Entrepreneurship and Small Business Management: A Comprehensive Analysis

This report delves into the multifaceted world of entrepreneurship and small business management, exploring various types of entrepreneurial ventures, their impact on the economy, and the characteristics of successful entrepreneurs. It examines the role of family upbringing, lifestyle, and cultural differences in shaping entrepreneurial personalities. The report also analyzes the link between entrepreneurial characteristics and personal background, highlighting the factors that can hinder or foster entrepreneurship. Through a comprehensive analysis of relevant data and statistics, this report provides valuable insights into the dynamics of entrepreneurship and its significance in the modern business landscape.

Entrepreneurship and Small Business Management
1

Contents
Introduction......................................................................................................................4
Part 1.................................................................................................................................5
P1 Examining different types of entrepreneurial ventures and explaining how
they relate to the typology of entrepreneurship.......................................................5
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and private sector...............6
D1 Develop your response to all aspects of task 1 by critically examining the
scope, development, and growth of entrepreneurship ventures........................7
P2 Explore the similarities and differences between each....................................8
LO2..................................................................................................................................10
P3 Present, interpret and assess relevant data and statistic to illustrate the
impact micro and small business have on the economy......................................10
M2 Develop your reasons to p3 and p4 by evaluating the differences that
small, medium and large business makes to the economy, applying relevant
data and statistics...................................................................................................12
D2 Develop your response to all aspects of task 1 critically examining how
small businesses have an impact on different levels of the economy in a local,
regional, national and international context........................................................13
P4 Explain the importance that small businesses and business start-ups on the
growth of the social economy..................................................................................14
Part 2...............................................................................................................................15
P5: Consider examples of successful entrepreneurs and determine the
character traits and skills they possess. Similarly, you could explore whether
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entrepreneurs are born or made and whether entrepreneurship skills can be
learned over time........................................................................................................15
M3: Explore and examine different lines of argument relating to
entrepreneurial characteristics.............................................................................16
D3: Develop your response to all aspects of task 2 by analyzing the
characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples.................................................17
P6: Consider how personality is shaped by family upbringing, lifestyle, cultural
differences and personal motivation and drivers amongst other factors...........18
M4: To achieve M4 you are required to develop your response to P7 by
analyzing the link between entrepreneurial characteristics and the influences
of personal background and experience to specific successful entrepreneurs.
..................................................................................................................................19
P7: Examine how a person’s background and past experiences can hinder or
foster entrepreneurship. Factors to consider may include level and type of
education, national culture, economic circumstances and character traits. The
risks and rewards of starting a business should also be considered.................20
D4: Evaluating how background and experiences influence entrepreneurs,
both positively and negatively, by comparing and contrasting examples.......21
Conclusion.....................................................................................................................22
References..................................................................................................................23
3

Introduction
This unit is about the entrepreneurship and small business management, which
includes the types of entrepreneurs, differentiation between the entrepreneurs
according to their scope. It includes the differences between the types of ventures:
private, public and socio enterprise. Objectives, structure, and size of the public and
private are discussed. Scope, growth, and development of entrepreneurship are
discussed. Effect of macro and micro-businesses on the economy and importance of
small business and business starts up growth is on the social economy. The difference
between small, medium and large business make to the economy. Impact of different
levels of the economy is in a local, regional, national and international on the small
business. Characteristics and skills of the entrepreneur and have to learn time to time
are discussed. Life of the entrepreneur is discussed, characteristics of the
entrepreneurial. Characteristics, skills and motivational drivers of the successful
entrepreneurs are discussed. How the lifestyle and culture of an entrepreneur can take
the business to the top is discussed.
4

Part 1
P1 Examining different types of entrepreneurial ventures and explaining how they
relate to the typology of entrepreneurship.
Entrepreneurship is the way to launch and start a new business and run it. An
entrepreneur is a person who has an idea and to create the product which people will
buy.
Various types of entrepreneurship:
Basis Public Private Social
Description These companies are
formed through few
numbers of members or
family business model.
These public
organizations make the
high rate of marketing
strategies so that
number of employees
can be increased and
workflow can be
managed.
