Entrepreneurship and Small Business Management

This document provides an overview of entrepreneurship and small business management. It covers different types of entrepreneurial ventures, typology of entrepreneurship, similarities and differences between entrepreneurial ventures, interpretation of statistics showing impact of micro and small business on the economy, importance of small businesses and startups in growth of social economy, and characteristics, traits, and skills of successful entrepreneurs.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of entrepreneurial ventures and typology of entrepreneurship................3
P2 Similarities and differences between entrepreneurial ventures.........................................5
TASK 2............................................................................................................................................7
P3 Interpretation of statistics for showing impact of micro and small business on the
economy.................................................................................................................................7
P4 Importance of small businesses and business starts-ups in growth of social economy....9
TASK 3..........................................................................................................................................10
P5 Characteristic, traits and skills of successful entrepreneurs............................................10
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation...11
TASK 4..........................................................................................................................................12
P7 Background and experience can hinder or foster entrepreneurship................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurs are the person that are possessed with capability of inventing and
implementing new ideas which are lying within needs and demands of their surrounded people
and to earn money from these ideas. Business is having their backbone by the name of
entrepreneurs and by help of them high business efficiency can be obtained and immense
opportunities of job can be rendered to population as well. These opportunities are helping
society in covering up their standard of living and to fulfil their own needs in more significant
manner. Small or medium ventures are initiated by entrepreneurs and through which economic
development can be established within country as by providing quality services of product and
rendering employment to huge populations. This report is sum of all the entrepreneurial
ventures and their similarities and dissimilarities from one another along with interpreted data
within macro environment. Last part of this report includes personal reflection within
entrepreneurial motivation by which factors which are hindering or fostering entrepreneurship
can be obtained (Dana, 2018) .
TASK 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurs are the individuals those takes overall responsibility of initiating new
venture and renders products or services to customer in lieu of sum of money. Likewise
entrepreneurial ventures are the arrangement by which earning money is the sole objectives so
as to provide level best comfort to the surrounded population. The major purpose of forming
these ventures is to meet up demands of people and earn profits from them. There are various
types of concepts within entrepreneurship such as serial entrepreneur, intraprenuers and owner
manager (Morris and et.al., 2018) . Serial entrepreneurs are the persons who are continuously
come up with new and innovative ideas in order to initiate a venture. Similarly intraprenuers are
the persons who are involved in acting as entrepreneurs within organisation in order to tackle
people and working. Various types of ventures are initiated within entrepreneurial ventures
which are explained in detail as under:
Entrepreneurial activity

Entrepreneurial ventures are categorised as the procedure which is involved in
generating business activities within various economic activities and to provide innovative
ideas thereon. When these ideas get converted to reality then these product and services are
provided to customer in order to meet their demands and needs. By these ideas various
employment opportunities are obtained which lead to economic growth of the nation in which
business is operated effectively.
Different type of ventures
Small business: Within these ventures high capital is being invested and operations are
handled by employees in order to earn profits in lieu of sum of money. The scopes of these
ventures are quite small as the products are offered within niche market. The net worth of these
ventures are less than or equal to €2 million and overall number of employees are less than 50.
These ventures include Clarasys, electotech limited etc.
Large company: These ventures are having huge business operations and are big in size
and number of employees. These ventures are operating their business at worldwide level and
which business gets their smooth operations. These business operations are helpful in getting
sustainability and high market share. Examples of these ventures are Tesco, Aston martin and
many more. (Elo, 2016)
Social enterprises: These ventures are made in order to provide development to the
society and its welfare. Innovative ideas are rendered within this by which living standard of
local people can be enhanced. These ventures are not operating for earning money rather they
are operating in order to contribute their share in social development. Various trusts and society
development associations are included in this.
Typologies of entrepreneurship
Entrepreneurship ventures are associated with various typologies in which business is
related with different business functions and operations. Major typologies are explained as
under:

Lifestyle Enterprise: These types of enterprises are developed so as to provide
enhancement of living standard to the society and local people which are surrounded. Job
opportunities are given within local people as well.
Growth firms: These ventures are initiated in order to earn high profits. In these
ventures ideas are being obtained and by which needs and demands of the customer are
satisfied in feasible manner.
The venture typologies are incorporated in order to provide ultimate level of lifestyle to
the population and to enhance their standards as well.
P2 Similarities and differences between entrepreneurial ventures
The similarities and difference between the entrepreneurial ventures are as follows:
Differences
Basis Small business Large company Social
entrepreneurship
Scale These are categorised as
those businesses which
operates their business at
small level along with
investment of small
capital as well.
(Kellermanns and et.al.,
2016)
These businesses do
require large amount of
capital and people in order
to provide smooth
business operations to
them. These businesses are
having huge customer
base along with very
effective supply chain
management and customer
support.
These kinds of
ventures are working
within local
periphery and these
are concerned in
fulfilling needs and
demands of local
customers.

