Entrepreneurship & Small Business Management

This document discusses entrepreneurship and small business management, including the types of entrepreneurial ventures, their relation to the typology of entrepreneurship, and the impact of micro and small businesses on the economy. It also explores the characteristic traits and skills of successful entrepreneurs and how background and experience can hinder or foster entrepreneurship.

Entrepreneurship & Small
Business Management

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Part 1.....................................................................................................................................................3
TASK1..................................................................................................................................................3
P1 types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship................................................................................................................................3
P2 Similarities and differences between entrepreneurial ventures.....................................................5
TASK2..................................................................................................................................................7
P3 Data and statistics for illustrating how micro and small businesses impact on the economy........7
P4 standing of small businesses and business start-ups to the growth of the social economy............9
Part 2...................................................................................................................................................11
TASK3................................................................................................................................................11
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers..........................................................................................................11
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set...........................................................................................................................................13
TASK4................................................................................................................................................14
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship..............................................................................................................................14
CONCLUSION...................................................................................................................................15
REFERENCES....................................................................................................................................16
Books and journals..........................................................................................................................16

INTRODUCTION
Entrepreneurship is process of starting a new innovative business with small amount of
capital and limited resources, this type of business are small scale business which has
innovative ideas to change the world by their guidance and ownership. The leaders who run
this type of business are known as entrepreneurs. They have their full control over business
activities where they arrange finance and other resources for innovative idea and execute
functioning. Small sale business is that type of firm which have low resources and capital
investment but have innovative uses and new products which will help other enterprises as
raw material are base product for functioning in market. This report is divided in two parts
where first one show all the discussion related to entrepreneurship and small scale industry
will be mentioned (Parnell, Long and Lester, 2015). The type and relation between different
small scale firms will be mentioned where needs and impact of this will be identify on social
and economic conditions of nation will be identified. In second part, it will also analyse that
what are the growth factors which help start-ups in expanding their business and what skills
and qualities are required to govern business. In last, entrepreneurial personality reflect
entrepreneurial motivation and mind-set will also studded where background and experience
can hinder or foster entrepreneurship will identified.
MAIN BODY
Part 1
TASK1
P1 types of entrepreneurial ventures and explain how they relate to the typology of
entrepreneurship
Entrepreneurial ventures can be defined as the organization that places innovations,
opportunities and expediency in the market in order to create and produce social and
economic value. Entrepreneurial ventures always driven form innovations, and ready to
challenge traditional business knowledge (Zhou, 2016). Entrepreneurial ventures have ability
to develop and create business from the opportunities offered by changes. These ventures are
highly motivated in business because of uniqueness of their services. Entrepreneurial

ventures not stick on same line of business for long time; they always try to expand their
business scope. Entrepreneurial ventures learn to follow the market trends, and always ready
to deal with changes and difficulties of the market. Entrepreneurial ventures take risks and
initiatives to earn profit. Increase in the community capital creates and influences the positive
environment for new entrepreneurial ventures.
Different types of entrepreneurship are discussed below –
 Based on type of business – Entrepreneurship is depending on the type of business
basically there is three types of business traders, manufacturers and agricultures.
Selling of manufacturing and producing goods come under trades. Mostly trading
companies purchase products, maintain stock and deliver products to the customers.
Trading businesses involves two kinds of seller’s retailers and wholesalers. A
manufacturing business is the business uses raw material and components to produce
finish goods. Manufactures are those who are involved in producing and
manufacturing of products with the help of raw material, parts and components.
Manufactures produce or manufacture goods and then sell finish goods to the traders
and then traders sell those good to the customers with the help of wholesalers and
retailers. Agricultural business includes growing, trading of agricultural products,
irrigation, mechanization and breeding, crop production, seeds supply.
 Acquisitive entrepreneurship - Acquisitive entrepreneurship is the entrepreneurship in
which person learn from the competencies and become entrepreneur. It acquires from
the competitive environment; it easily achieves the technical ability and capacity of
the competitors. These types of entrepreneurship find opportunities in threat and try to
convert those threat and weakness into strength.
 Incubative entrepreneurship – These types of entrepreneurship generate new ideas and
ventures within the organizations. These types of entrepreneurship use different-
different type of technologies to promote innovations and creations. Incubates always
develop and produce new varieties types of product and creates product
differentiation in the market.
 Private Entrepreneurship – Private Entrepreneurship is the entrepreneurship which
commenced under the private sector. Government give support service which
encourage the private entrepreneurship. Economic development is balanced and
speedy with the support of public and private entrepreneurship.

