Entrepreneurship and Small Business Management

This document discusses the different types of entrepreneurial ventures and typology of entrepreneurship. It also explores the similarities and differences between entrepreneurial ventures. Additionally, it interprets statistics to show the impact of micro and small businesses on the economy and highlights the importance of small businesses and startups in the growth of the social economy.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship................1
P2 Similarities and differences between entrepreneurial ventures.........................................3
Task 2...............................................................................................................................................5
P3 Interpretation of statistics for showing impact of micro and small business on the economy
................................................................................................................................................5
P4 Importance of small businesses and business starts-ups in growth of social economy....7
Task 3...............................................................................................................................................8
P5 Characteristic, traits and skills of successful entrepreneurs..............................................8
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation...10
Task 4.............................................................................................................................................11
P7 Background and experience can hinder or foster entrepreneurship................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The entrepreneurs are those individuals who seeks to do more with the existing trend of
market. An entrepreneur puts all their efforts and hard work on to brining the revolution within
their respective share by imposing the effective ideas and practising unique as well as innovative
process of work, to create a distinct8ive image of themselves in the market. As these all the
qualities differentiates an entrepreneur from a traditional business tycoon (Akehurst, Simarro,
and Mas‐Tur, 2012). The entrepreneurs within the nation enforces a country to boost its economy
by generating optimum vale of revenue from their respective work fields.
To support this fact entrepreneurs establish the business ventures in the market. These
ventures are different from each others in various measures, such as according to their nature,
that could be public, private etc. or according to the size whether it can be small, medium or
large industry. This report paper here will determine all such factors such as differences and
similarities among various types of ventures and interpreting the statistical data to observe the
influence of small and micro enterprises on the economy. Along with that, the certain types of
typologies of ventures will also be discussed, the importances and explanation of the
characteristics of small / micro business and start ups is also mentioned in this project. Thus all
the aspects of entrepreneurial motivation and mindset impacts on the overall business
background and certainly on the personality of entrepreneur as well as of entrepreneurship.
Task 1
P1 Different types of entrepreneurial ventures and typology of entrepreneurship
The entrepreneurs are wholly accountable to establish new business ventures to perform
the trading of their goods and service to earn a standard amount of profit. Each of these said
enterprises have their own purpose of existence and have distinctive approach in the market
place which enables their respective stake holders to gain their shares of profitability. The
effective returns from these ventures in the form of profit and dividends are the standards to
determine the success and work flow of the respective venture. These business centres are
classified on the basis of their size, nature, purpose, scope, capital invested etc.
Entrepreneurial activity
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All those certain tasks and actions that helps a business to complete its operations for the
achievement of its determined goals and objectives are termed as the entrepreneurial activities
(Bakeman and Hanson 2012). These activities are an important part for the business growth and
development as all these activities are combined with the identification of innovative and unique
ideas which can significantly enhance the business process and can give the suitable alternatives
to improve the work operations and increment of effectiveness and efficiency in the respective
work flow.
Different type of ventures
Small business: The small business are considered as the post initial stage of
entrepreneurial section, as these types of business units have a determined number of employees
that can be approx 50, where each and every one is assigned with respective duties and
departments. The nature and working process of these business are not so developed according to
the market as these types of industries runs on a very specific budget and that is generally
formulated from the revenue and profits which are gained with the previous sales of products and
services. The small firms can also be formed out of partnerships, uni cell expansion or sole
proprietorship. The standard net worth of a small business is considered to be below €2 million.
The main small business units in United Kingdom are can be understood as the example of
Clarasys, Orion electro tech limited etc. These are the major example of the small business
where the companies like Orion electro tech incorporates its business with the limited number of
employees and the capital is thus expensed by setting the objectives of trading and manufacture
if electronics items as the priority.
Large company: The large companies are associated with the huge level of operations
and limit less trading and profit earnings. The distribution of products and service of a
respective large company is performed at a very large scale and in a very systematic manner.
Most of the large scale companies expand their business operation a global level . A huge
amount of capital is also invested at the beginning of these organisations. Big firms of United
Kingdom such as Marks and Spencer, in the private sector whereas NHS is also a renowned
company among the public sector of United Kingdom. These organisations have a wide area of
operations of manufacturing as well as for the marketing of their products. As per the example of
Marks and Spencer’s it can be considered that the firm employs most of its resources to maintain
and evolve the current position of the company within respective shares of market.
