Entrepreneurship and Small Businesses

This document explores the concept of entrepreneurship and small businesses, including the different types of entrepreneurial ventures and their similarities and differences. It also discusses the impact of micro and small businesses on the economy and the characteristic traits of successful entrepreneurs. Find study material and solved assignments on entrepreneurship and small businesses at Desklib.

Entrepreneurship and
small businesses

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P2) Explain the similarities and difference between entrepreneurial ventures...........................5
M1) Investigate a diverse rage of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector.................................................................7
D1) critically evaluates the scope, development and growth of the entrepreneurial ventures ..7
TASK 2............................................................................................................................................8
P3) Interpret ans assess relevant data and statistics to illustrate how micro and small business
impact on the economy...............................................................................................................8
P4) Explain the importance of small business and business start-ups to growth the social
economy .....................................................................................................................................9
M2) Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics..........................................................................................10
D2) Critically examine how small businesses have an impact on different levels of the
economy (local, regional and national) and an international context.......................................10
TASK 3..........................................................................................................................................11
P5) Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................11
P6) Assess how aspects of the entrepreneurial aspects personality reflect entrepreneurial
motivation and mindset.............................................................................................................13
M3: Different Lines of Argument Relating to Entrepreneurial Characteristics .......................15
TASK 4..........................................................................................................................................15
P7) Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................15
M4: Link Between Entrepreneurial Characteristics and The Influence of Personal Background
and Experience to The Successful Entrepreneurs.....................................................................16
D3: Characteristics, Traits, Skills and Motivational Drivers of Successful Entrepreneurs......16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17
1

INTRODUCTION
Entrepreneurship means in which developing and implementing of new idea in business
to generate the revenue and it is also known as person who lead know how to lead the business in
order to become successful. Every entrepreneur personalities starts a business with small scale in
addition to achieve goals and objectives. Successful entrepreneur knows how to make product
with available resources which is fulfil the need or demand of the customer and makes the best
version to use of it. In this study, it is critical identification relationship between an entrepreneur
and different methodologies addressed with it. What are the strategies to motivates a leader in
addition to achieve their aims and goals. And it is importantly to know the part performed by
these little and small business for the organisation of economic system and whether there are
positive or negative result outcomes of these(Storey, 2016).
Founder of new enterprise is also known as entrepreneur, in this people come with new
discoveries or researches and try to make collaboration which is looking forward to generate
revenue or profit maximization.
MAIN BODY
TASK 1
P1) Examine different type of entrepreneurial venture and its relation with typology of
entrepreneurship
Entrepreneurial venture is the business that is managed and operates by the entrepreneurs.
They set the targets with the high returns and with the high level of risk involve. Entrepreneurs
willing to take risk on their income savings, career and spending time as well as capital on the
venture that which is an uncertain in nature. This makes entrepreneurs different from other
business holders who are running a exiting business with the similar products (Alvarez‐Garrido
and Dushnitsky, 2016). They created the venture with the generation of more revenue with the
greater sales and profit margin by making the accountable changes as per the needs and demand
of the customers. They develops or extracts new values that add and makes the positive changes
in the standard of living of the society. It refers to the ability to develop and organise the entity
with the future uncertainty and with that generates the revenue.
Types of entrepreneur ventures and its typologies
2

 Small business entrepreneurs: These are the business with the adequate amount of
resources and with the restricted capital and employees. And generated the revenue at the
time of operating the business in terms of partnership. It is the venture when a person
starts and runs their own business. They are not looking towards the large scale profits or
funding institues they use their own funds and savings on the enterprise. The business has
been followed some issues as like limited resources, lack of capital, minimum amount of
database and less expenditure to expand. They generally hires local employees and
family members. For examples local grocery stores, boutiques, consultants, parlours etc. Social entrepreneurs: Theses are the entrepreneurs who wants to solve the social
problems by providing them products and services as per the need and requirements of
the society (Audretsch and Link, 2019). Their main motive is to make the better place to
live throughout the globe and did not work with the aim of making big profits or wealth.
Instead this type of entrepreneurs tend to start the non-profit organisation or company
that dedicate them to work with the full potential towards the social cause. These
entrepreneurs has faced certain challenges by raising the funds in a adequate period of
time, decision making related to the investment of funds in right market and with right
peoples, development of business plan in order provide social welfare and generates
more funds. Hustler entrepreneur: This is refers to the people who are believes in to work hard and
put their maximum efforts are the hustler entrepreneurs (Burns and Dewhurst, 2016).
They generally starts with the small business and work with the full potential in order to
grow their business rather then the capital. They are motivated and want to do work with
the potential that takes them to achieve their objectives. They do not give up easily and
always ready to deal with challenges. Innovative entrepreneurs: Theses are the entrepreneurs who are come up with new,
creative and innovative idea. They take these ideas and develops them into the business
venture. They are tends to be very motivated and passionate people that works with the
aim of changing the way of living and providing the better way in order to increase the
standard of living. They looks for the ways of making their product and service different
form the existing products in the market place.
3

