Entrepreneurship And Small Business Management [pic] Introduction

Entrepreneurship And Small Business Management [pic] INTRODUCTION Entrepreneurship is identifiedy as an effective and main process of running, designing and establishing a new business, which isoften initiallystarted as a small organisation. LO 1 1 Types of entrepreneurial venture and their interrelationship with its typology An entrepreneur is a person who has willingness and capacity in order to manage, organise and develop a new business. In business environment, different kinds of entrepreneurial ventures which are determined as under: Entrepreneurial venture: This are

Entrepreneurship And
Small Business
Management

Table of Contents

INTRODUCTION
Entrepreneurship is identified as an effective and main process of running, designing and
establishing a new business, which is started as a small organisation. The people who lunch these
type of firm are called entrepreneurs (Abebe, 2014). In addition, it is the capacity and willingness
to organize, manage and create a new venture along with any kind of uncertainty in order to
make profit. Main purpose behind conducting this report is to identify the importance of
entrepreneurship for small organisation and start-up. This report divided into different parts
which cover different types of entrepreneurial ventures and their relation with typology of
entrepreneurship. All types of ventures has similarity and difference which is also determined in
this study. Impact of small business and starts-ups on the growth of economy is also described in
this project. At last, characteristic, threats and skills of a successful entrepreneur is determined
here which highly impact on its mindset and motivation towards lunching a new venture.
LO 1
Types of entrepreneurial venture and their interrelationship with its typology
An entrepreneur is a person who has willingness and capacity to manage, organise and
develop a new business. Entrepreneur has more ability to start new venture and satisfy
customer's needs and wants systematically. In business environment, different kinds of
entrepreneurial ventures which are determined as under:
Entrepreneurial venture: This are identify as an organisation which are managed and run by an
individual in order to utilise chances of market. Entrepreneur have innovative and creative
business plan which they follow to design effective system.
Types of Entrepreneurship
Scalable start-up enterprise: It is another kind of entrepreneurial venture where a people
identifies the chances and cope-up with unique thought to scale up its firm. Such type of business
are mainly establish with a motto to change the globe. Coffee shop, Lawn care business are
consider as a best example of Scalable starts-up enterprise.
Large scale organisation: These are kind of organisation which are mainly grown up and
established via sustaining innovation, offering innovative goods and getting innovation
enterprise. Main motive of large scale enterprise is to achieve maximum amount of capital by
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capturing large number of market share. There are few examples of large scale organisation such
as Waitrose, TESCO, M&S etc.
Small scale enterprise: This type of business is basically operated and owned by sole
proprietors. In this business approximately 50 employees are work with the purpose of achieving
better outcomes. Such kind of organisations only recruit local people and their main motive is to
gain their livelihood. There are some examples of small business such as plumber, hairdressers,
travel agents, consultants etc.
All these are main types of entrepreneurial venture that existing in business environment
and are not same in term of their objectives, gaols and size (Baum, Frese and Baron, 2014). All
these ventures belongs to various typology of entrepreneurship which are determined as under:
Types of entrepreneurs:
Serial entrepreneurs: It is a type of entrepreneur which have unique ideas or plans that
they follow in lunching start-ups. In addition. Serial entrepreneurs are main person who after
operating their business with success further turn on to lunch of their new venture.
Social entrepreneurs: This type of venture start their business for resolving problems of
community. For this, they need to concentrate their efforts and knowledge to give services to
persons, thereby satisfy their demands and requirements.
Female entrepreneur: Female entrepreneur has more knowledge and skill to operate and
run their business in successful manner. Main motive of this venture is to used their capabilities
and achieve maximum amount of capital for keeping their living standards (Blackburn, Hart and
Wainwright, 2013).
Male entrepreneur: It is type of entrepreneur that has entire power to establish and run
their business operations in appropriate manner.
Diverse range of entrepreneurial ventures
Typology: A classification as per the general type, particularly in archaeology, social
sciences or psychology of the study and interpret. It introduce as a type of entrepreneurship and
its relation with the entrepreneur venture. There are some types of ventures which are determined
as under:
Managed growth ventures: These are business which are run and started by a person in
order to implement creative and innovative business ideas. This support them to raise business
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activities and provide better quality in product and services to the customers. Thus, business
position superior than competitors products with better market share.
