Small Business Management and Entrepreneurship Research

This assignment involves a thorough analysis of various research papers related to small business management and entrepreneurship. The provided list includes articles from reputable sources such as Entrepreneurship Theory and Practice, Journal of Small Business Management, and Journal of Business Ethics. The topics covered include family involvement in small firms, entrepreneurial marketing, teaching entrepreneurship, and the importance of small businesses in local economies. The assignment requires a suitable title, meta title with prefix [UNLOCK], and a meta description for SEO purposes.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Types of entrepreneurial ventures and their relationship with typologies..................................3
P2 Similarities and Difference between entrepreneurial ventures...................................................5
TASK 2.................................................................................................................................................7
P3 Assessing and interpreting the impact of micro and small businesses in economy...................7
TASK 3.................................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs......................................................9
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation
and mind-set ..................................................................................................................................11
TASK 4...............................................................................................................................................11
P7 Factors that foster or hinder entrepreneurship..........................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
Entrepreneurship can be defined as a process in which an individual starts its own business
and takes all the risks and rewards by himself. It is considered as a dynamic process for creating
wealth by taking huge risks in the business. It can be in any form like time, cost and equity etc.
Entrepreneurs are having new ideas with them selves which helps them in making new types of
products in the market or introducing the old products in the new form (Blackburn, Hart and
Wainwright, 2013). So, it is very much required for the entrepreneur to be creative and innovative
so that they can grab more and more customers .
Small business management can be defined as a managing process in which the operations
and activities conducted in a small business is maintained and controlled in an effective manner. Its
main aim is to gain more and more profits in the market and it can only be done through effective
management. This report discusses about the range of venture types along with their typologies,
impact of small business have on the economy, key aspects related to entrepreneurial aspect,
environments that foster or hinder the entrepreneurship.
TASK 1
P1 Types of entrepreneurial ventures and their relationship with typologies
Entrepreneurial Ventures –
It is often said that entrepreneurial ventures are similar like the regular business but it is not
so. It is an organisation or a business that is prepared by a person who is innovative and knows very
well how to grab any opportunity so as to produce economic as well as social value in the business
(Bridge and O'Neill, 2012). It is very fast in creating wealth but the risk attached with it is very high
s they out of the way ton produce goods and services.
Entrepreneur –
He is the person who starts the business and runs it along with the limited resources he has
with him. They are the sole ones who are responsible for making effective goods, taking all he risks
and rewards all by himself.
Types of Entrepreneurs – there are various types of entrepreneurs. Few of them are:- Serial Entrepreneurs – These are the type of entrepreneurs who starts their business
continuously and sells it off on a later stage. They have lots of new s well as creative ideas
with themselves and enough funds as well. Social Entrepreneurs – They are the type of entrepreneurs who focuses m,ore on solving the
problems of the society rather than earning profits from it . They are very ambitious and
capable of handling major social issues that are prevailing in the society.
 Female Entrepreneurs - These are the entrepreneurs who runs a whole an enterprise which

consists of mostly women. These enterprises are mainly owned and controlled by women
itself and are responsible for creating 51% of employment.
Concept of Entrepreneurship -
It can be defined as a process of preparing , designing and ten finally launching a new
business which is started as a small business but later on can take a huge form ( Carsrud and
Brännback, 2011). The people who runs it is called as a entrepreneurs. It is a creative process ion
which lots of time and energy is required of the person who runs it.
Key Ventures of Entrepreneurs – The various types of Entrepreneurial ventures are :- Small-business Entrepreneurship – As per the current scenario , there are various types of
entrepreneurial ventures that are running in UK . There are approximately 6 million small
businesses that are currently running in the market. It includes various types of businesses
like grocery stores, internet cafe owners, travel agents, consultants , carpenters, electricians
etc. These people are running their business on their own risk and making all the profits by
themselves only. Scalable Entrepreneurship – These are the ventures which are being created by a strong idea
of the entrepreneurs . They have a vision to change the world by there idea. They arrange
funds from market and for this they have to convince the people to invest in their idea.
 Social Entrepreneurship – These are the type of business hat is running so as to provide
benefits to the society through their products . They produce only these type of products that
are healthy and does not affect the people in any wrong manner. For e.g. Patanjali Products
are very healthy and this venture was started just to provide Ayurvedic products to their
customers at affordable prices.
Relation of ventures with Entrepreneur Typology –
All the entrepreneurial ventures are connected with the typologies in some or the other
manner like scaleable entrepreneurship can be connected with the Lifestyle ventures and social
entrepreneurship can be connected with the managed growth venture typology. So , there are
various types of topologies that are present and that connect very well with the type of ventures
running in the market (Chittithaworn and et. al., 2011).
Types of Topology - The various types of Entrepreneurial typologies are :- Lifestyle Ventures – These type of businesses gives immediate profits to the businesses. The
entrepreneurs here generally likes to work alone. Survival Ventures – These are the type of business which is started just to earn a livelihood
for the family. It is generally a small business which can be in the form of Grocery store,
internet cafe, barber store etc. Managed Growth Ventures - These are the businesses that is run by a smart business man