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Social enterprises: These organisation aims at resolving the social issues and works for
the betterment of society and region. These firms are developed with a view to understand the
social conditions and provide tools and solutions for the growth of society and welfare of the
communities. These organisations provides opportunities to the deserving and underprivileged
people to nurture their living standards in a better way. Earning profits and generating more
revenue is not even considered as a priority in such organisations as boosting the eco nomy and
social standards are both the integral goal of these companies. The major name in social
enterprises is save the children organisation, which works more like a NGO and NPO. The
organisation is well remarked with the service and care of the underprivileged kids. Those who
are suffering fro any dieses or those who does not have any guardian to rely on for the
livelihood. Save the children organisation has a limited staff and it gets funding for other
commercial enterprises multi millionaires and from other social events.
Typologies of entrepreneurship
The entrepreneurship ventures within various fields of business uses certain typologies to
run their business and achieve the determined goals and profits. These typologies are analysed
here in brief :-
Lifestyle Enterprise: The lifestyle enterprise emphasises on the betterment of living
standards and class of the consumers these enterprises are categorised under the social class
firms.
Growth firms: The growth firms are considered as the maximum revenue generating
companies. Earning and enhancing the profitability of the firm is the priority in such kind of
organisations (Bennett, 2014). The idea to promote the business is the basic component on which
the whole organisation implement its working process. These business are the part of small and
large industry type.
With the briefings that are given above the basic interconnection between entrepreneurial
ventures and typologies can be simply justified. As both the typologies works toward in a
direction to increase the higher standards of society by providing specific goods and types of
services in the market.
P2 Similarities and differences between entrepreneurial ventures
The difference and similarities between entrepreneurial ventures are described here as
follows:
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Differences
Basis Small business Large company Social entrepreneurship
Scale The scale of the business
is low and can be called
as small as the nature and
capital invested in the
operations are quite low.
For example the Orion
Electronics has the small
and limited scale of
operations
The business demands a
big amount of funds to be
invested in the
establishment and in
practising the operations.
For example companies
like NBC the scale of
organisation is determined
as large due to bigger
shares of market and
profit.
These organisations work
on the local level to
promote them so there is
no such criteria to
determine the scale as it
could a large or small
both can be social . For
example the NGO s like
save the child is very
well recognised as the
unlimited scale of
working firm that
provide the non profit
services at an effective
level.
Purpose The purpose here is quite
general and that is for
employing oneself and
earns the money for
better life cycle.
The aim is to earn fat
amount of profits by
practising businesses on
an extensive level.
The firm here has the
main goal of welfare of
the society.
Similarities
Basis Small business Large business Social enterprise
Need Small firms works to
satisfy the local
consumer needs.
Large companies
fulfils the demand and
needs of the respective
consumers but an a
vast level.
These are established
to provide the best
services to the society
without concerning
much about capital
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wasted.
Society upliftment These organisation
offers a back support
to the unemployed by
giving them jobs what
they want on the local
level.
The society gets
uplifted by taking
employment
opportunities in the
organisation and by
purchasing the high
standard quality
products in near buy
stores.
These organisations
offers all types of
social services which
are helpful for the
growth of the society.
Task 2
P3 Interpretation of statistics for showing impact of micro and small business on the economy
The business is significantly classified in three types of ventures on the basis of size. That
includes all the factors such as nature and structure of the business (Barringer, 2015). Thus the
segmentation of business is describes here as follows :-
Small: the small business firms have a criteria of recognising its nature as the employees
should be 50 or below 50. These types of firms believe in the hard work and less management.
Such organisations impacts on the economic and social factors of the country as it provides
employment to local and generate revenue for the growth. The small companies like Clarasys
have an important role that it plays effectively in the overall economic growth of the nation. The
company pays its taxes to the national authority that helps in the overall growth of United
Kingdom.
Medium: The medium scale ventures have a number of more than 50 and less then 250
employees to perform the work and operations in the company. These type of companies help
the society by providing the means of commodity at a regional and national level. Medium
organisations are termed as the crucial player in the complete development of the particularly
region or state in the country. The medium enterprises like Barclays makes the population more
stable by encouraging them to be self employed and imitate their own ventures.
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Large: these kind of organisations works with more than 250 individuals and generate the
revenue more than £ 22 million. The large companies are not limited by the political boundaries
of a nation, they operate on a global level with a enhanced level of growth and profitability. The
larger sectors of industry are enabled with the strong foundations that help a nation and its
elements to be relied on. Bigger organisations pay a heavy share of their income to the
government in form of Tax. Along with that the organisation give the opportunity to the wider
section of unemployed section in the society, that ultimately leads to the growth of economy of
any region and state within United Kingdom.
Impact of SME on economy
Local impact: the SMEs influences the local people to get engaged in the organisational
process. This enhances the level of public engagement on company and increases a potential to
grow from local level by providing the essential facilities to the local people. The local
environment is influenced more by the small industries as they directly contributes in the growth
of the society by understanding their need on the grass root level
Regional impact: The issues of unemployment are being solved by the SMEs as the
companies like such offers wide area of opportunities to the potential and deserving candidates
of a region. Along with that these companies also promotes the development and growth of the
lifestyles of the regional people by providing excellent and essential offerings That helps in the
development of the economical factor within the particular region.
