Report on Evaluation of Entrepreneurship and Small Business Management

Entrepreneurship and small business management
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Executive summary
This report examines and evaluates the Entrepreneurship and management of small
businesses. The report has examined the various types of ventures that entrepreneurs may
consider, and it also assesses the impacts that both SMEs and large businesses on the economy.
Further, the report has examined how SMEs has impacted the social economy in the United
Kingdom. Further, the report has evaluated the critical aspects of an entrepreneurial mindset and
the skills that make entrepreneurs successful. Also, it has explained some of the environments
that hinder entrepreneurship.
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Table of contents.
Introduction.
I. Venture types that might be considered entrepreneurial.
I.1 Different types of entrepreneurial ventures.
I.2 Different types of entrepreneurs.
I.3 Relationship between ventures and Entrepreneurial types.
I.4 Similarities or differences between different entrepreneurship ventures.
II. Impact of small business on the economy.
II.1Impact of SMEs and large originations on the economy.
II.2Impact of SMEs on social economy.
III. Key aspects of an entrepreneurial mindset.
III.1 Entrepreneurs` characteristics.
III.2 Skills.
III.3 Business Managers characteristics.
III.4 Entrepreneurial personality and MINDSET.
IV. Environments that foster and hinder entrepreneurship.
IV.1 Impact of background and experience on entrepreneurship.
IV.2 Impact of entrepreneurial characteristics and personal background and
experience on entrepreneurs.
IV.3 Critical evaluation of how background and experience influence
entrepreneurs.
Conclusion.
Bibliography.
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Introduction.
Entrepreneurship and management of small businesses form critical aspects of any
economy. Most specifically, it is keynoting that entrepreneurship forms the heart of any business
and that every large company starts as a small business that is ordinarily led by an entrepreneur.
Additionally, entrepreneurship involves innovation and profit, where entrepreneurs are keen on
introducing an innovative product with the intentions of maximising profit. Additionally, the
entrepreneurs are experienced and visionaries who help them in developing plans that promote
success. In the United Kingdom, small businesses are regarded as the core of the country’s
economy. The entrepreneurialism of the United Kingdom’s business leaders and other business
founders offers numerous ranges of innovative ideas that help the small and medium enterprises
drive and promote the private sector. Furthermore, entrepreneurs and small business owners also
require the skills and knowledge needed in determining and making decisions regarding the most
suitable types of ventures. This report explores different types of entrepreneurial ventures, the
impacts of a small business in the economy, key entrepreneurial aspects that may guarantee
success and examine environmental factors that can foster or hinder entrepreneurship.
Venture types that might be considered entrepreneurial
Different types of entrepreneurial ventures
Start-up
A start-up is a young company that is established by one or more entrepreneurs and
focuses on the development of a unique product that is unavailable in the market. It is critical to
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note that most start-ups require enough financial support to facilitate their growth. Entrepreneurs
who adopt start-ups are faced with a challenge to prove the validity of their business concept to
all potential lenders who may be interested in investing in the business. The most common
characteristics of start-ups include that when they are starting, the companies generate little or no
revenue (Fontinelle, 2020). Further, start-ups are required to test their target markets to
determine whether they are feasible. Additionally, entrepreneurs are required to seek external
funding, and this may include taking loans from banks and other financial institutions. Besides,
since start-ups have no history, it faces investment challenges because the risk is unknown.
Additionally, experience and skilful management are required in running start-ups because they
have a high failure rate.
Acquisition
An acquisition is a venture where a business purchases a portion or all of another firm’s
assets of shares. It is critical to note that this venture approach is preferred by entrepreneurs
when there is a need to take control of the market and is also effective for facilitating the
strengths of the target company. It is keynoting that entrepreneurs prefer acquisitions because
they facilitate opportunities for dominating the rivals because this venture seeks greater market
share, and it also promotes the company’s growth strategy. The key advantages of the acquisition
include that it helps in reducing entry barriers which may be costly for small businesses, and
entrepreneurs may prefer this approach because it removes the concerns associated with building
a substantial client base (CFI Education, 2021). Furthermore, the acquisition is also instrumental
in facilitating quick market share despite the high competition and supports the firm’s strategies
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for gaining a competitive edge in the market. Often, the acquisition enables the company to
acquire resources and competencies that are ideal for facilitating rapid growth.
Franchise
A franchise venture involves acquiring the licence to start a business using the
franchisee’s name and other operating processes. This venture mainly focuses on buying the
rights to run a clone of the business (Jensen, 2021). Additionally, the franchisor grants the
licence to the firm to operate the business by adopting the features of the franchisor. By using
this market venture approach, the newly established small business enterprise should use the
services, products and promotion used in the parent company. The primary benefit that this
approach would provide is that it comes with a ready-made business approach; thus, the
entrepreneur knows how to run the business.
Joint venture
This is a business arrangement where two or more parties get into agreement on how to
raise the required resources to accomplish a predefined task or business activity. This venture
requires unrelated companies to combine their resources and expertise in order to pursue a
specific project. This approach is effective when a company aims at venturing into a market in a
new geographical area where it does not have knowledge about the market. This approach is
effective because the partners share the costs and risks involved (Nibusiness, 2021).
Additionally, this method is also critical because the partners share technical expertise, and this
makes the business more aggressive in the market.
Public-private partnership
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