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Entrepreneurship and Small Business Management

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Added on  2023/04/04

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This assignment explores different aspects of entrepreneurship and small business management, including types of entrepreneurial ventures, their relation to entrepreneurship typology, impact on the economy, characteristics of successful entrepreneurs, and the role of background and experience. It provides valuable insights into the world of entrepreneurship and small business management.

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
Student Name
Student ID
Professor Name
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Types of Entrepreneurial Ventures and Their relations with Entrepreneurship Typology (P1)......3
With the help of your research distinguish between the entrepreneurial ventures and also find its
similarities (P2)................................................................................................................................5
Task 2...............................................................................................................................................8
Impact of Micro and Small Businesses on Economy (P3)..............................................................8
Contribution of Small Businesses and Business Start-ups in the Growth of Social Economy after
Brexit (P4).....................................................................................................................................10
Task 3.............................................................................................................................................11
Characteristics, Traits and Skills of Successful Entrepreneurs and Other Business Managers (P5)
.......................................................................................................................................................11
Role of Entrepreneurial Personality Aspects in Reflecting Entrepreneurial Motivation and
Mindset (P6)..................................................................................................................................12
Task 4.............................................................................................................................................13
Role of Background and Experience in fostering Entrepreneurship (P7).....................................13
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................15
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Introduction
The entrepreneurship can be regarded as the act of setting up business entities with the objective
of gaining business profits. The small business entities can be transformed into multinational
corporations through utilising effective growth and harvesting strategies. In addition, the small
business management can be successful if emphasis can be laid upon the utilisation of
entrepreneurial skills for improving bottom line. This assignment will be making discourse on
the exploration and illustration on different types of entrepreneurial ventures and their relation to
entrepreneurship typology. In addition, the similarities and differences between entrepreneurial
ventures will be highlighted. It will also be illustrated how micro and small business entities play
important role in putting impact on UK economy. The explanation will be given on what role the
small businesses and business start-ups play for ensuring the growth of social economy. The
comparative analysis will be conducted between the characteristics, traits and skills of successful
entrepreneurs and those of managers. Moreover, the assessment will be conducted on the
influences of different aspects of entrepreneurial personality on motivation and mindset. It will
also be shown how background and experience play prominent role in hindering
entrepreneurship. In this way, this assignment will be discussing different aspects of
entrepreneurship and small business management.
Task 1
Types of Entrepreneurial Ventures and Their relations with
Entrepreneurship Typology (P1)
The entrepreneurial ventures are what plays prominent role in targeting high level of return on
investment. The entrepreneurial ventures also plays prominent role in ensuring the arrangement
for capital and raw materials with the objective of producing goods and offering services to the
customers. The small business can be developed into entrepreneurial ventures with the adoption
of effective strategy for dealing with unknown predictable and unpredictable business risks.
In accordance with the opinion of Linton and Solomon (2017), the entrepreneurs play the role of
both-initiator and driver. The entrepreneurs play prominent role in taking initiative for the
creation of business entity with the objective of creating wealth. On the other hand, the
entrepreneurs are required to utilise their leadership skills with the objective of improving
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bottom line. The entrepreneurs have the capability of customising the business for gaining
competitive as well as strategic advantage over industrial rivals.
Tselepis et al. (2016) have highlighted some of the basic concepts related with entrepreneurship,
such as measurement of business risks, utilisation of creativity, fiscal responsibility, utilisation of
management skills and so on. These things are needed for entrepreneurs in order to develop
small business into entrepreneurial ventures. The utilisation of management skills can be helpful
for entrepreneurs in ensuring business success. In addition, the capability of taking calculated
risks can play prominent role in ensuring the success in terms of business revenue generation and
financial profitability.
There are different kinds of entrepreneurial ventures, such as survival venture, managed growth
venture aggressive growth venture and so on. In these types of ventures, the entrepreneurs
engage in with the objective of creating wealth. As stated by McKeown (2017), the survival
entrepreneurial ventures have to conduct its business activities through limited assets. Sole
proprietorship can be fallen under this category. The basic source of capital is the income of
individuals. The business operations are conducted based upon cash. This of entrepreneurial
venture has to struggle in highly competitive market for ensuring survival. The concept of
business banking relationship is not existent in the context of survival entrepreneurial ventures.