They have a certain life
cycle, their product and
services change
according to trend and
environment, as these
businesses are
subjected to
competition. They
innovate new methods
and strategies so that
risk can be managed
and profit margin can be
increased.
The aim of this business is
to develop the best
products and services for
the progress and
betterment of the people.
This business focuses to
produce and implement
products that would lead
effective and efficiency of
the society (Borissenko
and Boschma, 2016).
Topology The topology helps the
public entrepreneurs to
The topology helps the
private organization to
The topology helps in
maintaining a continuous
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hire new employees and
filling the organization at
the right place.
minimize the risk and
earn huge amount of
profit. It also analyses
the rate of interest and
innovating more things.
growth in the organization.
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and private sector.
Private sectors are owned by individuals, not by the government, unlike the public
sector. These sectors businesses are the part of the economy and the business to earn
the profit.
Intrapreneur in the public sector, these industries produces the products such as
masking tape, waterproof sandpaper. These corporations sell their shares in the stock
market.
Intrapreneur in the corporate sector, such as Gore-Tex fabric which is the multinational
company which is specialized in producing the fabrics which are copied from
fluoropolymers. Gore gives 10% work day to develop new ideas to their employees.
These companies do not directly deal with the clients of the company. The goal of these
intrapreneurs is to innovate and produce the goods and services which give profit to
both the company and the target market.
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D1 Develop your response to all aspects of task 1 by critically examining the
scope, development, and growth of entrepreneurship ventures.
Scope The scope for the entrepreneurship in the developing country as their
employment rate is 5. The employment and unemployment is surveyed,
estimated rate of unemployment was 5%. So it is beneficial for the
entrepreneur to promote the business in such countries. Setting too
much scope makes the organization earn losses and loss of market
share.
Development This describes the economic development, which focuses on the using
the best activities. The development organizations are organized not for
profit corporations. The development of the organization does not move
ahead as more losses can be experienced.
Growth All companies undergo the period of growth. This period is unstable and
can be risky. Growth helps firms to establish and create new options to
grow. Firms come across with many hurdles in the starting. It helps in
increasing the liquidity and profitability of the firm (Volery, 2015).
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P2 Explore the similarities and differences between each.
Types of
entrepreneurs
The attribute of the
venture
Roles Goals
Business
entrepreneurship
To generate the
profit and revenue is
the main aim of this
business.
The role of this
enterprise is to
generate revenue and
profit and has a
competitive nature.
This enterprise
increases the quality of
product and service to
win the customer's
segment.
As discussed before
the main aim of this
venture to maximize
profit and revenue.
Because of this the
company has
become the leading
company in the
respective industry
and achieving
maximum market
share.
Social
entrepreneurship
this type of business
is oriented in the
betterment of the
society,
environmental and
the people
The role of this social
entrepreneurship is to
produce the product
and service for the
betterment of the
society which includes:
people, society, and
environment.
The production of
the effective
products and
services which
would improve and
influence the
conditions of the
environment,
people, and the
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whole society.
Macro
entrepreneurship
These ventures are
managed by the
founder and the
owner of
businesses. To
bring the change in
the industry and to
establish more
market shares and
expand revenues
and to establish
themselves as the
leaders are their
main aim.
These entrepreneurs
play the role of a
captain who
understands the better
about the weakness
and strength of the
organization. By
strategizing the
operational and market
strategies to become
the successful
industry.
A motive of this
industry is to
acquire the
maximum market
share and to
become the
successful leaders.
Micro-
entrepreneurship
These are the small-
scale industries,
with the minimum
investments. The
number of
employees in these
industries is in the
range of 5-10, and
the annual revenue
would be in the
range of £ 50,000-
£100,000.
Workplace for the
employees are small
but these industries
provide the efficient
ground to the
employees to achieve
the industry knowledge
To generate
maximum profit
within the industries
(Meyers, 2014).
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LO2
P3 Present, interpret and assess relevant data and statistic to illustrate the
impact micro and small business have on the economy.
