Entrepreneurship and Small Business Management

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This report provides a comprehensive analysis of entrepreneurship and small business management, covering various aspects such as different types of entrepreneurial ventures, their impact on the economy, and the traits and skills of successful entrepreneurs. It also examines the environments that foster or hinder entrepreneurship, drawing insights from the experiences of prominent entrepreneurs like Richard Branson and Peter Jones.
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Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of Entrepreneurial ventures and they relate to the typology of
entrepreneurship..........................................................................................................................1
P2. The Similarities and Differences between Entrepreneurial ventures....................................2
TASK 2............................................................................................................................................5
P3. Relevant data and statistics to illustrate how micro and small businesses impact on the
economy......................................................................................................................................5
P4 importance of small businesses .............................................................................................6
TASK 3............................................................................................................................................7
P5 characteristic traits and skills of successful entrepreneurs ...................................................7
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset........................9
TASK 4..........................................................................................................................................10
P7 Examine the different environments that foster or hinder entrepreneurship.......................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The Entrepreneurship refers to setting a new business and taking financial risk for the purpose of
profitability. Entrepreneur brings newly creative and innovative ideas in the business. Small
business management refers to the small and medium size enterprises and how Entrepreneurial
firms can be managed in order to lead towards success. The Project report will examine the
different types of entrepreneurial ventures and also explain how they relate to the typology of the
entrepreneurship. The Report will further outline the similarities and differences between
entrepreneurial ventures. The Report will go to interpret the relevant data and statistics in order
to illustrate the micro and small businesses and their impact on economy. The report will
furthermore explain the importance of small businesses and will explain what role they play for
the growth of the economy. The report will also determine the characteristic traits and skills of
the successful entrepreneurs that differs them from the managers of the other business. The
report will explain how aspects of entrepreneurial personality reflects the entrepreneur mindset
and motivation. Lastly the report will examine how background and experience can foster the
entrepreneurship.
TASK 1
P1 Different types of Entrepreneurial ventures and they relate to the typology of
entrepreneurship.
Small Businesses Entrepreneurship – The Small business is that Entrepreneurship that runs
their business by own. The small business hire local employees or the family members for their
business. The motive of small Entrepreneur is to earn profit from their business in order to feed
their family. Funding of small businesses is done through via friends, family members and by
taking small business loans. Small businesses are the groceries stores, consultants, travel agents
and Electricians, Carpenters etc. Small Business Entrepreneurs required various skills to
organize and develop management of their business. Successful small business entrepreneurship
adds values to the society.
Scalable start-ups Entrepreneurship – The scalable start-ups have vision to change the world.
The Start-up entrepreneurs attract investment from venture capitalists and financial investors.
They hire Employees which suits their business profile and have ability to lead business towards
the success. They work for repeatable and scalable business (Windapo, 2018). There motive is to
expand their business by generating more capital. The Scalable start up entrepreneur takes higher
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financial risk to operates their business. The Scalable Start-up Entrepreneurship is the newly start
up business venture which aims to develop a viable business model in the marketplace.
Large companies Entrepreneurship – The Large Companies entrepreneurship have a finite life
cycle. The Large Companies bring creative and innovative idea in the business. They keep
offering new products to attain the desires of the customers. The offer superior quality products
to their customers. They grow through sustaining innovation and by bringing and introducing
new technologies in the market. They generally faced huge competition from their competitive
firms. They seek for improvement and development in their existing products. For growth and
expansion of their business they go for diversification (Smith, 2018). Large companies even do
acquisition and mergers with the innovative firms in order to cut off the competition in the
market and also to obtain something new and creative into their existing business.
Social Entrepreneurship – The Social Entrepreneurs are the ones who seek for the innovation
in order to create products and services which can easily resolve the social problems and can
fulfil the needs of the society. The goal of social entrepreneurs is to make world a better place to
live. Their objective is to serve society and the needy peoples (Lundberg and Rehnfors 2018).
They don't work just for the sake of the profitability or just to create wealth for their founders.
The Social Entrepreneurship can be done to generate profits or non profit or maybe it can be
hybrid in some businesses.
