Entrepreneurship and Small Business Management

This assignment explores the concepts of entrepreneurship and small business management, discussing various aspects such as entrepreneurial mindset, motivation level, regulatory modes, and alertness in small business success. It also examines the role of social entrepreneurship, business ethics, and transformative entrepreneurship in economic and social development. The document provides a summary of key research articles and books related to the topic, along with a list of references for further reading.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types of entrepreneurial ventures and their typologies...........................................1
P2 Similarities and differences between various entrepreneurial ventures.................................2
LO2..................................................................................................................................................5
P3 Impact of micro and small business on economy...................................................................5
P4 Evaluating the importance of small business and start-ups to the growth of the social
economy.......................................................................................................................................6
LO3..................................................................................................................................................7
P5 Characteristics traits and skills of successful entrepreneurs as compared to the other
managers......................................................................................................................................7
P6 Assessing the aspects of entrepreneurial personality which reflects the motivation and
mindset.........................................................................................................................................9
LO4..................................................................................................................................................9
P7 Examining the background and experiences of the entrepreneur that can hinder or foster
the entrepreneurship.....................................................................................................................9
CONCLUSION................................................................................................................................9

INTRODUCTION
Entrepreneur is the person who creates the new ideas and thoughts in order to introduce
the new concept and product within the organization. The process involved in introducing or
innovating new products or services can be referred as a entrepreneurship. Entrepreneurship is
the process of designing and launching a new product and small business management.
Ultimately the people who creates this business are called entrepreneurs. Small business
management is the process which entrepreneurs use while running the business. It may includes
the management of employees, reporting the accurate financial information. Acquiring the
economic resource and decision making.
In addition, this study will provide different types of entrepreneurial venture which are
aimed at varied objectives. It will also explore the typologies of different entrepreneurial
ventures. Along with this differences and similarities between the entrepreneurial ventures are
also determined in this study. Moreover, this document will also helps in identifying the impact
of small business on the social economy. The report will also help in making a clear
understanding about the skills, characteristics and personality traits of the successful
entrepreneurs which reflects their mindset and motivation level.
LO1
P1 Different types of entrepreneurial ventures and their typologies
Entrepreneurship generally focus towards the wide range of enterprise which may be
start-ups and non profit start-ups. The entrepreneurial ventures may vary according to the owned
business, franchise system, IPO's large corporations, public sector agencies (Dana, 2018). So
various researches have identified the creation and development of new commercial ventures. So
according to various recent researches, it has been identified that entrepreneurial ventures can be
classified into four different types of categories such as survival, lifestyle, managed growth and
aggressive growth firms. Also, these entrepreneurial ventures are further classified as So
different entrepreneurial venture are described below:
Survival
This business is not formally registered and also the survival venture have no premises
with less capital in hands. It is a low growth firm as survival mode means cutting costs, laying
off employees, tightening the profit margins and saving the cash. These firm provides the basic
subsistence for the entrepreneur and their family (Cole, 2018). This venture mainly often exists
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to provide for basic personal financial needs in which entrepreneur have less capacity and scope
to reinvest in the business and grow it further.
Survival business generally based on the scalable typology which allows the enterprises
to achieve the scalability of the business which helps in adopting dynamic styles to manage the
business operations.
Lifestyle
A lifestyle business is a business which are set up and run by its founders primarily with
the aim of sustainable growth. This venture produces relatively stable income as compared to the
survival firms. Lifestyle performs its operational activities within a premises which is usually a
single location of the organization. These enterprises generally have limited capacity in growth
and it is hard for the lifestyle venture to achieve the economies of scale. Lifestyle venture also
have constant and limited number of employees (Storey, 2016). Also, in order to maintain the
competitiveness in the market limited reinvestment is made which supports the sustainability of
the firm.
Lifestyle businesses are based on Social typology because this venture is mainly aimed at
customer oriented products and provides the good quality of products and services to the people.
