Entrepreneurship and Small Business

This assignment examines the multifaceted world of entrepreneurship and small businesses. It explores core concepts such as defining entrepreneurship, understanding the role of small businesses in economic development, and analyzing their management practices. The assignment also delves into crucial topics like sustainable business models, growth strategies, and the influence of public policy on entrepreneurial ventures.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Entrepreneurial ventures and their interrelation with types of entrepreneurship...................1
P2 Differences and similarities among entrepreneurial ventures................................................2
TASK 2............................................................................................................................................4
P3 Small and micro business effect on economy........................................................................4
P4 Contribution for the growth of social economy by small business........................................5
TASK 3 ...........................................................................................................................................7
P5 Skills, characteristic and traits of successful entrepreneurs...................................................7
P6 Aspects of entrepreneurial personality which reflects entrepreneurial mind-set...................8
TASK 4............................................................................................................................................9
P7 Background and past experience which hinder entrepreneurship..........................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Entrepreneurship is the study which is based on the development of new business with
new idea as well as it is the way or process which is involved in starting a new business. It is also
defined as the willingness or capability which is needed for the arrangement, control and
development of an organisation by analysing risks in order to generate revenues and profit (What
is Entrepreneurship?. 2017). Different new entrepreneurs are growing each day and making
good contribution for the development of a economy. This report is based on the topic of
entrepreneurship and will be supportive in motivating and helping entrepreneurs so as to start
new business in an existing as well as new market. In this report different types of
entrepreneurial venture and their relation with entrepreneurship, contribution of small business
for economy, various skills, characteristic and traits entrepreneurs who have got success will be
analysed in this report.
TASK 1
P1 Entrepreneurial ventures and their interrelation with types of entrepreneurship
There are various types of entrepreneurial venture that exists in a market and can be
defined as follows: Lifestyle ventures: These venture can be defined as the type of ventures who assist in
giving continuous and stable income to its owners on the basis of conservation approach
for trade model and management. Owners make investment in this business so as to
maintain competition in local market. It is located in just one area and are not keen to
have much growth and development (Bridge and O'Neill, 2012). Survival ventures: These kind of ventures are new in market and only contribute in the
living of owner and their family members. Such business do not have specific workplace,
not having formal registration as well as coordination with bank. Managed growth ventures: These kinds of ventures which are called managed growth
ventures have appropriate and stable growth. Such businesses are having continuous
investment from its investors and manage to get moderate growth. Time to time launch of
several new products, necessary facilities for staff and appropriate expansion of locations
are some of the features of this venture.
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 Aggressive growth venture: Such businesses are based on the technology and have
ability for strong innovation and growth. These businesses get funds from equity capital
and this venture is opportunity driven .
Venture which are discussed above are related with different types of entrepreneurship,
which are defined as follows: Small business entrepreneurship: Such kinds of business are having small scale such as
grocery stores, plumbers, travel agents, consultants etc. These entrepreneurs own their
business and hire families and local employees. They are in relation with survival
ventures as they cannot make large funding. In this businesses investment is done by
families, small business loans and friends (Burns, 2010). Scalable start-up entrepreneurship: In this kind of business, owners believe that their
vision which is made will help in changing world. Investments are made in this business
with the help of financial investors like venture capitalists. Large company entrepreneurship: These entrepreneurs are related with ventures of
managed growth. They make growth by producing innovative and creative products. If
there will be change in the taste of customer it due to that there will be pressure on
disruptive innovation.
 Social entrepreneurship: These kinds of entrepreneurship exist for the social welfare of
the society. Entrepreneurs of these businesses act as innovators and make production of
products which assist in satisfying social problems and issues. They want to make world
a better place.
As per Carland and Carland (2015), entrepreneur is a person who takes risks and
develops innovative products. New phase will be developed by global development, where a
significant role is being played by an entrepreneur. Economy of a country which is properly
managed will be dependent on mass production and big trade, which will assist in the
development of economy.
P2 Differences and similarities among entrepreneurial ventures
Several types of entrepreneurial ventures are there which can be discussed. Every
entrepreneurial ventures have some differences and similarities with one another.
Entrepreneurial ventures Resemblance Difference
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 Lifestyle Ventures Sources of finance which are
used in lifestyle and managed
growth ventures are same.
They both take funds from
friends and families and
rewards are paid to employees
on the basis of salary (Dennis
Jr, 2011).
Their style of management is
tactical and have simple
structure which is not same
with structure of other
ventures.
 Survival Ventures Low entrepreneurial
orientation is there of both
lifestyle and survival ventures
and their exit approach is also
same such as shutting down of
business.
Management style is reactive
and have continuous growth
which is different with other
ventures.