 Imitators entrepreneurs : This is refers to the entrepreneur who use others idea as
inspiration and work by improving them in a effective manner. They tend to make certain
better product and services, effective and more profitable. Imitators are the mixture of the
innovative and hustler entrepreneurs (Colombo and et. al., 2016). They are willing to
think creative in the existing idea and work hard to achieve their goals. They are having a
lots of self-confidence and determination. Furthermore they learn from others mistakes
and improves them while making their own business .
P2) Explain the similarities and difference between entrepreneurial ventures
There are various types of similarities and difference exist between the entrepreneurial
ventures as discussed below:
Basis Small business
entrepreneurs
Innovative entrepreneurs social entrepreneurs
Meaning These are the
entrepreneurs with the
adequate sources and
limited capital and
employees. They are not
seeking for the large scale
profits or venture funding.
They generally spends
there own savings as a
capital .
These are the one who
come up with the new,
creative and innovative
idea and develop them into
the business venture. They
are motivated and
passionate towards their
working in order to achieve
their goals.
These are the one who
works to solve the
problems of the society by
providing them product
and services as per the
requirements of the
society.
Scale This business operates in a
small scale and worked to
generates the limited
amount of revenue and
profit margin. They also
invest the limited capital as
they work at a small scale
Innovative entrepreneur are
generally starts with the
large scale enterprise
(Eddleston, and et. al.,
2016). As they come up
with the creativeness ans
inventions. For that they
invest in the large amount
Theses entrepreneurs
generally operates at a
medium level. As they are
not working for the
making profit. So they did
not invest at a large scale
nor in a small scale
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of capital by own and also
ask investors to invest in
their business.
Purpose They worked with the aim
to be stable in the market
by making the better sales
and profit. They are most
likely to make the profit to
feed their family and
modest lifestyle.
They works with the aim of
changing the way of living
and providing the better
way in order to increase the
standard of living of the
society. And make their
products and services
stands different in the
market place
their purpose is to fulfil
the basic requirements of
the society in order to
solve their problems and
for the social welfare, they
are tend to worked as the
non-profit organisations.
And having the aim for
making the world a better
place to live.
Similarities:
Basis Small business entrepreneurs Innovative entrepreneurs Social entrepreneurs
Meeting the
needs
This business operates in
order to fulfil the
requirements and needs of
the customers. As they
generally operates in the
goods which are needed by
the consumer in their daily
lifestyle
In order to meet the needs
and demand of the society.
These entrepreneurs come
up with the creative and
innovative idea. With the
aim of serving the society
and to meet their demands
They have worked for
the development and
improvement in the
society that will satisfy
the need and
requirements of the
people
Upliftment
of lifestyle
By making the available of
the goods and services at a
right place and at a right
time in hand of the
customers. That is developed
the living ability of the the
They also plays a
important role in the
upliftment of lifestyle of
the society. As by
improving the products
and services of the
These are the one who
has worked to develop
the livelihood of the
society by providing
them better services in
order to makes their
5

local peoples existing market. And
provides new ways to the
living standards
lives comfortable.
(Eijdenberg and et. al.,
2020)
Economy
growth
There are number of small
business who worked to gain
the profit in a effective
manner and also generated
the employment
opportunities for the local
people. That contributes in
the circulation of money in
the economy and increase
the living of standard
They contributes in the
generation of the
employment opportunities
and tend to starts the
business with aim of
earning profits on a large
scale and aim of exploring
the business that provides
the growth to the
economy.
As there aim is to
make the world a
better place, and they
work for the social
welfare that decreases
the illiteracy rate,
number of people
below poverty line etc.
that contributes in the
growth of the
economy.
M1) Investigate a diverse rage of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector
Entrepreneurial ventures is the entity which is managed by the entrepreneurs. With that
they achieve their goals and objectives by transforming their idea into a business ventures.
Entrepreneurs in the public sector take the desired action in the state or local government, public
institutes and enterprises. With the aim to initiate the change in the organisation by adopting the
innovation. This is not include the authority to take the decision by own as they have to take final
decision after the consideration of government (Gelaidan and Abdullateef, 2017). And on the
other entrepreneurs in the corporate sector are one who come with their new idea and later
convert them into the business in which government do not play any role they are free to take
their own decisions. Generates employment opportunities and provide support in to the extension
of the economy.
D1) critically evaluates the scope, development and growth of the entrepreneurial ventures
From the above analysis it has been evaluated that entrepreneurial ventures has a wide
scope as it boost the economy by generating the employment opportunities and increasing the
6

