Entrepreneurship: Theory and Practice

This assignment delves into the world of entrepreneurship theory and practice. It examines various theoretical frameworks, including the impact of clusters, corporate taxes on investment, and the role of incumbents and new entrants in sustainable entrepreneurship. The analysis also covers human capital formation, the legitimacy of social entrepreneurship, internationalization and innovation, and institutional entrepreneurship. Students are expected to critically evaluate these theories and their practical implications within the dynamic field of entrepreneurship.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explain entrepreneurial ventures types and typologies of entrepreneurship.........................4
P2 Explain different type of entrepreneurial ventures( differences and similarities).................5
P3 Explain How economy is affected by micro and small business...........................................7
P4 Explain the importance of small businesses in social economy............................................8
TASK 2 ...........................................................................................................................................9
P5 Explain key characteristics of a successful entrepreneur.......................................................9
P6 Explain aspects of entrepreneur personality........................................................................10
P7 How a person's background can foster entrepreneurship.....................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................15

INTRODUCTION
For every entrepreneur it is important to go through with the activities of small business
management and entrepreneurship. When a person started a business it is important for them to
initiate as small business. Various business framework are including in small business
management rather than a large enterprise. It is important for a entrepreneur to take risk in time,
money, and efforts which helps to make shape of their ideas and thoughts. Entrepreneurship
means there is chance to make something creative and innovative but this chance is not exist
always. The report is going to discuss aspects of small business management and
entrepreneurship(Alsos, Carter and Ljunggren, 2011). Report will also includes all the data of
micro and macro business and how these influence to the business. How a entrepreneur getting
success in their businesses and manage all the functions and operations for sustain in the
industry. It will also include that how a business is affected by behaviour of entrepreneur.
TASK 1
P1 Explain entrepreneurial ventures types and typologies of entrepreneurship
There is difference between entrepreneur and a businessman because they identify every
factor related to the success and failure. Before start a business it is important for a entrepreneur
to learn from failure which helps to them getting success in future. Entrepreneur create new ideas
and implement them with limited number of resources and try to get success in future time
period. There are some type of entrepreneurship are mentioned below:
Scalable start up entrepreneurship: Silicon valley investors and their stockholder is developed
this kind of entrepreneurship. These kind of entrepreneurs think that their thought is change the
whole world when they started their businesses. They are focuses to attract the investors to invest
in their ventures so that they can easily conduct their business activities.
Large company entrepreneurship: Large companies have various number of resources and they
focus to improve their products according to the available resources. According to customers

need, large organisations focuses on improve the qualities of the products(Awogbenle, A.C. and
Iwuamadi, 2010).
Small business entrepreneurship: These kins of entrepreneurs are produce products and target
the various customers. These includes consultant, saloons, grocery store, carpenter, travel age ,
electrician and plumbers. The main motive of small entrepreneurs is that to earn some money for
living. Promotion strategies and raised funds from loans are not used by the small entrepreneurs.
Social entrepreneur: These kind of entrepreneurs are focus to serve that kind or products and
services which helps to make better to society. Their main motive is to solve social problems and
not make profits(arringer, 2012).
Entrepreneurship Typologies: There are some entrepreneurial ventures are given below:
Lifestyle ventures: These ventures are initiated by the individual with employee various workers.
These kind of investments focuses on financial gain to businessman.
Survival ventures: These kind of ventures started to full fill basic needs of themselves and their
family members. They do not make any contract with other parties because they focuses on
barter and cash system. So basically survival venture are not register their business activities and
operations.
Managed growth ventures: Feasible model of entrepreneurship and growth is provided by these
kind of ventures. These kind of person take interest to invest in developed business so that they
can gain more profits. They are focuses on launch quality product and try to gain growth which
is very important for their ventures.
Aggressive growth ventures: Various technical methods and innovation is used by these kind of
ventures which helps to them high boost up in growth.
P2 Explain different type of entrepreneurial ventures( differences and similarities)
There are some differences and similarities between different entrepreneurial are given
below:
Difference:
Small and social entrepreneurial:
 Solve social problems and make effort for society betterment is main motive of social
entrepreneur on the other hand main purpose of small entrepreneurial is that earn profits.
 Another difference is that small businesses are earn profits and social entrepreneurial are
serve profit to society(osma and Levie, 2010).

