Entrepreneurship and Small Business: Concepts and Theories

This assignment delves into the world of entrepreneurship and small business, examining key concepts and theories such as innovation, entrepreneurship ecosystems, and social enterprise. It provides a comprehensive overview of the subject, covering topics like entrepreneurial behavior, management, and organization review. The assignment also touches on the role of small businesses in economic development and the challenges faced by entrepreneurs in developing contexts. With its focus on theoretical foundations and practical applications, this assignment is an essential resource for students looking to understand the complexities of entrepreneurship and small business.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P.1 Different types of entrepreneurial ventures and their relations to typology....................1
P.2 Similarities and difference between different entrepreneur ventures...............................3
P.3 Relevant data and statistics to illustrate how micro and small business impact on the
economy.................................................................................................................................5
LO 2.................................................................................................................................................7
P.4 Small business importance and growth of social economy..............................................7
LO 3.................................................................................................................................................8
P.5 Traits and characteristics of successful entrepreneur.......................................................8
P.6 Entrepreneur personality is reflected the motivation and mind set..................................9
LO 4...............................................................................................................................................10
P.7 Background and experience can hinder or foster...........................................................10
entrepreneurship..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................11
.......................................................................................................................................................14

INTRODUCTION
Entrepreneurship is one of the fundamental components for the economical and cultural
development. It brings forth not only national development but also regional as well as local too.
In this report, concept of entrepreneurship seems simple, the entire working of it is complex and
dynamic (Schjoedt, 2017). This report is based on NPW GIFT LTD. Small sector organisation.
The company basically located in Untied Kingdom and provide different kind of services in
gifting, offering beauty and party solution. Further, it covered the entrepreneurial ability in one-
on-one differs from one another in respect of the life education and knowledge they acquired.
The written report aims to talk about the aspect of the businessperson and entrepreneurship in
extended manner.
LO 1
P.1 Different types of entrepreneurial ventures and their relations to typology.
Entrepreneur are analysed as those individuals who establish their business by generating
new ideas and invest their own capital within an aim to achieve profitability (Sahut and Peris-
Ortiz, 2014). These entrepreneurs are mainly responsible towards development employment
opportunities and growth of countries. In this context, there are various kinds venture have been
analysed which are established by entrepreneur for different purposes. These important business
ventures are mentioned above:
 Small scale ventures: it implies to a small business ventures which is started by one
single person at own risk and investment (Blackburn, Hart and Wainwright, 2013). It is
also considered as sole proprietorship business which is established by single person or
entrepreneur with an aim of maximum. These ventures are mainly established with new
ideas and concept towards regulation of business operations at small scale. It deals with
the which has been an effective business operations that needs to be accomplished by
managed with an aim of earning profits. Grocery stores, consultants, travel agents and
plumbers etc.
 Large scale ventures: Business ventures established by Entrepreneurs at international
level and ventures that needs to be accomplished by management and working in
organisation. This organisation achieve growth in market through continuous innovation,
offering new products which are considered as variants around their core products
(Bridge and O'Neill, 2012). These business ventures operate at international level and
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established by individuals and organisation with an aim to earn profitability. As have
broad range of doing business, they always dominate the industry. Huge amount of
capital has been invested by shareholders in large scale business entreprises.
 Social ventures: These are established by individual or entrepreneur who desires to make
some changes and resolving the problems of individuals living in community. These are
also established by people with an aim of providing support towards development of
society and resolving problems such as employment, diseases and social issues rather
than earning profitability. Their major aims is to create better society and provide
financial support for development of people in countries. These are also considered
voluntary organisations, non profit organisation, or hybrid etc.
 Scalable ventures: Scalable entrepreneur starts their venture by knowing that their vision
will create change in world. They also tend to attract financial resources from equally
crucial investors or venture capitalist. Silicon valley. Shanghai, new York, bang lore and
Israel etc. are identified as major example of scalable entrepreneur. Their focus on scale
requires more venture capital to accelerate continuous business expansion.
Further, there are various entrepreneurship typologies which are mentioned below:
Intrapreneur: These are considered as individuals that working within an organisation and
having charge of implementation continuous innovation in products and services. They are
usually dependent upon the resources of business enterprise.