 Public entrepreneurship – This entrepreneurship is undertaken by the government
through their various development agencies and organizations. developed or
underdeveloped all countries take a public initiative in entrepreneurship ideas to fulfill
the initial insufficiency of private entrepreneurs.
 Mass Entrepreneurship - This type of entrepreneurship appears in an economy where
a favorable climate of motivation and encouragement exists for developing and
creating a huge range of entrepreneurship is known as mass entrepreneurship.
 Administrative Entrepreneurship – This type of entrepreneurship is depending on the
administrative functions and techniques. Administrative entrepreneurship is the
systematic and organized entrepreneurship which handle future situations in a more
effective and efficient way that provides advantages and a competitive edge.
Based on the size of enterprises – Entrepreneurship is also depends on the size of the business
or enterprises. Small-scale entrepreneur is the entrepreneur who invest small amount and
large-scale entrepreneur who invest large amount in the business (Chatterjee, Ismail and
Shaw 2016).
P2 Similarities and differences between entrepreneurial ventures
Small-scale enterprises Scalable enterprises
 Small-scale is small in size and barley
profitable but these enterprises
generate profit just to improve their
standard of living.
 Funding of small-scale enterprises
comes from family, mortgage or
small business loans.
 Small scale businesses mostly star
with the stolen idea of other small
enterprises.
 The main motive behind the small-
scale enterprise is to earn profit which
is sufficient to feed their family.
 Example of the small-scale
 Scalable enterprises start with the
vision to change the world. Scalable
entrepreneur believe that their vision
is able to change the world.
 Funding of scalable enterprises
generated from venture capitalist.
 These enterprises start with the
innovative and creative ideas.
 The aim of the scalable enterprises is
to bring innovative and creative idea
in the market.
 Example of scalable enterprises are
Facebook, Instagram, online shopping
etc.

enterprises are grocery stores,
electricians, carpenters, plumbers,
consultants, etc.
Large scale enterprises Social enterprises
 Large scale enterprises have definable
life cycle. Most grow with the help of
innovations and variety of products.
 Large scale enterprises use advanced
technology to develop products in
order to meet with changing customer
needs.
 These enterprises start on the big
scale and consist more than 200
employees.
 Large scale business acquires or
merges other small and needy
enterprises to expand the business.
 Examples of large-scale enterprises
are Google, Apple Inc., Amazon.com,
Adobe, Microsoft, Walmart.
 Social enterprises are the enterprises
which create to fulfil the social needs
and to solve social problems.
 Social enterprises are majorly focus
on social needs, wants and issues.
 These enterprises are for welfare of
society do not make money only
serve to the poor people.
 Entrepreneur of the social enterprises
are the social workers; their main
motive is to make the world a better
place.
 Faire Collection is an example of a
social enterprise that serves the
common good by employing
disadvantaged people at a fair wage
Start-up enterprises Large scale enterprises
 The most important thing of start-ups
is innovation.
 These are new launched enterprises
which work on small level.
 Start-ups focus on winning market
share as possible.
 Starts mainly run with private means
and with the help of family and
friends
 Mostly large-scale businesses are
depending on copied ideas not on
innovation.
 These enterprises established earlier
and work at large level.
 Large scale business focus on earn
more and more profit and market
shares.
 Large scale enterprises run with the

