Entrepreneurship and Small Business Research

This assignment provides a detailed analysis of various entrepreneurship-related concepts, including social entrepreneurship, sustainable development, and the impact of small businesses on local economies. It also touches upon entrepreneurship education, theory, and practice, as well as the importance of entrepreneurship in different contexts. The assignment is suitable for students studying business, management, or related fields, and provides a comprehensive overview of the subject matter.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and different types of entrepreneurship
typologies....................................................................................................................................1
P2 Similarities and difference between entrepreneurial ventures...............................................3
TASK 2............................................................................................................................................4
P3 Impact of micro and small business on economy..................................................................4
P4 Importance of small businesses and starts-ups in growth of social economy........................6
TASK 3............................................................................................................................................7
P5 Traits and skills of two successful entrepreneurs..................................................................7
P6. Entrepreneurial personality reflects entrepreneurial motivation and mind-set.....................9
TASK 4..........................................................................................................................................10
P7. Background and experience can hinder and foster entrepreneurship.................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process of launching new business activities which begin as small
business or start-up with a purpose of offering products or services for sale and hire. The
individuals who take risk and start such business activities are called entrepreneurs. It can also be
defined as a process of creating something valuable by devotion of important time or money to
receive awards in the form of profit, personal satisfaction and independence. As large number of
benefits are derived by nation through such entrepreneurial activities like development of society
and economy (Barringer, 2012).
In the present report, different types of entrepreneurial ventures and typologies of
entrepreneurship, similarities and differences between entrepreneurial ventures, contribution of
small and micro business activities in development of economy as well as importance of business
start-up in the growth of social economy will be explained. Also, important skills and traits of
entrepreneurs, effect of entrepreneurial personality on motivation and mind set as well as
contribution of background to hinder and foster entrepreneurship will be discussed.
TASK 1
P1. Different types of entrepreneurial ventures and different types of entrepreneurship typologies
Entrepreneurship: It is the process of creating something valuable through their
innovation which helps in development of successful venture to earn high profits. On the other
hand, entrepreneurship is the combination of land, labour, resources and capital to produce high
amount of profits. It totally depends upon the capacity and ability of entrepreneur to research
market, take risks and develop business plan to provide their products and services to general
public of country.
Different types of entrepreneurial ventures
Large number of ventures are present to be started by an individual. It depends upon the
risk taking capacity of entrepreneurs that which venture they select. As all ventures are different
from each other which are required to fulfil different requirements to start business activities.
There are mainly four types of entrepreneurial ventures having different features as described
below: Scalable starts-up entrepreneurship: These starts-ups involve high amount of risk and
profit. These kinds of ventures are required to be funded by crazy investors which are
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ready to take high risk to earn huge amount of profits. The basic aim of such
entrepreneurial ventures is to change the world with their idea and innovation. Such
entrepreneurship requires a large amount of capital for rapid expansion. Small business entrepreneurship: This includes all such business activities in which the
number of employees are less than 50 and having turnover under 6.5 million. Such kind
of entrepreneurial venture requires less amount of fund and risk to start business
operations. High employment has been provided by such businesses in the UK. The
major business activities which are included in small businesses are consultants, travel
agents, internet commerce store fronts, plumbers and electricians, etc. Social entrepreneurship: In this, all such entrepreneurial ventures are included which
provides products and services for the development of society and satisfying social needs.
Their main aim is to solve the social issues and problems. They are not working for the
creation of wealth for stakeholders and make world a better place to live (Baum, Frese
and Baron, 2014).
 Large entrepreneurship: Such entrepreneurship involves high amount of risk and funds
to operate their business activities. To satisfy different demand of customers and attain
large market share, such ventures are required to adopt innovation, new technologies,
legislation, etc. Implementation of all such factors by large companies helps to make
sustainability in their business performance.