Serial entrepreneur: These are individual which always carry out new business ideas and
concept for established of business operations. Until and unless they have developed another
brand new idea, he stays in con tact with the previous one (Kirzner, 2015). Serial entrepreneur
establish business and achieve growth but does not carry out business operations continuously.
They provide roles and responsibilities of business to other people and start working on
establishment of new venture.
Social entrepreneurs; Finding states that social entrepreneur are those who establish their
business with by having new idea for resolving social issues and development of people rather
than maximising profits. These entrepreneur gets financial resource in the form of donation and
grants etc. For example: There are various health care organisation who are providing medical
treatment and service for people are established social entrepreneurs.
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Growth entrepreneur: These entrepreneurs are closely related with large scale business
enterprise which aims at achievement of business objectives (Leitch, Hill and Neergaard, 2010).
These individuals aims at achievement of high profitability in market by providing new and
innovative products for providing satisfaction to consumers.
Lifestyle entrepreneur: Those individuals or entrepreneur establish their business operation in
different parts of countries at small scale with an aim of changing lifestyle of people in societies.
These are also considered as female entrepreneurs which establish their business to attracts
people having distinctive life style. It is also considered as major scale of business operations
which needs to be accomplished by organisation.
P.2 Similarities and difference between different entrepreneur ventures.
There are various major difference between these kinds of business enterprise which are
established individual on the basis of new and unique concept. In this context, major differences
between ventures are also mentioned above:
Small scale venture Large scale Scalable ventures
Small venture are mainly
established with an aim of
maximising profitability and
their basic objectives is strived
and sustain in market for
generating revenues in order to
accomplish the esteem needs
of their family members.
There are business ventures
which are established with an
aim objective of minimax
profitability and gaining
market share as compared to
competitors. Business
operations of these enterprises
usually operates on large scale.
These start up ventures have
the basic objectives of meeting
the requirements the
requirement of market place
through development of an
innovative product.
These are considered as
business ventures which are
highly exposed to risk in order
to maintain their financial
position in market and they
usually focus on earning
profits.
These ventures are established
by taking financial resources
from shareholders and
investors, therefore risk is
exposed to all individuals
rather than one single
entrepreneur.
These a business ventures
contains low risk because they
are established at very low
investments. These ventures
are established collectively
various individuals together
with an aim of maximising
profits.
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These business are established
by individual entrepreneur by
making investment of their
own capital or borrowing from
market at own risks.
These ventures usually get
financial resources from
shareholders, financial
institutional, venture capitalist
and securities.
Scalable business ventures get
financial resources from
venture capitalist and other
financial institutions . They are
also not able issues their share
in market.
Similarities between entrepreneurial ventures
Small scale ventures Large scale business Scalable ventures
It is also established on the
basis of new business ideas
and concepts.
Large scale ventures are
established with an objective
of earning profits and
developing new products to
satisfy the requirement of
people (Defourny and
Nyssens, 2010).
These venture are established
by entrepreneur with an aim of
making changes across the
world and maximising profits.
Small ventures are established
by private individuals and
there is no involvement of
government in business
operations.
Ventures are usually
established at large scale by
enterprise by two or more
private individuals and earning
profitability.
These social entrepreneur aims
to maximize profitability
which is identified major
profitability and earning high
market share.
Flow of operations and
authorities regulates from top
level to low level.
These business ventures
mainly operates at
international level but they
always operate flow from top
to lower.
Structure of Scalable business
venture is also analysed as
similar and flow from top to
lower level.
Difference between public and private ventures
Public ventures Private ventures
Those business enterprises which are These are established by individual or private
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established by issue of share to public and aims
to maximise profitability.
business entrepreneur by investing their own
capital and getting financial resources from
other institutions.
P.3 Relevant data and statistics to illustrate how micro and small business impact on the
economy
Micro business enterprise are termed as ventures which are started by single owner and
hire less number of employees. These are considered as micro enterprise because they create
business ventures at low level.
Small business enterprise are considered as ventures which regulated their business at small level
to achieve profits and market share in particular industry. These enterprises are mainly
considered source of growth in UK as they are able to implement continuous innovation and
creativity in business operations (Herrington and et. al., 2010). Private organisation are those
which are established by private individual at their own risk and investments. They regulate
business operation at every level in industry and aims at maximising profits along with market
share.
A sole proprietorship is a business that has a single owner who is responsible for making
decisions of company and also invests his owner capital at own risk.