which knows how to make money. The people who invest ion such businesses knows that
there money will not go waste and they will make profits definitely (Chrisman and et. al.,
2012).
(Source: Types of Entrepreneurs, 2017)
P2 Similarities and Difference between entrepreneurial ventures
There are various types of entrepreneurial ventures that are running in the society . All these
are effective and efficient in their own way (Dennis Jr, 2011). They all are very different from each
other as well but have some similarities too. So, the similarities and differences that are present
between the types of entrepreneurial ventures are :-
SIMILARITIES Lifestyle Ventures Social Entrepreneurs
 These ventures does not
have an aim to earn
profits.
 They are started as a
small business.
 These ventures are
started for benefiting the
society not for
themselves.
 These businesses is also
started as a small
business and just to

work for the people.
DIFFERENCES Lifestyle Ventures Serial Entrepreneurs
 They are the ones who
operate their businesses
with their own funds .
 They does not have any
strategy prepared as
they run their venture
with their passion.
 They don't have a
particular location as
they d business as they
like
 Their aim is not to earn
profits as they rum it as
per their lifestyle .
 These are the type of
ventures which makes
use of investors so as
get funds for starting as
well as running the
business.
 They are always
prepared with their
strategy which will be
implemented in their
business.
 They are having a
proper location from
where they operate their
business.
 They are having an aim
to earn profits and thus
they are working for this
only.
SIMILARITIES Female Entrepreneurs Male Entrepreneurs
 Women are very
focussed in their work
whether it is in office or
home.
 The female
entrepreneurs are very
much creative and
innovative in their work
an they use this in their
business also.
 Mens are also foussed
when they do their
businesses.
 They do their business
with a passion and using
their full innovation and
creativity in their
business.

DIFFERENCES Female Entrepreneurs Male Entrepreneurs
 It is said that the female
entrepreneurs take more
time in taking
decisions .
 They are having their
business focussed in
making quality products
and making social
contributions.
 They are more
conservative when they
have to take financial
risk.
 They are very focussed
in haing good
relationships with their
customers.
 They take decisions
very easily.
 They are having their
focus on improving the
economy and reducing
the cost of production as
well.
 They are more willing
tobn take financial risks
in the market.
 They are task oriented
people.
TASK 2
P3 Assessing and interpreting the impact of micro and small businesses in economy
CLASSIFICATION OF BUSINESS:- There are various types of businesses that are conducted in
a society. It can be classified as -
Micro Business – It is a type of business which is having just one owner . The total no. of
employees working there are 0-9 which includes the owner. There are various types of micro
businesses that are being started by the youngsters or the women (Drucker, 2014). It is a very
flexible type of business in which the owner can work as per their own skills and capabilities. There
are around 5.3 million micro businesses running in UK.
Small Business – It is a type of business that is started by an individual person whose aim is to earn
profits . Thee employee's range here is 0-500 only. Every new venture which is started is included
in the small business only and thus it is the main reason why there are more than 6 million small
business in UK. This data includes micro businesses as well. These businesses are responsible for
creating 64% of new jobs in the last 20 years.