Purpose The major objectives of
these ventures are to
generate easiness in
living standard of
population and to provide
comfortable lifestyle to
them as well.
The sole purpose of this
venture is to earn high
profits and to provide
latest trendy services or
products to their customer
within their offerings.
These ventures are
working to satisfy
needs and demands
of local population
and enhance their
living standard
thereon.
Characteristics Government is having
very less intervention in
these ventures so they
require very less capital
for initiation.
These ventures do require
huge capital investment
and government is having
high intervention because
of large scale operations.
These ventures are
highly supported by
government and due
to which full
intervention is
obtained by
government as well.
Similarities
Basis Small business Large business Social enterprise
Meeting the needs These are initiated in
order to provide
assistance to people
and providing them
employment as well.
These ventures are
initiated in order to
satisfy needs and
demands of people at
large.
These are initiated so
as to meet demands
and aims of local
people and meeting
their level of
satisfaction as well.
Formed Society
uplifting
Local people are
obtained with huge
opportunity of
enhancing their desires
and lifestyle as well.
With the help of
innovative ideas huge
people are involved in
employment with
these ventures.
These ventures are
providing those
services and products
by which living
standard of local
people can be
improvised. (Toft-

Kehler, 2018)
TASK 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
The business organisation is having prominent role within economy and societal
development. Micro and small businesses are dealing with high population area and provide
huge contribution to the economy as in enhanced level of infrastructure and money
measurements. These types of business organisations are providing positive impact within
economy and overall society. The major types of ventures are explained as under:
Small: These businesses are employed with less than 50 employees and their net worth
is of £5millions. These businesses are operated at small scale and providing low employment
level by which society is being benefitted. These business ventures are providing
acknowledgement within small geographical area. (Storey, 2016)
Medium: These ventures are having more than 50 employees in their business by and
the maximum number of employee can be 250. The overall revenue of these ventures is more
than £5m but less than £22m. Being medium scale business these ventures are meeting
customer needs in prominent manner and they are having high implications over rendering
employment to appropriate candidate.
Large: These business ventures are employed with more than 250 employees in their
business along with overall revenue of £22m or more. These are operating their business at
global level and employment rate is also high as comparison to other venture due to huge level
business operation.
Impact of SME on economy
Local impact: Micro and macro businesses are rendering direct impact within growth
and employment of local economy. Their product and services are fully dedicated to meeting
needs and demands of customer needs at prominent manner within local customer. These
ventures are involved in recognising needs and demands of local people and by this they are

altering their offerings so as to get ultimate satisfaction of their local population. Within this
context these ventures are helping local people in enhancing their living standards and render
them opportunities to provide jobs and to earn high profits thereon. These ventures use their
assets in gaining economic growth and by this their turnover are increasing in desired manner.
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
Regional impact: Small and medium businesses are providing positive implications to
regional economy as well as they are involved in providing their product and services to
regional people and by this path of enhancement of standard of living is being created. These
are providing high opportunities of jobs options to regional people and eradicating
unemployment from selected areas. By these skills of candidates are improvised due to which
regional income has been increased and positive impact is drawn within increment of regional
growth. As these are creating immense opportunities for regional growth so they have
appropriate turnover in order to experience sustainability as well. (Julien, 2018)
Illustration 1: Role of Start-ups and Small Businesses

National impact: Micro and medium ventures are having direct and positive impact
over national economy and employment as somewhere all the businesses are contributing to the
nation’s economy due to which high growth is seen in national economy. These businesses are
focused on implementing innovations and emerging ideas in venture due to that assets and
overall turnover is being increased in total.
P4 Importance of small businesses and business starts-ups in growth of social economy
High growth can be achieved by country when startups and small scale businesses are
providing ample contribution in order to value GDP and economy in particular way within UK.
In the context of UK high growth is seen within small businesses and other startups as country
is at its development stage and due to this immense opportunity are being adopted by these
businesses. Due to their development stage UK is providing high support to their in house
companies and within that various relaxation is being given to them. Importance of these
ventures in economy has been explained as under:
Job creation: Small business and star ups are providing immense job opportunities for
personnel and due to this large pool of people are getting involved in this and engaged in jobs.
This is helping the nation in increasing their national income and living standards as well. On
the other hand start-ups are providing high quality services and products to customer due to that
more people are prone to be added in this and nation is enjoying high benefits as well in the
terms of social and financial upbringing. (Minto-Co, 2019)
Innovation: Star ups and small businesses are the business in which innovations are
involved as new innovations are inculcated in this. Innovations are the new thing and inventions
which are rendered by new businesses in terms of new technology or new idea, so with the help
of these businesses high innovations can be introduced within country which is highly
beneficial for economy upbringing and growth as well.
Economic growth: Startups and small businesses are providing opportunities to earn
high income and growth opportunities to the country. As these are associated with providing
high quality services and products so due to this high growth in economy can be seen. These
ventures are motivating buying behaviour of population by which economic growth can be
enhanced by the country in a very considerable manner.

