Small Business and Entrepreneurship Review

The provided assignment is a compilation of academic papers and research studies related to small business management and entrepreneurship. It covers topics such as success criteria for small business owners, entrepreneur education, and the impact of public policy on entrepreneurship. The assignment also includes statistics on small businesses in the UK and an analysis of the psychological price of entrepreneurship. This review aims to provide a comprehensive understanding of small business management and entrepreneurship, highlighting key concepts and research findings.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Different types of venture and typology of entrepreneurship...........................................1
P2 Similarities and differences among entrepreneurial ventures...........................................4
P3 Impact of small and medium enterprise on economy.......................................................6
P4 Importance of small business and start-ups in social economic growth...........................7
TASK2.............................................................................................................................................8
P5 Characteristic and traits of entrepreneur...........................................................................8
P6 Aspects of entrepreneurial personality development in individuals motivation..............9
P7 Individual past experience foster and hinder business......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is an important aspects for growth of new start-up which involves group
of activities that are carried out by person who is highly motivated to bring his new ideas in a
market to earn profit or achieve mission of its implementation in practice. The person is
passionate to attract more customers by making effective analysis of growth opportunities and
risk bearing capabilities (Blackburn, Hart and Wainwright, 2013). Entrepreneurial venture can be
necessity driven or it may be opportunity driven leading to establishment of an successful
business enterprise. This contributes largely in growth of country and social economy.
This report carries out an intense study about different entrepreneurial ventures and
various typology of entrepreneurship. This assignment also make an study of factors and
characteristics that affects motivation level of an entrepreneur while developing an successful
business entity.
TASK1
P1 Different types of venture and typology of entrepreneurship.
The entrepreneurship is the process of carrying out various activities in order to manage a
new business in market. This involves implementing various strategies in order to implement his
idea as a new innovation in market while establishing new enterprise with applying new
technology in current market scenario. This involves effective utilisation of available resources
along with efficient utilisation of human resource capabilities available to owner in order to
establish a new profitable market.
Entrepreneur is the person who is having ability to undertake. The meaning of
entrepreneur itself is to undertake. This can be defined as the person who is ready to take and
consider new ideas and ready to access this idea in market to develop new business by analysing
risk and opportunities that are available to individual (Bridge and O'Neill, 2012). The person is
having capability to take risk and utilise growth opportunities This leads to development of new
business confidently by working motivationally and passionately with the new ideas that are to
be implemented by person in practice.
Entrepreneurial venture can be defined as business establishment that is developed by an
entrepreneur. This venture may be necessity driven or opportunity driven depending upon the
motivation of owner behind the establishment of institution. Traditional definition of an
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enterprise or venture is starting a new business in new market. But today scenario is changing
continuously it is not necessary that every new start up is small businesses. The various types of
entrepreneurial ventures are defined below:
Survival Venture: This is the venture that is establishes by the owner of business in order
to survive in this competitive world. These types of entrepreneurial venture are mostly necessity
driven to live a good life to fulfil all basic needs owner and its family both. These are mostly
local small business that are only running their firms in small areas (Burns, 2010). This business
are achieving their sales target by world of mouth strategies of marketing and by building good
relationship in community.
Lifestyle Venture: These are the venture that are developed by an entrepreneur in order to
increase sales of business so that the person can spend leisure time thorough higher earning and
provide a better life to his family and education to their children. This is also necessity driven
ventures but they are ready to grab growth opportunities that are available to them by analysing
changing of customers.
Managed Growth Venture: This is opportunity driven entrepreneurial venture
established by a person by grabbing various growth possibilities. The individual ready to take
chances and risk that are available to him in changing season and customers needs. The person
run its businesses in transient states. Entrepreneur continuously moves to new opportunity by
establishing small start-ups in different localities due to seasonal and festive changes.
Aggressive Growth Venture: These businesses shows exponential growth in market
scenario. These business are earning higher amount of profitability through expanding its
entrepreneurial venture exponentially. These are self managed and regulated ventures by the
owner through various technological implementation and strategic development by entrepreneur.
Serial entrepreneurial venture: This type of entrepreneurial venture are full of new
ideas. This entrepreneur do not stick to a single idea (Carraher and Paridon, 2015). Person
develop various series of innovative ideas in processes and establish various successful
businesses. For example Niklas Zennstrom and Janus fris are owner of serial entrepreneurial
venture that are developed through constantly by various innovative ideas like Vdio, Rdio, Skype
in market.