A partnership is a business that consists of two or more individuals who share the responsibility
of regulating the business operations.
There are various influence have been provided by small and micro business enterprise on
business operation such as:
Economic growth: Finding of research provide information that 99% private sector companies
recognised as small business enterprise (Welter, 2011). As per statistical data, micro business
enterprise have achieved high growth in economy as compared small business. They also have
important in generating profitability and have major contribution in providing growth to
economy of UK. They are providing annual turnover of 1.8 trillion which is 47% of private
sector contribution.
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I
llustration 1: growth of micro and small enterprise
(Source: The Role of Small Business in Economic Development.
2017)
Employment opportunities: Along with this, Micro and small business enterprise have also
increased employment opportunities for people. They are responsible for development of source
of income for people living in society. Small business or private has also achieved a significant
growth as 22 million of small business exists in UK and they are responsible for creating 64% of
new jobs in last 20 years and also providing the most new jobs in small communities.
LO 2
P.4 Small business importance and growth of social economy
Small sector organisation is play most important in economic development of the nation.
There are large population in UK work in small sector or act as an employee. In addition,
entrepreneur is to be concentration on improve economical condition with the help of innovation.
This is help to generate employment industry in economic development and some changes is
made as per the need of local government (Caputo, 2017). Small sector organisation start with
rising opportunity form local and different regional population in United Kingdom. In such kind
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of business is help each and every person is focus on data or information. At the end future
economic development and improvement for increase productivity and profit in organisation.
There is the complete focus on increase new jobs and venture for remove unemployment
or foster development of economic growth (Bhagavatula, 2017). With the help of innovation
improves the productivity and profit of the small sector organisation. There is one of the most
important part is UK is focus on modernisation of financial sector of organisation. This is to be
improve the level of condition of production in small sector business. The growth level id
develop with the help of following factors :
 Development of personal relationship :- In small business is are focus on development
the personal relationship with co- worker, customer and suppliers etc. On the other hand,
person to person relationship as ever important to build relationship with other.
 Low overheads :- In this context, small sector organisation has low income as well as
overheads in regular business activity (Laffranchini, 2017). In small business operation
management small premises with low heating system and light costs, and controlled rent
and rates to pay. Low costs give the best result in lower price. This factors are important
part and increase productivity and profit. Innovation :-Innovation has introduced the new idea are helping to improve the current
market share and increase the productivity and profit of the organisation. With the help of
invention increase new customer in market. It can be also rich a fast decision about any
kind of problem in organising.
For example : Small businesses contribute to local economies by bringing growth and
innovation to the community in which the business is established. Small businesses also help
stimulate economic growth by providing employment opportunities to people who may not be
employable by larger corporations. Small businesses tend to attract talent who invent new
products or implement new solutions for existing ideas.
LO 3
P.5 Traits and characteristics of successful entrepreneur
In this context, entrepreneur and entrepreneurship is a confinement of the overall
business management. Motivation and passion are the ability of entrepreneur or used in small
sector organisation. It is also crucial for an entrepreneur to develop ideas as per the change in
need to change in business environment and apply such kind of business ideas for improve
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profitably and productivity (Ramadani, 2017). There are different type of characteristics and
trait of successful entrepreneur are as follows :-
Characteristics of successful entrepreneur : The entrepreneur is successful in each and
every activity, because of passion to do the right things, at the right time and the right place. It is
help to every person in a small business and motivate them to do something new in regular
activity. Entrepreneur is the person who take risk and always to ready to solve future problem
and reduce it. It is person who focus on time and money or improve level of work inside
organisation.
In addition, most of the entrepreneur is successful in market because they try to do
something new in small sector. Add one more, money management is proper and solve any of
the problem relate to money management. To link with internal activity and remove any
difficulty. Even after guaranteed funding or going fully functional, a booming businessperson
keeps an absolute handle on cash flow, as it is the least essential aspect of any small sector
organisation.
Traits of successful entrepreneur :-Vision is the most important trait of successful
entrepreneurs. They can see the future before the future activity is happing (Carter, 2017). The
entrepreneur is having self confidence is more than comparable to normal manager in the
organisation. The full work is to be depended on the successful imagination of the
businessperson. In then same way, entrepreneur is honest with self and other employees inside
the organisation. It is will to take the risk, but be conservative in internal working environment.
