Entrepreneurship & Small Business Management

This report discusses different kinds of entrepreneurial ventures and their relation to the typology of entrepreneurship. It also explores the impact of micro and small-sized businesses on a country's economy and the importance of small business to the growth of the social economy. Additionally, it delves into the characteristic traits and skills of successful entrepreneurs.

ENTREPRENEURSHIP &
SMALL BUSINESS
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
LO 1............................................................................................................................................................3
P 1 Different kinds of entrepreneurial ventures and their relation to typology of entrepreneurship.........3
P 2 Differences and similarities between entrepreneurial ventures..........................................................4
LO 2............................................................................................................................................................6
P 3 Impact of micro and small sized businesses on a country’s economy...............................................6
P 4 Importance of small business to the growth of the social economy...................................................7
LO3.............................................................................................................................................................8
P5. Characteristic trait and skills of successful entrepreneurs..................................................................8
P6. Aspect of entrepreneur personality reflect entrepreneur motivation and mindset............................10
LO4...........................................................................................................................................................12
P7. Background and experience hinder and foster entrepreneurship......................................................12
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................15

INTRODUCTION
Entrepreneurship is launching a new business in the market after designing and
implementing it completely. There are a lot of risks which have to be taken by an entrepreneur of
the organization to get high profit margins and they have control on the business, completely.
There are a lot of new ideas and innovations which come up in the country which can be very
advantageous for the country as well. This creates a lot of generations of the people having a
better lifestyle and improves the quality of life. This report discusses the different ventures and
the difference and similarities between them. The impact of small and medium scale
organizations on the international and local business environment and their significance. The
mind set of entrepreneurs and characteristics of them are also going to be discussed in the further
report.
LO 1
P 1 Different kinds of entrepreneurial ventures and their relation to typology of entrepreneurship
Entrepreneurs are the once who start up their own business in the market by taking a lot
of risks. These businesses are usually small in scale and have unique products to service to the
customers. The actions taken by the entrepreneur will make the company have a better
functioning and increase their profit margins (Munyanyi and Pooe, 2019). There are new ideas
and innovations which take place by an entrepreneur which can start multiple businesses
operations. There are three entrepreneurial ventures which are provided to the entrepreneur
which are as follows.
Private entrepreneurial venture
These types of venture do not produce a lot of employment opportunities and run at a
national level in the market. There are a lot of ideas and innovations which needs to be done in
these kinds of ventures so that they can have a better functioning for themselves which is going
to help the venture capture the market and have a longer stay in the market. There is a lot of risk

which is involved in this kind of a venture which has to be fulfilled by the company so that there
is a better functioning. For example, Iceland organization, which is a retailer in UK.
Public entrepreneurial venture
These are large scale organization and a part of it is handled by the government as well.
The initiative is to provide the best of services to the public of the country and globally if they
have so many investors in the organization (Dunne and et.al., 2016). The decision making
involves a lot of people and the conflicts are more which makes it a little difficult for this venture
to last in the market but they do because there are a lot of experienced people in the company.
For example, British Petroleum, which is a public venture in UK. These ventures operate so that
they can have high profit margins.
Social entrepreneurial ventures
The aim is to help the society in the country and not earn profits. There is no need of
unique ideas and creativity but just having the skill to help the society in all the ways possible so
that there is a better living. This helps to create a new and better future in the country and loans
are provided by the government as well for this kind of work. For example, Children’s society
which is situated in UK which is a charity for the society (Yan and Yan, 2016).
P 2 Differences and similarities between entrepreneurial ventures
There are a lot of differences and similarities which can be seen in different
entrepreneurial ventures present in the market. The following take is going to discuss them in
detail of social, private and public entrepreneurial ventures.
Similarities:
 Brand Image
To have a better place for themselves in the market the ventures try to have goodwill and a
reputation in the market which will make the brand image stronger (Kunaka and Moos, 2019). It
is very important to have a strong brand image so that there is a better functioning for them in the
market.

 Fund
There is a requirement of funds in all kind of ventures. Getting idea is not the only way to
make that idea come into practicality but there have to be investments which have to be made so
that the product can reach the market. To get the financial help there are funds which the
ventures have to take, be it from investors or government loans, or personal loans.
 Human Resource
There is a target which has to be achieved by all kind of ventures but for that to happen the
organization will have to get a set of human resource so that they can monitor and control the
productivity and operations of the organization (Anderson and Gaddefors, 2016). It is very
important that the productivity of the company is maintained and the quality of the product as
well because those are new products and satisfaction of the customers is essential.
Basis Public Venture Private Venture Social Venture
Objectives The objective of a public
venture is to improve the
lifestyle of the public and
to make the maximum
profit margins.
The aim of a public
venture is to generate the
maximum revenue in the
market.
The main aim of a
social entrepreneurial is
to provide social
wellbeing and to
improve the social
values in the public
(Sethibe and Steyn,
2016).
Value To provide social values
to the public is why
public ventures are
operating in the market
(Kuckertz and Mandl,
2016).
To provide financial
values to the
entrepreneurs is why the
private ventures are
operating in the market.
To provide social value
to the public is why the
social ventures are
operating in the market.
Profit
Distribution
The profit generated in
this entrepreneurial is
distributed to the
In a private
entrepreneurial the profit
generation is distributed
The profit which
generates in a social
entrepreneurial venture

