Entrepreneurship and Small Business Management

This study material explores the range of venture types in entrepreneurship, assesses the impact of small business on the economy, and determines the key aspects of an entrepreneurial mindset. It also discusses the different environments that foster or hinder entrepreneurship. The subject is Entrepreneurship and Small Business Management.

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT

Table of Contents
Introduction......................................................................................................................................4
LO1: Explore and illustrate the range of venture types that might be considered entrepreneurial. 4
P1: Types of entrepreneurial ventures and relation with typology..............................................4
P2: Similarities and dissimilarities between entrepreneurial ventures.........................................6
LO2: Assess the impact of small business on the economy............................................................8
P3: Relevant Data and statistics...................................................................................................8
P4: Importance of small business in terms of social economy....................................................9
LO3: Determine and assess the key aspects of an entrepreneurial mindset..................................10
P5: Skills and traits of successful entrepreneurs........................................................................10
P6: Assessment of entrepreneurial aspects in terms of motivation and mindset.......................12
LO4: Examine the different environments that foster or hinder entrepreneurship........................13
P7: Experience and background in terms of foster entrepreneurship........................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendices....................................................................................................................................17
2

Introduction
In most countries, small and medium enterprises are the ones that account for the largest shares
in the market within the economy. These businesses are therefore known for their entrepreneur
skills and capabilities. The role of an entrepreneur is to keep his business strong and competitive
and generate growth in terms of innovation and profits. The present assignment is an
investigation about the scope of an entrepreneur for establishing a small business. Explanation
about the factors that constitute entrepreneurship and the qualities that make an ideal
entrepreneur is described within the report in detail. Moreover, the factors that foster good
entrepreneurship skills are also mentioned in the report. Entrepreneurial ventures have its own
expansion in different parts of the world. It has been highly observed that UK gets its own
recognition in terms of successful entrepreneurship ventures. The current economic climate in
the UK shows that it is highly regulated by the presence of small business enterprises. This
assignment theref0re dwells on the qualities that make up a successful entrepreneur. With the
qualities of an ideal entrepreneur in mind, the assignment sheds light on the factors that shape up
personalities of successful entrepreneur. Factors that affect leadership styles of entrepreneurs
have been mentioned in the assignment along with an explanation of the factors that foster
entrepreneurial qualities within an individual.
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LO1: Explore and illustrate the range of venture types that might be
considered entrepreneurial
P1: Types of entrepreneurial ventures and relation with typology
Business and business activities are the focus of entrepreneurship practice, which deals with a
systematic and creative approach for a particular business. These business activities are the most
creative one, which organizes leads and manages people with the context of fulfilling different
organisation goal. As explained by Bai et al. (2018), effective entrepreneurship can bring very
positive change in the context of organisational goal, which is specific. The main agenda of
different types of entrepreneurial ventures relate with the specific company or a large number of
organisations.
Entrepreneurship in small business
In the case of small businesses, it has been observed that the UK has an effective rate for
supporting the future scope of a start-up business. It has been highly observed that UK has
supported a large number of a start-up business in the year 2017-18 withholding 5000 start-up
which deals with different organisational concept n UK (Brooks et al. 2014). Another fact related
to these types of entrepreneurship attachment is employment. Almost 19.8% of total employment
is offered by the start-up businesses in UK, which is higher than the normal employment rate
hired by the UK government (Colombo et al. 2014). Some of the start-up business like
consulting companies, internet cafes, supermarkets, and small-scale production has created
emerging revenue for their company. The main attraction of these types of small business is the
participants. These companies are founded with a family business model or with few members.
According to Colombo et al. (2014), The Main typologies of entrepreneurship, practice deals
with two major types namely Craftsman entrepreneurs an opportunistic entrepreneur.
Large Corporations
Growth and sustainability are two different types of attributes, which deals with the scope of
large corporations. It has been taken under consideration that certain life cycle is maintained in
this type of business. New services and products are the main concern of this type of
entrepreneurship practice. Competitive advantage is the main target of the large corporation
system, which deals with service, and productivity of the business. In case of this type of
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business, it falls under large business typology (Jayawarna et al. 2014). Established company is
the main part of this type of businesses.
