Entrepreneurship and Small Business Management: Types of Ventures, Impact on Economy, and Traits of Entrepreneurs

This report covers various types of entrepreneurial ventures and their typology, their impact on the economy, and the traits that differentiate entrepreneurs from managers. It also discusses the importance of small businesses and start-ups in the growth of the social economy.

Entrepreneurship and
small business
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship..3
Similarities and distinction between types of entrepreneurship..................................................4
Assess and interpret the statistics and data in order to illustrate how micro and small business
impact the economy....................................................................................................................5
Importance of small business and start ups in growth of social economy..................................7
Traits, characteristics and skills of entrepreneurs which differentiate them from managers......8
How aspects of entrepreneurial personality can reflect entrepreneurial mindset and
motivation...................................................................................................................................9
Analysis of how background and experiences can either hinder or foster entrepreneurship....10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A businessman is a person that plan and operates the business with the support of the
very limited resources with appropriate plan and it also is a single individual obliged for the risk
and profits that is gained by the functioning of the business entity. The aim of the business
majorly includes the products and services instead of the current business framework. There is
little difference among the proprietor of the small business organisation and an entrepreneur but
they both are having similar responsibilities (Abou-Moghli, and Dandis, 2021). The aim of the
small business organisation is to deal in already known products whereas, the entrepreneur
concentrates on the several creative and innovative services and products and due to it the small
business owners and apt to make deal with the understood risk at the time when the
entrepreneurs are the major risk takers. The following report will cover about the circumstantial
examples of entrepreneurs to exemplify the scope of entrepreneurship covering one local
entrepreneur, one global entrepreneur and one social enterprise. In addition to it, exploration of
their situational factors, similarities, differences and it will also include discussion on their
shared entrepreneurial traits and characteristics. Moreover to it, analysis of how background and
experiences can either hinder or foster entrepreneurship, providing specific examples to support
your line of argument and conclusions that are drawn from comparing and contrasting the
project entrepreneurs, their backgrounds and experience and the extent to which it has influenced
them.
TASK
Various kinds of entrepreneurial ventures and how it relates to typology of entrepreneurship.
The entrepreneurial entity is the one that is initiated and operated by an individual with
having limited amount of resources and also includes high risk (Aryal, 2021). The major aim
linked with it is the enhancement in growth as well as profitability and also the particular
business is majorly featured by the innovative and strategic method. The several types of the
business entities are mentioned below:
 Small Business – It is the organisation that have small number of working staff that are
around between 0 to 50 and are usually invested by the friends, family, taking business
loans and also by their own savings. The main goal of it is to earn their living by

generating adequate revenue as in accordance to not to sell the company because of the
lack of business capital.
 Large Business – Large businesses that consist of more number of the workers in
comparison to small business organisation which are mostly focused in providing new
services and products to the consumers in accordance to their preferences, taste,
competitors, laws etc (BAKARE, and LAWAL, Cantner, and et.al., 2021). They are more
focused in introducing the new segments of their core offerings which have the main
objective to grow and scale up their fucntioning in accordance to take over the large
market area.
 Social Business – In this type of the organisation their aim is not earn profit rather than it
focuses on the social welfare and charity campaigns. These organisations appempt to
better the standard of living of the people by their services and goods.
Typology of entrepreneurship
In the area of the entrepreneurship, typology refers to something that shows the
categorization of types of the entrepreneurship. These typology is mentioned below briefly:
 Lifestyle Firm – In this kinds of entity are focused to better the standard of living of the
people by offering them top quality services and products that being given in the market
area and because of its social welfare operations and it also gives people the employment
in order to make them work and earn their living and better their standard of living.
 Growth Firms – It is the organisation that are purpose of scaleable and growth so that
the firm can attain the success (Carter, Leitch, and Stead, 2021). It is appropriate for the
small as well as large scale business organisation as they will capable to gain success
because of their main aim i=of generating revenues.
Similarities and distinction between types of entrepreneurship.
Differences
Basis Small Large Social
Equity The equity of this
company is hold with
the entrepreneur.
In it equity gives in the
hand of the investors,
owners and public.
The members of the
company are the
owners.

