Entrepreneurship and Small Business Management

This report discusses the different types of entrepreneurial ventures and their impact on the economy. It explores the skills and traits of successful entrepreneurs and the role of entrepreneurship in motivation. It also examines the impact of different environments on fostering or hindering entrepreneurship.

Entrepreneurship and small
business management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Different Types of entrepreneurial venture type and relate with different typology............3
P2. Difference and similarities between entrepreneurial ventures..............................................6
LO2..................................................................................................................................................7
P3. Relevant data and statistics to illustrate micro and small business impacts..........................7
P4. Importance of small and micro business in socio economy growth......................................8
TASK 3..........................................................................................................................................10
P5. Skills and characteristic traits of successful entrepreneurs.................................................10
P6. Role of Entrepreneurship on the motivation of entrepreneurs............................................11
P7 Impact of different environments in hindering or fostering the entrepreneurships..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship can be defined as the ability of individuals to create new and innovative
business ideas that is involved in specific amount of risk so that supreme amount of profitability
can be achieved. In this report will outline different types of entrepreneur ventures based on the
scope, growth and development of the certain business operation. It will also discuss about
impacts of small and micro business on UK’s economy. it will also explain different
characteristics and traits of the successful entrepreneur i.e. Issa brothers who are British
billionaires. They made money in the petrol station and became successful to buy UK’s
supermarket giant Asda from US owners Walmart. So, they are currently known as successful
entrepreneur and co-founder of Asda. In this report will discuss about Issa Brothers and traits
which have made them successful entrepreneur in the modern era.
LO1
P1. Different Types of entrepreneurial venture type and relate with different typology
Small business entrepreneurial ventures
There are various entrepreneurial ventures that operates by owners without evolving
government activities at small scale. Such entrepreneurial ventures are controlled by individuals
or more than two partners and provides various type of services and products to the customer.
The major goal of these companies is to earn high revenue in the business market and establishes
good relationship with the customers by providing product and services (Defourny and Nyssens,
2017). There has a great example of Next plc. It is a small entrepreneurial venture which is
headquartered in England, UK. It is a British multinational footwear, clothing and home
accessories retailer organization. It operates in different countries such as UK, Europe, Asia and
Middle East by it’s 500 retail stores. It majorly focuses on user’s need, expectations and
experience and provides them values by providing desirable product and services on time. This
company has specialization for the clothing product segment such as kids wear, westerns and
traditional and others so that it enables to meet each customer’s expectation weather they are
male, child or female and old aged people. It has established good brand image in the customer’s
mind by offering high quality product and services to the customer. It has highly skilled staff
who helps to in fulfilling company’s commitment in the UK market due to this company often
gets competitive advantage in the business market. It has wide range of product segment that
supports in differentiating its brand image from the existing competitive brands. The main motto
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of the small entrepreneurial ventures is to maximize profitability of the business by offering
values to the customer’s money.
Large business entrepreneurial venture
Such entrepreneurial ventures are run by the owners or partners but profit shares between
owners and shareholders in respect expanding business in the global market for the development
prospective. These type entrepreneurial ventures are controlled by shareholders who are elected
by general public so that they can fulfil their needs and expectations time to time. The main
objective of the business is to offer value to the public money and in exchange generate high
revenue over the proposed product line. There is a great example of Asda plc that is a large
business entrepreneurial venture. It is headquartered in UK and operates into the retail sector
(Morris and et.al., 2018). It deals with wide range product line such as clothing, furniture,
grocery, mobile facility, home accessories, footwears, pet suppliers etc. and offers its services
and products across the world. The main goal of the company is to improve customer’s shopping
experience by offering products at affordable price and in return earns lifetime loyalty from them
for the brand and its product. Such companies gradually expand its business because it has main
aim not to compromise with the quality of products and services which impacts people lifestyle.
So, managers and co-founders of the Asda plc always adapts emerging changes successfully in
the business so that people gets high standard quality products and services which givers values
to their money.
Social Entrepreneurship
It is a social type entrepreneurial ventures that is organized for offering best quality
services and supports to the public in the form of medical support, financial support and others
so that they can live their life like other potential people. More than 165,800 social
entrepreneurship ventures have established their business in UK (Miller-Stevens and et.al.,
2018). there is the great example of charitable company I.e. Oxfam. It was founded in 1942, UK.
