Entrepreneurship and Small Business Management

This document discusses the types of entrepreneurial ventures, the influence of small and micro businesses on the economy, the importance of small business in the growth of the social economy, traits and characteristics of successful entrepreneurship, and aspects of the entrepreneurial personality that influence mindset and motivation. It provides valuable insights for students studying entrepreneurship and small business management.

Entrepreneurship and small
business management
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table of Contents
INTRODUCTION...........................................................................................................................3
P1 Different types of entrepreneurial ventures and typology of entrepreneurship......................3
P2 Similarities and difference between entrepreneur ventures ..................................................4
P3 Influence of small and micro business on economy...............................................................6
P4 Importance of small business in growth of social economy ..................................................7
P5 Determine several traits and characteristic of successful Entrepreneurship...........................8
P6 Determine several aspects of the entrepreneurial personality that influence on the mindset
and motivation of entrepreneur...................................................................................................9
P7 How background and experience can hinder or foster entrepreneurship ............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship refers to setting of a business and managing it. there are many successful
entrepreneurs who runs large and small business. for becoming an entrepreneur, it is necessary to
have a unique idea and concept which is transformed into business. However, business needs to
managed in effective way to make it successful (Basco, 2019). An entrepreneur traits and
features differ from one another. usually, it is based on their education and background.
Furthermore, business needs to be managed in different way as per its nature and type.
In this assignment it will be described about types of entrepreneurial ventures and typology
of entrepreneurship and difference between them. Also, influence of micro companies on UK
economy and importance of small business will be explained. Moreover, it will be discussed
about traits and characteristic of entrepreneur and aspects which influence mindset and
motivation of entrepreneur.
P1 Different types of entrepreneurial ventures and typology of entrepreneurship
Entrepreneurial ventures are the firms that performs the functioning of designing ,running
and launching the business that is owned by the entrepreneur. Mention below are some
entrepreneurial ventures.
Micro entrepreneurial ventures- These are the one who are relatable to the small business and
also have the minimum number of the staff members.
Small ventures- They are the one who are basically interlinked to the small businesses as well as
have the less number of the staff members working within it (Usman, 2020).
Large enterprise- These are the firms that have generally large number of life span as well as
grow day by day innovating new products, variances and many more.
Typology
Survival firms- It is used to meet the financial obligations of the entity and also survive to the
extended, its mainly characteristic through employment freeze, cutting costs,laying off the staff
members (Ratten, Dana. and Ramadani, 2017).
Lifestyle entrepreneurship= The main aim of such kind of entrepreneurship is to undertake the
actions that will gives the reasonable living to the founders rather than incurring such kinds of
risks. The enterprises and small business also gives the avenue for the development of the
specified entrepreneurial cultures such as lifestyle entrepreneur (Basco, 2019).
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P2 Similarities and difference between entrepreneur ventures
There are several ventures of entrepreneur that are operates within one or oanother way but out
of them all have similarities that makes these ventures that are highly identical to one another.
Basics Public Private Social
objectives The basic
objective of
public enterprise
to maximize the
profits for
enhancing
shareholder value
The main
objectives of the
private firms is to
innovate products
and devices so
that they can
generate revenue
at high extent.
These are the firms whose main aim
is to provide the quality products and
also services to the entire
community.
Size Here the number
of the staff
members are
around 8000
Number of
employees within
public firms are
more than 100000
Here the employees that are present
in social organisation are depends on
their size
Structure The
organizational
structure of the
public firms are
highly complex as
well as consists of
large level of
hierarchical
Structure of the
private firms are
basically depends
upon the size and
no of the staff
members.
The structure of the social firms re
also focuses mainly upon the trustees
and also the board of directors
(Usman, 2020).
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Basics Micro small Medium Large ventures
Goals and
objectives
Does not have the
well structured
goals for their
firms as well as
work for
achieving less
profit
They are not have
the structured
goals as well as
these depend on
their survival.
