Entrepreneurship & Small Business Management Report: Analysis

This report delves into the realm of entrepreneurship and small business management, exploring various venture types including small business, scalable start-up, social, and large entrepreneurship. It examines their characteristics, similarities, and differences, while also assessing the impact of small and micro businesses on the economy at local, regional, and national levels, supported by relevant data and statistics. The report further highlights the importance of small businesses and start-ups in fostering the growth of the social economy, identifying the characteristic traits and skills that distinguish successful entrepreneurs. Additionally, it assesses how entrepreneurial personality aspects reflect motivation and mindset, and examines how background and experience can either facilitate or hinder entrepreneurial endeavors. The report concludes by synthesizing the key findings and implications of the analysis, offering a comprehensive understanding of the entrepreneurial landscape.

Entrepreneurship &
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Explain different types of entrepreneurial venture and how they related to the typology....1
P2. Evaluate similarities and difference between entrepreneurial venture..................................3
Impacts of small businesses ventures on economy:.........................................................................5
TASK 2............................................................................................................................................5
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................5
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy.............................................................................................................................6
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.............................................................................................7
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..................................................................................................................................8
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship & Small Business Management is the study where small organization
learn various things from large organization (Gartner 2019). Because initially these organization
also started from the lower base. An individual, who start business from the zero base and
develop something creating which have huge demand in the market. In order to increase
economic growth, country have to promote small businessman. Now a days economic become
more volatile, required specific skills and knowledge to start new business which has to be
innovative or creative. This report based on range of venture types, impact of small business in
the economy and required characteristics for an entrepreneurial. Along with this, evaluate how
they different from others.
MAIN BODY
P1. Explain different types of entrepreneurial venture and how they related to the typology
Entrepreneur is a person who introduce new product or services in the market along with
some creativity or innovation. Main purpose of the organization is to satisfy their customer
through providing quality product and services. Along with this, satisfy their needs & desires
with the help of their products. Entrepreneur is the person who take risk because there is a fear of
failure in the market due to introduce new product or services for the first time in the market.
There are various types of business venture and it will discussed below:
Small business entrepreneurship: A person r who run business and singly handle or
manager all the business activities called small business entrepreneurship. These people run their
business on small level and have objective to earn for their livelihood only. In order to start new
business they do not required any technical skills, high qualification and huge capital investment
for such business. For example: grocery stores, tour and travel agency, retail stores and small
cafe will be managed by single person.
Scalable start up entrepreneurship: In this venture entrepreneur develop something
innovating in order to get growth and development in the market. With the help of market
analysis, entrepreneur identify the need of customers and specific demand for the product. After
successful analysis, person able to formulate strategy in order to satisfy customers demand. In
this venture, main aim of this business is to change world through providing quality products and
services to satisfy consumers at every level. With the help of their creative idea and innovation
1

they attracts investment for sustainable growth in the business operations. There are some
examples of scalable business entrepreneurship such as online shopping store, Instagram,
Facebook etc.
Social entrepreneurship: This business venture develop by some group of people who
wanted to resolve social issues. Main objective is to provide sustainable world where every
individual satisfy with their needs. This venture does not focus on profits because they work for
the society. These types of organization get the funding from government agencies and there are
some examples which consider into this categories such as Safe Point trust and British council.
Large entrepreneurship: This ventures focus on growth of the organization and
functional activities in order to maximise productivity or profitability. They also focus on
expanding their business with the help of innovation and offer new products & services in the
market and it will be possible by using latest technology in the business operations. These
products & services will be develop to meet individual needs which helps in maximising profit.
Scope, development and growth of entrepreneurial ventures:
Entrepreneurial venture is very important for every organization where its scope will
continuously increase. On the other hand, people start inventing in the business rather then doing
9 to 5 job. Mentality of individual will change and they focus on introducing something which
innovating and creative which provide market hike. There are three entrepreneurial venture
which is very important because without this no organization can smoothly run. Such as
entrepreneur, intrapreneur and managerial ventures. After the success of many entrepreneur
people get motivated towards innovation and they wanted to involve in this venture or generate
new ideas. According to the statistics, growth or development of these ventures beneficial for the
small or medium size organization. Entrepreneur is the person who deeply study about market
and then identify market trend, customer demand, preference, taste, desire etc. It further helps in
formulating strategy and make them capable to achieve growth & development in the market.
Entrepreneurial venture typology:
Different typology will be classified below and it differently impact the individual or
organization:
Male typology: Under this typology only male entrepreneurs allow to start business and
make all the important decisions by themselves. Basically, it will be related to the small business
2