The main goal of the company is to enhance individual life by diminishing or root out all social
evils such as gender inequality, poverty and unemployment rate. This ventures always prefer to
fight against the injustice with people who unable to fight for their rights and supports them by
providing education support, financial supports and others. This organization allows number of
people to offers their service as volunteer. However, they do not get any salary against it. So, it
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will valid to say that it is non-profitable social entrepreneurship ventures which was established
by wide number of people for the human welfare.
Critically analysis typology of entrepreneurial ventures
 Innovative ventures
Entrepreneur of the lifestyle venture are usually associated with fulfilling the requirements of the
customers. The main objective of the lifestyle ventures is to enhance quality of people’s living
standard by providing innovative with good quality products and services. Such entrepreneurs do
not have good focus on the market as well as it’s competitors. These type ventures posses’
limited resources through which earn income but run it’s business in particular sector rather than
multiple one. The major limitation of the lifestyle ventures is that it needs highly creative
workforce and requires huge investment on R&D department so that it can give leverage to the
brand in the business market.
 High growth ventures
The main objective of the high growth ventures is to capture huge revenue over the proposed
product line to the customer. This venture mainly focuses on market in order to gain competitive
advantage instead of focusing on customer’s needs and expectations (Lubberink and et.al., 2018).
The workforce of these type ventures is highly innovative because they conduct different training
session for the staff time to time in order to improve their competency level in the workplace.
The reason behind is that these type ventures believes that if a company has good workforce then
they can be more successful. But it requires highly skilful staff and advanced technology for the
business exposure that is one of the major drawbacks of the high growth ventures.
 Scalable Start-up entrepreneurship ventures
It is a small start-up business. these type ventures start-up their businesses in the existing market
with the new business idea and gives values to the customers by offering valuable services and
product to the customer and in exchange earns less profit (Hayter and et.al., 2018). Such ventures
need strong management who determine opportunity and threats that can be minimized in order
to maximize profitability ratio of the business in the existing market. The main objective of the
small profit ventures is to increase potential of the business that ultimately enhance growth in the
business market.
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P2. Difference and similarities between entrepreneurial ventures
Difference between innovative, high growth and scalable business ventures
Basic Innovative Venture High Growth
Venture
Scalable Start-up
venture
Decision-making
authority
In these types of
ventures, investors or top
companies takes essential
decisions own by own
without involving staff in
order to gain company’s
objectives.
In these ventures,
decisions are taken
accordingly external
factors and
upgradation in
technologies.
In these type
ventures, members
take decision
collectively so that
maximum profit can
be gained by people
without worrying
about that in
exchange they are
getting less amount.
Scale of operation Lifestyle ventures have
big or small scale of the
operation based on the
availability of resources
and capital (Zaheer,
Breyer and Dumay,
2019). But in the most of
the cases, private
ventures have small
operations rather than
high growth ventures.
The scale of
operation in high
growth venture is too
wide rather than
lifestyle ventures. As
they establish it’s
business with the
motto to earn more
profit and growth.
These ventures have
limited funding
sources and resources
so they have small
scale operation in the
business market.
Objectives or
goal of the firm
The main objective of the
lifestyle ventures is to
generate more profit by
offering high standard
quality products and
services to the customers
High growth ventures
have motto to capture
large market by
launching new
product or services
which is beyond from
The main objective of
the small scale
ventures is to earn
sufficient amount
through which they
can earn their
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and always focuses on
improving customer’s
shopping experience so
that in exchange,
entrepreneur can earn
more profit from them.
the customer’s
expectations.
livelihood as well as
their family through
effectively operate
it’s business in the
business market.
Similarities between innovative ventures, high growth ventures and small scalable business
ventures
Management: It is one of the most common similarity that finds between all these three types
ventures. As management is important for these ventures to manage different busines activities
so that framed objectives and goals can be gained within timeframe. Managers at different
ventures ensures that resources are utilised effectively or not so that profitable outcomes can be
achieved by them.