Similarities:
 To full fill the requirements both entrepreneurial use creative ideas and concepts. Target of both entrepreneurial are same that is public. Small business is focuses on sell to
public and social is focuses on serve to public.
Large and scalable entrepreneur:
Difference are given below:
 Scalable entrepreneurs can not cover their losses but on the other hand large businesses
are can recover their losses.
 Scalable entrepreneurial are focuses to attract other investors to invest in their business
and tackle their crazy concepts but on the other hand large business are raised the funds
from financial resources which helps to them expend their businesses.
Some similarities are given below:
 Concept of innovation is included in both kind of entrepreneurial by which they can stand
in the industry for long time(Bruton, Ahlstrom and Li, 2010). Scalable and large entrepreneurial both are employee various skilled and qualified
workers.
Life style ventures and serial entrepreneurial ventures:
Differences are mentioned below:
 Lifestyle entrepreneurial are the individuals who conduct their business and do not merge
with other business whereas serial business are focuses on cope up with other business
ventures.
 Serial entrepreneurial are adopt new concept for their business. On the other hand
lifestyle entrepreneurial are focuses on successful strategy.
Similarities given below:
 Vision of both business venture is same when they sell their their product in many
platforms. Concept of innovation in businesses is adopted by both of entrepreneurial.
Female and male entrepreneurial: Differences are given below:
 Female entrepreneurs are cope with time and personal life whereas male entrepreneurs
are only adjust time with family and spouse.

 Quality of innovation is generally in female entrepreneurs on the other hand male
entrepreneurs only make efforts for their businesses(Delgado, Porter and Stern, 2010).
P3 Explain How economy is affected by micro and small business
Micro enterprises are involved various small companies which low number of employees
so that they can earn some amount of profits. Micro business are contribute in GDP of a country
so it affect directly to economic condition of that country. They also affect various factors such
as capital of economy, investment, trade factors and provide annual income. According to the
policies and terms which is formulated by any individual, age and gender on their own basis,
small business are bendable. With the help of various employees small business are focuses on
earn maximum profits(Djankov and et. al., 2010). They have minimum number of employees is
500 and it depends on the type of organisation and environment of market in which a business
are established. There are some effects of economy by small business are given below:
Regional impact: Regional market have various entrepreneurs which are affect to economy of a
country. They are start up their business in various areas which influenced various factors such
as product choices, market pricing, and business trends which are available in industry. Some
programmes are including in regional are which is related to the infrastructure facility such as
education, hospitals, parks and housing. Make development in every regional pace are including
in this kind of impact. To full fill need and requirements of public they also focuses on the
development of agriculture sector and export facilities. Real estate investments and regional
clusters are help to great contribute in economy by increasing GDP of a country.
Local impact: Local entrepreneurs are great affect on the regional and local market. Economy is
affected by these entrepreneurs because they start new pricing, providing funds and also
emerging new laws and regulations. Unemployment is decreased by the small and micro
business because they provide large opportunities of employment to various people. They also
help to increasing the funds of government by paid enough amount of taxes. Small business are
focuses on development of regional and local areas. They raise income from local firms which
helps to make a city in large enterprise so that development can be enhanced.
International and national economic impact: Income these small firms are huge and this is the
reason that they provide huge amount of employment. This impact on various factors such as
prices of the different commodities, policies which is formulated by government and national
income also. Taxes which are paid by the small enterprises is is helps to develop the economical