Managed growth
This venture is aimed at achieving the stable growth of the company over the time. Also
this venture seeks to launch occasional new products which supports the sustainable
environment. Managed growth enterprises are seeks to achieve the periodic entry into the new
market in the form of huge expansion which facilitates the growth of employees, brand image,
introduction of new products etc. also, this venture adopts the continues reinvestment in the
business that supports ongoing business development.
Managed growth businesses are mainly adopt the Scalable as well as female typology
which allows them to improve the operations performance of the business (Ribeiro-Soriano,
2017). Because this types of entrepreneurial ventures are aimed at achieving huge scalable
business operations.
Aggressive growth
These ventures are the technology based firms which possess the strong innovation
capabilities. These types of ventures also have large amount of job and wealth creation. Also
Aggressive growth business are capable of developing the company and exchanging the goods
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and services at the international market. This company has various future oriented opportunities
that deals with maximised profitability along with the higher profits.
Aggressive growth business are aimed at adopting scalable typology which so it allows
them to increase the growth and performance of the business (Burch, and et.al., 2016). This
typology allows them to achieve higher profitability and efficient business operations by
employing updated technology within business.
P2 Similarities and differences between various entrepreneurial ventures
Entrepreneurial ventures vary according to the nature and main objectives of the
company. So differences among such different types of firms are can be described below:
Survival Lifestyle Managed Aggressive
These types of
ventures usually earns
the annual growth rate
on the day to day
basis.
Lifestyle ventures earns
only 5% on a weekly or
monthly business
operations.
The annual growth
rate of the Managed
growth ventures are
generally higher as
compared to other
firms which is almost
10 to 15% within 2
years.
Also these types of
ventures generally
consists of high
growth companies
which are highly
innovative in nature
and adopts the
updated technology.
This resulted in more
then 20% of annual
growth rate within
every 5 years.
Survival firms are
mainly adopts the
reactive management
style within the
organization which
allows them to
develop the further
strategies and plan
Lifestyle ventures are
those firms which
adopts tactical
management style
which allows the
managers to adopt best
methods for each
situation that arises
Managers within the
managed growth
venture adopts
strategic management
style (Chell, and et.al.,
2016). this allows the
managers to set the
objectives, analysing
Aggressive growth
companies generally
focus towards the
mixed management
style which is
proactive as well as
strategic. This
management style
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according to the
limited and moderate
earnings.
rather then following
particular standard
procedure.
the overall
performance of the
business. These
strategies helps the
company to compete
in the highly
developed industries in
the market.
helps in improving
every aspects of
business from
marketing to the
improved employee
relation.
Survival venture
cannot earn more
profits so these firms
cannot invest in the
technology.
Lifestyle ventures also
earn less but often
spends limited
investment towards the
improved technology in
order to sustain the
company.
These types of
ventures often updates
the technology
comparatively (Amato,
and et.al., 2017). It
allows them to gain
higher profitability and
market approach.
High investment is
done in the
aggressive growth
firms. This allows
them for the
sustainable growth
and development of
the firm which
derives the successful
enterprise in the
international as well
as nation market.
These enterprises
cannot adopts any
specific organizational
structure as compared
to other
entrepreneurial
ventures.
Lifestyle business
generally follows the
flexible and simple
organizational structure.
Such ventures mainly
follows functional or
centralised
organizational
structure.
High growth or
aggressive growth
business follows
strict and mixed
organizational
structure which
includes functional,
product based and
market based
organizational
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structure.
There are various similarities between different types of entrepreneurial ventures which can be
followed as:
Similarities between Survival and managed Growth venture
 Survival venture is based on their infrastructure and business sophistication. Similarly,
growth ventures might be sub-categorised on the basis of innovation and technology.
 Both the businesses are aimed at earning profits along with the long term sustainability of
the firms.
 Survival firms manage to improve the performance and profitability. Similarly managed
growth business are aimed at improving the overall performance and profitability via
employing the technology.
Similarities between lifestyle and aggressive
 Lifestyle business are as similar to the aggressive growth venture as nature of both the
business is same. Both the ventures are aimed at performing the commercial activities.
 Lifestyle venture raise the fund from the angel investor(Volery and Mazzarol, 2015) .
Although aggressive growth business also raise the fund from the outside sources via
equity and debentures.