Lifestyle ventures: This are organisation which are controlled and managed by a person
to generate maximum amount of capital for retaining their livelihood. In this, person needs to
have better capabilities and skills in order to deliver effective services and products to customer
(Burns and Dewhurst, 2016). Therefore, this support them to handle their living standards by
buying goods in regrades to their needs.
Social enterprises: It is a type of organisation that emphasis on developing and offering
services or products that support in solving the issue of society. This type of organisation mainly
work for the development and welfare of community (Ahlstrom and Ding, 2014). These business
can be hybrid, not for profit and profit enterprise that are implanted after analysing requirement
of community. Allen Carr’s Easyway, Angaza Design, BioLit, Community Shop etc., are know
as one of the best example of such type of venture.
Critically examine the scope, development and growth of entrepreneurial ventures.
All entrepreneurial venture has scope, development and growth which contribute in
success of UK economy positively or negatively. All these help by providing job opportunities to
those people who are unemployed. It is a positive impact but it also has negative impact. Some
58% of Northern Ireland SMEs and approximately 22% of Republic of study the most
pessimistic regading life after the United Kingdom leaves the European Union. The percentage
of NI SMEs who think Brexit will have a negative impact on their business.
Similarities and differences between entrepreneurial ventures
Above discussed all entrepreneurial ventures has different similarities and differences
which are determined as under:
Similarities and difference between small and social entrepreneurial venture
Similarities Difference
These are type of ventures which have
sufficient amount of resources and needed to
be utilised in proper manner. For this, person
need to have appropriate capability and skill to
design effective system and execute business
Small business such as plumber, hairdressers,
travel agents, consultants etc., are run and
started by a person in order to gain appropriate
amount of capital for keeping their living
standards. Social organisation are managed and
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function effectively (Sburns, 2016). incorporated by a person for development of
community.
Similarities and difference between Scalable start-ups and large entrepreneurial venture
Similarities Difference
Both type of ventures are conducting their
business operations as per the situation arising
in marketplace to retain better position in
market via innovative efforts.
Large venture have better amount of resources
which support an entrepreneur to conduct
activities in effective manner and deliver better
variety in their services and products to
customer. Scalable-start-ups do not have
appropriate amount of capital, manpower and
material which have impact on business
operations.
Similarities and difference between Lifestyles and serial venture
Similarities Difference
Serial and lifestyle venture support a person to
apply their capabilities and skills in order to
design an effective system and organise
business operations in an effective and
efficient manner.
Lifestyle venture is a type of business which
are managed and operate by an individual
generate maximum amount of fund for
retaining their living standards (Carsrud and
Brännback, 2011). On the other hand, serial
venture business are incorporated and run by
an entrepreneur to follow their knowledge to
develop creative business ideas, thereby move
to sell business to another people in order to
make them business operations accordingly.
Similarities and difference between Male and female entrepreneurial venture
Similarities Difference
Both woman and male entrepreneur are
creative and hard working which support them
Male entrepreneur are emphasised and
identified to organise business activities
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to achieve better results and retain long run
sustainability at marketplace. Main aim of both
venture is to follow their skills to get effective
outcomes from business (Chrisman and et. al.,
2012).
effectively and gain sufficient amount of
capital from their business. While women
entrepreneur are sensible and ambitious to
choose opinion and make better decision for
the success of firm.
Differences small, medium and large businesses
Basis Small business Scalable start up Large company
Definition It is small-sized
organisation which
needs low investment
due to running and
operating at small
scale.
It is an another type of
business which is run
to accomplish its
vision and mission
with accurate planning
and strategies.
It is the organisation
which are having
limited cycle that
chiefly focus on
bringing innovative
products and services
as per the changing
needs and
requirements.
Characteristics It needs limited
resources in order to
operate business
without acquiring
more interference by
government.
It chiefly focus on
making more venture
capital to enlarge
business to large scale
within any shorter
period of time.
