Entrepreneurship and Small Business Management: Types of Ventures, Impact on Economy, and Entrepreneurial Skills

This report covers topics such as different types of entrepreneurial ventures, their impact on the economy, and the skills required to be a successful entrepreneur. It discusses the OCEAN model for entrepreneurial personality traits and how they reflect mindset and motivation. It also covers the impact of small businesses on the economy, including employment opportunities and export opportunities. Additionally, it compares the skills of entrepreneurs to those of managers.

Entrepreneurship and
small businesses

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.) Different type of entrepreneurial venture and how they relate with the typology of
entrepreneurship..........................................................................................................................3
2.) Differences and similarities of different entrepreneurial ventures........................................4
3.) Interpret and access relevant data for defining how small business impact the economy.....5
4.) Importance of startups and small businesses to the growth of social economy...................8
PART B............................................................................................................................................9
5.) Determine the skills of an entrepreneur has in comparison to other business manager........9
6.) How aspects of entrepreneurial personality reflect mindset and motivation.......................10
7.) Examine using relevant example how background and experience can hinder or foster
entrepreneurship........................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneur is a person who runs a business through limited planning and resource.And
all the risks and rewards of the business can be manage by them. It tend to classified on those
who take on high risk of innovation and established the organision with the help of customer
based product wheras small business refers to owned private corporation of small scale level
function with less capital investment. They usually concerned with known products and services
because owner of small venture tend to deal with their own risk. Inshort every large firm start
with a small business and led by the entrepreneur. For this report two entrepreneurs are choosen
which is renowned in their own workplace. Elon Musk (most famous entrepreneur and the CEO
of Tesla Motors) and Mark Zuckerberg( an american entrepreneur and the co-founder of
Facebook)
MAIN BODY
1.) Different type of entrepreneurial venture and how they relate with the typology of
entrepreneurship.
Entrepreneurship is a mindset for seeing the opprtunities and collecting the resource to
convert the probability into reality. This ability to see many options in every situations and
represents the freedom of launch something new and to make it happen. It includes threats but
also seeing the opportunities.
Types of Entrepreneurial Ventures
 Serial: It is a entrepreneurship where a businessman brings up with new ideas to
established a business on the basis of them. They usually take initiatives to convert a
opprtunities into several new ventures. Elon Musk is a successful serial entrepreneur
because he made and sold many venture like founded Zip2, PayPal,. While Musk is best
known for Tesla his next working Venture is SpaceX.
 Social: It refers to recognize and pursuing social opportunites to create a product value.
One of the finest example of social entrepreneurship is microfinance institutions, these
generally gives banking services to unemployed or low income people. They are the
innovators who mainly focus on comes up with new product and services and solve social
needs and problems. Mark Zuckerberg are comes under with this category because he
builds the vastly successful social media business.

 Scalable: It refers to a start-up venture that aims to become a tremendously high growth
and profitable company. These entrepreneur start a company knowing from day one that
their vision could change the world. They attract investment from venture capitalists and
hire the brightest. Some of the perfect example of scalable start-ups are Twitter,
Facebook, Goggle, Skype.
They can relate with typologies of entrepreneurship in terms of developing an alternate
prospectives of industrialism. Two of them are discussed below:
 Lifestyle: These firms are highly depend on founder and its skills, contacts, personality.
This basic aim is to increase the level of income and gives opportunity to pursue the
lifestyle.
 Growth oriented: This business tends to generate positive cash flows of the company and
track the growth record . Their growth totally depend on financial metrics.
 Scalable entrepreneurship are comes up in this category because they highly focus on
high growth and profit of the company.
 Imitator Entrepreneurship – It is a sort of organisation that only copy the approaches
and program of another effective entrepreneur. They also copied their website and
managerial authentications to looks like them.
 Social entrepreneurship are fit in this type of firms because it focus on every type of
income group that will helpful in create the product value.
2.) Differences and similarities of different entrepreneurial ventures.
Huge difference may find out in terms of various entrepreneurial ventures and similarities
for exploring easily. Major comparison among serial entrepreneurship and social
entrepreneurship.
Basis Serial Entrepreneurship Social Entrepreneurship
Meaning It refers to a person who
regularly take initiative for
starting new business and
convert opportunity into
various new businesses.
It is the venture of starting
new business and recognise the
process of pursuing
opportunities for generating
new values.
Features  They are facing high  Businessman are zeal

