Entrepreneurship and Small Business Management

This document explores the different types of entrepreneurial ventures and their relationship with entrepreneurship typologies. It analyzes the differences and similarities among all the entrepreneurial ventures. It also discusses the impact of micro and small businesses on the economy and provides insights into the characteristics, traits, and skills of successful entrepreneurs.

Entrepreneurship and
small business
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define the different entrepreneur ventures and the relationship with entrepreneurship
typologies...............................................................................................................................3
P2 Analyse the difference and similarities among all the entrepreneurial venture................4
TASK 2............................................................................................................................................6
P3 Interpret and assess relevant data and statistics to elaborate how micro and small
businesses effect on the economy...........................................................................................6
P4 Explain the significance of small-business and Start-up's in the development of economy.. 8
TASK 3............................................................................................................................................9
P5 The characteristics, traits and skills of successful entrepreneurs......................................9
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
..............................................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Background and experience can hinder or foster entrepreneurship ...............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Entrepreneurship defined about the capabilities and willingness of an entrepreneur to
develop and carry out the business along with the risk in order to make the profit. Entrepreneur
refers to that person who is ready to establish a business by determining the business
opportunities, new techniques and resources to reach the business organisation at higher level
(Bosma, 2013). This study will cover the different type of entrepreneurial ventures along with
their relationship with the entrepreneurial typologies. The impact of the small and micro business
on the economy will be analysed by creating the differences and similarities between all the
entrepreneurial ventures. The importance of characteristic, skills and traits behind the succession
of an entrepreneur also will be discussed in this report.
TASK 1
P1 Define the different entrepreneur ventures and the relationship with entrepreneurship
typologies
In the present corporate world, there are various type of entrepreneurship venture are exist
such as small, large, social and scalable start-up's. These all have huge contribution in the growth
of the economy. These entrepreneurial ventures are defined beneath:
Small business: This is most common form of the business as it is easy to formed as an
individual can establish this business with little amount of money (Blackburn, Hart and
Wainwright, 2013). The main motive of this business is to make profit by accomplishing the
basic needs of the society. Scope of this business is wide as it is easy to establish due to which it
can be set up in the rural and backward areas also where large businesses are not able to reach.
The total income of this business is less then £5 million and the total number of the employees
are 100. For examples: Softwire or Oscar are small organizations which follow the lifestyle
typology in order to maintain the specific income of individual as well as lifestyle.
Large business: This is the largest form of the business as in this business venture the
organisational activities are operating at multinational level. They have huge contribution in the
development of the economy because they are offering a range of job opportunities and various
products and services to the people due to which they have immense scope also. The total
turnover of this kind of venture is 1.5 billion and have almost 5000 employees in the
organisation. For example: Asda, Tesco, Sainsbury's are the example of large organization which
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capture the huge market share and main aim is to maximise the profitability of the company.
These types of large organizations adopt the growth typology in order provide business growth.
Social enterprise: As it can be seen in its name that they are leading their organisation
only with the social purpose, not for earning profit. In the today's economy they have very wide
scope as because they are operating their business for social development (Alvarez‐Garrido and
Dushnitsky, 2016). Also, this kind of venture is highly contributing in economy development as
their main focus on development of every individual so that they will be able to contribute in
developing the whole society. Various examples are available of this business like CASA,
Doncaster Refurnish etc. These types of organizations follow the growth firm where they focus
on resolving social purpose not to earn profit.
Scalable start-up: These kind of organisations are operating their activities with the aim
of changing the whole world. The main focus of this type of business organisation is to develop
an effective model which will help the business to attain higher growth and success in the
marketplace. One of the main example of this kind of organisation is Facebook and this
organization also follow growth typology.
Typologies of entrepreneurship:
There are different types of entrepreneurial typologies in which every typology contains
its own benefits. Here are defined some of the entrepreneurial tyopologies:
Lifestyle enterprise: This enterprise is set up with the aim of maintaining a specific level
of income and improve the lifestyle of the people (Autio and et.al., 2014). The small business
firm is included in this category as they are conducting their activities to improve the lifestyle of
the people by providing them neccessary products and services.
Growth firms: This includes the large and scalable business organisation as they have
contribution in the development of the country as well as individual (Audretsch, 2012).
Thus, it can be stated that the entrepreneurial ventures and typologies have great relation
with each other.
P2 Analyse the difference and similarities among all the entrepreneurial venture
All the entrepreneurial ventures are different from each other according to their purpose,
scope, size and other elements, but in some cases they are represting some similarities also. All
the above discussed ventures are included in two categories private or public. The small, scalable
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and large enterprises are considered as private sector whereas the social enterprise is included in
the public sector.