Scalable Start-ups
Quality is the main target for this type of entrepreneurship practice. It has been taken under
consideration that dynamically changes are the main prospect of this type of dentures. In these
particular types of the venture, change in the existing model is required to be taken under
consideration. As explained by Leković and Marić (2016), the main goal of this venture is to
make the goal proper and dynamic with the change of the entire model. Creative aspects are also
focused on this type of venture. Efficient personnel are required to deal with this type of
entrepreneurship ventures. As the name of the venture suggests, ‘scale' is the main goal of this
venture which indicates the total financial investment of the business with the context of capital
funds for the total expansion process. As commented by Bastesen and Vatne (2014), Growth-
oriented owner-entrepreneur is the specific typology, which falls under these types of the
venture.
Social Entrepreneurship
Societal system and people are the main targets of these types of entrepreneurship ventures. It
has been observed that the main aim of this kind of entrepreneurship is to develop services and
products for the betterment process of society. As explained by Morris et al. (2018),
Entrepreneurs of these types of the firm are fully focused on the efficient and effective
production of services for the environment and society.
Scope of Entrepreneurs
It has been observed that the small-scale business make more profits and scope than large-scale
business. Selling of service is more reliable and productive rather than manufacturing or selling a
product. The small business earns more result and profit than large businesses.
P2: Similarities and dissimilarities between entrepreneurial ventures
Types of
entrepreneurial
ventures
Attributes Goals Roles
Social Society, people, and Development of both The main goal of this
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environment are the
three specific sectors
for which social
entrepreneurship
ventures deal with.
The main agenda of
this type of
entrepreneurship is to
deal with service and
product for the
betterment of these
three attributes.
service and product
which will help to
build sustainable
factor towards the
growth of living
people society and
environmental
condition (Robb and
Gandhi, 2016)
types of
entrepreneurship is to
synthesize all the
services and products
for the improvement
of society, people and
the environment
Business Profit and revenue are
the two most
significant factors to
deal with these types
of ventures. Business
entrepreneurship
mainly focuses on the
sustainable
development of own
organisation or
business
Generation of good
revenue and
maximum profit from
the market with the
context of the
competitive
organisation is the
main goal and aim of
business
entrepreneurship
Competitive nature is
the main role of these
types of
entrepreneurship
venture (Wallmeroth
et al. 2018). They
mainly focus on the
quality of the product
which may fight with
the other products of
the present market
Revenue and profit
generation is solely
dependent on the
good productivity
Micro Minimum investment
and maximum profit
is the main target of
Generation of
maximum profit from
the established and
Small business has a
problem with space
but it deals with the
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these types of the
venture. It has been
taken under
consideration that
small-scale
businesses have very
small numbers of
employees whose
initial investment
range is also starting
with a very low
budget
specific industry is
the main goal of these
types of ventures
process of acquiring
knowledge related to
the industry
Macro Change is the main
target within the
organisation for these
types of
entrepreneurship
ventures
The specific goal of
large-scale
entrepreneurship is to
gain a large segment
of the market by
specifying the market
leaders (Leković and
Marić, 2016)
The main role of
these types of
ventures is similar to
a captain who can
understand both the
strengths and also the
weakness of the
corresponding market
Table 1: Similarities and Dissimilarities of entrepreneurial ventures
(Source: Created by Author)
LO2: Assess the impact of small business on the economy
P3: Relevant Data and statistics
Small-scale business in the UK has its own significance in terms of entrepreneurial ventures. It
has been highly observed that maximum youth has started their start-up business in the year of
2017 and 2018. As mentioned by Morris et al. (2018), almost 5000 start-up businesses have
taken place in the UK during this year. The economic and political condition of the country is
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highly sustainable in terms of starting the business related to small size capability. As a result,
the major contribution in terms of growth and profit is acquired by the small-scale business. As
stated by Colombo et al. (2014), legislative factors and political factors are going with the
systematic approach of small-scale business as these types of businesses are generating a large
amount of revenue for the government.
