Entrepreneurship and Small Business Management

This assignment delves into the crucial relationship between entrepreneurship and small business management. It examines the impact of entrepreneurs on economic development, highlighting factors influencing entrepreneurial intentions and behaviors. The discussion encompasses various aspects like sustainable development in entrepreneurship, public procurement's role in supporting small businesses, and the importance of personality traits for social entrepreneurs. The assignment also considers contemporary trends and challenges faced by entrepreneurs, providing a comprehensive overview of this dynamic field.

Entrepreneurship and Small
Business Management
(opportunities towards small
business post Brexit)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of entrepreneurial venture...........................................................................................1
Related with typologies...............................................................................................................2
P2 Similarities and differences of various entrepreneurial ventures...........................................3
Task 2...............................................................................................................................................4
P3 Interpretation of relevant data and statics for impact of small and micro business on the
economy......................................................................................................................................4
P4 Importance of small-business and start ups in social economy.............................................6
Task 3...............................................................................................................................................8
P5 Determination of characteristic, traits and skills of successful entrepreneurs.......................8
P6 Identify various aspects of entrepreneurial personality.........................................................1
Task 4...............................................................................................................................................2
P7 How background and experience affects success of entrepreneurs ......................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Entrepreneurship is defined as the process including designing, launching and running the
new venture initially in small level with individuals who are optimistic and able to bear any
losses or risks. In other words, it is a desire to set up a business as well as capacity to invest in
innovation in the risk frame profit. In this procedure, includes the combination of land, labour,
capital and resources for generating revenue (Ackermann, 2012). Small businesses are those that
are owned or operated independently and its size is small. In these kinds of businesses, there are
few employees as not more than 100 workers and revenue also less than $25 million. Brexit
means that the denotion of exit taken by Britain from European union. This assignment is based
on different types of venture with similarities or differences, and the impact on small business
with contribution to growth. In addition to this, characteristics, personality and trait of an
entrepreneur are also discussed. It will also define about entrepreneur's mind-set and motivation
along with some factors that may hinder in entrepreneurship.
TASK 1
P1 Types of entrepreneurial venture
Entrepreneurial Venture refers to the company which places new ideas or innovation
and opportunities at its heart in order to produce as well as increase social values and economic
condition.
Entrepreneur: Generally, entrepreneur is a person who frames and develops or runs
business with some limited resources such as man, capital, land and finance for the purpose of
earning or gaining profits (Blackburn and Hart, 2013). They also take responsibilities for bearing
risk or uncertainties alone in their business.
Entrepreneurship: It is the process which aid as growth and formation or restructuring
of economic resource and wealth of country.
Key ventures-
Small business entrepreneurship: In this type of business, one or more is coming up
with some ideas, objectives and specific plan resources to begin their own venture and they
invest large amount and lower segment in which business states with expectation of generating
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profits. In this, it includes the general stores, tour and travel agency, carpenters etc. There are
approximate 5.7 million business in the UK and they made up around 99.7% of companies; all
non-government workers. They generally hire their family members for the venture with the
purpose of feeding them as well as generating profits. Individual can get funds from family,
friends and business loans.
Scale start-ups entrepreneurship: These types of entrepreneurs consider and believe
that their ideas and vision will change this world in the future. They have specific quality or
ability to attract investment from equally best financial investors and venture capitalist.
Entrepreneurs hire the best one or experienced person who are capable, unstoppable and
confident in running business (Bridge, 2012). They use scale business model for finding the best
option among several alternatives which helps in reducing cost and expenses.
Large Scale business: This business generally operate as several activities at broad
segment for smooth running business, as well as its development so they are doing various range
of transactions. Large firm are have huge life cycles which grow by innovations, offering new
products and services in market that are differ in marketplace.
Social enterprises: These types of businesses are keeping focus on social values as
creating products and services for fulfilling customer's needs and wants. They always focus on
society or social welfare and try to match with their desired expectations as well as requirements.
Related with typologies
There are some relations of entrepreneurs with different types of typologies such as:
Serial entrepreneur: In this, entrepreneur continuously comes up along with new ideas
and starts new businesses. He generally gives responsibility to someone else and move on to new
ideas and new venture. So, any person can start the business by getting ideas or suggestions from
serial entrepreneurs. For example, Andreas von Bechtolsheim as the co-founder of Sun
Microsystems and he left this company and established Granite System which manufactured
network switches as well as he change of companies and started new ventures with innovative
ideas.