Differences:
Basis Small businesses Large businesses Social enterprise Scalable Start-up
Purpose Their main
purpose is to earn
profit form their
day to day
activities.
The main motive
of this business is
to capture big
market share and
maximise the
profitability level.
To develop the
society at higher
level is the main
purpose of this
organisation.
They are
operating their
operation only
with the motive of
change the world.
Control It is controlled by
the business
owner (Brooks
and et.al., 2014).
This business is
controlled by all
partners
according to their
share or by an
individual it
depend on the
agreement.
This is controlled
and monitor by
the local
authorities as they
are indulging in
the social growth.
It is controlled by
that person who
generate the idea
of forming this
business.
Scale They have
invested little
amount of money
due to which they
are able to
conduct their
operations at
small scale and
cover a little area
of market.
The scale of this
can be seen by
their mult
business inational
operations which
helps them to
cover a big share
of the
marketplace.
While
This enterprise
provide their
services at local
level due to which
they are also able
to cover a small
area of market.
implementing the
strategies, they
have considered
whole world due
which the scale of
this business is
very huge.
Similarities:
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Basis Small businesses Large businesses Social enterprise Scalable start-up
Meeting the needs They are
operating their
activities to
accomplish the
needs of local
people.
The main focus of
this business is to
meet the needs or
requirements of
the world wide
people.
Accomplishing
the needs of the
local people is the
main motive of
this enterprise.
By developing
various new
strategies and
plans they are
trying to
accomplish needs
of people at world
wide.
Economy growth They have
contributed little in
the economy
development. Like
they are only
providing job
opportunities to the
local people.
The increment in
the national
income and higher
employment
opportunities is
possible because of
the large
businesses
(Edvardsson and
Durst, 2013).
They are
conducting
activities for the
development of
people as well as
economy. While
executing various
strategies or plans
they are consider
whole world due to
which they are able
to give higher
contribution in the
economy growth.
TASK 2
P3 Interpret and assess relevant data and statistics to elaborate how micro and small businesses
effect on the economy
The micro and small business have huge contribution in the development of the economy
as these both are easy to establish with little amount of money. They have contributed in develop
the economy by providing job opportunities, financial independence and by encouraging the
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innovations (Akehurst, Simarro and Mas‐Tur, 2012). The effect of the micro and small business
on economy can be understand by following points:
Small business: This business form employed almost 50 employees and their annual
turnover is up-to £5 million. They are able to cover a limited share of market as they have
invested little amount of money due to which they are conducting their operations at limited
scale.
Medium business: This business is able to cover a big market as compare to the small
business. The annual income of this business is almost £22 million and the number of the
employees in this kind of organisation is almost 250.
Large business: As this is the most largest form of the business as they are operating
their business operations at multinational level due to which they are able to capture a huge
market place and attain higher sucess and growth (Fayolle, 2013).
Contribution of small business:
Illustration 1: The role of Start-ups and Small Business in today's economy
(Source- The role of Start-ups and Small Business in today's economy. 2019)
As per the above graph, it can be stated that small business is more contribute as compare to the
medium and large business. It can be seen by the contribution percentage of these businesses in
the economy as the small business is contributing 48% in providing job opportunities and 99.3%
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in business to the country. Whereas, the medium and large business is providing 12% and 40%
employment opportunities and 0.6% and 0.1% business which is very less.
Local impact: The major benefit of the small and micro business is that they are focusing
on accomplishing the needs and demand of local people so that they can live a better life. Also,
they are providing 48% job opportunities to the local people.
National impact: Small and micro businesses are also playing a crucial role in the
succession of the economy. As they are providing the great help to the big industries by
providing them to necessary equipments, tools and give them information about the customers
and market so that they can operate their activities accordingly. So, that they can accomplish the
needs of the people of whole nation and can contribute in rising the national income.
Regional impact: The growth of the economy only possible when regional areas are well
developed. In this case, small and micro business are contributing in an effective manner. As for
establishing this business an individual needs little amount of money and resources which
enables them to conduct their activities everywhere either it is rurual or devloped area. Due to
this they, are able to give 33% turnover in developing the economy (Beckman and et.al., 2012).
P4 Explain the significance of small-business and Start-up's in the development of economy.
The small business and start up have huge contribution in development of the economy as
the main focus of this business in developing local people, specific region, and state. Other, these
both business ventures are very crucial as they are doing their efforts in order to bring
innovations, employment opportunities and competitor dynamics within their business
(Koellinger and Roy Thurik, 2012). The importance of these are defined blow:
 Providing employment opportunities- These both enterprises have a big role in
rendering the job opportunities to the people. By providing the huge employment options
to the people they are highly contributing in personal development of the people as well
as development of the economy.