It is refer as an
ongoing process which
modify according to
the changes in needs
customers.
Critically examine how small businesses have an impact on different levels of the economy
Impact on Small and medium size organisation on United Kingdom: In UK, there are
approximately 5.7 million small organisation in 2017 (Micro and small-business ventures, 2017).
Around 99% firms are dependent on such enterprise which maximise employment chances for
the unemployed people. Along with this, micro organisation consists approx 96% share of
market that is around 5.4 million.
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Local Impact: SMEs have strong and direct effect on raising growth of country's
economy by increasing employment possibility for the public thus, large number of person are
capable to gain appropriate money for their livelihood which output in welfare of society
(Dennis Jr, 2011).
Regional impact: In this Small and medium size of organisation play important role by
providing quality products and services to the people according to its needs and demands. Thus it
directly impact on growth and success of economy.
National impact: SMEs have chances to maximise customer base and market share by
enlarging their business operations in various nations. Small business effect on country in
positive manner by providing opportunities to citizen to fulfil their financial requirement.
LO 2
Impact of micro and small businesses over economy
There are mainly three types of organisation such as small, medium and large. All this are
existing in environment and support legal in development and growth of economy. These
business are managed and start by a person with purpose to gain maximum amount of capital for
retaining their living standards (Cucculelli and Bettinelli, 2015). All these business are important
for the country by providing job opportunities to the unemployed people.
Contribution of small and micro organisation in the growth and success of United
Kingdom are described as under:
Particular Micro-Enterprises Micro-Enterprises Medium sized
Enterprises
Number of employees <10 <50 <250
Assets ≤ £2 m ≤ £10 m ≤ £50 m
Annual Sales ≤ £2 m ≤ £10 m ≤ £43 m
Different number of advantages that start-ups and small business have on market
situation of United Kingdom. Some benefits are determined as under:
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Illustration 1: Impact of small and micro business
(Source: Impact of small and micro business, 2018)
As per the above mentioned information it has been determined that small and micro business
have maximised employment opportunities for the country. It is very essential for the economic
growth or development and support to develop faster. Beside this, small business are
contributing approximately 40% in the employment improvement of United Kingdom which is a
positive effect of these businesses.
Development of infrastructure: It is a main advantage that both type of business have on
development and success of economy (Drucker, 2014). This support legal authority to have
proper figure of tax applied by them in order to create effective infrastructure of United
Kingdom that are bridges, university, roads etc., leading or directing to upliftment of the
community as an entire.
Development of employment opportunities: In United Kingdom, there are different
number of new ventures and small organisations which support legal authority to develop growth
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of country by maximising job chances for public. Large number of person have employment
opportunity to generate accurate amount of fund for retaining their living standards. In 2010-
2015, employment in UK rise where approx 1.8 million national got employed in different
SMEs.
GDP contribution, import & export and innovations: There is a lack of monetary
resources as well as ideas in micro enterprise but they are having better knowledge and effective
knowledge that assist to manage entire operational activities of an organisation. As they have
sufficient resources but this does not impact their gainfulness they are increasing good profits.
Thus, it also impact on GDP contributions and import and export in direct manner.
Small firms and start-ups contribute to growth of social economy after 'Brexit'
Brexit is an abbreviation for British exit from the EU is the impending withdrawal of the
UK from the EU. In this voting process is organised by legal authority to take appropriate
opinion of public (Fassin, Van Rossem and Buelens, 2011). Output of this is different number of
person voted against European Union and in favour of United Kingdom. Due to Brexit, the
currency of the country fluctuates and reach its lowest value against the dollar and consequently
prime minister of UK resigned their post thus creating more deteriorating conditions for the
country. Former home secretary become the prime minister of the country after resigning from
their previous job.
Start-ups and small organisation contribute more in the growth and development of
economy. Some contribution of both organisations are determined as under:
Enhancement of social security: It is identify as an important and useful advantages
which start-ups and small firm have is substance of income stability of situation of United
Kingdom's economy. This support large number of person to have constant income even while
retirement, death, disability situation etc.