It is also crucial for a businessperson to germinate content in accordance with the dynamic
business concern state of affairs and utilize those enterprise ideas in the form of plan of action
towards the business. Hence, a mere knowledge or a skill is not comfortable in an entrepreneur.
Entrepreneur requires passion and desire is much more important in every changing
environment.
P.6 Entrepreneur personality is reflected the motivation and mind set
There are different elements of successful entrepreneurial is help to motivate other
manager in organisation. In addition, motivate, innovation, risk taking and development are the
ability of entrepreneur. This is help to motivate other and greater collaboration between
entrepreneurial motivation and mind set. There are all such kinds of factor is learn in the age of 3
to 10 years. The actual development was in childhood stage and bought up in strict childhood
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situation ( Hamid, 2017). It is also essential that these single who feature these positive attribute
traits acquire more than skills in perceptive their fellow men or the person, which in turn
testimonial to the general mentality and above all towards businessperson psychological feature.
Entrepreneur is person of new skills and innovation is to be used to promote something new and
increase productivity and profit. Some factors are help to motivate with the help of following
factors are as follows :-
Passion :- In this context, passion is not learned, its buy born for every entrepreneur.
They are ability to do such kind of activity in business environment is help to improve profit and
productivity in organisation. It includes the cognition to introduce, risk taking, devolution and
enforcement of new commercial enterprise opinion and even exploit ever-changing leading and
governing body skills. Apprehension these view, it becomes clear that entrepreneur is an
individual who reinvents from time to time in order to become competitors.
There is a lesser correlation between the businessperson attribute towards businessperson
psychological feature and mentality (Bhagavatula, 2017). This is to be focal point on some
improvement in market share and increase overall development of organisation. There are some
changes will be made in regular base and improve the current market of increase level of profit
in organisation. There are something change will be made in improve internal as well as external
working environment. The man-to-man who are bought up in a surrounding of creative thinking
and unsusceptibility have shown outstanding traits of leading and direction, then that of the
single who are given birth and bought up in hard-and-fast time of life state of affairs.
It is also of import that these single who possess these affirmative attribute traits get more
accomplishment in perceptive their fellow men or the person, which in turn testimonial to the
general mentality and preceding all towards businessperson psychological feature. This is
assistance to increase creativity and compatibility inside organisation. To be manage work or
improve current market share and increase the level of change will be made for future time
period. In the same way, each and every entrepreneur is look into future and improve current
market share (Laffranchini, 2017). This is to be change the level of same destination and there
are different entrepreneurs give different mind set for help to such kind of change in work place.
On the other hand, some flexibility is help to improve productivity and time to be improve the
number of employees will be improve.
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LO 4
P.7 Background and experience can hinder or foster entrepreneurship
There are some change will be made in future time period is to be focus on each and
every entrepreneurial personality is reflected in hinder and foster of organisation growth. There
is some different way to improve to make some kind of decision or action must be taken in
internal working environment (Ramadani, 2017). This is help to motivate each and every factor
or long term, goal will be achieve for increase the profit margin. The conceptualization of each
businessperson is contrary when it comes to business organization and determination making
cognitive process. These quality are chiefly because of the attribute traits they non inheritable
through time and life experiences. Instruction and the life education is a lesser catalyst in the
arrangement of an single attribute, and the same applies to an enterpriser too.
On the other hand, some new process must be focus on improve quality of working
condition and increase overall future development of small sector organisation. It is also essential
that this endangerment attractive ingredient in an enterpriser have formed through time with the
factors such as cognition and the life education in which that cognition is acquired.
Hence, for an enterpriser who is initiating a business start-up, risk is one cardinal factor
that he or she essential realize in all its facet, because hazard does not mean unsighted taking a
leaping of religious belief, instead represent the thought through the computation of challenges
bald-faced in the past, makes the entire cognitive process hard-hitting and economic. This is help
to improve productivity and profit will be change for increase the overall development of
organisation. To be improve current as well as future market condition is to be improve the
condition of internal as well as external factor. With the help of entrepreneur motivation and
mind set will be change for increase productivity and profit in structure.
