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Entrepreneurship and Small Business Management: A Comprehensive Analysis

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This report delves into the intricacies 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 background and experience in fostering or hindering growth, using real-world examples to illustrate key concepts. The report provides a comprehensive understanding of the dynamics of entrepreneurship and its significance in the UK economy.

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ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

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TABLE OF CONTENTS
Introduction................................................................................................................................ 1
LO1............................................................................................................................................ 2
P1 examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship................................................................................................. 2
P2 Explore the similarities and differences between entrepreneurial ventures......................3
M1, D1 Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sector..........................4
LO2............................................................................................................................................ 6
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy........................................................................................6
P4 Explain the importance of small businesses and business starts-ups to the growth of
social economy.......................................................................................................................6
M2, D2 Evaluate the differences small, medium and large businesses make to the
economy, applying relevant data and statistics......................................................................7
LO3............................................................................................................................................ 9
P5 Determine the characteristic traits and skills of successful entrepreneurs that
differentiate them from other business managers..................................................................9
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..........................................................................................................................11
M3, D3 Explore and examine different lines of argument relating to entrepreneurial
characteristics....................................................................................................................... 12
LO4.......................................................................................................................................... 14
P7 Examine, using relevant examples, how background and experience can hinder or foster
growth process..................................................................................................................... 14
M4, D4 Analyse the link between entrepreneurial characteristics and the influence of
personal background and experience to specific successful entrepreneurs.........................15
Conclusion................................................................................................................................17

References................................................................................................................................ 18
LIST OF FIGURES
Figure 1: Types of entrepreneur................................................................................................. 3
Figure 2: Steve Jobs...................................................................................................................9
Figure 3: J.K. Rowling............................................................................................................. 10
Figure 4: Self motivation theory..............................................................................................12
Figure 5: Bill Gates.................................................................................................................. 15

LIST OF TABLES
Table 1: Comparison of similarities and differences.................................................................3
Table 2: differences and similarities.......................................................................................... 4
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Introduction
This report will discuss about the entrepreneurship development in small and medium
business enterprises. The various topics such as the different types of entrepreneurial venture
and size of organization will be covered. The scope, development and growth of
entrepreneurial venture will be discussed. Further, impact of small and micro enterprises on
the economy will be discussed. The small business poses a major impact which is different
for different regions of the economy. The next section will discuss about the traits and
characteristics of entrepreneur and difference from other organizations. The last section will
throw light on how background and experience will hinder or foster growth process. The
importance of entrepreneurship in small business for the development of UK economy will
be discussed. The personal background and experience of entrepreneur influences the
development of organization.
1

LO1
P1 examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurship is an innovative approach where a person organizes, manages and sets up
an entire business also considering the various other aspects of organization for growth and
diversification. Entrepreneurial is a person who gets the idea of starting a new venture and
is ready to take all the efforts and bear loss if any. Enterprise refers to a business or firm that
is responsible for handling a project or activity (Coviello, 2018).
Different types of entrepreneurial ventures
Small business entrepreneurial:
The small business with limited requirement and low profits are who try to cover day to day
costs and requires less investment. For example, SEIS is a financial company at small level.
Others include small grocery stores and retail shops.
Scalable startup entrepreneurial:
These are entrepreneurs who have a vision of enhancing the growth of organization by
continuously modifying and scaling performance. For example, Go lance is a freelancer
organization in UK that aims at providing freelancing jobs to customers.
Large company entrepreneurial:
These are large entrepreneurs that offer innovation in product and services to attract large
customer group. They try to adopt technological advanced methods so that work can be done
faster and easier. For example, Peter Jones with a net worth of 36 million dollar in UK they
try to offer new products so as to attract more customers (Vogel, 2017).
Social entrepreneurial:
These are entrepreneurs who work for providing social benefits to the customers and not
merely earning profits. These activities are concerned with the satisfaction of social needs of
customers. For example, Health and social care finalist established in 2004 that aims at
providing support to disabled and old aged people (Dees, 2017).
2