Women entrepreneurial venture: This venture are established an run by women or group
of women. These types of ventures are multitasking firms and involved in managing various task
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efficiently to enhance profitability of firm. Limor Fried is owner of Adafruit company
established in UK market by an women entrepreneur. This company is engaged in developing
various types of new technological products to ease customers daily life functions.
Social entrepreneurial venture: These are the ventures that are established by person
who is motivated to help minorities of society and involved social and environment welfare of
country and world. These ventures do not work for profit earning but they work in order to help
various groups of community of countries. Wecyclers us the company who works for
maintaining a good healthy environment in society by recycling waste of society and converting
it into renewable energy sources (The Psychological Price of Entrepreneurship, 2017).
The various types of entrepreneurship that can be defined on the basis of development of
different typology of ventures established by person inn order to develop new innovative ideas in
market are as follows:
Venture financing Entrepreneurship: This is the process of establishing and maintaining
a firm which is financial balanced and funding is its growing strength in market. This involves
implementation of various strategies in order to maintain funds of organisation efficiently by
entrepreneur.
Corporate Entrepreneurship: This is the defines entrepreneurial skills utilised in
developing an successful large scale business efficiently to enhance its profitability by various
entrepreneurial activities and strategies.
Global Entrepreneurship: This is group if new innovative strategies and application of
various technological tools in organisation in order to expend firm business in number of
countries globally.
Private Sector Entrepreneurship: This are the ventures which privately owned firms that
are regulated by person in order to enhance probability of firm through development of various
innovative ideas in commercial business (Chittithaworn and et. al., 2011).
Public Sector Entrepreneurship: These are the firms that is regulated by government.
But now in developing countries it is found that these ventures are also needing to enhance
entrepreneurship in their business practice in order to serve citizen of country with new product
and better facilities.
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P2 Similarities and differences among entrepreneurial ventures.
These entrepreneurial ventures share some of similarities and differences with each other
depending upon their motives to carry out businesses and their target markets. Some of the
similarities that are shared by private, public and social enterprise are as follows: Risk taking: There is a risk in every investment that is done by a business. The
entrepreneur is having take risk and convert this in a profitable decision for the firm
(Dennis Jr, 2011). Time management: Private, Public and Social ventures are able to mange their time
according to assigned tasks and the objective and goals that are to be achieved while
running an business.
 Innovation and creativity: Every business is full of creative ideas and ability to develop
these ideas into practice to achieve respective goals of organisation.
Characteristics Private Enterprise Public Enterprise Social Enterprise
Mission The main objectives
is to earn more
profitability of firm.
Mission of this is to
serve the citizen of
country better.
Objective is to work for
welfare of society.
Roles The role of private
enterprise is to
increase economic
growth of country.
These ventures are
having main function
is to serve citizen of
country with new
facilities.
This functions as to serve
community with new
technology and products
to helps the person and
development of society.
Value of
enterprise
This is valued for
corporate.
Its profitability turns
value for public.
This is involved in
creation value for
corporate, social and
public.
Stakeholders  Owner
 Partners
 Shareholders
 Employees
 Government
 Citizens
 Society people
 Social workers
 Founder
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Characteristics Private Enterprise Public Enterprise Social Enterprise
 Suppliers etc.
Target customers Business segment
various groups of
customers to target
consumer needs.
Ultimate consumer of
services are citizen if
country.
These businesses target
various society and
communities.
Women and men entrepreneurial ventures is having some differences as these firms are
ran by opposite gender and having various characteristics in developing business. But as acting
as entrepreneur they share some of similarities that are as follows: Self belief and hard working: Every entrepreneur is having belief in himself that he/she
is able to run a business successfully and he is passionate and hard working towards their
goals an objective of an entrepreneurial ventures (Fassin, Van Rossem and Buelens,
2011). Money management: Entrepreneur is able to manage their funds appropriately in order to
achieve strategic investment in various activities of business firm and control their costs
through effective management of operations and fund available to company.
 Motivation: The person who is wanting to start his business is highly motivated to
express his idea in market and turn it into a successful and profitable firm.
Small, medium and large entrepreneurial ventures creates a difference in their size,
number of employee and complexities in processes. The characteristics which differentiate
various types of ventures are as follows:
Micro business: These business are the firm which is having less than 10 employees
working with venture and established in local area to carry out basic activities of an commercial
organisation to earn small amount of profitability. The task are not managed appropriately in
these types of businesses. Micro entrepreneurial business are mostly owned by single person or
family members. These are mostly family businesses and funds are collected from various
relatives and local financier of area. Turnover of these institution are about 2 million euros as
defined by EU association in UK country.