conditions of the country(Hockerts and Wüstenhagen, 2010). They are exchange money in
market which help to increase the national investment of a country. Net income of a person and
economic condition of the country is define the difference between developing and developed
country. Employment level of country is also define developed and developing country. Small
business are provide large number of opportunities of employment so that they directly
contribute into the progress of nation. Increase number of resources, provide job opportunities
for young people and strong resource management helps to make reputation and goodwill of
developed country. Small business are helps to reduce import values and increase values of
export(Leitch, Hill and Neergaard, 2010).
P4 Explain the importance of small businesses in social economy
Small business and new start ups are give large contribution towards the economy
because they increase employment opportunities and income. Small businesses is very important
for UK economy because they are exchange and than provide employment to people of the
country. So basically economy of UK is affected by the small business. There are many ways n
which economy is affected by small enterprises are given below:
 Small business and new start ups are affect economy of a country by providing jobs, use
of innovation concept and latest technology so that productivity can be increases of
country. These firms are provide products at lower prices and every location so people
can easily reach to them.
 Various investors, competitors and sponsor which are including in a economy are also
affected by the small firms. Community, regional and society feel secured because theses
businesses are increasing job opportunities to the many young people.
 Small businesses are use innovation and creativity in their economical and financial
system which helps to increase contribution in social system. They are selling their shares
to large companies and raised funds which are used to provide good and quality products
to the society and also helps to give strength to the economy of the country.
 These kind of firms are also consider particular local community and society and provide
them commodity which is available in every corner of society. This approach is helpful to
boost up the contribution level in economy and make large part of income which helps to
development and improvement in the economy(Martin, McNally and Kay, 2013).

 Small business and new start up are help to increase the per person income and also helps
to increase the living standard of people. UK have strongest economy in the world
because small business helps to increase the income of individual.
 Small businesses and fresh start ups giving motivation to other entrepreneurs for start up
business in society. This helps to increase the use of innovative and creative ideas.
TASK 2
P5 Explain key characteristics of a successful entrepreneur
There are many qualities in a entrepreneur which is very important if they want to get
success in their business(Martin, McNally and Kay, 2013). These qualities are includes such as
potential, leadership qualities and determination. Success and failure of a enterprise is depend on
the qualities of the entrepreneurs. Qualities of entrepreneur is helps to sustain for long time in
market. For example like Steve jobs , today technologies and gadgets are used by many people of
world which is formulated by him. Some characteristics of a good and successful entrepreneur is
given below:
Determination: For successful organisation, entrepreneur need to have clear goals and objectives
which helps to develop their company. For this purpose they identify their customers and hire
skilled and qualified employees.
Risk Taking: A good entrepreneur has to be this quality if they want top get success in their
business. Venture is all about taking risk of money, time and effort which help to establish a
business in market. Risks is included in every activity of the business such as financials risk and
risk of uncertainty which is very important for every kind of company.
High confidence: This is the another quality of a good and successful entrepreneur that they
should have full confidence on their ideas, concepts and strategies. Major problems and threats is
understand with the help of these strategies.
Learning crave: Today market and environment is very dynamic because of new technologies
and new ideas emerging. So it is important for a good entrepreneur that they should learn new
things and technologies which helps to them face loss and critical conditions which might be
emerge in near future.
Passionate and flexible: It is important for a successful entrepreneur to being flexible according
to the changes in the environment. They have to understand needs and wants of customers and

provide them innovative services and products. Apart from that being passionate about business
and ventures is very important for a good entrepreneur(Neck and Greene, 2011).
P6 Explain aspects of entrepreneur personality
To sustain long term in the market it is important for a entrepreneur to make struggle and
being patient when they rendering their business activities. Research is play important part for
growth and improvements of the business. Strong perspective and determination of a
entrepreneur is very important for their ventures. Clarity of visions and mission is play important
part in growth and development of their ventures. Determination and passion is very important
to being good entrepreneur so these are helps to to them face critical situation which might be
arises in the future(Nicholls, 2010). Financial profits have to be considered by the entrepreneur.
The main strength of their ventures is that they give commitment and possession towards their
ventures. Positive attitude is very important for the entrepreneur because it helps to face various
critical situations and they are also make some effective strategies to being positive. It is
important for new businessmen to face danger and learn from failure these are helps to full fill
their objectives and goals. Apart from that if a business person is greatly affected by their failure
and other factors than it is difficult to them to achieve success in future. There are many situation
some may be negative or other positive so it is crucial that they have to learn from both kind of
experience which helps to them grape new opportunities for growth for their venture. A good
entrepreneur have to be self confident and never afraid from various difficult situation if they
want achieve goals and targets. Opportunities can grabbed by a business person if they
passionate about their ventures. Market trends, strategies and environment have to be studied by
the good entrepreneur because these all are helps to make effective strategies for their ventures.
Research is also conducted by the business person because it is important for effective decision
making in their organisation. Family background and environment is also play very important
part to make good entrepreneur. So basically behind a successful business person there are lot of
reasons which have to be followed by the entrepreneur.
P7 How a person's background can foster entrepreneurship
Entrepreneurship is like a new venture which can be started any kind of person with the
helps of new ideas and concepts so they can sustain in the market for long time period.
Strategies can also be determined by the new business person which helps to getting success in
near future(Onetti and et. al., 2012). If a entrepreneur is individual than it is easy to achieve