The small and micro business is increasing and developing fastly and also creating the
jobs for the local people. Small businesses are described as the backbone of the
economy of UK. Business brings the new ideas which challenge the status of the
competitors and innovation helps the small business to broom fastly. There are primarily
three ways that micro and small business can contribute to the nation are encouraged
to create new job opportunities, innovation, and financial independence. These small
businesses have both impact on the society- negative and positive on the economic rate
of the region. As increasing in the GDP the market share is getting smooth in a very
effective way. Small and microenterprise help the economy to grow fast because of the
financial climate of the place. London has the minimum number of small and micro
business which is responsible for increasing the poverty rate. The government of UK is
organizing the number of campaigns and activities for increasing the start-ups business
so that the rate of poverty in the city decreases. The economy of the country depends
on the small business, if the business fails then the overall budget of the economy and
of in the international market gets affected.
Turnover, gross value-added and gross fixed capital formation.
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(Figure: 1)
(Source: Destatis, 2018)
12

M2 Develop your reasons to p3 and p4 by evaluating the differences that small,
medium and large business makes to the economy, applying relevant data and
statistics.
Every industry focuses on something to increase the rate of the economy. Small and
micro business focus on the generating the job opportunities for the local people as well
as for the people of those place who don't have the small business. Small and medium
industry focuses on increasing the rate of the economy. The growth of the small and
medium business is increasing because of the low rate of the unemployment. Large
industries are not hiring the fresher's for their company, due to this reason the UK has
become the 2nd ranked nation for generating employment for the freshers by
establishing the small business enterprise. This helps the UK in increasing their growth
and the development and the economy of the nation by proving the employment.
(Figure: 2)
(Source: Business statistics, 2016)
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D2 Develop your response to all aspects of task 1 critically examining how small
businesses have an impact on different levels of the economy in a local, regional,
national and international context.
The positive and the negative impact of small business on local, regional, national and
international are as follows:
Area Positive Negative
Local Provide job opportunity.
Changing economic climate is
easily adapted by the local people.
Lack of new technology
Revenue decreases
Regional Increases the level of growth
Improves the living standards of
the people
Limitations of the budget
Population challenges
National It reduces the rate of poverty
Employment relations
Talent gaps come
Conflict can be arise
International Increases the job opportunity for all
over the world
Increase in the imports and exports
of the produces
Affects the financial budget of the
nation and international
Affects the local culture (Crain,
and Crain, 2014)
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P4 Explain the importance that small businesses and business start-ups on the
growth of the social economy.
Small business and start-ups may not be able to produce that of money for the
economy as the large business can but the small business can contribute towards the
large rates for the economy.
Importance of the small business on the growth of the social economy:
1. Turnover
This business increases the turnover of the economy fastly by starting up many small
businesses.
2. Employment
The small business provides job opportunity for the local people. The economic rate can
stimulate easily by proving the employment opportunities to the people who are not
employable. These businesses provide employment for the regions which don’t have
the small business and people come to their industry for the employment.
3. Growth
The small business is responsible for the growth of the economy. The innovation of new
products is the large part of the growth as it keeps the market fresh because of new
products and the capturing on the market. Small and micro business has played the
main role in increasing the growth of the UK (Sundararajan, 2014).
4. Industry
In the UK the largest industries are of manufacturing, retail, and f the repair of motor
vehicles, and small business is the life of these economic activities. 46 % percent of the
revenue for small and micro business comes from one of these sectors, and 3 out of 20
small and micro business falls into these categories. Small business are the main part
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of these industries in the UK, it has proof that these small businesses are how much
essential for the country's economy.
Part 2
P5: Consider examples of successful entrepreneurs and determine the character
traits and skills they possess. Similarly, you could explore whether entrepreneurs
are born or made and whether entrepreneurship skills can be learned over time.
An entrepreneur is a creator of the new idea and gets it implemented. A successful
entrepreneur is an individual who has the ability to keep working harder and is
determinant no matter how many refusals are received in the way. These individuals
are very focused and open-minded and full of confidence to achieve whatever they want
(Sarwoko, et. al., 2013). They are the creative individuals who can predict the
opportunities and gather information and resources and take appropriate decisions and
steps to ensure the success. The entrepreneurial skills are the important determinant of
the success of the entrepreneurs. Any entrepreneur can be successful if these qualities
are there in him. Characteristics of the successful entrepreneur are to take initiative and
make use of the resources to their best. Main characteristics of a successful
entrepreneur are aptitude, vision, risk tolerance, confidence, creativity, perseverance,
initiative, integrity, and passion.
