Entrepreneurship & Small Business Management

This report covers topics like different types of entrepreneurial ventures, the impact of small businesses on the economy, the characteristics of successful entrepreneurs, and more. It provides study material and solved assignments on Entrepreneurship & Small Business Management.

Entrepreneurship & Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Examine different type of entrepreneur venture and explain how they related to typology
of entrepreneurship......................................................................................................................3
P2: Explore the similarities and differences between entrepreneurial ventures..........................4
TASK 2............................................................................................................................................6
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy..............................................................................................6
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................7
TASK 3............................................................................................................................................8
P5: Determine the characteristic, traits and skills of successful entrepreneurs that differentiate
them from other business managers............................................................................................8
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset..................................................................................................................................9
TASK 4..........................................................................................................................................11
P7: Examine how background as well as experiences can foster entrepreneurship..................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to the process of taking initiative in terms to create a new
business venture by taking calculative risk and function to enhance overall profitability. On other
side entrepreneurs are basically innovator that explore external opportunity and function based
on creative idea which help to yield out wide amount of profitability (Akehurst, Simarro and
Mas‐Tur, 2012). This report cover topics like different types of entrepreneurial venture that
leads to long term growth and development. Interpret the impact of small businesses as well as
start up with an economy. Explore the essential aspects of an entrepreneurial mindset. Further,
examine different environment which can foster or hinder the operations of entrepreneurship.
TASK 1
P1: Examine different type of entrepreneur venture and explain how they related to typology of
entrepreneurship
Entrepreneurship encompasses the process of creating a new business venture which is
based on innovative idea and helps to scale up profitability. It is concerned in taking the initiative
and transforming the problem or exploit opportunity in form of unique solution.
Typologies: It helps to provide assistant and game comprehensibility on the basis of
different type of venture. Topology can be of different types like female, male, scalable and
social which is determined on the basis of venture.
Survival venture: Most of the start-up is part of Survival venture as they function in
unstable environment with the objective to make strategy and survival their routine operations.
They intent to generate high amount of revenue by executing business operation and successfully
operate in prevailing marketplace (Anggadwita and Mustafid, 2014). For example, NHS of a
diverse Medical Services to the local residents of United Kingdom at reasonable prices which
has enhanced market share of company.
Typology: Company that fall under survival venture has adopted scalable typology as
their scopes to gain competitive edge which help to gain immense profitability.
Lifestyle venture: Based on this type of venture entrepreneur perform task with the
motive to gain stable income that can accommodate the requirement of whole family. Here
entrepreneur less likely take the expansion risk in terms to diversify business operation.

Typology: Lifestyle venture is a part of social typology which helps venture to gain
desirable profitability margin by effectively building the capability as well as competencies.
Managed growth: This type of venture involves extensive growth and development in
order to maintain sustainable performance. Here the entrepreneur takes effort to reinvest their
fund in order to capitalise business.
Typology: Managed growth pertains to be the part of scalable typology whose purposes
to diversify the operation by gaining adequate market insight which helps to attain desirable
growth and development.
Comparison between entrepreneur and business manager
Entrepreneur Owner/manager
Entrepreneur are basically risk taker that have
courage to either analyse problem or
opportunity and convert it in favour of society
which helps to achieve long term profitability.
Manager of company are responsible to take
successive actions or prevailing operation
forward which preferably involve low amount of
risk (Bridge and O'Neill, 2012).
The entrepreneur are visionary due to which the
effectively focus to convert Idea into reality
Manager games salary due to which they
function to perform smooth functioning
P2: Explore the similarities and differences between entrepreneurial ventures
Basis of Differences Survival Lifestyle Managed growth
Annual growth Survival venture
perform nominal
growth on the daily
basis as they take
significant amount of
time to devise viable
strategy and gain
growth.
Growth rate is low
because it does not
involve risk factor
which restrict profit
margin of company.
This venture has
consistently
performed their task
in order to compete
with rivalry and
attain growth which
is comparatively
more than other type
of venture.

Basis of Differences Survival Lifestyle Managed growth
Purpose Here venture
function with the
objective to survive
its operation from
other competitors
which deals in
similar type of
industry.
The purpose of
investment within
these ventures is to
gain preferable
amount of
profitability.
The purpose of
managed growth is to
gain Global image by
diversifying business
successfully.
Technology
investment
Venture need not to
enquire expenditure
in new on latest
technology.
For lifestyle venture
entrepreneurs need to
just invest on basic
or limited technology
to start their
operations (Burns
and Dewhurst,
2016).
Moderate investment
on innovation is
involved to widen
firm’s profitability.
Organization
structure
Particular type of
structure is not
followed in this
venture.
Mainly hierarchical
structure prevails to
conduct function of
lifestyle venture.
Centralised,
divisional and
functional structures
are highly preferred
within manage
growth venture.
Similarities between different entrepreneurial ventures