Typologies-
Lifestyle entreprenuer- It creates the business with alterning their personal lifestyle for purpose
of makibg profits. This focus on life rewards provided to people that enjoy have passion for what
they are doing.
Serial entreprenuer- They come up with the idea and things that get started with the self
confidence to passion and pursuit happiness.
P2. The Similarities and Differences between Entrepreneurial ventures.
Similarities between different Entrepreneurial ventures
All the Entrepreneurial ventures fulfil the desired need of the market and aims to earn
profitability. All the Entrepreneurial Ventures purpose is same to bring new products and
services in the market. All Entrepreneurial ventures vision is same to offer innovative and
creative products and services to the customers and to generate revenues from them. All the
Entrepreneurial ventures looks for the growth options.
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Differences between different Entrepreneurial ventures
Basis Small Businesses Scalable Start-
up
Large
Companies
Social
Entrepreneurship
Definition Small Businesses
Entrepreneurship
is the
independently
owned and
operated by a
profitable
enterprise.
The Scalable
start-ups are the
young,
innovative,
creative and
focused firms that
offers new
products, services
and technologies
that differentiate
from the existing
ones. The
Scalable start-ups
Entrepreneurship
have a potential
to create a new
market that
dramatically
change the
existing markets.
The large
Companies
Entrepreneurship
are those
established firms
which has ability
to employ at
least 500
peoples.
The Social
entrepreneurship is
dedicated towards
providing social
benefits to the
economy and they
tend to built
innovative
solutions for the
society welfare in
order to make
world a better
place. Through
creation of their
innovative
products they
solve the problems
of the society.
Goal The goal of small
business
entrepreneurship
is to grown into a
long term
business that
generate profits
The goal of
scalable start-ups
entrepreneurship
is to built the
Company's scale
with the goal of
generating wealth
The goal of large
companies
Entrepreneurship
is to generate
substantial
revenue and
profits for their
The goal of social
entrepreneurship is
to serve the society
by generating
innovative
solutions for the
public. The goal is
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and grows on
sustainable basis
during course of
action.
and prosperity for
the founders and
investors through
an acquisition or
Initial public
offering.
shareholders
(Knight, 2018).
to obtain
sustainability in
this business.
Kind of Business The kind of
businesses that
small businesses
operates is Retail
stores,
Constructive
firms,
Electricians,
Restaurants,
Travel Agents.
Carpenters and
agriculture.
The kind of
Companies that
generally scalable
start-up
entrepreneurship
have are
Information
technology
companies which
develop B2B
software.
Innovative apps
and develops life
saving machines.
The kind of
business that a
Large company
do is basically
corporations
such as General
Electric and
motors.
The kind of the
business that a
Social
Entrepreneurship
generally do is of
solving health
issues, solving
specific problems
and to associate
with a
philanthropic
mission for the
society welfare.
Capital providers Capital providers
to such businesses
are Micro loans,
Bank loans.
Personal funds
and also through
family and
relatives.
The Capital
providers that
Scalable start-ups
enterprises has is
riskier than any
other business
(Windapo, 2018).
They are
generally
accelerators,
The Large
company
increase capital
through the
obtaining
revenues, profits
and Capital
reserves. They
also have
subsidiaries
The Social
entrepreneurship
capital providers
are public trust,
sponsors,
associates, various
organisations,
public donations
and their own
contributions.
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venture capital,
and angle
investment.
which provides
capital to them.
Outcomes The Small
Business
Entrepreneurship
generates the
payroll taxes and
jobs but they are
not large
employment
providers. They
provide products
and services that
is necessary to
generate profits at
their retail store.
The Scalable
Start-ups
Entrepreneurship
has the potential
to create the
significant
revenue and to
impact positively
for the growth of
the economy.
The large
Company is a
significant
Employer to the
community.
Large
Companies is
tended to be a
recognizable
brands and have
generated
reputation in the
marketplace.
The Social
Entrepreneurship
has the potential to
create significant
social impact and
helpful in
improving the
lives of the
peoples.
TASK 2
P3. Relevant data and statistics to illustrate how micro and small businesses impact on the
economy.
