Entrepreneurship and Small Business Management

This study material provides information on different entrepreneurial ventures and typologies, similarities and differences between these ventures, impact of micro and small business in the economy, importance of small business to social economy, traits and skills of entrepreneurs, and aspects of the entrepreneurial personality. It also includes case studies on Richard Branson and J.K. Rowling.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Contents
LO 1.................................................................................................................................................3
P 1 Different entrepreneurial ventures and typologies of it.........................................................3
P 2 Similarities and differences between these ventures.............................................................4
LO 2.................................................................................................................................................6
P 3 Impact of micro and small business in the economy.............................................................6
P 4 Importance of small business to social economy..................................................................7
LO 3.................................................................................................................................................8
P 5 Traits and skills of entrepreneur............................................................................................8
P 6 Aspects of the entrepreneurial personality that reflects the mindset and motivation............9
LO 4...............................................................................................................................................10
P 7 Experience and background of entrepreneur.......................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship and Small Business Management. Every large company started out as a small
business, led by an entrepreneur. As our economy becomes more volatile, having the skills and
knowledge to start a new business may mean the difference between prosperity and poverty. This
report includes details such as Different entrepreneurial ventures and typologies of it. Similarities
and differences between these ventures. Impact of micro and small business in the economy.
Importance of small business to social economy. Traits and skills of entrepreneur. Aspects of the
entrepreneurial personality that reflects the mindset and motivation and Experience and
background of entrepreneur (He, Lu and Qian, 2019).
LO 1
P 1 Different entrepreneurial ventures and typologies of it
Entrepreneurship is considered as the process of managing and working on a business for
its development which is newly started. So by grasping more opportunities that are viable and
taking risk they will be able to serve. Different ventures
Small business-
This type of businesses are started on a small scale and they operates with few
employees. The main motive of the company is to earn profits that are substantial for them so
that they can retain their business in the market.
Large business ventures-
These businesses maintains their cycle of operations on a big scale. These companies
focus on improving the quality of products so that they can increase and provide more
satisfaction to their consumers. They focus on strategies that helps them to achieve advantage
over other companies in the market.
Social entrepreneurship-

The purpose of these firms is different as they do not serve to earn profit their main
motive is to work for fulfilling the needs of underprivileged people and their community. They
work for increasing social welfare. The team of people working in this field is less (Bettinelli and
et.al., 2017).
Public ventures-
These are the sector that serves under the guidelines of government and decision for the
company is taken by board of directors or CEO of the company.
Private ventures-
These businesses serve for one purpose that is to increase their profits. Owner of the
company is the one who takes decision for the company (Adeyeye, Ikupolati and Ndibe, 2018).
Typologies
Different venture implement different and suitable typology on their business
Lifestyle typology is implemented by the businesses that are operating on a small scale
where owner is the one who looks after the entire business. It is the dedication of entrepreneur
towards his work which helps them to attain success in the market. If they are not able to
generate profit then they won’t be able to survive in the market.
Scalable typology is another form of the typology that is used by businesses that are
operating on a large scale. This typology focuses more on the area of bringing creativity and
innovation.
P 2 Similarities and differences between these ventures
All these ventures have their own pattern and qualities which are sustained by the market.
Basis Public Private Small Large Social
Objectives There is a
motive of
these firms
and that is to
The motive of
these firms is
to increase the
scale of their
They earn
low amount
of profit
because they
Increase the
level of
customer
satisfaction
Work for the
welfare of
people and to
fulfill the

work for the
society and the
goods that are
offered by
them are
offered at low
prices so that
that can be
afforded by
everyone.
operations on
a global level
and earn high
level of
profits.
maintain
their
operations at
a small scale.
so that they
can serve
more people
and earn
more.
needs of the
society.
Financial
source
The origin of
finance for
these
companies is
associated
with the help
of government
and the money
they take in
the form of
taxes.
Bank and
financial
institutions are
the ones that
helps the
company.
These firms
takes the
help of their
friends and
families in
order to
collect the
fund (Licha
and Brem,
2018).
Retained
earnings and
investors are
the source of
finance for
these
companies.
Donations
made by
businessmen
or companies
are the
source of
finance for
them.
Stakeholders Suppliers and
shareholders.
Clients,
competitor,
manager,
employees
Managers
owner and
employees
Investors,
shareholders,
suppliers,
customers
People such
as volunteers
and donators
are their
stakeholders.
Organizational
Structure
No direct
coordination
because the
structure is tall
which affects
Flat structure
and the reason
behind it is
that it allows
to interact the
Flat structure Structure is
functional
There is no
fixed or
specific
structure for
it.