standard of living. In the context to the development its effectively satisfies the need of the
customers that increases their profit margin and value. And in relation to the growth it can
explore their business by increase the geographical market area.
TASK 2
P3) Interpret ans assess relevant data and statistics to illustrate how micro and small business
impact on the economy
The small and micro business has work to develop the positive impact on the contribution
in the economy of the country with that improves the infrastructure and standard of living of the
society. Further classification is discussed below :
Small businesses : This is the business that is operates by the maximum 50 number of
employees and total turnover generated by the all small business is within the 5million. Managed
and operates its business with the limited capital and resources. For example bakery, grocery
shops, boutiques etc.
Micro businesses: these are the businesses that cover the locality of the market and fulfil
the demands within their local area. And get their work done by maximum 15 employees. Such
as restaurants, cafes, ice-cream parlour etc. there are many micro businesses in UK that are
worked with the full potential in order to satisfy the demand of the consumers(Kuhn. and et. al.,
2016).
7

As per the above graph it has been analyse that small business with the comparison to the
medium and large scale of business. With this this small business provides the employment to
48% of the people and have generated 33% of annual turnover. While medium business provides
only 12% of employment and contributes 14% annual turnover that reflects that this business is
minimum in the number and contributes less in the development of the economy. Furthermore it
has been seen that large scale business provides 40% of employments and 53% annual turnover
and its covered 0.1% of business mean while medium scale covered 0.6% of business and small
scale covered 99.3%. this has been evaluated that small scale business not only provides the
maximum contribution in the employments opportunities but also covered the largest area in the
market place. That have an positive impact and the highest contribution in the economy of UK.
Small business impacts the economy in terms of providing the innovation, improving
standard of living, availability of variety of products and services, employment opportunists et.
They work hard to achieve their desired goals and objectives(Yan and Yan 2016).
P4) Explain the importance of small business and business start-ups to growth the social
economy
Social economy is term that organise traditionally which is refers to the set of
associations foundations and social enterprise. The social economy get developed by the various
8

activities of the small business and start ups. These are the important part of the country as it
provides the largest amount of contribution in the stability and GDP of the nation. There are the
importance of the small business and start-ups which helps in the growth of the economy are
discussed below as: Innovation: This is the main driving force behind the development of the economy and
increment in productiveness. Demand and needs of the customers are improved with the
changing time and environment(Ratten, V., 2016). With that company need to
improvised and have to do the changes by bringing innovation in the product and
services. in addition to this competition between the companies increases in order to
provide the better services and products to attain more profit margin and market share.
With this innovation is induce for the flexible access. Competitive environment into the economic system: Small businesses and start-ups are
most dynamic economic organisations in the market. as because of their small size there
are flexible and change according to the situations. Thus they provides the additional
dynamic and competitiveness in to the market (Wallmeroth, Wirtz and Groh, 2018). This
means its encourages others firms to adopt the changes and innovation in their techniques
, products and services. In order to provide better to the society. Employments opportunities: Start-ups and small scale business contributes large portion
in the job opportunities and in the economic growth of the company. As much the people
get started doing work that supports the increases in literacy rate and standard of living
which have a positive impact on the national development. And human resource is also
required by the entities as they will perform the different operations to get work done
effectively and efficiently
 Bringing the proactive approach into the society: Start-ups and small business brings the
innovations and creativity in the market that brings a value and new mind set in the
society. They started adopting a proactive approach that means now business are creating
and controlling the situations in a effective manner rather than just responding to it. This
supports in to the satisfying the needs and wants of the consumer in a effective way.
9

M2) Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics
Small, medium and large scale businesses have their unalike contribution to the economy.
Small scale has contributed large portion of employment and number of businesses in the
economy . While on the other side large scale contributes maximum annual turnover and
medium is offering minimum level in all the aspects. This reflects that small size businesses play
a major role in the development of the nation and to its GDP. And this stands as a essential
aspects in the whole economic system(Scarborough, 2016).
D2) Critically examine how small businesses have an impact on different levels of the economy
(local, regional and national) and an international context.
From the above study this has been concluded that small business influence the economy
in an extensive way. In context to the local it has impact on the standard of living as they works
over the demands and need of the local people. Further it also impacts the regional economy by
increasing and providing the employments to people that increase the willingness of the people.
And at a national level it impacts by making the economic sustainable and by contributing into
the GDP of the nation.
TASK 3
P5) Determine the characteristic traits and skills of successful entrepreneurs and differentiate
with business managers.
Entrepreneurs defined as to open a new business, which they are able to take risk . And view as
new founder with some great ideas, innovations, enterprises and methods, product and services.
There are some professionals in the corporation that view as an entrepreneur who follow some
traits and looking forward as an successful person(Walsh and Cunningham, 2016).
Entrepreneur is personality who has run their business to satisfy the customer needs and fulfil
their demand and achieve get profit maximization and increase their expansion of business.
They are very loyal towards the mission and vision. It also involve the different activities, new
innovation and creation for the enterprise and motivating the employees. They also are able to
take risk. And the name are peter Jones and simon Cowell.
10