Social and economic development: Both such as start-ups and small organisation are
known as powerhouse of nation (Fatoki, 2014). These business support the UK government to
output in increment of growth and inflation of economy by increasing employment chances to
the public. Therefore society has appropriate amount of capital to purchase service and products,
thereby satisfy their needs and wants.
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Reduction in Poverty: Small business and Stratus also help economic by providing job
opportunities to the unemployed people. Thus, it help in reduction of poverty and support to
work for growth and success of economic.
LO 3
Characteristics, traits and skills of successful entrepreneurs that differentiate them from others
Entrepreneurs has strong and effective communication quality to motivate employees and
sell the products to the customers (Drucker, P., 2014). Richard Branson and James Dyson are
two successful entrepreneur. Both are competent and knowledgeable in order to sustain strong
image of their business in market.
 Richard Branson and James Dyson have better knowledge regarding theories and
concepts of management which support them in order to frame proper objectives and
goals for business (Dennis Jr, 2011). Both entrepreneurs are hard working and have proper determination about how to execute
activities and deliver better services and product quality to customer in order to maintain
goodwill and image of company in regards to challengers (Fayolle and Liñán, 2014).
Differentiation of characteristic of successful entrepreneurs with business manager
Skills/ Characteristic Entrepreneur Manager
Critical Thinking Entrepreneur frame unique and
effective ideas which highly
support them in order to
organise business operations
systematically (George and
Bock, 2011). Therefore,
James Dyson is capable to
develop strong image and
position of their business in
marketplace.
Manager needs to remain
favourable to lead employees
and make them activities and
operations effectively. Beside
this, they even need to
formulate appropriate policies
and strategies which make
business environment positive
for workforce to retain their
relation for longer time period.
Strategic vision: Vision of an entrepreneur is to
create invention in
organisation for developing
Manager is given vision by
upper level management which
support them to implement
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appropriate goodwill and
image in marketplace. Richard
Branson and James Dyson
have strong vision in order to
organise business operations
properly and enhance goodwill
at market (Fassin, Van Rossem
and Buelens, 2011).
business strategies and handle
resources for firm operation in
order to occur in successfully.
Different lines of argument relating to entrepreneurial characteristics.
Both entrepreneurs such as Richard Branson and James Dyson has different background
and experience that highly impact on their personality and motivation directly. Richard Branson
and James Dyson have ability to find out market possibility or chances to organise business
operations appropriately. Bot entrepreneurs are able to take risk and make appropriate decision
towards achievement of long term goals and objectives within predetermined time period.
Characteristic traits, skills and motivational drivers of successful entrepreneurs,
Richard Branson and James Dyson have skills to analyse market trends as well as
requirements so as to accomplish competitive opportunities within predetermined time period. It
benefited them to run business functions in more effective and accurate manner. They both
always tried to increase new skills and knowing from the past experience which bring forth new
and unique ideas so that innovative developed products can be present into market for the
satisfaction of necessarily and requirements of targeted clients.
Aspects of entrepreneurial personality that reflect entrepreneurial motivation and mind-set
Each and every entrepreneur require to have proper personality in order to maintain and
establish strong relation with customer or employees for development of business operations
effectively (Abebe, 2014). Beside this big five model of personality is more useful and valuable
which is determined as under:
Big Five model of personality: It is an effective concept and framework which specifies
attribute that an entrepreneur need to have to get successful which are expressed below:
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Illustration 2: Big five personality traits
(Source: Big five personality traits, 2018)
 Openness to experience: It has different parts such as aesthetic sensitivity,intellectual
curiosity, attentiveness and active imagination. An entrepreneur need to have such type of
traits in order to make business operations successful. Beside this, they even necessitate
to be open oriented that is fit to learn innovative things and take many situation to
heighten functioning of organisation (Ahlstrom and Ding, 2014).
 Conscientiousness: It is another trait describe that entrepreneur need to be emphasised
and ascertained to accomplish business objectives and goals. Along with this, plan is
developed to lead staff members and create them to perform tasks and activities in
organised way (Aspects of Entrepreneurial personality, 2017). Therefore, business
resources are applied by entrepreneurs in proper and effective manner.