 Managed growth
venture
Exit approach of managed
growth and aggressive
ventures are similar. For
instance sell or merger. The
economic motive is same like
wealth creation.
Their management style is
strategic and have moderate
entrepreneurial motivation.
 Aggressive growth
ventures
Aggressive growth ventures
and managed growth use
planning tool for management
skills and provide rewards
which are based on equity.
Their technological investment
is high and entrepreneurial
motivation is not similar with
any other venture ().
It can also be explained with the help of objectives, roles and characteristics of different
ventures: Private ventures: The main objective private ventures is to contribute for the
development of economy by generating profits and opportunities of employment. They
are similar with managed growth ventures. Main aim of such kind of ventures to
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maximise profit and to make effective choice regarding organisational structure
according to the interest of business. Public ventures: These types of ventures exist to make desired and fair growth in a
market and they play major role in the welfare of the public. Their main objective is to
make development of economy, self reliance, growth of backward areas and consumer
welfare. They are similar with scalable start-up entrepreneurship. They make several
operations for the welfare of public and not only for profit (Down, 2010).
 Social ventures: Such kind of ventures exist in order to make development of society and
also for social welfare. Their aim is in relation with society and environment and invest
money for such purposes only. These kind of ventures are similar with social
entrepreneurship. Their motive is to grow social enterprise which will help in giving
assistance to several societies and communities.
TASK 2
P3 Small and micro business effect on economy
Micro business can be defined as such kind of businesses where there is only one owner
and max. 5 employees including owner. Individuals of every age, mostly minors and women are
establishing micro businesses due to much flexibility and mobility which are provided by small
and micro businesses. These kinds of businesses can be done as per the skills, passion, conditions
and terms of people. Entrepreneurs and small businesses reflect 92% of the UK trade, small
trades which are done by single individual supports in modifying dynamics of wealth creation,
income and life quality (George and Bock, 2011).
These trades also give impact on growing job opportunities in America as they make
contribution in developing around 26 million jobs for youths. Micro business also helps in
making production of around 13.4 million induced jobs and 1.9 million indirect jobs. If a single
person is employed by every small business then it will create full employment situation in
country.
Small businesses can be termed as profit making trades which are run and owned by an
individual person. Such businesses have 5 minimum employees and maximum 500 could be
there which depends on industry type and product which is produced (Gorgievski, Ascalon and
Stephan, 2011). They employee 24.3 million of individuals in UK and also give private sector
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employment of around 60%. These trades also support to provide new jobs in local and small
communities. They are of much importance for a economy and their several impacts can be
defined as follows: Impact on regions: Small and micro businesses make there presence in various regions
and give their impact. Every region may have different type of start-up which will give
effect on direct employment. Effect of supply sides will also be there in several regions
and for such purpose competitors who exist in such regions will make changes in their
supply process (Hall, Daneke and Lenox, 2010). Impact on locals: Small as well as micro businesses give effect on society and also on
local communities. It has been analysed that such businesses give large amount of
contribution to local communities. 64% of new jobs are generated by micro and small
businesses who make contribution for the growth of local economy.
 Impact on international and national economy: Small and micro businesses also affect
national as well as international economy. Such trades have turnover of £1.6 trillion in
the starting of 2014. They are also a part of major employment which is generated in UK.
37% of these businesses are the part of innovative activities and produce creative services
for their customers.
As per Leitch, Hill and Neergaard (2010), micro and small businesses has major impact
on local, regional, national and international community. Main aim of these trades is to generate
employment opportunities of individuals of country which will eventually contribute for social
and economic development. It has also been analysed that, they also assist in creating direct
employment in various regions and also contribute for the development of local communities. On
other hand Ligthelm, (2010), explains negative effects on many areas because of micro and small
businesses. When there is problem in supply and production of services and goods then it is
considered as negative effect.
P4 Contribution for the growth of social economy by small business
Brexit is defined as the way by which UK withdraws from EU. It is basically an
abbreviation for British Exit. On June 23, 2016, United Kingdom officially decided to break ties
with EU. This decision which is taken by UK come as a result of public vote or referendum of all
citizens who are of voting age where approx 30 million people have given vote. Brexit gives an
existential threat to parliamentary system and political parties. The small airports of European
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Union also suffer from Brexit and also give threats to economic prosperity. Due to the existence
of Brexit there are many small businesses and start-ups who contribute in the growth of social
economy (Nga and Shamuganathan, 2010).
A start-up can be defined as temporary business which is being designed to make search
of scalable and repeatable model of business. It is basically a company which many people have
not thought will be a separate entity in future. An scalable start-up not just prove their business
model but operate in a way which will significantly effect current market. On the other hand,
small businesses is a self content business. Their boundaries are fixed and they want to make
global impact by expanding themselves. A start-up's desire to have large effect and wants to be
disruptive. Small business get funding from family though start-up's are self or family funded.