Medium Size Business – These are the companies which is neither categorised under small
business and nor in large businesses. It is somewhere in between and therefore there is no official
definition prescribed for it . But it is specified that in such companies , the no. of employees ranges
from 250 to 500.
Nature Of Small Businesses – It can be classified as under:-
 Manufacturing firms – In this type of business, the no. of employees are less than 250. here
the manufactures take the raw material from the society and change it into finished products.
 Services – in this, the annual income of the entrepreneurs should be around 2 million . Here
the business provide its services to the customers and it includes hotels , beauty parlours etc.
 Wholesaling – In this type, the annual income of an wholesaler is around 9.5 million. They
provide goods to the retailers at less prices who then later on sells it to the customers.
 Consulting – These are the type of business where services are provided regarding
management of company , managing sources of finance, advisory etc.
Characteristics of Small Businesses – The characteristics of small-business are :-
 It is solely managed by the owner and thus there is no delegation of authority and the whole
risk and loss in borne by the owner (Fassin, Van Rossem and Buelens, 2011).
 Here, basically family runs it along with some hired workers.
 It does make use of external financing much and they manage it by themselves only.
 It does not do long term planning and is happy with the short term planning only.
Impact of economy on SME'S – The impact of small-business on economy can be in following
ways:- Local impact – The SME's are having a strong impact on the local businesses as they are
having very helpful in providing employment to the people . They are having a positive
impact only as they focus on improving the quality of life of the people living in society
(George and Bock, 2011). Regional Impact – The impact of SME's on region is that here they get the advantage of
making products of their choices and keeping the prices of their choice as well. They
generally knows the choices of the customers and thus make products as per that only.
 National Impact- The impact of SME's on nation is that they help in developing the
economy by opening more and more businesses and thus creating more jobs. Through thus
more money will be generated in the economy and the country will become rich.
P4 Contribution of small businesses and start-ups in growth of social economy
BREXIT – It is a British Term which is abbreviated from the word “British Exit”. It is a
popular term that is used to discuss about the prospective withdrawal of UK from the European
Union (Gorgievski, Ascalon, and Stephan, 2011). This process was begun from march 29 2017.

here the people of Britain voted for a British Exit and the chairman of Britain was not in favour of it
and thus when the decision came , the PM resigned from his post. It is considered as a debatable
topic because after this the new PM is now trying to break the stereotype in the EU negotiation after
Brussels.
Difference between small-business and Start-ups- The difference between small business and
start-ups are :-
Small-business Start – ups
 These are made out of a new idea or for
earning livelihood for family.
 It provides more of a traditional product
to its customers.
 It is considered as less scaleable than
start-ups.
 It can be a privately owned firm also
having less than 250 employees.
 It is generally creating through a new
idea.
 It creates innovative idea and are
generally having huge market size as
well.
 It is having a scalable business model.
 All their ideas are innovative and thus
they try to give something to their
customers.
Impact of small-business on social economy of UK are:- Economic and Social Development – Small businesses are termed as a economic
powerhouse of the country. It can be noted that within Sme's , there are now 5 million of
these businesses in UK. These are responsible for creating more than 15.2 million jobs in
UK which is a big positive factor for UK. Improvement on social security – Social security is a factor that helps in promoting income
stability ion the economy of UK. It helps through the economy by providing them a steady
income which they lost due to retirement, disability or death. Its impact is much more in the
economy and is not just till the balance of payments (Goss, 2015). Effect on revenue and taxes – The impact of revenue and taxes in UK is very strong because
they are creating more jobs in the economy because of which more income is generated in
the country. If income will be there then the people will also have to pay taxes and thus the
country will be able to collect more amount of taxes. There is a direct relationship between
revenue and taxes as if there will be increase in revenue then there will be increase in
income as well.
 Effect on poverty and other factors – This factor is having a strong effect on the economy
because if poverty is present in the country then their growth is very slow. Small businesses

helps in reducing the poverty from the economy by creating more wealth and employment in
the economy.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs
Opening an enterprise is easy becoming an entrepreneur is not an easy task. If the person
wants to become a successful entrepreneur they have to possess certain skills and characteristics
that will be used by them in conducting the activities (Jones and Rowley, 2011). The skills or
characteristics present in a manager and an entrepreneur are:-
Skills /Characteristics Entrepreneur Manager
Strategic Vision If an entrepreneur wants to lead
a business successfully then
passion and a good business
idea is not enough. They will
need a strategy and a vision
also that they will use to
conduct the business activities.
The manager is also required to
have a strong vision which will
help them in guiding the
employees in a better manner.
Communication Communication skills plays an
important role in making a
business successful as the ideas
and actions will be
communicated properly to the
employees.
This is an important skill that
should be present in the
manager as through this only
they will be able to gain the
trust of the employees and
knows their issues.
Delegation The entrepreneurs who wants to
be successful divides his work
in the whole team and doers not
taken the whole work on
himself.
The managers also delegat6ed
some of its work to its
subordinates so that they will be
able to complete all their
activities on time.
Critical thinking Here the entrepreneurs do deep
think about the task they are
performing in the company . All
their ideas and actions are as
per that only.
The managers also do deep
thinking so as to understand the
plans and policies that are being
implemented in the market.

