly understandable by all people in organisation. Focus: An entrepreneur is required to have an ability to focus so that goals can easily be
achieved even if the targets are tough (7 Top Skills Every Entrepreneurs, 2018). After
vision have been set next step is achieved to goal and focus is required for achieving
various goals.
 Negotiation Skills: Entrepreneurs are required to have proper negotiation skills because
everything in business is based on it. Entrepreneur is required to deal with customers and
suppliers for making the deals. Even sometimes an entrepreneur is required to negotiate
with community as well (Audretsch and et.al., 2017).
Criteria Entrepreneur Business Managers
Definition Entrepreneur is a person who
creates an enterprise by taking
risks with a motive to earn
profits.
Business Manager is a person
who is responsible for
controlling and administering
the organisation.
Risk taking capabilities They are risk takers and have
ability to take risks as being
owner of enterprise
(Obschonka and Hahn, 2018).
They are risk averse and also
liable for threat as being an
employee.
Approaches followed Entrepreneur's approach
towards tasks is informal.
Business Manager's approach
to task is formal.
Innovative Entrepreneur maintains
creativity and innovation.
Business Manager has to take
permissions from higher
authority before making any
changes (Kassean and et.al.,
2015).
Decision making They have right to take
decisions as owner of
Do not take decisions and
follows the instructions given
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enterprise. by senior authority.
Mark Zuckerberg has personality to motivate people and implement innovative ideas.
These skills of person have supported in designing new application and getting success. Both
these abilities have helped in motivating people even after facing troubles. He was having risk
taking skill, this has helped in implementing new design and presenting it to mass audience.
Joe Woods is a successful entrepreneur of IT company and has the decision making
ability that helped him a lot in negotiating with people working with him in his organisation. He
has complete confidence along with required skills and abilities.
6. Examine background and experience can hinder and foster entrepreneurship
Background of Jo Wood:
Josephine Wood is an English model, television celebrity as well as enterpriser. She is
wife of Ronnie Wood who is a guitarist. Jo attended him on a regular basis on tour looking at
after his wardrobe and diet. Wood is designing variety of wearing apparel for fashion label No
Scruples. She undergone a sincere sickness in 1989, so that Jo began to move a strict organic
lifestyle. Jo launched own range of organic fragrances and body care products (Audretsch and
et.al., 2017).
She creates day-to-day occurrence on TV shows which have enclosed purely come
performing arts, Britain's got more Talent etc. Jo's background is very weak and there is no
support for work. Therefore, Wood's background reflects on foster entrepreneurship. On the
basis of personality and motivation, she is becoming successful entrepreneur in terms of
television personality. With the help of greater skills and traits, she is facing many challenges for
being TV model.
Experience of Jo Wood:
Wood established her own pop up eating place Mrs Paisley's Lashings with UK eco chef
Arthur Potts Dawson. The restaurant was established in Wood's house with intention to boost
sustainable dining as well as green living. He has also popular food as well as music celebration
at Harvest at Jimmy's which occur in Suffolk every September. She was selected in Grazia
magazines in 2008 as well as won Inspirational Determination Awards ion 2010. Jo Wood
appeared on the television entertainment personage Master chef where she was second contestant
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to be eliminated. Wood worked as model until she was 22 and was The Sun's Face of 1972. It is
a tabloid newspaper in UK.
Wood composes article array in Fabulous & Natural Health magazine as well as she has
written book. With the help of creativity and motivation, she has become successful entrepreneur
as television personality. She has faced many problems and issues about their personal life.
Through mind set and personality, Jo is becoming a famous television personality. With the help
of innovative ideas, she has established her own scope of organic fragrance, bath as well as body
care goods, Jo Wood Organics. She has won various awards involving being extremely fixed in
Marie Claire Prix d'Excellence de la Beaute Awards. She is also on deciding panel for Soil
Association Organic Food Awards & Observer Ethical Awards.
Background of Mark Zuckerberg:
Mark Zuckerberg is an American profession businessperson as well as philanthropist. He
is celebrated for co-founding and starring Facebook as its chairman and chief executive officer.
Mark began utilizing computers as well as writing software in middle school. His father taught
him Atari BASIC programming. In college years, He had achieved honour as programming
prodigy. He also wrote program that Mark named Course Match in which prevented users to
make class choice decision supported choices of some other students. It also helps them form
study groups (Kassean and et.al., 2015).
His father's dental practices were operated from their home, so that he built software
programs called as ZuckNet that allows communicating house and dental office computers. An
earlier inspiration for Facebook may have come from Phillips Exeter Academy. Zuckerberg's
experience and his background helped in becoming a successful entrepreneur. His father is
giving full support and teaching them. He created innovation for increasing Facebook's positions
in whole world. With the help of motivation and mind-set, He is focusing on developing
different software’s. Mark's background is good and supportive, so that he is becoming
successful entrepreneur.
Experiences of Mark Zuckerberg:
Mark's official launch of Facebook which is a social media platform. He had developed a
reputation as software developer on university campus. Mark has great experience about
software development, Facebook Platform, Internet.org, etc. He announced social advertising
system that enabled people to share information with their Facebook friends based on their
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browsing activities. He launched Internet.org project in which he explained that primary aim of
initiative is to provide internet access. It will also create new jobs and open up new markets.
With the help of greater experiences, Zuckerberg created an administration group at
Facebook and was centred on increasing good things and broad performance. He stayed
Moscow to impact social media invention in Russia as well as to rise Facebook's position in
Russian market. Through innovative and creative ideas, he is developing different platforms
which are useful for people. Different media sources represented connections among Facebook's
direction on mobile technology as well as Mark's language assertion that mobile stand for future
of firm.
CONCLUSION
This report summarised different typologies of entrepreneurship which relates to venture.
It can be concluded that there are several similarities and differences between various
entrepreneurial ventures. It discussed that impact of small business and its contribution to growth
of social economy. Furthermore, report completed that skills and traits of two successful
entrepreneurs being personality which reflects entrepreneurial motivation and mind-set. It also
explained factors that hinder and foster entrepreneurship reflects by background and experience.
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