It is defined as third sector that is formed by the rich diversity of the enterprise. The
Micro and Small businesses contributes the economy by giving people opportunity to achieve
financial independence, helpful in creating employment opportunities and encourages
innovations. There was 5.6 million micro and small businesses have started in the UK in the year
2018. Small businesses accounted for the financial year 2018 is 99.5% from all the private
businesses of which at the beginning of the year 2018 the 99.9% were micro and small sized
businesses. Micro and Small sized businesses had a combined turnover of £2.0 trillion in the
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year 2018 (The role of small businesses in the UK economy, 2018). The Micro Businesses were
5.4 million in the year 2018 in United Kingdom.
Impact of Micro and Small Businesses in the Economy
Total Employment generated from Micro business is increased by 33 % which created 8,802 new
job opportunities in United Kingdom in the financial year 2018. Turnover of Micro Businesses is
increased by 21% which was recorded as £808 billions. Total Employment generated from
Small Business is increased by 15% in the financial year 2018 and has created 4,083 new job
opportunities in United Kingdom. Turnover of Small Businesses is increase by 15 % in the
financial year 2018. The actual turnover recorded as £590 billions in the financial year 2018.
Total Employment contribution of the Micro and Small Businesses was 16.3 million in the
financial year 2018 which accounted for 60% of all private sector Employment. Due to rapid
growth in Retail industry in united Kingdom. The Retail sector itself has created new
employment opportunities for the people by an increment of 19% in the financial year 2018. The
Micro and small businesses is autonomously responsible for growing economy in developing
countries.
P4 importance of small businesses
National
Small business creates a big impact on the economy. Small business provide help to nation by
the use of many primary ways such as small business provide the job opportunities to employees,
encourage the employees to create new product, also provide opportunity for financial
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Illustration 1: Employment in Micro and Small Businesses
Source: Business statistics, 2018
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independence. Small business is the engine of expand the economy. Because many small
business have increase the highest profits and now they become powerful company such as
Amazon, Flip-kart, Google, Microsoft. Etc. these all founders had a new idea. A good
entrepreneur has to believe themselves first and then they use their ideas for expansion. Small
business is allows both citizens and the government to acquire a new idea for expansion of
economy. At the same time it allows the people they share their new ides to the customer and
customer are attracted to the new product which also create the good impact on the economy.
Because customer purchase the product which creates the positive impact on the nation that
increase the purchasing power because of increase the potential income of customer. So that
means help to reduce the unemployment (Storey, 2016).
International
Small business is help to increase the growth in globally. SME is help to construct the new
society and new environment provide the best society 'free of poverty' Also, increase the job
opportunity which means money is flow in different areas so which helps to reduce the poverty.
In 2015 report was published which describe that most of the job opportunity available in the
different market that organize by the small business, Also describe that small business provide
approx 600 million jobs to the people for reducing the unemployment and increase the income of
the people. So small business is playing a good role in the economy for providing the best
product and develop the economy with new technology.
Regional
Small business is important of the regional level. Small business is sale their product in different
region which affect the demand of the products. Resulting, is small business improve their new
products and they easily sale the product in different area customer are happy because they also
purchase the new product in their own town. Small business have a large proportion of the firms
in the different regions. In most developing and developed economies, over 90% of small
business has improved the employment rate. Also, small business easily enter in different
locations they sale their product in different region.
TASK 3Typologies-
Lifestyle entreprenuer- It creates the business with alterning their personal lifestyle for purpose
of makibg profits. This focus on life rewards provided to people that enjoy have passion for what
they are doing.
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Serial entreprenuer- They come up with the idea and things that get started with the self
confidence to passion and pursuit happiness.
P5 characteristic traits and skills of successful entrepreneurs
Characteristics
Creating new venture
Entrepreneurship is related with innovation of new venture and business with new ideas. Such
business starts as small ventures with creative ideas that affect the society and fulfilled the needs
of the customers. These small business produce the innovative product to satisfy the unfulfilled
needs of customer and also produce good or something different that create a good value of
product. So basically entrepreneur created a new idea for small firms (Storey, 2016).
