Entrepreneurship and Small Businesses: Doc

Entrepreneurship and small
businesses

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 ...........................................................................................................................................1
P2 . .........................................................................................................................................3
LO 2 ................................................................................................................................................5
P3 ...........................................................................................................................................5
P4 ...........................................................................................................................................6
LO 3.................................................................................................................................................7
P5 ...........................................................................................................................................7
P6 ...........................................................................................................................................9
LO 4 ..............................................................................................................................................11
P7 .........................................................................................................................................11
CONCLUSION ............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
The project study is base on entrepreneurial and little concern. The word
entrepreneurship is generally means to design and create new business ans start up in an
innovative and creating way. Small business are also known for its innovativeness and creative
skills. And the person who operate this is known as entrepreneur. Further the report will include
various kind of entrepreneurial undertaking and typologies. And also it will include the
differentiation and similarities of entrepreneurial ventures. Also, this report will discuss the
impact of little and bantam enterprise in the economy and also it will include the value of tiny
business and start up in the social economy. Further it will cover the traits, skills of successful
entrepreneur. And it will discuss how the aspect of the bourgeois attribute reflect businessperson
motivation and mind set. And at last it will discuss and examine with relevant examples that how
background and experience can hinder or faster the entrepreneurship.
LO 1
P1
Entrepreneurship – it is basically the process of designing, launching and creating new start up
and also it helps to start new business. And the person who start this business is known as
entrepreneur. Serial entrepreneur – It is an entrepreneur who continuously bring new ideas and starts
new organisations or businesses. As opposed to an entrepreneur, who generally come up
with a single idea or thought to start the organisation. Owner manager – Owner-managers of incorporated enterprises or organisations are
workers who hold a job in an incorporated organisation, in which they together or alone
with other members of their families or few partners, hold controlling ownership of the
business. They also have the authority to act or take decisions on behalf of the
organisation as regards contracts with other organisations and the hiring and dismissal of
individuals in the paid employment of the dame business.
 Intrapreneur – An intrapreneur is an employee who is responsible for creating an
innovative project or idea within an organisation. An intrapreneur does not face the
external risks or gain the external rewards of an entrepreneur.
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Difference between serial entrepreneur and intrapreneurs
Serial entrepreneur - Serial entrepreneur is the individual who continuously comes up with the
great thought and start their fresh business but on the different hand intrapreneurs uses
entrepreneurial skills without incurring the risks associated with those activities.
Entrepreneurial Ventures
Micro entrepreneurial Venture – Micro entrepreneurial ventures are extremely small size
with 20 employees working in the enterprise. And also, it has turnover of business has up to $1
million. Its source of fund is personal. As it is very small in nature. For example, local tailor
shop in UK.
Small bourgeois venture – this are the undertaking which are run and control at small
scale level. The capital provided for the small scale venture is from friends, family bank and
micro loans. It has less than 250 employees which are working in the small scale business. Small
scale business generally known for their innovative and creative skills which make different
from other ventures. It is owned and control by a single person who is the one which is
responsible for profit and loss. For example, the person who run small grocery shop in UK.
Public entrepreneurial ventures – Public entrepreneurial venture is little complex in
nature as it is closely-held and power by the authorities, which only take important decision in
the venture. Public entrepreneurial venture can transfer its share to the public and also can sell its
share through first national offering. It is compulsory for a public venture to get listed on stock
exchange. For example, the person who run banking, hotel in UK.
Private entrepreneurial venture – this type of venture involves less formality and less
complex in nature as compare public venture. It has restriction to transfer and sell its share to
public. It has no interference from the government bodies. It is owned and control by group of
people and they only take important decision in the venture. For example, the person who owns
the accounting and small retail store in UK.
Large entrepreneurial venture – This are venture with are operated at large scale and with
a greater number of employees and more complex in nature. Large entrepreneurial venture has
the turnover up to 300 million. For example, Jack Cohen who owned the large private firm in
UK.