 Extraversion: This is another and main trait which a business person necessitate to have
for developing better and strong position and goodwill of an organisation in market. It is
essential that they are assertive, energetic, social and talkative in order to maintain
relations with employees and many other person to retain their workforce and clients for
longer time.
 Agreeableness: It is essential trait which is require by each and every entrepreneur to
coordinate team members about completing all activities and work within given time
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period (Baum, Frese and Baron, 2014). They necessitate to be trustworthy, coordinate
and cooperative subordinates to deliver activities and done targets in given time.
 Neuroticism: This is important and significant that an entrepreneur is emphasised and
behave with employees positively. An individual need to retain their sensitivity that are
anxiety, stressors and anger which might impact business functioning. Beside this, they
even necessity to retain themselves free from stress for keeping positive and friendly
working environment in an enterprise.
LO 4
How Background and experience either hinder or foster an entrepreneur
Experience and background of the entrepreneurs highly hinder or foster on entrepreneur
while they decide top lunch new venture. Therefore background and experience of James Dyson
and Richard Branson are determined as under and its impact on them: Education: It is another part which highly effect on individual mind while they lunch a
new venture. Richard Branson and James Dyson are two successful enterpriser who have
better skills and knowledge like delegation of work, excellent communication capability
and leadership quality. All this quality support them to manage entire resources in an
appropriate and accurate manner. Beside this, level of management support an
entrepreneur to raise communication and leadership skills for manage entire team
members in appropriate manner.
 Social Network: This is needed by each and every entrepreneur in order to have
extrovert and effective personality which assist them in attracting more customers. It is
important part for the entrepreneur's future growth and success. Richard Branson and
James Dyson have attractive or effective personality which is highly essential for them to
influence stakeholders for capitalising sufficient amount of capital in business. Beside
this, socially activeness supports them in retaining favourable and positive connection
with the workforce (Ahlstrom and Ding, 2014). This enhance level of performance of
workers and also encourages them to give their valuable opinion which are more essential
and beneficial for business's development and growth.
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Link between entrepreneurial characteristics and the influence of personal background
Both the entrepreneurs have seen difficult situations or conditions in their life which
prompt them to imaging big so as to keep such conditions in future. Beside this, they always
tried to create new and unique ideas which develops their business more successful. They have
knowing from their previous experiences and knowledge which will be essential for them to
attain growth in future. Critical Thinking and Strategic vision are identify as a best characteristic
which influence on employees mind set and motivation directly.
Background and experience influences entrepreneurs Family Background: It is essential for the career and growth of an individual. Richard
Branson and James Dyson are belong with family business background. This supports
both enterpriser in accomplishing business success and growth within predetermined time
period (Blackburn, Hart and Wainwright, 2013). Beside with this, they obtain valuable
counsel from previous experiences and knowledge of their parents. Family background
support both entrepreneurs to organise business in successful manner and retain strong
image in marketplace.
 Experience: Richard Branson and James Dyson have better experience in field of
entrepreneurship which is also essential for them to easily run business successfully.
Thus, it help them to maintain strong goodwill and position in market as well as achieve
better outcomes for organisation.
CONCLUSION
From the above mentioned information, it can be concluded that entrepreneurship is
important and essential for an individual to become rich in life. It is also significant for financial
wealth and freedom. Small business and start-ups are important for the growth and development
of economy. It is also essential for the unemployed people by providing better job opportunities
to them. Along with this, successful entrepreneurs has different characteristic, skills and threats
which highly impact on its motivation and mindset when they decide to establishing a new
venture. Education and family background is also effect on their mindset while they lunch a new
business at marketplace.
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REFERENCES
Books and Journals
Online
Micro and small-business ventures. 2017. [Online]. Available
through:<https://www.smallbusinessbank.com/about/micro-vs-small-business/ >.
Aspects of Entrepreneurial personality. 2017. [Online].Available
through:<http://smallbusiness.chron.com/important-small-businesses-local-economies-
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5251.html>.
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