The traits to become a successful entrepreneur are:-
 The entrepreneur should be determined towards completing their goal and should work hard
for it as well.
 They should not be afraid to take risks because after this only they will be able to earn
profits as they both are related with each other (Karlan and Valdivia, 2011).
 Entrepreneur should have a high level of confidence in themselves so that they can face ant
type of situation in life.
 They should always be ready to learn new things so that they can apply it in their business
and achieve success.
P6 Assessment of aspects of entrepreneurial personality in reflecting entrepreneurial motivation and
mind-set
The importance of entrepreneurial personality in developing the business in the economy is
very crucial as all the activities here are conducted by the owner ,so they need to have a good
personality so that they leave a good impact in the society. So, in order to have a good personality,
various skills , personality and traits must be present in the person so as to become a successful
entrepreneur (Neck and Greene, 2011). These traits make the personality of an entrepreneur a strong
one which helps them in carrying out the activities in a more effective manner. It is also said that the
people who are working with the entrepreneur is having an effect with their personality as well.
In order to examine the traits, the Big Five model is used which is as follows:-
 Openness to experience – It reflects the degree of creativity, innovation and intellectual
thinking a person is having. It also describes the extent to which a person is thought to be
imaginative and dependent. So , in short it is said that the entrepreneur should be open
minded so that they can learn something new always (Schaper and et. al., 2014).
 Conscientiousness – This trait tells that the entrepreneur should be efficient in their work
and also conscious about achieving their goal. This helps then in achieving their aim on
time .
 Extraversion – it is the factor which depicts that the entrepreneur is energetic at work and is
also very social. They possess all the qualities of becoming a leader.
 Agreeableness – It depicts that the entrepreneur should be good in nature and should be
cooperative and trustworthy also so that the staff who is working with him should believe in
them .
 Emotional stability – This trait shows that the entrepreneur should be calm and focussed so
that they are able to complete their work on time .

TASK 4
P7 Factors that foster or hinder entrepreneurship
The rewards and drawbacks of entrepreneurship are:-
Rewards Drawbacks
 Control – In this the entrepreneur
gets the work they like to do and this
acts as their biggest strength.
 Excitement – All the entrepreneur
enjoy their work as they are doing
work what they like and their each
day is filled with new opportunities.
 Flexibility- The entrepreneurs fix
their working hours as per their
comfort .
 Freedom – They are having complete
freedom to do whatever work they
want to do and in how much time.
 Administration – Taking all the decisions
along can be a benefit but it can soon take
form of a burden .
 Competition – As a small business owner ,
staying in competition is little difficult.
There will be need to differentiate our
business from others.
 Work schedule – The schedule of the
entrepreneur is unpredictable and thus it is a
very important for the entrepreneur to
manage their work so that they complete
their operations on time.
 No regular wages – There is no fix salary of
an entrepreneur . If they are at loss then they
will not get any salary.
CONCLUSION
From the above report, it can be concluded that entrepreneurship is a very important process
that running in the society. The person who runs it is called as an entrepreneur. The enterprise which
is opened by the entrepreneur generally comes under small businesses. There are various types of
entrepreneurial ventures that are present in the society and it is the decision of the entrepreneur that
which type of business they have to do . In this report, various types of entrepreneurial ventures and
their relationship with the typologies is defined. It is also shown that how a small-business is
different from that of the start-ups. Along with this , the skills and traits that are required in an
individual to become a successful entrepreneur is also discussed here.

REFERENCES
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Online
Micro and small-business ventures.2017.[Online]. Available
through:<https://www.smallbusinessbank.com/about/micro-vs-small-business/ >.
Aspects of Entrepreneurial personality.2017.[Online].Available
through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
5251.html>.