Entrepreneurship and Small Business Management

Entrepreneurship and Small
Business Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Different type of entrepreneurial ventures and their relation to the typology of
entrepreneurship.....................................................................................................................3
P2 Similarities and difference between entrepreneurial ventures..........................................4
P3. Interpretation of relevant data and statistics to define how micro and small businesses
impact on economy.................................................................................................................6
P4 Importance of SME to growth of social economy............................................................8
P5. Characteristics, traits and skills of successful entrepreneurs...........................................9
P6. Aspects of entrepreneurial personality depict motivation..............................................10
TASK 4..........................................................................................................................................10
P7: Background and Experience can hinder or foster Entrepreneurship..............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Entrepreneurship is the concept of undertaking extensive risks with a view to gain the attention
of large number of individuals (Burns, 2016). The owner of an entrepreneurial venture is termed
as an entrepreneur. The present report seeks to explore the different types of entrepreneurial
ventures along with their typologies. Further, it includes the impact of SMEs over national
economy. Further, it includes the aspects of entrepreneurial personality demonstrated with the
assistance of OCEAN model. Lastly, it includes the skills of 2 renowned entrepreneurs along
with the factors that hinder or foster their entrepreneurship.
P1 Different type of entrepreneurial ventures and their relation to the typology of
entrepreneurship
Entrepreneur can be viewed as a person who is not afraid to undergo risks as they have the intent
to come up with innovative and unique offerings that have the potential to resolve the issues
faced by society at large (Kirzner, 2015). In this regard, it is identified that there are various
types of entrepreneurial ventures upon which a discussion is given beneath:-
Small business:
These are the form of entrepreneurial ventures which require lower amount of venture capital. It
is usually started by one person and has the aim of generating satisfactory amount of profitability
and revenues through provision of goods and services of high quality. These businesses function
with the motive of earning huge profits. They consist of less than 50 employees and have an
overall net worth of 2 million Euros. They do not have a wide scope as their only intent is to earn
high income in the form of profits. Small businesses are majorly found within the confines of
construction and production sector. For example: Orion Electrotech Limited
Large Enterprise:
These ventures require large amount of investment. Such extensive financial resources provide
assistance to them in expanding their growth and developing themselves in accordance with the
market. Their main motive is to earn huge revenues as well as profits by undertaking risks. These
organisations consist of over 5000 individuals and have an overall turnover of 1.5 million Euros.
They have a wide scope as they intend to enhance their scale of operations with the passage of
time (Landström, Harirchi and Åström, 2012). For example: Marks and Spencer, TESC and
many more.
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Social Enterprises:
These are the ventures which are setup with the sole intent of ensuring social welfare of
individuals. Social entities are generally managed and run by trustees who intend to work in a
collaborative manner for the welfare of society as a whole. These entities are usually funded by
large scale companies as their aim is to earn goodwill in rapid course of time. For example:
Oxfam, Save the Children and many more.
Scalable Enterprises:
These are the ventures whose entrepreneurs do not intend to run within the confines of small
business area. These entities emphasize over the provision of high quality offerings with a view
to maximise their profitability (Wright and Stigliani, 2013). They have restricted scope owing to
its functioning with the concern of all the partners. The main intent of scalable enterprises is to
enable business development. Example: Partnership and automate solution
Types of entrepreneurship
Below discussed are the various typologies of entrepreneurship:-
Lifestyle enterprises:
These are the entities which are mainly aimed at inflating the standard of living of personnel by
providing them with job opportunities. As a result of this, their lifestyle and living standards get
significantly enhanced.
Growth firm:
These are the entities whose sole motive is to earn extensive profits and sale. The entrepreneurs
hereby come up with new ideas so as to solve the issues faced by society and subsequently fill
the market gap to enhance the venture’s profitability (Bridge and O'Neill, 2012).
P2 Similarities and difference between entrepreneurial ventures
There are different types of entrepreneurial ventures that have already been discussed
above. In this regard, it is also determined that these ventures differ from and are alike each other
on the basis of a number of aspects. It is essential to take into account the similarities and
differences lying between the different entrepreneurial ventures in order to ascertain probable
opportunities and threats associated with the same. In this relation, a discussion over the same is
given beneath:-
Similarities between small, large, scalable and social entrepreneurs
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