Figure 1: Types of entrepreneur
(Source: businessjargons.com, 2018)
P2 Explore the similarities and differences between entrepreneurial ventures
There are various types of organization with different motives and scope. They have some
similarities and differences related that help in improving venture functioning.
Table 1: Comparison of similarities and differences
Entrepreneurial
ventures
Quality of specific
venture
Role Aim or purpose
Business
entrepreneurship
These are entrepreneurs
who work to earn
higher profits. They
aim at maximizing
profits.
The main role of these
firms is to perform
innovative ideas and
gain competitive
advantage.
The main purpose of
these organization sis
to capture large market
and become the market
leader.
Social entrepreneurship These are entrepreneurs
who work for the social
development of the
economy. They aim at
providing social
services for welfare
and growth (Dees,
2017).
The role of this
organization sis to
work for the well being
of three main elements
society, people and
environment.
The main purpose it to
provide a better living
condition to the people
and make society a
better place to be in.
Micro entrepreneurship These are small
entrepreneurs who do
The main aim is to
develop people for
The firm aims at
earning more profits so
3

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not require much
investment and earn
small profits (Villa,
2014).
providing good
experience also
providing technical
information and
developing individual.
that there can be both
organizational and
country’s growth.
Macro
entrepreneurship
These are large
organizations that aim
at increasing market
share with innovative
techniques and hence
earn huge profits. Best
way group is a suitable
example.
There is a division of
work and function in
these organizations and
there is a total
observation on all
activities and
performances.
The main purpose of
these organizations is
to be the market leader
and lead to an
increased market
satisfaction.
M1, D1 Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sector.
Table 2: differences and similarities
Differences or
similarities basis
Survival Lifestyle Managed growth Aggressive growth
Business sectors Micro
organizations
Small scale
business
SMEs (Small and
medium sized
enterprises)
Large scale business
Nature or meaning Micro
organizations are
small business
ventures that invest
less in the
beginning and
need to take risk in
order to increase
the scope.
These are bigger
organizations than
micro and adapt
proper
management
system in order to
function properly
and achieve
competitive
advantage and
growth (Storey,
These are small and
medium enterprises
that tries to capture
market share with
innovative ideas and
marketing strategies
that are efficient.
These are highly
technology adaptive
that recruit skilled
professional to
achieve
globalization.
4

2016).
Scope of the business The main aim of
these organizations
is to survive and
earn daily. Hence
these organizations
have les scope as
compared to
others.
These
organizations try to
capture local
market by applying
basic management
skills and
techniques.
These organizations
try to expand business
functions and provide
more employee
benefits by adding
more to their wealth.
These are highly
built organizations
that aim at bringing
innovative ideas so
as to increase
globalization.
Growth Growth is
calculated
depending upon
the increase in
revenue.
Organizations
growth is measured
on weekly basis.
Proper comparison is
made with
calculations of profits
of previous years.
They operate at a
higher level and
aims at achieving
higher profits in a
small span of time.
Reward Income on weekly
basis
Salary is paid to
professionals
Incentives in the form
of shares or bonus
Long term capital
gain.
For example Salons, bakery or
consultancy
services
Transport for
London
River Island NHS
5

LO2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy.
Micro business is organizations that do not employ more than 9 employees and 5.3 million
micro businesses are there at present in UK. This is a major source of economic development
in UK. Small business employee not more than 250 employees, SME’s account for over 5.5
million companies in UK (Isaga et.al, 2015)
The impact of SME on the economy of the country can be understood by critical examination
of statistics. A brief of study of all the impact is presented below,
There has been an increase in the number of SME in London from 805,085 to 581,000 from
2012 to 2015. This shows that there has been a significant increase in the level of
employment in city of Edinburgh which has also led to economic development. Sources
suggest that there has been a registration of 350,410 private companies and many other small
scale businesses in 2016. This is a sign of great success and growth in the economy. small
and medium enterprises are a sign of development of economy and leads to political and
financial development.
There has been an increase in the level of employment up to 60% and 1.9 trillion pound of
turnover in UK. Also there are 71% entrepreneurs who are self employed and do not
employee anyone further. UK holds a very strong position in the world in terms of economic
development. There has been an improvement in society and lifestyle by 64% and many more
benefits have been provided to the workers and employees in the form of job satisfaction and
security (Burns, 2016).
It has also been estimated that the business that support economic development in UK
constitute around 7200 in number, employing around 15.7% of the population and making a
turnover of £1.8 trillion.
P4 Explain the importance of small businesses and business starts-ups to the growth of social
economy
Small business and start ups are present in every sector of UK and support economic
development. There are around 500 industries employing a few numbers of employees
6