stakeholders which are
employees, suppliers,
society, administration,
etc.
amongst the stakeholders
which are investors,
shareholders and
administration, etc.
is not distributed to any
one individual but for
the betterment of the
society.
Stakeholders The organizations which
come under public
ventures always sell their
shared to the public.
The people close to the
owner like family,
friends, etc are the people
who can be the
shareholder of the
company otherwise a
private venture does not
have any shareholder
other than the owner
themselves.
The value of
stakeholders is zero
apart from the decision
making for the
functioning because the
venture does not work
for profit.
LO 2
P 3 Impact of micro and small sized businesses on a country’s economy
In the private sectors there are more than 5.5 million businesses which are exiting in the
market of United Kingdom. Out of these 5.5 million businesses, 5.4 million are small scaled
businesses which mean that they require workforce of ranging from 10 to 50 employees so that
the productivity of the organization can operate. It is from these 5.4 million small sized
organizations 5.3million businesses come under micro organization which require even less than
10 employees to make the operations of the business take place (Ribeiro-Soriano, 2017). These
factors has made the unemployment rates in United Kingdom fall and that is making the GDP of
the country grow because the people are getting income and they can have a better lifestyle as
they want. The government of the country is supporting and providing the people with loans so
that they can have a start up in the country which is going to make the people invest in them and
they can grow further (Frederick, 2018). There are a lot of new ideas which are generating which

can be very useful for the country to make the economic stability in the country. The small scale
organizations are providing the country with a turnover of 47% which is a huge contribution for
the country to develop and remove the poverty in the country. There are huge employment
generations which are given to the local people of the country which can be a great opportunity
for the people and the business for a long run in the market (Leyer, Ivchenkov and Kirschner,
2018). There is a great competition in the small and micro businesses in the country because
there are so many of them. It is also said by researchers that 55% of micro business closes down
in first five years of their operations in the country. This can make the people have a very
imbalanced life and there will be no stability. It is very important that the organization find
different ways so that they can compete with the competitors.
Currently UK is considered as the richest country in the world because of these small and
micro organizations which is helping the country improve their economic stability. With the
increase in GDP of the country the prices of the products in the country can be improved and
worked on so that the organizations can have high profit margins for themselves. There is 60%
of SME which are getting their funds from external sources which is not a good factor for the
country because the flow of cash in the market will be limited. Therefore, the government of the
country has started providing the people with facilities so that they can make the most from that
factor (Bridge, 2016).
P 4 Importance of small business to the growth of the social economy
There is an impact on the social life of the country people as well which are that they are
getting a lot of variety in products and matching to their standards of living (Balachandra, 2019).
There are 99% of the people of the country which are getting job opportunities because of this
factor which is a great factor for the country. The government is also promoting this idea so that
the country can have a better economic stability.
 Promoting Innovation
It is because of the SME’s in the country that there are new ideas and creativity of the people
which are coming out and that are a very good factor for the market. This factor can get a lot of

customers from outside the country as will which will result in betterment of the economic factor
of the country and the country will be able to develop themselves for a long run.
 Provides Employment
SME’s are normally organizations which are start- up’s and that can give a lot of people
employment opportunity. That is a very good factor for the country and that will make the
economic stability. The GDP of the country was not growing because the unemployment rates of
the country was increasing and the income of the people was low but due to SME’s in the
country there is employment which is coming and that is a very important factor.
 Encourages Youth
There are a lot of ideas which generate in the youth and it is very important that they are
motivated to make those ideas come into practicality (Doktor and Bui, 2018). SME’s laws and
regulations are so simple that the people are getting motivated to invest and come up with
businesses. This will get a lot of employment and a lot of development for the countries
betterment.
LO3
P5. Characteristic trait and skills of successful entrepreneurs
Entrepreneurs possess the following characteristic traits and skills that support them in
getting a huge success in business. Characteristics trait and skills of entrepreneurs which make
them different from business managers can be summarised in the following manners.
Skills of successful entrepreneurs
Entrepreneurs carry the following skills that drive the success of business.
Leadership skill: Leadership skill is among the key skills successful entrepreneurs possess.
Entrepreneurs not just give instruction to employees of business but they rather get involve in
each operation associated with business (DEGEFA, 2017). Leadership skill also supports
entrepreneurs in forming effective team for different functional role of organisation. For example

entrepreneurs Elizabeth Gooch and Tom Mercer carried the strong leadership skill which enabled
both the entrepreneurs in dealing with all business situations.
Analytical skill: Analytical skill is also among the crucial skill entrepreneurs possess. In order to
drive the business in right direction it is crucial to make effective decisions based on the situation
analysis. Successful entrepreneurs analysis the whole situation and based on the conclusions they
make the effective business decisions. For example entrepreneurs Tom Mercer and Elizabeth
Gooch both had an excellent analytical skill which helped them in analysis different aspecst of
the business.
Research skill: Research is also a huge part of the decision making process involved in the
business. Entrepreneurs carry the ability to research precisely every aspects of the business
operations and decision making. Effective research outcomes support entrepreneurs in
establishing a successful business venture. Managers do not generally involve in researching
about a situation. For example entrepreneurs Elizabeth Gooch consist up with effective research
skills which supported her in making crucial decision related to business development.
Communication skill: Communication skill is among the major skill successful entrepreneurs
possess. Excelent communication skills support entrepreneurs in conveying the business idea to
all investors and customers (Mehta and et.al., 2019). For example effective communication skill
supported entrepreneurs Elizabeth Gooch and Tom Mercer in putting the business effectively in
front of all stakeholders of the company. For example with the support of effective
communication skill entrepreneur Elizabeth Gooch could effectively communicate with different
stakeholders associated with the business.
Decision making skill: Decision making skill play a huge role in operating business operations.
Entrepreneurs need to take decisions at all stages of the business. With the support of effective
decision making entrepreneurs cater the needs of the society with the support of business
operations.
All the above skills support entrepreneurs in establishing a successful business venture.
Characteristics of entrepreneurs
Entrepreneurs possess the following characteristics.

Positive attitude: Entrepreneurs carry many characteristic traits that drive the success of the
entrepreneurial business. Business environment consist the nature of unpredictability. Due to
such a volatile atmosphere any time new challenges come across in the business operations.
Entrepreneurs face all such challenges with the positive attitude and mind set (Pena, 2019). Due
to lack of resources entrepreneurs also face failures plenty of time in the business. Apart from all
such failures entrepreneurs stay positive all the time. For example entrepreneurs Elizabeth Gooch
faced failures in its business in form of loosing sales turnover but she always move forward
positively.
Philanthropist: Entrepreneurs are also considering as the philanthropist in the society.
Successful entrepreneurs believe that whatever they have received is all because of the
acceptance of the society. They possess the nature of giving back whatever society has given to
them. Due to these characterstic entrepreneurs involves in many social welfare activities. This
characteristic of entrepreneurs also drive the positive image of entrepreneurs in front of the
society which further resulted into entrepreneurs achieving high business growth. For example
entrepreneurs Tom Mercer involve in many social causes to meet the role of philanthropist in the
society.
Hard working: Hard work is the crucial characteristic trait successful entrepreneurs possess.
Entrepreneurs never feel bad in working hard towards achieving the goals. With the support of
constant hard work entrepreneurs build successful business empire. For example hard working of
Elizabeth Gooch has supported her in establishing such a huge business empire.
All the above factors demonstrate the different skills and characteristic entrepreneur’s
posses that also further drive the success of entrepreneurs.
P6. Aspect of entrepreneur personality reflect entrepreneur motivation and mindset
OCEAN Five Factor model demonstrate the personality trait of successful entrepreneurs
which also reflect the motivation and mindset of entrepreneurs. This model comprises with
factors like openness, conscientiousness, extroversion, agreeableness and neuroticism.