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Typology of Entrepreneurship
Scalable firm – Scalable ventures are the ventures which are creating on the basis of
innovative ideas and creative skills and it is one of the most promising ventures which have the
capability to earn more profit.
Social firm – Are the firm which are mainly focused to serve the society and work on the
betterment of the society. It creates a good deal of employment opportunity to the people and
create helps to better the standard of living of the people. And indulge in the way to improve the
status of the society by providing them improved prime of products and services.
Growth Firm – Are the steadfast which grow faster than compare to its competitor. And
also earn high profit and revenue and sustainable growth. The growth rate of the growth firm is
much greater than any of the firm as by the help of innovative methods and advance technology
(Rudenko and et.al, 2015).
P2 .
Difference between public and private entrepreneurial venture.
Criteria Public bourgeois venture Private enterprising venture
Number of share holder In public venture there are
minimum 7 and maximum
there is no limit in the venture
In private entrepreneurial
venture there are minimum 2
and maximum 200 member re
allowed in the private venture.
Stock trading The right to make public offer
and transfer its share to public
is available.
The right to make public offer
and also transfer its share is
prohibited for the private
venture.
Objective The main subjective of public
entrepreneurial venture to give
services to its member and also
satisfy its customers
The primary objective of
company to earn maximum
profit.
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Risk involvement As public company are
generally less risky than
private company.
In private ventures more risk
are involve.
Organisation structure Public entrepreneurial venture
generally use tall organisation
structure which have many
layers of management as it
very wide in nature and more
complex .
Private entrepreneurial venture
use flat structure which
provide easy way of
communication.
Number of director The number of director in
public company is 3
The number of director in
private company is 2
Similarities
Both private and public entrepreneurial venture are focus to attain the content and neutral
of the ventures. And also focus to achieve the desired result and profit. Both the ventures main
objective is to offer and provide quality of the services to the customers and make every possible
efforts to satisfy the customers to the large extent. And both understand the needs and wants of
the customers and also helps to serve and improve the society by providing various measures to
grow the society. And both the venture take risk as they both think that the more the venture take
risk ,the more will be the return.
Difference between Micro, Small, Large
Criteria Micro Small Large
Source of finance Basically they finance
itself from personally
Small entrepreneurial
venturer's source of
finance from friends
and family .
Large enterprise
venture 's source itself
from bank, micro loans
etc.
Number of employees 20 Less than 250 More then 1000
Turnover Micro entrepreneurial
venture has turnover
Small entrepreneurial
venture has turnover
Large entrepreneurial
venture has turnover
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up to $1 million less than $20 million exceed $300 million.
Similarities
The above three companies are basically known for its creative skills and innovative
ideas. And all ventures provide and create employment opportunity to the people and also
motivates them to start their start up and be independent. And also their main objective is to earn
sustainable growth in the market and earn profit. All the above venture concentrate upon to serve
the society and change the standardized of living of the group. also they all are run in an
effectual and prompt manner.
LO 2
P3
They impact the UK economy as they are considered as the backbone of the system and
contribute to the large extent in the GDP and also in the growth of the country. As micro ans
small enterprise helps the people to motive and encourage then to improve the standard of living
and also helps to start their start ups and live relax life. It has turnover of 1.6 trillion euros and
employees people 24.3 million people in United Kingdom. And also they are known as the main
source of employment as they encourage the people to large extent. Micro and small business
generates 46%of revenue which is a big figure. Also, till now they are created 37000 jobs to the
unemployed people. As micro and small business have cause positive impact on the economy
and helps to run the economy in the right direction. Also, they are the main source of innovation
and all innovative ideas are come from the micro and small business which helps the economy to
be in the top position and also gain competitive position and also it contributed to the GDP of the
country. So micro and small business are very crucial in the economy. As it gives extra chance of
growth to the economy and impact in the smooth manner which help the economy to run in the
better direction.
