Entrepreneurship and Small Business Management (Unit 9) Report

This report provides a comprehensive overview of entrepreneurship and small business management. It begins by defining entrepreneurship and then explores various types of entrepreneurial ventures, including small businesses, scalable start-ups, social enterprises, and large companies, detailing their characteristics and operational strategies. The report also examines different entrepreneurial typologies, such as serial entrepreneurs, social entrepreneurs, and the differences between male and female entrepreneurs. It further analyzes the similarities and differences among various entrepreneurial ventures, highlighting the unique aspects of each type. The report also discusses the significant impact of micro and small businesses on economic growth, emphasizing their role in job creation, innovation, and improving living standards. Overall, the report provides valuable insights into the diverse world of entrepreneurship and its crucial role in economic development, offering a detailed analysis of business management principles and entrepreneurial traits.

Entrepreneurship and Small Business
Management (Unit 9)

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different type of entrepreneur venture and typologies..........................................................1
P2 Similarities and difference among different type of entrepreneur.........................................3
P3 Impact of micro and small business on economy..................................................................5
P4 Importance of small businesses on the growth of social economy........................................7
P5 Characteristic and traits of successful entrepreneurs.............................................................8
P6 Personality of entrepreneur get affected by mindset and motivation....................................9
P7 Process of entrepreneurship affect by person's background or experience..........................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurs are the person who set up the business for achieving financial gains. They
take more risk and hope that they get profits. They play an important role in the economic
growth because entrepreneurs have ability to design and execute business activities in order to
attain higher profitability. This scenario is based on entrepreneurship which is an effective
process to develop and launch a new business and offering their products to get the best
outcomes. Mainly enterprise can be divided in four sections such as small, large, social and
scalable (Entrepreneurship, 2017). All these aid in developing the growth of economy. In this,
the government provides effective support to these types of businesses to set their operations in
order to get higher success in market. They produce new and innovative products and services to
invite large number of customers in order to satisfy their needs and gain higher satisfaction in an
effective manner. It helps in increasing living standard of people which directly put a huge
impact on the economy. Present report is based on various types of enterprises and its typologies.
Various similarities and difference among all the enterprise is also mentioned in this report
which directly impact on economic growth. Along with this, importance of small businesses on
economy and person past experience and background is also mentioned in this project.
P1 Different type of entrepreneur venture and typologies
In business environment, entrepreneur is the person who set their operation for hope to
attain higher profits. They take various risk to run their business and also achieve financial gain
by delivering the quality products to their customers.
Concept of entrepreneurship: It is an important process in which one person set their various
operational activities in order to get financial gain. They take risk to look for higher achievement
(Acs, Audretsch and Lehmann, 2013). There are various ventures which exist in the market that
are divided in four aspect which are as follows: Small business entrepreneurship: These types of entrepreneur operate their business at
low level because they are having limited financial resources. They invest at small scale
so that some time they fails in attracting large number of investors. For this they take
financial help from their friends and family to run their business. The main purpose of
setting this type of business is to make quality products to fulfil their basic needs. For
managing whole business activities they include their family members and friends and
hire local people so that they easily operate their business in effective manner. There is
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some example of small business entrepreneurship such as plumber, travel agent,
electricians and many more who operate their business at small scale to make profits for
their daily needs (Bruni, Gherardi and Poggio, 2014). Scalable start-up entrepreneurship: This type of business starts their business with new
and innovative ideas which aid in attracting large number of customers toward it products
and company. With the help of unique ideas, they easily invite more investors so that
they are able to generate number of profitability. They select and hire skilled and
experienced employees in their business for completing the work effectively that
contribute in achieving desirable success at market. This type of business takes various
risks to get financial gain in order to improve their productivity. The main purpose of this
type of business is to capture large market share by delivering high quality as well as
innovative products to their customers (Koellinger and Roy Thurik, 2012). For example,
Twitter, Facebook, Skype all are the major part of scalable start-up entrepreneurship. Social entrepreneurship: This type of business is more effective because they solve all
the issues and problems of people so that they would easily satisfy their needs in an
appropriate manner. They can be profitable and non-profitability based business. The
main purpose of this business is to solve social problems. They produce effective and
features product for public to attain profitability. They contribute in increase the social
welfare to make problems free world.