In terms of small-scale start-up businesses in UK, it has been reported that a record number of
businesses have started in UK with more than 650000 business in the main region of UK
(ukbaa.org.uk, 2018). According to the data presented by Centre for Entrepreneurs, it has been
observed that this particular number has crossed the record of the previous year. These particular
statistics have a great impact on the economic condition of the corresponding country. After the
tourism industry, the UK government earns revenue from this particular sector. Total GDP of the
country is also dependent on the extreme growth of the start-up business (ukbaa.org.uk, 2018). In
the race of newly set up for the start-up businesses, Birmingham Boasting has set a record with
more than 17,000 new entrepreneurs in small-scale businesses. Leeds and Glasgow have also set
a record by involving 7,645, 9,416 and 7,845 thousand of entrepreneurs respectively
(ukbaa.org.uk, 2018) [Refer to appendix 1].
It has been also taken under consideration that at about 27 million people are completely
employed under the range of small and medium scale of businesses in all around the UK
(Prosser, 2018). Both men and women are parallel interested in starting the businesses in terms
of small-scale businesses. It has been highly observed that the major growth factor of the
businesses related to this particular sector is earned due to creativeness and innovativeness. In
the case of small-scale business, it has been also observed that operational and strategic area is
significantly measured in terms of creativity and good production rate. 25.75% of the total
employment rate is measured with small-scale business in the UK, which is a great factor for the
GDP of UK (telegraph.co.uk, 2018).
In the case of a technical firm, this report also shows an effective result in the sector of growth. It
has been reported that 60% technical firm has launched in The UK which is comparatively high
than last year. Incorporation of new technology firm has reached in 4238, which is 76 percent
high than the previous year (Prosser, 2018). The broader aspect of this business is related with
the small-scale entrepreneurship, which rises with 40 percent by launching technical industry in
the UK (Prosser, 2018). Regional and local business has a great impact on the total revenue of
8

the country. In the case of international aspect, UK is also considered as one of the best countries
in terms of small-scale entrepreneurship practice.
P4: Importance of small business in terms of social economy
Small business enterprises are growing by huge numbers every day and are thriving in the
current economic climate. As of 2014, the turnover for small businesses has been around 1.6
million pounds (smallbusiness.co.uk, 2018). Moreover, small and medium businesses have the
capacity to provide employment to a large number of people and most of these jobs revolve
around the private sector. Hence, it can be said that SMEs play an important role in generating
employment opportunities within the UK. SMEs have reportedly given employment to 24.3
million people among which a hefty 60% lies within the field of the private sector
(smallbusiness.co.uk, 2018).
In terms of industrial growth, small business enterprises are the leading powers that have
overtaken even bigger businesses. As has been suggested by Davis et al. (2016), small and
medium business enterprises have contributed to an increase in the number of sales within the
market from the release of new products and services. Apart from this, most SMEs are
innovative in their approach and utilize resources to produce out-of-the-box products. Due to
small businesses, competition has grown within the local market and citizens of UK are able to
afford new innovative services with respect to lifestyle, health and retail sectors (Edwards-
Schachter et al. 2015). The presence of a large number of small and medium businesses has
fostered diversity within various geographical regions and has contributed to a boost in the
economy of regional markets. Smaller businesses have the advantage of flexibility compared to
larger businesses and are therefore able to give more employment to people and generate more
profits. Thus, SMEs have the power to influence larger business too in terms of adaptability and
resourcefulness (Mauer et al. 2017).
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LO3: Determine and assess the key aspects of an entrepreneurial mindset
P5: Skills and traits of successful entrepreneurs
Figure 1: Skills and traits of successful entrepreneurs
(Source: Edwards-Schachter et al. 2015)
Entrepreneurship is a concept that surpasses the mere confinement of business management.