The entrepreneurial orientation is at low level. The entrepreneurs take reactive approach while
dealing with business related issues.
The managed growth entrepreneurial ventures’ business operations are run through effective
business models. The stability in the the business growth can be ensured over a period of time
with the launch of different kinds of product and service portfolio. As stated by Schaper (2016),
the effective expansion of the business can be ensured through growth and harvest strategies.
The staffs, facilities and locations are expanded through the effective business development
strategies. The business can be developed through effective utilisation of organisational
development and change models. The organisations lay emphasis on innovation and R&D
activities for creating value in business activities. The entrepreneurial orientation is at moderate
level. The entrepreneurs take strategic approach while dealing with business related issues.
The aggressive growth entrepreneurial ventures utilise state-of-the-art technology for ensuring
rapid business growth. The utilisation of equity capital plays prominent role in funding the
business thereby resulting in ensuring business growth. The growth of revenue reaches at high
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level within five years. Within a short period of time, the firms gain competitive advantage over
industrial rivals through following effective business models. As opined by Hong and Lu (2016),
the organisations adopt aggressive marketing and sales strategy for increasing market share. The
entrepreneurs take strategic and proactive approach for increasing market share. Entrepreneurial
orientation is at very high level in this venture.
In addition, the lifestyle entrepreneurial ventures adopt tactical approach for dealing with
business issues. They rely upon operational and basic level of managerial skills for conducting
business operations.
The entrepreneurial ventures can be related with different kinds of entrepreneurs. The serial
entrepreneurs play significant role in coming up with new ideas for improving business
performance of different kinds of business ventures. As opined by Woodfield et al. (2017), the
serial entrepreneurship can play prominent role in developing small business entities into
entrepreneurship ventures.
The social entrepreneurs are required to possess passion for making the change into reality. The
social entrepreneurs can play prominent role in ensuring driving social innovation as well as
transformation in the context of enterprise development. As notified by El-Gohary et al. (2016),
the social entrepreneurs can be able to ensure the development of different entrepreneurs
ventures through laying emphasis on innovation and transformation.
The women have been playing prominent role in utilisation of entrepreneurial skills for
improving business productivity. As averred by Chell et al. (2016), the female entrepreneurs
have been facing challenges as a lot of women are expected to maintain balance between family
and business. In addition, female entrepreneurship has to counter its male counterpart. Despite all
these challenges, the female entrepreneurship has been keeping on playing significant role in
improving the business performance of different entrepreneurship ventures. The limited access to
funding has become also challenging for the development of female entrepreneurship.
With the help of your research distinguish between the entrepreneurial
ventures and also find its similarities (P2)
Some of the similarities and differences between the entrepreneurial ventures are given below:
Lifestyle EntrepreneurSerial Entrepreneur
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DifferenceDifference
1. A person who generate a business by
altering their personal own lifestyle for their
purpose.
1. Miller et al. (2012), a person who
can able to come up with new
innovative ideas continuously and can
able to start a business.
2.They are mainly focused on the people by
providing life rewards so that they can enjoy
and must have the passion about their activities
2. They mainly focus on the functioning
which is being done day to day.
3. They are not focus on making profits and
they are determined entrepreneur.
3. They are mainly focuses on making
profit and they are research
entrepreneur.
4. Onetti et al. (2012), this business has an up
growth because it is made according to the
passion of the individual for what they are
doing.
4. Sometime there is a drawback that
the entrepreneur sometimes gives
another individual to handle the
business.
SimilaritiesSimilarities
1. They started their business by the help of
their new ideas.
1. They started their business by the
help of their new ideas.
2. This entrepreneur takes risk in both in
security and financially to start a business
using their own ideas according to their
passion.
2. This entrepreneur also takes risk in
both in terms of security and financially
to start a business by making new ideas
continuously.
Social EntrepreneurTechno Entrepreneur
DifferenceDifference
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1. In case of social entrepreneur it observes
issues on the social like hunger and forming
the business according to the social needs.
1. In case of techno entrepreneur who open a
business using the idea of new technology like
smart phones to gain profit.
2. As stated by Fisher (2012), Social
entrepreneur pursue funding through the
sources which are not being associated with
business ventures.
2. Techno entrepreneur prosecute their funds
through the sources which are being associated
with business ventures.