LO2
P3. Relevant data and statistics to illustrate micro and small business impacts
(Alonso and Kok, 2020)
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Micro and small business houses have put a huge impact over the overall economic
growth of the United Kingdom. It’s not taking much investment of resources and capital to start
these business which create more ease for the stakeholders to initiate the micro and small scale
businesses. In United Kingdom the growth of the country could support the government to
increase the per capita income of the people based in United Kingdom. This has given more
support to the people in United Kingdom in respect to morale and financial support to initiate the
micro and small level of businesses in United Kingdom (Betton, Branston and Tomlinson, 2020).
Government also supported all the business houses operated in United Kingdom especially to the
micro and small business houses in allocating financial and financial assistance to support these
business so they can address early growth in the business and provide better operational
efficiencies to achieve the best level of productivity against the business operations undertake by
company.
As per the economic reports of United Kingdom it is depicted that approximately 99% of
the overall businesses operated in United Kingdom are belong to the micro or small business
scale. The huge number of businesses belongs to either the micro business or small business
category allow these business houses to contribute massively in the overall economic growth of
United Kingdom. Micro and small businesses are account of approximately 6 million that project
the massive amount of population in United Kingdom which reflect the 99.9% of the overall
business population. The turnover of the micro and small business houses is registered at £2.3
trillion which is approximately 52% of the overall turnover of United Kingdom (Ahokangas and
et.al., 2016). This is a massive number that reflect about the significance of micro and small
businesses carry in the overall economic growth of United Kingdom. This number relate to the
micro and small business houses reflect the strong dominance these businesses carry in the
United Kingdom. They contain small capacity and potential to entertain business operations and
even in the limitations they are associated with against the business operations they undertake
due to the restricted resources this is very interesting and positive contribution these business
houses make in the overall economic growth of the United Kingdom. Gross domestic product is
a key reflector about the significance of certain business community in the overall growth of
country. Micro and small business houses as they dominant the business sector in United
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Kingdom which also makes them capable of catering the massive employment opportunities in
United Kingdom. Employment creation is a huge concern government all across the globe and
especially in United Kingdom is facing as all possible approaches are tried and tasted that can
deliver the best possible employment opportunity in the country. It is estimated that micro and
small scale business houses are associated with the 16.8 million approximate number of jobs in
United Kingdom that depict the 61% of the overall employment in the United Kingdom. This is a
huge number which denote that these micro and small businesses operating in United Kingdom
are giving employment opportunity to all types of graduates and also to experienced
professionals also which further improved the significance of the micro and small businesses in
the overall development and growth of United Kingdom.
P4. Importance of small and micro business in socio economy growth
Micro, small business houses and start up are contributing massively in the overall
economic growth and development of United Kingdom. Following are the points demonstrate
about the significance and importance micro and small level business houses put in the overall
improvement of the socio economy.
Massive contribution in socio economy
Micro businesses, small business and start up could take over the entire business sector in
United Kingdom as in all respect they are contributing more effectively as compare to the large
business houses based in United Kingdom. The strong dominance of the micro and small
business houses in the United Kingdom make them capable of improving the scale of socio
economy in United Kingdom. Socio economy is directly associated with the betterment of
society in various respects and micro, small businesses and start up are directly associated with
the basic people of society which allow them to cater better needs of the society. Especially the
employment creation which they make allows them to contribute in the overall growth of the
socio economy in the best possible ways.
Meet the society need effectively
Micro, small business houses and start up could meet the needs and requirement of
society in more effective manner as compare to the large scale business houses. This aspect
associated with the micro, small business houses and start up make them more capable and
effective in context to the socio economy as compare to the large business houses (Molthan-Hill
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and et.al., 2020). In context to the society its important to meet the needs and requirements of
society and these businesses could contribute in this aspect massively.
Contribution in innovation
Micro, small businesses and start up contain limited amount of resources which make
them drive towards innovating in the business practices. They try to deliver the same practices
which large scale business houses are delivering but in cost friendly manner that also improve
the scale of these businesses in respect to the socio economy growth (Banti, 2020). Innovation is
an important factor associated with the society and these business houses could contribute
massively in the socio economy by attracting more innovative ideas and beliefs.