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Small businesses: According to data given by EU association it can be defined as that
Small size ventures are having employment number ranging to 50 employees and turnover is of
10 million euros yearly approximately (Gorgievski, Ascalon and Stephan, 2011).
Medium businesses: These medium size organisation profits about developing 100
million euros turnover accomplishing about 250 employees in firm. This venture is dealing in
different regions of country and more complex structure as compared to small and micro
enterprises. This contributes in development of country economy largely.
Large ventures: The large size entities is growing and highly profitable firms. This
contributes in growth of economy of country largely. These organisation may be dealing within
other countries also. The large business are having more than 250 employees and working for
achieving huge amount of turnover rate for organisation growth.
P3 Impact of small and medium enterprise on economy.
The small and medium business contributes largely in development of economy for
country to large extent. Government of UK also engaged in promoting various types of small and
medium sized entrepreneurial venture in order to enhanced GDP growth of country. Federation
of small Business (FSB) is motivating small sized and micro business to grow for development
of local areas of country along with urban cities. About 95% of the UK businesses are small and
micro business which constitutes about 28 million companies approximately involved in
providing basic product to local market and nearby markets (Lee-Ross and Lashley, 2010).
These business are requiring less amount of funds and easy to run these types if companies in
smaller localities. This is the major part of commercial firm which contributes largely in
economic growth of state.
SME is the another part of businesses firms that also highly affects economy of country.
According to James McAllister defined in article The importance of small businesses in the
economy (2016) that SMEs constitutes about 99% of business that are registered in UK. These
business are mostly industries and manufacturing unit of country. As surveyed in UK small
business statistics by National federation of Self employed and small business limited (2016) that
SMEs involved in providing employment to about 15.7 million people of country that is 60% of
private sector employment rate in country. This high amount of employment rate helps the
society people to live life of prosperity and leisure life through providing earning source while
working in small and medium size enterprise. These organisation are engaged in developing a
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large numbers of areas and localities even states of country through practising their innovative
ideas in market. Hampshire County council that is supporting SME firms of country to large
extent and decides to invest about 402 million euros in development of these businesses in
country to increase revenue generation, GDP of country and enchaining standard of living of
country people by providing large source of income and employment in state.
P4 Importance of small business and start-ups in social economic growth.
Small Business: These ventures are the type firm which is having less number of
employee working only in small area serving their services and products. These business are
following traditional approaches to carry out business activities successfully.
Start-ups: While the start-ups may be small enterprise of large with having new
innovative idea that have to be executed in practical market inn order to develop a new market
base for development of firm. Start-up can be an part of another bigger organisation and
dependent on funding resources from it and functioning individually in order to establish a new
market for new product and services of start-up.
Small business and start-ups contributes largely in growth of increasing social economy.
These businesses are engaged in developing social lives of their locality. These business are
situated in local market and small in size (Ligthelm, 2010). They make use of word of mouth and
personal relationship in order to earn portability. Small venture and start-ups contributes largely
in growth of social economy in local areas. The importance of small and micro enterprises can be
studies through it various affect of growth on social economy. Some of influence of small firms
over the social economy are as follows: Contribution: These business are having large contribution in economic growth of
smaller society by introducing new innovative products in local areas. This contributes in
increasing standards of life of people by providing various new product to customer to
ease their life. Increased employment are through small business also contributes in
development of people life through increasing their expanding capabilities in various
basic and esteem needs. Competitive Advantage: Small firms requires low amount of funding to start-up. So,
there is huge number of business that are running their firm successfully in small local
markets (Neck and Greene, 2011). This existence of large amount of micro enterprises
leads to increase in competitiveness of market and helps in creating a good competitive
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environment among various ventures. This also attracts foreign investor to invest in
country and provide better growth opportunities entrepreneurial business entities.
 Employment: Employment is major constituent for growth of social economy as well as
country economy as a while. As stated by James McAllister defined in article The
importance of small businesses in the economy (2016) that SMEs Small business
contributes in approximately 40% to 60% of employment rate in UK independently. This
helps in increasing growth of economy to large extent. This also leads to increase in
funding sources in smaller social economy because of large number of earning through
small business in country.
TASK2
P5 Characteristic and traits of entrepreneur.