Female entrepreneurs: She is a person who starts or operates any venture. They
organise and manage any enterprise, specially a firm and able to take risks for running the
business. There are many female entrepreneurs in the world who create inspirations for others.
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The best example is Oprah Winfrey as she has films production company and co-produce the
award-winning film which is Selma.
Social entrepreneurs: They usually drive social innovation and transformation in several
fields in which include education, health, environment and enterprise development. They build
strong and sustainable organisation that are either not-for-profit or companies (Bruton, 2010).
For example, Bill Drayton who is founder and current chair of Ashoka.
P2 Similarities and differences of various entrepreneurial ventures
Lifestyles venture with similarities Serial entrepreneur venture with
similarities
These types of entrepreneurs invest money at
place where competition is high as well as
whereas cut-throat competitions in the market
and they focus on building good image among
them by providing goods and services for
generating higher profits. They are very
confident about their ideas and innovation that
it will bring the best results as well as believe
about innovations in products and services
regarding its creativity which will help them to
bring higher profits and even able to perform
best for bringing stability or growth.
These types of entrepreneurs come up with
new ideas and innovations and create
something new which is not already exist in the
market. They bring some modification in
existing products or services which helps in
attracting more customers towards the
company. Entrepreneurs invest more funds for
generating their ideas and create demand
among end users. They always focus on
competing competitors with creating unique
things.
Differences Differences
The differences among entrepreneurs are that
they invest more funds as well as spent money
to achieve competitive advantage and create
demand in the market. They generally focus on
tough competition and want to earn high
through rivalry in the marketplace so they also
consider higher profits.
These types of entrepreneurs concentrate in
working hard as well as focus on generating
new ideas and innovation for running business.
They create new things or unique products and
services which do not exist in the market.
Serial entrepreneurs also sell their business or
ideas to other for running organisation and
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move on in another field.
Male entrepreneurs with similarities Female entrepreneur with similarities
Usually, male entrepreneurs thinks that they
can bear any losses or risk while running
business. As they are confidant about their
ideas and capabilities which is enough tom
manage entire business operations
Female entrepreneurs are those who have
ability to run the business and capabilities of
doing continuously work for achieving goals
and objectives. They maintain all activities in
effective manner as it can be said that females
can play multitasking role in a certain time
period.
Differences Differences
Entrepreneurs made themselves strong as they
work hard to improve firm conditions in
several situations and try to build good image
among competitors. They focus on achieving
future growth by maximising size or wealth of
their organisation. And they work for earning
more profits as well as generating return on
investments.
They also have qualities to improve their
business as well as try to deal with customers
for maintaining good relations with them.
Female entrepreneurs are multitalented as they
manage personal and professional life at same
time and play various roles in building good
relations.
So there are some differences and similarities among ventures that helps in understanding
about nature of business as well as support in adopting various types of strategies tom compete
with competitors. Their main aim or objectives are earning high profitability and maximise
wealth of an organisation (Burns, 2010). They have ability to make decisions and take actions in
any situations for surviving from risk and uncertainties and always ready to face several
challenges.
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Task 2
P3 Interpretation of relevant data and statics for impact of small and micro business on the
economy
Micro and small-business consider as an enterprise which start by a individual who take
responsibility for organising and managing it to earn profits. In such kinds of businesses, there
are less employees as not more than five including the owner, who responsible for making
decisions and taking actions like financing entire business. Person uses his personal assets or
resources to starts the venture. If the business fail then it will negatively impact on owner and if
firm success then he will get all benefits so rights of risk bearing or profit getting is on director
or owner's hands (Ligthelm, 2010). Small-business play important role in contributing economic
growth as it support in country's development because those business come from various
background which helps ion providing employment opportunities to the people. It may be
possible that micro business not contribute as much as corporate organisation but it support in
developing local or regional areas of the country.
Illustration 1: imapct on economy
(source: UK small business 2017)
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this graph depicts that micro and small-business are making major impact on entire nation as
compare to other companies. As it shows that the small and medium industries together
generated more profit as approx 58.7% and turnover in the UK.