 Large company entrepreneurship: This type of business undertakes their operational
activities at a large level. They make as well as provide creative and innovative products
to their customers in order to satisfy their needs. In today's business environment,
customer’s tastes and preferences are continuously changing (Carland Jr, Carland and
Carland III, 2015). In this, they offer their products to fulfil their needs in an effective
manner. Main aim of this type of business is to generate higher profitability by delivering
quality products to the customers. They easily set their business at international market to
gain foreign exchange rate which directly put an impact on economy’s growth.
On the other hand, there are various entrepreneur typologies which affect the overall
performance as well as productivity of company in an appropriate manner which are as follows: Serial entrepreneur: This type of person enters in the market with new and innovative
ideas and set their business in order to generate higher profit. They start their business in
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market but give responsibilities to other people to run operation effectively. They set
multiple business at the same time because the main aim of these entrepreneurs is to
make larger profits in the market. Social entrepreneur: They set their business with an aim of solving customer’s
problems. They set their business with innovative ideas which help in evaluating better
solution of the problems (Carland and Carland, 2015). Main aim of this entrepreneur is to
define social welfare in a proper manner. They offer features products to their customers
in order to get higher satisfaction. Female entrepreneur: The business which are controllable and set by the women is
called as female entrepreneurs. In this the women take initiative to set their business in
market (Carraher and Paridon, 2015). The government also define that woman have best
capability to owing the business because they are having a minimum 51% financial
interest of the total capital. Female entrepreneurs having capability to accept the
challenges and also have patience in every situation which aid in achieving the overall
success.
 Male entrepreneur: In the whole world many man entrepreneurs are set up their business
than female entrepreneurs. This type business person set their operation on the basis of
their own risk so that they are generate more profitability. They take high risk for gain
more benefits in order to perform all the activities in appropriate manner
P2 Similarities and difference among different type of entrepreneur
There are varies entrepreneurial ventures such as micro, small, medium, large which may
be sole trader, partnership, private and public limited company. However, the similarities and
difference are existing in all the entrepreneurs because every entrepreneur having their own
personality and nature. They operate business as per their own style and ideas that are totally
differ from others (Chaston, 2017). All the similarities and differences can be understood by
following points which are as follows:
The differences and similarities between life style and serial entrepreneurs:
Social as well as lifestyle ventures or
business similarities
Serial entrepreneur ventures similarities
The main similarities in both serial and social They produce quality and creative products to
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entrepreneurs is they set their business new and
innovative ideas.
Both are having capability to invite large
number of customers towards its products.
their customers in order to satisfy their needs in
appropriate manner.
The main aim of this entrepreneurs to create
the values of satisfy the customer’s needs.
Difference Difference
But on the other hand, social entrepreneurs
operate their activities for resolving the
people’s problems in effective manner.
But the social entrepreneurs take risk to solve
the social problems because they want to make
a free world and increase social welfare which
contribute in economy growth (Ellis, 2011).
Social entrepreneurs are profitable and non-
profitable.
Serial entrepreneurs set their business to
generate more profits in every year.
Serial entrepreneurs continue define their new
ideas for getting higher success. They take high
risk for attain the growth in the market.
Serial entrepreneurs are based on profitability
firm.
The differences and similarities between Male and Female entrepreneurs:
Male entrepreneur’s businesses similarities Female entrepreneur’s business similarities
Men and female entrepreneurs set their
business on their capabilities.
Male entrepreneurs are easily managed their
operational activities (Fayolle, 2013)
The main similarities between them they are
having best skills and power to control the
business activities in effective manner.
At the same time female entrepreneurs also
operate their operational activities in most
effective manner.
Difference Difference
One of the biggest difference between both is
men are more aggressive than females.
Male entrepreneur focused on economy cost
and female focus on making quality and social
contribution.
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Men easily take financial risk and also manage
it effectively. But the sometimes women fails
is managing the financials risk.
Males are task oriented manager.
Both are having best capabilities to take risk
and accepting more challenges.
Male entrepreneurs are grow faster in their life.
They have greater knowledge about the
technical field.
