Entrepreneurship and Small Business Management: Exploring Ventures, Impact, and Mindset

This report delves into the world of entrepreneurship, examining various venture types, their impact on the economy, and the key aspects of an entrepreneurial mindset. It explores the similarities and differences between small businesses, scalable startups, large companies, and social enterprises. The report also analyzes the contribution of small businesses to the social economy and the role of background and experience in fostering or hindering entrepreneurial success. Through relevant examples and data, this report provides a comprehensive understanding of the entrepreneurial landscape and its significance in today's world.

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Entrepr
eneursh
ip and
Small
Busines
s
Manage
ment
Table of Contents
Introduction...........................................................................................................................................3
LO1: Explore and illustrate the range of venture types that might be considered entrepreneurial.........4
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P1. Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship............................................................................................................................4
P2. Explore the similarities and differences between entrepreneurial ventures..................................6
LO2: Assess the impact of the small business on the economy.............................................................8
P3: Interpret and access relevant data and statistics to illustrate how micro and small business
impact on the economy......................................................................................................................8
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy......................................................................................................................................11
LO3: Determine and assess the key aspects of an entrepreneurial mind-set........................................12
P5. Determine the characteristic traits and skills of successful entrepreneurs that differentiates them
from other business managers..........................................................................................................12
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set...........................................................................................................................................14
LO4: Examine the different environments that foster or hinder entrepreneurship...............................16
P7. Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship..............................................................................................................................16
Conclusion...........................................................................................................................................18
References...........................................................................................................................................19
Introduction
Entrepreneurship and entrepreneurs have become the vital elements for the growth and
success of the economic as well as social development of the country. Entrepreneurship is
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responsible for the local, regional as well as the national economic development of the
country. The following report will discuss the various aspects of the entrepreneurship and its
various different ventures with respect to the typology. In the following assignment, we will
discuss the various entrepreneurial ventures and the similarities and differences between each
of them. We will also focus light on the importance of the small businesses and business
start-ups for the economy of the country and how they lead to the social development of the
country.
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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.
Entrepreneurship may be defined as the concept of willingness to develop and manage a new
business in the world of corporate by taking various different risks with the objective of
making profit. It is the willingness of the entrepreneur to start a new business by taking risks
on his own so as to make contribution in the economic development of the country by
generating revenue out of it (Drucker, 2014). Following is the range of various
entrepreneurial ventures:
M1: Small Business Entrepreneurship: These are the small businesses which are usually
run by the single owners as his/her very own business. Small Businesses might include
painters, hairdressers, carpenters, electricians, plumbers, mechanics, consultants etc. These all
businesses are mostly run by the single individual who is generally their owners. The small
businesses hardly make any profit as their objective is not to make large profits to rule over
other industries but have a simple aim to earn living through business so as to fulfil the
requirements of the family. Most of the small business firms get their funds either from their
friends or their family. Most of the businesses in UK accounts for small business enterprises.
Scalable Start-up Entrepreneurship: The main objective of scalable start-ups businesses is
to bring change in the world with their vision and mission. Therefore, in order to fulfil their
objectives, they hire the best among the available to carry out their business operations. They
get investments from the venture capitalists and in order to expand their business model more
they require more capital which is also provided by the venture capitalists. The amount of the
risk involved in such entrepreneurship is large because of the outsize returns (Kirzner, 2015).
Large Company Entrepreneurship: The main objective of the large business
entrepreneurships is to bring entirely new product for the new customers and that too in an
entirely new market. This is being done by adopting innovation in operations. The reason
behind such a requirement of new products is the advanced and changing technologies,
competition in the market etc. which puts so much pressure on the large enterprises to come
out with something new and innovation. They carry out business operations with the
objective of making money.
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Social Entrepreneurship: The social entrepreneurship firms are those who fulfil the needs
and requirements of the society by focusing on the creation and development of those
products that meets the needs of the society. The main motive of the social entrepreneurships
is to work for the betterment of the society and not for making profits for the business.
Intrapreneurship or Managerial Entrepreneurship: This is a kind of entrepreneurship
where the managers of the large company brings in innovation and come out with something
new and exciting. The main focus of the managers of these companies is to create something
new with the help of the innovation (Baum, et. al., 2014).