risk while startup of
several ventures.
 Serial entrepreneurs are
multi tasker as they
handle multiple
operations and projects.
locked at the time of
intial stage of short
term project and long
term initiatives.
 They are highly
committed towards to
improve the welfare of
the society.
Risk It face huge financial risk
while starting various
ventures.
It suffers from financial,
operations and culture risks.
Growth It has more effective than
novices with more productive
and higher sales.
It gained popularity with
progressive technology and
focus on revenue and profit.
Profit Motive These entrepreneurs are
motivated by their purpose i.e.
come up with new ideas for
generating profit.
They focus on social
satisfaction while maximizing
gains rather than maximize
profit gains.
Goal Its main purpose to bring new
ideas and run the business on
the basis of them.
Main aim of social
entrepreneur is not to earn high
profit. It want to implement the
society improvements.
3.) Interpret and access relevant data for defining how small business impact the economy
For defining the impact, firstly analysing different categories of business which are as
follows:
Types Of Business
 Micro Business: It is a small type of business that can be manage at a very small scale
and this can be measure on the basis of employee's strength within the business,total
worth and how much money was required to run the business.

 Small Business: It refers to a business that can be operate privately alongwith small
strength of the employees, less sales volume. It is not a part of large business but have
some influence in its market.
 Medium Business:These types of business are normally well established, in small
company 50 or fewer employees are work together and in case of mid size there is
between 50 and 250 people work at the same place.
 Large Business: It refers to that business where limits of employees and business
turnover can exceeds and venture are comeup with more probabilities related to finance.
Impact on small business on economy
 Employment opportunities: It contributes economic growth, a owner of small business
of UK can affect their local economy by hiring employees for getting the consumer
reaction of the company. Increased employee earning leads to a higher rate of consumer
spending which createw benefits in other business who depend on consumer sales to stay
open. In small business hiring an employee can achieve the effect on small scale and
increase the money circulating in the marketplace.Employement is the key pillar of the
development as income generated then the result converted into boost the economy and
employment.

 Export opportunites: It refers to a product that are making in one country and sold in
another country. This opportunity does not benefit only the company and there
employees it also benefit the local as well as foreign market. It creates closer links
between companies across the world which help in maintaing business relations. This
further help in boosting the economy of country. It also assist in attaining foreign
currency which strenghthens the forex reserves of the nation.
 High Turnover Rates: It can be both bad as well as good thing as it comes up in sales
value then turnover rates goes on roof and in case of employees, the turnover rates may
avoid. If the sales of company is increasing then they depicts the circulation of money in
country is also increasing alongwith profit taxation because people are spending money
rather than holding it thus, it helps in boosting the economy.

Impact Of Factors On Economy
 National: The small business in national economy can contribute the GDP so that this
will helpful in increasing the employment income. Gross Domestic Product uses market
price to value goods and services then this will excludes almost all the activity that take
place outside the market.
 Regional : It supports local community and facilitates exports for economic growth at
regional level in terms of increasing output, employment and overall living standards for
those based within the region.
 Local: It is helpful in providing employment opportunities that changes the entire living
standard of the people and create meaningful jobs with greater jobs satisfaction . Thus,
they foaster local economies by keeping money close to home and supporting
neighbourhood and community.
4.) Importance of startups and small businesses to the growth of social economy.
Both are importyant for growth the reason behind this is that they creates new job swhich
can converted into lesser unemployment rates.
 Absorbs to Changing Climates: Small business are very customer oriented and
understands the needs of community and several social customers contantly loyal with

the business. This loyalty defines that the small enterprise are often able to stay float
during tough times that can streghthens local economies.
 Collecting local government and taxes: A local business will generate high levels
revenuewhich means the business will pay higher taxes. This can improve property
values throughout a community and also improving every homeowner's bottom linwe
while generating more property taxes for local governments. This generates a result in
growth of social economy in small business and startups.
PART B
5.) Determine the skills of an entrepreneur has in comparison to other business manager.
Skills refers to the psychosocial capabilities for positive behaviour by which individual
deals effectively with regular challenges and demand of life. Some of the key skills to become a
successful entrepreneur are as follows:
 Creative: It denotes the thinking of new ideas. To become a successful entrepreneur every
businessman wants to create new ideas and try to find a better path to doing things. Mark
Zuckerberg always fing new ideas in order to build a difference. He always taking a
mindful approach i.e. use of innovation, creativity, action to doing something different
for business success.While manager maintain the the business operations , they are risk
averse of the organisation.
 Passionate: It is very important tool for achieving success, If there is no passion then
there is no reason for fulfilling the task. Elon Musk is a very passionate and a very
innovative person and he never takes no also extremely passionate about their work
ethics. While manager is an employee for business, he works for salary but entrepreneur
work for business success.
 Future oriented: Proprietor are goal oriented they know exactly what they want. They
have a strong vision towards for achieve something. Elon Musk and Mark Zuckerberg
both are future focused person and work for their business success and in case of
manager try to collect available resources for the business.
Classification Entrepreneur Manager
Meaning It refers to that person who are It refers to the individual who

