Entrepreneur and Small Business Development

This report covers the examination of various types of entrepreneurial business and their relations with entrepreneurship typology. It also includes the similarities and differences between different entrepreneurial ventures. Furthermore, it discusses the impact of micro and small businesses on the economy and the importance of small businesses and start-ups on the growth of the social economy. The report also explores the background and experience that affect the process of entrepreneurship.

Entrepreneur and Small
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial business and relations with entrepreneurship typology.................1
P2 Similarities and difference between different entrepreneurial ventures................................3
TASK 2............................................................................................................................................7
P3 Impact of micro and small business over economy...............................................................7
P4 Importance of small businesses and start-ups on the growth of social economy..................8
TASK 4............................................................................................................................................9
P7 Background and experience affect process of entrepreneurship............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is an activity of establishing a new business by bearing all the risk and
uncertainties. Entrepreneur in the one who bear the risk, develop organisational structure and
enjoy maximum share of profits. This report cover examination of various types of
entrepreneurial business and explanation of its relations with the typology of entrepreneurship.
Report also include the similarities and differences between entrepreneurial ventures. Later the
report comprise of assessment and interpretation of data and statistics to demonstrate the
influence of small business on the economy. Further the report also cover the explanation of
importance of small businesses and ventures on economical development of the country.
Moreover the report also determine the qualities and skills of successful entrepreneurs that made
them better from other business managers. Further the report include the assessment of reflection
of entrepreneurial personality over the entrepreneurial motivation and mentality. Lastly the
report examine background and experience that can obstruct or boost entrepreneurship
(Mamabolo, Kerrin and Kele, 2017).
TASK 1
P1 Types of entrepreneurial business and relations with entrepreneurship typology
Types of Entrepreneurship
Small Business Entrepreneurship: Small businesses are those enterprises which are
privately operate by small number of individuals. The activity of establishment and running of
small scale business by an entrepreneur is called small business entrepreneurship. Small
businesses are mostly earn marginal profit. Their aim is to just earn sufficient money to
comfortable livelihood of them as well as their families. Sole proprietorship, corporation and
partnership firm are included in the category of small businesses. Some of the examples of small
business entrepreneurship are salon, grocery stores, gym, and retail store (Wang, Jessup and
Clay, 2015).
Scalable Start-up Entrepreneurship: When an entrepreneur starts a business with a idea
of ease the working of people than this type of entrepreneurship known as scalable start-up
entrepreneurship. Start-ups hold very less portion in the composition of all businesses. Mission
of starting a Scalable Start-up by entrepreneur is to alter the world. Some of the examples of
Facebook, Instagram, Uber, Igloo and Revolut.
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Large Company Entrepreneurship: In this entrepreneurship, large firms do the
operations of business. Company launches new products to match the changing taste and
preference of the customers with upgraded technology. Company launch new product with added
features to attain the objective of sustainability in the market. Large companies have huge
potential of executing tough plans that are very difficult for other business. Example of large
company entrepreneurship is E-Commerce giant Amazon (Ratten, Dana and Ramadani, 2017).
Social Entrepreneurship: This type of entrepreneurship has been practice for welfare of
the society. The main motive of social entrepreneurship is to help the needy people of the
society. These organisations does not work for profit instead they work for catering to the needs
of the society. One of the renowned example of social entrepreneurship is Safepoint Trust. It is a
start-up opened by Marc Kosla. The motive of this start-up is to provide cheap syringes to under
subsidized hospitals.
Types of Entrepreneurs
Innovators: These are the one who brings new establish a business with the new
innovative idea. Their mission is to change the world by providing new exceptional services to
the people. The are basically deals in services instead of goods. The type of entrepreneurship
innovators adopt is scalable start-up entrepreneurship. Advantage of innovative entrepreneur is
that innovator can take all the credit of success of business. Another advantage of being
innovator is that they face minimum competition in the starting. Limitations of being an
innovator is that it requires lots of investment to execute new plan of business. Also equity
shareholder denied entrepreneur in making some profitable decisions. Best examples of
successful innovators are founder of Apple Steve Jobs and founder of google Larry Page
(Britzelmaier, Häberle and Landwehr, 2015).
Hustler Entrepreneur: Those entrepreneur who start with small business with common
idea in hope of becoming big in future are called hustler entrepreneur. Small business
entrepreneurship is suitable for hustle entrepreneur. This type of entrepreneurs are usually have a
ideology of working hard towards the goal instead of smart work. Workers do extreme hard
work to accomplish their objectives. Hustlers avoid any kind of distractions and laser focus on
goals. They give priority to dis comfortable work and over comfortable entertainment. Benefits
of becoming a hustler is that low capital is needed to start the business. Limitations of becoming
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a hustler is that their ideology of just working harder and raising capital for expansion limit the
growth of the business.