Lifestyle Entrepreneurship: The lifestyle entrepreneurship is those which are in accordance
with the lifestyle of the owner of the firm. These firms are mostly run with the objective of
making lifetime income with the business which is run by the passion and desire of the
owners. Example is Steve Jobs.
Growth Firms: The growth firms are those entrepreneurial firms which have the main
objective of making huge profits and their speed of growth in the market is very fast. They
operate to bring new products in the market so as to expand rapidly in the market and earn
more profits. Example is Google.
D1: The importance of entrepreneurial ventures is equal for each level company and for the
economic development of the country. Recession in UK is decreasing day by day and hence
the scope and development of the entrepreneurial ventures is increasing in UK. The scope of
the entrepreneurial ventures and new business start -ups is increasing as the young generation
of UK is more interested in own business set-up and starting something of their own rather
than taking up any regular morning to evening job. Therefore, as scope is increasing, people
are investing in new businesses and entrepreneurship firms more and more.
Also, with the changing requirements and changing technologies, innovation has become the
essence of the business. Therefore, the existence of the entrepreneurial ventures has become
strong in the market as they bring about innovative and new products and services in the
market. But out of the total, almost 99% of the entrepreneurial ventures that are favoured and
are invested in more are small and medium scale businesses.
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P2. Explore the similarities and differences between entrepreneurial ventures.
Entrepreneuria
l Venture
Kind of Business Goal Capital
Provider
Outcomes
Small Business The small businesses
are generally owned by
a single individual who
runs the business with
the objective of earning
bread for his/her
family. Example are
retail stores, painters,
carpenters, plumbers
etc.
Grow into a
lifelong business
which can be
owned by the
coming future
generations of the
family in order to
make profit.
The capital is
provided by the
personal funds,
friends, family
or small bank
loans.
Small businesses are
not large employers.
However, they
provide items and
services that are
necessary for the
daily lives of the
society.
Lifestyle Firms Lifestyle Firms are the
enterprises which are
run by the passion,
willingness and desire
of the owner in order to
make lifelong business
earnings and sustain in
the market (Carter &
Evans, 2012).
The main
objective is to
make lifelong
profits and
earnings through
self -passion and
expertise in
business.
Most of the
capital is
provided by the
investors.
Lifestyle firms
operate on small
scale and hence does
not provide
employment.
However, the
products and
services provided by
them enhance the
quality of lives of
people of society and
earn lifelong
earnings for the
owner of the
business.
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Social These are the
businesses which takes
the help of the
innovation in order to
make world a better
living place.
To make a huge
impact on the
society.
Their capital
providers are in
accordance with
their size and
structure.
Improves the lives of
the people of the
society by bringing
change and impact
on society.
Large These are the firms
having more than 500
employees working for
them For example:
Large corporation
companies.
Their main
objective is to
make huge profits
for the company
as well as for its
shareholders.
Tax Credits or
subsidiaries
(Carter &
Evans, 2012).
They are highly
recognised in the
society as major
brands and provide
employment on large
scale.
Scalable or
High Growth
Firms
These are the
companies that have
the potential to bring
change in the world
based on their
technology based
products and services.
To create huge
amount of wealth
for the
shareholders
through
acquisition or
other ways.
Angel Investors,
Banks etc.
They create
economic impact by
generating huge
revenue and
employment
opportunities (Carter
& Evans, 2012).
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LO2: Assess the impact of the small business on the economy.
P3: Interpret and access relevant data and statistics to illustrate how micro and small
business impact on the economy.
The contribution of the small and micro businesses in the economic development of UK is
vital and therefore they are considered as the backbone of the economy of the UK. The small
and micro businesses in UK are responsible for opening of new markets, driving growth and
hence creating jobs for the people of the country. They are the reason behind innovation and
therefore brings fresh ideas and hence competition in the market (Lewis, 2013). The growth
of SME’s in UK has set records in the year 2013 -14. The main reason behind the healthy
economy of the UK is the small and medium sized businesses and start-ups. Almost 99 %
businesses in UK account for small and medium enterprises and hence SME’s are considered
to be the integral part of the economy of UK. The relevance of SME’s to the economy of UK
can be better understood from the following:
M2: Turnover: The contribution of the SME’s in the economic development of UK can be
measured in terms of turnover. During the start of the year 2014, the combined turnover of
the small and medium sized enterprises in UK was almost 1.6 trillion pounds which is almost
47% of the total turnover of the private sector of the UK.