 Support large industries: Other importance of these business forms is that it greatly
support the large industries by providing them effective and relevant information or data
so that they can operate their activities accordingly. Also, they are providing necessary
equipment’s, techniques and others key needs which will help them to run their business
smoothly without any crisis (Tessema Gerba, 2012).
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 Improve the overall infrastructure: As the big industries can be established only in
developed areas which needs a big amount of money. Whereas, the small business and
business start up can be constituted at everywhere like in the rural or backward areas also
which have huge contribution in the development of the country.
TASK 3
P5 The characteristics, traits and skills of successful entrepreneurs
For succeeding in the business it is essential for the entrepreneur to have effective
characteristics, traits and skills. This will enable them to operate their business operations
efficiently and motivate employees to do their work in a significant manner so that the desired
outcomes can be achieved. In this file the two British entrepreneurs have been taken which are
Peter Jones and Alan Sugar.
Peter Jones is a most famous businessman who is interested in media, mobile phones and
retail property. Another, Alan Sugar is a well-known business magnate, media personality and
political advisor. These both entrepreneurs were able to get higher growth and success in their
business because of their skills, traits and characteristics. Some of the skills, traits and
characteristics are defined below:
Characteristics of Peter Jones:
Passion: It is the most essential skill as it help the entrepreneurs to stay motivated
towards their goals and objectives. As the Peter Jones was very passionate due to which they are
able to cope up with varied hurdles of the business and get success and growth in their business.
Risk-taking: To become the successful it is necessary for the entrepreneur to take risk as
by fetching the risk they can discover something new and unique related to their business
(McGowan and et. al., 2012). As Peter Jones believes in taking the risk as it will enables them to
make effective strategies and plans so that the success can be achieved in a short duration of
time.
Skills:
Time management: In the business all the factors like planning, execution and iteration
all are crucial but it is necessary to manage all according to time. For instance, Peter Jones
always properly allocate time for all the activities so that they can achieve in the given time
period and beat the competition in the marketplace.
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Ability to listen: It is the foremost skill as it direct impact on the employees mind. This
skill tells that an entrepreneur must listen their subordinates ideas, issues and opinions and
consider them in their decision-making so Peter Jones motivate to do more efforts to accomplish
their goals and objectives of the business.
Traits:
Confidence: An entrepreneur must have belief on their abilities and actions. Every
entrepreneur have to face rejections so in this situation they need higher level of confidence to
keep going and overcome from the negative situations. Peter Jones has believe on his capabilities
due to which they are able to attain more success and growth of the business.
Vision: It is must for the entrepreneur to have clear vision of the business goals and
objectives. They should have the ability to show that at which level their business will be operate
in upcoming years. The Peter Jones have the ability to introduce the employees that what their
company want to achieve in future so that they will do their efforts accordingly.
Characteristics of Alan Sugar:
Ability to think before speaking: Alan Sugar have this characteristics where they think
before speaking because as a leader of market they have to make sure that what they speak.
People will follow them as an effective leader. So they every entrepreneur have to think before
speaking anything or about anything.
Humanity: It is the quality which is lacking in the candidates but according to Alan
Sugar it is the most important characteristic which any successful entrepreneur required to have.
In order to become successful person they have to understand the problems of their employees
which reduce their productivity or performance.
Skills of Alan Sugar:
Willingness to learn: According to Alan Sugar, every candidate should have willingness
to learn new things which make them successful entrepreneur (Sahut and Peris-Ortiz, 2014). Sir
Alan Sugar have this skill which make them a great business man in the leading market.
Education is the life time process which never end, so in every stage people have to learn but in
order to learn something they required willingness.
Creativity: This is an important skill which found in the Sir Alan Sugar and it make them
successful entrepreneur. Every entrepreneur should have creative mind which generate new ideas
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or innovation in order to provide growth in their business. It provide new experience and it lead
to generate new opportunity as well.
Traits of Alan Sugar:
Passion: This trait found in the Alan Sugar which help them to make an successful
entrepreneur. Those people have passion regarding their work, they become successful because
they love what they do. Alan Sugar put extra hours to into their business to make it flourish.
Strong work ethics: This trait is important which Alan Sugar have because strong work
ethics make people one who come office on time and leave always last after completing all the
activities or work. This trait make a individual successful entrepreneur and have work always in
their mind.
Basis Entrepreneur Manager
Purpose Their main purpose is to
formulate and expand the
business operations.
The main focus of the
manager on operating the
daily functions of the
business smoothly.
Motivation Their motivation of an
entrepreneur is its goals and
objectives.
Whereas, the motivation of
the managers comes from the
power of their position.
Risk taking Entrepreneur has the nature
of risk taker.
While, the manager is risk-
averse as his responsibility is
only to maintain the business
operations smooth.