Small businesses and start-up's are the backbone of economy of UK and provides
contribution in development of employment opportunities. It is analysed that small business
make contribution of around 99.9% in private sectors. Various major importance can be
described as follows:
 Small trades and start-up's contributes for majority of business enterprise in a country
and plays main role in increasing employment and turnover, which will assist in social
growth of economy. They support in 60% jobs in private sector and 81% in developing
efficient workforce (Preuss, 2011).
 These kinds of businesses helps in creation, innovation, employment and adaptability for
UK economy. Small businesses and start-up's are generally innovative and creative and
had appropriate growth in innovation and development of product.
 Start-up's and small businesses also attracts individuals in UK and create competition for
visitors as well as investors. They assist in providing variety and diversity in cities and
towns by playing important role society and community. Whenever there is increase in
competition, firms make improvement in their working and generate high turnover,
while firms which do not have high productivity face problems in survival.
 These kinds of businesses supports to give contribution in local economies' development
as they support to brings creativity and innovation. They are also supportive for large
organisations as they give appropriate resources and helps in completing various
business functions (Sampaio, Thomas and Font, 2012).
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TASK 3
P5 Skills, characteristic and traits of successful entrepreneurs
Entrepreneurship is defined as the process or way with the help of which something
innovative is created through appropriate efforts and time as well as by assessing psychic, social
and financial risks. With the support of such process, they receive personal satisfaction and
monetary rewards. Various functions and roles which are played by entrepreneurs are defined as
follows:
Capacity to bear uncertainty and risk
To create developed organisation
 To get perception regarding opportunities in market.
 Retailing regarding product (Schaper and et.al., 2014).
 Management of human resources in an organisation.
 Administration regarding supplier and consumer relation.
 Administration which is done finance and production.
 Purchase of inputs. Introduction regarding innovative products and techniques of production.
Innovation
 Unexpected success, event and failure.
 Innovation according to the process of product development.
 Modification in structure of market and business.
 Various demographic changes.
There are various traits which exists that will be helpful in creating a successful
entrepreneur. Dedicated and determinant: When a person wants to an entrepreneur, then he or she
should be of dedicated or determinant personality. Clear and defined goals must be set up
by a person in order to make use of it in venture (Storey and Greene, 2010). Various
challenges are also faced by an entrepreneur such as hiring of new candidates, growth of
business etc. Risk bearer: Every business either small or large should face various risks while making
various operations in market. It has been analysed that business cannot make growth
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without surviving risk so a good entrepreneur should be capable to bear any type of risk
that occur in an organisation. Constant learning: If a person wants to achieve success, then he must posses sharp and
constant learning. There is continuous change in industry and the one who deals with
such changes and survive by gaining learning will get success. Passionate: Passion must be there in an entrepreneur which will help in driving
dedication and determination which supports in having success and growth. A person
should be passionate for his work and must enjoy while working which will support in
venture development (Leitch, Hill and Neergaard, 2010). Adaptable: If opportunities will be analysed by an individual which exists in market, then
a person will be able to make necessary growth. If an individual who wants to be an
entrepreneur is adaptable then there will be increase in capability and ability so as to
provide response in different situations.
 Management of finance: Money and finance is a vital part of any business which
supports in making necessary operations, for this there should be proper management of
finance which must be done by entrepreneur so as to make appropriate survival.
These are several traits which differentiate an entrepreneur from normal business
manager and with the help of these traits an individual can provide success and growth to its
venture.
P6 Aspects of entrepreneurial personality which reflects entrepreneurial mind-set
Every entrepreneur have different personality and mindset which helps them to achieve
success. The cultural differences, lifestyles and family upbringings plays an important in the
development of entrepreneurial personality which will also contribute in the success of
enterprise. Lifestyle of a person and cultural differences are reflected by upbringing which is
done by family that will help in interpreting world. These factors also helps to focus on
achievements (Ligthelm, 2010).
These are those factors which supports an entrepreneur to make development of qualities
like passion which is necessary for enhancing personality of an entrepreneur and helps to work
for the achievement of goals. If a person will be passionate then he can motivate its employees to
work for goals and objectives. Discipline is necessary to focus on work and also remove
distractions and difficulties which comes in way of goals.