CONCLUSION
Form the above report is focus on NPW GIFT LTD. Small sector organisation. The
company basically located in Untied Kingdom and provide different kind of services in gifting,
offering beauty and party solution. As per the above report is focus on entrepreneurship is a
confinement of the overall business management. Motivation and passion are the ability of
entrepreneur or used in small sector organisation. In this report is focus on trait of successful
entrepreneurs. They can see the future before the future activity is happing. The entrepreneur is
having self confidence is more than comparable to normal manager in the organisation. Form the
10

above report is focus on reflected in hinder and foster of organisation growth. There is some
different way to improve to make some kind of decision or action must be taken in internal
working environment.
REFERENCE
Books and journals
Powell, G.N 2017. Family Involvement in the Firm, Family‐to‐Business Support, and
Entrepreneurial Outcomes: An Exploration. Journal of Small Business
Management, 55(4), pp.614-631.
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Mamabolo, M.A , 2017. Human capital investments as sources of skills: An analysis at different
entrepreneurship phases. The Southern African Journal of Entrepreneurship and Small
Business Management, 9(1), p.12.
Ramadani, V 2017. Entrepreneurship and Management in an Islamic Context. Springer
International Publishing.
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Ramadani, 2017. Alex Maritz is an Associate Professor of Entrepreneurship and Innovation at
Swinburne University of Technology, Melbourne, Australia. Alina M. Zapalska is the
Professor of Economics and Director of the Honors Program at the US Coast Guard
Academy, where she teaches Economics since 2005. Her extensive and varied teaching
experience spans 30 years in the US and. Entrepreneurship and Management in an
Islamic Context, p.243.
Laffranchini, G 2017. THE PRICE TAG OF FAMILY BUSINESS INVESTMENTS:
TRADING ENTREPRENEURSHIP FOR SOCIOEMOTIONAL WEALTH. In United
States Association for Small Business and Entrepreneurship. Conference Proceedings (p.
138). United States Association for Small Business and Entrepreneurship.
Bhagavatula, S 2017. Management and Organization Review Special Issue ‘The Innovation and
Entrepreneurship Ecosystem in India’. Management and Organization Review, 13(1),
pp.209-212.
Hamid, A.B.A 2017. Comparative analysis of managerial practices in small medium enterprises
in Malaysia. Jurnal Kemanusiaan, 4(2).
Carter, M 2017. Entrepreneurial and Intrapreneurial Skills of Managers as Determinant of
Organizational Performance of Small and Medium Enterprises in Davao Region,
Philippines.
Ramadani, V., 2017. Alex Maritz is an Associate Professor of Entrepreneurship and Innovation
at Swinburne University of Technology, Melbourne, Australia. Alina M. Zapalska is the
Professor of Economics and Director of the Honors Program at the US Coast Guard
Academy, where she teaches Economics since 2005. Her extensive and varied teaching
experience spans 30 years in the US and. Entrepreneurship and Management in an
Islamic Context, p.243.
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Laffranchini, G 2017. THE PRICE TAG OF FAMILY BUSINESS INVESTMENTS:
TRADING ENTREPRENEURSHIP FOR SOCIOEMOTIONAL WEALTH. In United
States Association for Small Business and Entrepreneurship. Conference Proceedings (p.
138). United States Association for Small Business and Entrepreneurship.
Bhagavatula, S 2017. Management and Organization Review Special Issue ‘The Innovation and
Entrepreneurship Ecosystem in India’. Management and Organization Review, 13(1),
pp.209-212.
Caputo, A and et.al 2017. Female entrepreneurship in developing contexts: characteristics,
challenges and dynamics.
Schjoedt, L., 2017. Entrepreneurs’ Behavior: A Black Box in Entrepreneurship Research.
In Revisiting the Entrepreneurial Mind (pp. 411-423). Springer International Publishing.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Leitch, C., Hill, F. and Neergaard, H., 2010. Entrepreneurial and business growth and the quest
for a “comprehensive theory”: tilting at windmills?. Entrepreneurship Theory and
Practice. 34(2). pp.249-260.
Herrington, M. and et. al., 2010. Tracking entrepreneurship in South Africa: a GEM perspective.
Graduate School of Business, University of Cape Town.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship Theory and Practice. 35(1). pp.165-184.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social entrepreneurship
in Europe and the United States: Convergences and divergences. Journal of social
entrepreneurship. 1(1). pp.32-53.
Online
The Role of Small Business in Economic Development. 2017. [Online]. Available through:
<http://isbdc.org/small-business-in-economic-development/>
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