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providing employment opportunities to a number of fresher. The main motive of these small
business is to lead to expansion and capture large market while satisfying customers
(Buenstorf et.al, 2017). They aim at capturing large market place and increasing productivity
by innovative methods and business ideas. The role and benefit of the business is discussed
below:
Employment opportunity:
The development of small business has led to an increase in the number of employment
opportunity for the fresher as well. There is an increase in job opportunities.
Growth:
Innovation of product and services lead to economic development, improvement and growth.
The enterprise must also lead to social and economic development.
Injection of money:
These small scale enterprises lead to injection of money in the economy by the enterprises for
the development of economic conditions of UK.
The small and medium enterprises aim at making small developments in the organization
which requires use of small amounts of resources. These resources are further used for
making innovation in the products and services so as to lead to development and increasing
customer base. The new methods that can be adopted by the SME include technological
advanced methods, promotion on social media, and e commerce methods. The small
entrepreneurs try to motivate the employees to perform better by applying all the skill and
knowledge.
The small business keeps on planning strategy that helps in growth of organization as well as
development of economy of UK. There are a large number of small organizations that are
present in the economy and serve for the betterment of the economy and providing financial
support to the entrepreneurs.
M2, D2 Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics
There has been a significant contribution by the SME in the economy of UK. There were 5.5
million private sectors in 2016. This shows an increase of 97000 since 2015. The increase in
7

the number of SME is a result of easy granting of loans and advances. The government of UK
has started supporting the development of industries. The development of these industries
improvises the role, of many more middlemen such as the stakeholders, banks and
government thus influencing employment opportunities positively.
The small enterprise opens of opportunities of employment while increasing competition in
market. The small enterprises better use their time for strategic management and development
of the firm (Storey, 2016).
The medium sized firm enables achievement of goals and finding opportunities so that
growth and expansion can be found out. They contribute economic development by
enhancing growth.
The large enterprises add to internationalization and create a reputation of the economy
worldwide. They help in meeting funding requirement and spending more on research and
development to bring a new product in the economy for customer satisfaction.
The small business has an impact on all the levels of economy such as local, regional,
national and international. At the local level they provide employment and innovation while
also motivating for better performance. At the regional level they help in improving
competition and meeting supply and demand pattern. The national level they provide
financial independence. At the international level they show the culture and values of an
economy while creating a good reputation (Zhou, 2016).
8

LO3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
Entrepreneur is a well to do innovative person who looks forward in elaborating an idea,
researching on it to find out the best possible way of execution. They are professionals and
have better knowledge about businesses than other managers. The scope, functions and
responsibilities relating to risk and performance is greater in context of entrepreneurs than
managers. Two successful entrepreneurs have been discussed below to differentiate between
the roles of entrepreneur and business manager.
Steve jobs
The list of entrepreneurs cannot be drawn out without inculcating the name of one of the
famous and successful entrepreneur Steve Jobs. He started earning for his family at a very
young age by selling bottles and auditing classes. Then a magical twist entered his career
when he started designing apple computers with his childhood friend. He is regarded as the
Father of Digital Revolution who has bought a total change on how people look at computers.
He had a net worth of $8.3 billion at the time of his death (Davis, et.al, 2016).
Figure 2: Steve Jobs
(Source: theguardian.com, 2018)
Risk taking:
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The more the risk, the more is profits. Steve jobs took risk of making and launching a product
of high technical importance by bringing innovation in his work. The execution of idea of
making computers can be seen as one full of risk.
Visionary:
Jobs started working to support the financial status of his family by stepping out from the
usual business course and heading towards an innovative idea.
Hard work:
At a very young age jobs started working hard to earn living for his family. He worked hard
to attain his vision of transforming into technological advanced economy.
J.K. Rowling
J.K Rowling is a renowned name in all the houses of the world. After a long journey of
hardship the bestseller Harry Potter came into existence which became a world famous series.
It is estimated that she has a net worth of $1 billion now. It is also said that she was also the
president of Gringotts Wizarding banks. She struggled in her life to survive as a single parent
(Humphrey, 2016).
Figure 3: J.K. Rowling
(Source: beinspiredchannel.com)
Learning from hardships:
10