For an entrepreneur to become successful he should always be ready to take moderate
risks and have long-term involvement in the projects and not give up on the failures. A
successful entrepreneur always predicts the potential business opportunities much
quicker than other people. They are not afraid to take risks and make decisions and
always work harder, also are problem-solver. A successful entrepreneur always has a
solution to the problems. The entrepreneurship involves organizing, managing and
assuming the risks to start the enterprise. Women are one of the most fasting growing
groups of the entrepreneurs. Many people start a business to earn profit but some are
motivated by different goals such as helping others and form charitable organizations
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(Mukherjee, 2016). The aptitude that includes being logical, intellectual, artistic, and
perceptive together makes a successful entrepreneur (Geri, 2013). Entrepreneurs love
what they do and this makes them more passionate about their work.
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M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics.
The different characteristics of entrepreneurs involve individual motives and personality
characteristics (Kozubikova, et. al., 2015). Entrepreneurs must be capable of having
features of various personalities and distinctive qualities. Other qualities are attitude,
confidence, responsible, determinant, leader, dispute investigator, marketing specialist,
agreeableness, openness and many more. Entrepreneurs choose themselves the area
that has consistency for business operations and to get success in their business. They
manage their business with their specific and strong qualities. Independence, creativity,
risk-taking, and openness decreases the probability of becoming an employee and
increases the probability of becoming an entrepreneur. The person with a higher
tolerance of risk-taking and risk bearing affects the performance of the business.
Sometimes it becomes very important to take decisions which are full of risks by the
entrepreneurs to achieve success. The relationship between the firm's rate of growth
and entrepreneur's orientation is very positive. It is accepted in business world that
women have smaller firms as compared to men in the same field as they are more
focused on less profitable areas of the business and it is also stated that the women
employers are more rejected by the banks for the loans as compared to the men
entrepreneurs (Abdulwahab and Al-Damen, 2015). The personality characteristics like
impulsivity, less self-control reflects in the behavior which affects the characteristics of
the entrepreneurs.
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D3: Develop your response to all aspects of task 2 by analyzing the characteristic
traits, skills and motivational drivers of successful entrepreneurs, supported by
specific examples.
Entrepreneurship is directly related to the small and big scale businesses. Numerous
investigations and studies show that the entrepreneurial traits, skills, and motivational
drivers for success are inborn as well as can be learned through the business schools.
An entrepreneur is a person who puts new ideas into working and manages them
accordingly. Understanding all the factors that are related to the business development
is very helpful for them to gain success in their respective business. However, the
talented people should be encouraged to become entrepreneurs as they are the people
who have the talent of a successful business in this competitive world full of new and
varied technologies. The entrepreneurs possess the quality of risk-taking, creative,
innovative, and ready for any situation in the business and also always motivate their
people to work harder and do their tasks on time. Therefore, the successful
entrepreneurs are not an only successful businessman but they are great motivators.
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P6: Consider how personality is shaped by family upbringing, lifestyle, cultural
differences and personal motivation and drivers amongst other factors.
The entrepreneur personality reflects entrepreneurial motivation and mindset. When
the entrepreneurship is taught, the main emphasis is put on the personal reflection and
skills. The development of entrepreneurship skills is entirely consistent with information
from across academic specialties. Entrepreneur mindset is a valuable skill that can be
applied in many contexts. The entrepreneur mindset can be defined as attitude, skills,
and behavior every student should learn to succeed professionally and academically.
The features like adaptability, flexibility, critical thinking, etc. should be learned by the
students in order to be a successful entrepreneur. For the students, the skills are
applied equally whether be for-profit or non-profit organizations as profit is not the main
motivation for an entrepreneur and main motivator for an entrepreneur is the realization
of the data. The entrepreneurism is practiced to be learned. The literature on
personality has developed substantially and is very extensive. The personality of the
person reflects his mindset and it is shaped by family upbringing, lifestyle, cultural
differences and personal motivation. The features of entrepreneur are as follows:
Agreeableness. A person should be cooperative and also should be self-centered.
Emotional stability. The person should not get easily upset and should be calm in the
situations. Emotional stability defines the level of confidence a person has and it is very
important for a person to be positive and have a stress tolerance.
