Entrepreneurship & Small Business Management

This report discusses entrepreneurship in the business environment, different typologies of entrepreneurship, a comparison between entrepreneurial ventures, the impact of micro and small businesses on the economy, the growth of the social economy, and the characteristic traits and skills of successful entrepreneurs.

Entrepreneurship & Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Task1 ...............................................................................................................................................3
P1 Entrepreneurship in business environment and there different typology..............................3
P2 Comparison between entrepreneurial ventures......................................................................4
M1 Diverse range of entrepreneurship enterprise ......................................................................6
Task2................................................................................................................................................6
P3 Impact of micro and small business on economy with statistical data ................................6
P4 Growth of social economy because of new start-ups and small businesses .........................8
M2 Difference made by micro, small and medium business in economy .................................9
Task3................................................................................................................................................9
P5 Characteristic traits and skills of successful entrepreneurs....................................................9
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.......................11
M3 Entrepreneurial characteristics ..........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................12

INTRODUCTION
Entrepreneurship is capability of a person to start a new business which is small in size
but with new ideas and motivation . It can be said as process of creating, processing and
implementing new ideas for establishing a new business with high amount of risk. The person
who create these ideas and implement them are known as entrepreneurs. There business is small
size in nature that's why they are called small size businesses. These are the important part of any
country which it in improving economic condition and increasing gross domestic production of
country(Parker, 2018). In this report we will study about the effect of these small entrepreneurs
on the economic, political, and other factors of nation. The mindset of entrepreneurs will be
studied and it will also analysis that how can there enterprise get more befits in economy.
Task1
P1 Entrepreneurship in business environment and there different typology
Entrepreneurship is creative process of establishing a new business with some innovative
ideas by management of risk associated with it in business environment(Kuratko, 2016). For any
enterprise it is important to analysis the trends of global environment. There are various type of
entrepreneurship which are stated below-
Small business entrepreneurship : UK have number of small business entrepreneurship
this is because it have huge profit with small amount of risk. These business has small number of
workers which can be family member of entrepreneurs some common example of these are
small scale production house, auto mobile retailer, cafe consulting.
Scalable start-up entrepreneurship: in these type of entrepreneurship the owner believes
in innovation ideas and there creativity. they operate there firm on innovation basic products
which help them in running their business. These firm main work is to provide new solution to
there clients. There is less than team worker in firm.
Social entrepreneurship : These are those entrepreneurship firms who work as social
organization . They collect funds for solving the issues related to society, culture and
environment. These firms take there social responsibilities as key factor for their survival.
Large company entrepreneurship : these firms are those which have there long existence
in market but have to create new and improved product with the help of innovation in there firm
for matching demand of customers and because of change in technology, taste, preference, and

culture of customers. These firm nave to run there new product along with existing products of
organisation.
Typology of entrepreneurship
These are various type of ventures in entrepreneurship which are classifed on the basis of
size,motive , task style and plan (Burns, 2016). Some of these are mentioned below :
Survival ventures : These venture are generally formed for only survival purpose. They
only need to full fill there purpose and after there will be no future investment in theses
ventures . They have limited resources in which they have to perform all of their activity and
they have no banking relations as there whole work id done through cash.
Lifestyle Ventures : These are those start-ups or small scale business which are formed
to help in fulfilling needs of entrepreneur in generating its income. The number of person
working here will remain constant with no change in operations of business.
Managed Growth Ventures : In this the main aim of organisation is to achieve stable
growth . These ventures are form for the purpose of establishing innovative ideas for establishing
market for new product which include market research and market penetration. These are
medium size organisation.
Aggressive Growth Ventures: These are large scale organisation which generate there
capital with the help of shares and debentures. These main focus is on using improved
technology and strong motivation process with good innovation.
P2 Comparison between entrepreneurial ventures
There are various types of entrepreneurship firms which are stated above in this report.
Now the similarity and dissimilarity between this firms will be identified which is mentioned
below :
Types of enterprises Similarities Differences
Small v/s Large Business
enterprise
 For promoting there
sales and customer
satisfaction bot of large
as well as small scale
enterprise work in
 There is huge
difference between
both they of firm is that
large scale firm have
huge capital in

same direction.
 These firms have
similar focus on
providing good quality
product to their
customer which will
attract them towards
organisation.
comparison of small
scale firm which is
operating in low capital
with minimum amount.
 Small scale have to
operate there business
in local and home
market at low level but
large scale firm operate
at international level
which act as a
difference between
these two.
Social v/s Scalable Enterprise  Both the organisation
have motive to serve
society by reducing
social problem and
providing assistance to
these firm.
 Both firm creates new
and innovative ideas
for betterment of
people of society
surrounded near
business.
 The main focus of
social and scalable
enterprise is to serve
people by analysing the
external factors in
organisation run(Burns,
 Social enterprise are
working for social
benefits but scalable
enterprises are work for
more innovation for
social welfare.
 Scalable enterprise
have there key focus on
satisfying customers for
increasing their
profitably ratio where
social organisation
main motive is to serve
society without
considering profit .

2016).
Lifestyle and survival
Entrepreneurial Venture
 Both type of
entrepreneurship
ventures want to crate
the culture of profitably
in there organisation by
increasing number of
customers and their
satisfaction level for
organisation.
 Lifestyle ventures have
there key focus on
market trends and
analysis market
condition for attracting
customers through
effective marketing and
branding . On the other
hand survival ventures
have key focus to
compete their tasks and
survive till completion
of there task with
minimum capital(Read,
and et. al., 2016).
M1 Diverse range of entrepreneurship enterprise
In a business environment there are various types of entrepreneurship firm and they
have different factor and impact on business of so it have to clearly examine the all these styles
have some similarity and some difference so using proper style is must for business man in there
organization . Every type have its own benefits and demerits so best suitable have to be chose
according to structure.
Task2
P3 Impact of micro and small business on economy with statistical data
Form the table given below and data presented by UK government it can be said that
small and micro enterprises have there great impact on business environment and economy of
nation . In report published by government there is 87% contribution small and medium
enterprises in UK business. The number of business establishment in UK of micro and small
enterprises have crossed the mark of 4 million in resent years with contribution on 6.1% in
national gross domestic production(Frederick and et. al., 2015). These organisation are also

responsible for sustainable development in UK with providing growth and employment
opportunities for people of nation.
Illustration 1: Impact of Economy on UK, 2018
(Source: Impact of Economy on UK, 2018)
The above mentioned graph shows that after the Brexit and other political uncertainties
the micro industry of UK have a sharp growth by approximate 88 % in comparison form
GLLCP. This states that it ios fates growing industry in UK. This will help economy in boosting
its performance.
This all analysis shows that these micro, small and medium business have huge impact
on economy of UK as they have to consider these factor while planing for there economy.
Share of business in United Kingdom
There is huge impact of small and medium enterprise on economy of UK as number of
small and micro firms is continuously rising which have also improve the employment ratio of
nation by 2% and provided employment to approximately 1.5 million people in this financial
year(Cope, 2005) . This organisation are involved in many programmes which are to use
innovative ideas in there firms and use creative methods in working of organisation by
improving organisational structure of there firm. There are some impact of these business units
which are mentioned below . These have to clearly examine by nation .
Job Creation: With the increasing number of micro and small business in UK there is
also generation of employment opportunities. As new organisation or existing one have need of

staff in their functioning which help them in working smoothly. This will befit to nation in
fulfilling employment demand of there nation . Micro, small and medium-sized organisation
have helped UK government in generating 2.50 million jobs . These also help in boosting
contribution of females in country economy as out of total job assigned 50% are female
candidates. This will also facilitate in women empowerment in UK.
Contribution to Innovation : Innovation in their work is prime motive of every small
and micro enterprise as this is the basic of there survival that they are unique and innovative in
there work . This is the reason of increase number of micro firms in UK . This factor have
influenced UK as it enable it to come on top of the list of top innovative countries in world. This
will also help in making stability in economy as innovation enable to control other factors which
effect stability in economy.
Micro, small and medium business have huge impact on economy of UK as they help in
providing jobs to people and making them innovative.
P4 Growth of social economy because of new start-ups and small businesses
Social economics is that branch of economy which analyse the relationship between social
behaviour and economy (Cope, 2005). It includes the study of culture , social norms, ethics and
other social responsibility which influence behaviour of consumer and buying trend in market.
Brexit is the biggest social blunder in united nation this have huge impact on micro and small
scale business firms of UK. Where 51.9 % people have voted in favour of it for exit of Britain
form European union. The social unrest generated because of it is decrease in currency rates and
rise in inflation rates which have impacted UK adversely. And for overcoming these conditions
Britain start-ups have helped it very effectively. Which can seen from the graph mention below :

.
These have impacted positively on UK as there is continuous increase in there GDP after
BRIXIT. This happened because small business of UK are operating with innovative ideas which
help the in improving employment opportunities by 2.5 million in single financial year . The
have also help in maintains the proper cultural environment as they are not operating at high
level which enable than to recruit the local person who have similar culture. This have also help
UK in increasing there GDP 6% growth (Luke, 2005). It have also help in maintain per capita
income in whole UK. These start-ups have also facilitate in strengthening the private sector of
UK which acted as making it best private sector economy and help in boosting FDI in business
environment.
M2 Difference made by micro, small and medium business in economy
Micro, small and medium business in UK have there direct impact on their economy this
is because it have gettered 2.5 million job in single financial year as well as help in woman
empowerment by providing millions of job to them. They have also facilitated in seeking
investment in name of FDI form different nation(De Bruin, Brush, and Welter 2007).
Task3
P5 Characteristic traits and skills of successful entrepreneurs
Every organisation is needed to identify there strengthen and weakness in business
environment which help them in establish tactics and identifying there skills to take competitive
advantage for running there business smoothly.