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P4
The importance of business and business start up to the growth of social economy to the
large extent. As it show a major role in the social economy. The small business and start up help
the people to improve their standardized of surviving and also it gave the chance to the people or
encourage them to start their start up and earn a better living and be independent. It also helps to
increase the employment opportunity as it provide job to the unemployed people. And it is the
main source of employment. It also helps the big corporation as small business are directly
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contact with the customer and they known the taste and preferences of the customer and they
give the information to the big corporation about the taste and preferences. So that big
corporation's sales increases. Hence, small businesses and beginning -up plays an important role
in the social economy. As it helps to run the social economy in the positive direction (McGuirk,
Lenihan and Hart, 2015).
Social economy – It is developed by a wide or rich diversity of organisations & enterprises for
example associations, mutual, social enterprises, foundation and institutions sharing common
features and values. Small organisations contribute to social or local economies by bringing
innovations and growth to the community in which organisation or business is established. Small
business also fulfils social needs of people living in a community by offering job opportunities,
better lifestyle etc that helps in the development of the economy.
Creation of employment: Only small enterprises provides an employment opportunity
to the people and thus, Small business also contributes in the growth of economy by providing
employment opportunities to individuals who may not be capable to get employed by larger
organisations or corporations.
Innovation: Small business also leads to innovate new products and service by analysing
the needs of their customers. Further, they also provide best innovative products to the society
that helps to grow the business. Further, they are also known as the source of innovation as it
create many ideas and creative skills and comes up with the innovative ideas with help the
economy to grow.
Meeting social needs and local development: Only small business helps or motivate
people to work with different kind of people and also it helps to respect the different culture of
people and work in the friendly manner. It also provides different kinds of training to the
employees and workers which helps them to motivate the social needs and local development.
LO 3
P5
Basis Henry Ford Bill Gates
Traits Henry ford has the ability to be
more creative and innovative
in any situation. And also has
Bill Gates is a successful
entrepreneur as he was having
the ability to think in the
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faith in their own capabilities
and also motivates its member
in the right direction and listen
and learn which makes them
different from their manager
(Flynn, McKevitt and Davis,
2015).
critical manner and take
decision according which helps
the organisation to grow. Also,
he is result oriented as his
focus is to obtain the goals of
the organisation and achieve
the desired results. Bill gates
is never afraid to take risk as
he thinks that the more the
person take risk the more he
will earn return.
Skills The main skills of Henry ford
is to be constructive in all the
given situation. And also think
in the better way. And
encourage its worker and
employees to work and think
in the positive manner in any
tough situation. So that it will
be easy for them to achieve the
desired results.
The chief attainment of Bills
Gates is to think in the critical
way it in important for an
entrepreneur to think in the
better way in critical situation.
As it will improve the decision
making in an effective and
efficient way.
Motivational drivers The main psychological
feature driver is innovation as
Bill Gates believe that it is
very important to innovates its
business so that it will help to
grow the business. This helps
them to be different from the
business manager (Jaouen and
Lasch, 2015).
is that it believe achievement
is the best motivational driver
as it very important for a to
work hard and achieve in the
right direction and attain its
goals. As achievement helps
the person to work even more
hard.
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Entrepreneur mindset – entrepreneur mindset is the mentality in which group think in the
optimistic mode and also handgrip to each one and all state in the constructive way . And also
take risk and tackle every status positively.
Types of mindset – there are two variety of enterpriser mindset which are as mentioned
below:
 Business mindset: The first one is fundamentally the concern oriented whose motor is
the earn net and to be stable the market. And become successful in each and every field
 Growth mindset: It is the growth mindset in which it is very important to handle every
situation in the effective way and ever do every effort for the growth of the business. And
also urge for the growth of the business.
 Positive Mental Attitude: It is another type in which the person mind is set for the
growth of the business and it also influence corporate culture. Further, the negative
mindset did not affect the behaviour of an entrepreneur and work in negative way.
It is very important to have an entrepreneurial mindset as it helps to motivate the person and
think in effective manner.
Entrepreneur are born not made: In the context of the this lines, there are some strong
arguments which provide the statement true. For instance, Richard Branson, Steve Jobs are
school dropouts who build the large corporations and this shows that the entrepreneur are born
because they possess those skills which an entrepreneur have and this leads to make the
statement correct.