Strong network ability
Being an entrepreneur they have ability to create new things and make the best network.
Entrepreneur has the best network to establish their ideas with the help of investor, advisor. Also,
they must know that how to take opportunity for develop the new relations with highly qualified
and experienced people, these peoples help for increase the growth as well provide the best
advice for succeeded the business.
Self confident
The entrepreneur should have a characteristic of self confidence which boost their ability to take
decision. This initiates entrepreneur to face challenges and also build morales of employees
working under the enterprise. The self confidence is an essential attribute that will lead an
enterprise towards growth and entrepreneur attain success by their self confidence only.
A good learner
The one who is always eager to learn new things is an essential attribute an entrepreneur must
have. The entrepreneur is ready to learn new things and also learns good deeds from their
mistakes. This behaviour of learning helps an entrepreneur to attain success (Kraemer-Eis,
2018).
Traits
Self motivational
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Self motivation is one of the most important traits of the entrepreneurs. When entrepreneur want
success, they can able to push yourself regarding their future, career. Entrepreneur keep growing
as their hard work they cannot answerable to any other also they cannot take advice to any
others. They dedicated about your plan and keep moving towards the goal of business. So as
entrepreneur people get motivated they confident about their idea. They must know that their
idea is unique and customer likes and appreciate these ideas.
Passion
Entrepreneurs are passionate about their new ventures. Passion has increase the motivation
among entrepreneur when they feel low, So passion is help to increase the growth towards their
mission. Passion is the tool of success in your career. If person lose their motivation this is the
identity of move on in your life means create something new and follow your passion. There are
many entrepreneurs who succeed in there life to follow their passion (Idris, and Saridakis,
2018).
Trust in team
Another trait of entrepreneur is that they always have faith in their team. They did not have any
issues regarding to their working. For better development and success of business the
entrepreneur should have trust in their team members and also have positive attitude towards
them.
Respect their team members and employees
The team members and employees are an important resource of any business entity. The
entrepreneur trait also includes respect of their team members and employees. A good
entrepreneur is always concern for their workforce and their dignity is always taken care by the
entrepreneur.
Skills
Profit potential
Entrepreneur has taking the risk when they create something new and produce the new product
in the market. So profit potential is check the level of return and profits to the entrepreneur for
taking loss. Without measuring the profits' entrepreneur cannot expand their business Also all
efforts would remain constant (Idris, and Saridakis, 2018).
Risk Assumption
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Entrepreneur has involves to measure the risks which describe the loss in the business.
Probability of loss which implies the risk conditions in the business. Entrepreneur understands
the business like what kind of factor influence the business and which type of factor affects
business and increase the risk such factors are Financial risk, career risk, social risk and psychic
risk. Commonly, new business raise the high return and high risk.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.
Ocean model Big Five personality traits
Openness to experience
Generally a people who like to take challenges. Like to learn about the new things. And many
people enjoy the new experience and they passionate about their new ideas. In the stage of
Openness to experience Its includes the different traits of entrepreneur like self motivation,
passionate, imaginative. Duncan Bannatyne is the perfect example of succesful entrepreneur. He
started their carrer as an ice cream man seeling the icecream from a second hand van. They have
koweldge about how to organize the business. So Duncan Bannatyne is the good personality who
take challenges. Also, Like to learn about the new things. Now he is sucesful business man
(Idris, and Saridakis, 2018).
Conscientiousness
Many enterprenurre who have a high degree of conscientiousness are reliable and prompt. Traits
include being organised, and punctuality. A good enetrprenures has the best managemnt skills,
they dedicate towards their work and punctuality of the work. They manage the all things. They
have a new innovetive ideas. They can use their idea in the buniess they take advice with their
experts. So they easily take good decision related to the new product. Branson and Jones both
were organized towards their work and follow their ethics and values.
Extraversion
Extraversion is the best ability of the entrepreneur. The personality of entrepreneur is the
talkative and which creates the best impact on the others. The talkative personality is give energy
and also creates good impact on the others. High extraversion means is attracted all the people
and they seeking the attention For example J .K. Rowling is famous author. Rowling has
authoring the Harry Potter series. Which attract the many peoples who watch film. This film
achieves a good net worth of $1 billion (Goyal, Sergi, and Esposito, 2018).