 Both the business are also similar to each other as both the firms are innopvate the new
products and developments.
LO2
P3 Impact of micro and small business on economy
Micro business is generally defined as a small business who are employing fewer people
and operates the business activities at small scale. These are the privately owned corporations,
partnership or may be sole proprietorship. Although, Small business is any organization that
employs less then 500 employee. So micro and small business together provides many
opportunities to the people. According to the SBA (Small business Administration), small
business represent almost 99.9 percent of all the US businesses(Dugguh, 2017). Also, it can be
easily identified that small businesses creates 1.9 million jobs in 2015 and within the next three
years, it washas increased up to the great extent. It can be estimated that out of total 58.9 million
employments, there are 30.2 million workers who are employed by the micro and small
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business. This is how the small business contributes towards the economic development of the
country. Importance of small and micro business in overall economy is as follows:
Job creation
According to the results provided by the RSA which have demonstrated that 55 % of
small and and medium sized enterprise don survive more then three years. In spite of this in
2014, 5.2 million of the small and micro businesses continues to grow and resulted in new job
opportunities. And over past 20 years, small businesses created 64% of the new jobs which
accounting as 44% of the total private payroll and this has resulted in huge impact of the small
businesses on economy (Julien, 2018). From the 2000 to 2006 the estimated jobs generated by
the small business are more then 13000.
Employment practices
Small business employees comprises a huge share of employment income as they have
employed almost 80% of the American workforce. Also, small and micro companies are likely
to employ who posses less skills or those workers who are not experienced. More then 50% of
the SME's are admired locally in order to make the coordination between authorities. The toptal
employment has been increased from 5840 to 7152 in the year 2006 which represents almost
18% increased employment as compared to overall employment rate.
High work productivity
Between 30% to 60% of the SME's are innovative while other 10 % are the technology-
based companies (Julien, 2018). So such small and micro organization have contributed towards
the high work productivity in order to match the demands and supply of the product by giving
the employment opportunities to workers.
Contributing to local government with taxes
Small Companies have also influenced the Gross Domestic value of the employees which
is almost 50% in both value added and total gross output. It can be estimated that thriving local
business will generate high levels of revenue which resulted in higher taxes including local
property taxes.
P4 Evaluating the importance of small business and start-ups to the growth of the social
economy
Small business are considered as the backbone of the UK economy which derives the
growth by opening the opportunities in the new market and creating jobs. Small businesses
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contributes towards the social economy in the form of various employment and helps in
increasing the GDP. Also small business and start up companies has also supported the economic
development of the firm. So these start-up and small businesses play the important role in
creation of the wealth and economy for the society (Burns, 2016). Generally small enterprises
and start-ups are the primary source of job creation in many countries. Therefore the overall
contribution of the small and start up businesses to the growth of the economy are as follows:
 The organization for the economic corporation and development (OECD) estimated that
Small businesses employs the maximum people across the world.
 Start-up companies and small business are generally innovative companies which come
up with the new ideas in the market (Entrepreneurial ventures, 2018).
 Also, the small businesses are employing new technologies at the large scale which
supports the country in creating the social economy.
 It can be estimated that SMEs have an important role in the social economy as these
organizations are the primary source of job creation which adopts the dynamics in
productivity growth.
LO3
P5 Characteristics traits and skills of successful entrepreneurs as compared to the other managers
Successful Entrepreneurs are the one who plans to organise and operate a business which
takes the financial risks and achieves the growth and sustainable business with a long term
vision. It also refers to the right attitude towards the business and the determination and grid to
achieve success and the one who have a strong inner drive which helps them in succeeding
(Scarborough, 2016). Below explained are the skills, personality traits and characteristics of the
two successful entrepreneurs as compared to the other managers of the world.
ANDREW CARNAGIE
Andrew Carnegie was a Scottish- American , business entrepreneur, magnate and
philanthropist who lead to the expansion of American Steel industry. He is often identified as
one of the richest people in the history.
Skills
 Leadership quality: The Famous successful posses the strong leadership quality. So this
skill help them in controlling and organising the team effectively. On the other hand
other managers are comparatively fails to lead the team of the organization.