Form the above detailed discussions this can be deduced that small businesses and
startups are providing ample contribution to the nation in terms of growth and development as
well. By these businesses living standard of population can be improvised due to which overall
income capacity can be improvised. (Vodă and Florea, 2019)
TASK 3
P5 Characteristic, traits and skills of successful entrepreneurs
Various entrepreneur are existed within UK and this are laced with various skills set and
characteristics by which they are identifiable among others and varied group of people. These
are the abilities by which entrepreneurs are distinct form other and easily carry out their
business operation in a very critical and profit generating way. Some of the traits and
characteristics are explained as under in the context of entrepreneur:
Characteristic Passion: This is one of the most prominent characteristics as this encourages them to
perform their operation way beyond to their capabilities and calibre. This characteristic
is the reason that they are fully dedicated to their aim and working to improvise their
operational efficiency in a very short span of time. Both the entrepreneur Elizabeth
Gooch and Tom Mercer were fully dedicated to their work and company and due to
their high passion they have made their company highly successful in market. (Olivari,
2016) Self-belief and hard work: This characteristic is encouraging entrepreneur in keeping
self-belief and continues to work hard so as to provide high end business benefits. In the
context of Elizabeth Gooch and Tom Mercer they both believed in their idea and grab
the opportunity of their business idea and operated that with high hard work and
resultantly the results were on positive side.
Skills Innovative thinking: This skill is possessed by entrepreneur as by this innovative ideas
are coming up in their mind due to which problems of customer can be solved by their

offerings. In the context of Elizabeth Gooch and Tom Mercer they introduced
innovative ideas in front of customer so as to support their needs by their innovative
product or service ideas. This is helping the business in solving any business problem
within minimum time and to avoid any prominent harm which can be caused by that
problem. (Kozubíkov and et. al., 2017) Leadership: Every entrepreneur is having ability to lead their team in a very prominent
way and this makes them highly effective in meeting up with new challenges and
obtaining opportunities from them. Elizabeth Gooch and Tom Mercer was having
effective leadership skills and due to which they leaded their subordinates in a very
significant manner and used their skills within business operation in order to take out
optimum results and to achieve desired objectives as well.
Traits
 Confident: The major personality trait for entrepreneur is that they are highly confident
on the deed they do. So this is helping them in taking out effective decision and using
them in business growth and success as well. In the background of Elizabeth Gooch and
Tom Mercer they were highly confident for their business idea and their operations over
that and this helped them to cater their customer in effective manner.
 Disciplined: An entrepreneur is highly disciplined as they are taking care of time and
their deadlines and for this they are making their boundaries and limits. This is helping
them to subsistence balanced and equitable life in which all the factors are equally
added. In the context of Elizabeth Gooch and Tom Mercer they both were focused on
their primary goal setting in which they were focused in eliminating major distraction
which is a barrier in their disciplined life.
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
Various characteristic, traits, skills are held by entrepreneurs and these are helpful in
differentiating them from other people in a very prominent manner. These are those factors
which involved in changing mind set of entrepreneur and making them highly efficient to deal
with outer world. The OCEAN model is inculcated with 5 aspects of entrepreneurship in which
high benefit in managing the business is enumerated and the model is explained as under:

Openness: This factor is related with high level of adventure, ideas and their emotions.
This factor is the reflection of creative mind and curios nature by which most appropriate
decisions are taken by entrepreneurs in order to grab opportunities for growth and development
as well. This factor is having positive implication over business management and by this high
efficacy in the business can be inculcated. (Stephan and Drencheva, 2017)
Conscientiousness: This is associated with agility and dependability as well. This is
describing that entrepreneurs can focus within various factors in order to get huge productivity
so as to achieve overall business objectives.
Extroversion: This is defined as energy, empathy of entrepreneurs in order to motivate
people that are living in the society so as to get better options of employment and living
standards as well. This is the ability by which high end relations can be established between
entrepreneur and workers so as to tackle their retention in a very effective manner.
Agreeableness: This is the stage under which various skills such as cooperation, trust
and other habits are included. This is making entrepreneur to establish effective relations with
all their clients and by which success can be inculcate by the venture.
Neuroticism: This is associated with fear anxiety, interruption, secureness, suspicion
and many more. These reactions are sum of that behavior which is seen by an entrepreneur
during negative times. These aspects are required to be neglected by entrepreneur in order to
boost up their morale and attain sustainability as well. By avoiding these behaviors workplace
ethics can be created and high efficacy can be attained. (Kerr, Kerr and Xu, 2017)
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurs are the group of persons who establish and operate a business
organization providing any kind of product or services to the ultimate consumers. They have
ability to think and good decision-making qualities. Their Background and experiences can help
us in have more involvement and guidance in their personal life (Ahn, Minshall and Mortara,
2018). The Background and personal experiences of Elizabeth Gooch and Tom Mercer are
explained and elaborated below:

Elizabeth Gooch
Background: Elizabeth had initiated her professional life very early at the age of 18
with HSBC bank. After a year due to some situation, she decided and moved out to join a
consultancy service firm. After collecting some years of experience and some amount of
money, she decided to leave the job and start her own business and for that, she took financial
help of 1000 Euros from her friends and family. She started business of her own providing
consultation and training in operations management for different branches of business.
However, unfortunately she was not possessed with depth of information required to carry on
such business so she closed the business and started providing software services. During the
initiative she got in touch with Prudential Financial Services CEO Rodney Bakers-Bates and
was able to convince him as Chairman of her new enterprise and with that, she was succeeded
in securing the amount of investment and investors to float her company.
Experience: After the phase when she quit her job, her father and family repeatedly
disagreed with the decision and suggested her to continue with Job Rather than being an
entrepreneur with this less amount of profits. However, she stayed strong and met Rodney
Bakers who provided her with number to ideas and ways to be an entrepreneur and run software
development business. She took the required steps and due to her strong will power she was
able to attract large number and of investors and became a successful and inspirational
entrepreneur.
Tom Mercer
Background: Tom Mercer completed his graduation from well-known Cambridge
University. He has a good experience as management consultant from his job in Brian and Co.
established in London. He was that creative, innovative and good thinker that while his brain
was processing new ideas he got with an idea set up his own venture. It was noticed by him that
options and varieties for Lunch and Supper are high in market as compared to Breakfast.
Therefore, he decided to capture this opportunity, established his own Venture providing
healthy drinks and eatables options to the target consumers, and succeed.
Experience: Tom was having his work place in middle of the city and it was from there
he noticed the idea of this breakfast diet and struggle of people there. Therefore, keeping that in

mind he decided to initiate the healthy breakfast place for consumers. In the initial stage of his
idea implementation he used to sell variety of healthy fruits at city, railway stations etc. in an
innovative way that is in bottle. Moreover, from there he got understanding of customer
requirements and expanded his enterprise (Byrne and et. al., 2016) .
CONCLUSION
From the above report it can be concluded that entrepreneurs are the person those are
having effective qualities in which their traits and other characteristics are giving them edge to
be identified in pool of people in significant manner. Small businesses are providing immense
opportunities to the country to enhance their growth and economic conditions as well. These
ventures are providing high end benefits to the social welfare and overall national development.
These businesses are providing various ways in which economy of the country is boosted up.
Furthermore there are various ventures which are existed in the economy and they are
categorised on the basis of various situations. (Burns, 2016)

REFERENCES
Books and journals
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Byrne and et. al., 2016. Training corporate entrepreneurs: an action learning approach. Small
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analytical comparison of researchers' and entrepreneurs' views. Journal of Small
Business Management. 54(1). pp.26-48.
Kerr, S.P., Kerr, W.R. and Xu, T., 2017. Personality traits of entrepreneurs: A review of recent
literature (No. w24097). National Bureau of Economic Research.
Kozubíkov and et. al., 2017. Important characteristics of an entrepreneur in relation to risk
taking: Czech Republic case study. Journal of International Studies.
Minto-Coy, I.D., 2019. From the periphery to the centre: start-up and growth strategies for
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Morris and et.al., 2018. Distinguishing types of entrepreneurial ventures: An identity‐based
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Olivari, J., 2016. Entrepreneurial traits and firm innovation. Eurasian Business Review. 6(3).
pp.339-360.
Stephan, U. and Drencheva, A., 2017. The person in social entrepreneurship: A systematic
review of research on the social entrepreneurial personality. The Wiley handbook of
entrepreneurship, pp.205-229.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Toft-Kehler, R.V., 2018. Entrepreneurship as a career. An investigation of the relationship
between entrepreneurial experience and entrepreneurial outcome.

Vodă, A.I. and Florea, N., 2019. Impact of personality traits and entrepreneurship education on
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