Entrepreneurship and Small Business Management

This assignment is a detailed study guide on entrepreneurship and small business management. It covers various topics such as the psychology of entrepreneurship, economic impact of Brexit, principles of enterprise and small business, innovation and entrepreneurship, and more. The study guide also includes biographies of successful entrepreneurs like Richard Branson and Elon Musk, highlighting their skills and success stories. It provides a comprehensive overview of entrepreneurship and small business management, making it an ideal resource for students looking to learn about these topics.

ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

CONTENTS
INTRODUCTION...................................................................................................................................1
TASK – 1.................................................................................................................................................1
P1 Different types of entrepreneurial ventures and their relations with the typology of
entrepreneurship...................................................................................................................................1
P2. Connections and dissimilarities amid different entrepreneurial ventures.....................................2
TASK – 2.................................................................................................................................................5
P3 Illustrating how micro and small businesses is impacting the economy........................................5
P4 Importance of small businesses and business start-ups in the growth of the social economy after
‘Brexit’.................................................................................................................................................5
TASK – 3.................................................................................................................................................7
P5 Characteristics, traits and skills of two successful entrepreneurs...................................................7
P6 Aspects of the entrepreneurial personality reflecting entrepreneurial motivation and mind-set....8
TASK – 4...............................................................................................................................................10
P7 Examining how background as well as experience hinder or foster entrepreneurship................10
CONCLUSION......................................................................................................................................11
REFERENCES......................................................................................................................................12

INTRODUCTION
For the social as well as economic growth of the nation, entrepreneurship is one of the
basic element. It helps in bringing national development along with regional and local
development too. Even though the whole concept of entrepreneurship is seems quite guileless
but its working is very dynamic and complex in nature. Further, entrepreneurial capabilities
of each and every individual is different according to their experience in life and knowledge
being developed (Carter and Jones-Evans, 2012). Pertaining to this, the main aim of the
research report is to discuss the facets of entrepreneur as well as entrepreneurship in a
widespread way. As an entrepreneur partner and research executive of an IT business being
established by the successful entrepreneur “Joe Woods” the main role is to address the
graduates by giving lecture on the ways to become a successful entrepreneur. Consequently,
the research study will explore different business ventures which can be easily reached by the
entrepreneurs. Additionally, the writing will also analyse the impact of small business on the
economy of UK. The later of the paper will throw light on the mind-set of business persons
and will assess different environment that helps in nurturing and encumbering the progress of
entrepreneurship.
TASK – 1
P1 Different types of entrepreneurial ventures and their relations with the typology of
entrepreneurship
According to Ducker, the entrepreneurship process is regarded as the most inventive
approach of business and its activities to manage, organize and lead people within the firm to
attain the pre-determined objectives. Effective entrepreneurship brings forth positive
development as well as change for the firm. Thus, it can be said that overall activities of
entrepreneurs includes innovative way of development as well as enacting materials,
techniques and expansion of the whole process of production (Drucker, 2014). On contrary to
this, according to Kirzner, an entrepreneur is required to possess mental ability at the time of
operation so as to bring harmony and order. It takes into consideration the risks which are
hidden in the marketing and business activities. Further, Kirzner has also connected the term
‘entrepreneurship’ with creativeness and innovation, as it significantly contributes in the
sustainability as well as growth of the whole organization (Kirzner, 2015).
It is quite acknowledged fact that all present business and other vital sector are
dependent on the effective entrepreneurial skills of the people, as he is the only person who
creates a vision for the firm and by the time execute the same in a strategic and efficient
1