P6
There are many entrepreneurial personality which reflect entrepreneurial motivational and
mindset-
Creativity – The first features of entrepreneur is creativity. As creativity gives birth to
new. Without creativity there is no innovation possible. It is important for the entrepreneur to
think in the creative way and comes up with the new ideas which will helps the entrepreneur gain
success and helps in growth. As creativity always has the solution to the problems and it solves
in the better manner (Cowling and et.al, 2015).
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Risk taking – the second characteristics of entrepreneur is that ability to take risk. The
more the entrepreneur take risk, there will be more chances of return. As entrepreneur has
different approaches towards risks. And always they think to minimise the risk in every possible
manner. The same is posses by Bill Gates as well as Henry Ford.
Positive – The third characteristic of entrepreneur is positive attitude as it is very
important for the entrepreneur to show positive attitude towards every situation as Bill Gates and
Henry Ford posses. It is important to motivates people to think in the positive manner so that it
will be very easy to achieve the desired results. Staying positive it will help the team to handle
every situation in positive manner (Khelil, 2016).
Hard working – the next characteristic of an entrepreneur is hard working attitude. As
both Bill Gates and Henry Ford will work hard and motivates the employees so that desired
result can be achieved. Also, working hard will develop the sense of satisfaction when
accomplishing goals.
Good communication – it is important for the entrepreneur to communicate in the
effective and efficient manner. As communication is the key to successful relationship with the
people and the same is possess by Henry Ford and Bill Gates. It is important for an entrepreneur
to work on their communication skills such as oral, written.
Forward looking – the entrepreneur have the ability to think in forward manner and tend
to think in futuristic way so that it will help the organisation and it is important to anticipate all
the future losses.
Planner – the last characteristic of the entrepreneur is to plan the work in systematic way.
As planning gives direction to the organisation, therefore, both Bill Gates and Henry Ford uses
this skills as well, which helps to achieve the goals and objective in smooth way. Planning helps
the person to work in right direction and helps to manage the work on time by applying many
strategies (DeTienne, McKelvie and Chandler, 2015).
Impact of aspects of personality on entrepreneurial mindset
Need for power and control: Having effective control and power upon other is also
consider the good personality trait for the entrepreneurs such as it leads to take the business in
forward direction. This personality trait also use by Bill Gates which makes motivate the
employees in order to raise their skills and capabilities which directly affect the entrepreneurial
mindset.
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Need for achievement: It refers to the individual's desire for the significant attainment,
and they are master of skills and also attain the challenge-able goals. Therefore, it is the
personality factor which is more relevant to the environmental resource and if Henry Ford have
the skill of planning, organizing, then it leads to affect the entrepreneurial mindset.
Need for risk-taking: It is another personality trait which helps to take the business at
further level of success. The risk ability also reflects the entrepreneurial mindset and it is also
posses by Bill Gates and Henry Ford because this ability help to make the person better
entrepreneur for its future and cause business success as well.
LO 4
P7
Bill Gates
Bill Gates is an American big businessman, investor, leader and entrepreneur. He was
born on October 28, 1955. He is the sir of William H Gates. His father was a prominent lawyer.
He is known as the principal founder of Microsoft Corporation. He held position as a chairman,
CEO, and chief software and also he was the largest individual shareholder. Gates become the
richest person in the world. As he is the flourishing entrepreneur with his keen thinking in every
situation. He is having an innovative mindset which makes him the leading entrepreneur. Bill
Gates still owned 45 % of the company. Gates has $193 billion today (Morris and et.al, 2018).
Personal Background: in his early childhood, Gates knew that his parents wanted him to
pursue a law career but his interest in the technical field. The family of Gates is not as financially
strong and at the age of 13, he was the first who wrote his first software program and also has 3
siblings, therefore, for his parents its not easy to spend amount for Bill study. That is why, he
was study in middle school. But he never feel low because he has sharp mind and strong vision
which makes him different from other students. Therefore, this factor never hindrance his early
childhood, while he learn different things which makes him the best entrepreneur in the world.
