Entrepreneurship Theory and Practice

This assignment delves into the theoretical foundations of entrepreneurship. It explores various perspectives on entrepreneurial ventures, analyzing concepts such as human capital formation, sustainable entrepreneurship, institutional entrepreneurship, and the role of clusters in fostering entrepreneurial activity. Students are expected to critically evaluate different theories and their practical implications for understanding how businesses emerge, grow, and contribute to economic development.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse types of entrepreneurial ventures and typologies of entrepreneurship....................1
P2 Explain differences and similarities of various entrepreneurial ventures..............................2
P3 How can small business and micro are affect the economy..................................................3
P4 Explain how small businesses are important for the social economy....................................4
TASK 2 ...........................................................................................................................................5
P5 Explain key qualities which is important for being successful entrepreneur.........................5
P6 Explain various aspects of entrepreneur personality.............................................................6
P7 Explain the importance of background to enhance the entrepreneurial skills.......................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
When a person is initiate a business than it is very obvious that they faces many activities
which is related to the entrepreneurship and small business management. Comparison with the
large organisation, Small business have consist lots of activities and frame works. For getting
success it is very crucial for a entrepreneur that he has to take risk in money Time and efforts.
There are various chances are available for the entrepreneur so that they can easily adopt any
kind of idea to make some innovative and creative. Report will describe all the different
entrepreneur ventures and typologies of entrepreneurship(Alsos, Carter and Ljunggren, E. 2011).
Importance of small business and how it can influence to economy will also discuss in this file.
Some qualities which required for successful entrepreneur also going to discuss in the report.
TASK 1
P1 Analyse types of entrepreneurial ventures and typologies of entrepreneurship
There are various types of entrepreneurial ventures are available in the market so that
every entrepreneur can easily adopt them to start their small business. Examine the failure and
success point of every entrepreneurial ventures is very imp[important for a new start up. In the
initial stage entrepreneur have limited resources so it is important fir them to use them very
efficiently and effectively so that they can easily start their business even in starting stage. Many
type of entrepreneurship are given below:
Scalable start ups: According to this kind of entrepreneurs their main aim to attract various
investors so that they can easily raise funds from them and start business activities with enough
funds.

Large company entrepreneurship: This kind or entrepreneurship have large organisational
structure with lots of resources. The main purpose of these resources it identify needs and taste
of different customers and produce that kind of quality goods and services.
Small business entrepreneurship: According to these kind entrepreneurs they are focuses to
earn enough amount so that they can easily full fill their basic needs. In small business consist
carpenter, saloons, plumber, departmental store, travel agent and electrician(Awogbenle and
Iwuamadi, 2010).
Social entrepreneur: According to this kind entrepreneurs they are not focuses on profit
maximization. To make healthy society they are provide that kind of goods and services which
make society better. NGO are includes in this kind of entrepreneurial ventures(Barringer, 2012).
Entrepreneurship Typologies: Apart from entrepreneurial ventures there are various typologies
are available in the market which are mentioned below:
Lifestyle ventures: This kind of venture is owned by the individual but they maintain large
number or workforce to accomplish their goals and objectives. The main purpose of these
venture is to gain maximum amount from businessman.
Survival ventures: This kind of venture are include in small categories because their main
motive to earn some money which can used for full fill their basic needs. Cash system is working
in survival venture and their functions and business activities are not register.
Manage growth ventures: These kind venture includes when person invest their money in well
established organisation where chances to gain some money amount. Growth and progress can
be achieved by sell quality products and services.
Aggressive growth ventures: These kind of persons are aggressively manage and boost up the
growth. Their main motive is to gain growth and progress by use of innovation model and adopt
new technologies.
P2 Explain differences and similarities of various entrepreneurial ventures
There are various differences and similarities of many entrepreneurial ventures are
mentioned below:
Small and social entrepreneurial:
Similarities are given below:

 To provide products and services for the betterment of the society is the main purpose of
social entrepreneur and sell goods and services for profit maximization focused by the
small entrepreneur.
 Social entrepreneur are profitable for the society and small business are raise income
from the society(Bosma and Levie, 2010).
Similarities:
 Innovative concepts and new technologies are used by both kind of entrepreneurs. Target of the both kind of entrepreneurial venture is to produce goods and services for the
people of the society.
Large and scalable entrepreneurs:
Difference are mentioned below:
 Large organisation have power to cover the losses but scalable entrepreneurs are does not
cover their losses(Bruton, Ahlstrom and Li, 2010).
 Another difference is that to conduct the businesses activities scalable business want to
raise funds from various investors but on the other large financial resources can be used
by the large entrepreneur.
Similarities:
 Creative concept and innovative concept is adopted by both of entrepreneurial which
helps to enhance the productivity of ventures. Skilled and qualifies persons are very important part of both of entrepreneurial.
Life style ventures and serial entrepreneurial ventures:
Differences are given below:
 Serial entrepreneurs are coordinate their activities with other business on the other hand
lifestyle business are owned by individual and do not take interest to merge with other
organisation.
 Already implemented strategy is adopted by the lifestyle entrepreneur and serial business
take more interest to adopt new strategies.
Similarities:
 Main purpose of both kind of entrepreneurs is that to make profit maximization.
 Both entrepreneurial is adopted new technologies for smooth functioning of their
activities.

P3 How can small business and micro are affect the economy
Economy is affected by the small business some time adverse or some time favourable.
Small companies are involved in micro enterprises and conduct their business activities to earn
profits. So it is important to create large number of small enterprises so that economy is
developed of a country. Amount of gross domestic product is boost up if number of small
business are increased(Delgado, Porter and Stern, 2010). Many economic factors such as capital,
number of investments and annual income of nation is influenced by the micro enterprises.
Various policies and systems made by a single entrepreneur which helps to make mould and
bendable so that any situation arises in the economy can managed with the helps to these policies
and terms(Hockerts and Wüstenhagen, 2010). Workers of a organisation play a very important
role because without them business can not run their operations and it directly affect the
profitability level of the small businesses. Small businesses are greatly affect the economy which
are described below:
Regional impact: Many entrepreneurs are conduct their business activities in regional market
and directly or indirectly affect the economy development. Many factors are affected when a
individual start their business like prices of products, many business trends and taste and
preferences of the customers. Small business which are operating in regional market re
responsible to identify need of people of the society and also give facilities in agriculture sector.
Local impact: This kind of impact are related to local market because today various small
businesses are start and they affect they profits of all over local market. Various rules, regulation
and legislations are provided by small business which greatly affect the economic growth and
development. One benefit is also examine by the small business is that unemployment is reduced
in the local area because many business are provide jobs to the workers.
International and national economic impact: Small business are favourable for the national and
international economy because they provide employment opportunities. Main advantage of these
business is that they pay many taxes to the government which helps to make betterment for the
economy. Small business are also helps to increasing the resources and also use them
appropriately and increase their income which helps to create goodwill and reputation of the
nation.
Small businesses might not have large turnover but they have a great significance in the
economy of a nation. Small cafes and laundry services business can be categorised into the