Employment: A large part of the total workforce of UK is employed by the small and
medium sized businesses, although, many of the small businesses do not provide employment
like sole traders etc. But most of the small businesses provide employment to the people of
UK which is almost 60% of the total employment provided by the private sector enterprises.
The figure is almost 24.3 million people which accounts for 81 % of the total workforce of
UK.
Growth: SME’s are also ahead when it comes to growth. The main reason behind the growth
and development of the SME’s is the innovation that brings fresh markets into existence
which would have otherwise gone unproductive (Lewis, 2013). As observed, almost 37% of
the total SME’s engages them in Innovation. Therefore, they can be considered as source of
innovation, growth as well as competition.
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The entrepreneurial spirit of UK is very strong and this is the reason behind the huge growth
of the SME’s in between 2009 to 2013 after the 2008 recession in UK.
Therefore, from the above, it can be very well said that small and medium size businesses are
very important for the overall economic development of the UK. The current economic
position of the UK is very strong and hence facilitates the growth of the SME’s in UK
(McAllister, 2016).
Besides above, the role of the large enterprises in the economic development of the UK
cannot be overlooked. According to the survey, the contribution of the large companies is
vital in the economic development of the country. The productivity of the large companies is
comparatively high and they also provide employment to large part of population of UK. The
salaries paid by the large companies are higher as these companies enjoy large profits which
add to the economic development of the country and helps in reducing poverty in the country.
The investment made in the research and development is also higher by large companies
which help in bringing innovation and hence better products and services in the country
(Euractiv, 2012).
(Source: https://theconversation.com/brexits-impact-on-small-businesses-the-experts-may-be-
spot-on-after-all-90561)
D2: As discussed earlier, SME’s are considered as the backbone of the economy of UK as
they contribute significantly in the economic development of the country by creating job
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opportunities, bringing new markets, increasing competition and driving innovation. The
impact of the SME’s on the local, regional and national economy of UK can be understood as
follows:
Local Level: The small and medium enterprises contribute in the local economy of UK by
bringing in creativity and growth to the communities where they serve their business
operations. They provide employment opportunities to small workers who may not get
employed by the larger organizations. They also do various business activities for the larger
organizations which they themselves cannot do (Yes Growth, 2014).
Regional Level: The contribution of the small businesses in the regional development of the
country is also significant. They add more value to the regions of the UK by bringing in more
competition in the market. The increased competition, on the other hand, results in the higher
turnover which in turn leads to the economic development of the country.
National Level: The contribution of the small businesses and businesses start-ups on the
national economic development can be understood in terms of revenue generated by the small
businesses. They generate revenue by paying taxes and this tax income in turn gets utilized
by the government of UK for the betterment of the infrastructure, schools, and hospitals of
UK. Thus, SME’s contributes significantly in the national development of the UK (Yes
Growth, 2014).
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P4: Explain the importance of small businesses and business start-ups to the growth of
the social economy.
The importance of the small businesses and business start -ups on the economic growth and
development of UK has already been discussed above. The small businesses and business
start -ups add to the economic growth of the country by generating employment opportunities
for the local population of UK and thus adding to their per capita income (Schaper, et. al.,
2014). The revenue generated by the small businesses and businesses start -ups which
accounts for almost 99% of the total businesses of UK, add to the economic development of
the country. In addition to this, small business and business start-ups spark innovation in the
society where they serve. They also provide financial independence to women and minorities
and helps in reducing poverty in the country by providing employment to those who might
not get employed by larger organizations. Small businesses improves the environment of the
society by fostering innovation which brings adds value to the society by bringing in fresh
ideas and creativity in the market. It increases the competition which in turn improves the
quality of the services for the people. Besides this, many services to large companies are
provided by the small businesses and business start-ups such as legal advice, accounting etc.
It also helps in raising the living standard of the people of UK by adding to their per capita
income through employment opportunities. Thus, it helps in modernising the lives of the
people of UK. Therefore, from the above, it can be said that the existence of small businesses
and business start-ups is very significant for the social as well as economic development of
the UK (Kola, 2014).
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LO3: Determine and assess the key aspects of an entrepreneurial mind-set.
P5. Determine the characteristic traits and skills of successful entrepreneurs that
differentiates them from other business managers.
