Entrepreneurship and Small Business Management

This report covers various topics related to entrepreneurship and small business management, including types of entrepreneurial ventures, their impact on the economy, and the skills required for entrepreneurship. It also explores the differences and similarities between different entrepreneurial ventures and how aspects of entrepreneurial personality reflect mindset and motivation.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1 ........................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. typology of entrepreneurship. ....................................................1
P2 Explore the differences and similarities of different entrepreneurial ventures. ..................2
P3 Explain how small businesses impact the economy?...........................................................3
P4 Explain the importance of start-ups and small businesses to the growth of social economy.
.....................................................................................................................................................6
P5 Determine the skills an entrepreneur has in comparison to other business managers. .........7
P6 Assess how aspects of entrepreneurial personality reflect mindset and motivation. ............7
P7 Examine using relevant examples how background and experience can hinder or foster
entrepreneurship..........................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the ability to run a business enterprise along with any kind of
uncertainties to make profit. Basically it means starting of your own a new business. The
entrepreneurs are known as the source of new ideas and bringing them into market and
innovating the old ideas with new ones. This report includes the various topics such as types of
entrepreneurial ventures and how they are related to typology, explanation of difference and
similarities of different entrepreneurial ventures. Interpret and assess relevant data explaining
how small businesses impact the economy. Interpretation of relevant data explaining how small
businesses impact the economy, importance of start-ups and small business for the growth of
social economy, explanation of skills an entrepreneur has in comparison to other business
managers, how aspects of entrepreneurial personality reflect mindset and motivation and how
background and experience can hinder or foster entrepreneurship.
Activity 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. typology of entrepreneurship.
There are four types of entrepreneurial ventures explained below;
 Small business entrepreneurship- The small business represents the majority of Indian
entrepreneurial ventures. People who set up a small business to earn money for their
livelihood and support families. These business are running on the short term goals as
they lack with the new innovative ideas and less capital is another drawback for
functioning. For these kind of businesses usually the family members , friends are the
employees. Such business are the local hair dresser, grocery shops, milk booths,
plumbers, small boutiques etc.
 Large company entrepreneurship – The huge companies with the defined life cycle are
categorised in the large business entrepreneurship. These companies sustain because they
develop and innovate the new products in market these companies offer a different
variants of its core product. The adaptation of new technology and customer preferences
make these companies successful.
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 Social entrepreneurship- In this type of entrepreneurship the entrepreneurs identify any
kind of social problem and come with a solution to that to create a social value in the
society. These entrepreneurs develop solutions, services to solve critical issues and bring
change in the society. The best example of social entrepreneurship is thye non- profit
organisations.
These are related to typology in two ways such as
 growth – These are the companies which want to maximise profits and believing into
growing more and more for their survival . The small and social business lie in this
category because firstly small business create opportunities for employment which help
people to grow in their personal live4s . The social business also help in providing work
for the people whoa re retired or not have any kind of work . They bare supported by
such business for the growth and development of the society.
 Life-style – these are related to the large companies because when an individual join the
large company because of his/ her potential and knowledge it is able to maintain a good
and healthy lifestyle. The people perceptions change and they become more confident
and are willing to achieve more in their life. They want better for their livelihood by
working in such companies that they more to the people.
P2 Explore the differences and similarities of different entrepreneurial ventures.
The difference between the different entrepreneurship ventures is as follows
Basis Small business
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Meaning These are the
businesses started with
a short term goal. For
example grocery
shops, milk booth,
small boutiques .
These are the large
companies starts with
long term goal by
innovating the old
ideas with new . For
example amazon .
These are the non
profit organisations to
help the society in any
kind of problem and
take care of the well
being .
Capital required Not much amount
required to start such
business
A huge capital is
required to set up a
company .
No capital required as
it is create for the
social welfare.
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Profitability These business create
value to earn some
kind of profit for their
livelihood.
These companies
create value to earn a
huge profit from the
business for better
lifestyle.
They are nor in the
business for profit
The similarities between the types of businesses.
The similarities between the ventures is that all the three types of entrepreneurship has a
purpose to create value. Every business motive is to create value and bring change in the world.