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Person should also be confident in its knowledge and skills which will help to achieve
success. To be a successful entrepreneur, confidence is everything which supports in obtaining
objectives of an organisation. Entrepreneurs generally have creative mind by which they make
innovative network among various situations and events and also helps in product recreation in
new market. Entrepreneurs who are successful believes to do everything and never think that a
particular work cannot be done. There are many entrepreneurs who are having difficulty in
overcoming problems due to insufficient funds (Schaper and et.al., 2014). Self sense is another
quality which supports an entrepreneur in overcoming many problems and difficulties. They are
capable to convert an idea into a reality. Self sense and self motivation is very necessary for each
and every entrepreneur. With the support of effective vision, person will be able to see
opportunity in every situation. They will be able to develop idea which will assist to improve
quality of services and products.
A good entrepreneur have strong skills and effective communication skills which
supports to motivate employees and also make effective product selling. They also have skills
which motivate employees in growing business and attaining objectives. Entrepreneurs set
various criteria which supports in following directions. Different types of business are set up due
to entrepreneurs because they make development of creative and innovative trade. Every
entrepreneur who is operating wants his trade at the top and for this he makes various ideas and
strategies through which they growth and development (Sampaio, Thomas and Font, 2012).
TASK 4
P7 Background and past experience which hinder entrepreneurship
Entrepreneurs are termed as risk takers and original thinkers. They take responsibilities
for their own activities. They set high target goals and work in order to achieve objectives and
goals. Traits, education, culture and economic circumstances plays a significant role in attaining
objectives of an organisation. They are educated and are brought up in such kind of culture
which supports in motivating them to be a good entrepreneur. They also posses sufficient
knowledge through which they do innovative and creative work and apply those skills in the
production of products. They get adjust in any market and situation. They are always self
motivated and self managed and take risks so that they will not have any fear in creating new
services and products so as to achieve goals and objectives (Preuss, 2011).
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Many qualities are there in successful entrepreneurs because they have good education
and culture which plays an effective role. To run a venture, there are many risks which are
involved in a business that requires self motivated attitude and nature in order to make
achievement of objectives and goals. Confidence and self motivation assist entrepreneur to
represent employees and customers.
Entrepreneurial personality does not have a specific definition as they are from various
family and educational backgrounds, culture and have different experience. It is necessary to
have appropriate culture and education which is important in solving different problems.
Entrepreneur learns to make dealing and communication with different people and thus make
effective business operations (Nga and Shamuganathan, 2010). Past experience from work
supports in becoming successful entrepreneur because failure and past experiences motivates an
individual in operating effectively. Industrial experience and technical knowledge of a person is
very important in different decisions which are required for establishing a business. Experience
is also necessary for different areas like market planning, distribution channels, promotion,
financing, product development, manufacturing etc. When a business get established,
entrepreneurs gain managerial experience and skills which become important for making several
operations and also helps in solving different issues and problems of business.
Economic circumstances are very significant for an entrepreneur which assist in attaining
goals and objectives and make them financially strong. With this, entrepreneurs will also be able
to work with several new technologies. It helps in giving opportunities which are needed for job
in long as well as short term. The economies and productivity of a company are also maximized
with the support of entrepreneurial activity (Ligthelm, 2010).
CONCLUSION
Entrepreneurship and small business management is very supportive as they help in
economic growth in various ways. From the above mentioned report, it can be analysed that so as
to become developed and successful entrepreneur, a person must be able to handle risk
effectively and should present necessary solutions with the help of which innovative and creative
ideas will be developed which assist in achieving targets in particular time. It can also be
concluded that entrepreneurs must be aware of each and every risk which is related with working
activities of venture. They also contribute in international and national economic growth.
Various kinds of entrepreneurial ventures are determined in this report which are like survival,
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managed growth ventures etc. and each of them have different management style for their
operations. All these ventures are related with different types of entrepreneurship. It is important
for a entrepreneur to be positive and motivated in order to have growth and success.
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REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carland, J.W. and Carland, J.C., 2015. A model of potential entrepreneurship: Profiles and
educational implications. Journal of Small Business Strategy. 8(1). pp.1-14.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management, 49(1), pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
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.
Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2). pp.207-232.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5). pp.439-
448.
Leitch, C., Hill, F. and Neergaard, H., 2010. Entrepreneurial and business growth and the quest
for a “comprehensive theory”: tilting at windmills?. Entrepreneurship Theory and
Practice. 34(2). pp.249-260.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Sampaio, A.R., Thomas, R. and Font, X., 2012. Small business management and environmental
engagement. Journal of Sustainable Tourism. 20(2). pp.179-193.
Schaper, M.T., and et.al., 2014. Entrepreneurship and small business.
Storey, D.J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Online
What is Entrepreneurship?. 2017. [Online]. Available
through:<http://www.businessnewsdaily.com/2642-entrepreneurship.html>. [Accessed
on 26th May 2017].
The Role of Small Business in Economic Development. 2017. [Online]. Available Through:
<http://isbdc.org/small-business-in-economic-development/>. [Accessed on 26th May
2017].
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