Entrepreneurship and Small Business Management: A Comprehensive Analysis

Entrepreneurship and small business management
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Contents
Introduction................................................................................................................................4
LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial............................................................................................................................5
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.................................................................................................5
P2 Explore the similarities and differences between entrepreneurial ventures......................6
M1 Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and corporate sector................................7
D1: Critically examine the scope, development and growth of entrepreneurial ventures.....8
LO2 Assess the impact of small business on the economy........................................................9
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
business impact on the economy............................................................................................9
P4 Explain the importance the importance that small businesses and business start-ups
have on the growth of social economy.................................................................................11
M2: Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics.....................................................................................12
D2: Critically examine how small businesses have an impact on different levels of the
economy (local, regional and national) and an international context..................................13
LO3 Determine and assess the key aspects of an entrepreneurial mind-set............................14
P5). Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers................................................................14
P6). Assess how aspects of the entrepreneurial aspects personality reflect entrepreneurial
motivation and mindset........................................................................................................16
M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics.......................................................................................................................17
D3). Analyze the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples....................................................................18
LO4 Apply Human Resource Management practices in a work-related context.....................19
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P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...................................................................................................................19
M4: Analyse the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs........................................21
D4: Critically evaluate how background and experience influence entrepreneurs, both
positively and negatively, by comparing and contrasting examples....................................22
Conclusion................................................................................................................................23
References................................................................................................................................24
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Introduction
The business management can be defined as the study of various businesses that are operating
in the industry in order to sustain and earn long-term profits. In the context of management,
there are small as well as large businesses that are currently operating in the industry of UK.
It has been identified that the contribution of small businesses in the UK industry is essential
and of utmost significance. The aim of this management report is to critically define and
analyse the value that is being added by various companies in the business environment
keeping in mind the industry of UK. The emphasis of this assignment would be implied on
the various styles of entrepreneurship and what is the impact of the same in the development
of the companies. Apart from this, the report is also inclusive of the various statistics and
relevant data such that the reader might get essential insights on the start-ups and the role that
is being played by them in the growth of the social economy.
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LO1 Explore and illustrate the range of venture types that might be
considered entrepreneurial.
P1 Examine different types of entrepreneurial ventures and explain how they relate to
the typology of entrepreneurship.
It has been identified that in the economy of UK there are various kinds of business which
have been set up by the entrepreneurs keeping in mind their objectives and expectations from
the business. It should be noted that these expectations of the business managers can be
effectively identified as the typology of entrepreneurship. The small businesses that are
currently operating in the industry of UK made up to around 99% of the total firms which
explains that the contribution of such forms in the development of the economy is significant
(Kuratko, 2015). On the basis of typology, the businesses can be bifurcated as follows:
 Lifestyle firms: These are the companies that are operating at small levels and
provide a huge amount of independence to the owners. These companies generally
operate out of the household and hence it also provides flexibility. These companies
make it possible for the owners to align their hobbies such that organisational goals
can be achieved. In this kind of company, the typology that is seen is the quasi-
entrepreneur in which the individuals lack the development vision and mission in the
long term.
 Smaller profit forms: Smaller profit forms are the companies that have o vision of
growing large and the main aim of the business is to provide the owner with a decent
amount of lifestyle and generate profits such that the operations expenses of the
company are met. The typology of owners that is seen is such businesses are the
craftsmen and opportunists that have the potential to be creative and harness the
opportunities such that long-term sustainability of the business can be ensured
(Kuratko, 2015).
 High growth ventures: high growth ventures can be defined as the companies that
have the vision and mission of earning huge profits and they also aim at the long-term
sustainability of the company. The kind of typology that is seen in such firms is the
Inventors. Inventors are the entrepreneurs that have a long vision of achievement of
the goals of the company and they are also bent on building new things such that the
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market can be disrupted with creativity. Examples of companies that have owners
with such typology are Apple, Pizza Hut, Tesla etc. (Parker, 2018).
P2 Explore the similarities and differences between entrepreneurial ventures.
The differences and similarities between the businesses that are operating in the industry of
UK have been stated below as follows:
Similarities Differences
Lifestyle firms Lifestyle forms are the
companies that are similar
to smaller profit firms in a
large context as in both the
companies there is a small
amount of liability with the
owner and also the amount
of independence is high.
This company is different in
various senses such as long-
term growth and vision
lacks here. Apart from this,
in such companies, the
profits made are small.
Smaller profit firms These companies can be
stated as the amalgamation
of both the companies. It
should be noted that such
companies lack long-term
growth while on the other
hand, in such companies
there is harnessing of
opportunities which is
similar to a high growth
venture.
The major difference in the
small company with a
lifestyle firm and a high
growth venture is that the
organisational structure is
small and also the small
company cannot deal in
public exchanges like a
high-profit venture (Werven
et. al., 2015).
High Growth Ventures It has been identified that
the high growth venture is
majorly different from a
small company and the only
similarity between these
companies is that; a high
growth venture can be
privately owned. A high
growth venture and a small
venture can both create
disruption in the industry
but they a small company
just lacks in the scope of
operations.
The major difference
between a high growth
ventures is that such
companies have a long-term
vision and mission and
these companies also have a
large organisational
structure and they also
enjoy a huge amount of
profits (Rawhouser et. al.,
2017).
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