Another similarity is that the have a common element of having innovation except for the small
business. The entrepreneurs aim to bring a change in the world with their ideas and innovations
which can benefit the society and also can improve the lifestyle .They have this thing common in
all businesses.
P3 Explain how small businesses impact the economy?
Types of business – There are four types of business explained below :
Types of business
Micro These are the businesses which are very small in nature and employs very few
people it is started with a very less amount of capital. They provide goods and
services in their local areas. These businesses are financed by a small loan
available to people who have no collateral security , savings or employment
history.
Small The concept of small business is self employment, entrepreneurship and start-
ups created to create some value.
Medium A medium sized business is defined by the companies act 2006 as a business
with up to 250 employees these businesses may be family owned or managed
businesses. They are normally well established. In such business the finance is
collected or managed by in-house professionals who looks for the required
capital with the terms and conditions in the business.
Large The large sized businesses has at least 5000 employees in its organisation and
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has a annual turnover grater than 1.5 billion euros This category of business is
defined by implementation degree no. 2008-1354 or article 51of the law of
modernisation of the economy .
Factors that impact economy
 Export – The small and medium sized businesses plays the important role in united
kingdom economy , influencing the level of economic growth and the balance of
payments exports have become a bigger share of national income because of lower
transportation cost, globalisation, economies of scale and tariff barriers.
Illustration 1
 Employment opportunities- the small businesses create a group of skilled and semi-
skilled workers tp support future industrial and business expansion the country. Currently
these businesses employs around 16.3 million people , contributing to the 60 percent of
the jobs in United Kingdom. They support the local economies by bringing growth and
innovation to the areas outside of the main cities which facilitates the equal distribution
of income and wealth in the economy.
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 High turnover – The small businesses can adapt the changes more quickly because they
are more customer oriented and also understands the needs of the local community .
According to the data it is said that these businesses is a key to increase the country
productivity.
The impact on economy of the small businesses
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Regional Small businesses promotes self employment among the educated and
professional people. It also provide employment to the farmers who have no
work during the year.
National the small businesses will generate high level of revenue , which means that the
taxes they will pay will be high. Then this money is used by the government
for the local communities and for their safety measures.
Local The small businesses provide opportunities for small formers and other people
who are idle at rest of the time. So this impact the economy so that standard
living improves of the local people in the society .
P4 Explain the importance of start-ups and small businesses to the growth of social economy.
The importance of the small businesses and start-ups to the growth of social economy
are as follows :
 People getting the products and services quickly- The local shops , markets and
service providers are the very first option for the people to have the benefit of the needs
and wants for people.
 Employment opportunities for skilled and unskilled- The small businesses create
opportunities for the people around the society . The workers at shops , factories,
companies are the most important assets for such businesses. These businesses help the
government in reducing the unemployment.
 Perfect competition in the market- the start-ups companies are the most dynamic
economic organisations because they provide competitiveness in the economic system.
 Innovations- The small businesses are the main driving force behind economic
development and the increase of productiveness in a knowledge based society. The start-
up companies implement innovations in the ideas and contributes in having a quick
change in the economy by adopting new technologies.
 Bringing the value of proactivity into the society- The small businesses and the start-
ups changes the value of the society and helps in bringing a new mind set based on
knowledge and creativeness. As it is seen that the population is increasing and people
have also realised that everyone has a responsibility for their work and career
development.
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P5 Determine the skills an entrepreneur has in comparison to other business managers.
The skills an entrepreneur should have in comparison to the other business managers are
as follows:
 Opportunity recognition- The successfulness of any start-up starts with the great idea .
The entrepreneur should be able top recognize the opportunity on the right time and that
are unique and gives a competitive advantage . A good opportunity comes with the good
market research done whereas the managers guides the ongoing operations to deliver the
products or services in the organisation. For example, Bill gates is a passionate in him
about learning things which made changed his perceptions and tried to find out some new
thing that can be brought into the world.
 Creative - entrepreneurship starts with an creative idea to become successful in the
society . This skill should be there for becoming an entrepreneur and they have to think
out of the box . Their thinking should be creative and bring some positive change in the
society whereas the manage need not this skill. For example, Jeff bezos made their
personality different with creativeness and their business affected in such a way that it
made the lives of common people easier.