Male entrepreneurs easily promote themselves
in front of others and put their views in
appropriate manner.
Female entrepreneurs are best motivator so that
they easily motivate their staff members to
complete their work in order to attain success.
Female always focus on maintaining the good
relationship with their employees.
They are able to generate more profitability in
their business and get success in the market.
Female entrepreneurs are most careful person
for their employees. They effectively listen
their employee’s problems and provide better
advice effectively.
P3 Impact of micro and small business on economy
Small business enterprise plays important role in the economic growth because they
provide various opportunities to their local people such as employment. It helps in improving the
living standard of the peoples which direct impact on the economy of the country.This type of
business undertakes various operation in which they produce as well as provide quality products
to customers in order to get their satisfaction. They enhance the skills and knowledge of the
people by providing employment opportunities so that they develop their standard in effective
manner. Small business enterprise set new and innovative ideas to operate their activities in order
to attract large number of customers as well as investors. On the other hand, there are three types
of categorised of business which are as follows:
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(Source: Lisa Dougherty Choux, 2014) Small: This type of business having their operation at low scale because they have
limited size and revenue. They are having limited number of employees in their business
operation (Flamholtz and Randle, 2012). Medium: This type of business includes less than 300 employees for their operational
activities. Profitability and revenue is highly depending on the workers. They generate
approximately 50 Million euro.
 Large: This type of business having more than 300 employees who operate their business
at large level.
Along with this there are some effective characteristic and nature of the business which
aid in generating desirable profitability (Grégoire, Corbett and McMullen, 2011). These are as
follows: Sole proprietorship: It known as sole traders, in which the one single person run their
business. In this legal distinction is not exist in the business and the owner. This type of
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Illustration 1: Micro and small business employment

business pays personal income tax. There is no separation among all the business entities.
Sole trader is responsible for all the debts which exist in the business. In this the person
operate their business with their own responsibility. The main purpose of this business is
to make profitability to maintain their sustainability. They register their business in their
name so that they responsible for all the problems and trouble. Partnership: In these two or more people are comes together for achieving the common
goals. Basically, it is held by the many peoples and also define the relationship between
several peoples. In this all the partners share all the profits and losses. They sign a
agreement in which all the terms and condition are mentioned is called a partnership
deed.
 Private companies: This type of business own by the private person as well as number of
stakeholders. It is totally controlled by the private individuals in which all the decision is
taken by them (Kiss, Danis and Cavusgil, 2012). It is a private ownership so that they do
not sale for public. The share of the company is not trade in the market as well as in front
of the public.
Entrepreneurship is one of the effective process in which various opportunities ate there
which directly impact on economic growth. There is some impact in below which are as follows: Increase GDP: Small business enterprise is highly contributing in economy growth. It
also adds in adding more in GDP rate of the country which helps in increasing the capital
income. One of the best advantage of small business enterprise is to maintain the stability
in the economy. Improve living standard of society: Small business enterprise play an important role in
improving the standard of the people because it defines lots of opportunities for local
people such as employment which aid in fulfilling their needs and wants (Koellinger and
Roy Thurik, 2012). This aid in improving the overall standard. It also makes and deliver
quality products to their customers in order to achieving their higher satisfaction in
appropriate manner. One of the best advantage of SME's is to increase the living standard
of the local people which directly affect the economy growth.
 Provide employment: One of the best advantage of small business enterprise to to
provide better job opportunities to their local people which aid in enhancing their skills
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and knowledge in effective manner. They provide better platform to the local people to
show their talent and in order to achieve best outcomes.
 Improve productivity of the local people: It is also important benefits of small business
enterprise is to increase the confidence level by provide best job opportunities to their
local people aid order to generate more profitability. It directly contribute in their
productivity level at the workplace.
SMEs and the economy:
In UK 5.4 million small as well as private business are started in 2015. Since 2014 it
increased 146000. and the number of employees enhanced by 35000 which helps in reducing the
unemployment within the country which leads in improving overall growth of the UK country.
In this context approx 2.4 million businesses are registered for VAT and PAYE which leads in
improving the growth of business population in order to enhance overall goodwill of the
companies at market place and also contribute in economic development.