Typologies of entrepreneurship
Different types of entrepreneurs are present which provide their services in the betterment
of world. Their main aim is to satisfy the need of customers and provide their contribution in
development of economy and society. Different typologies of entrepreneurship are described as
below: Serial entrepreneur: This includes all such entrepreneurs who come up with new ideas
and start their new business activities. They take an active part in day to day functioning
of company. Their aim is to make the venture profitable and deliver responsibility to
another person with working on other new idea. Social entrepreneur: It includes, all entrepreneur start business activities with the aim
of charities and removal of social causes. There are two types of social ventures firstly,
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non-profit organisation and secondly, such profit organisations working for benefit of
society.
 Female entrepreneur: Under this all business firms which are managed and control by
female. Female entrepreneurs have 51% shares worldwide.
P2 Similarities and difference between entrepreneurial ventures
There are large number of entrepreneurial ventures working in the UK. All such ventures
have some similarities and differences in their operations. Different ventures under which
similarities and differences are defined below includes lifestyle and serial businessperson, female
and male enterpriser, private and joint project, small and large entrepreneur, etc.
Lifestyle and serial venture: The similarities between both the entrepreneurial ventures
is that they operate large number of businesses at same time. The difference which is associated
in between operations of both entrepreneurs is that lifestyle entrepreneur has focused on
improvement of actual performance of business activities and on the other hand, aim of serial
entrepreneurs is to earn high profits from their different business functions.
Female and male entrepreneurial venture: The major similarity in between both the
entrepreneurs is having same kinds of skills and traits which make them successful in market.
The first difference between both these entrepreneurial ventures is in their market share. Female
entrepreneurs have 51% and men have 49% of share of market.
Private and joint entrepreneurial venture: Joint entrepreneurship includes the setup of
new venture by group of persons to achieve particular target for such purpose they join their
hands. This also includes about the exchange of technologies to achieve their particular targets.
All the members have equal liability on risk and losses. On other hand, private venture includes
agreement between two or more person to start business activities to large number of profits. All
the partners have equal liability or as per terms which are mentioned in agreement (Bosma and
Levie, 2010).
Small and large entrepreneurial venture: As there are many differences are present in
small and large business activities. The first factor which creates difference between both
ventures is fund. Small business activities requires small amount of funds in comparison to large
business activities. Difference is also present in sources from they raise their funds. Second
factor is risk which creates difference among small and large entrepreneurial ventures. The
amount of risk involved in small business activities is lesser in comparison to large companies.
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This particular factor of risk also affects the profitability of both entrepreneurial ventures. The
capacity to earn profit by small companies is lesser in comparison to large companies.
TASK 2
P3 Impact of micro and small business on economy
Three type of businesses are generally working in UK which are Micro, Small and large.
All such types of business has large impact on economy of UK. Their business function also
helps in development of society. Due to the exit of UK from European union large number of
adverse impacts are shown on their economy. The government finds out the way to overcome
from the effect of BREXIT is to promote small and micro business activities in nation. As this
will provides large number of employment opportunities, development of infrastructure, removal
of unemployment, increase flow of cash in an economy etc. So, regarding growth and promotion
of small business activities, UK government prepare linnet policies and strategies.
The difference between Micro, small and large business is mentioned below:
Micro: A business is called micro, if the number of employees are less than 10 and
having turnover less than £ 2 million. Functions of Micro business are smaller then small and
Medium firms.
Small: A business is called small, if the number of employees are less then 50 and having
turnover under £ 6.6 million. The functions of such businesses are bigger than Micro but smaller
than the activities of Medium-sized firms.
Medium: A business is called medium, if the number of employees are less than 250 and
having the turnover not exceeding of £ 25.9 million. The business functions of such firms are
bigger than both micro and Small firms (Bruton, Ahlstrom and Li, 2010).