 Passionate- This is the most important skill required for the entrepreneurs that they need
to be passionate about their work without this no start-up can be taken further .
Entrepreneurs love what they do so they are very much passionate about their business
and develop it day by day . This required to be confident in yourself and your business
and they must be proactive in what they do whereas the managers of an organisation have
a different task to perform they need not to be passionate they just need to be focus in
their work. For example, Jeff Bezos and Bill Gates both were passionate which change
their mindset and the level of their thinking was different .
 Decisive- Entrepreneurs should have the ability to make decisions quickly and effectively
because their they know their goals and what need to be done is so clear that they do not
hesitate in making any kind if decision whereas the managers cannot take every decision
quickly . He/ she has to consult to the other department also and have to make sure about
the change with the higher authorities in the organisation. For example, Bill gates is very
confident and adventurous about their business and gad believe in themselves in the
tough times also which keep them motivated in becoming a successful entrepreneurs.
P6 Assess how aspects of entrepreneurial personality reflect mindset and motivation.
The entrepreneurial personality reflects mindset and motivation of the other people
because entrepreneur come up with new ideas and the change in the society which make the
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people that yes this can also be done or adopt in their lifestyle . Here it is explained through a
model called ocean model :
This model comprises of five factors of the personality trails which are explained below :
 Openness to experience- This has been described as a depth and complexity of an
individual's mental life and experiences it concerns with the personality of an
entrepreneur that what is how they think outside the box and willingness to do something
new . A entrepreneur is high in openness to experience means that he/ she love to learn
and enjoys the arts and is creative in nature . This kind of personality helped Bill Gates to
be a successful entrepreneur.
 Conscientiousness- This trait can be described as tendency to control the impulses and
the act in socially acceptable ways. Bill gates was high in conscientiousness and his
mindset was totally changed at the time of school and had leadership qualities . Also he
has a personality of making his career goals so strong and determined which kept him
motivating through out his journey of become an entrepreneur.
 Extroversion- This kind of personality is seen in entrepreneurs which means the people
who are comfortable in interacting with other people , they are socially active and also
enjoys the parts, socialising with the other very easily. Jeff Bezos and Bill Gates both
were extrovert which change their mindset and the level of their thinking was different .
They were able to grab the opportunity of the people by knowing how the idea can bring
the change and which made them a successful entrepreneurs .
 Agreeableness – This kind of personality in a person means the person is well liked ,
respected and sensitive to the needs of the others . This aspect in the Bill Gates and Jeff
bezos made their personality different and their business affected in such a way that it
made the lives of common people easier.
 Neuroticism – This trait is related to the confidence and strong emotional stability and
general temper of an individual. This personality was very low in Bill Gates an Jeff
Bezos helped them in their career. They were very confident and adventurous about their
business and gad believe in themselves in the tough times also which keep them
motivated in becoming a successful entrepreneurs.
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P7 Examine using relevant examples how background and experience can hinder or foster
entrepreneurship.
Here is the background and experience of both the entrepreneurs explained that how it
foster entrepreneurship :
BILL GATES
Background – bill gates was born in seattle, washington on october 28,1955. his family
was living in the sand point area of seattle but that was damaged by a rare tornado when bill
gates was 7 years old . His parents wanted him to pursue his carer in law. He was bullied at the
time of his school by the other children . His interest and hobbies were totally different . Once
his family member told him there is always a reward for winning whether it is swimming , pickle
ball or any other activity. He wrote his first software programme in eight grade . He was
interested in the software programming and computer knowledge . He always wanted to earn
money for his family . There was a passion in him about learning things which made changed his
perceptions and tried to find out some new thing that can be brought into the world. He was
interested din computer s and join the classes to learn things and which made hum to bring a
new software.
Experiences-Bill Gates at the age of 14 converted an Intel processor into a traffic
counter with one his school friend and earned $20,000 each for themselves. After this one of his
friend talked about dropping out of Harvard and travelling to new Mexico to develop an
interpreter of the basic programming language . Bill Gates was interested in motivation of
entrepreneur from which he categorise drives drives a desire for social status, the joy of
creativity and win and beat rivals. This could stop him of introducing a software company
Micro-soft . At initial they were in losses due to financial crisis because of pirated siftweare but
gradually he did not loose have because of his confident he launched MS-BASIC , which helped
them to make profit and made into the one of the biggest entrepreneur.