Peter Jones is famous entrepreneur of UK and he also known for his business and TV
episodes monster den. He has different area of focuses corporation like in smart devices and
business enterprises.
Simon Cowell is famous for his television show which is American idol. He is working
with EMI publishing in this company his father was in executive position. He totally away from
his own records label and E&S music. Cowell open open a new company along with his sister
which name is syco.
Skills that are observed in both entrepreneur personalities are given below:
Enthusiastic : Entrepreneur has successful because they work on its excellence, and
they passionate about work because they love what they want to do. And they are hungry to
adopt and learn the things. They put more efforts in business to run in significant manner to
become a successful. That is overwhelming about progress to see their workers which shows the
good money received. They are always do research and findings for their project to get more
better result and grab the result(Rauch and Hulsink, 2015).
Dedicated : entrepreneur is come first to the office and last to go. And they also come in
office by during the off day, that shows the results will come to the expectation. they always put
the effort in their work. Even though they are not in office.
Characteristics of entrepreneur:
Powerful skills for people: outstanding entrepreneurs have excellent communication.
Which attracts the people and they know how to convince or influence the consumer for their
product. They have phenomenal power to born enthusiasm in the employees about work, once
employee get passionate business will increase with in a certain time of period. Entrepreneur also
praises the employee and high lighten the path. Take the examples of other personalities to
motivate and take advantage from them.
Giving rare examples: entrepreneurs personality always take the example of failure.
And tell whatever they have got failed in exams and particular subject but not in life. They
observes the quality and the intension of the person and then specify. This thing create new
energy in the employee.
Traits:
11

Inventive: creativity is the process to find the solution of unrelated things and get ready
to implement. There are combination of various things but entrepreneur come up with solution.
These personalities are rebuild the product with the solution for new market.
Risk taker: This thing plays a very massive role in the enterprise. Competition in market
increases in certain time period. But entrepreneur have confidence they can give better results
from others. They know how to deal with difficulties. This thing put the light on the success of
the organisation.
Discipline: dedication, willpower, work hard that matters but continuity matter a lot.
Entrepreneurs are very disciplined about work and they work in continuation form to accomplish
their aim.
Differentiate between entrepreneur and business manager:
Basis Entrepreneur Businesses manager
Focal point Successful increases the
standard of living and generate
the revenue.
Managers are focus on the
business. And they know how
to manage it.
status They are founder of the
corporation.
They are just employee's in the
organisation.
Motivation factor Take out the achievements of
the business through the
profits is motivation factor for
entrepreneur.
Organisation is running
smoothly that is the motivation
factor of the enterprise
manager.
P6) Assess how aspects of entrepreneurial aspects personality reflect entrepreneurial motivation
and mindset
Motivation : It includes the willingness, dedication, for aims. It simply comes from
motive which require satisfaction. This factor include the positive vibes to do some work with
full of energy. Motivation encourages the person to give the better performance. And helps to
achieving goals and objectives. It is a psychological needs which require after certain period of
time, needs for satisfaction and they able to do more work.
It is a inner feeling to keep energetic.
Person looks to fulfil his unsatisfying needs with the help of motivation.
12

Motivation can take from anything either its a video, human being or any kind of object.
Mindset: It is also related to philosophy of life, and it is a set of assumption. In this
person have to focus for particular work for their results and achievements which they have
want. It is a form of belief and attitude. These forms lead to particular action and those actions
which have experience. And experience gives new mindset to process the information.
Entrepreneurial defined as taking risk related to finance in terms of profit. The aspects of
these famous personality can be reflected as ocean model(Belz and Binder, 2017).
Ocean model: this model represents the five types of personality traits which helps to
identify the responsibilities which given to individual person. And the types in this model are:
Openness: peter Jones and Cowell they both are marked in higher rank position in this
aspects. It shows the innovation level of the person. what they did to make the product more
reliable and fulfil the need of consumer. It gives the various product and services, which is done
by the entrepreneurs in sophisticated way.
Conscientiousness: it leads to the entrepreneur how to manage and organise the work
load which is given to them. The way of work addressed by Jones and simon is very immaculate
and they also expect from the worker the same thing.
13