3. But in case of social entrepreneur always
view their profit in the business largely by the
means of sustainability.
3. Techno entrepreneur always aim for gaining
and maximizing profit from the business for
both the stakeholders and investors.
4. As stated by Shane (2012), social
Entrepreneur is actually falls under the
topology of research entrepreneurship where
the entrepreneur starts a business according to
the researches the social needs of the
individual.
4. Techno Entrepreneur falls under the sceptical
entrepreneurship where the entrepreneur studies
the technology of the other company and
updated one to start a business.
SimilaritiesSimilarities
1. Social Entrepreneur takes the risk both
financially and security to start a business.
1. Techno Entrepreneur takes the risk in both
financially and security to start a business.
2. Social Entrepreneur renovate new ideas to
create the business for making profit.
2. As stated by Drucker (2014), techno
Entrepreneur also recreates new ideas in terms
of technology to create business and gain profit
according to it.
3. This Entrepreneur also takes the role of
services, researching raw materials etc
3. This entrepreneur also takes the role of all
the parts of the services, decision making etc.
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Task 2
Impact of Micro and Small Businesses on Economy (P3)
While making discourse on micro and small businesses on UK economy, it is important to
discuss about the classification of business entities, such as small, medium and micro
organisations. The small businesses can be regarded as those organisations, which are privately
owned. Sole proprietorships and partnerships are the significant features of small businesses. The
small business entities usually consist of small number of employees. The success of small
business entities depends upon the capabilities of their owners or entrepreneurs. The Government
of UK follows EU criteria for defining different organisations. The micro organisations produce
the approximation of 2 million GBP through conducting business activities. The micro business
organisations keep not more than 10 employees for conducting their business operations. The
small business organisations in UK keep 50 employees for conducting day-to-day operations.
The annual turnover of small business organisations does not exceed 10 million GBP
(thecompanywarehouse.co.uk, 2017). As far as the medium business enterprises are concerned, it
can be said that not more than 250 employees work in medium business organisations. The
annual turnover of the medium business organisations does not exceed 50 million GBP. The
small and medium scale organisations have the capability of employees of producing 6.5 to 50
million GBP every year. As stated by Moroz and Hindle (2012), more than 15 million people do
get job in small and medium scale sector thereby resulting in the reduction of unemployment rate
in UK. 50 to 500 people can be employed in a small and medium scale business organisation. In
accordance to a statistical report 2016, 99% of the private sector businesses belong to small and
medium enterprises industry in UK (thecompanywarehouse.co.uk, 2017).
As stated by Martin et al. (2013), the UK has witnessed the growth of different aspects of
business, such as private, partnership, sole proprietorship and so on. According to a report, the
year 2016 has witnessed significant growth in the private sector business because of the
existence of the approximation of 6 million enterprises. The number of sole proprietorship
business organisation has also increased in UK, i.e., the approximation of 84,000. Because of the
growth in business in SME sectors of UK, the English economy has witnessed significant growth
in terms of GDP (theguardian.com, 2017). The SME sector in UK has been able to generate
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approximately 2 trillion GBP in the year 2016. In the year 2014, the private sector has witnessed
significant growth with the existence of 5.2 million business entities (fsb.org.uk, 2017).
In most of the UK proprietorship firms, the entrepreneurs have the authority in taking decisions
regarding business operations. As commented by McKeown (2017), the owners of the
proprietorship firms are liable to take up the responsibility with respect to organisational debts,
payables, expenses and so on. The partnership businesses in UK have to ensure the compliance
with business partnership related legislations. Most of the partnership firms conduct operations
based upon mutual liability. In addition, the transferability of share can be regarded as one of the
important aspects of partnership business in UK.
There are various aspects UK economy, which play significant role in influencing the growth of
SME sector in UK. As stated by Schaper (2016), the Government of UK has provided all kinds
of assistance to organisations for ensuring the development of SME sector. The Government’s
economic policy has brought about significant changes with respect to financial prosperity in
SME sectors, which are evident from the above mentioned statistical data. On the other hand, the
imports and exports business also play role in putting impact on SME industry. The exporting
organisations have been able to acquire opportunities for the diversification of business
activities. The importing organisations have been supplying raw materials and technologies with
the objective of making improvement in economy. As stated by Linton and Solomon (2017), the
FDI or Foreign Direct Investment has played prominent role in developing SME sector in UK as
it facilitates the transfer of know-how as well as state-of-the-art technologies amongst different
countries. As opined by Venkataraman et al. (2012), the unemployment can be regarded as
important economic factor, which has played prominent role in putting impact on SME sector.