Entrepreneur is person who is able to take risk in order to implement his idea in practice
top earn profit over it. Every entrepreneur is having different motivation to do work and are
highly passionate toward their jobs. These person have variety of characteristics that are shown
by individual while developing an successful enterprise. Some of the traits and characteristics of
entrepreneur are as follows:
Risk taking ability: Every entrepreneur is having risk bearing ability in order to create a
new niche market for its innovative product (Nga and Shamuganathan, 2010). For ex. Shark tank
is an enterpriser who owes a real estate of having risk of 1000 dollar loan and convert his
decision into profitable one by making about 66 million dollar.
Failure is part of the life: Every successful person accept the fact that failure is part of
life that are to be dealt with confidence to make it into profit. Like CEO of virgin mobiles
develops various innovative ideas through experimenting various combination of product like
virgin cola, virgin clothes which were big failure but he consistently keep trying to innovate new
successful ideas by learning from failures.
Passionate: The entrepreneur is passionate towards their ideas and work and utilise all
possible opportunity to develop a successful business.
Management skills: The person is having good management skills in order to manage all
task according to opportunities and risk, able to manage funds an resources of organisation
effectively to make more profit through reducing wastage and losses (Preuss, 2011).
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Ability to sell and promote: Entrepreneur is person who is having traits to express his
ideas confidently and able to sell its product efficiently. Apple founder Steve jobs is having
quality to sell its products and promote their services effectively.
P6 Aspects of entrepreneurial personality development in individuals motivation.
Personalty development of entrepreneurs affects motivation level of person to large
extent. Personalty of person is influenced by many factors like family up-brining, education,
sociocultural development and other factors like family conditions. For example person leaving
in a family who is having own business is more likely to develop personality to become a
successful entrepreneur. These person are able to make effective decision in contingent problem
through learning from their family up bringing (Schaper and et. al., 2014). Sometimes society,
age, preferences, demographic factors affects motivation level of individual to start an businesses
to large extent. Educational and technological advancement is having major influence on
motivation as education and technology both helps in effective development of new ideas by a
person. The entrepreneurial positionality can be defined as the characteristics and competencies
of an individual which brings an distinction in him from others to be an entrepreneur. The
OCEAN theory defines effect of various personality characteristics of person which effects
behaviour like Experience, conscientiousness, extraversion, agreeableness and neuroticism all
defines various characteristics which influence behavioural personality of entrepreneurial
characteristics.
P7 Individual past experience foster and hinder business.
Past experience and person background affects individual motivation to start a business to
large extent. Past experience of an person may foster or hinder of being and entrepreneur. A
person who face large amount of failure in his life while developing new business through
innovative ideas may be demotivated to succeed further which hinder the establishment of
successful business (Shane, 2012). While sometimes person learns from past experiences and
experiences and come with an successful innovative products that attracts market customers in
large numbers and fosters the business success. Mark Zuckerberg, Steve jobs, CEO of virgin
mobiles are the entrepreneurs who learns from their past experiences and come up with a
successful profitable business. CEO of virgin mobiles learns from his failure in their innovative
ideas and develop a profitable product for firm (Stokes, Wilson and Wilson, 2010). While Steve
jobs was passionate towards his works and he continuously work for his ideas and products to
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make it a successful business. So, personalty and past experience of person largely affects the
foster and failure of an business enterprises largely.
CONCLUSION
It can be concluded from above report, entrepreneurship is an important aspects that
affects largely to development of country and its economic growth. Small and medium size
enterprises contributes in huge amount of growth in employment and GDP of country. This
increases the expenditure capabilities of people of country and helps them to live life of
enhanced standards. This can also be concluded from assignment that various entrepreneurial
ventures like private, public and social firms works for various motives and involved in growth
of country as well as society.
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REFERENCES
Books and Journal
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Chittithaworn, C., and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Gorgievski, M.J., Ascalon, M.E. and Stephan, U., 2011. Small business owners' success criteria,
a values approach to personal differences. Journal of Small Business Management.
49(2). pp.207-232.
Lee-Ross, D. and Lashley, C., 2010. Entrepreneurship and small business management in the
hospitality industry. Routledge.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
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.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Schaper, M.T., and et. al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
20.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Online
James McAllister. 2016. [Online]. Available through:
<https://www.makeitcheaper.com/blog/the-role-of-small-businesses-in-the-uk-
economy.aspx>. [Accessed on 29th June 2017].
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The Psychological Price of Entrepreneurship. 2017. [Online]. Available through:
<https://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-
entrepreneurship.html>. [Accessed on 29th June 2017].
UK small business statistics. 2016. [Online]. Available through: <https://www.fsb.org.uk/media-
centre/small-business-statistics>. [Accessed on 29th June 2017].
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