Entrepreneurship and Small Business Management

This document discusses the typologies of entrepreneurship, differentiation and similarities among entrepreneurial ventures, evaluation of small and micro level business on economy, and the importance of SME towards social economy growth.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Typologies of entrepreneurship relationship with entrepreneurial ventures .........................1
Differentiation and similarities among entrepreneurial ventures ..........................................4
TASK 2............................................................................................................................................6
Evaluation of small as well as micro level business on economy by statistics and applicable
data.........................................................................................................................................6
SME importance towards social economy growth ................................................................7
TASK 3............................................................................................................................................8
Successful entrepreneurs traits, skills and characteristics......................................................8
Different types of entrepreneurial personality........................................................................9
TASK 4..........................................................................................................................................10
Experience and Background that foster and hinder entrepreneurship ................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is an activity which is related to setting up businesses while undertaking
financial risk in order to acquire profitability at large scale. Entrepreneur is an individual who
starts a fresh venture by undertaking risk factors in order to earn more money (Bridge and
O'Neill, 2012). They are strong pillars of a country economy as with their entrepreneurial
ventures they offer numerous job opportunities to individuals that with the help of which country
cab significantly able to increase their GDP and income level of individuals. Thus, it is the core
responsibility of government to provide maximum support to entrepreneurial ventures as to
strengthen country economic stability. Present report include discussion on numerous form of
entrepreneurial ventures and entrepreneurship typologies. Further in this report difference and
similarities among entrepreneurial venture is being defined. Impact of micro and small business
on economy is also covered in this report with the importance of SME to social economy growth.
Lastly, report covers experience and background which is required by an entrepreneur to become
a successful entrepreneur.
TASK 1
Typologies of entrepreneurship relationship with entrepreneurial ventures
Entrepreneurship significantly offer economic advancements to country with their
contribution in employment sector and social development. Entrepreneur are those who initiate
new business with innovative idea and offer unique services and products to customers while
taking risk. With their effective contribution they offer significant growth in a country economy
that further increase nation global image. Main motive of an entrepreneur is to effectively
accomplish their entrepreneurial goal and objectives by offering unique and innovative services
and products to customers.
Differentiation and similarities among entrepreneurial ventures
Number of entrepreneurs operate their business within social, small and large segment.
As to offer satisfactory services to customers and further acquire large market holding by
providing unique and innovative products and services. There are some certain set of similarities
and difference among entrepreneurial ventures in being defined below:
Similarities between small, large, scalable and social entrepreneurs
 The main motive of all the entrepreneurs is to grow and develop their businesses.
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 Their main motive is to develop a business activity that leads to profit maximization of
the companies.
 With a view to compete in the market and gain competitive advantage they take the
benefit of innovative and new ideas and apply same on the functions of organization.
 Entrepreneur performing their business with an aim to satisfy the needs and demands of
customers in best effective way so that customer loyalty has been generated.
 They are mainly focus on maintaining sustainable business model so that organization
facilities will be provided to the customers in an effective and efficient way.
Difference between small, large, scalable and social entrepreneurs
Basis Small size Large size Social Scalable
Meaning Small size
entrepreneurs
functions at small
level.
They mainly
focus on location
for business to
operate.
They run business
for the benefit of
the societies.
Entrepreneurs
operates business
at scale level that
denotes fine
location and any
fine area.
Objects The main
objective of small
size entrepreneur
is to earn profit.
Their main
objective is to
expand its
operation in other
locations also.
The main objective
of these kind of
entrepreneur is the
welfare of the
society and
providing them
quality products
and services.
Profit
maximization is
the main motive of
scalable
entrepreneurs.
Capital Small size
entrepreneurs
need small
amount of capital
They require high
investment to set
the enterprise or
to advance their
They arrange
funds from the
society for their
They require less
investment as
compare to other
size of
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to perform its
operations.
activities. welfare. entrepreneurs.
Entrepreneurs
from scalable
enterprises mainly
attracts capitals
from financial
investors (The 4
Types of
Entrepreneurship.
2019).