Imitators: Those entrepreneurs who copy existing business ideas from the previous start-
up and start a new business with certain improvisation. They take all effort to make a existing
products better with additional features. Innovators possess some characteristics of innovators
and some characteristics of hustlers. They are dynamic in nature and keep plenty of confidence
in themselves. Advantages of Imitators is that improvisation of existing business idea by filling
the gap is easier and stress free compared to establishing a business with novel idea. Imitators
can easily monitor and evaluate the success of business by benchmarking performance with first
hand idea. Entrepreneur can avoid mistakes committed by innovator. Disadvantage of refining
original business idea is that capturing market share already occupied by start-up is very difficult
(Ratten, 2016).
Researcher: This type of entrepreneur avoid failure in any cause by proper conducting
extensive research of all dimension of the market. Research entrepreneur starts a business very
carefully to avoid probability of failure. Business plan is executed with an ideology that there
should be high chances of success. They study all aspects of internal and external factors and
execute plan with definite success approach. Advantage of researching all the dimensions are
that there will be minimal chances of failure of business. Disadvantage of researching is that
reduce the speed of execution. It also hinder growth in new venture because excessive risk
resistance (Burns and Dewhurst, 2016).
Buyers: These entrepreneur usually prefers to buy already well established business
instead of starting of new one. Buyers have wealth in abundance. They also possess the expertise
of assessing businesses with long term growth perspective. Buyers also search the most
appropriate person to operate and grow purchases business. Merit of purchasing an existing
business is that it is very risk free activity. Also there is no need to think about innovation and
improvisation. No need for expenditure in marketing. Demerit of being buyer is that a
purchasing a well running business is a very costly affair.
P2 Similarities and difference between different entrepreneurial ventures
basis Small enterprise Scale-up
enterprise
Large enterprise Social enterprise
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Meaning It refers to that
venture where
number of
employees are not
more than 50,
who perform their
roles and
responsibility
with limited
number of
resources.
It indicates the
group of people
who make an
efforts to change
the society with
their innovative
ideas.
It refers to that
market where
number of are
more than 250
and they perform
their task with
lots of resources.
This states that
venture where
people work for
the welfare of the
society.
Key attributes The main aim is
to survival of the
company in a
competitive
world.
Its key attributes
is to innovate new
product according
the customers
needs.
It main objective
is maximising
profits.
The key attribute
of this is to
community
welfare.
Innovation Small business
starts with a
common idea.
Entrepreneur
open a start-up
with novel
innovative idea
that can change
the way of living
of people.
Large scale
business brings
innovation at
extreme level as
they have huge
capital and
talented
workforce.
As Entrepreneur
incorporate Social
enterprise to help
the needy
population
segment of the
society without
expectations of
profit therefore
there is no need
of innovation.
Scope Small business
has low scope of
growth.
Scalable start-up
entrepreneurship
has huge scope of
Large enterprise
also have good
scope of growth.
Social
entrepreneurship
has no scope of
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profit. Many
unicorn was
earlier a start-up.
growth as their
motive is not
business
expansion.
Rate of growth Small businesses
rate of growth is
very low.
Start-up
entrepreneurship
rate of growth is
very high.
Large businesses
growth rate is
extremely high.
Social enterprise
growth rate is
also very high.
Profit Profit in small
scale
entrepreneurship
is marginal.
Profit in start-up
entrepreneurship
is low initially but
extremely high in
the long term.
Profit in large
scale
entrepreneurship
is also extremely
high.
Social
entrepreneurship
is performed for
profit motive still
employees need
money for living
therefore like
small businesses
profit in this
entrepreneurship
is also marginal.
Finance Entrepreneurs
start businesses
from their own
saving or from
their parent's
savings.
Entrepreneur
open start-up
from funds
rendered by
venture capitalist.
Venture capitalist
are rich investor
who do
investment in
start-up in which
they forecast long
Large businesses
entrepreneur have
enough retained
earning that they
does not relies on
investors or any
other external
source of funding.
Social enterprises
receive fund in
the form of
donations from
rich investors, big
institutions and
government.
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term profit
potential.
Technologies Entrepreneur use
low end
technologies
Entrepreneur
utilizes high end
technologies.
Businessman uses
extremely
advance
technologies.
In social
entrepreneurship,
social workers
uses low end
technologies.
Similarity between each entrepreneur
 They all work efficiently to enhance their performance and earns maximum growth.
 Every entrepreneur focus on the environmental consequences and find the best
opportunity in them (Burns, 2016).
 Each enterpriser have same motives and purpose behind existence.
 Each and every entrepreneur start business for earning profit either consciously or
subconsciously.
 All entrepreneur earns profit by fulfilling the needs of society.
