Entrepreneurship & Small Business Management Characteristics

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
1

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
2