Extraversion: these both personalities are extrovert. They diversify themselves to grab
the prudence of knowledge and every time they try to connect with people to gain the ideas,
thoughts, views about the enterprise.
Agreeableness: This term shows the person is trustworthy or not it takes up some time
to get in touch with someone.
Neuroticism: it includes the issues of the person emotional stability, palpitation, anxiety
depression. Both entrepreneurs are marked low in this aspects both are helpful and easy to
communicate.
M3: Different Lines of Entrepreneurial Characteristics
Entrepreneurship is a complicated job, owner of the organisation have to put more efforts for the
growth of the firm and well acquired and successful. Entrepreneurship also take high amount of
risk which is not seen entrepreneur, they also look forward for rewards in addition to achieve
goal like, motivation, dedication, passion, innovative. Entrepreneur personality takes up the
administration, corporation and identify the involvement of risk in the enterprise. To work on it
there are common necessary qualities which is required for excellence to become success like
risk of the administration, great corporation skills, well performed and confident, in the context
of growth and development.
TASK 4
P7) Examine background and experience of entrepreneurship
Previous aspects with experiences both have positive as well as foster effect on an respective.
It can build a person either destroy it. In this text discuss about successful entrepreneurs chosen,
previous aspect and experience played a optimistic role. It assist these entrepreneurs in selecting
and pick out the tract they feeling and work with conformity. Peter Jones and simon cowell they
know about themselves they are made for only business(Ahmad, 2015).
Peter Jones
Jones when he was 16 years old he started its business of computers of its own brand.
After that he is decide to sell his product to IBM. And his computer business got failed when he
was in his twenties. After than he opened bar inn Windsor based on the tom cruise film which
name was cocktail. In the summer of 2005 peter work together with Theo paphitis on dragon den
which was gift experience company red letters days from other fellow panellist Rachael enlaugh
14

under whose control it had collapsed. Peter never tired he tried a lot and created new innovative
idea with his past experience and become a successful entrepreneur.
Simon Cowell
Philip Cowell is a entertainment personality, businessman, manager of reality shows and
evidence enforcement. He has volunteer on Foreign TV and America got talent program.
Currently he is principle owner and Main higher officer of British corporation which name is
syco. He worked in mail room at EMI music publishing. After that he planned to open his own
entertainment company. When Cowell was 17 years old he decided to operate his own
entertainment company but due lack of resources or money he has stopped but after some time
he collapsed with his sister and put great efforts. And now he is successful
entrepreneur(Cumming and Zahra, 2016).
M4: Entrepreneurial Characteristics and The Influence of Personal Background and Experience
As looking forward here massive relationship between objectives feature by these
prospering businessman and the previous aspect earned by them. These forces are help top build
the characteristics like in case of Cowell belongs from broken family his parents divorced , when
Cowell was two year old this thing directs towards the relation of objectives such as brilliant he
knows how to deal with the the disapproval.
D3: Characteristics, Traits, Skills and Motivational Drivers
There are different characteristic, skills, traits, and motivational factor, which campaign
a excellent businessman in scene of peter Jones characteristics actuated him he had the powerful
background in financial terms and he wanted to live homelike living like his guardians given.
And he used his effective communication, skills and motivation for his success. And its traits
reason for his development and innovation and feedback receive from others. This thing defines
as a successful personalities. This factor encourages more to do work. The motivational drivers
of peter Jones is its family. Which motivated him to study hard to become a successful person.
CONCLUSION
It has been overall data which is mention above t analysis that businessperson ventures
and the nominal business has the massive effect on the development, nation economic system.
They improved the different product and services in terms of satisfaction demand of consumer
15

and increases living standards of the society. And make other certain changes with the more
perfection and excellence so that it offers the new sentiments to the market. In this entrepreneurs
also offering the jobs in higher amount of people. There are several types of entrepreneurs
which works for the improvement of the areas in their own unique ways. In addition to this there
are various types or aspirations that motivates, hinder and foster the mindset of the entrepreneurs
to do something new.
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(Chernopyatov and et .al., 2018.) (Jones and et .al., 2018.) (Ratten, Dana and
Ramadani, 2017) (Kuratko and Morris, 2018.) (Farhat and et .al., 2018.) (Turner and
Gianiodis, 2018.) (Jones and et .al., 2018.) (Ferreira, Fernandes and Ratten, 2017.)
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