Entrepreneurship urges a person to start a business through new levels of innovation and creative
abilities. A successful entrepreneur has strong leadership qualities, a high degree of self-
motivation and a strong sense of fundamental integrity and ethics. As stated by Rarick and Han
(2015), a leader is the one who is more than tenacious and hold the ability to influence and guide
individuals. Similarly, a leader has intense personalities and is motivated to undertake new
opportunities and challenges (Mauer et al. 2017). An entrepreneur also plays the same role of
challenging a new business set up and starting a new venture with help of a group of individuals.
Consequently, a high degree of self-motivation and integrity is required. Moreover, successful
entrepreneurs have a willingness to fail so that they can learn from their mistakes. They do not
lose hope due to failure and are hard-core believers of the statement ‘Failure is the pillar of
success. They can take the best decisions even in worst cases. Edwards-Schachter et al. (2015)
have stated that they tend to have a competitive spirit and understand the values of the strong
10
StrongsenseofethicsandintegrityInnovationUnderstandingvalueofastrongpeernetworkStrongleadershipqualitiesHighSelfMotivationWillingnesstofailSpiritofCompetitivenessWillingnesstolearnnewthings

peer network. They have the capability of working in groups and developing teams out of low-
skilled individuals.
Managers are mostly individuals who take responsibility for running an institution whereas
entrepreneur builds up new business and facilities. Managers mostly work with ongoing
operation and entrepreneurs are always start-up masters. According to Rarick and Han (2015),
the role of managers includes planning, organization, directing, motivating and coordination. On
the contrary, entrepreneurs develop new opportunities by gathering all resources required for a
productive venture. Managers mostly work according to principles of organisations that they are
working for whereas entrepreneurs work for their own business and woki according to own
principles.
Point-of-
Difference
Entrepreneurs Managers
Function Creating enterprise a supervising all tasks
including adjustment of financial risks
Responsible for controlling and
administering an organization
Focus Start-up Ongoing operations
Primary
Motivation
Achievement Power
Approach
to task
Informal Power
status Owner Employee
Reward Profit Salary
Driving
Force
Creativity and Innovation Preserving the status quo
Table 2: Difference between managers and entrepreneurs
(Source: As influenced by Autio et al. 2014)
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P6: Assessment of entrepreneurial aspects in terms of motivation and mindset
An entrepreneur is that person who can use innovative techniques repeatedly to bring out the best
in his business. As per the opinions of Autio et al. (2014), the personality of an entrepreneur
should be such that it inspires a positive mindset within workers and staff. A capable
entrepreneur should be able to take risks and formulate business ideas that will be able to push
the envelope in terms of creativity and content (O’Shea et al. 2017). The ability to take risks, to
transform risks into opportunities and to gain from those opportunities is something that should
come from within the entrepreneur. Hence, Piperopoulos and Dimov (2015) have commented
that the mindset to plunge into challenging circumstances in order to create something
meaningful starts from the childhood phase only. Therefore, the relationship between the
personality of the entrepreneur and the mindset of that individual is undoubtedly positive.
According to Rekha et al. (2015), the external environment also plays a major role in shaping up
the personality of an entrepreneur. Individuals who have been raised in a creative environment
free from parental pressure and prejudices also develop qualities that make up a successful
entrepreneur. In case an individual has been brought up in, a closeted environment full of
prejudices and pressure from parents, that particular individual will not be able to metamorphose
into a successful entrepreneur (Julien 2018). Since being an entrepreneur requires an open mind
to create ideas, it is necessary for the individual to have freedom of thought and expression. For
instance, Walt Disney was a farm boy who used to work at an art studio and served as a creator
of small-scale newspapers and magazines. Walt, however, had immense creativity at his disposal
and possessed a vision. He also had a determination to be a successful animation designer. With
his hard work and determination, Walt was able to translate his dream into reality when
Universal Pictures released the first Disney film.
Apart from possessing a creative mindset and a daring personality, an entrepreneur should also
have a different approach when it comes to problem solving and decision-making (Storey 2016).