ways. Thus, evaluation of true entrepreneurship is not just confined to the walls of the firm
rather it has a contribution in the overall local and national economy as well (Scarborough
and Zimmerer, 2005). Various types of entrepreneurship are as follows:
 Social Entrepreneurship – This type of venture is mainly established with a sole aim
to develop products and services that helps in betterment and growth of the society
and its people. The main focus is on manufacturing those products that leads to
efficiency in the community and environment.
 Large Corporations – These ventures involves definite life cycle, as they obtain
success and growth by creating new products and services. Large corporations are
always exposed to competition and thus, become vital for them to shape their
merchandise respectively. They keep on changing their products and services as per
the business and environment trend and effective modification can be brought only
through resourceful entrepreneurs (Sain and Dhameja, 2008).
 Scalable Business Start-ups and Entrepreneurship (Macro-business) – The main aim
of this type of venture is to alter the whole persisting model. The main emphasis is on
the quality and innovative part of the business. Because of this, they comprise skilful
workers. Further, the main goal of such ventures is ‘scale’ that significantly specifies
the financial investment as well as venture capital funds for the purpose of growth.
 Entrepreneurship of Small Businesses (Micro-business) – Talking in relation with
UK, it has huge rate in the sprout of start-ups according to Shattner. All these start-
ups have a significant contribution in the overall employment in UK i.e. around 19.8
percent. In the last few years in United Kingdom some of the small business start-ups
such as consulting firms, internet café, supermarkets, stores and automobile retailers
were emerged considerably. They are being formed with few members (Longenecker,
Moore and Petty, 2000).
P2. Connections and dissimilarities amid different entrepreneurial ventures
Types of
ventures
Attribute of the venture Roles Goals
Large
corporations
The main feature of this
venture is to generate
profit as well as revenue
Large organizations want
to earn higher profits and
thus, the role being
obtained by them is quite
competitive. Concerning
The main aim of the
large corporations is
to accumulate large
amount of revenue as
well as profit by
2

this, these ventures
involves in the
manufacturing of high
quality merchandise so as
to attract large segment of
the customers (Hall, 2005)
becoming leaders
within the industry.
Further, these ventures
also desires to obtain
larger market share
Social
entrepreneurship
They are mainly
established for the
improvement of the
community and its people
These ventures produces
such products and services
that offers benefits to the
society, environment and
people
The major goal of
social
entrepreneurship is to
develop such products
and services that
offers benefits to the
society as well as to
its people. They also
desire to make
improvement in the
current situation of the
environment, living of
people and
community as a
whole.
Micro business
They are being formed
with few members and
minimum investment
(Storey, 2016)
The workspace in these
types of ventures are
relatively small in
comparison with the
macro business but these
micro business offers well-
organized ground for their
workers so that they can
gain knowledge about the
industry and develop
effectively. Because of
Micro business aspires
to generate higher
amount of profits
within the industry in
which they are
established
3

this, the main role being
played by these ventures is
empowering the
entrepreneur in proficient
entrepreneurship
Macro business
They are generally being
organized and managed by
large founders of big
businesses. Further, they
want to bring modification
within the industry with
large revenue and market
share.
Their main role is like a
captain and because of
this, they have better
comprehension of the
firm’s strengths and
weaknesses. These
ventures are successful
enough in acquiring larger
market share by
strategizing appropriate
market (Chaper and et.al,
2014)
The main objective of
macro-business is to
grow into leaders of
the market. They also
want to acquire larger
market segment.
Thus, from the above table it can be evaluated that wide spread dissimilarities exist
between social, large, macro and micro businesses. However, all these ventures have some or
the other similarities as well. All these entrepreneurship is regardless of their ownership
considers customer service as their chief accountability. In addition to this, all these ventures
are also open to recent trends as well as modifications in the technology and labour force.
Lastly, all offers equal growth opportunities to the employees (Scarborough and Zimmer,
2007).
4

TASK – 2
P3 Illustrating how micro and small businesses is impacting the economy
As conferred in the above part of the research report, start-ups or small businesses are
emerging significantly in UK. According to Shattner, there are more than 3500 start-ups in
United Kingdom in the year 2015 and 2016. Thus, the main reason behind this portent is the
economic and political condition of the nation, which is favouring the growth of these
ventures. He also suggested that small scale businesses are majorly contributing in the
economy of the nation, as there financial position is favoured by the country. The strong
economic condition of the country is mainly because of overall industry growth rate and
revenue turnover. In addition to this, it has been estimated that small businesses has given
employment opportunities to more than 27 million people all across the nation including male
and female. Consequently, it is quite vital to note here that the total growth of the business of
small scale in UK is increasing as compared to the large corporations (Shattner, 2017). As per
Anderson, the main reason behind this success is the institution of creativity and innovation
in the operational as well as strategic area in the small scale businesses.
Further Ducker also proclaims that significance of innovation and uniqueness in
business is very important for sustainability and growth and thus, small business have been
developed in UK by executing different innovative techniques in regards with acquisition of
market and business leadership. Thus, it can be attributed that small businesses are
considered as the major contributor of the business ideas in the nation and is also resulting in
overall economic growth of United Kingdom. Other than this, Parker also suggested that
small start-ups or the firms in the country are playing a major role in beating the difficulties
and challenges being faced by the country at the global recession phase (Lewis, 2013). There
are three main business sectors in UK which plays a crucial role on the growth of the
economy and these are wholesale-retail industry, hospitality industry and real-estate industry.
Start-ups businesses are taking place in all these three sectors all throughout the nation.
Therefore, it can be concluded that small businesses are significant part of core industries of
UK and are essential for the overall economic growth.
P4 Importance of small businesses and business start-ups in the growth of the social economy
after ‘Brexit’
Small businesses are playing a pivotal role in United Kingdom’s sustainability as well
as economic growth. Major part of the population of the nation is being employed by this
5