Difference between private, sole proprietorship and partnership
Private Enterprises: This includes business activities which are managed and controlled
by non governmental organisation or by some individual. Government of country has no control
over the business functions of private company. The main purpose and objective of private
company is to earn large number of profits. The features of private company are mentioned
below:
 Not allowed to invite public to subscribe share
 Managed and controlled by non governmental organisation and independent individual
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 To earn maximum profits
 Separate legal entity
Sole proprietorship: This includes all businesses which are owned and controlled by
single person. Such single person have total control over the operation of business and having
sole liability over all risk and losses. The basic features of sole proprietorship are mentioned
below:
 Owned and controlled by single person
 Easy to implement such business activities
 Owner have unlimited liability
 Owner of business is not different from firm means there is no separate legal entity
Partnership firms: This includes formation of firm by two or more persons to earn large
number of profits and accomplishment of common objectives. The major features are:
 Partnership formed on the basis of agreement
 All the partners having unlimited liability
 Having equal profit and loss sharing ratio
 Work to achieve common objectives
Contribution of Micro and small business on growth of economy of UK
The business functions of micro and small organisation has huge contribution in
development of national, regional and local economy. The impact which is received by economy
of UK is mentioned below:
 Job creator: Large number of population of UK is employed by such non governmental
organisation. Around more then 50% population provides their services in micro and
small business enterprises. Such employment opportunities provide large of opportunities
to earn good income and improve their living standard. Increase in level of income fulfils
development criteria in two ways. First, development of society as jobs are created by
such firms and development of other industries as their spending also increased (Dacin
and Matear, 2010).
 Development of infrastructure: Micro and small business enterprises have huge
contribution in development of infrastructural facilities in underdeveloped area. Due to
the business functions of such firms markets are developed and basic facilities are
provide to individuals like transportation, communication, roads etc.
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 Removal of unemployment: Due to the effect of Brexit, UK economy faced the
situation of unemployment. As the promotional activities of government regarding
operation of small business contributes in removal of situation of unemployment. Such
support of government makes the individual independent and confident. As, this helps in
development of society also because now individuals of UK become job creator instead
of job seeker.
 Improved cash flow: There is huge contribution of small business activities in attraction
of foreign capital and investors. This will results in large flow of cash in an economy of
UK in form of FDI, government contribution, local investors contribution etc. Business
activities of small firms also increase income opportunities for government through
taxation, exports etc.
 Mapping future growth: Important role is played by the business functions of both
micro and small enterprise. As their activities contributes in development of society,
infrastructure, industrial sector etc. They have major contribution regarding maintenance
of sustainability in growth of economy of UK (Dacin and Matear, 2010).
P4 Importance of small businesses and starts-ups in growth of social economy
Brexit: It is the abbreviation of British exit, this decision is taken by UK government to
leave European union in June 23,2016. As the large number of adverse impact are realised by
government on their industrial sector and growth of economy. This would reduce per capita
income level of UK. This would happen because large number of trade barriers are present after
leave of UK. The various source from where government generate their incomes are diminished.
For example, reduction in exports from the countries of European union.
Difference between small business and starts-ups
Small-business Starts-ups
It is large organisation having established
business operations I.e. older more than 2 years
Recently start their business activities or
venture
Required large amount of funds in comparison
to business starts-ups, but operate their
business functions as small company
Recently start their new venture without
funding or due to the promotion of individual
or other small business
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Importance of small business and starts-ups in development of social economy
Due to the adverse effects of Brexit, UK government observed their industrial sector is
diminished because of many trade restrictions are imposed. To overcome from the impact of
Brexit there is need to promote small business activities and encourage individuals to start the
own businesses. As this will have huge contribution to increase job opportunities, removal of
unemployment, reduction of poverty, equal distribution of wealth, development in trade of UK
etc. Such improvement in different fields has major impact on the development of society and
economy. Some other important of new ventures and small businesses are mentioned below:
 Financial support: After exit of UK from EU, situation of depression has been faced by
UK Industries. To promote their industrial sector government prepare linnet policies
which helps individuals to easily setup their new ventures. As this will provides large
financial support to government in form of taxes and foreign investment which is further
used for future development.
 Employment opportunities: New business ventures and small business activities plays
an huge role in creation of large employment opportunities for the individuals of
economy. Such job opportunities contributes in development of society. Large number of
benefits are derived by society and individuals like reduction in poverty, equal
distribution of wealth, improvement in living standard etc.