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 Self confidence: It is one of the important skill which motivates the Andrew Carnagie in
developing such a big empire. Other managers have low self confidence which derives
failures in the life of others.
 Openness: This skill helps Andrew in exploring and communicating the innovative ideas
in the world whereas as other managers are less expressive and there is a lack of openness
among them.
 Time management skills: In order to manage the huge tasks within the organization,
Andrew has a strong time management skill which derives him towards the successful
business (Julien, 2018). On the other hand, other managers are unable to manage their
work according to the time management skills.
Characteristics
 Critical thinking: This characteristic The Andrew Carnagie helps him to thinks the
positive aspects as well as consequences of the actions.
 problem Solving: It is one of the important characteristic of Andrew which derives the
successful venture as compared to the other managers.
 Effective communication: This characteristic helps in inspiring and motivating the team
in order to deliver the desired productivity. Whereas lack of communication is the reason
behind the failure of the other managers.
 Artistic interest and Vision: Future oriented and innovative ideas derived from the artistic
interests of the Andrew helps him to bring new concepts in the market to achieve the long
term business objectives and vision.
Personality traits
 Intellectual: This is one of the strong personality traits which allows him to interact
strategies with the other members of the business effectively.
 Emotionality: This trait helps him to reflect the humanitarian personality which allows
him to gain the faith and trust of employees (Julien, 2018).
 Melancholy: This type of personality allows him to get attached with his loved ones even
if he acquired a great success in his life.
RICHARD BRANSON
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Sir Richard Charles Nicholas Branson is an English business is one of the richest and
famous entrepreneur of the world. He is an American business magnate, investor, author,
philanthropist and the humanitarian who controls more then 400 companies.
Characteristics
 Humble attitude: This attitude helps him to behave nicely with the other members in the
group (Julien, 2018). Kindness and humbleness in his nature makes him different from
other managers.
 Empathy in process: Richard Branson never compromise his life with the growth and
success of the business so it makes him different from other managers.
 Caring about people: this characteristic helps him to get attached with the staff members
as well as their family members. As he considered them as his strength.
Skills
 Leadership: This skill allows the Richard Branson to lead the team and motivate them to
accomplish the main objectives. This skills derives him towards the successful
entrepreneur as lack of leadership skill among different managers may be the reason
behind their failure.
 Communication and interpersonal skills: This skill help him to develop the develop the
skills and personality of the staff members.
 Technology: This is one of the important skill of the Richard Branson which motivates
him to update the technological innovation which derives him towards success.
The personality skills
 Focused: This personality trait allow the Richard Branson to focus towards the effective
and efficient operations of the business.
 Creativity: Richard Branson is very creative person which and this trait helps him to
innovate and invent new products and services to become great and successful
entrepreneur of the world.
 Passionate: Richard was so passionate about the hard work as he wanted to achieve
something in his life so he was passionate about it from the early stage.
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P6 Assessing the aspects of entrepreneurial personality which reflects the motivation and
mindset
Entrepreneurial personality traits are the one which derives them towards the sound
personality of the person which reflects the motivated and inspired attitude of the individual.
Entrepreneurial mindset refers to the specific state of mind which provokes the mind of the
person towards entrepreneurial activities and outcome. Entrepreneurial mindset are often drawn
to opportunities, innovation and new value creation which fosters him to become a successful
entrepreneur in life.
Also the famous and successful entrepreneurs are focused towards the their achievements
and goals in order to derive the success in the business. It reflects the motivational and inspired
character of the entrepreneur and thus they strongly apply their skills in managing and effectively
organization the staff members within the organization.
LO4
P7 Background and experience of an entrepreneur
Richard Branson is a successful entrepreneur who has founded Virgin group and has its
operation in more than 400 companies. Branson is not good in studies and has poor academic
performance so his classmate tease him for getting poor marks in school days. He gets
demotivated from this type of behaviour of its classmate but his parents are with him. He is not
feeling good that his academic performance is not good (Kirzner, 2015). Then his parents helps
in motivating him to do work. It is not good to think about marks every person is not good in
studies but everyone has talent to do something good in the future. Then he gets motivated from
his parents and launched a magazine named as Student.