One of the greatest traits of an entrepreneur is to keep on moving and learning from past
experiences and overcoming all the hardships still trying to work towards the goal.
Belief:
Rowling believed in her inspiration and series even after suffering failures in life. She tried to
develop her skills to be competent enough. All this led to the biggest success story of her life
Harry potter.
Developing skills:
Rowling was not gifted with the magic of writing series. She eventually developed her skills
so as to become a skilled writer. One of the most important traits that are present in an
entrepreneur is skill development.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset
Entrepreneurial personality helps in motivating employees and bringing the needed changes
for organizational development. Entrepreneurial development makes an individual
responsible for work performance and career development. There are various theories of
motivation that proves that the personality of an entrepreneurial is based on the personality
and skill of the individual. It is vital for the entrepreneurial to develop required skills that
help in achieving business goals (Baldacchino et.al, 2015).
Theories of motivation
Power motive:
The internal power of an individual is used to get motivation during times of struggle and
critical situation when the entrepreneurial faces issues.
Achievement motive:
This will enhance the level of work to achieve excellence of performance. It gives power to
develop and use skills for achieving high level of success. The main focus is to overcome
obstacles and challenges that hinder growth process.
Affiliation motive:
11

This motivation is required to develop relations with customers so as to create a positive
impact on the well being of business and achieve business objectives.
Figure 4: Self motivation theory
(Source: iedunote.com)
The above mentioned motivation power must be present in the entrepreneurs so that they are
able to handle every critical situation and work towards the achievement of organizational
goals. The motives that help entrepreneurs to achieve goals help in facing the various market
challenges. These process help in bringing the required changes for entrepreneurial
development
The story of Sir Walt Disney now famous for his irreplaceable animation work once had to
struggle a lot to even find a job as an artist. His story reveals that background, culture and
support of family and friends are essential factor for the development of a entrepreneur.
M3, D3 Explore and examine different lines of argument relating to entrepreneurial
characteristics.
The characteristics of an entrepreneur depend on factors such as birth or learning from the
surrounding environment. Entrepreneurial factors and situational characteristics including
family, upbringing, lifestyle and cultural differences influence the character of a person.
The entrepreneurial characteristics pose an impact on the achievement of goals of the
organization. The characteristics can be either positive or negative. Positive characteristics
enhances the growth process where as negative ones hinders the growth process and acts as a
break in the process of development (Baldacchino et.al, 2015).
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It is said that there are entrepreneurial genes present sometimes but often education and
guidance develops required traits and personality in an individual. It is the efforts of an
institution that leads to the grooming of a successful entrepreneur.
13

LO4
P7 Examine, using relevant examples, how background and experience can hinder or foster
growth process.
Entrepreneurship development starts with the process of planning for future activities. it
includes setting up of goals and aims of the organization and working towards achieving the
same. The past experience and background plays an important role in interpreting the issues
that might arise and finding out potential solution for the problems that hinders growth
process. The story of a successful entrepreneur has been discussed with the impact of
background and experience in positively achieving entrepreneurial development.
Madam CJ Walker
Sarah Breed love popularly known as Madam CJ Walker is an amazing lady who is also
known to have achieved the title of first black female self made American millionaire. She is
a hair and beauty product designer for the blacks (Walker, 2015).
Background:
CJ walker was the child of her family to be born in freedom. Her parents and elder siblings
had been slaves in Louisiana plantation. She was neglected because of her black colour and
so was her family. This made her realize the importance of being successful and started
working for the welfare of blacks.
Past experience:
Walker had seen a market that was losing importance and none of the entrepreneurs took
steps for development. This made her find an opportunity and she started to research on
solutions for problems. She found smart and strategic solutions for problems that no one else
seemed interested in solving.
Bill gates:
Bill gates is said to be the richest man in the world with a turnover of $79 billion. He is the co
founder of the largest software company Microsoft. He showed interest in computers from
the beginning and started developing soft ware’s and programmes.
14

