Entrepreneurship and Small Business Management

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1 ............................................................................................................................................3
P 1 Entrepreneurial ventures and typology of entrepreneurship.......................................3
P 2 Similarities and differences between entrepreneurial ventures....................................4
LO 2.............................................................................................................................................6
P 3 Impact of micro and small businesses on the economy...............................................6
P 4 Importance of businesses who operates on small scale and business start-ups to the
growth of the social economy.............................................................................................7
LO 3.............................................................................................................................................9
P 5 Characteristic traits and skills of successful entrepreneurs that makes them different
from other business managers............................................................................................9
P 6 Aspects of the personality of entrepreneurs reflect entrepreneurial motivation and mind-
set......................................................................................................................................10
LO 4...........................................................................................................................................11
P 7 Background and experience can hinder or foster entrepreneurship...........................11
CONCLUSION..........................................................................................................................12
REFERENCES..........................................................................................................................14

INTRODUCTION
Entrepreneurship is considered as designing, launching and running a new business, which is
often initially a small business. businesses created by the people are called entrepreneurs.
Small business management is a process entrepreneurs use when running
their business operations. Entrepreneurs may need to understand how to manage employees,
accurately report financial information, acquire economic resources or business assets, and
make various business decisions. This report covers issues such as entrepreneurial ventures
and their typology, similarities and differences between entrepreneurial ventures, impact of
micro and small business on the economy, importance of small business and start ups to the
growth of the social economy, traits and skills of entrepreneurs that helps them to differentiate
from managers of the company, background and experience of entrepreneurs and how
entrepreneurs stay motivated and how their mind set is different.
LO 1
P 1 Entrepreneurial ventures and typology of entrepreneurship.
Entrepreneurial ventures is focused on providing services related to advises and
suggestions to start ups and companies who are operating as mid stage. Role of ventures are
different and it changes according to the stage of the company.
Small Business Entrepreneurship-
Majority of the companies dealing in the market are operating on a small scale.
According to facts and figures around 80 per cent of the companies are working and maintain
their operations on the level of small enterprise but even then they are the ones who are
providing employment approximately to 50 per cent of the individuals who are dealing in the
sector of private sector. Employees hired in these companies are on the scale of around 1 to 5
people. These companies are not able to gain the attention of venture capital as they maintain
their operations on a small scale. For starting or commencing their operations they take helps
from their family, friends or ask for personal loans from banks. Usually people who are
consultants, carpenters, hairstylists, plumbers etc. starts businesses on these scale. These
businesses are started up on a low scale of investment (Campos and et.al., 2017)
Scalable start up Entrepreneurship-
When an entrepreneur is fully aware of the forces of market and has gained confidence
through their skills which make them believe that their vision can help bring change in the

market. These type of entrepreneurship is known as scalable start up. These type of businesses
approach venture capitalists in order to raise capital for maintaining the operations. It also
helps them to employ efficient and skilled employees to work with. Entrepreneurs first find
out the nature of the business then they take the use of the capital which they raised it through
venture capitalists. There is high involvement of risk in the company and the return on
investment is also not predictable. This is the reason why there are not much companies who
are operating in this sector. For instance companies such as Snapchat, whats app, Facebook
etc. which are maintained their operations successfully online are included into this sector.
Entrepreneurial ventures such as these is linked with the typology which is same that is
scalable typology. Motive of these ventures is to get repeated sales. These companies focuses
on stealing the share in the market of different companies by bringing innovation
Large Scale Entrepreneurship-
Companies operating on a large scale such as Samsung, Microsoft, Apple comes into
this scale of operations. These companies launch new products with new innovation.
Companies such as these focus on achieving growth in aggressive way by using every
available resources with them which can lead them to achieve the goal. They deal with more
no of operations and handle more clients. Also in order to maintain their operations they
require more employees. (Dunne, et.al., 2016). these type of entrepreneurship is characterized
on the basis of their dealings and clients. The scale in which they operate involves a huge risk.
The volume in which the business communicates helps to determine the nature of the
entrepreneurship. For instance- Uber, google, Amazon etc. are the ideas of large scale
entrepreneurship
Social Entrepreneurship-
These type of entrepreneurs takes initiatives for helping and providing benefits to the
welfare of the people. They work and focus on making those products which can help people
who are underprivileged. Their motive is to work for the benefit of society not to maximize
their profits. Typology of social entrepreneurs is linked with these entrepreneurs as they are
stable in making decisions, creative and have the qualities to achieve the goal. This type of
step is taken by companies who are operating as start ups so that they can develop and
contribute more to the social factors for the betterment of environment.(Gelaidan and
Abdullateef, 2017) These type of entrepreneurs use the profits generated by the activities for