ventures where single person handle all the activities and not believe in innovation and
creativity. These people use their male mentality and through to run their business.
Female typology: In this typology females are running business by using their
competencies, skills and patience. It suits the business because females decisions are more
effective in comparison to the male members decision. In the organization, woman decisions are
preferred and mostly social and large size of business ventures are involves in this typology.
Managed growth: It is the modern business typology where male or females through or
ideas involved which helps the organization to perform accordingly and take effective decisions.
It further helps the management to operate operational activities effectively which required to
bear risk and help in maximising profit. This typology used in scalable and large
entrepreneurship where manager take suggestion before developing any strategy.
P2. Evaluate similarities and difference between entrepreneurial venture
There are some similarities and differences between different entrepreneurial venture and
it will be discussed below:
Basis Small scale
venture
Scalable start
up
Social
entrepreneurial
venture
Large company
Meaning It will be
managed by
individual and it
order to start new
business they
required
minimum
investment to run
business.
Business should
have clear
vision, strategy
and capital
investment to
develop new
products.
Because they
required
continuous
growth in the
market and
Main purpose of
this venture is to
resolve social
issues which
impact the
economy and its
growth. This
venture include the
contribution of
each member who
perform for social
development.
This ventures develop
in order to earn profit
by introducing
innovative products in
the market as per the
requirement of
customers. It required
huge investment,
skills, technology etc.
3

maximise profit.
Key features This venture
required
minimum
investment as
well as limited
resources to start
their business.
They majorly
focus on growth
and development
of business
through
measuring needs
& desire of
consumers.
This venture build
for the purpose of
resolving social
issues. So they
concern about the
social issues
through identifying
customer demand
and try to satisfy
them.
It required huge
investment and
specific skills &
competencies. It
include the managed
typology where
through of male &
female consider into
decision making
process.
Objectives To satisfy their
daily livelihood
requirement.
With the help of
their innovation
and creatively
attract investors
to gain financial
assistance.
Identify need of
individual as well
as requirement
which help the
economy to grow.
Large size
entrepreneurship have
main objective is to
maximise profit
margin through
satisfying each
customer. Along with
this, they continuous
improve their strategy
for the development
and growth in the
market.
Similarities between entrepreneurial ventures which discussed below:
 Ventures running their business for the purpose of meeting customer's demand and try to
satisfying their needs with the help of increasing business activities and provide wide
range of products..
 Some business ventures perform to attracts large number of customers and contribute in
the economy for social growth and development.
4

 Some entrepreneurial ventures introduce new ideas and strategies to meet customer
requirement and perform well to meet competition. Base of entrepreneurship is to innovate something different which make individual
creative and able to capture market.
Impacts of small businesses ventures on economy:
Small organizations positively impact the economy through running various business
activities. Inflation mostly impact the large organization because they totally depended and
involved in the economy (He and Qian 2019). But small business involved in the economy at
lower level. Small business owned by privately and public which required few employees and
limited resources to start new business. It helps in developing country through paying taxes
which improve economical condition of an country. Small business provide sustainable growth
and development in the community. Along with this, it provide employment opportunities which
increase living standard of an individual and improve economic condition.
TASK 2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro business are mainly knows as those small business which have the annual sales of
less than 20000 pounds in a year. There are sub category which help in understanding the small
business effectively. These kind of firm are generally privately owned firm and have smaller
revenue and staffs.
Impact of SME's upon economy
Local impact: Both on the micro as well as small venture have direct impact on the
economy condition of the country. As small business provide large amount of money and job
opportunities to the respective people. This also help in generating the living standard of local
community which provide power to spend more and more money.
Regional impact: This directly effects the upon the regional market as they provide the
various opportunities to the unemployed people at regional level. This help in to improve the
economic condition of the UK and people can increase their living standard. Thus SME plays
and vital role in GDP as well as economic growth.
5

National impact: Small medium enterprise help in growth and have the huge presence in
the UK where million of people have growth opportunities. The business are growing rapidly
which create a positive impact on the country economic. This kind of enterprise are formed by
the help innovate and creative minds. By the growth point of view it is important to have indulge
in developing more small enterprise for betterment of economic sustainability.
Illustration 1: Impact of SMEs on economy.
Source: Brexit’s impact on small businesses: the experts may be spot on after all.
From the above the diagram it has been figure out that SME plays and vital role in UK
economy which is almost the half of the economic revenue comes from the small business. In the
regards of the country the there are about 5.7 million enterprise which are accountable for the
development of the country.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy
Small business enterprises refers to the business which have employees of not more than
100 and have revenue of 25000 pounds yearly. They are consider as the backbone of the country
as they produce high revenue and provide employment to the people in different ways . The
small medium enterprises are supported by the government as well as from the private
organisation. As nowadays there are various angel investors presents in the market to avail funds
6

for the kick start of the small and medium enterprises. Some significance of these enterprises into
economy are discussed below:
Develop standard of living: Small medium enterprise help to improve the living
standard of the people by providing them job opportunities. Further this also help in improving
the economic condition of the country. As people have more purchasing power to due to
increasing the GDP of country.
Economic Development: Enterprise plays and vital role in economic development as
well as increase the per capita income of the people. Thus small enterprise must be promotes by
the government which help in making strong economic condition.
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
Entrepreneurship is the process of creating business by bearing the risk and with the
motive of making profit in limited time frame. It is can act of seeking investment and production
process while managing business process in a well defined manner. The individual how develop
a new enterprise and provide opportunities to others is known as entrepreneur. There are skills
which help entrepreneur to expand and grow their business effectively. Here Elizabeth Gooch
and Tom mercer are taken in to account. There are are some characteristic, skills and traits are
explained briefly down below:
Characteristic of Entrepreneur are explained down below
Creativity and innovation: This characteristic involves discovering new ideas and
implement in the business for making profitability (Elo 2019). The entrepreneur have to focus on
the new techniques and methods for operational activities to run more smoothly. She has a
creative as well as innovative minds which makes her entrepreneur. Where as Tom Mercer is a
day dreamer and have innovative ideas for new business ideas. Tom Mercer have made MOMA
foods while using creative ideas and figure out the new business opportunities present in the
market. As in this case entrepreneur are creative and always try to figure out new ways of doing
business where as managers perform activity on the set standard as per the rules.
Risk bearing: It is the important characteristic of any successful entrepreneur to take
risk. Playing safe does not leads to success and growth so entrepreneur have to take risk which
help in overcoming the challenges effectively. Elizabeth Gooch is a risk taker as she left her job
while working for the bank and started her own company known as EG solutions. On the other
7

hand Tom Mercer is also a risk taker as well as innovator where he sells his shake on Waterloo
station. Hence entrepreneur are risk taker where as managers are risk avoider as they work on the
guidelines provided by the organisation.
Skills of entrepreneur:
Technical skills: Technical skills requires ability to organise work in a well defined
manner. It include various elements such as communication, technical knowledge, coaching and
network building. Elizabeth as well as Tom Mercer have technical skills which help them to
expand their business successfully. For managers this skills are there as they have to deals with
employees on the daily basis. Entrepreneur develop these kind of skills by experience and also
by passage of time.
Personal skills: This are the skills which are able to maintain the change occur in the
organisation. Both Elizabeth and Tom mercer have to good personal skills like risk taking,
discipline and self confidence. Where as managers have develop this kind of techniques to
manage and control the organisation effectively.
Traits of the entrepreneur:
Passion: This is consider as one of the important traits to become a successful
entrepreneur. Both Elizabeth Gooch and Tom Mercer are passionate about their work. The
passion motivates entrepreneur to perform activities in a well defined manner. Where as manager
have the responsibility to motivates employees in order to achieve organisational goals.
Flexibility: It is important to adopt the changing trends of company which leads to
success and growth. Entrepreneurs are flexible enough to make the adjustments to make that idea
feasible. In the case of Elizabeth Gooch and Tom Mercer they have to adopt the strategies as per
the requirements of the organisation which help in growth and expansions. Managers have define
rules on which they act upon as they do not change their rule as as per the changing
surroundings.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
Entrepreneur are different and have different mind sets which they contribute to their
success. The personality plays an vital role in developing effective entrepreneur skills and also
change the mindsets of the people. Here is the Ocean model which help in understanding the
entrepreneur personality in a well defined manner.
8