sector of the economy and thus, small businesses are considered as the great source of
employment generator. Because of such employment, the flow of cash within the economy
becomes very effective. Small start-ups which were quite successful are emerging rapidly and
opening doors for local as well as regional population of the nation (Anderson, 2017). With
this knowledge, it is quite evident that small start-ups are without any doubt act as a spine for
sustainability and growth of the UK’s economy.
Focusing in relation with the word “Brexit”, it is being derived from the word “British
exit”. In simple words, it explains the detachment amid European Union and Great Britain.
This vote happened in the year 2016 and ended with 51.9 percent vote favouring the
referendum. Wales as well as England elected to leave while Scotland and Northern Ireland
choses to stay in European Union. But, the negotiation process happened in relation with this
separation in the current year. Because of this vote, immediate impact on the economy of UK
was quite visible. The currency collapsed and was only 10 percent above the Euro. The rate
of inflation was increased by 1.8 percent (Begg and Mushövel, 2011). Further, many experts
were of the view that the nation will be affected adversely in short term because the foreign
trade will decrease and Britain will not be in a position to contribute to the budget of the
European Union. After “Brexit”, there will be lower level of employment in the UK
economy. It is quite known fact the small companies helps in increasing the economic growth
of the nation. After ‘Brexit’, the government of United Kingdom should help by creating new
businesses so as to revive the economy. For meeting out this objective, the government is
providing different options to support new entrepreneurs whose business is great and vital
(Begg and Mushövel, 2011). In the long run these small businesses will increase the
employment opportunities and the poverty will reduce significantly. Thus, social as well as
economic development will be observed in Great Britain.
6

TASK – 3
P5 Characteristics, traits and skills of two successful entrepreneurs
Talking in relation with the entrepreneurship, it is being referred as a concept exceeds
the mere limitation of the business management. In the current context, achieving success for
an entrepreneur is being reflected by his or her ability to surpass the conservative way of
initiating and managing a business and explore a new level where business along with
innovation go side by side. Furthermore, it is also vital for an entrepreneur to formulate such
ideas and strategies which are in accord with the altering business environment and must
execute only those business ideas in the strategies (Burns, 2011). Therefore, general skills as
well as ability is not enough to become an efficient entrepreneur rather it needs desire and
passion as well.
Taking an example of success entrepreneur Richard Branson, he is a co-founder of
Virgin group who controls more than 400 companies. At his early age he has an ambition to
become an entrepreneur and he started in his dream path by merely starting a small venture to
magazine and soon opened virgin record stores. With the passage of time, Richard became
the owner of the giant Virgin Atlantic Airline. There are numerous factors being asserted by
Richard that impacts an entrepreneur. He proclaims that taking risk is the most important
thing in life, being an entrepreneur each and every one should be ready to take risk. As per
him, it is the risk that opens up many opportunities for the business and personal growth as
well. Other than this, it is also vital for an entrepreneur to be adaptive in regards with every
situation and particularly when it is in relation with leadership styles (Elkins, 2017).
Another example of successful entrepreneur is Elon Musk, he is the CEO of private
space Transport Company Space X and Tesla. He is being referred as the real iron man. He is
in the list of those entrepreneur who have a wide spread influence on the current trends in
technology and are being in news every day because of their rapid innovation stories. He
always look beyond what is visible him and focus in improving the future consciously and
unconsciously. In addition to this, Elon Musk is exceptionally motivated and self-driven
individual who believes that there is not short cut to success. He suggested in order to
become good entrepreneur it is vital to have a vision, passion, challenging obstacles and
aiming bigger (Elon Musk Biography: Success Story of the 21st Century Innovator, 2018).
7