Openness. There should be a quality of openness to experience for a successful
entrepreneur. The person should be characterized with exploring ideas, imaginative
and innovative.
Able to develop social network: Social networks are very important these days and it
is as important to be sociable as it is to be energetic. A person who is cooperative and
social seeks a role of leadership within.
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M4: To achieve M4 you are required to develop your response to P7 by analyzing
the link between entrepreneurial characteristics and the influences of personal
background and experience to specific successful entrepreneurs.
The entrepreneurial characteristics are influenced by their backgrounds. There is a
strong link between the entrepreneurial characteristics and the influence of personal
backgrounds that is seen in the business (Khuong and An, 2016). The personality of
the entrepreneur as discussed above is an important factor for a successful
entrepreneur. This is the characteristics which are different for each entrepreneur. As
stated, the person can become an entrepreneur if has different characteristics from
normal people and the successful entrepreneur is a person who is a different form,
other entrepreneurs. Thus the characteristics that they possess differ and help them
become a successful entrepreneur in the business world. The entrepreneurial
characteristics can be inborn or they can be possessed and learned. The
entrepreneurial characteristics that are inborn help the entrepreneurs to run their
business success as they can are capable of managing the business in difficult
situations also. People who learn to be an entrepreneur also can be successful
entrepreneurs depending on their skills and level of intelligence. They should not
develop the negative thoughts or attitudes as it can be harmful to them in this field, in
fact, they should be cool-minded and with open thoughts.
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P7: Examine how a person’s background and past experiences can hinder or
foster entrepreneurship. Factors to consider may include level and type of
education, national culture, economic circumstances and character traits. The
risks and rewards of starting a business should also be considered.
The importance of family background and past experiences in an entrepreneur's life
plays a very important role in determining the place they are today. There have been
some successful entrepreneurs who did not belong to business families but have done
great in this field through their life experiences and skills they do possess. There are
many successful entrepreneurs who through experience and needs came in this field
and have done wonderfully since then. The entrepreneur's background as a success
factor is identified as follows:
Personality. An entrepreneur is considered different from the rest of the population and
a successful entrepreneur has a different personality from other entrepreneurs. The
entrepreneurs have to consider the financial aspects also along with personality to
succeed as an entrepreneur.
Biographical background. It stresses the following aspects of gender, education, age,
motivation, skills, and experience. Gender has an important role as a background as an
entrepreneur. First, they have had fewer opportunities as an entrepreneur because
they have more difficulty in gathering information but nowadays they are doing great in
this field too just like other fields.
Firm type. This also is very important as the decision of what business to start and
how to start based on the resources is very important for every entrepreneur because it
helps them to make the way for success. In this dynamic market of the internet, it has
become easy to choose the firm so it is very important for the entrepreneurs to decide
what business to start and how to start.
23

D4: Evaluating how background and experiences influence entrepreneurs, both
positively and negatively, by comparing and contrasting examples.
Positive
The entrepreneur thinks in a positive way so that the scope can be high. All the factors
are being analyzed so that the objective can be achieved and resources can be used for
effective use. The positive experience of the entrepreneurs helps in working effectively
and analyses each of the factors deeply and reaching to the results. Positive thoughts
also motivate the employees in working hard and develop their personality.
Negative
The entrepreneur thinks in a negative way which badly affects the business and its
factors. It demotivates the employees and effects the business in negative scope. It
results in taking wrongly decisions and experience loss in a revert to profit. Wrong
decisions result in increasing the turnover of the employees and walking on the wrong
path.
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Conclusion
This report tells about various entrepreneurs and their relation with each other. The
scope, objective etc. are being evaluated and being evaluated so that a fair conclusion
can be drawn. From this report, it is being evaluated about the growth and development
of various types of entrepreneurs. The skills and talent of the employees are being
evaluated in order to make the work and activities done in proper manner. In order to
take right direction in the right way various factors are being analyzed and then the
decision is being taken. It is also being analyzed that the factors which affect the growth
and development of the economy. The targets must be made clear so that the
entrepreneurs take the right decision and work accordingly. Positive and negative
effects of the decisions are also being analyzed from the report. Similarities and
differences between small, medium and large organization are also being measured in
this report.
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