 Start-ups use advance technology in
order to fulfill customers’
requirements.
 Example of start-ups Observe AI,
Airbnb, Spacemaker.
huge amount of investment generated
from business loans.
 Large scale enterprises use advance
as well as traditional technology.
TASK2
P3 Data and statistics for illustrating how micro and small businesses impact on the economy
Small scale business is the important part of firm
Small scale business has great impact on firm business this is because they have great
contribution in GDP of nations. This can be seen in UK as small sale industry has 30%
contribution in overall GDP of UK which is more than any other sector. This contribution
also help UK in maintain of standard of living and innovation in business as well as whole
nation. Small scale industries also contribute more than 51% in private sector. This also
provides employment opportunities to 2 million people in UK. This can be seen under the
tables and data which show that there is various impact of small, micro and medium on
economic and social condition of enterprises. From figure number 1 it can be seen that, there
is micro and medium enterprise provide large number of employment in UK. Their
contribution is increasing with every financial year and motivation people of UK to work and
get innovative product. Figure number 2 is showing that contribution of micro and small
scale in increasing as compare to large scale industry as they help in innovation product
which bring more demand and satisfy customer equally (Alvarez‐Garrido and Dushnitsky,
2016). This shows that they have more the 90% contributions in employment generation and
have positive increase every year. Figure number three also shows that firm these have
contributed more than a year and will leads to success full future and growth in UK. This also
helps people of in increasing their standard of living, this can be seen in report publish by UK
government that people are spending more as there living stands increase. There is increase in
annual in expenditure by 20% which is incurred by locals on consumption of goods and
services.

Figure1:- Growth in UK businesses in the private sector by number of employees (2000-
2019)
(Source: - Growth in UK businesses in the private sector by number of employees)
Figure 2:- % Growth in number of business types from 2000 to 2019
(Source: - % Growth in number of business types)

Figure3:- Proportion of Businesses Reporting A Profit By Business Size
Q2 2017 to Q2 2019
(Source: - Proportion of Businesses Reporting A Profit By Business Size)
This all help UK in becoming fifth fastest growing economy which is also achievement for
attracting FDI in economy which will help nation in further growth. Small scale has major
contributions in bringing FDI in nation this is done with the help of innovative products in
manufacturing. They use more innovative products which also get attention of new and
outside investor and because of it there are more chances of success which attract FDI in
firm. According to the report publish by UK government, there is regular increase in FDI
which is around 20% annual investment and small and micro scale industry contributions in
this are 82%. So it is clear from this that they contributor in FDI more than any other sector
and act as lifeline for UK economy by various contributions and importance. So government
have to small scales wisely and should formulate polices regarding firm (Wallmeroth, Wirtz
and Groh, 2018).
P4 standing of small businesses and business start-ups to the growth of the social economy
There are various kinds of importance which small scale and stratus provide to social
as well as economic condition of nation. They always aim to use resources of nation in
effective manner that common objectives can be achieved. Some of these are mentioned
below:
Increase standard of living: The first contribution of small scale to society is that it
increases the standard of living. This can be seen as it use the resources which are present in
society and are not used by society which is equal to wastage of those them, business firm

will use them and generate money which will increase the contribution towards GDP this
contributions leads in increased purchasing power of employee and increase their standard for
living. This will also motivate people to purchase more and more and eliminate the threat of
unpleasant economic condition with strong social culture (DeSantola and Gulati, 2017).
Generate employment opportunities: the second major impact of small scale
industry in UK is that it provides employment opportunities to employee who is willing to
work with an innovative used and maximum productivity. Unemployment is that problem
which is faced by every country and has maximum negative impact on nation’s profitability
and productivity. It also harm society of nation as unemployed persons will act as miscreants
in society. According to government data small scale and start-up business are playing
important role in increasing job opportunities in UK from last 5 years they have generated
more than 5 million jobs in which 50% are permanent nature. This all will help in money
generation and will lead to success of nation. This will also fulfil basic requirements of
people which are food, clothes and shelter.
Bring innovation: Innovation is key for success which leads in both increase in profits and
productivity. In small scale industry the main motive is brings innovation in products and
work on innovative products and service. This will make success full entrepreneurs and will
leads to good society. Innovation will also help in maintained of resources and reinvent them
for better production and decrees the wastage of human efforts with use of technology and
science (Burns and Dewhurst, 2016).
Support large scale industry: small scale industry also work as support to large
scale industry as they supply raw material in process formed for large scale firms. This helps
society in using resources in more understating way which leads in increase productivity and
better coordination in member of society.