P6 Aspects of the entrepreneurial personality reflecting entrepreneurial motivation and mind-
set
There are numerous components that creates a successful entrepreneur. As per
Ducker, any individual can become an effective entrepreneur if he or she encompasses an
ability to innovate things, development of new products and services, risk taking attitude,
executing of new business ideas and acquiring leadership as well as management skills. After
comprehending all these elements, it is quite clear that those individuals or people who
reinvents themselves from time to time are best entrepreneur and can become competitive in
near future (Carter and Evans, 2012). Further, there is greater amount of correlation exist
amid entrepreneurial personality in regards with mind-set and entrepreneurial motivation.
According to Baum, the personality of an individual having entrepreneurship qualities is
being formed from the childhood itself. It is the external environment that influences and
impacts the personality of that individual. Those people who lives in the environment which
fosters creativity and freedom are more likely to show prominent features of management as
well as leadership in comparison to those who are born and bring brought up in authoritarian
and stringent environment. In addition to this, it is also very essential that all these people
who comprises positive personality characteristics should attain more skills and knowledge in
comprehending their fellow employees or people. This in turn contributes significantly in the
overall mind-set and from all of the above leads towards entrepreneurial motivation (Down,
2010).
As per the discussion in the above task, Richard Branson was very fearless and he is
not sacred of anything in life. The personality of Richard truly reflects his behaviour as well
as character. He was quite optimistic, watchful, intrepid, brave and is also dependable on the
people or workers who work for him. All these traits clearly defined the set of mid towards
achievement of the objective and ultimate gaols. Another example of Elon Musk have been
discussed in the above task, which shows that he is exceptionally motivated and self-driven
individual who believes that there is not short cut to success. He suggested in order to
become good entrepreneur it is vital to have a vision, passion, challenging obstacles and
aiming bigger. In addition to this, he is the owner of an escapades personality which
motivates him to explore new things in life. Elon Musk keep on trying novel things and
implement business ideas strategically so as to get extraordinary results (Richard Branson
Biography: Success Story of Virgin Group Founder, 2018). He is a risk taken and is often
referred as workaholic. For Musk, abiding by the work ethics is of prime importance.
Furthermore, he is of the belief that in life the greatest risk is not captivating the menace.
8

When the question arises that whether the leaders and the entrepreneurs are born
leaders or not, the most important notion is being continued in this world that ‘entrepreneurs
are made’ and ‘entrepreneurs are born.’ The book ‘The Psychology of Entrepreneurs,’ being
written by Baum suggested that the entrepreneurs are made and they are not leaders and
magnates by birth. It is quite hoary to say that leaders are born (Baum, Frese and Baron,
2014). He further added that it is the external environment of the people that supports as well
as shape the internal facets of the people. When leadership and management skills are being
combined than entrepreneurship is developed. Consequently, it can be said that both these
entrepreneurs are not born leaders and in fact they are being developed through their mistakes
and learning (Burns, 2011). The personalities of Richard Branson and Elson Musk has
motivated and set their intellect to work in a particular direction.
9

TASK – 4
P7 Examining how background as well as experience hinder or foster entrepreneurship
In actual fact there is a strong relationship between features of entrepreneur and
circumstantial of people. Each and every entrepreneur adopts different approach in regards
with managing business and taking decisions. All these variations are generally due to
personality traits and life experiences of people (Mariotti and Glackin, 2014). The personality
of entrepreneur is majorly formed from education level and experience from life. In addition
to this, the culture and background also impacts entrepreneurship both positively and
negatively. For example, if an individual is cultured person or believes in his or her culture
than the culture of that person will act as a motivational factor and he will employ his best
efforts to establish a specified business or tasks. A culture discipline is considered as the way
in which the individual behaves. Taking example of Richard Branson, he was very
adventurous and want to explore new things in life. His attitude of motivating others is being
reflected in his business as well. In Virgin group, employees are not scared of innovating
things and are also capable enough to take risk in their work activities. This was conceivable
only because of the experience being shared by Richard Branson to his workers (Branson,
2014).
Furthermore, Richard Branson was always utters that his ability to take risks is
majorly developed from his past experience and background. Thus, he is of the view that
each problem and challenge offers an opportunity to individual to open up. At the early ages,
Richard does not have interest in studies so he decided to dropout from school at the age of
16 and has started magazine named “Student.” He was very poor and didn’t have money to
earn his livelihood. Because of his positive attitude in regards with business, it is clear that he
was formed only because of experience, education and knowledge being given by his life
(Drucker, 2014).
Thus, it can be said that each of the negative as well as positive features being
possessed by entrepreneur is only due to past experience, background, knowledge and
education being gathered throughout the life. As the conception has been avowed that the
entrepreneurs are not born, it is very much clear that life experience plays a major role in
formulating entrepreneurship. The example of Richard Branson and Elon Musk has clarified
this notion significantly. When the upcoming challenges and problems are being surpassed
effectively, it offers an extra level of confidence for the entrepreneur to face up the next
challenges (Branson, 2014).
10