P6 Aspects of the entrepreneurial personality reflect entrepreneurial motivation and mind-set
As every entrepreneur have different personality which reflects their entrepreneurial
motivation and mindset in a contrary manner. For analysing the entrepreneurs mindset and
motivation it is essential to adopt OCEAN model so that the personality of every entrepreneur
can be identify. This model comprises five factors which are described below:
Openness: This is the foremost element of this model which stated that an entrepreneur must
have the openness nature. This trait enables an entrepreneur to take interest in learning new
things and discover new opportunities for their business (Shaw, 2014). As the Peter Jones is very
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open in the nature due to which they are able to implement new effective changes in the
organization and take the advantage of the new opportunities.
Conscientiousness: It is the second component of this model which showcase the
thoughtfulness, goal-oriented behaviour, highly disciplined and other personality factors of an
entrepreneur. This trait of this model helps an entrepreneur to make effective plans or policies
related to their business and inspire them to follow for carrying out all the activities in a
significant way.
Extroversion: This reflects the sociality nature of an entrepreneur as how much they are
energetic, talkative and assertive. As this trait will help them to interact with the various people
and employees so that they will be able to identify about their needs, wants and expectations
from the organisation. For instance, Peter Jones was high in extraversion due to which he was
able to get higher success and growth in the business.
Agreeableness: This term tells about the concerted, amiable and kindness nature of an
entrepreneur. As the Alan Sugar is very agreeableness nature which motivates them to get
participation of the employees in their decision-making process so that their employees will be
motivate towards achieving the organisational goals and objectives.
Neuroticism: It is the last element of this model which reflects the level of negative
emotions or emotional stability of an entrepreneur. For becoming successful in the business it is
essential to control on the negative traits like jealousy, fear , unhappiness etc. For example Peter
Jones has high level of emotional stability which enables them to deal with the stressful situation
very successfully and patiently.
TASK 4
P7 Background and experience can hinder or foster entrepreneurship
The background and experience plays an important role in the success of an entrepreneur.
As the background defines about the family condition and education whereas experience tells
about the experience of the past job. If an entrepreneur has higher experience and well
background then they will be able to get success in short span of time otherwise vice versa. For
understanding in a better manner the two successful entrepreneur’s examples are taken.
Peter Jones
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Background: Peter Jones was born on 18th march, 1966 in Berkshire, England. His
belongs from a middle class family as his father was an air conditioning engineer. He had
competed his schooling from a private school and secondary education from Desborough college.
After this he had joined the Windsor Boys school for competing his higher education.
Experience: In the earlier stage of his life he had started to give tennis lessons for earning
some money. After this in the mid-twenties he start to give focus on manufacturing of PCs. In the
age of 28, he started working in Siemens Nixdorf which was a s British computer business
(Vanevenhoven, 2013). After all this he started his own initiative named 'Phones International
Group' which lead him in a higher position.
Allen Sugar
Background: He was born on 24th march 1947 in Hackney, London. He belongs from a
poor family as his father was a tailor. He had competed his education from Northwood primary
school and Brooke House secondary School.
Experience: In the earlier stage of his life at 16 years he had left his school and start his
small business of selling electronics and car aerials. In the year of 1991 to 2001 he was chairman
of Tottenham Hotspur. In the age of 21 he has formed his own company Amstrad which is
dealing in consumer electronics and in 2007 it was sold to broadcaster BSkyB.
Impact of background and experience on entrepreneurship
Positive impact: The background and experience has great positive impact on the
succession of an entrepreneur (Wright and Stigliani, 2013). As the Alan Sugar have higher
experience in job due to which he was able to successfully implement new ideas and strategies in
the business. Other, Peter Jones have great background as so that they did not have to face the
more hurdles in conducting their organisational activities.
Negative impact: As the Alan Sugar was belongs from a poor family due to this they have
to do more struggle in order to get higher success and recognition in this competitive world.
it can be understood that an effective entrepreneurship can lead the business in a higher position.
For operating all the business activities in an effective manner an entrepreneur must focus on
developing their skills, traits and characteristics so that they will be able to grow their business in
the marketplace.
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CONCLUSION
From the above study, it can be understood that an effective entrepreneurship can lead the
business in a higher position. The different type of entrepreneurial ventures like small, medium
and large have been discussed in this file. These all the entrepreneurial ventures have great
impact on the development of the economy and they are contributed in a different manner.
Further, it can be understood that an effective entrepreneurship can lead the business in a higher
position. For operating all the business activities in an effective manner an entrepreneur must
focus on developing their skills, traits and characteristics so that they will be able to grow their
business in the marketplace.
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REFERENCES
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Online
Essential Facts You Should Know about SMEs in the UK. 2019. [Online]. Available through:
<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-mediumbusinesses-
in-the-uk/>.
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