goals and targets of the company. Various qualities, skills, competencies and experience is
formulate the background of a entrepreneur. They get motivation and inspiration from their
background and prior experience. It is important for them to learn lessons from their positive and
negative experiences. A survey is conducted by the UK which describe that a person's
background and experience is affect their level of thinking and ideas. Their habits and traits are
define the abilities to being a good entrepreneur. It is not compulsory that a good entrepreneur is
born with the qualities and skills, they can learn from their positive and negative experience.
This helps to make them able to face any difficult situations and also increase their motivation so
that they survive for their ventures success(Schaltegger and Wagner, 2011). Apart from that
experience is not enough top learn new things but a effective strategy and action plan is more
important when they rendering any venture because these are helps to them achieve their desired
goals and targets. Normally new entrepreneur has less amount of resources and maintenance
system so it is important for them to appropriate use of these resources to full fill their objectives.
Education of business person is also play very important part to learn new things, know about
modern technologies and also understand the new market trends because these are very
important for the sustain in market for long time. These factors are helps to raise position of
entrepreneur in the market. Apart from that culture is very important to being good entrepreneur.
CONCLUSION
As per this report it can be concluded that there are various forms are available for a new
start up person they can any kind of form and being a good entrepreneur. This report is also
describe that for developing economy of a country, there is requirement for large number of
entrepreneurship which helps to contribute to increase the GDP of that country. The report is
also includes various types of entrepreneurial and typologies of entrepreneurship(Alsos, Carter
and Ljunggren, 2011). There are various types of entrepreneurship ventures are available in the
market and their similarities and differences is also discussed in this report. Role of micro and
small business to improve and develop the economy is also part of this file. At last key
characteristics which is very important to being a good entrepreneur is also described.

REFERENCES
Books and Journals-
Alsos, G.A., Carter, S. and Ljunggren, E. eds., 2011. The handbook of research on
entrepreneurship in agriculture and rural development. Edward Elgar Publishing.
Awogbenle, A.C. and Iwuamadi, K. C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
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.
Delgado, M., Porter, M.E and Stern, S., 2010. Clusters and entrepreneurship. Journal of
economic geography. 10(4). pp.495-518.
Djankov, S., and et. al., 2010. The effect of corporate taxes on investment and entrepreneurship.
American Economic Journal: Macroeconomics. 2(3). pp.31-64.
Hockerts, K and Wüstenhagen, R., 2010. Greening Goliaths versus emerging Davids—
Theorizing about the role of incumbents and new entrants in sustainable
entrepreneurship. Journal of Business Venturing. 25(5). pp.481-492.
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.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of
Business Venturing.28(2). pp.211-224.
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.
Nicholls, A., 2010. The legitimacy of social entrepreneurship: reflexive isomorphism in a pre-
paradigmatic field. Entrepreneurship theory and practice. 34(4). pp.611-633.
Onetti, A and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance.16(3).
pp.337-368.
Schaltegger, S and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4).
pp.222-237.
Tracey, P., Phillips, N and Jarvis, O., 2011. Bridging institutional entrepreneurship and the
creation of new organizational forms: A multilevel model. Organization science. 22(1).
pp.60-80.

Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
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Online
10 Traits All Successful Entrepreneurs Share. 2015. [Online]. Available Through:
<https://www.entrepreneur.com/article/243792 >. [Accessed on 24thAugust 2017].