All the successful business people have certain characteristics and skills in common.
However there are certain characteristic traits and skills that differentiate the entrepreneurs
from the other business managers. The main difference between the two is that the
entrepreneurs opens his new business venture by focussing on innovation and creativity and
manager works for the organization that already exists and hardly cares about innovation or
creativity. The managers do not take any kind of risks while successful entrepreneurs are
always the risk takers. Therefore following are the characteristic traits and skills of successful
entrepreneurs:
M3:
 Passion and Motivation: The most important characteristic trait of a successful
entrepreneur is the passion and motivation he has for his work. The passion for the work
makes the entrepreneur do the same thing over and over again without getting bored. The
passion and motivation of the entrepreneur brings him joy and makes him do the same
thing for the rest of the life.
 Vision: The successful entrepreneurs have the important and special characteristics of
seeing the big picture and the future of the future. They have the ability to see the
challenges in future and the direction where the business will be going (Mind Tools,
2018).
 Risk Taker: In order to be a successful entrepreneur, an individual must be a risk taker
so as to go ahead in the future of uncertainty. Risk taking ability is the most important
characteristic trait of the successful entrepreneurs who risks their time, money as well as
other resources on unknown ideas. The successful entrepreneurs do not get afraid by
failures. They make the best decisions in the worst situations.
 Serial Innovators: The one of the best characteristic trait of entrepreneurs is their
continuous drive to bring innovation and creativity by continuously making changes to
improve the existing products and services. They believe on improving the existing
products, services and processes in order to bring change in the society as well as in the
market.
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 Adaptability and flexibility: A successful entrepreneur needs to be flexible and
adaptable according to the needs of the customers and changing market trends as the
absence of same will lead to the failure of the entrepreneur. An entrepreneur needs to
understand the importance of satisfying the needs of the customers and making good
business by welcoming ideas and suggestions from others.
 Confidence: The confidence level of the entrepreneurs is very high that makes them
complete their tasks even under the most stressful situations. The challenges seen by
others are considered as opportunity by the entrepreneurs. They complete the challenges
in order to get the big rewards (Mind Tools, 2018).
 Strong Money Management: A successful entrepreneur needs to utilize his various
resources including money and other finances, wisely as it will take time for his business
to get successful and make profits. Therefore, a successful entrepreneur needs to possess
strong money management skills. As the future of the entrepreneurs is uncertain,
therefore they needs to keep finances for the worst situations and emergencies.
 Right connections and Network: In order to become successful, entrepreneurs needs the
expert advice from the more experiences people and other networks. They need the
personnel to carry out marketing and other operations while they focus on expanding their
business.
 Exit preparedness: Not all entrepreneurs get successful in their entrepreneurial ventures
and not all entrepreneurial businesses are successful. Therefore, a successful entrepreneur
is one who is always prepared for the worst and has the ability to quit the failing business
and start something new and innovative (Wasson, 2017).
D3: Bill Gates is the one of the most successful entrepreneurs and is the most successful
college dropout with a net worth of around $84.5 billion and is considered the richest person
on this planet earth. There are certain characteristics of the Bill Gates that differentiates him
from other and makes him the most successful person. He has a unique characteristic trait of
far sightedness since childhood as he used to constantly remind his teachers that he would be
a millionaire by 30. Bill Gates is very competitive by nature. In addition to this, he possesses
time management and prioritization skills which is very important in order to become a
successful entrepreneur. He manages his time very wisely. His firm belief in his ideas made
him what he is today. He is a smart worker who does his tasks smartly without showing off to
others. It is his daring and risk taking personality that made him a successful entrepreneur
(Wasson, 2017).
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P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial
motivation and mind-set.
There are various characteristic traits and skills of entrepreneurs that make them successful
and differentiate them from others. These skills and traits generally include determination,
passion, motivation, risk taking ability, management skills, creativity and idea generation etc.
A successful entrepreneur needs to be competitive so as to bring new and fresh ideas in the
market. They do the things differently those results in the creation and development of new
products and improved services. They do not work for making money. Instead they work for
realizing their ideas and converting them into reality so as to bring change in the society.