Openness: This is consider as the first trait of Ocean model which describe the Insight
and imagination of this traits. In this kind of traits entrepreneur are always ready to explore the
world and curious about the new opportunities. People are high on the thinking and often take
challenges to find out the new ways of doing business.
Conscientiousness: It is a trait which can be explained as the tendency to manage as well
as control the impulse to work according the society. This kind of entrepreneur are often strict
and self discipline regarding there work. This trait help them to work according the rules and
regulation which help them to expand their business effectively. The individual manage the work
and do perform business activities in a well defined manner.
Extroversion: In this kind of traits entrepreneur have the ability to attract people towards
themselves. Individual is full of positive energy and is more sociable towards people. In this case
Elizabeth Gooch is introvert where as Tom Mercer is more likely to be extroversion which help
to expand and grow their business exponentially.
Agreeableness: This kind of traits various elements such as trust, modesty, humble and
patience. This kind of personality make entrepreneur more sensible and also change the mindsets
while performing business activities. Here both Elizabeth and Tom have agreeableness trait
which made them successful in doing business.
Neuroticism: This kind of trait often refers to the jealously, anxiety and nervousness
which lead towards failure (Brush and Welter 2019). Entrepreneur who have high neuroticism
are generally get angry and tend to have low self esteem. The persons should avoid this kind of
this kind of trait which leads towards low performance. Tom Mercer as well as Elizabeth do not
have neuroticism as they are more open which help them to organisation successful.
P7: Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
Entrepreneurship has been known for the avenue for upward and social mobility for the
driver of the innovation and job creation. Entrepreneurial education as well as family background
positively affect students entrepreneurial interest which help in carry forward the business. Here
are some important aspect which explain about the background of entrepreneur as well as
qualification:
Elizabeth Gooch:
9

Elizabeth is the founder and the CEO of EG solution, a small company which sell the
various kind operation management software to there clients which deals in operational
activities. This help in improving the efficiency of the organisation in a well define manner.
Elizabeth become the seventh most successful female entrepreneur in the UK by her dedication
and hard work.
Background and qualification:
Before entering in the field of business Elizabeth work for HSBC bank at the age of 18
but left after only 12 month for working at the post of consultancy which help to guide large
company to figure out the better ways to make use of staff. After eight years she started her own
business, EG Consulting, aged 26, financed by £1,000 borrowed from family and friends and a
credit card. Now company have the turnover of £600,000 which offer training and operational
activities to financial services. In the year 1993, the software called operational intelligence was
launched which allow the organisation to collect the real time data which help in monitoring the
production process.
Tom Mercer:
Tom mercer have enthusiastic and have the mindset to become entrepreneur in life.
Before going to work Tom spend time blending smoothies with the Oats for his breakfast in the
flat which was near the Waterloo station and often get late for work. After some days the idea
suddenly stuck in the mind of Tom which in result came as business idea and since it has become
most popular brand in UK.
Background and qualification:
Tom Mercer, a graduate of Cambridge University, was a management consultant with
Bain and Co. in the City of London (Belitski 2019.). While going office the idea came in the
mind to the start the own company. Tom blend the various flavours of Yoghurt, Oats and fruits
and make shake which and try to sell it to the commuters like train, tube and buses. From then
the company MOMA was born in year 2006. since them the organisation have seem rapid
growth as the quality and taste was good. After the successful expansion Tom left the company
and focus selling shake at different station. By the summer of 2008 we had nine stalls and sold
into a few offices and shops, including Selfridges. Now company have the plan to open the more
stalls and extend the company internet.
10