In this context, education and experiences play a vital role in determining the kind of path that
will be chosen by entrepreneurs for taking decisions. For example, Oprah Winfrey was a person
who grew up in very rough conditions during her childhood. She had to grow up in poverty and
hunger for the most part of her life and was a victim of sexual abuse within her own family. It
was her will and determination to go beyond the ordinary and mundane that has made into the
person that she is today. Her success as a television show host can be largely contributed to her
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mental strength and determination to outdo her current circumstances. Winfrey's life experiences
came in handy when she was faced with problems and it is her awareness about her surroundings
that has helped her take certain decisions like plunging into a career in television.
LO4: Examine the different environments that foster or hinder
entrepreneurship
P7: Experience and background in terms of foster entrepreneurship
Every entrepreneurship approach has its own style and approach towards the growth of the
business (Wallmeroth et al. 2018). The different decision-making process, as well as different
formation, is followed with the small-scale business, which varies from business to business. It
has been highly observed that life experience and education are the positive catalysts for the
formation process of individual and the team personality (Morris et al. 2018). In the case of
entrepreneurship statement, it has been also observed that these factors are also effective. It has
been highly observed that some traits like self-management, self-motivation and specific
coordination are highly needed for every entrepreneur. These factors are coming through the life
experience and education for the corresponding sector (Jayawarna et al. 2014). Risk-taking
factors are also considered as one of the greatest segment in terms of entrepreneurship. This
particular factor comes from the previous experience, which can be mitigated through the life
experience.
‘Risk' is considered one of the effective words in case of entrepreneurship practice (Jayawarna et
al. 2014). Every business has its own risk, which cannot be assessed before starting the business,
In case of this particular situation, tremendous opportunity, as well as challenges, can be asked
before getting into the business. Richard Branson is considered one of the great entrepreneurs
and the successful businessperson who defines the risk perspective with proper significance
(Brooks et al. 2014). Oprah Winfrey is also considered as one of the successful entrepreneurs
who are well aware of one of the most influential women in the whole world. The concept of the
risk is completely related to the structure of the entrepreneur with generates maximum
opportunity and challenges for all the individuals related to the business. It has been highly
observed in terms of a start-up business that risk is associated with every start-up business and
13

every man and woman who is willing to make their business must be aware with the associated
risks for the corresponding start-up business.
Conclusion
It can be now concluded from the above study that the relationship between entrepreneur and
entrepreneurship practice is considered as one of the most important factors for a start-up
business. Several types of entrepreneurship ventures are taken under consideration, which makes
the similarity with typologies of the entrepreneurship. It can be also concluded from the above
study that the UK is considered as one of the greatest countries for making growth with the
entrepreneurship ventures. Both the revenue and GDP of the country is highly dependent on the
small-scale business of the particular country. Both the attributes related to small-scale
entrepreneurship, large-scale entrepreneurship, business entrepreneurship is considered with
specific roles and goals of the corresponding organisation.
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References
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Prosser, D. (2018) UK Technology Startups Hit All-Time High. Forbes [Online] 6 Apr.
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Websites
ukbaa.org.uk, 2018 UK business 15th November, 2018 Available at:
https://www.ukbaa.org.uk/news/uk-sees-record-numbers-new-startups-2016/
smallbusiness.co.uk, 2018 Small Business 15th November, 2018 Available at:
https://smallbusiness.co.uk/businesses-entrepreneurs-rise-linkedin-2539673/
telegraph.co.uk, 2018 The Telegraph 15th November, 2018 Available at:
https://www.telegraph.co.uk/finance/businessclub/11692123/Britain-hits-record-number-of-
startups-as-more-aspiring-entrepreneurs-take-the-plunge.html
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Appendices
Appendix 1: Growth in start up business in UK
(Source: https://www.gov.uk/government/publications/uk-digital-strategy/3-the-digital-sectors-
making-the-uk-the-best-place-to-start-and-grow-a-digital-business)
18