 Improvement in UK international trading: Before Brexit the trade industry of UK
totally depends upon European Union. But after the effect of Brexit, industrial sectors is
diminished. To overcome from such effect linnet policies are made by government which
helps in development of international trade. Due to increase in number of new ventures
number of exports are also increase which improves the position of UK market in
international market (Defourny and Nyssens, 2010).
 Improvement in social security: Now the UK government has sole control on industries
and have the power to regulate their own terms and conditions. This results in providence
of more social security to local industries and the in individual of society that they are
getting good quality of products and services.
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TASK 3
P5 Traits and skills of two successful entrepreneurs
All the successful entrepreneurs have important skills and traits which supports them to
achieve their targets within stipulated time. Such skills helps them to plan about their future
activities and make strategies according to that which works as guiding factor for employees.
The two successful entrepreneurs which change the world with their innovation and
entrepreneurial skills are Mark Zuckerberg and Bill gates. Both the entrepreneurs have
extraordinary skills and knowledge in their field which makes them different from other normal
business managers. Both the entrepreneurs have passion in their field which force them to work
hard to achieve their targets. The important characteristics which are have by both entrepreneurs
Mark Zuckerberg and Bill gates are mentioned below:
 Risk taking: Mark Zuckerberg and Bill gates are two such entrepreneurial personalities,
having the characteristics of Risk taking. Risk taking is important to get success in future
operations. If the risk taking capacity is high then the ability of profit making is also
higher. Such ability shows the tolerance power of both entrepreneurs regarding handling
of probabilistic situations (Delgado, Porter and Stern, 2010).
 Money management: It is important characteristic which includes about the ability to
manage finance and effectively distribute among different departments. This helps in
performance of different functions effectively.
 Flexibility: It is important quality which is posses by both entrepreneurs regarding
change their policies and strategies as per the change in market conditions. This quality
helps both the entrepreneurs to adopt new technologies to satisfy different demands of
their consumers.
 Hard work: It is important quality which is having by both the entrepreneurs is to work
hard to get success. This can be shown from their profits and market share that both
entrepreneurial personalities are very hard working and passionate about their functions.
 Planning: Both the entrepreneurs have important characteristic of planning future
operations. This helps to understand the issues and problems which are going to arise in
future. Planning is considered as important risk management tool. This also includes
about the preparation of budgets which helps in allocation of financial resources.
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Some important skills and traits possess by Mark Zuckerberg and Bill gates are describe
below:
 Focused: Both the entrepreneurs have important skill of focused regarding their business
functions. Such skills helps to stick on their plans and follow their objectives. This also
motivate the employees to follow plans to complete their tasks.
 Communication skills: Both the entrepreneurs having good communication skills which
helps to deliver the roles and responsibilities to their employees. Such skill has large
number of benefits regarding development of good relation with their employees and
customers to satisfy their different needs (Hall, Daneke and Lenox, 2010).
 Quick learner: Both entrepreneurs are quick learner which helps them to accept new
technologies and knowledges which are present in market. This provides opportunity to
understand consumer behaviour and accept changes. Large number of benefits are
derived by both entrepreneurs due to such skill like competitive advantage, more market
share, high position, increase profitability etc.
P6. Entrepreneurial personality reflects entrepreneurial motivation and mind-set
Mark Zuckerberg and Bill gates are two entrepreneurial personalities. Both the
entrepreneurs have extraordinary skills and traits which are define above. There is huge
contribution of such skills and traits regarding motivation of individuals of UK and to set their
mind to start their own business venture. It is basic behaviour of individuals to follow such
personalities and wants to make changes in their lifestyle. So, such entrepreneurial personalities
has great influence upon individuals of country. It is the duty of such entrepreneurs to behave
with dignity and ethically because they are followed by normal individuals of country. Both the
entrepreneurs are belong from middle class family, after that they achieve success due to having
their passion and hard work towards their activities. This will motivates other person also to
develop such traits and become like them influential personalities and change the world with
their new and innovative ideas.
