Entrepreneurship and Small Business Management

This document explores the different types of entrepreneurship ventures, their impact on the economy, and the traits and characteristics of successful entrepreneurs like Bill Gates and J.K. Rowling. It also discusses how background and experiences can hinder or foster entrepreneurial growth.

Entrepreneurship and small
business management

Table of Contents
INTRODUCTION......................................................................................................................1
PART 1.......................................................................................................................................1
P1. Different types of entrepreneurship ventures and their typology....................................1
P2. Similarities and differences between entrepreneurial ventures.......................................2
P3 Micro and small businesses impact on the economy........................................................3
P4. Explain how important small businesses and business start –ups will contribute to the
growth of the social economy................................................................................................3
PART..........................................................................................................................................4
P5 Traits, skills and characteristics of successful of Bill Gates and J.K. Rowling................4
P6 Aspects which reflect entrepreneurial motivation and mind sets.....................................5
P7 Investigating background and experiences of entrepreneurs............................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Entrepreneurship is the process of designing, launching and running a new business,
which is often initially a small business. The people who create these businesses are called
entrepreneurs. In contrast with this statement, the following report will aid in exploring the
range of business ventures available to different types of entrepreneurs. After exploring
different types of ventures, similarities and differences exist in each venture will be described
in the assignment. With the help of relevant data and statistics, the impact of small business
on economy will be assess and importance of small businesses on the economy of United
Kingdom will be asses. The traits, skills and characteristics of successful entrepreneur will be
determined and aspects of entrepreneurial personality reflect on entrepreneur ventures will be
explained in the assignment. Eventually, the background and past experiences of person
hinder or foster entrepreneurship will be examined in the assignment.
PART 1
P1. Different types of entrepreneurship ventures and their typology
Entrepreneurship is known as way of taking action in order to exploit new ideas and
grab opportunities which assist in making the good position in the market. There are various
types of uncertainties faced by entrepreneur while starting a new business (Dacin, Dacin and
Matear, 2010). Here below are provided several types of entrepreneurs:
Small business ventures: Small business carry out their all business activities at a
lower level. These types of business basically are grocery, hairdresser and consultant. At the
time of starting a business, support is basically taken by family members and friends to carry
to daily activities.
Scalable start-up venture: In this type of business entrepreneurs are highly motivated
for accomplishing success (Morris, Kuratko and Covin, 2010). They kept a vision to change
the world through establishing a new business. In order to accomplish the vision, they hired
highly skilled employees who help them in their business.
Large venture: To start a large company a huge capital and proper planning is
required in order to accomplish success. There are various types of strategies are developed
that help in making innovative products and services to enhance customer satisfaction and
earn a profit.
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Determines entrepreneur: These type of entrepreneurs who are generally pacemaker
not a follower. It is because they do not copy products and services of other firms and try to
do something different.
Social venture: Social venture work basically for providing welfare of society not to
earn a profit (Dacin, Dacin and Matear, 2010). They possess the capability to serve society
and provide them quality products and services without earning any profit.
P2. Similarities and differences between entrepreneurial ventures
As discussed above in the above question there are several types of entrepreneur and
they all work with respect to the growth and development of the economy. They all possess
some similarities and differences regarding managing profit and for developing their
business. One of the similarity is that all the entrepreneurs accomplish growth and make a
profit. Along with this, they all make products and services for satisfying customers’ needs
and wants. Apart from this one of the main difference among them is that they all work for
different reasons and goals. In the small business, investment is low as compared to large
companies so there is the difference in profit (George and Bock, 2011). One of another
difference is that social enterprise work for welfare not for earning a profit as compared to
small and large enterprise.
Differences between the ventures are as follows:
Small Business Ventures Scalable Start-Up
Venture
Social Venture
Small venture set short term goals and
objectives while starting business. They
sell single product in market for enhancing
customer base (Bridge and O'Neill, 2012).
In this type of business
entrepreneur try to make
innovative product for its
customers
This types of
company do not
work for profit.
This type of business is start with lower
level of risk
Leve of risk is high There is no risk
because work is
done for society
welfare.
There are some similarities between all the ventures which are as follows:
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Small Business
Ventures
Scalable Start-Up Venture Social Venture
Few number of
employees work
Few employees who are highly skilled
worked in such venture (Baum, Frese
and Baron, 2014).
Employees are in large
number to provide services
to society
Generally local people
are involve in this
business
Business activities are carried out for
growth of the company as well as
economy.
Provide employment
P3 Micro and small businesses impact on the economy
The growth and development of the country is important in respect to improve the
economic condition of the nation. Micro and small business play significant role in the
growth and development of the firm (Storey, 2016). For the research it is determined that
there are more then 400 people who are working at small business and provide benefit to
them. They all make sure that all customers are satisfying with their products or not as this
lead to contribute the growth of business. One of the main advantages which UK gets that is
related to providing employment opportunities. It is because when new business starts there
are many people who get employed.