Business support in various fields such as improving economic positions and financial
development. Micro and small-business helps in increasing GDP of nation as entrepreneurs come
with new start ups and contributes in economy growth by investment. So enterprises are
generating more income or revenues. There are three primary ways that small or micro business
contributing such as giving people opportunity to achieve financial independence, encourage
innovations and create employment opportunities (Hall, Daneke, and Lenox, 2010). Due to
Brexit, it impacted on micro enterprises in respect of rules, regulations and policies so these all
influenced various environmental factors of UK's companies. All businessmen faced many of
challenges or changes due to separation from European Union (EU) like tax rates were increased,
legal policies or code of conducts etc. Brexit factor also affected on money and time
management, hiring right person and making marketing decisions for products and services. Here
are some criteria where micro and small business impact on the economy and factors are as
follows:
Local impact: Start ups are engine of growth as it allows both citizen and government
to acquire the goods and services that need to grow and it also support to new comers or young
people in giving inspirations for coming with new ideas and innovative things for making
business in effective manner (Fassin, Van Rossem and Buelens, 2011). Micro and small-business
stimulate local economies and encourages other to take the same leap towards small business
owner.
Regional impact: Start ups generally helps in contributing in infrastructure as it
improve particular regional areas and develop community or society by creating good
environment. It also support in providing job opportunities to the social people for fulfilling their
basic needs or demands as well as increase standard of living.
Impact on national economy: Small-business contributes in increasing nation's GDP
that support in economy growth. So it directly affects import and export which helps in
generating incomes as tax rates, custom duties, exercise that contributes in national economy.
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P4 Importance of small-business and start ups in social economy
The small business start ups are contributing in economy growth. However, Brexit which
is British and Exit from European Union so it is creating so much hurdles when start a venture or
business expansion in the UK (Down, 2010). Although relation of society with economy refers to
social economy therefore small firms are having impact on society as well as it helps in
increasing their level as it it is require to have sufficient funds for running business in critical
situation or conditions. Government is also supporting to small and micro businesses as they
provides funds, loans in minimum interest rates as well as promoting those business for country's
development. After Brexit, there were some circumstances regarding government policies and
procedures which had to faced by by several businessmen and also small start ups. So it has
proven that small businesses play vital role in developing country and contributes in economy
growth (Dennis Jr, 2011). It directly affect on social people in their development because micro
firms support in creating jobs or work which helps in removing or reducing unemployment as
well as poverty within nation. There are several ways in which small-businesses helps in
contributing growth of social economy such as:
 Small or micro business produces products and services in cheap and lower prices so
people can easily purchase to satisfy their needs and wants. It also helps in increasing
consumption of goods by effective manufacturing. In the time of Brexit inflation of
country was reduced for particular time period.
 Micro business helps in creating best environment or good infrastructure in regional
rural areas. So country can develop through small start ups in effective manner.
 Micro firm consider the employment ratio as it helps in increasing that ratio and
decrease unemployment as much as possible.
 In this, equality can be see or feel because they allow to do work for everyone whether
they are male or female so any one can start their venture according to capacities or
abilities.
 Generally entrepreneurs are very talented in utilising available resources for producing
goods and services. They always try to get maximum outputs from minimum inputs. So
for the society development, small-businesses support in reducing wastage.
 Micro businesses helps in providing employment opportunities to the social people so it
will reduce unemployment and develop society people in giving financial support.
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 Usually, entrepreneurs come with ideas and creative thinking for doing something new
so it is the inspirations of young people or any individual to get inspire and take
decision for starting a new venture.
 Small and micro business focus on social welfare so they contributes in funding, charity
or donation for providing education to the poor children. So they support for building
schools and government offices and also provide free educations to poor people.
 Small-businesses or start ups mainly contributes in economy growth of the country as
UK's start ups contributed more income or revenues after Brexit.
Task 3
P5 Determination of characteristic, traits and skills of successful entrepreneurs
A successful entrepreneur should have qualities as well as some traits, skills and
characteristics for running the business. Entrepreneurs are self-motivated, inspired, have ideas,
thinking of creating new things that helps to lead the firm in effective manner (Cowling and
Ledger, 2012). There are various successful entrepreneurs in the whole world who started from
micro level and they have become a good businessmen and created tough competition in the
market. Some of experts said that entrepreneurs are born not made and same again, that
philosophers said about entrepreneurs as they can be made by acquiring knowledge, educations,
training and learning for getting success or create a new venture in the market.
Illustration 2: qualities of successful entrepreneurs
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Steve Jobs: A co-founder of Apple. His story provide inspirations to young people that how he
started business. Jobs dropped out from college due to poor financial conditions (Chittithaworn,
and et. al., 2011.). He struggled in his life and then he started a Apple computer company with
friend and changed the consumer electronic industry. His net worth is $8.3 billion.