OCEAN theory
This theory has five dimensions which are describe below:
 Openness: This dimension of theory spells about the transparency of entrepreneur. All the
entrepreneurs are required to adopt transparent and innovative procedures to accomplish
their targets.
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 Conscientiousness: This dimension spells about consistency of entrepreneur regarding
their business functions. This helps to make sustainability.
 Extraversion: This includes about entrepreneur are required to be ready always to
perform functions. This helps to easily manage employees.
 Agreeableness: This dimension shows that entrepreneur are required to be trustworthy
and cooperative. This contributes in handling of difficult situations.
 Neuroticism: This dimension spells about, negativity, anxiety, emotions which are posses
by business persons (George and Bock, 2011).
TASK 4
P7. Background and experience can hinder and foster entrepreneurship
Benefits of entrepreneurship
Large number of benefit are derived by nations and entrepreneurs through their
entrepreneurial ventures which are mentioned below:
 Reaching to full potential
 Earn large number of profits
 Creation of destiny by your own
 Contribute in the development of society and economy
Drawbacks of entrepreneurship
 Uncertainties in profit
 Large risks are involved regarding their investments
 Requires long time to success and requires more hard work
Contribution of background to hinder and foster activities of entrepreneurship
There is huge contribution of background and experience regarding support and hinder
the activities of business. Bill gates having great interest in technology from childhood this will
helps him in creation of Microsoft. Similarly, Mark Zuckerberg belong from business family
which support him regarding development of entrepreneurial skills and this helps in creation of
Facebook in future. So, it can be observed that there is huge impact of background and
experience on business activities in positive and negative manner. Such different factors are
define below:
 Education: Education of person has great influence on the mind of individual regarding
selection of their career. Mark Zuckerberg and Bill gates from their childhood prefer
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technologies and having large interest in this field. This will results in development of
companies like Microsoft and Facebook.
 Family: Mark Zuckerberg belongs from the business family which has great influence on
him to start their own business activities. As he gets full support from his family from
financing to planning of his business plan. This helps him to develop successful business
like Facebook (Herrington, Kew and Monitor, 2010).
CONCLUSION
It can be concluded from the above report that to start a successful venture, there is the
need to have some specific skills in an entrepreneur. Skills which contribute in the success are
hard work, passion, confidence, flexibility, risk taking, etc. Large number of benefits are derived
by both the entrepreneurs and nation through their business activities. Entrepreneurs get an
opportunity to earn large number of profits and become independent. On the other hand, nation
gets opportunity regarding development of their society and economy. As large number of
factors which drives the growth of society are employment opportunities, removal of
unemployment, increase level of income etc. It is observed that there is huge contribution of
background to support entrepreneur to start their business activities.
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REFERENCES
Books and Journals
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Baum, J. R., Frese, M. and Baron, R. A. Eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Bosma, N. S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
Bruton, G. D., Ahlstrom, D. and Li, H. L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Dacin, P. A., Dacin, M. T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Defourny, J. and Nyssens, M., 2010. Conceptions of social enterprise and social
entrepreneurship in Europe and the United States: Convergences and divergences.
Journal of social entrepreneurship. 1(1). pp.32-53.
Delgado, M., Porter, M. E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
economic geography. 10(4). pp.495-518.
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.
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.
Herrington, M., Kew, J., and Monitor, G. E., 2010. Tracking entrepreneurship in South Africa: A
GEM perspective. South Africa: Graduate School of Business, University of Cape
Town.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Oosterbeek, H., Van Praag, M. and Ijsselstein, A., 2010. The impact of entrepreneurship
education on entrepreneurship skills and motivation. European economic review. 54(3).
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Pott, O. and Pott, A., 2012. Entrepreneurship. Unternehmensgründung, unternehmerisches
Handeln und rechtliche Aspekte, Heidelberg.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and practice. 35(1). pp.165-184.
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Big Five Personality Traits of Entrepreneur. 2018. [Online]. Available through:
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