Entrepreneurship and Small Business Management

This article explores different types of ventures, their impact on the economy, the importance of small businesses and business start-ups to the growth of the social economy, examples of entrepreneurs, entrepreneurial traits and characteristics, and experiences whether hinder or foster entrepreneurship.

Entrepreneurship and Small
Business Management
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Different types of ventures..........................................................................................................3
Similarities and differences between entrepreneurial ventures...................................................4
Impact of micro and small sized business on economy...............................................................5
Importance of small businesses and business start-ups to the growth of the social economy.....7
Examples of entrepreneurs covering one local entrepreneur, one global entrepreneur and one
social enterprise...........................................................................................................................7
Exploration of situational factors, similarities and differences...................................................8
Entrepreneurial traits and characteristics.....................................................................................8
Experiences whether hinder or foster entrepreneurship..............................................................9
Conclusion by comparing different entrepreneurs, their backgrounds and experiences.............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Entrepreneur is a person who set up and run their own business by taking various kinds of
risk in order to generate profit, revenue and for expansion of business. They are the one who run
business ventures by developing and selling innovative products and services to customers in
order to attract more number of customers and expand their business (Frederick, O'Connor and
Kuratko, 2018). Entrepreneurship can be defined as an activity of setting up business by taking
financial risk in hope of making profit. Entrepreneurship focuses upon developing and managing
business ventures in order to gain profit. There are various kinds of business ventures.
Entrepreneur is those people who run business ventures for the sake of making profit.
This project will lay emphasis upon explanation of different types of business ventures,
impact of those ventures on economy, impact of economy at different levels, examples of
entrepreneurs their situational factors, similarities and differences, entrepreneurial traits and
characteristics, ways in which background and experiences can either hinder or foster
entrepreneurship, and comparing and contrasting the different entrepreneurs, their backgrounds
and experience.
MAIN BODY
PART 1
Different types of ventures
Business ventures are run by entrepreneurs by using their skills, characteristics, resources
and taking risk in order to run a business successfully (Kuratko, 2016). Every entrepreneur starts
their business from micro sized business and slowly as the business brows and expands this type
of venture also changes. Different types of entrepreneurial ventures have been explained below:
Micro entrepreneurial venture
Business ventures that have 50 or less than 50 employees are known as micro ventures.
Such kind of ventures makes very less profit and face difficulty in sustaining within the market
in which they operate. These types of ventures are mostly private. It can be linked to lifestyle
topology. It can also be linked to female topology as such type of business is mostly run by
females.
Small venture
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Business ventures that have more than 50 but less than 100 employees are known as
small ventures (Tur-Porcar, Roig-Tierno and Llorca Mestre, 2018). Such kind of ventures focus
upon innovation, providing high quality products and services to their customers in order to grow
and sustain within the market in which they operate. Such kind of ventures runs their business
with a vision to change the world. Example of small ventures is Horizon 2020. These types of
ventures are mostly private. It can be linked to serial topology as these types of organizations
require developing and selling innovative products and services in order to generate revenue,
enhance profitability and grow.
Large venture
Business ventures that has more than 250 employees and make large revenue and
profitability comes under this type of venture (Read and et. al., 2016). In order to sustain within
the market in which they operate they focus upon bring continuous improvement and innovation
within their existing products and services or launch new product and service for their customers
in order to expand their business and enhance customer base. Some of the most common
examples of large ventures are Google, Microsoft etc. These types of ventures can be private,
public and social. It can be linked to serial topology as these organization require to continuously
introduce new innovative products and services into market in order to sustain within market and
gain competitive advantage
Social Venture
Business ventures that main aim is to fulfill needs and requirement of people without focusing
upon making profit. They focus upon solving social problems and fulfilling social needs of
people (Ughetto and et. al., 2019). Safe point Trust is one of the examples of social venture. It
can be linked to social topology as such type of organizations run for social causes and for
solving social problems
Similarities and differences between entrepreneurial ventures
Similarities: Organizational structure of small and large organization can be same. Main focus
of both large and small organizations is to make profit. Both social and large organization be
public as well as private.
Differences
Micro Small Large Social
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These types of
ventures have less
than 10 employees
These types of
organizations have
less than 50
employees.
These types of
organizations have
more than 250
employees
This type of
organization can have
any number of
employees.
Such type of
organizations mostly
do not have any
organizational
structure
Such type of
organizations can
have flat, hierarchical
or any other kind of
structure (Molotkova,
Khazanova and
Ivanova, 2019).
Such type of
organizations mostly
has hierarchical
structure but mostly
its organizational
structure is complex.
Such type of
organizations can
have any kind of
structure mut most
have flat structure
Mostly this type of
organizations have
sole proprietorship
These types of
organizations can
have both sole
proprietorship and
partnership
This type of
organization can be
public limited/
partnership or any
other depending upon
its type.
This type of
organization can be
public limited/
partnership or any
other depending upon
its type
Main goal of these
type of organization is
to sustain within the
market and generate
revenue
Main goal of these
type of organization is
to generate revenue
and expand business
Main goal of these
type of organization is
to generate revenue,
expand customer base
and expand nationally
and internationally
Main goal of these
type of organization is
to solve social
problems, fulfill needs
and requirements of
people without
targeting do making
profit.
Impact of micro and small sized business on economy
Micro and small sized business have huge impact upon overall economy of a country. In
UK approximately 95 percent of businesses are micro business, 4 percent of them are small
business and remaining is medium and large business. Both small and micro business not only
help in enhancing overall economy of UK but also helps in providing employment to people of
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UK. Both small and medium together provide approximately 48 percent of employment (33
percent by micro and 15 percent by small business). As per the below graph 21 percent turnover
is of micro business and 15 percent turnover is of small business which together help in
enhancing overall economy of UK (Gyimah and Boachie, 2018).
Figure 1 UK business by size
This statistic clearly helps in understanding that both micro and small business are
extremely important for overall economy of UK. In order to increase number of micro and small
business even government is taking initiative by proving funding to these organization so that
they can grow, enhance employment within country and help in enhancement of overall
economy of country. In current pandemic situation of Coronavirus, it has become even more
difficult for organizations to sustain within the market in which they operate which is directly
impacting overall economy of country (Gyimah and Boachie, 2018). Due to this government has
taken various initiatives for providing support especially to small and micro-organizations. Oher
than this government is also focusing upon providing funds to organizations to that they can
invest within their research and development department in order to motivate organizations to
bring improvement within their current products and services in order to grow in current
pandemic situation, provide employment to localities and contribute in enhancing overall
economy of the country.
This clearly helps in understanding that both small and micro business directly impact
overall economy of a country in positive manner. Growth of small and micro business can
directly help in enhancement of economy, GDP and employment rate. In fact, small and micro
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business are major strength of a country and approximately 50 percent revenue is generated due
to these types of organizations (Gyimah and Boachie, 2018). Employment opportunity for people
also get increased which further helps in increasing overall disposable income of people of UK
which eventually helps in increasing growth rate of country.
Importance of small businesses and business start-ups to the growth of the social economy.
Economy is extremely important and directly impacts various levels of society. It can also
be said that it directly impacts social economy of a country. In this small and micro sized
business plays a vital and important role. It directly helps in enhancement of employment and
reduce unemployment rate of country. More number of small and micro business increases more
opportunities for people of getting job. This is because if small and micro-organizations will
grow, they will require a greater number of employees. This will further help in increasing both
small and micro business further contributes in future growth of country at global level. As
growth of overall economy will eventually help country in gaining attention of various countries
and will eventually attract a greater number of MNC for growth of country. Growth of small and
micro business helps in keeping money at local level which directly stimulates local economy
that can directly help in growth of schools, colleges. It can also be said that growth of business
can directly contribute in growth of community (Gyimah and Boachie, 2018). For this even
government is taking an initiative to motivate entrepreneurs to take an initiative to tart their own
business by pitching their plan and if their plan is effective then government will provide them
funding to grow and expand.
Part 2
Examples of entrepreneurs covering one local entrepreneur, one global entrepreneur and one
social enterprise
Entrepreneurs are individuals who take risks and initiate their own business. There are three
types of entrepreneurs which are to be explained below –
Local Entrepreneur – Sacorro Ramos is local entrepreneur of UK who has a small book store.
She opened a book store at age of 19 with her husband in which she sold books and school books
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to students (Fabić, 2019). But slowly and gradually she made big fat money and her being a local
entrepreneur created great success in business.
One Global Entrepreneur – Bill Gates is one of the biggest global entrepreneurs as he is also
the founder of Microsoft and he has also grown his wealth over the years where the he can has
made business and has earned profits in business at global level.
One Social Enterprise – Social Enterprise UK (SEUK) is membership body of UK for social
enterprise (Crawford and et.al., 2020). The work which this organization carries out is research
and running campaigns along with other process of working socially.
Exploration of situational factors, similarities and differences
Situational factors – The situational factors of the local, social and global entrepreneurs is that it
depends on the external business environment whether the business will be supported by the
external environment or there will be any circumstances which may create hindrance in the
business overall or on large basis (Yukongdi and et.al., 2017).
Similarities – The similarities which the three constitutes which are local, global and social
entrepreneurship businesses is that all three business are based on how creative and effective the
businesses serve the society and the customers in market and fulfil the needs and demands
effectively and efficiently in significant manner.
Differences – There are various differences between local, global and social entrepreneurship
businesses because all three work on different grounds in providing the customers and the market
as per the demand and process which is being incurred on large scale (Goel and et.al., 2017).
This is main aspect in which all three businesses hinder on different scales and this constitutes
the major changes that are taken place.
Entrepreneurial traits and characteristics
There are various traits and characteristics which define the entrepreneur and these straits and
characteristics are as follows –
 Entrepreneur is good leader as they are able to manage and guide the other individuals
while working.
 This is the very basic quality of the entrepreneur that they are confident in building up
their own business on large scale (Farrukh and et.al., 2017).
