Entrepreneurship and Small Business Research Review

The provided document is a review of several research papers on entrepreneurship and small business. It includes studies on business performance, entrepreneurial motivations, family involvement in small firms, innovation, and the importance of small businesses in local economies. The research also touches upon the concept of micro vs small businesses and provides statistics on UK small business statistics and GDP per capita.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different types of entrepreneurial ventures and its related typologies.................................1
P2: Similarities and difference between entrepreneurial ventures..............................................3
TASK 2............................................................................................................................................5
P3: Assess and interpret how small and micro business impact on economy............................5
P4 Small firms and start-ups contribute to growth of social economy after 'Brexit'P4 Small
firms and start-ups contribute to growth of social economy after 'Brexit'..................................6
TASK 3............................................................................................................................................7
P5: Characteristics, traits and skills of entrepreneurs and differentiation with manager............7
P6 Entrepreneurial personality reflect entrepreneurial motivation & mindset...........................9
TASK 4..........................................................................................................................................10
P7 Examine background and experience can hinder or foster entrepreneurship......................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to a study of the process of establishing a new business by an
individual having a new and innovative ideas as well as an effective skills and knowledge that
gives separate identity in market. Such individual is called as an entrepreneur who get success
when their decisions and plans to meet market needs and requirements are something new and
innovative. The present assignment report is based on Joe Wood who decides to start an IT
business in order to facilitate merchants to get online payment facilities. The project includes
different kinds of ventures along their interrelation with different typologies. The project also
discusses the impact of Brexit on contribution of small firms towards social economy,
characteristics, traits and skills of entrepreneurs along with the background and experience that
can hinder or foster entrepreneurship.
TASK 1
P1: Different types of entrepreneurial ventures and its related typologies
An entrepreneur is an individual who have certain skills and knowledge along with a new
and innovative ideas to meet the needs and requirements of people in more effective and efficient
manner. The prime objective of entrepreneur behind starting a new business venture is to earn
huge profits. There are different types of ventures exists in competitive market which are giving
tough competitors with each other in order to fulfil the market needs and demands (Blackburn,
Hart and Wainwright, 2013).
Types of entrepreneurs:
Serial entrepreneurs: It is such kind of entrepreneur who came into market with new
ideas and start-up the business and later on allot responsibilities of new business to someone else
and further move on to a new idea and venture.
Social entrepreneurs: These kind of entrepreneur came into market with the purpose of
identifying issues and problems of society and nation and accordingly put their maximum efforts
in resolving issues with their effective skills and knowledge. This can be possible through bring
standard quality products so as to maximise their healthy lifestyle (Carsrud and Brännback,
2011).
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Female entrepreneurs: These types of entrepreneur are women which are having an
appropriate skills and knowledge about the process of starting and running business more
successfully. They form an entrepreneurial venture with the purpose of earning their livelihood.
Entrepreneurial ventures: These are the firms which came into existence with the
purpose of gaining profits through grabbing marketing opportunities with their new and
innovative ideas. It gets adequate support from government as well due to their maximum
contribution towards economy of nation.
Types of Entrepreneurial venture:
Small business entrepreneurship: Such entrepreneurial venture started by a person with
an objective of meeting their livelihood needs and requirements. For this, they comes with a new
idea while observing others regarding the process of selling products and services in the market.
Example of such entrepreneurship is Grocery stores, travel agents, plumber and many more
(Chrisman and et. al., 2012).
Scalable start-up's entrepreneurship: These are the enterprises which are operated at
medium level due to which high amount of resources are required to invest in running business
more successful. An entrepreneur of such business have high aims and objectives as compared
with other ventures. It gets maximum support from the members having specialised skills and
knowledge.
Social entrepreneurship: These are the firms which are mainly emphasis on maximising
the interest level of community and nation through increasing standard of people living in nation.
For this, it conducts research in order to identify the issues and problems facing by society and
implement corrective steps to prevent such issues accordingly.
Large scale entrepreneurship: These type of business venture is operated at big level
due to which huge amount of capital and manpower are required to operated several business
functions more effectively. It functions in different locations by opening new outlets due to
which it captures large market share.