The SME sector has been able to create employment opportunities for unemployed people In this
way, the small and medium business organisations have been able to ensure development in
terms of business profit generation.
Contribution of Small Businesses and Business Start-ups in the Growth of
Social Economy after Brexit (P4)
After the occurrence of Brexit, the UK economy has been able to witness significant changes. In
this context, it can be said that small business organisations and start-ups have been playing
prominent role in the growth of social economy. The business organisations small businesses and
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business start-ups have played prominent role in ensuring the development GDP of the country.
The occurrence of Brexit has been ensured with the departure of UK from EU. However, UK had
to face difficulties with respect to economy. As stated by Woodfield et al. (2017), the
economical growth has not been ensured in an proper manner since Brexit. The GDP has been
affected to a great extent due to the Brexit. The FDI has been affected due to the Brexit. In this
way, the Brexit has posed threats to the UK economy. The SME sector has been affected. The
firms, which deal with exporting business, have been affected to a great extent. On the other
hand, some of the SME in UK are quite happy with this Government’s decision of Brexit. It is
because it would facilitate the growth of small business and startups without facing intense level
of competition. In this context, the bright light can be shed upon the differences between small
business and startup. As stated by Carland et al. (2015), the startups can be regarded as business
entities, which are the initial stage of development. On the other hand, small business
corporations can be regarded business entities in different forms, such as partnerships, business
corporations.
Hughes et al. (2012), after Brexit, the small businesses and startups will be able to create more
job opportunities after with the expansion of business. A large number of unemployed people
will be associated with SME sector. The social economy will be influenced to a great extent after
Brexit thereby resulting in social and economic development. However, the growth rate of UK
economy will not be increasing due to the contraction in FDI after Brexit. The social security
will be improved with active participation of different self-help groups. The SMEs will also be
playing prominent role in ensuring social security. As stated by El-Gohary et al. (2016), the
international trading will be hampered to a great extent after Brexit. The imposition of tariffs will
be ensured on British goods. Small businesses dealing with exports and imports will be affected.
The growth of UK economy will be at moderate level. The SME sector will be playing important
role in social and economic development of the country after Brexit through reduction in
poverty, wealth distribution, provision infrastructure and so on. The SMEs will be providing
social amenities to people residing in UK. In this way, the SMEs in UK will be playing
significant role in developing social economy. The growth of GDP will also be at moderate level
as the SMEs will be getting opportunities for development in terms of financial prosperity and
business development after Brexit.
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Task 3
Characteristics, Traits and Skills of Successful Entrepreneurs and Other
Business Managers (P5)
It is important for the entrepreneurs to possess some skills, so that they can utilise them for
ensuring development of business. In this context, the name of two British entrepreneurs can be
mentioned- One is Richard Branson and another is Lord Alan Sugar. The characteristics, traits
and skills of these successful entrepreneurs have become inspirations for aspiring entrepreneurs
of UK.
Richard Branson has been able to utilise its leadership skills for developing its business. Richard
Branson has become the successful entrepreneur because of its ability in thinking in different
manner. He believes in the idea of implementing collaborative and democratic style of
leadership. In addition, Richard Branson, the founder of Virgin Group has the capability of
identifying the talents, which makes him different from others managers. Unlike others
managers, he gives utmost importance to the creation of positive company culture in
organisation. Richard Branson believes in the idea of mentorship and innovation while
conducting business activities, which make him different from others managers. As stated by
Chell et al. (2016), he does not believe in the idea of staying in comforting zone when it comes
to profit making. He believes in the idea of making optimum utilisation of organisational
resources for conducting effective marketing strategies. Richard Branson simply believes in the
idea of implementing hands on approach for ensuring the creation of employee engagement. In
this way, Richard Branson has been able to utilise the different aspects of its traits and skills for
improving business performance.