Agreeableness
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Entrepreneur has take challenges and they introduce the new product to the customer. The nature
of the entrepreneur is the helping nature they provide the advice to others. High Agreeableness
Means they focus on their work and they are trust worthy person. In other hand low
Agreeableness means the personality is very strict and peoples are can not trust easily.
Neuroticism
Highly Neuroticism traits is described the sensitive and nervous personality of entrepreneur. In
other side low Neuroticism is describes the secure and confident personality of the entrepreneur.
Richard Branson is the best enterprenure personality there have lot of confidient (Goss, 2015).
TASK 4
P7 Examine the different environments that foster or hinder entrepreneurship.
The life of Richard Branson and Peter Jones was not easy in their early stages of becoming an
entrepreneur. They both had to face difficulties and obstacles in their every aspects of starting
any business. The life of Richard Branson has many obstacles in starting phase, some of them are
explained below:
Suffering from diseases at the early stage of life creates difficulties in educational institutions
and the family was also not financially stable. At the age of 16, Richard Branson dropped out of
the school and started the first business of magazine called Student. At the starting the money
was also not getting that much, and was not getting profit out of it and started advertisement
business in local market. That was a starting difficulty phase but later when cash flow started
becoming problem and to become having desire to become financially free and ended up with
opening of Virgin Records in the field of music territory which makes it cash flow more flexible
and had a great profit with this business.
The second business which gave the difficulty was Virgin Atlantic Airlines, when the initial
flight was about to take off, the plane's engine got damaged by the flock of birds which flew into
it and caused crisis in funding to repair the plane. By gathering money from other ventures, and
get the plane repaired and was successful in landing the flight in second attempt and promoted
this business on another level in the history entrepreneurship.
Let take the outlook of Peter Jones problems and difficulties, Peter Jones when he was a young
had interest in playing tennis and decided to give tuitions on tennis to earn little money. The
journey of Peter Jones had many ups and downs in starting every business. In twenties of Peter
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Jones founded a business related to computer systems (Dana, 2018). Initially the business was
getting good and profitable which helped Peter to buy car, house but after sometime this business
got in loss and Peter was bankrupt with no house and car. This failure took Peter to start another
business by opening a cocktail bar and computer support business which also failed down in
twenties. In early twenties, Peter was suffering from appendix and need to go through the
operation but after having so much failure, the operation went through with no drama and any
pain. To earn some money Peter did a corporate job and quitted after one year. The next venture
of Peter Jones took to the Phones International Group which provide wireless and mobile phone
solutions. The revenue generated by this business was outstanding as in the first year it collects
$21 M and in the second year it went to $85 M (Blankson, Cowan, and Darley, 2018).
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CONCLUSION
The Conclusion is being made from the above project report of Entrepreneurship and Small
Business Management that the Entrepreneurs introduces and brings innovative and creative
products and services in the market. It is been concluded from the above project report that there
are four types of Entrepreneurial ventures namely, Small business entrepreneurship, Scalable
start-up entrepreneurship, Large Companies entrepreneurship and social entrepreneurship. The
role of entrepreneurs is to introduce new technologies in the business and providing solutions to
the public problems. The entrepreneur is the person or an individual who starts and runs
business by its own. The purpose of entrepreneurial ventures is to generate revenues and profits
from the business. It is been concluded that Entrepreneurship involves financial risks. There is no
guarantee of success in the entrepreneurship. Proper planning is required for performing
Entrepreneurship. It is been concluded that there is positive impact of Micro and small
businesses on the UK's economy. The Employment opportunities is increased by 60 %. It is been
concluded that small business and start ups plays very crucial and significant role in growth of
the economy.
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REFERENCES
Books and Journals
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Ferrando-Latorre, S., Velilla, J. and Ortega, R., 2019. Intergenerational Transmission of
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Online
The role of small businesses in the UK economy, 2018 [Online] Available
through:<https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-economy
>
Business statistics, 2018 [Online] Available through:
<https://researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf >
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