Bill gates: He is one of the most entrepreneur and richest man in the world. He is co-
founder of the worlds largest PC software company that is Microsoft and he has net worth to be
$79 billion. Bill gates also started venture by developing ideas and new inventions.
Therefore it has proved that entrepreneurs required some unique characteristic and skills to run
the business and generate more profits.
Hard worker and disciplined: Entrepreneurs are always ready to face any situations as
they do not afraid from risks and do work hard for getting success whether it is day or night.
They always focus on achieving organisational goals and objectives so they work hard for this.
Motivation: It is most important traits or feature of successful entrepreneur that they
must be passionate and self-motivated (Burns, 2010). So entrepreneurs motivate themselves in
doing work without bored, and always focus on improving work productivity like Steve Jobs and
Bill gates used to do.
Risk taker: Entrepreneurs have ability to bear any kinds of losses and risks while
running an organisation. So they also called risk taker. Entrepreneurs have to plan for making
strategies or taking decision regarding uncertainties that how they can survive from this
situations. That is why, they concentrate on money and time management.
Flexibility: Entrepreneurs must be flexible in any situations for adaptability as well as
adapt any changes or challenges to survive the business. They must require to take nay actions
that depends on the situations so it is required to be flexible and adaptable for growing
enterprise.
P6 Identify various aspects of entrepreneurial personality
Behaviour of entrepreneur depends on their personality. This affects capability to perform
several activities related with business in efficient manner (Meyer, 2011). Various useful factors
determines characteristic of their personality that is required to influence mindsets and
motivation of others. Main components of these behavioural aspects are as follows-
Agreeableness- First and foremost factor related with personality of entrepreneur is
agreeableness. It means they are focussed towards maintaining positive behaviour at work place.
For this they uses several motivational tools to ensure good relations with employees. It is very

important for coordinating all the activities in effective manner. This is useful to accomplish
group goals properly.
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Extraversion- Entrepreneur should be outspoken person. They are required to be
confident in sharing their ideas, opinions and views without any fear. It is most important
element in order to influence mindsets and motivation of other persons. Such persons encourages
open mind in whole organisation due to which employees will feel free to share their opinions.
Conscientiousness- This emphasises on orientation to achieve desired goals. If an
entrepreneur will be oriented towards aims then only they can influence mindsets of employees.
Stable emotions- It is very important that an person should be able to maintain stability
in their feelings (Kiss, Danis and Cavusgil, 2012). They should ensure politeness and calm
attitude even when the situation is complicated. It is useful in managing people in effective
manner in tough conditions.
Openness to experience- One of the most essential aspect of entrepreneurial personality
is ability to experience fresh situations. Business environment is not certain as there are constant
changes in factors of this surrounding. They should be ready to deal with innovative things in
order to run their ventures efficiently. If they themselves will able to accept changes then only
they will be able to motivate the mindset of others.
Task 4
P7 How background and experience affects success of entrepreneurs
It is not an easy task to start own venture. There are several challenges that are faced by
entrepreneurs in the process of business. They gets in touch with different types of barriers that
affects their way to success (Fayolle, 2013). Their background and experience are most
important hurdles in this scenario. Personal background includes aspects that a person faces in
family, school, colleges and society they belongs with. Whatever they learns in these areas that
influences their behaviour and personality. Values, qualifications and culture plays an important
role in success. But if an entrepreneur had not get such learnings in effective manner then it
could affect their ability at workplace and due to this problems might arise in attaining success in
business.
Experience of these persons includes conditions they have faced in their past life. If they
have faced loss of funds in previous investments then it is quite obvious that they will always
feel scared in taking risks related with investments (Desai 2013). Also if they have faced any
fraud incident in past then it will become difficult for that person to trust someone easily. Due to
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this they will not be able to make good relations with people and will be a big barrier in their
journey to success.
CONCLUSION
Above this project report, it has been concluded that entrepreneurs are the person who
start their venture for the purpose of making profit. Entrepreneurship has various types as well as
typologies like small-business, social enterprises, male and female entrepreneurs etc. that helps
in contributing in country's economy growth. Brexit is term that used for denotion of exit taken
by British from the European unions so it affected on the micro and small-businesses due to
changes of rules and regulations. This assignment is based on entrepreneur's characteristics and
skills that made them successful. Some factors also considered which influenced the behaviour
for creating new or unique things.
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