Objective To enhance profits. To generate revenue
and growth and scale
the firm.
Make sustainable
solution for the
social issues or
campaign.
Similarities
Basis Small Large Social
Living standard They gives the top
quality merchandise to
the individual in order
to their standard of
living is improved
(Dana, and Anderson,
2021).
They gives working
opportunities and the
top quality products
and services to the
individual in order to
make their living
standard is improved.
These firms are
focused to better the
lifestyle of individual
by taking up their
social hindrance and
issues..
Ability to find
opportunities
The proprietor analyse
the situation and
determine the chances
by which they can gain
profit.
Such management
have the task of
determining the
potential chances so
that the development
is make sure of it.
The social enterprise
holds the chances to
resort the social
problems.
Assess and interpret the statistics and data in order to illustrate how micro and small business
impact the economy.
There are several kinds of the business firm that impact the over all economy because of
their contribution by earning revenues and paying more taxes so it is very essential (Fayolle,
2021). Those several types of the business organisations are mentioned below briefly:
 Micro business – Micro businesses are those organisations that are offering their
products in the niche market area with having very few number of employees range
between 0 to 9 and also their turnover is very low at around 2 million pounds per year.

 Small business – The firms that are classified in this category are the one who are having
more market share as well as having more working staff more than 10 and also less than
50 workers. Small businesses is having the turnover more than 2 million pound and less
than 10 million pounds per year.
 Medium scale businesses – In medium size businesses, organisations are consists of
more than 50 employees and last around 250 working staff (Garçon, and Nassif, 2021).
Companies in this segment are having the turnover around less than 50 million pounds
per annum and also company deals in large market area with several products.
 Large Scale businesses – In this type of the organisations it is the large scale business
that contains more than 250 workers having several departments with board of directors.
These organisations are having more than 250 workers with having its turnover of more
than 50 million pounds and also company is having market share of domestic as well as
global market area.
Factors which impact on the economy
The micro and small organisations have an essential role in the country's economy of the
United Kingdom. In accordance to the recent studies, it was understood that the small scale firms
have more chances of growth or they have more high growth rate in comparison to other type of
organisations. As because of the vast level of assistance from the government to the small as well
medium firms such as fiscal schemes to give the loan to them and several more and It also assist
in enhancing their business profitability (Guerrero, and Urbano, 2021). One of the components
that supports in betterment of the economy of the country UK that involves the high rate turn
over. The enhancing rate of turn over of the small medium enterprise shows sentential growth in
the economy as there are more revenue by more sales enhancement that supports in gaining more
tax and income for the economy.
Other element is export opportunities that assist in increasing GDP as there is rate of the
foreign currency in the country that immediately enhances the GDP of the country, hence, giving
an outcome in bettering the over all economy.
Employment Opportunities is the another element, which indicates that the small scale
organisation which gives more opportunities employment in comparison to the other
organisations like medium scale and large scale which provides low opportunities. It almost
gives around 98.3% of the jobs opportunities that gives outcomes in the more per capita income.

Affect on the several economies:
 Regional – The micro as well as small business organisation in the United Kingdom
contributes in the evolution of their local economy and also aids the local society in
several ways. For example, it gives job opportunities to the domestic people that
enhances the rate of employment and better their habits of expenditure.
 Local – The small and micro scale organisations also supports in boosting the economy
as these organisations gives the individual those areas that can assist them to interact at
the time when it also permits them to have convenient access to the crucial merchandise
(Mendoza, Coule, and Johnston, 2021). For example, restaurants and the coffee places
permits people to interact whereas, small medical, groceries and many more assists in
attaining the requirement of the crucial products that supports in enhancing standard of
living of the individuals as well as to improve the economy of the local society.
 National – The small and medium enterprise assist in rising the economy of the country
as it gives opportunities of the employment to the individual that gives outcome in
bettering the per capita gains and hence it is the major source of contribution in the GDP
of the country. This also motivates several innovation by making the latest tech or
strategies which can add more worth to the industry and also helps in long term
betterment of the economy.
Importance of small business and start ups in growth of social economy.
Small and micro business organisation does not have major effect in the industry of the
businesses that are known to be the backbone to the economy of the company as it maintain the
functioning of the economy (Muxsiddinov, and Yuldashev, 2021). The need and importance of
the small businesses, micro businesses and start ups in the company is mentioned below:
 Job Opportunities – The individual that operates in the small scale organisation which
crucial asset in all types of the firm. The individual that are not able to get proper
employment in the large scale firms apt to be the more worthy asset for the small
organisation and it gives the employment opportunity in which it minimises the rate of
unemployment.
 Living Standards – The small business and start ups provides top quality products as
well as services to the individuals that assists in betterment of their living standards. In
addition to it, the opportunities of the jobs gives and also supports the workers, owners