All the different type of ventures such as survival, lifestyle and manage growth
incorporate with the motive to maximize profitability and run sustainable business. This venture
looks for diverse sources in order to generate fund and carry out businesses. Like, Survival and
Lifestyle venture highly depend on borrowing generate from family and peers whereas managed
growth extend credit limit from financial institution or public sources. Thus, they anticipate
untapped opportunity and generate new need of customer to process overall functioning.
TASK 2
P3: Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Micro as well as small companies function within particular geographical area with the
objective to survive for which it maximize profitability and gain preferable amount of revenue.
This company plays an essential role in terms to make the economy stable by enhancing increase
in employment and growth opportunity (Hall and Wagner, 2012). The local authorities of UK
suitably promote micro or small business because they play immense role in strengthening the
economy. Like, during the phase of Brexit large company faced downfall due to the existence of
various tariff barrier within European Union. In addition to that presence of small business helps
in adequate circulation of fund which supports the functioning of overall economy effectively.
According to the reporting of SBA's, small company provides employment opportunity to
approximately 250 skilled and unskilled employees. Therefore, existence of these companies
functions to enhance the living standard of people which help to increase Gross Domestic
Product of an economy.

Illustration 1: The role of Start-ups and Small Business in today's economy,
2019)
(Source: The role of Start-ups and Small Business in today's economy, 2019)
Based on above graph it has been determined that due to wide existence of small or
medium businesses have helped to make significant contribution within economy which is
comparative more in relation to large companies. The chart determines that small businesses
offer employment opportunity up-to 48% where large business contribution 40% of employment
within United Kingdom. Along with that large company with the objective to scale up the size of
their business faces more turnover that in relation to small business which is 53 % and 33%
respectively. This figure illustrate that there is an immense scope for small and micro business to
incorporate the innovative venture effectively.
P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy
Social economy is formulated due to the rich diversity which comprises the role of an
organization, cooperative, entrepreneur, enterprises which function within an economy by
sharing values on common platform. For the growth and development of an economy the
presence of small businesses perform crucial role in terms to enhance the living standard of

overall society. Certain importance that a country gains due to the presence of small businesses
are articulated below:
Increase in imposition of Taxes: Small businesses participation within the economy due
to which it hire local residence earn significant amount of profit based on which they need to pay
back taxes to the government. The main advantage of of rapidly increasing small businesses is
that it helps to enhance gross development product of an economy as the money circulate within
an economy. Such inflow and outflow of funds helps to shape the economy by leading to long
term growth and development opportunity for the welfare of society.
Provide job opportunity: The business can only attain its objective with the immense
efforts of its manpower. The governments of UK have offer flexible environment and regulation
so that small businesses can easily existence and incorporate the operations (Ratten, 2014). As
small businesses provides large number of employment to local residence which leads to the
growth and innovation within community in order to effectively development social economy.
Rising living standard of society: The living standards of society can only improve if
they get desirable job vacancies which helps to enhance the purchasing power of people.
Successful contribution of starts ups helps to participate in immense growth and development for
social economy. This helps to uplift the standard of people which is the favorable symbol for a
development country.
TASK 3
P5: Determine the characteristic, traits and skills of successful entrepreneurs that differentiate
them from other business managers
The unique skills as well as characteristics of entrepreneur like risk taking ability
differentiate them from owner or business manager. This helps them to take entrepreneurial
plunge and offer unique solution for the well being of society. The skills and traits of successful
entrepreneurs like Tom Mercer and Elizabeth Gooch are illustrated below:
Skills and Trait
Prioritize the work: Most of the successful entrepreneurs are capable enough in terms to
schedule their task and prioritizing their responsibilities. They generally make the list of task and
arrange on the basis of priority and accordingly allocate significant amount of time for diverse
tasks. This time management skills are effectively possess by the entrepreneurs like Tom Mercer

and Elizabeth Gooch due to which they attained the target within specific duration and avoid
procrastination. Thus, it helps to effectively carry out diverse tasks successfully.
Problem skills: The path of carry out the venture for an entrepreneur is different from
other businesses due to which this skill needs to be desirably implemented by an entrepreneur.
Both Tom Mercer as well as Elizabeth Gooch are desirable entrepreneurs in terms to effectively
resolve the issues of business. Application of innovative solution helps to carry out smooth
process.
Discipline: It is significant trait that is either inborn or needs to be inculcated by an
entrepreneur to successfully bring transition while carrying out operations. Application of this
trait has helps various entrepreneurs like Elizabeth Gooch to flourish the market operations.
Thus, it assists the entrepreneur to stick within the objective and effectively faced the
complexities (Ratten, 2016).
Characteristic
Risk taking: This is the main characteristic that is possessed by an entrepreneur in terms
to discover the significant method to solve the problem by taking calculative risk. Entrepreneurs
like Tom invested significant amount of time as well as resources in terms to flourish the
operations of business. Innovative idea and available of suitable alternatives helps entrepreneur
to gain immense amount of success.
Passion: Strong passion of an entrepreneur helps them to move out of their comfort zone
and flourish the operation of their start up. This characteristic assist innovator to carry out
additional effort and each successive actions helps to effective accomplish overall objective for
immense success. While commencing business entrepreneurs like Tom mercer and Elizabeth
Gooch faced immense complexities in terms of resources to successfully implement the plan.
Perhaps passion leads to foresight vision in terms to successfully carry out the functioning in
desirable manner.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
The personality aspect of an entrepreneur helps to display their unique image within
society as they remain focused to resolve the problem either for personal motive or social cause.
Some aspects of personality in context to Elizabeth Gooch and Tom mercer are explained
underneath:

Self Confidence: Self believe and confidence is essential in order to incorporate
performance and overcome dynamic situation successfully. Such positive mindset motivates the
workforce to conduct their role strongly.
Foresight: Successful entrepreneur like Elizabeth Gooch and Tom mercer analyse the
external market which makes them to take favourable steps and exploit external opportunity
successfully.
Intelligence and self reliant: Prevailing aspect reflects that entrepreneur needs to be
visionary and self-reliant to implement their dream into actions focusing on ultimate objective
helps to gain successful position.
Big five personality model is used to better explain the personality aspect and attend
long-term objective successfully (Schaper and et. al., 2014). Explanation of different types of
personality aspects in context to the entrepreneurs are determined below
Extroversion: Entrepreneur who fall under this type of personality involved traits like
talkative, courage to explode new things and meet new people in order to give proper shape to
their business. Both the entrepreneur’s analyse opportunity and make effective team through
their treat
Agreeableness: These entrepreneurs are more relationship oriented which make them
Cooperative and friendly nature likeTom Mercer and Elizabeth Gooch carry out functioning by
remaining cautiously about the requirement of the team members.
Conscientiousness: On the basis of this trait people behave in a way they are socially
acceptable which helps them to guide the outcome or action in a successful manner.
Entrepreneur like Elizabeth Gooch were high in this trait which made them to accomplish the
objective.
Neuroticism: Individuals with neuroticism personality aspect can be either emotional
stability or emotionally instability. Both entrepreneurs were low in neuroticism as they do not
possess traits like emotionally weak, low self esteem, over think circumstances or belief as well
as remain in stress or anxiety.
Openness to experience: It reflects that the people are imaginative and have deep insight
over the subject. Tom Mercer experienced high openness to experience which help them to build
the career creatively.

TASK 4
P7: Examine how background as well as experiences can foster entrepreneurship
Elizabeth Gooch is a founder of easy solution and became a well renowned female
entrepreneur of United Kingdom. The role of easy solution firm is to sell out the operating
management software which helps clients to enhance the efficiency and carry out successful
operation
Background: Elizabeth started her career at the age of 18, when she worked HSBC bank
for at least one year then she switch your job and pick a part of consultancy for that basically of a
unique solution to large organisation later on that means at the age of 26 she decided to become
an entrepreneur and started her own venture for which utilised a personal Savings and borrowed
money from her love ones. The support from family helped Elizabeth a lot to take
entrepreneurial plant and established her own career. Now, she runs her own business and takes
significant steps in terms to overcome the hurdle significantly.
Tom Mercer is other renowned Entrepreneur who established MOMA food in London
United Kingdom. This MOMA become one of the rapidly growing brand that serve quality
breakfast local residence
Background: Tom Mercer was discipline and sharp student is successfully completed his
graduation from Cambridge University. Tom worked in corporate but later on realise his
inclination towards business and successfully carried out his own venture currently MOMA is
widely seen in supermarket store, train, Airline Company and has highly gained trust of customer
throughout its quality supplies. One aspect that makes this food sector different from other is the
innovative approach of term that let him to sell his various food outlet and transportation
companies to generate brand awareness. The internal member of company collectively work
together to bring innovation and develop new product to cover geographical market successfully.
CONCLUSION
From the above report it has been determined that entrepreneur takes an essential role
within the society by taking risk and explore opportunity for the well being of an economy.
Diverse types of ventures execute operation to facilitating expansion and attain long term
growth. Along with those small businesses takes immense role in terms to create immense job
options for local residence which help to strengthen the operations of overall economy by

successful expanding the size of operations. Therefore, the unique characteristics and support of
family member help innovator to face challenges and carry out sustainable performance.

REFERENCES
Books and Journal
Akehurst, G., Simarro, E. and Mas‐Tur, A., 2012. Women entrepreneurship in small service
firms: Motivations, barriers and performance. The Service Industries Journal. 32(15).
pp.2489-2505.
Anggadwita, G. and Mustafid, Q. Y., 2014. Identification of factors influencing the performance
of small medium enterprises (SMEs). Procedia-Social and Behavioral Sciences. 115.
pp.415-423.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Hall, J. and Wagner, M., 2012. The challenges and opportunities of sustainable development for
entrepreneurship and small business. Journal of Small Business & Entrepreneurship.
25(4). pp.409-416.
Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business. 22(2). pp.266-274.
Ratten, V., 2016. Female entrepreneurship and the role of customer knowledge development,
innovation outcome expectations and culture on intentions to start informal business
ventures. International Journal of Entrepreneurship and Small Business. 27(2-3).
pp.262-272.
Schaper, M.T. and et. al., 2014. Entrepreneurship and small business.
Online
Role of Start-ups and Small Business in today's economy. 2019. [Online]. Available through:<
https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>