 All entrepreneurs bears all the risk and enjoy maximum profit.
Difference between each entrepreneur
Basis Serial Entrepreneur Lifestyle Entrepreneur
Meaning An entrepreneur who
continuously brings innovation
in businesses.
Lifestyle entrepreneurs are
those entrepreneur who
operate their businesses over
the internet.
Finance Serial entrepreneur raise
finance from venture capitalist.
Lifestyle entrepreneurs does
not need any fund as their
start-up cost is negligible
(Matchaba-Hove, Farrington,
and Sharp, 2015).
Exit Strategy This type of entrepreneur
devise an exit strategy before
They does not need an exit
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business become completely
unprofitable due to intense
competition (Vargas, 2015).
strategy.
Location Serial entrepreneur work in
fixed physical commercial
property.
Lifestyle entrepreneur have
dynamic location.
TASK 2
P3 Impact of micro and small business over economy
In current environment small and micro business plays an important role in increasing the
UK economy by generating more employment, brings creativity in products
offerings,opportunities and develops monetary independence among companies. They are
explained below.
Micro Enterprise: As the name suggests micro enterprise is the extremely small
business with the workforce of not more than ten employees. Micro enterprises has been
operated in fixed geographical location. They raise finance from several non-banking finance
companies who provide fund to these enterprises known as micro finance. Micro businesses
create employment in the country. The capital required to start a micro business in service is not
more than ten lakh and in manufacturing the minimum finance needed are twenty five lakh
(Cole, 2018).
Small enterprise- This venture is start by not more than 50 persons with a annual
revenue up to £5 million. Because of minimum investment and limited resources it does not
increase its market share or size of the business. Small businesses can be of three nature
corporations, partnerships or sole proprietorship (Doern, 2016).
Medium business- Under this there are approx 250 employees with an income of £22
million that assist in to cover large market share and cover wide area in the market. It create a
postive impact on the economy of the UK by providing employement, creativity etc.
Large enterprise- In this enterprises are operates globally with maximum resources and
large number of capital which helps in earing more profits internationally. It crates a greate
impact on the nations economy becuase they increase employement, creates foriegn currency etc.
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They have huge potential of creating innovation in their existing prodcucts. They launches
variants of new products with additional features in core products.
Some enterprises are run by government while other majority of organisations are run by citizens
. According to the ownership firms are of three nature- private, partnership and sole
proprietorship. The detail description of nature of businesses are given below:-
Private Enterprises: These organisation are owned by citizens of the country. These
companies neither run by government nor public. The government does not intervene in the
operations of these businesses. The main objectives of private company entrepreneur is to make
profit by catering to the needs of society (Dana, and Dumez, 2015).
Characteristics of private enterprises
 Private enterprise is basically a business runs by group of individuals.
 The main motive of private firm is to make profit out of business.
 Private companies are not subsidized by government in any form.
Partnership: When two or persons jointly runs a business and distributed thier profits
according to their contribution in the capital then the business they are running is called
partnership firm.
Characteristics of partnership enterprise
 Two or more persons jointly contribute thier money in a single business.
 Partners cannot do any other business.
 The firm does not have its own isolated legal identity.
Sole Proprietorship: When is established and run by only person than that business is
called sole proprietorship (Bierwerth, and et. al., 2015).
Characteristics of sole proprietorship
 All the business activities are carried out by only one person.
 The sole proprietors cannot take unsecured loan for opening a business however
they can take unsecured loan for expansion of business.
 Business of sole proprietorerhip is not a isolated legal indetity. Business and
owner are treated as one legal identity in the eye of law.
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P4 Importance of small businesses and start-ups on the growth of social economy
Social Economy
It is a combinations of diverse organisation such mutuals, associations and co-operations
with common value and characteristics.
Importance of small businesses and start-ups
Small businesses and start-ups create jobs in the market. It reduces poverty and
unemployment. It also contribute to the growth of gross domestic product of the country. Start-
ups improves the standard of living of citizens by ease the day to day working with innovation
and advance technology. Start-up with good idea is major attraction of rich investors. It
generates revenue for both entrepreneur and venture capitalist. They insert healthy competitions
in the market which forces companies to offer highest quality products with reasonable price.
Large companies cannot provides enough in the market. This gap of unemployment is filled by
small businesses and start-ups. Start-ups bring innovation in the industry. It can reduce cost of
living. Start-ups are the major contributors in the rise of per capita income of the country
(Hodges, and et. al., 2015).
Small Businesses Start-ups
Small business establish with common idea. Start-ups opened with new innovative idea
Entrepreneur start business with own money. Entrepreneur open start-up with venture
capitalist money.
Scope in small businesses is limited. Scope in start-ups is huge it can become
unicorn if idea is profitable.