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Illustration 1: Role of SMEs
(Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)
National impact: SMEs impacts on the national level by operating new and innovative
measures in the business, that helps in their growth and enhanced profitability. The more
financially sound companies are enabled to contribute in the national economy of UK by
providing various aids like giving employments and paying the right amount of taxes to the
giverment.
P4 Importance of small businesses and business starts-ups in growth of social economy
The small and medium business and the emerging start up in the country are acting as the
backbone and crucial support to the financial infrastructure of the respective nation. The
significance of these ventures on the economy of UK are as follows :
Job creation: the both sectors of business sector plays a crucial role in eliminating the
unemployment crises in the nation as the new and developing ventures faces the need of skilled
labor and work force to carry out their operations. The small business and start ups gives varied
opportunities thus both of them help in engaging the potential and deserving candidates in
productive activities. New and successful start ups influences many potential individuate to
execute their own idea of venture
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Improve living standard: the start ups and small business are in a way for the betterment
of life style of society by providing the distinctive services and products to the consumers as well
as by defining new terms and channels of opportunities in the area of business and
industrialization. The SMEs and Start ups both act as different in enhancing the standards of
livelihood, by giving the methods to earn and to introducing the society to the sources to
expend.
Economic growth: these both type of organizations covers a wide area of their respective
market share that helps in to determining the earnings of company in a desired level. The growth
of the economy of a nation is associated with the development of economic standards of its
business and trading ventures so with the constant growth of startup and small companies the
positive impact on nations GDP is quite ensured. The economic growth can be enhanced by the
start ups and small firms as these organizations are might be small and less effective in the scale
and performance terms but they act as the larger force that contributes in the overall economic
growth by contributing in the fund’s of the nation through paying taxes and giving employments.
Task 3
P5 Characteristic, traits and skills of successful entrepreneurs
Successful entrepreneurs has different skills, traits and characteristic that provides extent
level of contribution in their success story and differentiate themselves from business mangers.
Inherent of appropriate skills, traits and characteristic helps entrepreneurs in improving their
productivity and profitability in their respective company. Here, Simon Arora and Bobby Arora
has been taken as main entrepreneurs whose characteristics, skills and traits are specified below:
Characteristic
 Passion: Passion is determined as the essential characteristic that must be owned by every
entrepreneur as its encourage them to perform the same with maximum efforts and
contributes in accomplishing their goals in quicker manner which out issue. By having
this characteristics both the specified entrepreneurs could attain their goals in rapid
manner. This simply differentiate them from business managers who often loose control
over their patience level and does not able to take right decision. Self belief and hard work: By having strong self belief and hard work Simon and Bobby
Arora can easily perform their work and attain success as are having strong confidence on
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them self which helps them out in performing each task with hardwork. This
characteristic of entrepreneurs keep themselves different from business managers as they
are less hard working in comparison of entrepreneurs.
Skills
 Innovative thinking: Inherent of this skill provides contribution in bringing innovation at
workplace. This skill directly supports Simon and Bobby Arora in resolving their
workplace issues by bring innovation and attaining success effectively in rapid manner. Leadership: Both the entrepreneurs Simon and Bobby Arora are having extent level of
leadership skill which helps them in guiding each and every employee in competing their
work in timely manner. Here, it can be said that every leader does not have leadership
skill which reduces their own as well as team members performance at workplace.
Traits
 Confident: As being a successful leaders both the Simon and Bobby Arora are highly
confident which have supported them in developing their strong image at marketplace.
This confidence directly differentiate themselves from managers and also contributes in
taking rightful decision.
 Disciplined: It is highly important for every entrepreneur to perform each and every work
in disciplined manner which contributes in balancing their personal as well as
professional life in appropriate manner. Simon and Bobby Arora are highly disciplined
which maintains their confidence level in the work and contributes in achieving their
organisational goals in quicker manner.
Along with all the similarities there are some differentiation in these two entrepreneurs which
is stated as follows :-
Basis Bobby Arora Simon Arora
Skills The core skill of Bobby Arora
is of leadership that derives to
be a great leader in
organisation.
On the other hand, Simon
Arora has a distinctive
innovative approach to do the
work and implement new
functions.
Traits The image of Bobby Arora is
quite confident in the market
While the confidence level of
Simon Arora is comparatively
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and has a great ability to deal
with any kind of adverse
condition.
less as with his brother.