Part 2
TASK3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
Skills and qualities are those tools of every entrepreneur which make them good leader and a
great business man which will lead organization with an innovative ides towards goals and
objective of firm. Their quality also help firm in maximising profitability and productivity,
which will impact on firms in long range objectives. With this view a entrepreneur always try
to sharpen its skills and objectives which can help them in getting advantage in business and
leads firm more effectively (Järvi, 2015). There are number of opportunities in business
environment for new start-ups and companies which they have to identify with help of their
special abilities and skills for motivation and guidance of employee towards firms objective
and keeping them all together with fulfilment of their objective.
Elizabeth Gooch is the owner of EG Solutions PLC which provides consultancy services to
its customers in form of software’s and other technical support. Elizabeth started working in
HSBC bank where she work for 12 months and then join an consultancy firm which she left
after 8 year working for starting her own business consultancy business where she suffered
lots of problem and challenges but she never lose hope and now her business is one of most
popular start-ups in UK (Dana, 2018).
Tom Mercer is the owner of MOMA foods where they provide healthy and tasty food.
Tom Mercer is also a good leader and has all skills which can help firm in management and
leading towards profit and productivity. He is a scholar from Cambridge University where he
learned about management. He started his business with help for is friends and family where
there is too low capital investment.
The key traits as well as skills observed within Elizabeth Gooch and Tom Mercer are mention
below:
Elizabeth Gooch Tom Mercer
Traits
 Innovation: She is innovative
entrepreneur this is because
 Innovation: tom mercer is also an
innovative leader as they he

when her company’s
performance going down she
bring new and innovative kind
of software which help firm in
recovering for tough times.
 Feedback Approach: she
always believes in taking
feedbacks from its customer
where they can improve
performance of firm.
introduce new and healthy food
concept in restaurant food.
 Experimentalist: he always love to
do experiments in its working,
Skills
 Motivator: Elizabeth Gooch
has skills of motivation where
she motivate employee of firm
towards achievement of goals.
 Communication: she is also a
good communicator where she
ensures smooth flow of
information in firm where there
can be decreasing in number of
products.
 Focused: he is focused in his
work where the main focus is to
maintain the production and ensure
customer satisfaction.
 Mindfulness: he always use
positive concept for solving
problems and use good measures o
report firm.
Characteris
tics
 Team-Player: She believes in
effective team management
which can be seen in her
working where. She uses to
work in team for achievement
of firms goals.
 Problem Solving: she trusts in
forthcoming to every problem
and resolution it so that it will
not affect employees overall
working of organisation.
 Risk-taker: e always takes risks as
they are the key to more profits.
He can join a job but he take a risk
to start business for with
innovative ideas.
 Leadership: He has quality to lead
people as he leads his friends in
direction where it wants to lead
them for achieving success in
business.

The major difference between successful entrepreneurs and business managers are
mention below:
Basis Successful Entrepreneurs Business Managers
Focus Successful entrepreneurs underline on
making new commercial ideas and
applying them in marketplace.
The emphasis of business manager’s
effort on everyday activities did in
commercial processes.
Status Entrepreneurs are the proprietor of the
commerce association.
Executives are an worker of the
administration.
Motivation Revenue expansion by carrying out
doings in real manner is the incentive
issue for a fruitful entrepreneur.
Loud out the processes doings in the
business smoothly is the inspiring
issue for a director within firm.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set.
The big five personality traits and five factor model are known as OCEAN Model. This
model is basically for taxonomy for personality traits. This model consists of five different
types of personalities which are described below-
 Openness: It is that Quality of a leader of firm which help them in management of world
within the organtional it will develop according the needs of firm an openness will help
firm in making flexible and sound polices for maintain quality in firm.
Openness
Conscientio
usness
Extraversio
n
Agreeablen
ess
Neuroticis
m