Elizabeth Gooch is a famous lady entrepreneur of UK and a CEO of EG Solutions PLC
which is currently the biggest women start-up of UK which is operating with 800000 euro profit
in current financial year. There main strength is women empowerment.
Characteristic of Elizabeth Gooch
Risk-taking ability: It is that characteristic of entrepreneur where it shows its risk
taking ability (Hodgetts, Kuratko and Kuratko 1998). Elizabeth Gooch have shown this when she
leaves her job for doing busines practices it is the biggest risk to leave job.
passion : Passion is that characteristic of a person which shows that how much they love
there work and how dedicated they are for there work. Elizabeth have shown this when she
entered in business of software.
Skills of Elizabeth Gooch
Optimistic : This is that skill which states that entrepreneur must be optimistic for thee
future business and Elizabeth is always optimistic even her firm in a huge loss for continues two
years.
Time management : Elizabeth is a time bound lady, who does not waste her time in
wasteful activity this is the reason for success of her organisation and long run in that dynamic
conditions.
Tom Mercer is a graduate form Cambridge university and owner of MOMA a food start-
up in UK . This start-up the idea of Tom which is started in 2006 at railway site of UK.
Characteristic of Tom Mercer
Self Starter: Tom Mercer main characteristic is that he is a self starter and no one given
him motivation to open MOMA .
Creativity : Creativeness in work is also a characteristic of Tom as the idea of MOMA is
his own.
Skills of Tom Mercer
Networking : This is the best skill of Tom as he have a great network . This is because
he discuss all his ideas to his friends who helped him in establishing business. His networking
skills are also good because of his friendly nature.
Communication : Communication skills of Tom is also good as he is able to
communicate his ideas to his friends and employee in the exact way which he want to convey

P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset.
There are various tactics and strategy which a individual should posses while working in
business environment as an entrepreneur this will help in archiving business goals and objectives
and make there business profitable for long period of time.
Openness: there must be openness in mind and behaviour of good entrepreneur will lead
in easy control over the environment and will influence the behaviour of employee by motivating
them in direction of organisation goals and objectives it includes different type of traits like
imaginative, insightful and have long vision for organisation (Scarborough, Zimmerer, and
Wilson 2006).this will also help in establishing competitive environment.
Conscientiousness : For running any type business there is need of full presence of
mind in that business. It is using of all six sense of an entrepreneur in business for improving
business condition in favour of business. It is using external factor according to business.
Extraversion: This factor includes system like being assertive ans energetic. This will
help entrepreneur in managing there employee motivation through self motivation and energy
exchange.
Agreeableness: This is the influencing power of an individual that haw can he influence
the employee and external factors of organisation and can use there maximum benefit for long
run . This power will also help in establishing good communication in organization for smooth
flow of information.
Neuroticism:These traits are related to emotional stability of entrepreneur while
working in organisation . This states that a individual must be emotionally strong in his business.
this have positive impact on firm as it will reduce the chances of conflicts and will give strength
to enterprising in making tough decision related to policy and process of business.
M3 Entrepreneurial characteristics
These characteristics have great impact upon profitably and increase productivity of
firm . Characteristic and skills like openness, Networking, Communication, Creativity and Self
Starter help in increase motivation as well innovation in firm(Schaper, and et. al., 2010) .

CONCLUSION
As per the given report it can be concluded that, entrepreneurship is that process which is
directly associated with risk. If there if huge risk than development chance of entrepreneurs are
more. This report says that as small scale firm must be proactive and innovative which will lead
in success of their entrepreneurship and facilitate them log survival. This report also stated that
entrepreneurship have different impact on economic condition of country as well as on global
market. It also identify the impact of different business like small, medium and large scale on
whole industry and there importance to industry.

REFERENCES
books and generals
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Read, S., and et. al., 2016. Effectual entrepreneurship. Routledge.
Frederick and et. al., 2015. Entrepreneurship: Theory/Process/Practice with Student Resource
Access for 12 Months. Cengage AU.
Cope, J., 2005. Toward a dynamic learning perspective of entrepreneurship. Entrepreneurship
theory and practice. 29(4). pp.373-397.
Luke, B., 2005. Uncovering strategic entrepreneurship: An examination of theory and practice
(Doctoral dissertation, Auckland University of Technology).
De Bruin, A., Brush, C.G. and Welter, F., 2007. Advancing a framework for coherent research
on women's entrepreneurship. Entrepreneurship theory and practice. 31(3). pp.323-339.
Hodgetts, R.M., Kuratko, D.F. and Kuratko, D.F., 1998. Effective small business management.
Fort Worth, TX: Dryden Press.
Scarborough, N.M., Zimmerer, T. and Wilson, D.L., 2006. Effective small business management:
An entrepreneurial approach. Upper Saddle River, NJ: Prentice Hall.
Schaper, M., and et. al., 2010. Entrepreneurship and small business. John Wiley & Sons.