In overnight he gets success from his magazine that teaches him that there is no starting
point in getting success so don't get frustrated with failure and always try to do something new
that will enhance your knowledge as well as become best experience of life. He faces many
difficulties in introducing its magazine in the market but after practising again and again he
successfully launched its magazine. He gets motivation from his mother as she was also a
successful entrepreneur so she helps in motivating and build a career for future (Dees,
2017).Although he is not weak in financial condition he gets success in its own and did not take
help from his parents in building up career for future after lots of failure in its life.
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Andrew Carnegie was a Scottish American industrialist and a successful business
entrepreneur. He is doing business in American steel industry and known as richest people in the
history. He belongs to poor family and has done many struggle in his life for getting success. He
lives in a cottage with one room only and that was shared with neighbour family. He is living
alone in Scotland for making successful career in its life. His financial condition is also not good
his father is fallen into harder times as making hand loom weaver and his mother helped family
by selling potted meats at her shop (Zahra and George, 2017). His brother is also doing work of
cobbler and after seeing all family in difficult situation Branson think of making better life so he
borrows money from his friend and went to United States.
He is searching job their and want to give better life to his family. He has done many
struggles in his life after then also he is always motivated to do something new that will be
benefited for his family. After that he went Scotland and his uncle help him in becoming
philanthropist and then he will try his best to get success in life. After gets motivated from his
life that he want to achieve success and give better life to his parents. Branson becomes
successful entrepreneur and a motivation for others in achieving success.
CONCLUSION
From the above study it can be concluded that there are different types of entrepreneurial
ventures who adopt different typologies. Also it has been clearly understood that all the
organizations run are aimed at different functions, aims and objectives. This report has provided
a clear understanding about the importance of micro and small businesses which contributes
towards the economy of the country. this study has also helped in identifying the similarities and
differences between different types of entrepreneurial ventures.
Moreover, It has also helped in understanding character sticks and personality traits of
the Mark Zuckerberg and Bill gates which derives them towards the success. Along with this,
entrepreneurial mindset and motivation level is also explored which leads to the success of those
personalities.
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REFERENCES
Books and Journal
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Zahra, S.A. and George, G., 2017. International entrepreneurship: the current status of the field
and future research agenda. Strategic entrepreneurship: Creating a new mindset,
pp.253-288.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Amato, C., Baron, R.A., Barbieri, B., Bélanger, J.J. and Pierro, A., 2017. Regulatory modes and
entrepreneurship: the mediational role of alertness in small business success. Journal of
Small Business Management. 55. pp.27-42.
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REFERENCES
Books and Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
Cole, R.A., 2018. Bank credit, trade credit or no credit: Evidence from the Surveys of Small
Business Finances. Trade Credit or No Credit: Evidence from the Surveys of Small
Business Finances (July 31, 2018).
Ribeiro-Soriano, D., 2017. Small business and entrepreneurship: their role in economic and
social development.
Burch, S., and et.al., 2016. Governing and accelerating transformative entrepreneurship:
exploring the potential for small business innovation on urban sustainability
transitions. Current opinion in environmental sustainabilit. 22. pp.26-32.
Chell, E., and et.al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics. 133(4). pp.619-625.
Amato, C., and et.al., 2017. Regulatory modes and entrepreneurship: the mediational role of
alertness in small business success. Journal of Small Business Management. 55. pp.27-42.
Volery, T. and Mazzarol, T., 2015. The evolution of the small business and entrepreneurship
field: A bibliometric investigation of articles published in the International Small Business
Journal. International Small Business Journal. 33(4). pp.374-396.
Dugguh, S.I., 2017. Entrepreneurship and small business: Strategic approach to alleviating
poverty and corruption in Nigeria. GSTF Journal on Business Review (GBR). 3(1).
Online
Entrepreneurial ventures. 2018. [online]. Available
through:<http://neverstop.co/wp-content/uploads/2016/02/Types-of-Entrepreneurs.pdf>
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