and consumers to better their standard of living as the buying power of the consumers
increases because of their source of income.
Traits, characteristics and skills of entrepreneurs which differentiate them from managers.
A businessman is the one that is capable of initiating and launching the new business by
facing more bigger risk as because of the limited resources of the business man and also wit the
innovative idea. An associate is different from the business man and their skills, traits and
characteristic of the business person among the two entrepreneurs. It is mentioned below by the
utilisation of the example of both the entrepreneurs such as Philip Green and Mark Zuckerberg.
Characteristics:
 Motivator – For the motivation of the team entrepreneur is the great source of it as it is
encouraged by its nature only (Raimi, and Manishimwe, 2021). They are the brawny
owners that work hard and give more efforts in the creating of the successful organisation
which will give them reward of the material growth. Both the entrepreneurs Philip Green
and Mark Zuckerberg posses this feature in them that actually made them very much
successful in their professional as well as personal life as because they always motivate
themselves and also others. This aspect is not there in the associates as it only do the
completion of their task instead of motivating others to complete as well.
 Passion – The business man are growing themselves in their professional life because of
their passion towards their accomplishment of their goals and objectives which is offering
their products or services in accordance to the needs and wants in order to make the
difference (Sattoriy, 2021). It also assist entrepreneurs in sustaining at the crucial period
of the low morale or low motivation in accomplishment of their work. Both Mark

Zuckerberg and Philip Green who have the passion for establishing appropriately the firm
that basically makes them totally different from the manager as they work with the lack
of passion and just to earn.
Traits:
 Creativity – The business man is the creator and innovator which makes them possess
creativity skill that makes it different from the other associates. They think of innovative
as well as creative thought in order to make them establish the business entity and assist
in the enhancement of the economy. In case of Philip Green and Mark Zuckerberg are
capable in converting their innovative as well as creative thoughts in to the reality which
is the reason for their success and growth in professional life.
 Leadership Quality – It is very much true that leaders are born and are actually not
made in the proper same way, the business man are the main leaders that effectually
directs and guides the team in accordance to make their thought in to the growth and
success for their business (Sharma, 2021). Both Philip Green and Mark Zuckerberg both
have this trait that makes them better from the other associates as they know how to lead
a group effectively as well as efficiently that helps in attaining the long term goals.
Skills:
 Risk taking – The business people are the risk takers because they have the capabilities to
manage the risk and also the possess the appropriate mindset which never makes them
nervous to take the various risk linked to it and also they have the knowledge which
makes the risk that gives the outcome in amazing success. The associates do not possess
this skill because all they do is manage the work and delegate is to their subordinates
instead of thinking about taking risk and initiating by themselves.
 Creative thinking – It is the main support for the creation and innovation and it drives
the person to analyse and think in different way as because it is required by it. A person
having this skill does not feel shy to carry out resolutions which are brought for the
conflicts of the business.
How aspects of entrepreneurial personality can reflect entrepreneurial mindset and motivation.
The OCEAN framework have five elements of the attributes that assist in knowing the
individual and their behaviour. With the support of it, the entrepreneurial attributes that shows
the encouragement and the thinking of the business man which is mentioned below briefly:

 Openness – The insight and imagination are few of the aspects belong to this trait and it
the business person possess it then it has the dynamic attribute and broad range of the
interest (Sharma, and Kumar, 2021). They have the capabilities to analyse the globe and
are more curious to understand the several things as the also understand and learn the
new aspects of it.
 Conscientiousness – This trait is crucial for those business people who are focusing on
the attainment of their goals as well as objectives. The exceeding capabilities of the firm
and its attentiveness of the details is its essential feature as it is consistent thought and
how they operate on their behaviour which might impact others.
 Extraversion – When an individual shows its point of views in emotion and it like to
maintain the thoughts on to the others , it refers to the extrovert (Szabó, 2021). Such
individuals are talkative, very much interactive and social that provides them with energy
and courage in order to make their business entity more successful.
 Agreeableness – This kind of individual are trustable, kind, affectionate and they are also
filled with empathy. They are supportive, thoughtful and freehanded which can agree
with their interest in accordance to accomplish the respective objectives.
 Neuroticism – It is very much crucial trait of attribute in which a person have
affectionate instability, sulkiness and unhappiness as well. These type of people can
easily gets irritable and also feel rapid panic attacks, sadness and mood swings as well.
So in accordance to it the trait of a business person in accordance to overcome the stress
level in the complex times.
Analysis of how background and experiences can either hinder or foster entrepreneurship.
Personal background and work experiences plays an important role in deciding the
growth of an entrepreneur and can also serve as a obstacle in the course of entrepreneurship.
Individuals with less work and personal experiences are tend to produce less innovative ideas to
enhance their business dimensions (Tang, Baron, and 2021). Following are examples explained
in detail to help understand the analysis of journey of entrepreneurship:
Mark Zuckerberg
 He is the founder of Facebook and one of the most renowned entrepreneur.

 He was born and brought up in new york and was passionate about programming from a
young age. His early achievements encouraged his parents to admit him in Philips Exeter
academy, a prep school in new Hampshire.
 Mark attended Harvard university after that and developed two programmes in
sophomoric year which got shutdown after wide recognition.
 Zuckerberg associated with his friends and developed Facebook which gained million
users in 2004.
 Personal background support helped mark to follow his passion and interest and his
university experience helped him in early achievements and programming skills
development.
 After the invention and skyrocketing growth of Facebook, mark became one of the most
influential and richest person in the world.
 Like every successful person, mark also has faced some challenges and issues throughout
his journey. He was being accused for stealing the code for Facebook which was majorly
highlighted in 2010.
 He faced controversies and legislative proceedings regarding an inquiry conducted on
70000 unwilling Facebook users.
 Throughout his success journey, various experiences helped him to gain knowledge on
ideas to expand growth dimensions. He developed new rules and frame new strategies to
define the internet (Urban, 2021). He encouraged enforcement issues topic more than
any other and took effective steps on content regulation.
Philip green
 He is a British businessman renowned as chairman of the retail company, the Arcadia
group. He was the owner of retailers like top shop, topman and miss Selfridge.
 Philip green was born and brought up in England in a successful property developer and
retailer family.
 His father died when he was at the age of 12 and inherited him their family business. He
left boarding school 3 years after that.
 Philip started his entrepreneur journey from working in a shoe manufacturer shop and
purchased Arcadia group in 2002 with the support of his wife. This group owned major
brand like Evans and Dorothy per kings etc.

 Despite being one of the most successful retailer, he faced challenges of bankruptcy in
may 2019 along with shutdown of his various stores.
 Green faced many challenges and obstacles throughout his entrepreneurship journey and
faced controversies and accusations.
 With his strong business background and personal experiences, he gained worldwide
fame and still managed to be in the list of world billionaire list with an estimated net
worth of $2.4 billion.
CONCLUSION
From the above report it has been concluded that entrepreneurs are the major risk facer and they
operate to convert their ideas and thoughts in to the reality which makes it successful. People
give more efforts and work hard in order to gain more success and growth in the business
organisation. There are several kinds of entrepreneurial entities for like social, small and large
and they linked to the typology of the business. The small and medium enterprise affects the
economy as it gives various opportunities of employment to the individuals that ultimately assist
in bettering their living standards . Moreover to it, it is added that the business man has several
aspects, skills and traits that makes it different from the associates like motivator, creative ,
innovator and various others. In addition to it, the OCEAN framework is utilised to show the
attributes of the entrepreneur.

REFERENCES
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