Some of them are
non structured
while some of
them are
They provide
innovating
products as well
as services to
industry
They sustain in
market by
developing new
products and
services
Annual growth
rate/size
Annual growth
rate is 234350 as
it is very low
It's annual growth
is 36788
Growth rate is
around 3475
Growth rate is
45567
P3 Influence of small and micro business on economy
In an economy all types of business contribute to a great extent. they play vital role in
economic growth of nation. In UK there are many types of small businesses. they provide variety
of products and services to people to fulfil their needs. Also, they contribute in economic growth.
Micro enterprises
These are the firms which have the major part of the nation and have the great impact on
the whole economy of the United Kingdom. By managing the whole loss and profit. These are
the firms that are enhancing in United Kingdom over the time as well as the amount of revenue
that are generated is also increasing (Ratten, Dana. and Ramadani, 2017). As per the reports of
2018, the several numbers of the micro firms are increasing over the time is around 3.2 millions
to 4.5 millions. It focuses that this organization are the one that contributes around 84% of the
UK's total economy. Thus, the revenue has been increased that also contributes towards GDP of
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the United Kingdom. Around 96% of the micro business that mainly employees around 9 people.
These business are not aids top increase GDP but also contributes around 33% towards
employment. According to the 2019 these micro enterprises are higher comparatively medium as
well as large organization. At present it becomes a crucial part of the United kingdom 's overall
economy. These micro-enterprises all over turnover around 23% as well as collaboration
accompanied small enterprises that is up to 38% of the turnover.
Small businesses
Micro enterprise are not only one that gives their support in encouragement the economy of the
United Kingdom but also several other small enterprises also capable of promoting GDP as well
as economic position of the United Kingdom. As Per the report of 2017, around 5.2 million the
business that operates within United Kingdom are the small enterprises. Thus, the most number
of the people of the small business are sole traders who work independently not the employers
(Usman, 2020). These small business makes around 59% of the private sector within United
Kingdom. However, these are the business which are also called the backbone of the economy. If
talking about the employment number these small business contributes around 49% towards the
employment within the United Kingdom and also profit is generated by them more than the half
of the profit of the micro businesses. Small business within United Kingdom majorly earns
around 14 % and therefore forms a major link between high employment rate and economic
conditions. Thus, the Brexit within the United Kingdom has enhanced from 4.6 billions to more
than that and enhanced amount of revenue. These are the small enterprise that are regularly utter
to give innovative products to the consumers as well as becoming innovation oriented. Small
firm's commitment towards innovation are raises the living standard as well as profit ratio of the
People within United Kingdom. Nowadays high standard living is one of the major factor to
improves the economic growth of the nation (Urbano. and Aparicio, 2019).
P4 Importance of small business in growth of social economy
There is a great importance of small business in social economy. they provide various
products by identifying needs of people. Moreover, they provide employment in society and
enhance lifestyle of people by offering them new products.
Start up business poses a great impact with several nations ,the most crucial role that small
business brings is that it brings innovation within each as well as every point. There are several
exciting features regarding these start-up business that brings several innovative ideas. These
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innovative products have the power to full fill the needs with the public (Durst and Roth, 2018).
These businesses are focuses on existing ideas within market and leads to the growth of social
economy as well as requirements of the society is also accomplished. These are several
innovating products that aids the people to solve their issues and also at the same time becomes
trouble solver.
Small business and Start-up business are not focuses on their innovating ideas, but also at
the same time they are the one who contributes their social purpose for nation. Most of the small
business are also interlinked with CSR actions that are linked with economic, social and also
problems associated with environment for increasing their brand value. In this process, these are
the start-up gives education and also it commits to educate the children so the underprivileged
areas within rural areas or the very poor children those have weak financial conditions. These
are the people who later use their education for their working purpose and also becomes a part of
the economic growth of the nation (Usman, 2020). Therefore, by fulfilling the meets of
education start up the function they meet the crucial propose that is social purpose. The small
business provides jobs to the larger people of the nation as they contribute the great employment
rate of the nation. When these first start their business so that they can implement their
innovative ideas as these enterprises needs people who are highly skilled as well as ability to
generate several innovates solution for the issues. Therefore by giving jobs to such people, small
business are the one who creates more opportunity for them and within this manner ,these start
up business aids to give jobs as well as employment to the people who are even living within the
rural areas.
P5 Determine several traits and characteristic of successful Entrepreneurship
Entrepreneurs are those persons who are very highly motivated as it brings several ideas
to the execution as it can interact positively to the staff members. They are the kind of the people
who are not afraid to take risks but also at the same time it will also communicate employees
positively (Urbano. and Aparicio, 2019). They are also had capability to face the failures as
they are often see challenges as a part of their experience and also takes an opportunities so that
they are able to discover as a better answer. Entrepreneurs are also passionate about their entities
and also they want to do work hard as well as excel at the networking and also skilled to the
products of the entity and services.
There are some traits of Entrepreneurs are given below
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Such as Mark Zuckerberg is one the Entrepreneur who is known for his innovating work on the
social media platform such as Facebook, Facebook needs no introduction as Every generation
knows about it. Facebook is one of the favorite social media network where people can
communicate easily and it is also cost effective so it can by anyone by students, housewife,
business people, old people.
Vision oriented – By the help of the Facebook it offers a product that can be gives to more
connected and opens with the World.
Critical thinking skills- He is a kind of the personality that can be easily adapts the situations and
act accordingly. Facebook is several times facing security issues as people from all over the
world Criticized Marks Zuckerberg and puts on allegation them regarding breaching of private
personal information . But after such type of incidents Marks provides values to the persons as
well as provide end to end encrypted security system
Steve jobs- There is no introduction needed for this man, he is the inventor of the I phone as he
is the one who is passionate about his work ,at the age of 30 he was screwed from his own
company i.e Apple, but he is passionate about his work and makes once again come back to the
Apple and with more energy (Durst and Roth, 2018).
He has an ambitious personality as well as kind of the rebellious in his nature.
Characteristic
Risk takers- Mark Zuckerberg is a risk taker as well as he is passionate as well as dedciare
about his work
Skills – he has the time management skills
P6 Determine several aspects of the entrepreneurial personality that influence on the mindset and
motivation of entrepreneur
A entrepreneur success is determined with its mindset and personality. the mindset reflects
skills and capability of entrepreneur and personality shows how they deal with challenges.
Entrepreneurship is a path of challenging and rewarding (Simba. and Ojong, 2017). There are
several characteristics that can be shared through several successful Entrepreneurs For example
Optimism- There are several entrepreneurs who are successful and consider challenges as the
learning opportunity as they are also able to maintain an attitude of buoyant. With the help of
optimistic it made realize the possibility of a situation that can be explored and at the same time
they also builds their confidence and also utilities the lesson from each and every situation. So
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that they can develop as well as refine their ideas and also at the same time develops a mentality
that can be optimistic regarding each and every situation.
Ownership- Entrepreneur are the one who are successful within their career as well as also have
the high internal locus. They are also capable to trust in their capability that describes their
success. They also have pathological requirements as well as see their own decisions , response
and actions instead of what life gives to them makes them or breaks them. They are taking their
responsibility for doings things that can be done and also at the same time building the
confidence that are capable to inhibit (Gibson, 2017).
Leadership- For becoming an effective entrepreneur there is a requirement the guidance and also
motivation needed for team. It is also importantly shares their vision as it can inspire. By the
developing focuses and evolvement of team, these entrepreneurs are also having a great chance
realizing the greatness of vision. The main goal is to create a vision, also fame it correctly and
also have the greatness within their vision. Here the main goal is to create vision, also fame it
correctly and also regulate it regularly.
Connection- Entrepreneurs are also must create a network for example tribe that can choose
persons who will aids from the collaborative bonds that are needed to establish an idea. Through
making the connection that aids an efforts instead of any type of rewards that are official can
create. They are also capable of building the strong relationship with friends, family and
colleagues. They are also takes times to invest within the relationship that also matters to most.