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 Entrepreneurs also imbibe the quality of being open minded optimistic which helps them
in making and creating their own work and this helps them in making the business more
effective and efficient due to their positive and open minded characteristic.
 Entrepreneurs along with this should also be competitive which helps them in knowing
the competitors in the market and in the external business environment (Kerr and et.al.,
2017).
 Entrepreneurs also inculcate characteristic feature of being disciplined so that their
business works smoothly and in progressive manner.
 Entrepreneurs are also passionate about their work which makes them skilled
entrepreneurs on overall basis.
Experiences whether hinder or foster entrepreneurship
There are various aspects which sometimes hinder the entrepreneurship business and
sometimes it fosters the entrepreneurship business. this makes the lot more of the work which is
taken into accordance which helps in knowing what actually the entrepreneurs seek through the
business and how they fulfil the demands and needs of the customers by creating their process
and business procedures to be progressive in nature and through this the main thing is the
business is then fostered and which helps the entrepreneurs in creating their own identity through
the business which they are seeking and through which they reach many customers on large
scale. This also helps in letting know the scale of business on which the entrepreneurs are
actually working and generating revenues and increasing the profits (Bignotti and et.al., 2020).
On the contrary, there are various factors and aspects which create difficulties in the
business of the entrepreneurs through which they face problems and issues which usually comes
in the financial basis.
Conclusion by comparing different entrepreneurs, their backgrounds and experiences
The conclusion which is drawn from the business which the local, global and social
entrepreneurs initiate is done on the basis of how the market opportunities are being analyzed
and evaluated on the scales that the business will flourish and seek progressive patterns and
process throughout the business. This is the main reason why the entrepreneurs are the
individuals who are ready to take risks in the business and are able to cope up with the risks on
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large scale (Keane and et.al., 2018). The conclusion which is drawn by comparing entrepreneurs
is done on the basis of how the business is being taken into consideration and in what manner the
ways and the consequences will be taking place which helps the entrepreneurs in working at
local, global and social level by expanding their scale of business and helping reach the
customers on large grounds in the market. Also this has helped the entrepreneurs in evaluating
the market effectively and efficiently in significant manner.
CONCLUSION
Thus, it is concluded from the above report that local entrepreneur, global entrepreneur and
social enterprise has helped in knowing the scope, similarities, differences and situational factors
in brief. Along with this, entrepreneurial traits and characteristics were also indentified on small
grounds and how the experiences hinder and foster the entrepreneurship process. Further,
conclusions were drawn by comparing and contrasting various entrepreneurs various types of
entrepreneurs.
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REFERENCES
Books and journals
Frederick, H., O'Connor, A. and Kuratko, D.F., 2018. Entrepreneurship. Cengage AU.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage learning.
Tur-Porcar, A., Roig-Tierno, N. and Llorca Mestre, A., 2018. Factors affecting entrepreneurship
and business sustainability. Sustainability, 10(2), p.452.
Read, S., and et. al., 2016. Effectual entrepreneurship. Routledge.
Ughetto, E., and et. al., 2019. Female entrepreneurship in the digital era. Small Business
Economics, pp.1-8.
Molotkova, N.V., Khazanova, D.L. and Ivanova, E.V., 2019. Small business in digital economy.
In SHS web of conferences (Vol. 62, p. 04003). EDP Sciences.
Gyimah, P. and Boachie, W.K., 2018. Effect of microfinance products on small business growth:
emerging economy perspective. Journal of Entrepreneurship and Business
Innovation, 5(1), pp.59-71.
Fabić, M.G., 2019. Building the Entrepreneurial Ecosystem an Atempt to Reconsider the Role of
the Entrepreneur. ICAMSS’19.p.10.
Crawford, J. and et.al., 2020. What does it take to be a social entrepreneur?: Authentic leaders
and their effect on innovation. In Leadership styles, innovation, and social
entrepreneurship in the era of digitalization (pp. 282-310). IGI Global.
Yukongdi, V. and et.al., 2017. Entrepreneurial intention: a study of individual, situational and
gender differences. Journal of Small Business and Enterprise Development.
Goel, R.K. and et.al., 2017. Dynamics of knowledge spillovers from patents to entrepreneurship:
Evidence across entrepreneurship types. Contemporary Economic Policy.35(4).pp.700-
715.
Farrukh, M. and et.al., 2017. Entrepreneurial intentions: the role of family factors, personality
traits and self-efficacy. World Journal of Entrepreneurship, Management and
Sustainable Development.
Kerr, S.P. and et.al., 2017. Personality traits of entrepreneurs: A review of recent literature.
Bignotti, A. and et.al., 2020. Which types of experience matter? The role of prior start-up
experiences and work experience in fostering youth entrepreneurial
intentions. International Journal of Entrepreneurial Behavior & Research.
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Keane, S.F. and et.al., 2018. Comparing how entrepreneurs and managers represent the elements
of the business model canvas. Journal of Business Venturing Insights.9.pp.65-74.
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