Figure 5: Bill Gates
(Source: makeuseof.com)
Background:
Bill gate comes from a supportive and educated background that has enabled him to work for
the development of technology in computers. He worked hard to establish an enterprise for
supporting world health, education and charity.
Past experience:
He initially was experienced in working with small programmers and changing various jobs
to look forward to his area of interest. He remained the chairman of a board for a long period
of time after which he decided to switch towards his passion. His experience in different
posts gave him knowledge about the various technical aspects of computer and technology
which supported him in developing Microsoft software (Duening and Metzger, 2017).
M4, D4 Analyse the link between entrepreneurial characteristics and the influence of
personal background and experience to specific successful entrepreneurs
The background and personality of an individual reflects the skill and knowledge that they
pose. The background determines the level of patience while the personality helps in handling
critical situation and struggles. The characteristics of a person determine the ability to analyze
the environment and make effective decisions.
Sometimes the behaviour of an individual entrepreneur also poses a negative impact on the
business environment. For Example, if an individual is impatient it will lead to bad decision
making and stress on handling difficult situations.
15

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The trait of an entrepreneur depends on factors such as past learning, surrounding
environment and characteristics present in the genes of the person. Grooming of personality
is essential for good decision making. Entrepreneurs must have personality that motivates
others to perform well ( Mas-Tur and Soriano, 2014).
16

Conclusion
As per the report there is a positive impact on the economic development of UK due to the
development of entrepreneurship in small and medium business. The types of business
venture and a comparison on various types of venture has been made in the report. Also
statistics has been pointed out from various research related data to find out the impact of
small and medium enterprises on the economy of the country. The importance of small
business and start-up as in increase in employment opportunity, new products in the market
has been highlighted. The report will also discuss about the various traits and characteristics
that are needed for entrepreneur development and success of organization. True image of
entrepreneur are reflected in the motivational skill and mindset of the person. Some examples
have been cited that shows how background and experience can foster or hinder the growth
process.
17

References
Books and journal
 Baldacchino, L., Ucbasaran, D., Cabantous, L. and Lockett, A., 2015.
Entrepreneurship research on intuition: A critical analysis and research
agenda. International Journal of Management Reviews, 17(2), pp.212-231.
 Baldacchino, L., Ucbasaran, D., Cabantous, L. and Lockett, A., 2015.
Entrepreneurship research on intuition: A critical analysis and research
agenda. International Journal of Management Reviews, 17(2), pp.212-231.
 Buenstorf, G., Nielsen, K. and Timmermans, B., 2017. Steve Jobs or No Jobs?
Entrepreneurial activity and performance among Danish college dropouts and
graduates. Small Business Economics, 48(1), pp.179-197.
 Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
 Coviello, N.E., 2018. The Network Dynamics of International New
Ventures. International Entrepreneurship: The Pursuit of Opportunities across
National Borders, pp.175-215.
 Davis, M.H., Hall, J.A. and Mayer, P.S., 2016. Developing a new measure of
entrepreneurial mindset: Reliability, validity, and implications for
practitioners. Consulting Psychology Journal: Practice and Research, 68(1), p.21.
 Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in
Social Entrepreneurship and Sustainability(pp. 34-42). Routledge.
 Duening, T.N. and Metzger, M.L. eds., 2017. Entrepreneurial identity: The process of
becoming an entrepreneur. Edward Elgar Publishing.
 Humphrey, R.H., 2016. Oprah Winfrey and JK Rowling: One Extravert, One
Introvert: Both Successful. SAGE.
 Isaga, N., Masurel, E. and Van Montfort, K., 2015. Owner-manager motives and the
growth of SMEs in developing countries: Evidence from the furniture industry in
Tanzania. Journal of Entrepreneurship in Emerging Economies, 7(3), pp.190-211.
 Mas-Tur, A. and Soriano, D.R., 2014. The level of innovation among young
innovative companies: the impacts of knowledge-intensive services use, firm
characteristics and the entrepreneur attributes. Service Business, 8(1), pp.51-63.
.
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 Storey, D.J., 2016. Understanding the small business sector. Routledge.
 Villa, A., 2014. Managing Cooperation in Supply Network Structures and Small Or
Medium-sized Enterprises. Springer.
 Vogel, P., 2017. From venture idea to venture opportunity. Entrepreneurship Theory
and Practice, 41(6), pp.943-971.
 Walker, C.J., 2015. Inside Agency Statutory Interpretation. Stan. L. Rev., 67, p.999.
 Zhou, B., 2016. Lean principles, practices, and impacts: a study on small and
medium-sized enterprises (SMEs). Annals of Operations Research, 241(1-2), pp.457-
474.
Online
 Bill gates, 2018 [Online] [Accessed through] < https://www.makeuseof.com/tag/best-
stories-history-of-windows/>[Accessed on 1st August, 2018]
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