Impact of SME on UK economy is as follow:
Future growth: Due to Brexit economy of UK is higher impacted. However with the
growth and develop of small medium business it help in increasing GDP. Along with this
there are many import and export subsidies which are declared by the government of UK for
increasing profit. In context to this they have also simplify the export procedure policies for
enhancing business opportunities (Welter, 2011). There are also many large companies who
are making profit but small business enterprise is also playing significant role in respect to
the growth and development of the economy.
P4. Explain how important small businesses and business start –ups will contribute to the
growth of the social economy
Economy of the UK was directly impacted due to Brexit and it became one of the main
concern for government of UK (Oosterbeek, Van Praag and Ijsselstein, 2010). Employment
opportunities also play significant role in the development of economy after Brexit. Vast
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scale association was proven to be more profitable and they are paying higher salary to their
employees. Hence it can be said economy growth of the UK is mostly depend in SME. Here
below are some aspects that are as follows:
Income: While working in an organisation lead to increase income of individual and render
them chance to live better life.
Employment: In the organisation there are various types of operations performed and it can
be done with the help of employees. Hence unemployment within the country can be reduced
through job opportunities provided by SME.
Small business and start up generally provide fund to society for improvement and to join
their firm. This is the way for making a positive effect on the firm through providing them
social advantage. Once of the adverse risk which can affect financial development of the UK
is due to Brexit. To bring changes and overcome risk this new companies play significant role
reduction of various number of issues.
PART
P5 Traits, skills and characteristics of successful of Bill Gates and J.K. Rowling
The traits, skills and characteristics are certain quality which makes a person different
from rest of the world. In order to become successful entrepreneur, it is important to have
certain traits skills and characteristics (Baum et al., 2014). In this context, in The Business
Show 2018, two successful entrepreneur and business leader share their thoughts. Among
which Bill Gates and J.K. Rowling contributed the most. In contrast with this statement their
traits skills and characteristics are described below:
Traits
 Passionate: In order to accomplish the desired aim in life, it is crucial for an
individual to be passionate about it. By listening to both Bill Gates and J.K. Rowling,
it can be understood that they both have this trait and because of which they were able
to succeed in their respective field.
 Risk Takers: To achieve something big, one has to prepare for risk associated with it.
One who conquered those risk will become successful in life(Obschonka and Stuetzer,
2017). Bill Gates and J.K. Rowling have taken many risk in their life. By conquering
those risk, they become successful leaders in their respective field.
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Skills
 Innovative: Being innovative is unique skill which can be rarely seen in an
individual. Bill Gates and J.K. Rowling are both innovative and their innovation
revolutionise the world eventually. Because of this skill they were able to become
successful entrepreneur.
 Leadership: An entrepreneur has to work with his or her team members. At times of
failure, team gets demotivated (DeNisi, 2015). Only successful entrepreneur
entrepreneurs can regain their motivation and influence them on the right path and
right direction through their effective leadership skills. Both Bill Gates and J.K.
Rowling were successful leaders.
Characteristics
 Self Confidence: Failures can lower the morale and confidence of any entrepreneurs.
But only successful entrepreneurs can cope up with that, analyse the situations and
regain their confidence. Self-confidence characteristics can be seen in successful
entrepreneurs only. Both Bill Gates and J.K. Rowling possess this quality and became
successful in their respective field.
 Persistent: Being determined about the task or job is unique quality which can rarely
be seen in successful entrepreneur. To achieve desired aim, objectives, goals or
targets, one has to be persistent about it and make full efforts to attain it efficiently.
Both Bill Gates and J.K. Rowling were persistent about their job and goals which
makes them successful in their respective field (Davis et al., 2016).
P6 Aspects which reflect entrepreneurial motivation and mind sets
To reflect the entrepreneurial motivation of successful entrepreneurs like Bill Gates and
Steve Jobs, The Big Five Personality model or OCEAN framework is going to be use. The
model describe five types of personality and every individual fall into at least one these types.
The description is provided below:
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 Openness: Openness demonstrates the level of intellectual curiosity, creativity and
preferences for novelty and variety within person. Bill Gates the founder of biggest IT
company Microsoft possess openness trait in him (Edwards-Schachter et al., 2015).
He is curious and creative when it comes to his profession. J.K. Rowling, a writer,
author and a successful entrepreneur is creative and intellectual.
 Conscientiousness: The trait of conscientiousness demonstrates the tendency of being
stable, self-disciplined and working dutifully. Both Bill Gates and Steve Jobs possess
this quality. They were dutiful, disciplined and sincere towards their profession.
Through organise way, they were able to establish their organisation and lead it to the
top.