Relationship of venture with its typologies:
Lifestyle ventures: This business venture is established with the objective of generating
money to maintain their livelihood. It requires specific skills and knowledge about the process
of delivering goods and services to the customers. Their main motive is limited as they are
expected from their business to improve their livelihood (Desai, 2013).
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Managed growth ventures: These are the ventures which came into market with new and
innovative ideas in order to meet market needs and requirements. It always tried to achieve
growth by developing its existing products and services on regular basis.
P2: Similarities and difference between entrepreneurial ventures
Entrepreneurial ventures including small, social, scalable start-up's and large which are
operated its business functions to achieve their own goals and objectives. Every enterprises
executed its activities in different way due to having different nature and size (Drucker, 2014).
Here are the some similarities and differences among such entrepreneurial ventures which are
discussed as under:
Businesses Similarities Differences
Small and social
entrepreneurial ventures
Such types of ventures
required limited resources due
to operating its business
activities at small level. For
this, members having
specialised skills and abilities
are working in order to delver
products and services to
people in an appropriate
manner.
Entrepreneur has new and
innovative ideas which support
entrepreneurial ventures in
increasing their sales figures
and sustain its position for
longer period of time.
Small scale ventures came into
market with an objective of
earning their livelihood.
Social entrepreneurial ventures
are established for the welfare
of society by providing quality
products and services at an
affordable prices. Thus, it gets
maximum support by
government as well by giving
relaxation in registration
procedures.
Scalable start-up's and large
entrepreneurial venture
Such types of ventures are
operated at large level due to
which their desired goals and
objectives are higher. They are
Large entrepreneurial business
requires huge amount of
resources to conduct their
business activities in more
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operating in different locations
by opening new stores.
Large and scalable
entrepreneurial ventures
capture large market share
through engaging in selling
wide range of products.
effective and efficient manner.
While, scalable start-up's didn't
required huge amount of
resources as human capital,
funds etc.
Lifestyles and serial venture These the the business
ventures which are having
number of new and innovative
ideas to start a new venture but
did not give maximum efforts
in operating business due to
having limited aim and
objective of business.
These entrepreneurial ventures
are enter into market with the
purpose of earning their
livelihood.
Lifestyle entrepreneurial
venture enters into market to
fulfil their desired and needs in
order to enhance their lifestyle.
Serial enterprises enter into
market with new ideas and
concepts to meet customer
needs and requirements and
allocate capable persons to run
their business in market.
Male and female
entrepreneurial venture
Both male and female
entrepreneur are hard working
on the basis of which they
achieve growth and success in
market.
Both entrepreneur aim is to
utilise skills and capabilities in
order to achieve appropriate
results from business.
Male entrepreneur are mainly
focuses on expanding its
business operations to a large
scale so as to earn huge
income. It owned and operated
by men.
Female entrepreneur is an
enterprise owned and managed
by women at small level to
earn their livelihood.
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TASK 2
P3: Assess and interpret how small and micro business impact on economy
There are number of ventures exist in UK which are operating its business operations at
small, micro and medium level. They are operated according to their size, scope and objectives.
It contributes maximum towards the growth and development of economy in form of generating
huge employment opportunities, payment of huge taxes, fulfilling the needs and requirements of
society etc. Because of this, they get adequate support from the UK government in form of
giving relaxation to them in the registration of company, raising of funds etc.
Small and Micro businesses contribution in growth of UK
Particular Number of Employees Assets Total Annual Sales
Micro-Enterprises <10 ≤ £2 m ≤ £2 m
Small Enterprises <50 ≤ £10 m ≤ £10 m
Medium sized
Enterprises.
<250 ≤ £50 m ≤ £43 m
Statistical data defining affect of SME on UK:
 In UK, there are estimated 5.7 million small firms as in 2017 (UK Small Business
Statistics, 2017).
 Approx. 99% of the business of UK depend on such types of ventures in terms of
generating huge employment opportunities.