the
coordination
between top
and lower
level of
management
employees
directly with
the top level of
management.
Similarities-
The similarity between all the different sectors of business is that all of them need funds
to maintain their operations. If the funds are not raised by them or they fail to do it then they will
meet failure as they won’t be able to carry their day to day operations. Operations maintained by
the business comply risk irrespective of their nature. They face competition from different
companies that are operating in the same sector. The level of competition affects the varying of
profit. All of these are affected with the micro and macro analysis of the environment as it is
necessary for them to serve under their guidelines.
LO 2
P 3 Impact of micro and small business in the economy
If the economy of the country has observed a high level of witness then companies
operating on a small scale will face problems in maintaining their operations as people will
reduce their expenses because of the less flow of cash in their hands. Mostly businesses that are
operating in the line of export and import will suffer in a huge way as they require flow of cash
to maintain their dealings. These business make a hefty amount of contribution to the economy
of the country. But due to the recent situations such as Brexit and Covid-19 the economic
position of the country is affected. Economist assesses the rate of their earnings by the turnover
they make. This tells that how much contribution has made by the businesses operating in this
sector so that they can assess the rate of growth by taking out their previous results. it has been
assessed that this scale of business is contributing more in the economy as compared to the
business that are maintaining their operations on large scale. Other than this even in the area of

employment they are providing it more as compared to big companies. Due to this factor they
were successful in gaining the support in terms of investment from the government for the sector
of R & D so that they can look out for more new areas which have scope and areas that are not
tapped by their competitors. For their performance which is setting a benchmark are getting
recognized by the government of the country which will motivate them to achieve more. The
investments made in the sector of R & D is in the area of technology so that more innovation can
be brought by them into the market in order to improve the condition of the economy (Randolph,
Li and Daspit, 2017). Other than these companies operating on a small or micro level has
brought new and advanced level of innovative ideas into the market which is increasing the level
of convenience for customers and improving the aspects of market. Due to this they are getting
the assistance of government and that has helped them to improve the level of infrastructure of
this sector.
P 4 Importance of small business to social economy
Creating employment-
It has been observed that this sector of business which deals on a small scale was more
helpful in terms of generating employment. They hire people on the basis of their set of skills so
that they work with interest and help them to beat the competition of the business.
Local improvement-
The operations that are run by businesses that are micro or small has been able to achieve
the path to prosperities in the economy they deal in. They maintain their operation in
coordination with the competitor of the same community so that no one has to face losses and
they are able to take the benefit of rotation of money. It is necessary that they interact and
promote their goods on campaign so that they are able to serve on the basis of needs and wants
of people.
Changes in lifestyle-
Due to high level of employment which has been possible by the small sector business
they are able to buy new and decent things for themselves which is improving their standard of
living and their pattern of consumption (Millsteed, Redmond and Walker, 2016).

Interdependence and Autonomy-
These businesses which are operating on a small scale needs to provide them things that
are required in the neighborhood. This way they will be able to provide something different from
the companies that are operating on a large scale. Both of the sector needs to maintain the
operations under the guidelines that are imposed by law.
LO 3
P 5 Traits and skills of entrepreneur
Traits and skills of Richard Branson
Traits-
Creativity-
Entrepreneurs such as Richard Branson have a creative mind. This means that he was
keen to find out new ways and methods for introducing something new or completing the task in
a different yet efficient manner. Other than this they have the quality to help their employees so
that they can maintain the flow of work and increase the productivity and cope up with the level
that is same to the demand of the market. The reason behind the success of Richard Branson is
considered to be his creative mind and his decision making. One of his successful investments is
America’s got talent (Botha, Carruthers and Venter, 2019).
Skills-
Vision-
Entrepreneurs is the one who sets the vision for the company and they are the ones who
made the strategies in order to work towards it. For instance vision of Richard Branson guided
the employees to achieve the goals and they were successful in complying with the diversifying
needs of the market. It is because of his vision that he is able to make investments in the right
field.
Traits and Skills of J.K. Rowling

Traits
Taking risk-
Entrepreneurs takes decision which involves high level of risk but that does not set them
behind into moving forward with it. J.K. Rowling had no experience but she had confidence in
her story that helped her to create the record for most successful novel (Vannebo and Grande,
2018).
Skills-
Being flexible-
It is in the nature of the entrepreneurs to be flexible so that they can make the necessary
changes as per the needs and wants of the situation. J.K. Rowling was flexible in sharing her
queries with her subordinates and through that she were able to make a decision for the end of
her book.
P 6 Aspects of the entrepreneurial personality that reflects the mindset and motivation
The model of 5 trait helps to assess and understand the thought process of entrepreneurs.
Openness-
This aspect is concerned with the qualities that are possessed by the entrepreneur such as
level of insight, power of assumption and imagination. For example when J.K. Rowling missed
her train in London then she got the idea for her famous book Harry Potter. Entrepreneurs such
as J.K. Rowling possess high qualities of this aspect which helps them to work on new things
and if the trait on the entrepreneur is low then they won’t be able to assess something in a
creative manner.
Conscientiousness-
This aspect is concerned with working with discipline that helps to achieve goals and
control the outcomes of things. It was the behavior of Richard Branson which helped him to be
successful as he was serious for the task and always prepared for the forces that will be required