 Extraversion: Extraversion quality in person shows positive energy, assertiveness,
sociability and talkativeness. Bill Gates and J.K. Rowling both are extroverts
(Obschonka and Stuetzer, 2017). They have positive energy, emotions and confidence
and like to interact with people, share thoughts and ideas.
 Agreeableness: Agreeableness is the quality of being compassionate and cooperative.
This type of quality is found only in few entrepreneurs. Both Bill Gates and J.K.
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Rowling have agreeableness tendency (Caliendo et al., 2014). They cooperate with
their team members, assist wherever possible and motivate them so that desired goals
and targets can be achieved.
 Neuroticism: Neuroticism quality demonstrates the person mood, sadness and
emotional instability. Higher neuroticism greater the person will be emotional
instable. The quality is not possessed in Bill Gates and J.K. Rowling and because of
which they were able to succeed in their respective field effectively and efficiently
(Baum et al., 2014).
Thus, from the above analysis it can be understood that both Bill Gates and J.K. Rowling
have the qualities which made them successful and leader in their sector.
P7 Investigating background and experiences of entrepreneurs
In order to accomplish dreams and aspirations, successful entrepreneurs faced ample of issues
and difficulties due to their background and experiences. Bill Gates parents weren’t that rich
or famous in past to afford their son high quality education. Same goes with J.K Rowling.
They have taken ordinary education like every other individual but makes extra ordinary out
of it. In contrast with this statement, this part will demonstrate how background and
experience of successful entrepreneurs hinders or foster their growth and development. Bill
Gates was drop out from Harvard University (Edwards-Schachter et al., 2015). Furthermore,
he has faced lots of family issue while taking his first step towards introducing Microsoft.
There were certain risks such as national culture, family issue and lack of knowledge in
people regarding computers. Though he never gave up on his dreams and now become
successful, rich and famous. J.K. Rowling completed her college and became graduate. She
also faced family and cultural issue. But she surpassed each and every issue and became a
successful author. She became famous by introducing “Harry Potter” to the world. In this
context, it can be understood that background and experience indeed hinders growth and
development of individual. But it depends upon the individual whether they run from it or
they learn from it. Bill Gates the founder of biggest IT company Microsoft possess openness
trait in him (Henry et al., 2017). He is curious and creative when it comes to his profession.
J.K. Rowling, a writer, author and a successful entrepreneur is creative and intellectual. After
enduring lots of issues, failures and restrictions, both the entrepreneurs gave their best and
became successful in their respective field. Bill Gates and J.K. Rowling both are extroverts.
They have positive energy, emotions and confidence and like to interact with people, share
thoughts and ideas. Thus, it implies that background and experience can hinders or fosters the
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growth and development of entrepreneurs (Davis et al., 2016). Their traits, skills and
characteristics can help them to sustain in the tough times assist them to achieve desired goals
and objectives.
CONCLUSION
From the above report it is concluded that micro and small business play significant
role in the growth and development of the firm. The traits, skills and characteristics are
certain quality which makes a person different from rest of the world. To achieve something
big, one has to prepare for risk associated with it. One who conquered those risks will
become successful in life. Further it is concluded that in order to accomplish dreams and
aspirations, successful entrepreneurs faced ample of issues and difficulties due to their
background and experiences.
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REFERENCES
Books and Journals
Baum, J.R., Frese, M. and Baron, R.A. 2014. Born to be an entrepreneur? Revisiting the
personality approach to entrepreneurship In: The psychology of entrepreneurship.
Psychology Press, pp. 73–98.
Caliendo, M., Fossen, F. and Kritikos, A.S. 2014. Personality characteristics and the
decisions to become and stay self-employed. Small Business Economics.
42(4),pp.787–814.
Davis, M.H., Hall, J.A. and Mayer, P.S. 2016. Developing a new measure of entrepreneurial
mindset: Reliability, validity, and implications for practitioners. Consulting
Psychology Journal: Practice and Research. 68(1),p.21.
DeNisi, A.S. 2015. Some further thoughts on the entrepreneurial personality. SAGE
Publications Sage CA: Los Angeles, CA.
Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M., Quesada-Pineda, H.
and Amara, N. 2015. Disentangling competences: Interrelationships on creativity,
innovation and entrepreneurship. Thinking Skills and Creativity. 16,pp.27–39.
Henry, C., Hill, F. and Leitch, C. 2017. Entrepreneurship Education and Training: The Issue
of Effectiveness: The Issue of Effectiveness. Routledge.
Obschonka, M. and Stuetzer, M. 2017. Integrating psychological approaches to
entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business
Economics. 49(1),pp.203–231.
Online
Case study in Psychology: Data Analytics applied to analyze human personality based on Big
Five model. 2016. [Online]. Available
through:<https://data.sngular.team/en/art/50/case-study-in-psychology-data-analytics-
applied-to-analyze-human-personality-based-on-big-five-model>
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