 Micro business holds more than 96% market share of UK which is approx. 5.4 million
this type of venture are established. The entrepreneurial firm provides around 5.4 million
employment opportunities which indirectly support the individuals of UK in maximising
their standard of living.
 Large sized organisation contribute less towards the economy of UK. It has been
identified that such type of business contribute only 0.1% in UK which is 40% of job
creation in market.
Consequently, large enterprises gives over half of total employment creation in United
Kingdom to expand work open doors for individuals to earn money for supporting their
expectations for everyday comforts. Other than this, large association give diverse assortment of
items and services to individuals to satisfy their requirements (George and Bock, 2011).
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Different benefits that small and start-ups companies have on market conditions of UK
Employment generation: In UK, there are substantial number of small firms and new
companies which assist government to develop condition of country by expanding work
opportunities ton the general public. Individuals have work opportunities to earn their livelihood.
In the middle of the time of 2010 to 2015, UK business took an ascent where relatively 1.8
million residents got employment in different small and medium associations. In this way, it
brings improvement on the situation of state of nation developed of condition of nation.
Infrastructure development: It is another advantage that small sized firms firms and new
businesses have on development and enhancement of monetary condition of country. This
assistance government to have adequate measure of assessment which are utilized by them to
develop infrastructure of UK that are streets, school, bridges and different things prompting
upliftment of the general public all in all (Grimaldi and et. al., 2011).
Effect of SME's on economy of UK:
Local Impact: Small and medium undertakings have solid effect on upgrading financial
condition of nation which is because of rising in employment generation. Therefore, individuals
gets chances of maximising their livelihood which result in enhancement of community.
Regional impact: It is another effect of SME's which fulfilled the needs and prerequisites
of individuals, as they give distinctive items and services.
National Impact: Small and medium undertakings have chance to reach target market
and client base by growing their outlets in various nations. Small enterprises impacts
emphatically on country as they gives chance to the resident to fulfil their budgetary needs,
acknowledges advancement and furthermore create job opportunity in the nation. This enhances
monetary status of country.
P4 Small firms and start-ups contribute to growth of social economy after 'Brexit'P4 Small firms
and start-ups contribute to growth of social economy after 'Brexit'
Brexit is strategy which characterize United Kingdom withdrawal from European Union.
In 2016, ballot procedure was led by government to collect views and opinions of public. After
which vast number of individuals voted against Europe and for UK. After that, Brexit
government impacts from business and its per capita income of nation was diminished. In this
way, nations began getting to be autonomous which assist authorities with functioning and made
strategies without getting any interruptions from others (Jones and Rowley, 2011).
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In UK, after Brexit government advance small and new companies by giving them
diverse advantages that are making adaptable approaches and guidelines for them. This assist an
entrepreneur to have adequate measure of assets to consolidate and set up outlet in market to
convey suitable items and services to individuals. These organizations even expands job
opportunities and support authorities to drop down poverty of UK. Due to this, it contributes
maximum in the growth and development of social economy of UK. It can be further explained
as under:
Infrastructure development: Government of UK have set up different tax collection
policies which are helping with improving framework of the nation. Through perfect utilizes of
income through taxation, authorities can improve condition of country by making proper
advancement of street, scaffolds, school and different offices for security of public.
Enhancement in social security: The small sized and new businesses maintain the
livelihood of people through making them more capable to meet their personal needs and
requirements. Providing income stability to then even after death, retirement and disability
conditions (Kirzner, 2015).
Economic and Social Development: Small and new businesses are financial powerhouse
of nation. These association help government of UK to increase their treasury by paying huge
taxes and generation of huge employment opportunities.
Increment in per capita income: This is another benefit which are received by the
economy of UK in form of raising job opportunities for the skilled and qualified people. It
increases their livelihood through providing them financial support. In the time of 2017, per
capita income of workers are around 27854.99 Pound from 1960 to till 2017. In UK, the last
recorded GDP is close about 42514.99 Pound and it is equal to 337% of world's normal.
Subsequently, government can drop down destitution rate of UK to enhance states of country.
Along this, individuals have satisfactory job opportunities which assist them with generating
money to maintain their livelihood.