CONCLUSION
Therefore, it can be said that the entrepreneurs are made and they are not leaders and
magnates by birth. It was explored from the research that it is the external environment of the
people that supports as well as shape the internal facets of the people. When leadership and
management skills are being combined than entrepreneurship is developed. Further, the
report has successfully explored all the concepts related to entrepreneur and entrepreneurship
extensively. It has also made important discussion in regards with contribution of business or
small ventures in the direction of growth of the nation or a particular region. Finally, the
research report has considerably carried out detailed analysis on the features of entrepreneurs
and entrepreneurship.
11

REFERENCES
Books and journals
Baum, J.R., Frese, M. and Baron, R.A., 2014. The Psychology of Entrepreneurship.
Psychology Press.
Begg, I. and Mushövel, F., 2011. The economic impact of Brexit: jobs, growth and the public
finances. London School of Economics.
Branson, R., 2014. The Virgin Way: How to Listen, Learn, Laugh and Lead. Virgin Books
Burns, P., 2011. Entrepreneurship and Small Business. 3rded. Basingstoke: Palgrave
MacMillan.
Burns, P., 2011. Entrepreneurship and Small Business. 3rded. Basingstoke: Palgrave
MacMillan.
Carter, S. and Evans, J., 2012. Enterprise and Small Business: Principles, Practice and
Policy. London: Pearson.
Carter, S. and Jones-Evans, D., 2012. Enterprise and Small Business: Principles, Practice
and Policy. London: Pearson.
Chaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business. Pearson education.
Down, S., 2010. Enterprise, Entrepreneurship and Small Business. London: Sage.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hall, G., 2005. Surviving and Prospering in the Small Firm Sector. London: Routledge.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Lewis, W.A., 2013. Theory of economic growth. 7thed. Routledge.
Longenecker, J., Moore, C. and Petty, J., 2000. Small Business Management. UK: Thomson
Publishing.
Mariotti, S. and Glackin, C., 2014. Entrepreneurship & Small Business Management. 2nded.
Pearson.
Sain, J. and Dhameja, S., 2008. Entrepreneurship and Small Business. India: Rawat
Publications.
Scarborough, N. and Zimmer, T., 2007. Effective Small Business Management. UK: AIPI
Publications.
Scarborough, N. and Zimmerer, T., 2005. Essentials of Entrepreneurship and Small Business
Management. New Delhi: Prentice-Hall.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
12

Online references
Anderson, E., 2017. Britain hits record number of start-ups as more aspiring entrepreneurs
take the plunge. [Online]. Available through:
<http://www.telegraph.co.uk/finance/businessclub/11692123/Britain-hits-record-number-
of-startups-as-more-aspiring-entrepreneurs-take-the-plunge.html>. [Accessed on
4thOctober 2018].
Elkins, K., 2017. Richard Branson: Successful entrepreneurs share these 5 skills. [Online].
Available through: <https://www.cnbc.com/2017/01/31/richard-branson-successful-
entrepreneurs-share-these-5-skills.html >. [Accessed on 4thOctober 2018].
Elon Musk Biography: Success Story of the 21st Century Innovator. 2018. [Online].
Available through: <https://astrumpeople.com/elon-musk-biography/>. [Accessed on
4thOctober 2018].
Richard Branson Biography: Success Story of Virgin Group Founder. 2018. [Online].
Available through: <https://astrumpeople.com/richard-branson-biography/>. [Accessed
on 4thOctober 2018].
Shattner, W., 2017. Forbes Welcome. [Online]. Available through:
<https://www.forbes.com/sites/yoavvilner/2016/01/18/16-london-based-startups-ready-
to-take-on-2016/>. [Accessed on 4thOctober 2018].
13