JEFF BEZOS
Background-Jeff Bezos was born on 12 January , 1964 in New Mexico . He completed
his graduation from Princeton university in 1986with a degree in computer science and electrical
engineering .he was very much interested din doing new things from childhood itself. He turned
his parents garage into a laboratory and rigging electrical contraptions around his house as a
child only. He moved to the another city Miami with his parents and there he developed interest
in computers and started his first business “ the dream institute “ which was an educations
summer camp for fourth , fifth, sixth grades students .
Experiences-Jeff Bezos was a different personality which made him today an
entrepreneur and that to with introducing the biggest e-commerce platform AMAZON. He said
without risk no one can be successful . He just has a philosophy of trying new things whichever
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comes it mind . Some will failures will be leading you to success. He started amazon in 1995 wt
h just 10 employees. He since turned its company to the most valuable public company in the
world with $860 billion market capitalization
CONCLUSION
From the above discussion it is clear that being an entrepreneur is not easy . It requires a
lot of critical thinking and a creative mind to introduce new ideas in the market . It was explained
in the report the types of businesses . There are four types of business micro, small , medium,
large . Every business was important and has equally impacted the society and their mindsets.
Then further it is explained that how these bushiness is differentiated and has some similarities
between them. Then further the report covered the topic of how these small business impact the
economy . By the discussion it can be said that it impacts the export of the economy, business
opportunities for the people, and high turnover in the economy . Also it is explained what is the
impact of these businesses at regional, national and local level .Then the discussion was on the
importance of the small business in the growth of the economy . Further it was explained that
what skill is required to be an entrepreneur and how they differ from the managerial skills . It is
concluded that an entrepreneur is a risk taker and have a creative mind to have a change in the
society. Then further a ocean model is explained that how personality reflects the
entrepreneurship. Lastly it covered the background and experiences of the Bill Gates and Jeff
Bezos made them successful entrepreneurs.
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REFERENCES
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entrepreneurship. Small Business Economics. 48(3). pp.577-597.
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review of a nascent field. Entrepreneurship & Regional Development. 32(3-4). pp.281-
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Hemme, F., and et.al., 2017. Extending sport-based entrepreneurship theory through
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Lans, T., Seuneke, P. and Klerkx, L., 2020. Agricultural entrepreneurship. Encyclopedia of
creativity, invention, innovation and entrepreneurship, pp.43-49.
Larios-Hernández, G.J., 2017. Blockchain entrepreneurship opportunity in the practices of the
unbanked. Business Horizons. 60(6). pp.865-874.
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institutional perspective. Routledge.
Nyadu-Addo, R. and Mensah, M.S.B., 2018. Entrepreneurship education in Ghana–the case of
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Oppong, G.Y.S., Singh, S. and Kujur, F., 2020. Potential of digital technologies in academic
entrepreneurship–a study. International Journal of Entrepreneurial Behavior &
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Power, S., Di Domenico, M. and Miller, G., 2017. The nature of ethical entrepreneurship in
tourism. Annals of Tourism Research, 65, pp.36-48.
Provasnek, A.K., and et.al 2017. Sustainable corporate entrepreneurship: Performance and
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Schaltegger, S., Beckmann, M. and Hockerts, K., 2018. Collaborative entrepreneurship for
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goals. International Journal of Entrepreneurial Venturing. 10(2). pp.131-152.
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(Larios-Hernández, 2017)(Lans, Seuneke and Klerkx, 2020)(.Churchill, 2017)(Claire, Lefebvre
and Ronteau, 2020.)(Sauka and Chepurenko, eds., 2017Hemme and et.al., 2017)
(Marlow, Swail and Williams 2017)(Ahsan, 2020.)(Nyadu-Addo and Mensah, 2018.)
(Schaltegger, Beckmann and Hockerts, 2018)(Power, Di Domenico and Miller, 2017)
(Provasnek and et.al 2017)(Saptono, 2018)(Bozhikin, Macke. and da Costa, 2019)
(Oppong, Singh and Kujur, 2020)
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