TASK 3
P5: Characteristics, traits and skills of entrepreneurs and differentiation with manager
Entrepreneur establishes a new venture with having new ideas and concepts which drives their
business to achieve growth and success within shorter period of time. For this, it is important for
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an entrepreneur to have an adequate skills, traits which can differentiate them with the business
managers.
There are two successful entrepreneur such as James Dyson and Richard Branson who are
having enough skills and knowledge about operating business functions more effectively. The
traits and qualities that they are attained are given as under:
James Dyson and Richard Branson have an appropriate knowledge and understanding related
with management theories and concepts which support them in framing organisational objectives
and goals. In addition with this, they are much capable to design system which brings profitable
outcomes to company.
Both such entrepreneurs are hard workers and have risk taking abilities due to which they can
easily compete with their rivals in market. They very well know about the actual needs and
requirements of people due to which they are able to deliver products and services accordingly.
James Dyson and Richard Branson have a proper knowledge about market situations which
enable them to grab competitive opportunities in market. They always tried to learn new things
from their experiences which further useful for the growth of business.
Both entrepreneurs did not hesitate while investing huge amount of funds as they believes in
their new ideas and concepts which in results brings more advantage to company.
Differentiation of characteristics of successful entrepreneurs with business manager:
Characteristics/Skills Entrepreneur Manager
Strategic Vision Entrepreneur have a clear vision
with their new ideas and concepts
due to which they tried maximum
efforts in achieving the same.
James Dyson has strong vision to
operate business functions more
effectively which in results
achieving sustainability and
profitability.
Manager is provided vision by
top personnel which help them
to formulate plans and manage
resources for business
activities to occur in successful
manner.
Communication An entrepreneur must required to Manager develop proper
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attained an effective
communication skills so that they
are more able to deal with their
employees as well investors more
effectively. For this, James
Dyson guides staff members to
perform allotted roles and
responsibilities through proper
communication.
communication channel which
brings difficulties among
employees to communicate
with the top authority directly.
Critical thinking Entrepreneur always develop new
thoughts and ideas which further
decided to implement in their
business operations. It increases
the possibility of achieving
growth and success in
competitive market.
Manager doesn't focus more
on developing new thoughts as
they follows the guidelines and
plans implemented by top
authority.
P6 Entrepreneurial personality reflect entrepreneurial motivation & mindset
An entrepreneur must have an effective traits and personality in order to make healthy
relation with the employees as well as targeted customers through executing business operations
in more effective and efficient manner. They always tried their maximum efforts in grabbing
competitive opportunities that will help their enterprise to move ahead than their rivals. It
requires to have specific skills and knowledge that an entrepreneur must attain to make their
business more successful. It can be further supported by following models:
Big Five Model of Personality: It is considered as an effective model which states the
necessary skills and traits that must attained by an entrepreneur to achieve success in their
business career (Martin, McNally and Kay, 2013).
Such trains and qualities are determined as under:
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Openness to experience: It includes six elements which should be present in a successful
entrepreneur. Such element consists of variety. Aesthetic, sensitivity, active imagination,
intellectual curiosity and attentiveness to the inner feelings. These all aspects need to be acquired
by an individual if wants to achieve success in their professional career. In addition with this, it
also required to be open minded which assist them to learn new thinks and deals with the
challenges more effectively.
Conscientiousness: It implies that an entrepreneur must be focuses towards its desired
goals and objectives. For this, they must required to make an effective plans to guide their
members to perform according to the company's goals and objectives. This increases the chances
of getting success by new business within shorter period of time.
Extraversion: It is another effective traits which drives an entrepreneur to achieve strong
brand position and goodwill for their business in competitive market. For this, an entrepreneur
must be energetic, assertive, talkative and socially responsible which can be possible through
offering quality products at an effective prices (Naudé, 2013).
Agreeableness: This is the traits which an entrepreneur required to have in order to
achieve success in their business career. It implies that an entrepreneur must be cooperate,
trustworthy and coordinate with employees in order to perform business functions more
effectively due to which the chances of achieving organisational goals within allotted time period
will be high.