This is being identified that there are mainly three types of business entities operate their
functions as to satisfy customers in best effective manner. Public, private and social are the
sectors mainly conduct their functioning with having different set of purpose and objectives.
Public Sector: In this sectors organisation those who operate their functions are duly
owned as well as managed by government. These organisation offer their services with an aim to
satisfy customers in well defined manner. Organisations within this only operate their services to
provide consumer satisfaction rather than to earn large base of profitability.
Private Sector: In this, companies mainly conduct their functions to earn profitability at
great extent while ensuring consumer satisfaction. In addition to this, each and every set of
activities and functions are duly controlled, operated and managed by private individuals or
group of individuals. In this there is rare or no interference from government entities. These
organisation mainly offer their services as to gain large base of profitability while ensuring long
term sustainable growth.
Social Sector: Companies within this sector mainly conduct their functioning as to
provide welfare to society and communities. These organisation only conduct their functions to
provide satisfaction to customers rather than to earn profitability at great extent.
Similarities of a public, private and social sector
There are three types of business sector those who operate their activities and functions in
marketplace as to effectively satisfy customers by fulfilling their needs and demand as per
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according to their perception. Mentioned below there are some certain for of similarities among
public, private and social sector is being depicted:
 It has been identified that organisations within public, social and private sector duly
provide significant growth opportunities to every person those who operate their roles
within these sector.
 In addition to this, one of the most common similarity among all these sector is that
companies within this sector mainly undertake their roles related to making increase in
economic prospects of company while ensuring satisfaction of customers in best effective
manner.
Differences between a public, private and social sector.
Basis of comparison Public Sector Private Sector Social Sector
Definition Public sector
organisations are those
entities those are duly
Private sector are
mainly owned,
managed and
These organisations
conduct their
operations with an
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owned, managed and
controlled by
government firms.
These organisations
mainly aim towards
satisfying need of
customers rather than
to earn high
profitability.
controlled by
individual or group of
individual. The main
aim that has been hold
by these form of
organisation is to
effectively increase
their growth
opportunities and
profitability.
aim to effectively
satisfy needs and
demand of customers
along with offering
satisfactory services to
community in well
defined manner.
Objectives Major objectives that
has been hold by these
organisations in these
sector is to provide
immense amount of
satisfaction to
customers and increase
economic growth of
country.
Main aim for which
these organisation
conduct their
functioning is related
to make significant
increase in
profitability and
growth opportunities
for entity while
satisfying needs of
customers in well
defined manner.
Significant aim that
has been hold by
organisations within
this sector is to satisfy
need and demand of
customers and society
in best effective
manner.
Owner Major share intake
within public sector
organisation is of
government entities,
firms and institutions.
Private sector
organisations are
mainly undertake their
operations as to ensure
large base of
profitability. Along
with this, they are
further managed by
These organisations
are duly owned,
managed and
controlled by
government
institutions, group of
individuals or
individual.
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private group of
individuals.
Benefits of working Individuals those who
undertake their roles
within these
organisational sector
have job security,
allowances and
additional benefits
after retirements.
Individuals by
performing their
operation in private
sector gain high
incentives, good salary
and more.
Within this
organisational sector
individual receive Self
satisfaction.
Similarities in between of small medium and micro businesses
There are mainly three different form of business those who operate their functions with
an aim to satisfy need, demand and preferences of customers in best effective manner.
Organisations like small, medium and micro level conduct their functioning as to effectively
satisfy customers need in best effective manner. Mentioned below there are some certain
similarities among small, medium and micro business in being depicted:
 All these group of business organisation perform their roles, responsibilities and
functions as to significantly increase economic growth of country in best effective
manner. In addition to this, these organisations significantly aim towards making increase
in living standards of individuals in best effective manner.
 In addition to this, all these organisation significantly generate large base of employment
opportunities that not only aim to increase nation economic growth but it also aim
towards making significant enhancement in individuals living standards.