in order to complete the task. The impulsive behavior of him helped him to work on the counter
measure. This way the chances of failure are reduced by him.
Extraversion-
This aspect has another term and that is extroversion. Some entrepreneurs have some
qualities such as being a philanthropist which is present in the case of J.K. Rowling as she
donated half of her income to charity which was a huge amount as she tuned millionaire from
billionaire to that. From the observation of her interviews it has been came to knowledge that she
is an extrovert and does not hide things about her past (Mavi and Afshar, 2017).
Agreeableness-
This trait states that agreeing with someone else is important and necessary. For instance
J.K. Rowling was not able to finish her book and she took the help of her subordinates and
agreed on their suggestions. Apart from it Richard Branson also agrees on this aspect as he
consults with many other entrepreneurs before coming on to a conclusion so that decision taken
is calculated and its outcome can be predicted.
Neuroticism-
This trait is concerned with the mental position of the entrepreneur. It determines whether
the entrepreneur is sad or happy with the outcome of the situation. Entrepreneurs who are high
on this trait goes through a lot from these issues and those who are low on this trait are stable and
can easily deal with the emotions. J.K. Rowling was low on this trait which is the reason why she
was able to control her emotions and overcome the depressing phase of her life.
LO 4
P 7 Experience and background of entrepreneur
Richard Branson-
In 1970 Virgin was introduced and founded by Richard Branson and when he gained
success with time he invested in many different companies and now currently he has invested in

around more than 400 companies. He left his school at the age of 16 then he started the business
of mail order record business.
At the time of his work he met many different entrepreneurs who had accomplished their
goals in their line of dealings and from them he learned that everyone has their own way of
dealing with things (Gast and et.al., 2019).
J.K. Rowling-
She is known for her experience in different line of works as she is an author, producer,
philanthropist. Success of the Harry Potter series written by her is the reason of her fame. For
that she has been acknowledged and received many awards. Some of the movies which are based
on her books are produced by her. Her past was miserable and nothing was provided to her
which can take the credit of her success. She did it all on her own.
Both the entrepreneurs did not come from a rich or educated family and they had no support such
as inheritance through which they increased their net worth. It was their talent, hard work, skills
and knowledge which overcame their period of struggle and helped them became successful in
their respective fields.
CONCLUSION
From the above studies it has been concluded that entrepreneurs are the ones who sets the vision
of the company and they are the ones who make the strategies to achieve it so that company can
reach their goals and objectives and they can get their fame. It is not necessary that in order to be
successful one must need to come from a rich family as both Richard Branson and J.K. Rowling
was not from rich family. Analysis of this report has assessed that small business contribute more
than large companies which is why they are getting assistance from government.

REFERENCES
Books and Journal
Gast, J., and et.al., 2019. Coopetition of small-and medium-sized family enterprises: insights
from an IT business network. International Journal of Entrepreneurship and Small
Business, 38(1-2), pp.78-101.
Mavi, R.K. and Afshar, Z.A., 2017. The relationships between social capital and organisational
entrepreneurship at small and medium enterprises of Zanjan province. International Journal
of Business Innovation and Research, 12(4), pp.449-464.
Vannebo, B.I. and Grande, J., 2018. Social entrepreneurship and embedded ties-a comparative
case study of social entrepreneurship in Norway. International Journal of Entrepreneurship
and Small Business, 33(3), pp.417-448.
Millsteed, J., Redmond, J. and Walker, E.A., 2016. Small business ownership for occupational
therapists: Key factors for success. International Journal of Entrepreneurship and Small
Business, 27(4), pp.425-440.
Randolph, R.V., Li, Z. and Daspit, J.J., 2017. Toward a typology of family firm corporate
entrepreneurship. Journal of Small Business Management, 55(4), pp.530-546.
Adeyeye, M., Ikupolati, A. and Ndibe, L., 2018, March. An Empirical Study on the disparity
between small businesses and entrepreneurship in Developing Economies. In ICIE 2018 6th
International Conference on Innovation and Entrepreneurship: ICIE 2018 (p. 8). Academic
Conferences and publishing limited.

Licha, J. and Brem, A., 2018. Entrepreneurship education in Europe-insights from Germany and
Denmark. International Journal of Entrepreneurship and Small Business, 33(1), pp.1-25.
He, C., Lu, J. and Qian, H., 2019. Entrepreneurship in China. Small Business Economics, 52(3),
pp.563-572.
Botha, M., Carruthers, T.J. and Venter, M.W., 2019. The relationship between entrepreneurial
competencies and the recurring entrepreneurial intention and action of existing
entrepreneurs. The Southern African Journal of Entrepreneurship and Small Business
Management, 11(1), pp.1-15.
Bettinelli, C., and et.al., 2017. Researching entrepreneurship in family firms. Journal of Small
Business Management, 55(4), pp.506-529.