establish a business, by taking
financial risk in order to
achieving growth.
administering and controlling
all the activities of the
organisation.
Key Motivation The primary motivation of
entrepreneur is to getting
achievements
The motivation of manager is
come from the power from
their position.
Focus They always thinking about
for starting and expanding the
business by creating new
ideas.
They focus towards the
ongoing business procedure of
the business.
Task Approach Their work are informal in
nature which is totally work on
achieving the success.
Their task are formal in nature,
they work as an employee just
the sake of getting money.
Risk Orientation They bear all the financial risk
so that they are the risk takers.
They work only for the salary
and not bear any risk so they
are risk adverse for the
venture.
6.) How aspects of entrepreneurial personality reflect mindset and motivation
It refers to the individual who are very extrovert, observant, optimistic in nature. These
types of person are action oriented. For defining entrepreneurial personality that reflect mindset
and motivation, following model is being applied:
Ocean Model
 Openness: It determines those people who are willing to try new things. Imagination are
the major feature of this trait . People are more curious about to explore the world. For
instance: Both the chosen entrepreneurs always find new ideas. This will help to motivate
them for finding the opporunity to innovate as this shows their curious mindset which
always tries to learn something new.
 Conscientiousness: This refers to goal oriented person who have extreme level thoughts
and tendency to control impulses. They are plan for future and have mindful for

deadlines.both entrpreneur have this personality trait by which they earn high income and
satisfaction too and this will help in boosting the reputation of the business.
 Extroversion: It concerns those individuals who are highly energetic and more interactive
with others. In general. These people have sociability, talkativeness and high emotionally
expressive.Mark Zuckerberg and Elon Musk is a introvert person but for being reserved
nature reflect his mindset and motivation because he is more comfortable focusing on
their inner thoughts and ideas rather than become friendly. This is the reason for his
success.
 Agreeableness: This traits includes one's orientation to others. In this category people are
trustworthy, kindness, affective and more cooperative in nature. Higly aggreable people
are well -liked and sensitive to the needs of others while low end people are blunt , rude,
short-tempered and sarcastic in behaviour. Elon Musk has low score in agreebleness that
reflects its personality and by this, he became a competitive and challenging person and
this will enhance his motivation.
 Neuroticism: It defines the factor to meanness or incompetence. If this trait is high they
are convert into sadness and emotional instabilty but if individual scores low than they
are likely to feel adventorous and emotionally resilient. In this trait both entrrpreneur are
comes under low scores because they are highly innovative and confident person.
7.) Examine using relevant example how background and experience can hinder or foster
entrepreneurship Elon Musk was born on June 28, 1971, in Pretoria, South Africa. He was so lost in his
daydreams about inventions. His mother name was Maye Musk who was a canadian
model and oldest woman star to Covergirl campaign and father Errol Musk was a wealthy
south african engineer.When he was 10 his parents got divorced. Musk build their interest
in computer and when he was 12 he sold his first software i.e.,a game he created called
blaster. He is very introvert and bookish person. In 1995,Musk was launched its first
company(Zip2 Corporation). In 1999, he used the money from the sale of Zip2 and found
X.com which is knowns as paypal then in 2019 he was launched SpaceX i.e., the first
batch of 60 satellite now he become the co founder and CEO of Tesla motors. In
experience foastered his life and this will turned into an excellent growth and success.

 Mark Zuckerberg was born on May 14, 1984, in New York. He was raised in a well -
educated family, her father name is Edward Zuckerberg who ran a dental practice
attached to the family home and his mother,Karen worked as a psychiatrist before the
birth of his siblings.When he was about 12, he shows his interest in computers and create
Atari BASIC to create messaging program whose formed as the name of “Zucknet”.In
high school he was created a early version of music software Pandora, which is called as
Synapse.Many companies like microsoft and AOL expressed their interest in buying the
software and want to hire him before the graduatio. And he become a sucessful
entrepreneur when Facebook was created by him. Afterwards he never stop in their life,
always think innovative for generating something.Mark Zuckerberg is an inspiring model
for youth.
CONCLUSION
From the above essay it can conclude that small business transform the communities and
businessman create way to connect resources and growth across cultures that differ from region
to another. In order to success in implementing effective business plan then innovation is the
most important part of entrepreneurship . The personality and character traits have an effect on
the running of the business operations . Entrpreneur needs to focus on financial innovation that
will able to meet the infrastructural and customer requirement. The ocean model helps in
defining the people personality that refect mindset and motivation. Entrepreneurship is to
establish their brand name and want to become a market leader for their business growth.

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