Entrepreneurship & Small Business Management Typologies: Doc

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different types of entrepreneurial ventures and typology.................................................1
P2 Similarities and difference between various entrepreneurial ventures..............................2
LO2..................................................................................................................................................4
P3 Impact of micro business on economy..............................................................................4
P4 Importance of small and start up business in the growth of social economy....................6
LO 3.................................................................................................................................................7
P5 Traits and skills of entrepreneurship which differentiate them from managers................7
P6 Entrepreneurial personality reflect entrepreneurial mindset and motivation....................9
LO 4...............................................................................................................................................10
P7 Background and experience hinders or fosters the entrepreneurship..............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur is the person who start a business with the intention of earn profit, individual
manages considerable amount of risk and establish business successfully. The ability of
individual is known as entrepreneurship. There are many small businesses that contribute well in
economy and social economy development of nation (Pires and Stanton, 2018). Entrepreneur
takes risk, communicate with others and plan activities effectively that support in gaining success
in the market. Present study will discuss different types of entrepreneurial ventures and their
typologies. Furthermore, it will explore similarities and difference between various ventures.
Report will interpret relevant data related to contribution of small business in the development of
economic condition of UK. In addition, assignment will determine skill, traits of successful
entrepreneur and will compare business manager with entrepreneur. Study will explain how
personality reflect mind set and motivation of entrepreneur. At last, it will examine impact of
background and experience on entrepreneurship.
LO 1
P1 Different types of entrepreneurial ventures and typology
Entrepreneurship can be defined as ability of person to develop a business and make it
profitable. Entrepreneur is someone who has innovative ideas and take risk to get new
opportunities that may help in raising sales of organisation (Calic and Mosakowski, 2016). There
are several kinds of entrepreneurial ventures. These are explained as below:
Survival ventures
This is also known as small size companies that have limited resources. The major
agenda of such enterprises is to generate money on day to day bases. Furthermore, survival firms
have to invest own capital or get funds from family to start that business. Such kinds of firms are
not formally registered and have very few assets as well. Survival companies do not have
capabilities to reinvest their money for further expansion. They have limited customer and
operate at domestic level only (Kickul and Lyons, 2016). Travel agents, barber shop are example
of survival ventures.
Managed growth ventures
This is another type of entrepreneurial venture that has stable growth over a period. Such
kind of business are also known as medium size firms that earn profit but has moderate regional
growth. They have adequate funds to run business effectively but they have to manage their
1

financial resources significantly otherwise their profitability may get affected badly. Talent plus
is the example of managed growth ventures (Kautonen, Kibler and Minniti, 2017).
Aggressive growth venture
It is also known as gazelles, these are large business units that use advance technologies
to make better connection with consumers and raising sales of company. They have strong
innovation capabilities and they continuously work for expanding business across the world.
Tesco, McDonald’s are working as aggressive growth ventures. they continuously make changes
in their product and services that support in fulfilling needs of consumers and attracting them
towards the brand. These firms open their branches in new location s so that they can gain higher
profit and can gain competitive advantage (Block and et.al., 2015).
Entrepreneurial typologies
 Scalable typology: This is the type of typology which is implemented by aggressive
growth ventures. Such kind of firms pay attention on innovation and improve their
products and services by implementing unique ideas. They attract investors so that they
can expand their business across the world and can manage risk and capital well
(Thorgren and Wincent, 2015).
 Life style typology: Purpose of this typology is to earn reasonable profit. Such kinds of
typology are implemented by survival business ventures. The primary purpose of lifestyle
venture is to sustain in the market and generate particular level of income.
 Female and male typologies: This is another kind of typology which is implemented by
managed, aggressive both ventures. In such kind of female enterprise female take all the
decisions and in male typology male are responsible for any decision in the organisation
(McKenny and et.al., 2017).
P2 Similarities and difference between various entrepreneurial ventures
Similarities between various ventures
Aggressive, managed and survival all kinds of ventures work to generate profit. They all
want to offer satisfactory goods and services to consumers so that customers can retain in
business for longer duration. Funding is essential element and basic requirement of all these
business units. These are companies require funds to conduct their operations and run business
successfully (Premand and et.al., 2016). Aggressive, managed and survival ventures focus on
product development and improvement by implementing innovative ideas that may help them in
2