Entrepreneurial earns marginal profit If idea is profitable than sky is the limit of
profitability of business.
TASK 4
P7 Background and experience affect process of entrepreneurship
Larry Ellison: Larry Ellison is an entrepreneur and co-founder and former chief
executive officer of the famous Information Technology company Oracle corporation. Larry
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Ellison dropout University of Illinois in 2nd year even without taking final exams. Later, Larry
went to California to work in software companies. Central Intelligence Agency gave a contract to
develop a database. Larry along with co-founder created a relational database program. Finally in
the year 1979 oracle was released as the first commercial relational database management
system. Larry Ellison possess a dynamic personality. Larry was adaptable to change and
exceptional team workers. The entrepreneur possess genius level intellect. Larry strong will
power, determination, hard work, team work capability foster entrepreneurial process and finally
Larry Ellison emerged as the sixth richest person of the planet earth (Audretsch, Kuratko, and
Link, 2015).
Michael Dell: Michael Dell was born on 23rd February in the year 1965 in United States
of America. Michael is founder renowned laptop company Dell Inclusive. Michael is current
chief executive officer of newly emerge parent firm Dell Technologies. Michael was brought up
by middle class parents. Michael's father was a stockbroker and mother was orthodontist.
Michael has a keen interest in business. In tender age, Dell started investing in stocks and
precious metals. Dell complete schooling Memorial High School in Houston. Like many
entrepreneur, Dell is also a college dropout. Dell became successful entrepreneur because of
shrewd business mind, keen interest and consistency. Dell owns business mind since childhood.
In this way, Michael Dell's background, experience and education aid in becoming a successful
entrepreneur (Tiwari, and Goel, 2017).
CONCLUSION
From the above report it has been concluded that innovators and hustler entrepreneur are
suitable for scalable start-up and small business entrepreneurship respectively. There is some
similarities and differences between various types of entrepreneurs and entrepreneurship. All
entrepreneur run business in order to satisfy the needs of society. There is significant impact of
small, medium and micro in the growth of social economy. They are major contributor in the
growth of the company. MSMEs remove the dearth of jobs in the economy. They create jobs and
boost the gross domestic product of the country. All MSMEs are of three nature on the basis of
ownership that are private, sole proprietorship and partnership firm. There is remarkable
differences between startups and small businesses. Personality of Larry Ellison and Michael Dell
is suitable for entrepreneurship. Their traits foster their growth as entrepreneur.
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REFERENCES
Books and Journals
Audretsch, D.B., Kuratko, D.F. and Link, A.N., 2015. Making sense of the elusive paradigm of
entrepreneurship. Small Business Economics. 45(4). pp.703-712.
Bierwerth, M., and et. al., 2015. Corporate entrepreneurship and performance: A meta-
analysis. Small business economics. 45(2). pp.255-278.
Britzelmaier, B., Häberle, M. and Landwehr, M., 2015. Risk management in German small and
medium–sized enterprises. International Journal of Entrepreneurship and Small
Business. 24(4). pp.548-571.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cole, R.A., 2018. Bank credit, trade credit or no credit: Evidence from the Surveys of Small
Business Finances. Trade Credit or No Credit: Evidence from the Surveys of Small
Business Finances (July 31, 2018).
Dana, L.P. and Dumez, H., 2015. Qualitative research revisited: epistemology of a
comprehensive approach. International Journal of Entrepreneurship and Small
Business. 26(2). pp.154-170.
Doern, R., 2016. Entrepreneurship and crisis management: The experiences of small businesses
during the London 2011 riots. International Small Business Journal. 34(3). pp.276-302.
Hodges, N., and et. al., 2015. Women and apparel entrepreneurship. International Journal of
Gender and Entrepreneurship.
Mamabolo, M.A., Kerrin, M. and Kele, T., 2017. Entrepreneurship management skills
requirements in an emerging economy: A South African outlook. The Southern African
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Performance relationship: A South African small business perspective. The Southern
African Journal of Entrepreneurship and Small Business Management. 7(1). pp.36-68.
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innovation outcome expectations and culture on intentions to start informal business
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Ratten, V., Dana, L.P. and Ramadani, V., 2017. Internationalisation of family business groups in
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Tiwari, N. and Goel, G., 2017. Success factors of women owned micro and small enterprises in
India. International Journal of Entrepreneurship and Small Business. 31(4). pp.590-
608.
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performance and competitiveness: organizational learning and leadership
style. Procedia-Social and Behavioral Sciences. 169. pp.43-52.
Wang, X., Jessup, L.M. and Clay, P.F., 2015. Measurement model in entrepreneurship and small
business research: a ten year review. International Entrepreneurship and Management
Journal. 11(1). pp.183-212.
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