Self Respect- It is also one of the most crucial step as to take care of their mind and body is also
equally important as their business (Gibson, 2017). They needs to take care for sleeping as they
need time to regain their energy. Also, walk and exercise or gym, they can do take whatever they
can enjoy. They also take the nourished diets and also makes the healthy habits .
P7 How background and experience can hinder or foster entrepreneurship
Personal background and experiences plays a vital impact on a business as it is capable to
foster the entrepreneurship. Motivation, supports from friends and family, all falls under the
personal background. In this process if someone get the proper support from friends as well as
family than they can easily motivate so that they can set up their business. It can increasing risk
capability as well as motivate to set up their businesses. The personal experience also influence
in entrepreneurship. Thus, by using such examples that how background as well as experience
can hamper entrepreneurship (Simba. and Ojong, 2017). It is also noticeable that if the
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experience of the costumer was good than the person will continue such business for longer time
as well as same thing is happening if someone is motivated for their business. Also the
experience was not good as well as entrepreneur can be afraid that might be afraid to set up their
business.
National culture- It is also considered as a set of norms, behavior ,beliefs as well as customs and
also shared by population of a nation. It also focuses on the specified characteristics such as
language, religion, cultural history and traditions (Urbano. and Aparicio, 2019).
Economic circumstances- There are several factors that plays all the necessary trends in the
economy that aids the enterprise to accomplish its aims and objectives of the firm.
CONCLUSION
From the above it had been summarized that Entrepreneurial ventures are the firms that
performs the functioning of designing ,running and launching the business that is owned by the
entrepreneur. Micro entrepreneurial ventures, Small ventures,Large enterprise and Typology
Survival firms as It is used to meet the financial obligations of the entity and also survive to the
extended, its mainly characteristic through employment freeze, cutting costs,laying off the staff
members. Lifestyle entrepreneurship as several ventures of entrepreneur that are operates within
one or another way but out of them all have similarities that makes these ventures that are highly
identical to one another. Moreover, they provide employment in society and enhance lifestyle of
people by offering them new products. It also focused on Vision oriented Critical thinking skills
a kind of the personality that can be easily adapts the situations and act accordingly. It also
focused on several aspects of the entrepreneurial personality that influence on the mindset and
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motivation of entrepreneur. Furthermore focused on Optimism Ownership Connection
Leadership and Self Respect and many more.
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REFERENCES
Books and journals
Durst, S. and Roth, S., 2018. International Journal of Entrepreneurship and Small Business:
Special Issue on:" Entrepreneurship: Made in German (Language)".
Gibson, B., 2017. Teaching entrepreneurship and/or small business management: shifts in
content tensions in Australian Universities. In United States Association for Small Business
and Entrepreneurship. Conference Proceedings (p. 716). United States Association for
Small Business and Entrepreneurship.
Ratten, V., Dana, L.P. and Ramadani, V., 2017. Internationalisation of family business groups in
transition economies. International Journal of Entrepreneurship and Small Business, 30(4),
pp.509-525.
Simba, A. and Ojong, N., 2017. Engaged scholarship: Encouraging interactionism in
entrepreneurship and small-to-medium enterprise (SME) research. Journal of Small
Business and Enterprise Development.
Urbano, D. and Aparicio, S., 2019. An Overview of the Economics of Entrepreneurship and
Small Business: The Legacy of David Audretsch. In From Industrial Organization to
Entrepreneurship (pp. 279-306). Springer, Cham.
Usman, A., 2020. ENTREPRENEURSHIP AND SMALL BUSINESS.
Usman, A., 2020. Exploring the global potential of social entrepreneurship and small business
social responsibility for tackling societal value creation. In Research Handbook on Small
Business Social Responsibility. Edward Elgar Publishing.
Basco, R., 2019. Entrepreneurship, Migration and Family in Peripheral Contexts–Avenues for
Growth and Internationalisation.
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