P4 Importance of small businesses on the growth of social economy
Entrepreneurship is an effective activity which change the whole business environment
because it the starting period it is more difficult for the person to set their new business at market
place (Zellweger, Nason and Nordqvist, 2012). But in the recent time due to globalisation it is
easier to run start-up easily. In this the government also provide support service to the small
business enterprise to manage and evaluate their activities. SME's play important role in
development of the country as well as economy. In UK various business activities is competed
by the small business because it helps in providing the better stability in the economy. In this the
government also organize various events and programs in which small, large and medium size of
business easily grow. At the time of Brexit when the Britain take off from the Europe union in
which both are separate. In this the Britain face various issue for developing their growth. For
this the government take strict action and provide support to the small business and start-up to
operate their business in order to increase the growth. With the help of small business economy
of the country is automatically increase because they spread their lots of opportunities in front of
local people so that they easily improve their living standard in effective manner (Landström,
Harirchi and Åström, 2012). In 2016, Europe detached United kingdom and the term was named
as Brexit. It has been analysed that almost half of population of Europe throw UK out of Union.
But, this instance became much beneficial for UK as most of inverters started investing on
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innovative start-up's of entrepreneur which raised economical growth of this nation in a very fast
way.
Difference between start-up's and SME's are as follows:
Basis Start ups Small Business
Expectation These type of business operate
with various new and innovative
ideas. By this number of
customers are attracted.
These business are small in
nature as company to start-ups.
Along with this, they make
profits for surviving in the
market place.
Finance Finance is important for every
business organization to operate
their entire activities.
In this, small business does not
required lots of funds for
operating their activities. In this,
funds can be attain from banks
and other financial instruments.
Nature of area Under this, various number of
innovative ideas set form people
to attain better success at market
place.
Under this, small business follow
traditional structure to operate
their business activities.
There are some another benefit of small business enterprise which are as follows:
 New business helps in providing better job opportunities to their local people so that they
can easily fulfil their needs.
 They provide better quality services to the customers which aid in generating the more
revenue.
 This type of business also supports in the economic development from of taxes.
 Small business helps in providing job opportunities to unemployed peoples which aid in
reducing the poverty in the country.
 It also contributes in minimizing the economic gap with in the poor and rich people.
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P5 Characteristic and traits of successful entrepreneurs
Every successful entrepreneur having their own traits and skills which is differentiate
from others. All these characteristics are unique which aid in completing all the task in effective
manner (Nasution and et.al., 2010). There are some characteristic of two successful
entrepreneurs Mark Zuckerberg and Bill gates both are having best qualities which make a
successful person in the world. All this traits and characteristic are as follows: Motivation and passion: Motivation is more important for the individual to complete
their task in effective way. Both terms are interrelated because motivation aid in
accepting all the risk and passion helps in achieving the best results. Mark Zuckerberg
and Bill gates having more motivation which define their success in marketplace. Hard working: Both entrepreneurs are hardworking which results see in their success.
Without hard working nobody can able to achieve positive results. Risk taking: Every person takes more risk at the time of operating their business
activities. More risk helps in achieving the higher profitability. If entrepreneurs fail in
taking risk than can get success in their business (Parker, 2011). So that it is more
important for the successful entrepreneurs to take various risk in order to get positive
success. Bill gates and Mark Zuckerberg having best ability to take risk so that they
easily attain desirable results. Self-confidence: Having confidence is more important for the entrepreneur to completing
all the task in effective manner. With the help of confidence entrepreneurs easily increase
their qualities for managing all the activities in appropriate manner.
 Communication skills: Better communication with their employees and customers aid in
improving the overall performance of the business. Bill gates and Mark Zuckerberg both
having this skill which helps them to achieving the competitive advantage in better way
(Schaper, 2016).
Both Bill gates and Mark Zuckerberg having all the traits and characteristic which make a
successful entrepreneur in the world.
P6 Personality of entrepreneur get affected by mindset and motivation
Personality define the attitude and mind set of the people which helps in accepting the
challenges in effective way (Szirmai, Naudé and Goedhuys, 2011). Every entrepreneur having
different types of skills and traits which is differ from other. In the recent time there are various
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