Experience: At the age of 13, Bill wrote first software program which encourage him to
introduce many more and even in 1973, Bill was a national Merit Scholar and then spend a lot of
time using his school's computer to make better programming. Initially he faces lot of difficulties
but he never give up, such that in 1980 he approach to IBM and then become the first who
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proposed Microsoft write the BASIC interpreter. Having a sharp skills and strong entrepreneur
skills makes him the best entrepreneur in the world. Therefore, his experience encourage him to
choose a better life.
Henry Ford
Henry Ford was born in 30 July 1863. He was the founder of the Ford Motor Company.
His father was William Ford. He was born in Country Cork, Ireland. By his hard working
attitude he was the leading entrepreneur and the most successful. As the owner of Ford he
become one of the richest and best known people in the world. He was known for its excellent
trait and skills which makes him different from other. His aggravated commitment to
systematically lowering the cost which result to many innovations. He uses different strategies
and aggressive techniques to make him successful entrepreneur (Alvarez‐Garrido and
Dushnitsky, 2016).
Personal Background: In his early age, Henry's mother died and his father wanted him
to take the entire responsibility of farm and then he left home and work as a machinist in Detroit
and then after some time he return to his family where he start operating the steam engine. Ford's
family is not as financially strong, but he has a courage and wanted to be different from other
people. His father give pocket money which he saved and use for his personal use. Even his
father not support him in his study and then Ford married in 1888. Tough this factor creates
negative impact upon his success but the having strong capability makes Henry a successful
entrepreneur
Experience: Ford is hard working man such that he become an engineer with Edison
company and then he promoted to Chief engineer where he had enough time to pay attention to
his personal experiment. Then in a meeting, he shows the experiment to Edison and it was also
approved and this incident encourage Ford to build his second vehicle. And then he successfully
launch the second vehicle as well. Therefore, this enthusiasm and risk-taking ability creates
positive impact upon the Henry and now he is known as one of the top entrepreneurs in wold.
CONCLUSION
From the above study it has been concluded that entrepreneur plays an important role as
it comes with the innovative ideas and creative skills. And it has concluded that entrepreneurship
helps to create and design the business and start ups. In this study it has been concluded the
different type of ventures and typology which are used in this report. And also it has been
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concluded the differentiation and similarities of different venture 's. It also concluded that micro
and small business striking the economy to the large extent. And also there is value of small
concern and beginning up. And also it has included the different attribute and accomplishment of
entrepreneur. It has assessed the businessperson attribute which reflect entrepreneurial
motivation and mindset. Furthermore, it has described the background and experience of the
entrepreneur.
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REFERENCES
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Flynn, A., McKevitt, D. and Davis, P., 2015. The impact of size on small and medium-sized
enterprise public sector tendering. International Small Business Journal.33(4). pp.443-461.
Jaouen, A. and Lasch, F., 2015. A new typology of micro-firm owner-managers. International
Small Business Journal. 33(4). pp.397-421.
Khelil, N., 2016. The many faces of entrepreneurial failure: Insights from an empirical
taxonomy. Journal of Business Venturing.31(1).pp.72-94.
Lee, S.M. and Lee, B., 2015. Entrepreneur characteristics and the success of venture exit: an
analysis of single-founder start-ups in the US. International Entrepreneurship and Management
Journal.11(4).pp.891-905.
McGuirk, H., Lenihan, H. and Hart, M., 2015. Measuring the impact of innovative human capital
on small firms’ propensity to innovate. Research Policy. 44(4). pp.965-976.
Morris, M.H and et.al, 2018. Distinguishing Types of Entrepreneurial Ventures: An Identity‐
Based Perspective. Journal of Small Business Management.56(3).pp.453-474.
Rudenko, L and et.al, 2015. Socio-Economic role of service-Sector small business in sustainable
development of the Russian economy. European Research Studies. 18(3).p.223.
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