 Conscientiousness: this is that skill which is require by every leader and entrepreneur as
this help them in be positive in adverse situation and know what is going in business
which can be used for bringing out firm from that situation. This useful for company of
use its resources adequately and bring productivity in firm.
 Extraversion: It is connected to the energy of businesspersons to get linked with other
persons whether they are sociable or introverted in wildlife. They both are introvert in
nature from their youthful as they don’t get attach with persons easily.
 Agreeableness: It is shows those ablates which included the trust level of entrepreneur on
some special persons were they will lose their ability to control the decision making
power and can easily manipulated by those people who are good in their eyes.
 Neuroticism: This feature of character trait includes sensitive stability of person in
relation within anger or depression issue. Here both the leaders are self-motivated where
they have no needs to be depressed or angry on and because of other.
TASK4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
 Level of Education: level of education is the important factor which is related to
development of firm here the education level of both the entrepreneur is good. Tom
Mercer is a graduate from Cambridge University which is biggest institute for
management study and will also help them in leading the organtional in direction related
to goals. Elizabeth Gooch is also employee in HSBC bank which is the sign that she is a
good graduated student which have bright carrier in academic studies.
 Nationality: Nationality also play an important role in functioning of entrepreneurs as
leader have to leader the qualities and culture of people where it is working. The culture
and study of behaviour is important part of firm. This is because firm have to find out
number of ways where it has to deal with functions.
So it can be seen that firm have to use number of functioning which can help leaders and
business man in getting what have to be done and what can it do for facilitating changes and
get motivation for working.

CONCLUSION
It can concluded from above mentioned report that entrepreneurship is important part
of business which help firm in getting success in limited period of time. Entrepreneurship
helps business to get innovative ideas which will leads to success of firm. There are number
of entrepreneurship ventures which help firm in getting access to number of opportunities
they have both similarity and dissimilarity according to their nature but it is founded that all
type of firm will help in maintain nations economic and social stability because of their
fetchers like employment and standards of living.in the end it can be said that
entrepreneurship and small scale industry are playing important roles in development on
nation were skills and knowledge of entrepreneur can be used to get maximum advantage in
business (Ratten, 2016).

REFERENCES
Books and journals
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.
Dana, L.P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Järvi, T., 2015. Production of entrepreneurship in small business activities of students.
Journal of Small Business and Enterprise Development.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
DeSantola, A. and Gulati, R., 2017. Scaling: Organizing and growth in entrepreneurial
ventures. Academy of Management Annals, 11(2), pp.640-668.
Wallmeroth, J., Wirtz, P. and Groh, A.P., 2018. Venture capital, angel financing, and
crowdfunding of entrepreneurial ventures: A literature review. Foundations and
Trends® in Entrepreneurship, 14(1), pp.1-129.
Alvarez‐Garrido, E. and Dushnitsky, G., 2016. Are entrepreneurial venture's innovation rates
sensitive to investor complementary assets? Comparing biotech ventures backed by
corporate and independent VCs. Strategic Management Journal, 37(5), pp.819-834.
Chatterjee, R., Ismail, N. and Shaw, R., 2016. Identifying Priorities of Asian Small-and
Medium-Scale Enterprises for Building Disaster Resilience. In Urban Disasters and
Resilience in Asia (pp. 179-194). Butterworth-Heinemann.
Zhou, B., 2016. Lean principles, practices, and impacts: a study on small and medium-sized
enterprises (SMEs). Annals of Operations Research, 241(1-2), pp.457-474.
Parnell, J.A., Long, Z. and Lester, D., 2015. Competitive strategy, capabilities and
uncertainty in small and medium sized enterprises (SMEs) in China and the United
States. Management Decision.
Online
Growth in UK businesses in the private sector by number of employees [online] available
through< https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts>
% Growth in number of business types [online] available through
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts>
Proportion of Businesses Reporting a Profit by Business Size [online] available through
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts>