Entrepreneurship and Small Business Management Report - Overview

This report delves into the realm of entrepreneurship and small business management, commencing with an introduction to the core concepts of entrepreneurship and the diverse types of entrepreneurial ventures, including small businesses, scalable start-ups, large companies, and social enterprises. It then contrasts and compares these ventures, highlighting their differences and similarities. The report also examines the impact of macroeconomic and microeconomic factors on business economies, exploring their influence on local, regional, national, and international scales. Furthermore, it emphasizes the critical role of small businesses and business start-ups in fostering societal growth, including their financial aspects and importance. The report concludes with an analysis of the characteristics of successful entrepreneurs, the interplay between personality and entrepreneurial motivation, and the impact of background and past experiences on fostering or hindering entrepreneurial endeavors. The report covers topics such as survival ventures, lifestyle ventures, managed growth ventures, and aggressive growth ventures, providing a comprehensive understanding of the entrepreneurial landscape.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1. Explain entrepreneurship and different types of entrepreneurial ventures...........................1
P2. Differences and similarities between each type of ventures................................................3
P3. Impact of micro and macro on economy .............................................................................4
P4 Explain the importance of small businesses and business start up on growth of the society.
.....................................................................................................................................................5
PART 2............................................................................................................................................7
P5 Characteristics of successful entrepreneurs...........................................................................7
P6 Reflection of personality over entrepreneurial motivation and mindset................................8
P7 Background and past experiences foster or hinder entrepreneurship..................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur are person or individual that introduce his idea of running a business in market
and then takes risks, manages all operations and functions in such a way that it can be helpful in
achieving goals and objectives of business as well as his own. For managing all these activities of
business he should possess qualities of a successful entrepreneur. Following report is made after
research on different qualities and skills, past experience as well as their family upbringings
(Bruton, Ahlstrom and Li, 2010). Small businesses are those entities which help economy on large
scale by providing employment to people of local areas and contribute to national GDP as well. This
file is consisting of different entrepreneurial ventures, role of small businesses in economy.
Objectives and aims, scope of these businesses is also discussed. It contains risks and rewards
involved in starting a new business as well.
PART 1
P1. Explain entrepreneurship and different entrepreneur venture
Entrepreneur is a person which has high skilled and knowledge to manage the business activities.
The company has the capacity and ability to manage a business functions which provides high
profits to the employees. An entrepreneur is a person who assume all profits and production of
every company , innovate ideas and products and services which have to sale in the market. They
control commercial activities , directing the factor of production and that are required to exploit a
business opportunities. The person who manage and operate all the business activities is known as
entrepreneurship. Entrepreneurship is the process by which a person or team identifies a business
opportunities and develop and acquire the essential resources which used for exploitation. The
social entrepreneur achieve business goal which are required to fulfil the customer expectation and
estimate the future sale and profit . Entrepreneur is the act which make a person who is develop new
types of products and services and attracts new customers. (Dacin, Dacin and Matear, 2010). The
person who have clear, vision and mission to achieve its goal. The scope of entrepreneurship is
massive in a developing country like India. The unemployment in the country is increases day by
day and under employment is also added in that. The employment percentage 5% in 2016, and
people who have jobless their percentage is 6% in the last year.
Entrepreneurship types
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1. Small business Entrepreneurship- The entrepreneurs are started their business with small
scale. The small business provides jobs to the rural people who have not enough money to
live. Small businesses like grocery stores, hairdresser, consultant, travel agent and
electrician,retailers, shopkeepers etc.
2. Scalable Start-up Entrepreneurship- A person who is entrepreneur should start the
business to invest small amount in the market and offer discounts to attracts the customers.
They search that job which helps to high their standard of living. After that the small
business pay attention on expanding fuel and capital. They hire best and brightest employee
who enhance their company profit.
3. Large company Entrepreneurship- The large business enterprise has long process and
offer best quality products that attracts customers. There is a change in customer taste, adopt
latest equipments , face market hurdles etc. which helps to develop and grew the company in
an effective manner. The large business create new products which are sold to the new
customers in the new markets.
4. Social Entrepreneurship- Social entrepreneur helps to innovate social products which
enhance the growth and development of an organisation. The objective is to make the quality
products which don't harm the customers health.
Types of Entrepreneurship ventures
1. Survival Ventures- In this venture, the company may or may not be legally registered and
they have no premises, few assets and no business banking contacts. The small business
enterprise are manage their products to keep them in a stores. The company provide finance
to needed enterprise which helps to increase their reputation in the marketplace. The
company manages profits in highly competitive, cost-based and undifferentiated market.
2. Lifestyle ventures- This venture provides extra income that helps to maintain the business
profits by their managers. They reinvest their revenue to maintain or operate competitive
market. The venture usually based on single location and employee, which does not seek
complete growth. It is difficult for venture to work on economic operation.
3. Managed growth Ventures- The managed growth ventures helps to controls the income of
business on regular basis and also innovate new products and daily entry into new market,
study of full facilities, staff or employees and location. The business reinvest in the growth
and helps in development of ongoing business activities.
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4. Aggressive growth ventures- The aggressive growth main focus to maintain the growth of
company and develop products that increase the number of customers. The company's
manager has to satisfy the customers demands and wants of products. Their market are
totally based or focused on national or international and select candidate for public offering
or mergers.
P2. Differences and similarities between each type of ventures.
Entrepreneurial
Ventures
Survival
Ventures
Lifestyle
Ventures
Managed growth
Ventures
Aggressive
growth Ventures
Differences
The annual growth
rate is 5% in
survival and 10-
15% in managed
growth ventures.
The
entrepreneurial
orientation is low
in lifestyle and
high in managed
growth ventures.
The technology
investment are
moderate in
managed growth
and high in
aggressive growth
ventures.
The source of
finance in
aggressive growth
through banks and
self basis in
survival ventures.
Similarities
The liability of
smallness are
significant in
survival and
lifestyle ventures.
The source of
finance are self
based in lifestyle
and aggressive
growth ventures.
The employees
take their rewards
on salary basis in
lifestyle and
managed growth
ventures
The exit approach
are based on shut
down in survival
and lifestyle
ventures.
1. Private enterprises- Private business has to control and manage by the one or two persons,
corporation and partnership which have not high volume of sale. They are invest less
revenue in their business and make balance sheet which measures their total sales and profit.
(Delgado, Porter, and Stern, 2010.) The business are operated by entrepreneur who perform
all activities in effective manner and make innovative ideas for the development of products.
2. Public enterprises- Public company has to controls and managed by government and large
numbers of people. Entrepreneur has make new products that helps to provides growth and
develop the enterprise . They focus on research, not only generating government papers. The
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public enterprises focus to attracts number of customers and provide legal support which is
essential for the business.
3. Social Enterprises- Social enterprise is an important aspect of every business. It helps to
manages the external and internal environment and maintained peace in the workplace. An
entrepreneur helps to solve issues and problems which are related to the innovative products.
P3. Macro and micro affects on business economy
Macro and micro affects the business economy of small enterprise. The enterprise helps to
provide clear picture of macro environment and micro environment on the business. It is an
important aspect of employment, growth, development and profitability. The business factors helps
to identify the private and public sectors which affects the economy in an effective manner. It helps
to evaluate the current and future needs of the customers towards their products. An entrepreneur
has some techniques that helps to adopts the business methods. It helps to forecast the planning and
controlling of the products. The Small business enterprises plays a role for the lifting of recession
and economy. The small and medium sized firms are mutually beneficial and make symbiotic
relationship with the other country (Djankov, and et. al., 2010). The entrepreneur suits macro
economic for forecasting products demands, industrial trends, economic condition and performance
of business on a global, sub region and city basis. It helps to understand the customers needs and
demands for the future. The macro and micro economy are directly impact on their business and
investment. They can evaluate the behaviour of companies and customers in a specific market . The
company's consultants are highly skilled for forecasting the large market behaviour and make
appropriate and estimated economical conditions for the future.
 Local impact- The local businesses uses some of this new income to pay for goods or
services outside the region. The local economic studies to measured the direct and indirect
impacts on the business. The economy affect business interest rate, wage rate, rate of
inflation and profit prices. The importance of local economic multiplier effect ia a key part
of effective. The local economy operates the business including stocks or inventory, utilities,
equipment and employee salary etc.
 Regional impact-The company purchase goods and services from their outside region and
some more than others. The regional impact are geographical and economic grounds and
follow the same region. The business are highly impact by the competitors and threats. The
impact for the regions are totally depends on segmentation of market and customers. The
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businessmen reach the potential customers and provides products which are expected by the
consumer. They evaluating the geographical representation and demographic areas which
are necessary for them.
 National impact- The impact of economy on nation are affected their inflation, high prices
and profitability and productivity. The government should controls and manage every state
issues or problems and try to solve their social and other issues. The national income impact
on small business by increase in price rate and inflation in the state. There are many states
which are directly affected by their business and provide the basis for target targeted funding
in order to faster and develop consumer on the national economy. They analyse the
employee system, logical data,comparative analysis and scientific approaches.
 International impact- The international business means a country deals with other country
and exchange goods and services. Small business enterprise does not exchange the products
with the country and depends on foreign goods compete with local production. The
international trade increase competition and lower price which provides benefits to their
consumers by increase the purchasing power of the income and face more efficient foreign
firms. The business conduct their market in internationally and make challenging situations.
There are some export and import in the market which affect economy. The small business
should understand the political system of every country and apply them for the growth of the
company. The company can protect their shareholders and aware with their competitors. The
government can not regulate and controls the market on regular basis in an effective manner.
There is difficult to understand the different culture of the new market offers to the
customers.
P4 Small business importance and its growth of the society
Financial aspects is a teach which help with giving the response to the distinctive inquiries.
It can really be characterized the reaction which helps to analyse the products quality and quantity in
an effective and efficient. The company has to maintain their profitability and productivity that
provides the growth and development. The leadership manage the employees who are not follows
rules and regulations of the company. They need to settle on proper choice with the goal that they
can accomplish the achievement in the economy. The company's significance of is to maintain the
financial position of the business and conclude that they need to utilize the correct use of the assets
with the goal that they can satisfy the necessities and needs of the shoppers and additionally request
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of the items by doing the best possible and fitting supply of the stock. Alongside this economy helps
in dealing with the large scale economy by taking the guidance of the administrative bodies by
which they can evade the issues which incorporates the swelling and in addition joblessness. The
company needs to use the plans and strategies which helps to reduce the work burden to the
employees and they does their work in an effective manner. The significance of the financial aspects
is to manage the deficiency of crude materials. ( Hall, Daneke and Lenox, 2010.)Alongside this the
business need to convey suitable assets in general public. Alongside this they need to deal with the
economy by utilizing the standard of chance cost to do the best possible choice among the diverse
decisions.
Private company is assuming an essential part in the advancement or change in the nearby
economy the country over. As it helps in expanding the business rate with the goal that they can
accomplish the achievement in the focused market. The part of the independent company is
developing quickly. The rate of private company "start up" has developed and the rate for the
independent venture disappointments which has declined. Private venture and also new company
having the diverse commitments with the goal that they can achieve the accomplishment in the
market. In addition, an enterprise has to follows all rules and regulations which helps to maintain
their employees. And also in addition advancement to the group in which they need to built up the
business. Numerous private company helps to build new products and change the external and
internal environment that provides situation of the marketplace. At the time of selling the products
the company has to creates new customers which helps to enhance the profits. Start-up and other
companies need to utilize the financial improvement system with the goal that they can accomplish
the achievement and extend the development in the aggressive market. In the economy, private
venture ought to be more adaptable and dependably be imaginative that the goals has to achieve in
given time period and increase the motivation of an employee which helps to reach the
organisational objective. There are distinctive levels in the economy that is local, national and
worldwide level. Provincial level aides in turning the cash or finances in the neighbourhood
showcase by utilizing the proper abilities and information with the goal that they can enhance their
income. On the other hand, company needs to develop their income for growth and development of
an employees and also enhance the customers needs and wants. Alongside this at another hand, the
small business can expand their functions which helps to increase their branches over all the
country. It also helps to achieve the goals and objectives in an effective manner.
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PART 2
P5 Abilities and capabilities of successful entrepreneurs
It is important for any entrepreneur to be successful that they should possess some skills and
traits so that they can handle all risks and manage their business operations in an efficient manner.
All businessmen have different family background, geographical localities as well as educational
levels and one thing is always consistent that make them an entrepreneur more famous and popular
from others.
There are some qualities and attributes are as under: Risks taker: Entrepreneur is a person who take risk and deal with the issues and problems
that helps to solve the company's issues.( Karlan, and Valdivia, 2011.) The more they take
risk the more they can attain profits. From starting to end of any business there are so many
steps when risk is necessary element to be taken. Person who is afraid of taking risks can not
be able to manage and develop his business. Confidence: A person has a confidence which provides him to deals with difficult situation
in and effective manner. Stressful situations can be handled easily and work can be done
successfully if a person have plenty of confidence. It is a mental state that represents that
nothing is impossible and every operation can be managed appropriately. Passionate:The person who works with full of passion and achieve the task because it
anyone enjoys his work then it is easy for him to attain success. If a person does not like his
work then soon working conditions turn into difficult situations. It is the situation which can
not manage and controls the business activities and functions in an effective manner.
 Disciplined and hard working: A person who is manage and controls the work in discipline
manner and work hard to get the goals and objectives. If an entrepreneur works hard for
success of their success then they surely get success. There are some tools and techniques
which helps to needs the business values.
For example Mark Zuckerberg and Bill Gates can be taken as examples of a very
successful businessmen. The mark and gates are rich person of all over the country and also
achieved this much success. Zuckerberg is CEO of most famous social networking site named
Facebook. He has maintained his business in such a way that he is achieving great response from
world. On another hand Bill Gates is owner of Microsoft. They have achieved great success in their
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fields. There are certain skills and knowledge that helps to make an entrepreneur successful are as
under:
Vision: Zuckerberg never worked for money but he had vision of connecting people all over
the world. In order to achieve it, he took his work and Facebook to such a level where he wanted.
Continuous learner: Mark as well as Bill Gates are thinks towards their goals and
objectives that helps to achieve the target goal and satisfy the customers in the market. It helps them
in being successful. The mark and gates are liked to read motivational books. They were creative as
well.
Smart worker and daring: Marks and gates are those businessmen who work hard to
achieve their target goal and objectives and also make innovative products which liked by their
current customers and attracts new customers towards their goods and services. Entrepreneur should
modify their products and services according to changing needs of people. These qualities made
them what they are today.
These qualities and skills also should be followed by other entrepreneurs so that they can
achieve significant success.
Other matter of thinking is whether entrepreneurs are born with these characteristics or with
time they learn all these things. Different analysers have different views. Some explain that these
traits of a businessman are found in them from their birth from their parental genes but some
provide explanation for such enterprisers who have no such background of being an business person
but still they have possessed great success in their field. It helps to motivate their employees which
provides importance to the employees in an effective manner.
P6 Entrepreneur personality that motivate the employees and its mindset
It is an important factor of an individual which identify his/her character in an effective way.
Personality belongs to family, friends and relatives and colleagues that majorly affects the persons
personality. It also manage and controls the persons skills and knowledge. Every individual has a
different personality and that influence their motivation level and mind set. Every person should
have skills to manage risks and operate their functions to such extent so that they can achieve their
organisational goals.(Bosma, and Levie, 2010 ) Different conditions and situations of a person
force them to select any suitable field for their career. There are some factors that affects the
personality and impact on its mindset are as under:
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Family background: The employees personality are totally depends on their family
background and external and internal environment that affects the mind of a person then there are
chances that there must be entrepreneurial motivation in that person because he has come from such
background. But this can not corrects that all information and data and many businessmen who does
not study the management, and different situations and their interest towards business activities
support them to be entrepreneur. Some have support from their family and some are not supported
by their family to open a business and they can not invest money on their start up business.
Lifestyle: It depends on a person's lifestyle what is reflecting their mind set. Some people
believe in themselves and treat them like an asset. They have a plenty of confidence and
determination then they can handle every situation that is even very stressful. Some people are there
who learn from their mistaken and then make those mistakes their strength. They learn from past
experiences. Lifestyle is a motivational tool for any person. At same time if any person is afraid of
taking risks and has no confidence then he can not be an entrepreneur. A person always get
motivated with his way of living. This is part of personality of any person that have great impact on
entrepreneurial mind set of any person.
Cultural differences: Every person comes from different regions and they have different
cultures. They have many geographical challenges as well. It effects situation of metal state of any
person to ascertain that he has entrepreneurial characteristics or not. This is considered as a most
important idea of motivating entrepreneurship. Separate cultures have separate motivational factors
for a person regarding choosing career objective for any person that whether to opt for business
environment or any other sector.
Personal motivation: A person can be self motivated and it helps to learn new things
through online, websites, internet and social media. An individual should be self motivated and
learn new skills and knowledge with their co-workers in different situations he can handle himself
as well support his employees also. He should possess leadership traits. The impact of his
personality is affects the persons abilities and capabilities that manages the business.
Personality is a tool that helps a person in realising whether he is able to be an entrepreneur
or not. Some enterprisers are already born with genes of entrepreneurs but some of them also learn
all qualities with time and then prove themselves as a successful businessman. There are always
some changes and diversities with every person and their family backgrounds as well characteristics
and cultural differences.
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