Employment creation
Micro, small business houses and start up played a significant role in order to generate
more employment opportunity in United Kingdom. This is a key contribution these business
houses could make in the growth and development of socio economy in United Kingdom. They
cater employment to all young and experienced professionals which further improve the
importance of these business houses in context to socio economy.
The above mentioned points reflects how the micro, small business and start ups operate
in UK could contribute and significantly improve the scale of socio economy in United
Kingdom.
TASK 3
P5. Skills and characteristic traits of successful entrepreneurs
Entrepreneurs are the individuals who creates new business by bearing many risks along
with enjoying most rewards. They can be considered as the innovators, source of new ideas,
services, goods and the business or the procedures. Though the managers play a major role in the
success of organisations but the entrepreneurs also do this in a different way. An entrepreneur is
considered as a visionary which is responsible for converting an idea into a business which make
the owner of business by bearing all the financial as well as other risks (Kerr, Kerr and Xu,
2017). Managers on the other hand, becomes an employee who works for the salary.
Following are the characteristic traits of entrepreneurs which makes them successful and
different from managers:
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Creativity: Whoever the employers are, they always want to hire the workers who have ideas
which are out-of-the-box. They do not want the employees who do not only complete the
assignments given to them but also come up with unique and the best ideas (Bortz, 2020). This
can be identified by discussing about the two billionaire brothers of UK- Zuber and Mohsin Issa.
If they were not creative, then they could only extend their petrol pumps in many other countries
but due to their creativity, they decided to merge the retail store with the petrol pumps which
gave them a rapid success and made them the successful entrepreneurs.
Vision: The entrepreneurs always believe in keeping an eye on the big picture which makes
them the better employees. On the other hand, managers always think of achieving the vision of
the company. Vision is all about strategic planning (Cohen, Kaspi-Baruch and Katz, 2019). The
entrepreneurs are not from the beginning but they observe while working as employees that in
which direction the company is going by identifying various challenges. Though Zuber and
Mohsin owns more than 5,200 petrol pumps but still they had their visions of doing something
new and great. They included the retail stores in their petrol pumps by giving cold drinks to
whom who come for the petrol services.
Risk Tolerance: This is the main characteristic trait which decides that the person will become a
manager or an entrepreneur. Every employer wants that they grow their business at a rapid pace
which involves some sort of risks and change. But when the real game of business starts, the
evaluation is done. Most of the people at the time of risks, quits the business or the step taken.
But those who face the risks by making strategies and take the risks as the opportunity and
develop themselves and the business. This can be seen clearly by the example of the billionaire
brothers Zuber and Mohsin Issa who did not lose hope when the oil companies sold off and
closed their petrol outlets in the high street. They did not do this but they developed a strategy in
which they can focus on the petrol pumps also and can earn in the retailing sector. So, when the
retailer companies were deciding to merge petrol pumps in their stores, these two brothers
implemented their strategy to add the retailing to the petrol stations where he motorists when
come to use the petrol services can pick up the fizzy drinks. This is now extended as they also
offer fast food, groceries and the takeaway coffee.
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P6. Role of Entrepreneurship on the motivation of entrepreneurs
Entrepreneurs help in bolstering the development of economy, creating jobs and inventing
the products and services that leads to the better place. The mind-set of the entrepreneurs is
unique which states that entrepreneurs must be creative, highly motivated towards success,
communicative and open to failure and risk. The personality of the entrepreneurs reflects the
following things which impacts the motivation and mind-set of them:
 Positive mental attitude: The positive attitude and outlook are must for the successful
entrepreneurs as the mind-set is the one which sets the company and impacts its culture. The
entrepreneurs have the attitude which is positive as they learn to not ignoring the bad things
but try to reframe them by the response (Şahin, Karadağ and Tuncer, 2019). They focus on
identifying the bad things and tries to invent solutions for it. Positive attitude describes the
personality of the entrepreneurs.
 Persuasive Communication Ability: Entrepreneurs are the persuasive individuals. They are
considered to be the inspiring leaders who tend to become the stellar bosses. The ability to
communicate and presenting the ideas make the entrepreneur’s personality more attractive.
When the entrepreneurs can communicate easily and express their opinion easily, then there
are no chances of mental instability and stress (Vodă and Florea, 2019). This attitude of
entrepreneurs motivates them and make their mid- set positive.