Openness: Openness attitude of entrepreneurs play huge role in achieving success. Openness
also involves imagination and insight as a part of this factor. Due to this factor entrepreneurs
always look acceptable for creativity and innovation. Successful entrepreneurs always come
across to learn new skills and aspects of doing business. Motivation also play huge role in
possessing openness approach for doing business functions. Openness approach of entrepreneurs
also makes them more adventurous and creative. Due to this approach entrepreneurs effectively
provide new dimensions to business operations. For example openness approach of entrepreneur
Elizabeth Gooch has supported her in analysing the emerging needs of the customers.
Conscientiousness: Successful entrepreneurs also possess conscientiousness in the personality.
Conscientiousness also drives to open thinking, control and goal oriented behaviour. This is an
important feature entrepreneurs carry in the personality due to high level of motivation and
confidence (Charoensukmongkol and Sasatanun, 2017). All the factors drive entrepreneurs in
making an effective strategic decision making for the growth of the business. For example all the
factors support entrepreneur Tom Mercer motivation level in order to implement right planning
for business operations and also to finish important tasks on a timely basis.
Extroversion: Extroversion is also important characteristic entrepreneurs possess that also
reflect about the motivation level of entrepreneurs. This factor comprises with aspects such as
excitability, sociability, talkativeness, assertiveness and emotional expressiveness. Due to high
motivation level entrepreneurs like to socialise in front of all the associated stakeholders
involved in business. Entrepreneurs also like to interact with other people in society about
different business aspects. For example different features involve in extroversion enabled
entrepreneurs Tom Mercer to make connection with different stakeholders of society that further
expand the growth potential of business.
Agreeableness: Agreeableness is also an another aspects of entrepreneurs reflect the high
motivation of successful entrepreneurs. Agreeableness also involves personality traits like trust,
altruism, kindness, affection and prosaically behaviour. All the features of entrepreneurs
personality due to high motivation level makes entrepreneurs more cooperative in respect to the
business environment. Business sector is highly competitive sector and motivation play huge role
in taking important decisions related to growth of the business. All the features drive
entrepreneurs in making the right business decisions to operate business operations. For example

agreeableness allowed entrepreneurs Elizabeth Gooch to understand the needs of the society that
also further channelizes into strategic decision making for the business development.
Neuroticism: Entrepreneurs motivation causes to low neuroticism in the personality trait of
entrepreneurs. This feature of high motivation makes entrepreneurs more stable at emotional
level. Due to immense competition in the business environment many times entrepreneurs needs
to face anxiety and emotional instability and relative issues. For example motivation of
entrepreneur Elizabeth Gooch drives her to deal with all the negative situations associated with
business operations.
All the five factors demonstrate the impact of entrepreneur’s motivation on the
personality of the entrepreneurs.
LO4
P7. Background and experience hinder and foster entrepreneurship
Background and experience play huge role in the operating business for entrepreneurs.
Impacts of background and experience of entrepreneurs can be summarised in the following
manner.
Improve decision making: Background and experience of entrepreneurs play huge role in
improving the decision making of entrepreneurs in respect to operations business functions.
Entrepreneurs face plenty of failures before establishing a successful business venture. All the
previous experiences of entrepreneurs enable them to learn new aspects of the business
environment. Decision making involve features like market analysis, consumer need analysis and
other associated features (Ahmad, 2018). Background of entrepreneurs drives them to learn
different factors involve in business decision making process. For example entrepreneurs
Elizabeth Gooch founder and CEO of EG Solutions belong to middle class background family.
She also worked in bank which allows her to address different customers as a part of the job role.
Background the entrepreneurs allow her to cater the best services based on the customer needs.
This background has enabled her in analysing the customer needs related to technological
solution products. Other entrepreneurs like Tom mercer also influenced with back ground in

taking better business decisions. Tom mercer was a city worker which allowed him to experience
various social aspects like needs, social factors, market and other social elements. All the factors
has improved the decision making of the entrepreneurs Tom Mercer.
Improve market analysis: Analysis of the market play huge role in achieving success in
business. Market analysis comprises with different factors like trend analysis, need analysis,
customer analysis and many other analytical tools. All decision making of the business is based
on the market analysis factor. In order to analysis the current market situation it is crucial to
understand different elements involved in the market like customers, trends, social factors,
people and other elements. If the entrepreneurs belong to the low background it allows
entrepreneurs to understand the depth of the market as he gets to interact with different factors
involve in market. For example entrepreneur Elizabeth Gooch worked in HSBC Bank in the
beginning of the career. As a part of the banking job she needs to interact with different banking
customers. This background of the entrepreneur has supported throughout of her entrepreneurial
journey to assess the market and all the factors associated with the market. Other examples like
entrepreneur Tom Mercer has also spent plenty of time in the beginning in the mid of the market
and people as a city worker. His background supported him to interact with different peoples in
society. This background of the entrepreneurs has enabled him to make suitable business
decisions based on the market analysis.
CONCLUSION
From the above report it can be concluded that there is a huge influence of the
entrepreneurs of the company’s in the market on the economic stability of the country. There is a
discussion of the micro and small businesses affecting the economy of the country and what are
the significance of them in the growth of the country. The traits and characteristics of the
entrepreneurs are also discussed in the report and the kind of mind set which is required by the
management so that there is a better functioning of the organization. It is very important to have
experience in the industry so that the owner can easily make decisions which are not going to be
too risky, though the entrepreneur of the company has to take risks so that the small business can
grow in the market.

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