Differences in between of small medium and micro businesses
Basis of comparison Small Medium Micro
Investment Organisation those
who offer their
services in small scale
In this organisational
segment entities make
investment of the
In this organisational
sector entity mainly
made formative
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industry make
formative investment
about 10 lakh but not
more than 2 cr.
estimated sum of more
than 2 cr but not more
than 5 cr.
investment in
equipments of not
more than 10 lakh.
Employees In this sector
organisation employee
10 employees. Along
with this, in
manufacturing unit of
entity there are 50
employees.
These organisation
employee 250 or less
than individuals within
their workplace.
These organisation
mainly conduct their
operations with having
less than 10 workers.
In addition to this they
invest very small
amount of capital.
Difference between the Corporate Sector and Public Sector
Corporate Sector Public Sector
Their main motive is to increase high amount
of profitability.
They aim towards providing effective facilities
to offer welfare to public.
In this ownership is with companies and
private individuals.
Ownership relies in the hand of government.
TASK 2
Evaluation of small as well as micro level business on economy by statistics and applicable data
In micro and small business enterprises who engage in the business process to deliver
products and services to customers in marketplace. In this there are not more than 50 employees
and they have small size of organisational working structure (Rauch and Hulsink, 2015). It has
been further identified that these organisations are mainly operated by sole proprietors.
Organisations within small and micro sector offer effective amount of job opportunities to local
and individuals with the help of which there is significant increase in per individual per capita
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income. With the help of these organisations a country can effectively able to decrease their
poverty ratio. Thus, it is essential for government to provide support to great extent to
entrepreneurs within small and micro sector as to effectively increase economic growth of
country. Entrepreneurs within this organisational segment operate their functions with successful
business ideas in order to improve lifestyle of individuals. In addition with this, it has been
identified that these entrepreneurs successfully strive towards economic prosperity as they are
well aware of the fact that if country grows then there is automatically rise in developing
opportunities. These entrepreneur undertake use of new ideas as to effectively offer services and
products to customers as to satisfy them with best.
Source: Impact on small businesses, 2017
This has been further identified that Brexit case scenario impacts on functoning on small
and mirco level business organisations at great extent which is th main reason for economic slow
down. Thus, in order to overcome this situation government is required to offer adequate support
to small and mirco level business organisation as they are the major source from where raw
material are provide to large organisations (Burns, 2016). By offering support government of
United Kingdom can enhance job opportunities within country with the help of which they cab
measure significant growth in income level of individuals. United Kingdom measure 14.8%
contribution from small and micro level business organisation. This significantly lead towards
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increase in employment opportunities with the help of which UK can strengthen their global
position at international platform.
Figure 1: Share of enterprises in the UK private sector, 2017
(Source: smallbusiness.co.uk, 2018)
In context small- scale business it is being determined that estimated that 650000 have
started their business in UK that effectively contibutes towards overall development of nation.
These business effectively helps UK to increase living standards of individuals in best effective
manner. As per the data, it has been signified that Birmingham Boasting is being setting new
records with holding 17000 kore than fresh entrepreneurs in SMEs. Further it has been identified,
Glsgow and leeds is being setting new records with having 7,845, 7,645 and 9416 thousand
entrepreneur on respective manner.
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SME importance towards social economy growth
It has been identified that small and medium sized enterprises effectively contribute their
contribution in economic growth of country (Kirzner, I. M., 2015). Further UK growth index
mainly includes significant contribution of small and micro level business organisations. UK
have different types of small scale business and ventures that further aid nation to strengthen
their economic stability year by year. Certain contibution by sall scale organisation in UK
growth is being depicted below:
Standard of living:
SME's effectively upgrade individuals living standards by offering them large base of
employment opportunities (Fayolle, Verzat and Wapshott, 2016). These organisations undertake
innovation and offer qualitative services to customers this encourage people to work within
nation rather than to work somewhere else. By offering these opportunities small business
organisations can effectively able to ensure strong economic growth of country.
Innovation:
Entrepreneurs of small scale business are tend to be more innovative as they always seeks
to gain more competitive advancements by offering qualitative services to customers. With the
help of this they ensure more economic growth of country.