Entrepreneurial personality and entrepreneurial motivation and mind-set are highly inter-
related. It is the personality as well as the mind-set of the successful entrepreneur that makes
them totally different from the others. Following are the personality trait aspects affecting the
motivation and mind-set of entrepreneurs:
Neuroticism: These are those people who don’t have emotional balance in their nature. They
usually suffer from problems like depression and view things and opportunities negatively.
These characteristics need to be controlled so as to become a successful entrepreneur as
mental peace and positivity in ideas is very important in order to become a successful
entrepreneur. A successful entrepreneur should have the knowledge how to control stressful
situations at work and maintain balance in professional and personal lives.
Extraversion: Extraversion is a very important characteristic trait that must be possessed by
the entrepreneur as they need to make connections and strong relations with others. For an
entrepreneur building positive and strong relations with the various stakeholders is very
important. They need to be extrovert by nature in order to get work done by others like
getting funds from the banks, employees for carrying out business operations etc (Hessinger,
2015).
Agreeableness: Agreeableness is yet another important characteristic trait of the
entrepreneurial motivation and mind-set. It refers to the nature and attitude of the
entrepreneur towards his employees and others such as supporting and helping nature,
forgiving, trusting etc. An entrepreneur should have supporting and helping attitude to get
work done by employees and build strong and healthy relations with them. This nature of
entrepreneurs motivates the employees to perform even better.
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Openness: An entrepreneur needs to be open-minded in order to become successful in his
future endeavours. He should have the risk taking ability so as to experiment new ideas
through innovation and creativity. The elements required to become open-minded are
innovativeness, curiosity and imaginative thinking. In order to become innovative and
imaginative, proper motivation is very important.
Conscientiousness: The ability of the entrepreneur to work hard even under stressful and
difficult situations is referred to as conscientiousness. An entrepreneur needs to be able to
finish tasks on time and complete them so as to become competitive and also must have
organizing and management skills (Hessinger, 2015).
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LO4: Examine the different environments that foster or hinder entrepreneurship.
P7. Examine, using relevant examples, how background and experience can hinder or
foster entrepreneurship.
M4: The background and the past experiences have a great impact on the entrepreneurial
skills and mind-set. Every entrepreneur takes a different approach towards the business and
their way of doing business and managing tasks are different. They also make decisions in
their own ways and these all traits and characteristics are the outcomes of their past
experiences and their background since childhood. The personality, behaviour and attitude of
the entrepreneurs is made up out of the experiences gained throughout the lives by the
entrepreneurs and their background, their family etc. These all influences the entrepreneurial
skills. The education given to the individual and the atmosphere and surroundings where an
individual have been brought up have a great impact on the entrepreneurship skills and
characteristics. In order to become successful, the entrepreneur uses the knowledge as well as
the skills that he has acquired from the past life experiences and the background. However,
there are certain characteristics that have been inherited in the nature of the entrepreneurs
since birth like innovativeness and creativity. The risk taking abilities are also acquired by the
entrepreneurs from their past experiences which makes him successful as well as competitive
and confident. The nature, attitude and behaviour of the entrepreneur is gained from the
friends, family and relatives. The same can be understood better by considering the examples
of following entrepreneurs:
D4: Richard Branson, one of the most successful entrepreneurs. He had gained the abilities to
take risks in life and businesses to become successful from his past life experiences which
made him confident enough. His past life challenges made him accept the opportunities and
challenges of life so as to become one of the most successful entrepreneurs of the world
(Kimm, 2015).
In spite of all this, there are few negative traits of personality of entrepreneurs which hinders
their growth. These traits include characteristics like multitasking. In order to become
successful, an entrepreneur needs to focus on one thing at a time and utilize his energy on one
task as multitasking leads to the utilization of the mind in several tasks at a single time which
in turn leads to failure. Also, the habit of doing everything perfectly also leads to failure
sometimes. Also the huge success makes some entrepreneurs blind as they don’t see the real
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world after getting success. A perfect example of this is CEO of BP, Tony Hayward
(Zwilling, 2013).
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Conclusion
Thus, in the following assignment, we have successfully discussed the various
entrepreneurial ventures according to their typology with differences and similarities. The
importance of small businesses as well as medium and large businesses for the economic
development has been discussed in the assignment. In addition to this, the various
characteristic traits and personality skills of the entrepreneurs have also been focussed upon
in the above report. We have also discussed how experiences and past experiences impact the
entrepreneur and the various characteristics of entrepreneurial mind-set.
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References
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