 Tenacity and learning from failure: It is obvious that when a business is started, the
businessman starts by evaluating the success but it is also confirming that whenever growth
or change happens, failure is faced. This is the time when the decision of entrepreneurs is
made. Therefore, this is the main aspect of the personality of entrepreneurs (Smith, Hamilton
and Fabian, 2020). They do not fear from failing instead they learn from the mistakes they
made and strives hard not to repeat the mistakes again thereby doing the upcoming tasks with
perfection.
 Intrinsic Motivation and Drive: Entrepreneurs do not learn from others or wait for someone
to push them to do anything, instead they are self-motivated. Those who start their business
are already motivated as they have poured their sweat, blood and tears into the company and
also mortgaged their future for opening the doors of the business (Kozubíková and et.al.,
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2017). Also, this leads to fuel the motivational drive. Entrepreneurs are responsible for the
intrinsic motivation of themselves as well as of others.
P7 Impact of different environments in hindering or fostering the entrepreneurships
There are many entrepreneurs whose environments, backgrounds and the family also
impacted their entrepreneurship either by hindering or fostering their success towards being
entrepreneur (Mawson and Kasem, 2019). Some of the most successful entrepreneurs whose
background and environment have impacted their entrepreneurship are as follows:
JK Rowling: One of the successful women in the world just because she did not give up in the
worst times and kept going on. Born in 1965 in Sodbury, England, she began writing at the age
of 6 with a story named Rabbit which was unfortunately never finished. At the age of 7 her idea
of considering a boy a wizard became a book. In the same year, she faced a mishap as her mother
died due to Multiple Sclerosis and in order to come up from that grief, she came Portugal to
teach English. There she married a journalist named Jorge Arantes of Portuguese television. But
unfortunately, the marriage could last for only 1 months. Then she returned to England as a
single mom of one daughter named Jessica. She was facing poverty and was suffering from
depression. She even became unable to raise her daughter. She continued writing in cafes about
the Harry Potter and Philosopher’s stone. Her manuscripts were rejected by many British
publishers. But fortunately with her continued hard work, she was signed up for her both books
by receiving a payment of £10,000. The Philosopher Stone gave her a great success. As she was
a girl, the publisher feared that may be some of the boys don’t prefer the books written by the
girls so her books were named by her initials. By continuing writing, she was becoming the
highest earning as her books were giving her great progress.
In 2000, her income was around £20.5 million and when her first film came named Harry Potter,
it gave her earnings of $100 million (The story of JK Rowling, 2020). This is how it can be said
that it is not important that the environment of the entrepreneurs supports them but it is them
who keeps going and never gives up which made JK Rowling the most successful and highest
earning woman in the world.
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The another example can be of Peter Jones, who was famous for his role in the BBC TV series
which was named as Dragons’ Den. This was made possible just because of his savvy business
sense and ambitious nature. This doesn’t mean that his life was easy and plain sailing. Due to his
certain bad decisions, he even lost his home and business which made him sleep on the
warehouse floor. When he was a child he always dreamt to become a millionaire. Peter was
interested in tennis but was passionate about economics. So he combined both. Also, he had an
interest in computers which made hi sell those too along with opening a cocktail bar. Due to
some bad decisions and bad circumstances, he left with nothing, no house, no office and lost
millions of pounds. He started at the age of 28 from the scratch. He started establishing the
Phones International group in 1998 which made him earned £14 million in first year (Tucker,
2020). He did many things then. He them established a TV production organisation and made
many properties then. He became the only original Dragons Den personality. Now he is one of
the most successful entrepreneurs in UK.
This is how, it can be examined that the environment, background and the experience can hinder
and foster the entrepreneurships.
CONCLUSION
This report has summarized that entrepreneurs requires to have different skills for
becoming a successful entrepreneur. It has stated that different scale of operations and objectives
of the private, public and voluntary companies are quite different from each other’s.
Entrepreneur posses’ various skills and characteristics i.e. risk-taking ability, innovation and
creativity that supports in running business smoothly. In last it can be summarized that
entrepreneur personality always reflects their motivation level and mind-set which helps in
leading growth and expansion of business in specific business sector.
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Online
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