Entrepreneurship and Small Business Management: A Comprehensive Analysis

Entrepreneurship and Small Business Management

Table of Contents
Introduction......................................................................................................................................3
Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship. [P1].................................................................................................................4
Explore the similarities and differences between entrepreneurial ventures. [P2]............................5
Interpret and assess relevant data and statistics to illustrate how micro and small business impact
on the economy [P3]........................................................................................................................7
Explain the importance of small businesses and business starts-ups to the growth of social
economy. [P4]..................................................................................................................................9
Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers. [P5]...............................................................................................10
Assess how aspects of the entrepreneurial aspects personality reflect entrepreneurial motivation
and mindset. [P6]...........................................................................................................................12
Examine how background and experience can hinder or foster entrepreneurship. [P7]...............13
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16

Introduction
Risk taking behaviour with planning and strategic thinking, which results in the formation of
new venture by an organization or by individual, is termed as Entrepreneurship. They are
generally the founders of the business enterprise that can be either a local retail store or a self-
employed business. In this kind of business, the individual can change the way of working like
changes in the organizational structure or introducing a new product. When an individual invest
in a business as an entrepreneur then he/she is taking a very high risk which may be either
successful or will be disastrous also. Entrepreneur should have high energy level with self-
confidence and have the passion to succeed (Wiklund and Shepherd, 2016).
Generally, all entrepreneurs start their business with a small enterprise that could have one of
fever employees and has been independently operated by the owner. Small business enterprise
can be of many types like starting a new venture, taking the franchise or buying an existing
venture. Here in this report there will be a discussion of a UK based tour and travel company
Audley Travel a small business enterprise who wants to introduce a new branch or business in
the UK.

LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial.
Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. [P1]
The different types of Entrepreneurial ventures which may fits best for the entrepreneur that may
relate to the typology are as follows:
 Lifestyle Venture: Lifestyle ventures are generally small companies, which run by the
owner with full autonomy and independence. A household can also run this type of firm.
In this type of firm there is flexibility in the work and that makes the individual to work
hard with innovative thinking, hobbies and personal interests that can makes him desire
to earn a good amount of profit. Its growth process is generally slow and this kind of
firms can expand its capital through the process of debt financing. In this kind of firm
generally the entrepreneurial typology is Risk avoiding with profit seeking where there is
a low level of financial risk but there is a high chance to earn more (Storey, 2016).
 Smaller Profit Venture: Smaller profit ventures are generally small company with low
amount of risk and profit that is not concentrated on taking risk and growing the company
in a large amount. This kind of firms does not want to earn more. Making good profit and
millions of dollars is not important. It is generally a low risk company with a plan to live
a decent life. The basic typology of this kind of venture is Risk avoiding with activity
seeking that means there is a low level of financial risk and also with a low level of
profit.
 High Growth Venture: High growth firms are generally a small business entity whose
goal is to earn maximum profit and can earn maximum growth. This kind of firm is
concentrated on pushing its work and focuses on growing on a large amount. They
generally concentrate more on innovation and are much more attractive to the
stakeholders or investors other than lifestyle companies. It can generate good amount of
revenue if settled in a business environment. High growth companies not only make
growth for them but also focus on creating a new products or services so that overall