category of small business enterprises. These businesses does not require much investments to
start and has low risked involved in it. This is the reason why a lot of small scale enterprises are
part of the UK's economy. They influence local, regional, national and international economy
and this has been proved by the data released by the Federation of Small Scale Businesses. There
are almost 5 million micro and small scale companies exists in UK and they creates a lot of
employment opportunities. They are giving jobs to almost 30% of the population and the
emigrants who migrate to UK for employment. Retail sector has been the employment creator
and has been on the top position. The reason behind this is that it is easy to setup and does not
require much inputs. Currently, it had been successful in providing employment to almost 19%
individuals. In 2015, the country saw the birth of 380000 new businesses. From this we can
estimate that every day how much small businesses make debut in the market. The ration of the
births are greater sign than the business deaths which are sign of the healthy economy. MNC
companies are investing into the local or regional business thus helping them to life their market.
P4 Explain how small businesses are important for the social economy
Social economy means society which includes people of the country, small business are
very important to them because they provide different goods and services to them with low
prices. One another benefit f these business is that they provide jobs and works to the people so
they directly provide favourable effect to the social economy(Leitch, Hill and Neergaard, 2010).
Small business are exchange money to provide various employment opportunity which is very
useful for the economy of UK. Small enterprises are affect the social economy in many ways are
given below:
 To increase and enhance the productivity small enterprises are play very important role
because they provide large number of opportunities of job, increase income and also use
of innovation model and new concept(Martin, McNally and Kay, 2013).
 Small enterprises are influence many other business, investors and sponsor which all are
very important part of the economy. Job security is enhanced in the people of the society
because small companies are generate large number of employment.
 New technologies and creative ideas are adopted by the small firms so that they can
provide more quality goods and services which helps to enhanced the productivity and
development of the social economy. Funds can be raised by the various financial
resources which can be used for the betterment of the economy.

 Small businesses are provide products and services for local community and increase
their profit level. If small firms are increase their income than it directly contribute the
GDP of a nation which is significant benefit incurred by the operations of small
enterprises.
 Because new start up provide large number of job opportunities so this the main reason
behind to improve living standard of the society which helps to make powerful
economy of a country. Strongest economy in the world of UK because they have
various small firms which help to boost up the income of people of the society.
 Motivation of other business person is also boost up by the new start ups of the which
helps to innovate new products and services for the society.
TASK 2
P5 Explain key qualities which is important for being successful entrepreneur
For getting success in the business entrepreneur want to learn from their various
experience some are failure or other are success. For successful leadership a entrepreneur should
have leadership skills, communication skills, potential and risk taker also. Characteristics of a
entrepreneur is play major role in the success of his businesses. Determination and hard working
is another quality which helps to achieve success in their business(Neck and Greene, 2011).
Various characteristics for being successful entrepreneur are mentioned below:
Determination: This kind of quality includes formulate targets and objectives before starting the
business activities. These help to entrepreneur can see their clear vision and mission and focuses
to achieve these targets. To full fill these goals they have to analyse customers and select skilled
workforce.
Risk taking: For conduct any kind of business it is important for business person to take risk in
terms of money, time and effort(Nicholls, 2010). Risk and uncertainty are very integral part of
any business so that this characteristics have to be developed in the entrepreneur if they want to
get success in the business.
High confidence: It is important element which must have in successful entrepreneur that high
level of confidence. When entrepreneur deal with other persons it is important being full
confident. It includes that when business person formulate their strategies, concepts and ideas
they should have full confident.

Learning crave: Learning capability is very important for a successful entrepreneur because
today in modern world new technologies and innovations are arises which are very useful for the
business. So it is important for the new business person to learn new things so that they can
apply them for getting success.
Passionate and flexible: Environment is dynamic so it is important for the successful
entrepreneur to coordinate with every situation shroud have the quality of flexibility. Passionate
is another thing means hard working for getting growth. Apart from that identify the needs and
wants of the people are very important part for the organisation.
P6 Explain various aspects of entrepreneur personality
Every person have different personality but it is important to examine the personality of
every individual entrepreneur. Some personality trends are play very important role for being
successful entrepreneur. For development and improvement, research is very important in the
business because this helps to arise new technologies and innovation model. For get success in
the business it is important to being passionate and hard working. It is very crucial for the
entrepreneur decide goals and objectives for the venture. He is also responsible for formulate
effective strategies which is integral part of success. Environment is dynamic and there are
various situation which can be arises in the near future so it is very indispensable for the
entrepreneur to face them effectively and achieve their goals and targets(Onetti and et. al., 2012).
Apart from that being positive is very crucial for the successful entrepreneur. Strategies are play
very important role in for increase positivity in the entrepreneur. Good learning capability is
another characteristic which a entrepreneur must have when they conducting business activities.
Learn from past past failure projects is help them reduce the mistakes in future. For achieve
goals and targets it is important for a business person take risk in their business because with out
it a they do not get success in their venture(Nicholls, 2010). This is the responsibility of
entrepreneur to hire skilled and qualified workers so that they can easily achieve their goals and
objectives. To analyse new opportunities for growth and development it is important for the new
business person to identify the changes in the environment so that they can face every situation
easily. Environment is play very important for the success of the venture of the new business
person because opportunities, threats and market trends are existing in the outside of the business
which are greatly affect the operations and activities of the venture. Effective strategies only
made after the proper evaluation of market trends. Apart from that needs and wants of the people

also a important part for a successful company so it is important a good entrepreneur to analyse
the taste and preference of customers so that they can easily sustain for long time in market.
Conduct research programme is also very important for good entrepreneur because it helps to
emerging new creative ideas which are very crucial to use in the business of entrepreneur.
Effective decision making process is also conducted with the help of research. Family
background is also very important aspect for example if a person from business background than
they have in build capability of a good business men. So basically thee are various things which
are very important for good entrepreneur if they want to success in their venture.
P7 Explain the importance of background to enhance the entrepreneurial skills
Any kind of person is initiate business but it is important for that have some qualities
which helps to get success in future time period. Various strategies is important which have to
formulated for achieve the targets and goals. A entrepreneur can also select many strategies
which helps to get them success in future. If business is conducted by the individual than they
can easily achieve their targets without any disturbance. But if business is owned by many
persons than there is chances to arises various obstacles. Background of person is play very
important role for being good and successful entrepreneur. Past experience, skills, competences
are make background of a person(Schaltegger and Wagner, 2011). Motivation level of that kind
of entrepreneurs are high who are from businessmen families. Their past experience are play
very important role for being good business person. Experience have two type positive and
negative so it is important for the person to learn many things from them and apply in current
situation so that chances of mistakes can be reduced. To analyse the background effect on a
entrepreneur UK is conduct a survey in which they identified that thinking and thoughts are
greatly affected by the background. Traits, habits and taste of an individual is show a sign of
successful entrepreneur(Tracey, Phillips and Jarvis, 2011). It is not obvious that a good
entrepreneur are from business background but the skills and abilities can easily enhanced in the
person who have from this background. Positive and negative experience is play very important
role to enhance the skills and competencies of a good entrepreneur. Apart from that effective
action plan and strategies is play very important part because these are used for full fill the
targets of the business. Optimum use if resources is very important for the entrepreneur because
in initial stage they have minimum number of resources. it is important to learn new techniques,
technologies, procedures and system so that business person can easily conduct their operation

and achieve desired goals. For this purpose proper education of a person is very crucial because
to understand the market situations and trends are very important for conduct a venture. If a
business person enhance these kind of qualities and learning they can crate their image and
goodwill in the market.
CONCLUSION
As per this report it can be concluded that every kind of person started the business by
adopting any entrepreneur ventures which are available in the market. When a person start a
business it is common that they has to face many situations which are include in the micro
enterprises. According to this report small businesses are play very important role in the
development and improvement in the economy. Small firms are contribute to increase the gross
domestic products of a nation. Key qualities of good entrepreneur is very important for being
successful(Welter, 2011). At last background of a person is play very important role for
successful entrepreneur because it increase the skills and competencies which are very important
for being good business person.
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.
Entrepreneurship Theory and Practice. 35(1). pp.165-184.
Online
10 Traits All Successful Entrepreneurs Share. 2015. [Online]. Available Through:
<https://www.entrepreneur.com/article/243792 >. [Accessed on 31st
August 2017].