Low overhead:
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As small scale business organisations effectively operate their business at small scale that
automatically results in decline in organisation overheads amount. As there is low operational
cost such as cost of rent, heating and lightning. This simultaneously lead towards decrease in
production cost while significant increase in profitability. With the increase in amount of
profitability UK will measure a economic boost.
Provision of employment to local people:
Small scale organisations effectively offer number of employment opportunities to
individuals that not only enhance living standard but also increase individuals income level
through which UK measure significant growth in economic growth of country.
TASK 3
Successful entrepreneurs traits, skills and characteristics
Characteristics, traits and skills are the elements defining the abilities and capabilities of
an entrepreneur. These should be available in required form in order to accomplish
organisational goals as well as targets. Without these, it is impossible to complete the tasks and
achieve desired results. Therefore, characteristics, skills as well as traits of entrepreneurs have
been presented below:
 Characteristics
 Belief: It is the most significant characteristics present in successful entrepreneurs which
is about beliefs that one have regarding the abilities, skills and performance. It helps in
encouraging and motivating people to have all the adverse perceptions removed. These
are affected by number of factors which should be known in order to detect the most
influential capabilities. In relation to JK Rowling, along with Richard Branson, theye are
the individuals who have huge level of self belief which helps them managing the
contingencies and anxiety. These are dependent on the current conditions prevailing in
the market which can force the individual to make changes in their beliefs.
 Traits
 Creativity: It is about the innovation one use in the existing patterns in order to achieve
the tasks and activities. This helps in bringing new ideas to contribute to the success of
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the organisation. Also, it investors and other parties to invest in the enterprise. JK
Rowling and Richard Branson are known for their creativity which are included in
carrying the operations for completing the project. Furthermore, JK Rowling's Harry
Potter is a huge success and liked by large number of kids. On the other hand, Richard
has undertaken projects ranging from entertainment to humanitarian activities. There are
many changes take place in the business environment which affect the organisations
therefore, there should be some element of innovation to bring something new for
customers.
 Skills
 Learning Skills: It is one of the important skills which should be there in every
entrepreneur so that new things can be learnt. This leads to enhanced knowledge and
information which can be used in carrying the activities in an effective way. The main
sources from where an entrepreneur can learn are observation, analysis, acquaintances,
seminars, gatherings etc. Also, by having interaction with different people gaining more
knowledge. In the context of JK Rowling and Richard Branson, they have seen their lives
to the extreme and have many experiences which can help them utilise it for the benefits
of their business. Furthermore, mistakes can be corrected with the help of analysis done
on the basis of the knowledge on has.
Different types of entrepreneurial personality
The attribute of a businessperson involve various skills, attribute and characteristics. It
consist various components like motivation, knowledge, belief and self impression and others.
In context of this, it is important to be a successful entrepreneur that they should always
encvouraged and have a positive attitude so that they can deal and work in each situation. To
monitor different personality traits of individual, Ocean Model of personality can be used which
is helpful to analyse the several qualities of entrepreneurs. It is defined as below:
Openness- This factor consist traits like being perceptive and creative or having a wide
range of interest. It is essential for those kind of entrepreneurs who have the will to learn and
collect information and knowledge about new things and concepts or enjoying their new
experiences. With the assistance of it, they can make creation in their business in form of
manufacturing new products and services.
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Conscientiousness- This personality trait include unionised, methodic and exhaustive.
The individuals who have this quality, they are very intended about the vision and not atrophied
it by other actions and operations of the business. They only concentrate on their goal and focus
on accomplishing it by designing and formulating various strategies and plan of actions so that
they can accomplish it in efficacious and appropriate way and in set time period.
Extraversion- It consider the personality traits like talkative, assertive and energetic.
Accordant to this trait, the person who have these all qualities are energetic, assertive and
quickly reactive. With the assistance of all these personality attributes they can easily make
interaction with their workers, employees and target audiences which help in getting their
attention towards the organisation.