P6 Aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
OCEAN model is an effective framework that is supportive in explaining entrepreneurial
motivation as well as mind-set (Bhachu,2017). While the characteristics of an individual is
simply deriving a person to become a successful entrepreneur. The personality thus plays a
crucial role the appearance and the value of ones decision in their own perspectives determines
the skills and attitude of the leadership within an entrepreneur. Thus with the continuous success
and effectiveness of includes 5 aspects which is specified as below in detailed manner:
Openness: It is mainly related with adventure, emotions and ideas which simply reflects
that curiosity of entrepreneur towards the work that contributes in taking effective decisions
towards organizational work.
Conscientiousness: This aspect is mainly related with reliability and flexibility. This
simply specifies that every entrepreneur must focus on their core goals and objective instead of
focusing on other non required work which might delay in the attainment of organizational goal.
Extroversion: This aspect is mainly related with behavior of entrepreneur who must
remain energetic, talkative and familiar with the employees so that they can perform their work
at workplace in comfortable manner (Epifanova and et. al., 2015). Every entrepreneur is required
to have this as it supports them in accomplishing their organizational goals in quicker manner.
Agreeableness: According to this entrepreneurs must have to trustworthy and cooperative
behavior so that they can easily coordinate with others and perform their work effectively with
one another support.
Neuroticism: This aspect is highly related with various feelings like frustration, anxiety,
jealousy etc, all in one it can be said that negative response towards the situation which makes it
difficult for them to handle organizational situation. Entrepreneurs must avoid these kind of
feelings as with their inheritance it would be difficult for them to develop healthy working
environment at workplace.
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Task 4
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurs are those individuals who seeks toward success from every task and
business activity that they perform. The success and failure of the entrepreneurship is highly
determined by the personal experiences , educational and family backgrounds. Thus to support
this fact here the brief case information of Simon and Bobby Arora is given hereby .
Simon Arora
Personal Background: who was born in the year 1969. married to Shalni Arora, a natural
science graduate from Cambridge University . Simon Arora also completed his law from
Cambridge University. Now he has two daughters.
Experience: Simon Arora worked in McKinsey, Barclays and 3i on the designation of
analyst. Later on he moved towards the business sector with his brother Bobby Arora. Their
business was mainly based on importing and exporting. They both imported home ware
appliances from Asia and supplied it to the multiple supermarket and retail chains of United
Kingdom. Then they acquired B&M which didn't turned out well in the beginning, but with the
course of time the company started to evolve and grow and recently in 2017 both the
entrepreneurs Bobby and Simon encased their one fourth shares at 215 million for the public
recognisance of the company. The proper and adequate knowledge and skills in Simon Arora
was developed later on after the business began to enhance the profit margins and the need to
effective finance management was increased. Thus this need of the business developed the most
effective financial education in the working pattern of Simon Arora.
Bobby Arora
Background: Bobby Arora was born in January 1972 he is certainly having a title of
born trader by his brother Simon Arora. He has two siblings Simon and Robin Arora
Experience: Bobby Arora founded Orient Sourcing Services in 1995 along with his
brother Simon Arora, in which he does the work of import and exports. Then they both jointly
brought a below average retail chain named B&M in UK. It become a huge successful business
venture that deals in home ware and Bobby here has secured the position of director in the
company since 2005. currently he holds the same director designation in Heron Food Group Ltd.,
EV Retail Ltd. And Heron Foods Ltd. The knowledge and skilful education was quite limited
before the initial start of his career as a business but later on as the organisation began to expand
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Bobby Aurora gained a lot of practical knowledge and effective information about the market
and external factors or the business. This helped a lot to conquer the battle of most effective
trading in the period of heavy competition.
As here with the reference of personal and professional details of both the entrepreneurs
it is ascertained that the successes of any kind of entrepreneurship is totally based on the certain
background and personal characteristics. As it is not that simple to sustain and create the growth
path ways for the business in such a high competitive era within the markets. \
CONCLUSION
From the above findings in this project it can be ascertained that the values and ideas of
entrepreneurs are wholly accountable for the success and growth of their ventures (Bridge and
O'Neill 2018). The different types of venture inclusive of small, large and social firms that are
interlinked with each other through different typologies. The differences and similarities among
these type of organisation can be observed through their characteristics. Further, the skills and
tactics that are essential to be presented in an individual to be a great and successful
entrepreneurs are discussed here.
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REFERENCES
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Education India.
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revolution. Routledge.
Berglund, K., Johannisson, B. and Schwartz, B. eds., 2012. Societal entrepreneurship:
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Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
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(Bennett, 2014) (Berglund, Johannisson and Schwartz, 2012) (Bhachu, 2017) (Bridge
and O'Neill, 2012) (Carsrud and Brännback, 2011) (Dees, 2017) (Epifanova and et. al.,
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(Kelley, Singer and Herrington, 2012) (Ramadani, 2013)
Online
The Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-
businesses-in-the-uk>.
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