Entrepreneurship and Small Business Management Aspects

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and their relationship with the typology of
entrepreneurship.....................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.........................................3
M1....................................................................................................................................................5
D1.....................................................................................................................................................6
LO2..................................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Interpret relevant data and statistics in your mini-research, to illustrate how micro and
small businesses impact on the economy...............................................................................6
P4. Explain how important small businesses and business start –ups will contribute to the
growth of the social economy after ‘Brexit’.........................................................................10
M2 .................................................................................................................................................11
LO3................................................................................................................................................11
TASK 3..........................................................................................................................................11
P5. Characteristics, traits and skills of two successful entrepreneurs..................................11
P6 Aspects entrepreneurial personality................................................................................13
LO4................................................................................................................................................14
TASK 4..........................................................................................................................................14
P7 Different ways by which background and experience can hamper the performance of
entrepreneurship...................................................................................................................14

Examination of different environments that foster or hinder entrepreneurship...................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneurship refers to the planning, organising, directing and controlling the business
activities of ones own business. For economic and social growth, entrepreneurship can be one of
the fundamental components. It facilitates national development along with regional and local
development too. Entrepreneurship is dynamic and a complex activity. Along with this, different
entrepreneurial skills are found in different individuals (Ács, Autio and Szerb, 2014). These
skills are an overall outcome of the knowledge and experience they acquire in their lives. The
following assignment is based on various aspects of entrepreneurship with focus on different
types of entrepreneurial ventures and their similarities and differences. It also includes impact of
small businesses on the economy of the country. In addition to this, emphasis has been given on
the contribution of small and medium-sized enterprises in the growth of social economy after
Brexit. Lastly, characteristics, traits and skills of two successful entrepreneurs are briefly
discussed.
LO1
TASK 1
P1. Different types of entrepreneurial ventures and their relationship with the typology of
entrepreneurship
Entrepreneurship is a skilful approach to organise, manage, control and lead individuals
within a firm towards organisational objectives. It is necessary for development of the
organisation. It expands organisations function by producing and enacting materials in an
innovative way and by proper utilisation of techniques used in production of these materials.
Different types of entrepreneurial ventures are described below:
 Scalable Business Start-ups: Focus of these businesses is completely towards the
creative points of the business. The persisting model is dynamically changed by these
ventures. They target at employing efficient personnel in their workforce to achieve this
objective. They rely on venture capital funds and financial investments for their
expansion (Blackburn, Hart and Wainwright, 2013). The company provide main priority
in order to satisfy their customers needs and wants so that company can easily earn
maximum profitability and income. They work in specific modern approach in society
with their alterations and well developed goods. In United Kingdom, such type of
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ventures are taken effective approach in order to introduce buyer regarding terms of
technology.
 Small Businesses: These are the businesses that are mostly independently owned and is
very limited in size, for instance, cafes, auto-mobile retailers, etc.. The revenue
generation from these businesses is also limited. Currently, UK is experiencing a boost in
these businesses. These businesses are also helping the country in increasing its overall
employment level. They are work in such manner in order to appoint local people them
training so that they can deliver their buyers in proper manner. In this, they are set up
business by taken funds from their friends and family. They are taken their steps in order
to find out the needs and demand of customers. The main aim of this business is to fulfil
their buyers requirements effectively.
 Large Corporations: These are those businesses which operates on large scale. They tend
to generate immense revenue for its stakeholders to acquire and the number of people
associated with these companies are also huge. They aim towards sustainability as well as
growth by employing new products and services, along with the business of existing
services and commodities (Bosma and et. al., 2012). This is the reason of them having a
specific life cycle. Competition level in these businesses is very high. It is required of
them to continuously formulate their strategy along with modifications in their products
and services according to market needs. With the main purpose of this, they require to
make and develop competitive advantage by introducing new and well developed
technology goods in better manner. They assist in carry out modern approach to an
organisation. In addition to this, it will provide their main concentrate on huge amount of
deals. Such typology of firm assist in find out target market where they can start to
expand their business operations and its activities.
 Social Entrepreneurship: These type of entrepreneurship aim towards development of
services and products for societal progress and betterment of people. The main agenda is
to provide social services by implementing the firm's products and services towards
betterment of population as well as to increase the effectiveness of the society.
Typologies of entrepreneurship ventures:
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Typology can be described as classification of a group or a class, having characteristics in
common, on the basis of general type, structure, form, style, plan, etc. The four types of
typologies found in entrepreneurship are mentioned below: Survival Ventures: These ventures are limited to providing basic subsistence to
entrepreneurs and their families. They are usually not formally registered and don't
operate in any premises (Bridge and O'Neill, 2012). These ventures have to no banking
relationships and just operate with few basic assets. Reinvestment in these ventures is
usually not a suitable option as they exist to satisfy basic financial needs of its owners.
Micro-businesses are covered in this type of topology. Lifestyle Ventures: These type of ventures provide stable income for its entrepreneurs.
These ventures adopt a maintenance approach and workable business model. These
ventures are subjected to competition in local markets. These ventures usually have few
employees and operate in single premises. Businesses in lifestyle ventures do not aim at
growth or expansions. Number of employees in these ventures remain comparatively
constant. All kinds of small businesses are covered in this segment. Managed Growth Ventures: Over time, these ventures aim at stable business growth and
consists of workable business model (Carsrud and Brännback, 2011). These ventures aim
at steadily expanding their facilities, innovative product launches, entry in new markets,
shifting their locations, employing new staff, etc. Reinvestments in the ventures are
ongoing. All the medium-sized enterprises are included in this typology.
 Aggressive Growth ventures: These ventures are technology-based in nature and possess
strong innovative potential. These businesses seek exponential growth overtime and rely
on equity capital for their funds. Such ventures operate nationally as well as
internationally with aim to enter new markets over time. This topology covers all the
large businesses and enterprises.
P2 Similarities and differences between entrepreneurial ventures
There are certain elements which makes one another different or similar while
performing any kind of activities or task. So, to understand the concept in a better manner both
similarities and differences are explained below:
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