As commented by Bosma et al. (2012), Alan Sugar can be regarded as visionary leader. He
believes in the idea of implementing vision with the objective of achieving business goals. His
ability in developing people in terms of skills and knowledge has made him different from other
managers. He has become inspiration for most of the aspiring entrepreneurs because of his
ability in building consistent group with high level of productivity. Despite his autocratic
leadership styles, he has been admired for his effective leadership styles. He believes in the idea
of improving team working ability through the implementation of affiliative leadership. In
accordance with the opinion of McKeown (2017), Alan Sugar can be regarded as pace setting
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leader due to his ability in setting high level of standards. In this way, he has been able to
differentiate himself from others managers.
Role of Entrepreneurial Personality Aspects in Reflecting Entrepreneurial
Motivation and Mindset (P6)
From the above discussion regarding the characteristics, traits and skills of leaders, the clear idea
can be acquired about the different aspects of entrepreneurial personality, such as openness to
experiences, conscientiousness, extraversion, agreeableness and neuroticism. The business
entrepreneurs like Richard Branson and Alan Sugar have been able to improve business
performance through laying emphasis on curiosity. The openness to experiences can be able to
develop the innovation skills amongst entrepreneurs. The agreeableness plays prominent role in
creating cooperative value amongst entrepreneurs. The conscientiousness plays significant role
in developing hardworking mentality and motivation amongst the aspiring entrepreneurs. The
extraversion can be able to make entrepreneurs dominant and energetic, which are the key
success factors in business. As stated by Linton and Solomon (2017), the low level of
neuroticism can help entrepreneurs in developing self confidence. The development of self-
confidence can be helpful for entrepreneurs in achieving entrepreneurial success. In this way,
different factors of personality development can accelerate the development of entrepreneurial
skills amongst aspiring entrepreneurs. In accordance with the statement of Tselepis et al. (2016),
the development of different aspects entrepreneurs’ personality can be helpful in creating highly
motivational workforce in the organisations. In addition, the organisational workforce can be
able to productive if entrepreneurs can be able to utilise its leadership and entrepreneurial skills
for ensuring organisational effectiveness.
Task 4
Role of Background and Experience in fostering Entrepreneurship (P7)
There are certain factors, which contributes to the hindrance and fostering entrepreneurship. The
experience can be helpful in developing entrepreneurial skills amongst the people. The
experience can help managers in utilising entrepreneurial skills for maximising business
performance. As stated by Hong and Lu (2016), the effective utilisation of management skills
and visionary leadership can help entrepreneurs to ensure transformation of startups into
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entrepreneurial venture. From the example of Richard Branson, it can be understood that the long
time experience in entrepreneurship has helped him in developing his entity Virgin Group. His
experience in entrepreneurship has helped him in expanding business portfolio.
On other hand, it can be seen from the example of Alan Sugar that he had been able to ensure the
success in business despite the fact that he does not belong to affluent family. He has been able
to utilise his pace-setting and affiliative leadership skill with the objective of maximising
business performance. The background does not make any difference as long as entrepreneurs
have the willpower to achieve something. However, the lack of vision, long-term commitment
and willpower to achieve something may create hindrance in the way of developing
entrepreneurship skills. Therefore, it is important for the entrepreneurs to gain understanding on
business and entrepreneurship from experience.
Conclusion
After the research under entrepreneurship venture, it can be understood that to get successful
infeasible practice of business entrepreneurship and recreation of new things is very important. It
is mainly focused on the offering of the new products and services according to the concern of
societal response. The importance of the innovation and entrepreneurship helps the company
how to produce the services and products accordingly. The later companies can able to use this
type of innovations to establish their name of the brand and to become a market leader which
will create a value which will be shared with the society and own companies and also able to
contribute by altering the practices in their respective industry. The motivation that an individual
is required to become an entrepreneur are very diverse and also have the potential in social
change, rewards in terms of finance, and the persuasion of own interest and values. For
innovation one must be relevant enough to sustain business which must be able to affect a large
number of stakeholders. Entrepreneurship is most important for the young people as in the
modern world large entrepreneurship cannot guarantee the job for lifetime. Every individual
must be able to find out their own opportunities, can be able to create value actively, behave
ethically and simply follow the regulations and rules. As an enterprise one have to be responsible
enough for decision making, must be self-reliant, dynamic, opportunistic, able to create new
ideas etc.
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Reference List
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