Neuroticism: It is important for an entrepreneur to be more patient and calm while
dealing with certain situations. Such trait drives an entrepreneur to deal with complex situations
more effectively without showing anger, anxiety etc. It may bring negative impact on the
working behaviour of their members of entrepreneurial venture (Sarasvathy and Venkataraman,
2011).
TASK 4
P7 Examine background and experience can hinder or foster entrepreneurship
Entrepreneur skills and knowledge depend on its professional quality which they increase
from institutions. Family background of an individual is also impact on their working in direct
manner. Beside this, concepts and theories of management are applied by entrepreneur in order
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to design system effectively. There are some ways that effects on entrepreneurship process in a
direct manner.
Illustration 1: Source: Big five personality traits, 2018
Source: Big five personality traits, 2018 Family Background: It is identify as a main factor that effects on entrepreneur mind set
when they decide to run new business. In regards to entrepreneur, its family background
effects its decision making power towards how to run business in successful manner.
Richard Branson and James Dyson have belongs to business families. This supports both
the entrepreneur in accomplishing success and development in their organisation. Along
with this, they get useful counsel from previous experiences of their family members
(Storey, 2016). Education: It is another factor that effect on individual mind set and opinion towards
lunching a new product in new marketplace. An individual nature and behaviour depend
on its education. Beside this, an entrepreneur performing also impacted by their
knowledge and qualification. Richard Branson and James Dyson are two main successful
entrepreneur who have better knowledge and professional skills like work delegation,
effective communication skill and leadership which support them to manage all
resources in proper manner (Zott, Amit and Massa, 2011). Social Network: It is needed by each and every person or entrepreneur to have attractive
and extrovert personality which assist them in connecting with business persons and
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effects them towards its content. This is an important part of entrepreneur life which
contributes in equal basis in future growth. Richard Branson and James Dyson have
attractive personality that highly assist theme in order to persuade stakeholders for
financing in their provided proposals.
 Experience: Richard Branson and James Dyson have better education which impart in
increasing business knowledge and skill which is essential for organising accurate
business activities. Therefore, this support them in order to sustain and maintain
business's position and goodwill in marketplace by satisfying needs of customers. Beside
this, they even increase experience and knowledge from their family business which
support them to have appropriate knowledge and skills regarding various tactics to attract
more customers in an effective and easy manner (United GDP Per Capita, 2017).
CONCLUSION
It has been concluded from the above project report that there are different types of
entrepreneur which are engaged in various entrepreneurial ventures in order to achieve their own
goals and objectives within pre-determined time period. Entrepreneurial ventures includes small,
large, social entrepreneurial venture etc. which are interrelated with different typologies to
perform its business functions more effectively. For this, an entrepreneur must attained specific
skills and knowledge that could be better understand with the help of Big Five Model theory.
The experience and background of successful entrepreneurs also play an important role in
performing business activities and execution of an appropriate action plan.
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REFERENCES
Books and Journals
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Chrisman, J. J. and et. al., 2012. Family involvement, family influence, and family‐centered non‐
economic goals in small firms. Entrepreneurship theory and practice. 36(2). pp.267-
293.
Desai, V., 2013. The Dynamics of Entrepreneurship Development Management: Planning for
Future Sustainable Growth. Himalayan Books.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
George, G. and Bock, A. J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Grimaldi, R. and et. al., 2011. 30 years after Bayh–Dole: Reassessing academic
entrepreneurship. Research Policy. 40(8). pp.1045-1057.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1), pp.25-36.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Martin, B. C., McNally, J. J. and Kay, M. J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing. 28(2). pp.211-224.
Naudé, W., 2013. Entrepreneurship and economic development: Theory, evidence and policy.
Browser Download This Paper.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
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Aspects of Entrepreneurial personality.2017.[Online].Available
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5251.html>.
UK Small Business Statistics, 2017. [Online]. Available through: <https://www.fsb.org.uk/media-
centre/small-business-statistics>.
United GDP Per Capita, 2017. [Online]. Available through:
<https://tradingeconomics.com/united-kingdom/gdp-per-capita>
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