Agreeableness- This trait of personality refers to trustworthy, cooperative and coordinate
which must be require to be a successful entrepreneur so that they can gain fresh and creative
thoughts from their employees and workers at the time of determination devising procedure. It
assist in framing a healthy and friendly working environment where all the workers and
employees perform their duties and responsibilities in appropriate and adequate manner. This
favourably influence and affect the extent of morale of them.
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Neuroticism- It consist qualities like being moody and tense which some times known as
emotional stability. It is essential to an entrepreneur so that they can nourish their workers calmly
and appropriately in different situation of the business. With the assistance of this personality
trait, they can adequately understand the feelings of workers and control their emotions like
anger, anxiety and others that did not influence the business of the company unfavourably.
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TASK 4
Experience and Background that foster and hinder entrepreneurship
There are various physical phenomenon and ascertains bring out in the lives of respective
which create a ample impact upon attribute in an optimistic and harmful manner. All these kind
of consequence tends to actuation a power of encouragement as well as motivation within
personnel to accomplish something great in animation. There are two businesspersons, who are
chosen in this report, Richard Branson and JK Rowling. The extent of educational activity and
family inheritance acts as alleviating as well as constraining components for them. It is
mentioned as beneath:
Educational Factor - It is an important factor and play an essential role in the lives of
individuals because g good knowledge and education foster them to accomplish rapid success as
well as improvement. The major aim and objective of education is to make enhancement and
increment in competencies, skills, expertise, knowledge and abilities. So that they can execute or
move forward the actions in incarnate world effectively and efficiently. For an entrepreneur, it
become easy when their have knowledge and competencies regarding a particular field. In
context of JK Rowling, it is identifies that she took an entrance exam to get entry in a notable
college but she was fail somehow to pass the test and get admission for study. In later, she
pursued Bachelor of Art in French language which is beneficial to make improvement in their
knowledge and skill. Further, she work as a researcher which is beneficial to her to assist her in
structuring her life as an successful entrepreneur. There are number of novels coming up which
assist in providing growth and success in career development or improvement. In addition to it,
Richard Branson has a very pathetic inheritance regarding educational activity. At the time of
studying, he was told his principle, that either he will be a millionaire or will be in jail. He get
effective knowledge and education which help him to make an successful entrepreneur. So it can
be analysed that Branson is the most constituted entrepreneur.
Family background and experience- Family background of a person play an crucial
role in framing and structuring the life in effective and worse way. If an individual have
entrepreneurs in his family as family members, friends, convergences, they will either fostered
and hindered by their corporate experiences. For example, if the people communicate they
growth and prosperity of the business then it foster an individual to be a successful entrepreneur
in forthcoming. But they are faced worse and defeat in their business then it hinder the person to
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frame career as an entrepreneur. JK Rowling is observed to be a girl and she wrote down
interesting stories and read out them for her sister. She faced various complications and issues in
her life but she began writing tale and novels. Her occurrence introduce her to all over the world
when she write marketplace starring novel series Harry Potter. This offer more success and
growth to her as a successful entrepreneur. In case of Richard Branson, comes from economic
strong background. His family members motivate him to be a entrepreneur because his parents
were very supportive. His mother was also want to be an entrepreneur so she has aware with the
skills which are essential to be an successful entrepreneur. She want to utilise his competencies
and abilities to be a business person. So she sell of wooden tissue box and waste paper pin. This
foster Branson to be a flourishing businessperson.
CONCLUSION
As per the report, it has been concluded, that entrepreneur plays very essential role in
order to increase the economic system of the company. It has been said that there are various
types of typologies exist within the environment which is mainly operates by effective use of
skills, innovative mindset, creativity and many more. These are the one who highly increase the
economic system as well as standard of living of individuals of the country. Furthermore, it has
clearly been determined that entrepreneurs have different kinds of traits, skills and characteristics
so that they can take risk, bring innovative products, produce high quality services and many
more. This as a result, assist in resolving the issues arise within the society in an effective and
positive manner. Apart from all this, it has also been said that family background, experience,
education level plays very essential role in order to shape the person in a positive as well as
negative manner. All these factors might foster or hinder the overall performance of an
entrepreneur.
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